Textbook Notes (363,120)
Canada (158,212)
MGTA02H3 (361)
Chapter 2

Chapter two

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University of Toronto Scarborough
Management (MGT)
Chris Bovaird

Chapter 2: Increasing Productivity and Quality The ProductivityQuality Connection Productivity is a measure of economic performance o Measures how much is produced related to the resources we use to produce it o The more we are able to produce the right things by using the fewest resources the more productivity grows and the economy, the business and the workers benefit o Considers both the amounts and the quality what will be produced Using more resources more efficiently,, the quantity of output will be greater. BUT, unless the resulting goods and services are of satisfactory quality, consumers will not want them Quality A products fitness for use in terms of offering the features that consumers want Responding to the Productivity Challenge When one country is more productive than another, it will incur more wealth Companies must design their marketing efforts to cultivate a more customer-oriented focus A quality-improvement practices are implemented more and more firms will receive payoffs from these efforts For factors interact in this process: Customers, Quality, Productivity and Profit Measuring Productivity: Labour productivity Partial productivity ration calculated by dividing gross domestic product by total number of workers Ie. Labour productivity of a country = (gross domestic product) (total number of workers) o Equation reflects the general idea of productivity o It compares a countrys total annual output of goods and services with resources used to produce that output o The focus on labour rather than resources such as capital or energy is preferredmost countries keep accurate records of employment and hours worked o Note: firms that compete internationally have more incentive to be more productive Productivity among Global Competitors o Why are there such differences in productivity levels between the different countries? www.notesolution.com
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