3.4.3 increasing efficiency and productivity

Question 1

methods of improving labour productivity:

Answer 1

training
better management
new ways of working
new reward systems
new technology

Question 2

difficulties of increasing efficiency and labour productivity:

Answer 2

employee resistance
employees may demand higher pay
new tech may lead to redundancies - damage employee motivation
training may be expensive

Question 3

what is lean production?

Answer 3

managers reduce waste and therefore operations become more efficient

Question 4

what is Just In Time production and what are the risks?

Answer 4

limiting the amount of stock that is held at every stage of the production process.

risky if the supply chain is long/complex

Question 5

what is a capital intensive business?

Answer 5

a large amount of investment is required to produce a good or service
e.g car manufacturing/transport/energy

Question 6

benefits of a capital intensive business?

Answer 6

reduction in human error
greater speed and uniformity
ease of workforce planning

Question 7

drawbacks of a capital intensive business?

Answer 7

prone to fluctuation in interest rates
lack of initiative
less flexibility in responding to a fall in demand

Question 8

what is a labour intensive business?

Answer 8

a large amount of employees are required to produce a good or service

Question 9

benefits of a labour intensive business:

Answer 9

creates employment in the economy
staff may be multi-skilled
more personal response to consumer needs

Question 10

drawbacks of a labour intensive business:

Answer 10

can be prone to labour relations problems
possible workforce shortages
high labour costs
greater variation in quality