Comparing the actual ratio with the standard ratio, the real performance can be judged. If the,actual ratio is higher, the performance is below standard, whereas if the actual ratio is lower than the standard, the performance is better than the standard. The input/output frequency ratio of a PLL is set by frequency dividers in the reference and feedback paths. Increased profitability as high productivity leads reduces cost of production. what is the ratio of output to input When a firm is highly productive it becomes successful eventually, and because of this, incentives are bound to be made available to the employees. These include pay raises, bonuses, and medical insurance and so on.

It can be observed that the voltage ratio is square root of the power ratio. This is because we have the same reference levels for both voltage and power. With the help of this ratio, actual working of an industry can be assessed easily. A standard ratio must be set under the circumstances prevailing in the organization.

Products and services

There is a continuous change in the price of inputs and outputs, quality of raw-materials, machines and tools, quality of labor, etc. All this creates difficulties in measuring productivity. Job enrichment is the process of redesigning a job in order to enlarge its scope and to give the worker more to do. Its purpose is to improve job satisfaction, motivation and morale of workers.

For instance, high-tech companies tend to locate near universities where there is an abundance of educated labor. Some local governments may be willing to grant tax credits to attract companies to their area. The governments offer this incentive to increase the employment level and improve economic conditions in the area. The cost of hiring employees varies significantly among locations.

Productivity is the ratio between output of wealth and input of resources used in production processes. Output means the quantity of products produced and the inputs are the various resources used in the production. The resources used may be land, building, equipment, machinery, materials, labour etc.

Productivity: Meaning, Concept, Formulas, Techniques, Measurement and Advantages

They are the product (or output) approach, the income approach, and the expenditure approach. Work culture is a combination of qualities in an organization and its employees that arise from what is generally regarded as appropriate ways to think and act. Work cultures that mix of practices and ideologies arising from the interactions of people with their work environments have been shaped in all by diversity. This method includes material planning and control (MPC), purchasing, logistics, material storage and retrieval, source selection and procurement of quality material, waste elimination. Misinterpreted as technical change or efficiency/effectiveness of labor.

In what parts of the economy is productivity measured?

(iii) Poor maintenance of plant and machinery which leads to an accident. Thus, the basic work content is the minimum time required to manufacture a product and it cannot be reduced. (f) Supply production reports (feedback) directly to workers. Scheduling is useful because it establishes the expected amount of production that should be achieved at each work station over a given day or week. Firms that plan to hire specialized workers must be able to attract the labor needed. They may choose a location where a large supply of workers with that particular specialization exists.

Introduced in India by BHEL in 1981, the movement has now spread to about 250 to 350 establishments. Nearly 7,000 quality circles involving 70,000 workers are in operation. Companies like BHEL, HMT, Modi Rubber, J.K. Synthetics, etc., have successfully implemented this concept. A Facilitator makes integration of programme easier at all levels. The Coordinator supervises the facilitators and directs administration of the programme. There is a Steering Committee which oversees and directs the efforts of all quality circles in the organization.

More profits mean that more retained earnings which would ultimately increase shareholders’ wealth. At the level of a plant or an industry productivity is an output-input ratio. But at the macro level, productivity is a measure of performance of an economy or country. From a nation’s viewpoint productivity is the ratio of available goods and services to the potential resources of the country. Output implies total production while input means land, labour, capital, management, etc. Productivity measures the efficiency of the production system.

Flexitime helps to reduce worker alienation and to raise productivity. It reduces the tyranny of supervisors and provides job opportunity to working mothers, aged persons and students. It has greater motivational value than five days’ work-week. By permitting workers the right of self-determination, flexitime reduces tardiness, overtime and short-term absenteeism.

1. If a firm plans to sell its product in a specific location, it may establish its plant there.
2. That is, the accumulation of more and better capital equipment over time helps to make people more productive.
3. All these schemes foster sense of belonging and closer human relationships.

QWL is a new technique for improving productivity and quality of work. This would indicate that the firm’s productivity had increased 10% of the productivity of the base period. (vi) Due to higher productivity, a firm can survive and grow better.

CAD refers to design of products, processes or systems with the help of computers. The impact of CAD on human productivity is significant. Speed of evaluation of alternative designs, Minimization of risk of functioning, and Error reductions are the advantages of CAD. Provides both firm level and operational unit level productivity.

This is because the output of the service sector is intangible. Net output does not reflect the efficiency of production system in a proper way. The Japanese concept of quality circle has taken firm roots in India.

This index measures the efficiency in the use of all the resources. Partial productivity Indices depends upon factors used; it measures the efficacy of individual factor of production. Following are productivity indices for individual inputs. Quality can be measured by assessing the various characteristics (such as how long the product lasts) that enhance customer satisfaction. Productivity is an economics term which refers to the ratio of product to what is required to produce the product.