Textbook Notes (359,268)
Canada (156,147)
MGTA02H3 (355)
Chapter 2

Chapter 2 Textbook notes

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University of Toronto Scarborough
Management (MGT)
Chris Bovaird

MGTA04 01 Chapter 2: Increasing Productivity and Quality - Companies are not only measuring productivity but also quality because it will satisfy customers, improve sales, and boost profits The Productivity Quality Connection - Productivity is a measure of efficiency that compares how much is produced with the resources used to produce it - By producing more of the right things while using fewer resources, this will lead to a growth of productivity which will benefit the economy, business, and workers - Quality L8,574:.981L93088147:80L3907284141107L3J9K010,9:7089K,9.438:2078Z,39JL;L3J 14ON8ZK,99K0Z,39 0[50.9 Responding to the Productivity Challenge - A country that is more productive than another will accumulate more wealth - A country whose productivity fails to increase as rapidly as competitor nations will see its standard of living fall - Four factors interact in the process of quality-improvement practices: customers, quality, productivity, and profits Measuring Productivity - Most countries use labour productivity (partial productivity ration calculated by dividing gross domestic product by total number of workers) to measure their level of productivity - The focus on labour as an output rather than resources used (e.g. capital) is preferred because most countries keep accurate records on employment and hours worked - Firms that compete internationally have more incentive to be more productive (labour in 0;0O45L3J,39KL7Z47O.4:397L08,70.K0,5079K,3,3,,8O,-4:7 Productivity Among Global Competitors - Productivity may vary from nation to nation (highest Belgium; lowest New Zealand) - Some factors may include: technologies, human skills, economic policies, natural resources and even in tradition - Michael Porter, a Harvard University expert on international competitiveness is concern for Canada because we live off our rich diet of natural resources. Porter criticizes Canadian business, government, and labour for failing to start emphasizing on new innovation and productivity Domestic Productivity - A country improves its ability to make something out of its existing resources can increase the Z0,O9K41,OOL98L3K,-L9,398 0.70,80L3574:.9L;L9ZLOO8K7L3N,3,9L438949,OZ0,O9K - When productivity declines, one pe78438Z0,O9K.4208,99K00[503804149K078ZL9KZK42K047 she shares an economic system (e.g. higher wages = less profit for firm) Manufacturing Versus Service Productivity - Manufacturing productivity is higher than service productivity because for many years, it was -0OL0;09K,99K0807;L.080.9478:110701742,:24O8L80,803,20,19079K00.4342L89 William Baumol who argued that since the service industry focussed more on hands-on activity 9K,92,.KL308.4:O39705O,.0L9Z4:O-02470L11L.:lt to increase productivity in services - Baumol noted that it would always require four musicians to play a Mozart quartet but an Opera .425,3L3744NO3L8.K,OO03JL3J,:24O8-,8L.,88:259L43-43OKL7L3J2:8L.L,38,3 www.notesolution.com
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