Labour Productivity

• What does labor productivity measure?

  Output produced by each employee
• How can labor productivity be measured?

  In volume of output or value in currency
• What is the most popular measure of labor productivity discussed?

  Volume or output measure
• Why is labor productivity important for businesses?

  It affects cost structure and profitability
• How are unit costs related to labor productivity?

  Unit costs are directly linked to productivity
• What is the formula to calculate labor productivity?

  Output in units divided by number of employees
• If a business has 10 employees producing 2,000 units, what is the labor productivity?

  200 units per employee
• How many units per employee does a business with 40 employees producing 20,000 units achieve?

  500 units per employee
• What is the labor cost per unit when 40 employees produce 20,000 units?

  20 currency units per unit
• What factors influence labor productivity?

  Training, organization, and fixed assets quality
• How does the quality of fixed assets affect labor productivity?

  Better assets lead to higher productivity
• What is a key concept for improving labor productivity?

  Automation
• What is a potential challenge when improving labor productivity?

  Resistance from employees to automation
• What unintended consequence might arise from improving labor productivity?

  Employees may demand higher pay per unit
• What are the key aspects of labor productivity?

  • Measures output per employee
  • Influenced by training and organization
  • Linked to cost structure and profitability
  • Can be improved through automation
• What steps can a business take to improve labor productivity?

  • Enhance working conditions
  • Organize production efficiently
  • Provide adequate training
  • Invest in modern machinery and technology
  • Consider automation to reduce labor needs