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Explain Why and how the concept of an organization is changing?
increase productivity, revenue.. etc
What is the meaning of incentive?
something that incites or tends to incite to action or greater effort, as a reward offered for increased productivity. or a reason to do somthing
How does the law of diminishing marginal productivity affect the cost of productions?
When marginal productivity is diminished, the cost of productions can decrease if the marginal costs for making an extra product is larger than the marginal revenue for that 1 extra unit product.
Briefly outline the theory of marginal revenue productivity and then examine the criticisms of the theory?
Workers are needed for the output they are required to produce. We say that labour as a factor input is a derived demand. When firms see increasing demand for their products, they will need to employ extra workers and thus the demand for labour increases. Demand for labour and the market wage rate There is normally an inverse relationship between the demand for labour and the wage rate that the firm will have to pay for each additional worker. If wages are high, it is more costly to hire extra employees. When wages are lower, labour becomes cheaper than using capital equipment and it becomes more attractive and affordable for the business to take on more employees. Remember that firms are aiming to maximise profits. They will use the factor of production (labour or capital) that does the job as efficiently as possible for the lowest possible cost. Marginal Revenue Product Marginal revenue productivity (MRP) is a theory of wages where workers are paid the value of their marginal revenue product to the firm. MRP theory suggests that wage differentials result from differences in labour productivity and the value of the output that the labour input produces MRP theory is based on a competitive labour market and the theory rests on a number of key assumptions that are unlikely to exist in the real world. (In reality, most labour markets are imperfect, one of the reasons for earnings differentials between occupations) * Workers are homogeneous * Firms have no buying power when demanding workers * There are no trade unions * The productivity of each worker can be clearly measured * The supply of labour is perfectly elastic. Workers are occupationally and geographically mobile and can be hired at a constant wage rate Marginal Revenue Product (MRP) measures the change in total revenue for a firm as a result of selling the output produced by an extra worker. MRP = Marginal Physical Product x Price of Output per unit ILLUSTRATING THE LABOUR DEMAND CURVE In the left hand diagram, when there is a fall in the wage rate from W1 to W2, the firm will expand employment from E1 to E2. This is because the labour input has become relatively cheaper for a given level of productivity, compared to other inputs. A rise in the wage rate from W1 to W3 causes a contraction of labour demand. Shifts in the marginal revenue product of labour Marginal revenue productivity of labour will increase when there is (a) an increase in labour productivity and/or (b) an increase in demand for the firm's output which causes higher prices and raises the value of output produced by the workforce. The right hand diagram shows how this causes an outward shift in the labour demand curve. For a given wage rate W1, a profit maximising firm will employ more workers. Total employment in the market will rise. Problems with marginal revenue productivity theory Marginal revenue productivity cannot be used as a valid basis for discussing labour demand for all types of workers. In many cases it is hard to objectively measure productivity because no physical output is produced by the workforce. Even if productivity can be measured, the output produced may not be sold at a market price. This makes it hard to place an exact valuation on the output of each extra worker. In other examples, wages may be set independently of the state of labour demand. Public sector workers may have their pay set directly by government. Marginal revenue product is useful in explaining the demand for labour in many occupations. But for a fuller explanation of wage determination and the existence and persistence of wage differentials, we must focus more on the supply side of individual labour markets.
What is the meaning of average revenue and marginal revenue?
what is average revenue?
What is marginal revenue?
Marginal revenue is the change in total revenue over the change in output or productivity.
Explain Why and how the concept of an organization is changing?
increase productivity, revenue.. etc
Why are office applications often called productivity tools?
Office Productivity tools are used to create, view and modify a document, spreadsheet and presentations. List of Office Productivity Tools Free: Libre office, Open Office Paid: MS Office, King soft, Word Perfect Office
Why do government around the world care about education?
Educated people are more efficient. Increased efficiency means increased productivity. Increased productivity means increased revenue...who doesn't want more money.
How do I calculate productivity in sales revenue?
To assess and enhance sales productivity, it is essential to analyze various metrics and factors that contribute to a salesperson's overall effectiveness. Every company or organization should know how to calculate productivity. This involves evaluating performance indicators such as the number of sales calls made, conversion rates, and the revenue generated relative to the time invested. By systematically measuring these elements, businesses can gain valuable insights into their sales processes, identify areas for improvement, and ultimately develop strategies to boost productivity and drive growth.
What are the benefits of motivating workers?
Harmonious relationship within the workplace that leads to higher productivity (employees/workers) and increase in revenue (organization/company).
What is the meaning of incentive?
something that incites or tends to incite to action or greater effort, as a reward offered for increased productivity. or a reason to do somthing
How does the law of diminishing marginal productivity affect the cost of productions?
When marginal productivity is diminished, the cost of productions can decrease if the marginal costs for making an extra product is larger than the marginal revenue for that 1 extra unit product.
What are managerial goals in business?
Management goals might include revenue, improvement, productivity, quality assurance, employee development, or management services consultant packages.
Is software considered a capital expense?
Yes, software can be considered a capital expense if it is purchased for long-term use and provides lasting benefits to a business, such as increasing productivity or generating revenue.
How do you calculate productivity per person?
To calculate productivity per person, divide the total output produced by a group or organization by the number of individuals contributing to that output. The formula is: Productivity per Person = Total Output / Number of Employees. Output can be measured in various ways, such as units produced, revenue generated, or tasks completed, depending on the context. This metric helps assess individual contributions to overall performance.
What is the amount of revenue that is generated by industrial technicians?
The revenue generated by industrial technicians can vary widely based on factors such as industry, location, and experience. On average, skilled industrial technicians can contribute significantly to their companies' revenue through increased efficiency, reduced downtime, and improved maintenance practices. However, specific revenue figures are often proprietary and not publicly disclosed, making it challenging to provide an exact amount. Industry reports may offer insights into average salaries and productivity metrics, but exact revenue contributions are typically calculated on a case-by-case basis.
