Productivity (2.4.1.)

Question 1

What is Productivity?

Answer 1

The amount of units produced by a given number of employees

Question 2

What’s the equation for Labour Productivity?

Answer 2

Labour Productivity=Total units of output/ Number of employees (Divide)

Question 3

What’s the equation for Profit Margin?

Answer 3

Profit Margin=(profit/Revenue) x100

Question 4

What are some ways to improve Productivity?

Answer 4

-Recruit correct staff
-Appropriately train staff to carry out their job as quickly as possible
-Motivate staff with financial and non-financial methods of motivation
-Invest in up-to-date machinery to help employees work faster
-Replace workers with machinery
-Review working practices to ensure staff work as quick as possible