Effectiveness, efficiency productivity Flashcards
What is efficiency?
producing output at the highest ratio of output to input.
What is effectiveness?
Meeting the objectives of the enterprise by using inputs productively to meet customers needs
What is productivity?
the ratio of outputs to inputs during
production, e.g. output per worker per time period.
How do you calculate labour productivity?
total output in a given time period/total workers employed
How do you calculate capital productivity?
output/ capital employed
What is level of production?
the number of units produced
during a time period.
How could you increase productivity levels?
Improve staff training
Improve worker motivation
Purchase more technologically advanced equipment
More efficient management
Cons of increasing productivity?
Can cause wage increase demands
