GMS 401 Chapter Notes - Chapter 2: Man-Hour, Computer Virus, Customer Service
16 Oct 2011
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Productivity: a measure of efficient use of resources, usually expressed as the ratio of output to input. High productivity is linked to higher standards of living. As an economy replaces manufacturing jobs with lower productivity service jobs, it is more difficult to maintain high standards of living. Higher productivity relative to the competition leads to competitive advantage in the marketplace. For an industry, high relative productivity makes it less likely it will be supplanted by foreign industry. Productivity growth is a key factor in a country"s standard of living. Wage and price increases not accompanied by productivity increases tend to create inflationary pressure on. Labour productivity is still the main measure used to gauge the performance of individuals and plants. economy. Because of the large amount of trade with us, it is very important not to lose ground on productivity.
