[Solution] Productivity - Leading and Managing Holistically
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Author: Emily Carter
Productivity is a major determinant of organizational profitability and has been important since the earliest days of business research. Recently, there's renewed focus on increasing productivity.
Levels of Productivity Analysis
- Aggregate productivity: Country level
- Industry productivity: All firms in an industry
- Company productivity: Individual company level
- Unit productivity: Department within organization
- Individual productivity: Single person level
Forms of Productivity
- Total factor productivity: Ratio of all outputs to all inputs
- Partial factor productivity: Ratio of outputs to single resource input
Which is the productivity of a single firm?
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Company productivity is the level of productivity achieved by an individual firm.
The ratio of the value of all an organization's outputs to the value of all its inputs is .
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Total factor productivity is the ratio of all outputs to all inputs. It can be difficult to calculate since different outputs and inputs need to be converted into the same units.
In the U.S. manufacturing sector, overall productivity is .
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Productivity has risen significantly in the U.S. manufacturing sector over the last few decades, contrary to common misconceptions.
