Labour productivity is pivotal in determining a business's efficiency and profitability. It's calculated by output over employee count, affecting costs and competitiveness. Technological advancements and employee training can significantly improve productivity, while managing labour costs per unit is crucial for market positioning.
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Labour refers to the combined physical and mental work of employees in producing goods or providing services for a company
Labour is a crucial aspect of a company's operations and is often one of the largest expenses
Effective management of labour involves understanding its dynamics and measuring productivity, which is the output generated by the workforce over a given period
Labour productivity is determined by the ratio of output to the number of employees contributing to that output, and it can be measured over various time frames
Labour productivity is a key performance indicator that affects a company's profitability by influencing the cost of producing goods or services
Companies can enhance labour productivity by investing in employee training, providing access to efficient equipment and facilities, fostering a positive work environment, and encouraging employee participation in decision-making processes
Technological advancements can significantly increase labour productivity by streamlining production processes and allowing for higher output with the same number of employees
Technological improvements can also lead to reduced labour costs by enabling a company to maintain current production levels with a smaller workforce
Companies may face resistance from employees when implementing technological changes, but clear communication, retraining opportunities, and employee involvement can help alleviate concerns and ensure successful implementation
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In a business setting, ______ includes the combined physical and mental efforts of workers to create products or offer services.
Labour
01
______ productivity, which measures the output produced by employees in a certain timeframe, is vital for a company's ______.
Labour
profitability
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Labour Productivity Measurement Time Frames
Measured hourly or annually to match business operations.
