labour productivity Flashcards
What is labour productivity
A measure of operational performance that assesses the average output of each workers
What is the formula of labour productivity
Output ÷ number of workers
When does labour productivity rise:
Output increases with the same number of workers
Fewer workers produce the same output
What are some ‘soft’ methods to increase productivity
training
team work
motivational needs
Competition
What are some ‘hard’ methods of increasing productivity
Piece rate payements
Use of deadlines
Quotas and targets
Replacing workers with capital
Why is increasing labour productivity important
Increasing labour productivity leads to a fall in labour costs per unit
Can aimed output still be classed as output?
Yes
What you needs to do in the exam with this
When you get labour productivity questions, you need to write down the formula, as you’ll get at minimum 1 mark.