Productivity

Question 1

Productivity

Answer 1

Output per unit of inputs which can be applied to any factor of production: land, labour, capital and enterprise.

Question 2

Division of labour

Answer 2

Occurs when production is broken down into many separate tasks. Specialisation of individual tasks leads to a higher output per person/hour worked.

Question 3

Productivity =

Answer 3

Output/no. Of goods produced, output, sales revenue, output

divided by

input, average no. Of employees, no. Of employees and machines, the no./value of machines (non-current/fixed assets), wage bill of employees.

Question 4

Ways to improve productivity

Answer 4

Monitoring employees 
Invest in machines and tech
Make jobs rewarding 
Make wok enjoyable 
Avoid spending too much time talking 
Encouraging team spirt 
Ergonomic work environment 
Introducing divisions of labour 
Avoiding micro-management 
Profit-sharing incentives
Suggestion box scheme

Question 5

Importance of productivity

Answer 5

Helps a business to be competitive
Reduces costs
Reduces Job insecurity
Encourages investment
Helps monitor the efficiency of the business
Products may be produced quicker which might give a competitive advantage.

Question 6

Average labour cost per unit =

Answer 6

Total cost divided by cost per unit