7.1 Business Strategies to Improve Labour Productivity

Question 1

How can a business improve labour productivity by providing in-work training to its workers?

Answer 1

A business can offer in-work training to provide job-specific skills to workers, which can increase their productivity, resulting in higher output per worker per hour.

Question 2

What are some ways a business can keep its workers motivated to improve labour productivity?

Answer 2

A business can keep workers motivated by providing job perks, work trips, regular constructive worker appraisals that focus on career progression, and other incentives. Motivated workers are likely to work harder and more efficiently, producing more in an hour and improving labour productivity.

Question 3

How can a business increase the productivity of its workers by providing them with specialist capital?

Answer 3

Workers who are very good at specific tasks can be given specialist capital (machines) that is cost-effective. As a result, the productivity of workers can increase with more output produced in an hour, translating into greater production and higher quality products.

Question 4

How can using better quality raw materials in the production process improve labour productivity?

Answer 4

Using better quality raw materials in the production process can reduce the time spent inspecting and rejecting defunct products that do not meet minimum quality requirements. This allows labour time to be spent productively in areas of value for a business, increasing labour output per hour.