Increasing efficiency and productivity Flashcards
1
Q
What does improving efficiency mean?
A
getting more output from a given level of input
2
Q
Benefits of improved efficiency
A
-Labour productivity increases
-Unit cost falls
-profit margins increase
improved flexibility across a business
3
Q
Ways to increase efficiency and labour productivity
A
Better management - improve supervision and direction of the workforce
Training - invest in training to improve skills
Reward schemes - Give workers more incentives to work harder
4
Q
Why may it be difficult to increase efficiency?
A
- Workers working at full capacity may cause them to be stressed and burnout
- Focus on output can compromise quality
