Textbook Notes (367,974)
Canada (161,538)
MGTA01H3 (583)
Chapter 2

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Management (MGT)
Chris Bovaird

Productivity a measure of efficiency that compares how much is produced with the resources used to produce it the more we are able to produce which using fewer resources the more productivity grows and everyonethe economy businesses and workersproductivity considers both the amounts and the quality of what is producedQuality a products fitness for use in terms of offering the features that consumers wantMost countries use labour productivity to measure their level or productivitylabor productivity of a country GDP total number of workersProductivityoutputinputoA decline in productivity shrinks a nations total wealth When that happens an increase in one persons wealth comes only at the expense of others with whom heshe shares an economic system For example additional wealth from higher productivity can be shared among workers as higher wages investors as higher profits and customers as stable prices When productivity drops however wages can be increased only by reducing profits penalizing investors or by increasing prices penalizing customersoManufacturing productivity is higher than service productivity For many years it was widely believed that the service sector suffered from Baumols disease named after economist William Baumol who argued that since the service sector focussed more on handson activity that machines
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