MGTA02H3 : study guide
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MGTA02H3 Full Course Notes
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Productivity: a measure of the efficiency that compares that how much is produced with the resources used to produce it. Productivity considers both the amounts and the quality of what is produced. By using resources more efficiently, the quantity of output will be greater. Quality: a product"s fitness for use in terms of offering the features that consumers want. A nation whose productivity fails to increase as rapidly as that of competitor nations will see its standard of living falling. Quality is defined in terms of value to the customer, therefore companies must design their marketing efforts to cultivate a more customer-oriented focus. Four factors interact in this process: customers, quality, productivity, and profits. Labour productivity: partial productivity ratio calculated by dividing gross domestic product by total number of workers. The focus on labour rather than on other resources (such as capital) is preferred since most countries keep accurate records on employment and hours worked.
