QUESTION 1
Measuring productivity allows us to forecast the country’s economic growth, however
the productivity data has limitations. Discuss these shortcomings.
Productivity is the relationship between real output (i.e. the quantity of goods and services
produced) and the quantity of input used to produce that output.
A lot of the productivity studies will focus on the labour productivity but if your look closely you
will see that the labour productivity is inaccurate. The productivity data will create an
impression that labour is fully responsible for labour productivity, which is true but most of the
factors that govern productivity can also be largely influenced by management, which is why
management is as much the responsibility of management as of the workers.
Measuring productivity allows us to forecast the country’s economic growth, however
the productivity data has limitations. Discuss these shortcomings.
Productivity is the relationship between real output (i.e. the quantity of goods and services
produced) and the quantity of input used to produce that output.
A lot of the productivity studies will focus on the labour productivity but if your look closely you
will see that the labour productivity is inaccurate. The productivity data will create an
impression that labour is fully responsible for labour productivity, which is true but most of the
factors that govern productivity can also be largely influenced by management, which is why
management is as much the responsibility of management as of the workers.
