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Productivity

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1203: 979:, but not multiple factors, are called partial productivities. In practice, measurement in production means measures of partial productivity. Interpreted correctly, these components are indicative of productivity development, and approximate the efficiency with which inputs are used in an economy to produce goods and services. However, productivity is only measured partially â€“ or approximately. In a way, the measurements are defective because they do not measure everything, but it is possible to interpret correctly the results of partial productivity and to benefit from them in practical situations. At the company level, typical partial productivity measures are such things as worker hours, materials or energy used per unit of production. 1507:. Although from an individual management perspective, employees may be doing their jobs well and with high levels of individual productivity, from an organizational perspective their productivity may in fact be zero or effectively negative if they are dedicated to redundant or value destroying activities. In office buildings and service-centred companies, productivity is largely influenced and affected by operational byproducts—meetings. The past few years have seen a positive uptick in the number of software solutions focused on improving office productivity. In truth, proper planning and procedures are more likely to help than anything else. 1166:. Thus slowdowns, speed ups, improvements in the education of the labor force and all sorts of things will appear as 'technical change' ." The original MFP model involves several assumptions: that there is a stable functional relation between inputs and output at the economy-wide level of aggregation, that this function has neoclassical smoothness and curvature properties, that inputs are paid the value of their marginal product, that the function exhibits constant returns to scale, and that technical change has the Hicks’n neutral form. In practice, TFP is "a measure of our ignorance", as 1138: 1010: 1021: 47: 1560:
suggested that the UK's 'productivity puzzle' is an urgent issue for policy makers and businesses to address in order to sustain growth. Over long periods of time, small differences in rates of productivity growth compound, like interest in a bank account, and can make an enormous difference to a society's prosperity. Nothing contributes more to reduction of poverty, to increases in leisure, and to the country's ability to finance education, public health, environment and the arts’.
1044:, and living standards within an economy. It is the measure of labour productivity (and all that this measure takes into account) which helps explain the principal economic foundations that are necessary for both economic growth and social development. In general labour productivity is equal to the ratio between a measure of output volume (gross domestic product or gross value added) and a measure of input use (the total number of hours worked or total employment). 1103:
of all persons employed or total employment (head count). There are both advantages and disadvantages associated with the different input measures that are used in the calculation of labour productivity. It is generally accepted that the total number of hours worked is the most appropriate measure of labour input because a simple headcount of employed persons can hide changes in average hours worked and has difficulties accounting for variations in work such as a
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the income earned per unit of input (unless there are increasing returns to scale). In fact, it is likely to mean lower average wages and lower rates of profit. But, when there is productivity growth, even the existing commitment of resources generates more output and income. Income generated per unit of input increases. Additional resources are also attracted into production and can be profitably employed.
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systematically biased in favour of capital intensive production at the expense of knowledge and labour-intensive production. The use of capital in the GDP-measure is considered to be as valuable as the production's ability to pay taxes, profits and labor compensation. The bias of the GDP is actually the difference between the GDP and the producer income.
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productivity of the company and also the distribution of the ’fruits of production’ among all parties at interest”. According to Davis, the price system is a mechanism through which productivity gains are distributed, and besides the business enterprise, receiving parties may consist of its customers, staff and the suppliers of production inputs.
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Overall productivity growth was relatively slow from the 1970s through the early 1990s, and again from the 2000s to 2020s. Although several possible causes for the slowdown have been proposed there is no consensus. The matter is subject to a continuing debate that has grown beyond questioning whether
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play a significant role in work productivity and received wage. Drivers of productivity growth for creative and knowledge workers include improved or intensified exchange with peers or co-workers, as more productive peers have a stimulating effect on one's own productivity. Productivity is influenced
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Productivity growth is important to the firm because it means that it can meet its (perhaps growing) obligations to workers, shareholders, and governments (taxes and regulation), and still remain competitive or even improve its competitiveness in the market place. Adding more inputs will not increase
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by the process under consideration, i.e. the value of outputs minus the value of intermediate inputs. This is done in order to avoid double-counting when an output of one firm is used as an input by another in the same measurement. In macroeconomics the most well-known and used measure of value-added
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Productivity is considered basic statistical information for many international comparisons and country performance assessments and there is strong interest in comparing them internationally. The OECD publishes an annual Compendium of Productivity Indicators that includes both labor and multi-factor
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At the national level, productivity growth raises living standards because more real income improves people's ability to purchase goods and services (whether they are necessities or luxuries), enjoy leisure, improve housing and education and contribute to social and environmental programs. Some have
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has been removed in favor of an egalitarian, team-based setup, the employees are often happier, and individual productivity is improved (as they themselves are better placed to increase the efficiency of the workfloor). Companies that have these hierarchies removed and have their employees work more
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The measure of input use reflects the time, effort and skills of the workforce. The denominator of the ratio of labour productivity, the input measure is the most important factor that influences the measure of labour productivity. Labour input is measured either by the total number of hours worked
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method) has an easier time motivating their employees to produce more in quantity and quality. An employee who has an effective supervisor, motivating them to be more productive is likely to experience a new level of job satisfaction thereby becoming a driver of productivity itself. There is also
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program. Whether they have a formal program or not, companies are constantly looking for ways to improve quality, reduce downtime and inputs of labor, materials, energy and purchased services. Often simple changes to operating methods or processes increase productivity, but the biggest gains are
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When all outputs and inputs are included in the productivity measure it is called total productivity. A valid measurement of total productivity necessitates considering all production inputs. If we omit an input in productivity (or income accounting) this means that the omitted input can be used
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Davis has considered the phenomenon of productivity, measurement of productivity, distribution of productivity gains, and how to measure such gains. He refers to an article suggesting that the measurement of productivity shall be developed so that it ”will indicate increases or decreases in the
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Another labour productivity measure, output per worker, is often seen as a proper measure of labour productivity, as here: "Productivity isn't everything, but in the long run it is almost everything. A country's ability to improve its standard of living over time depends almost entirely on its
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per worker. There are many different definitions of productivity (including those that are not defined as ratios of output to input) and the choice among them depends on the purpose of the productivity measurement and data availability. The key source of difference between various productivity
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In the main article is presented the role of total productivity as a variable when explaining how income formation of production is always a balance between income generation and income distribution. The income change created by production function is always distributed to the stakeholders as
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put it, precisely because it is a residual. This ignorance covers many components, some wanted (like the effects of technical and organizational innovation), others unwanted (measurement error, omitted variables, aggregation bias, model misspecification) Hence the relationship between TFP and
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intermediate outputs, the measure is called total factor productivity (TFP]. TFP measures the residual growth that cannot be explained by the rate of change in the services of labour and capital. MFP replaced the term TFP used in the earlier literature, and both terms continue in use (usually
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GDP per capita is a rough measure of average living standards or economic well-being and is one of the core indicators of economic performance. GDP is, for this purpose, only a very rough measure. Maximizing GDP, in principle, also allows maximizing capital usage. For this reason, GDP is
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ability to raise its output per worker." This measure (output per worker) is, however, more problematic than the GDP or even invalid because this measure allows maximizing all supplied inputs, i.e. materials, services, energy and capital at the expense of producer income.
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and scope. A nation's average productivity level can also be affected by the movement of resources from low-productivity to high-productivity industries and activities. Over time, other factors such as research and development and innovative effort, the development of
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the same concept of productivity as in a production unit or a company, yet, the object of modelling is substantially wider and the information more aggregate. The calculations of productivity of a nation or an industry are based on the time series of the SNA,
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Technology has enabled massive personal productivity gains—computers, spreadsheets, email, and other advances have made it possible for a knowledge worker to seemingly produce more in a day than was previously possible in a year. Environmental factors such as
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In the most immediate sense, productivity is determined by the available technology or know-how for converting resources into outputs, and the way in which resources are organized to produce goods and services. Historically, productivity has improved through
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through education, and incentives from stronger competition promote the search for productivity improvements and the ability to achieve them. Ultimately, many policy, institutional and cultural factors determine a nation's success in improving productivity.
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considerable evidence to support improved productivity through operant conditioning reinforcement, successful gamification engagement, and research-based recommendations on principles and implementation guidelines for using monetary rewards effectively.
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for data processing began being widely used in the 1920s and 1930s and remained in use until mainframe computers became widespread in the late 1960s through the 1970s. By the late 1970s inexpensive computers allowed industrial operations to perform
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improves productivity by creating incentives to innovate and ensures that resources are allocated to the most efficient firms. It also forces existing firms to organise work more effectively through imitations of organisational structures and
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Mass production dramatically reduced the labor in producing parts for and assembling the automobile, but after its widespread adoption productivity gains in automobile production were much lower. A similar pattern was observed with
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unlimitedly in production without any impact on accounting results. Because total productivity includes all production inputs, it is used as an integrated variable when we want to explain income formation of the production process.
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TFP is often interpreted as a rough average measure of productivity, more specifically the contribution to economic growth made by factors such as technical and organisational innovation. The most famous description is that of
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improves people's ability to purchase goods and services, enjoy leisure, improve housing, and education and contribute to social and environmental programs. Productivity growth can also help businesses to be more profitable.
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or GDP. Increases in it are widely used as a measure of the economic growth of nations and industries. GDP is the income available for paying capital costs, labor compensation, taxes and profits. Some economists instead use
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are defined as the quantity and quality of labour of different types available in an economy. Skills complement physical capital, and are needed to take advantage of investment in new technologies and organisational
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normally from adopting new technologies, which may require capital expenditures for new equipment, computers or software. Modern productivity science owes much to formal investigations that are associated with
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is in physical capital â€” machinery, equipment and buildings. The more capital workers have at their disposal, generally the better they are able to do their jobs, producing more and better quality
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is defined as the seizing of new business opportunities by both start-ups and existing firms. New enterprises compete with existing firms by new ideas and technologies increasing competition.
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Productivity growth is a crucial source of growth in living standards. Productivity growth means more value is added in production and this means more income is available to be distributed.
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Helge H, Sheehan MJ, Cooper CL, Einarsen S "Organisational Effects of Workplace Bullying" in Bullying and Harassment in the Workplace: Developments in Theory, Research, and Practice (2010)
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Caves, Douglas W & Christensen, Laurits R & Diewert, W Erwin, November 1982. "The Economic Theory of Index Numbers and the Measurement of Input, Output, and Productivity",
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Caves, Douglas W & Christensen, Laurits R & Diewert, W Erwin, March 1982. "Multilateral Comparisons of Output, Input, and Productivity Using Superlative Index Numbers",
3268: 2395: 1403:(R&D) tends to increase productivity growth, with public R&D showing larger spillovers and smaller firms experiencing larger productivity gains from public R&D. 991:
and track productivity. Today data collection is largely computerized and almost any variable can be viewed graphically in real time or retrieved for selected time periods.
1323:(e.g. core functions and supplier relationships), management systems, work arrangements, manufacturing techniques, and changing market structure. A famous example is the 1050: 2030:"Economic growth, technological progress and energy use in the U.S. over the last century: Identifying common trends and structural change in macroeconomic time series" 1498:
Productivity is one of the main concerns of business management and engineering. Many companies have formal programs for continuously improving productivity, such as a
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or an aggregate input used in a production process, i.e. output per unit of input, typically over a specific period of time. The most common example is the (aggregate)
1539:. National accounting is a system based on the recommendations of the UN (SNA 93) to measure the total production and total income of a nation and how they are used. 2304:
Robson, Karen; Plangger, Kirk; Kietzmann, Jan H.; McCarthy, Ian; Pitt, Leyland (January 2016). "Game on: Engaging customers and employees through gamification".
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measures is also usually related (directly or indirectly) to how the outputs and the inputs are aggregated to obtain such a ratio-type measure of productivity.
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There is a general understanding of the main determinants or drivers of productivity growth. Certain factors are critical for determining productivity growth.
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Productivity is a crucial factor in the production performance of firms and nations. Increasing national productivity can raise living standards because
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Guellec, Dominique; van Pottelsberghe de la Potterie, Bruno (7 May 2003). "R&D and Productivity Growth: Panel Data Analysis of 16 OECD Countries".
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When multiple inputs are considered, the measure is called multi-factor productivity or MFP. Multi-factor productivity is typically estimated using
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member states. Productivity is measured as GDP per hour worked. Blue bars = higher than OECD-average productivity. Yellow bars = lower than average.
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by this, they cannot devote time and attention to the achievement of business goals. When toxic employees leave the workplace, it can improve the
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International or national productivity growth stems from a complex interaction of factors. Some of the most important immediate factors include
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Aguinis, Herman; Joo, Harry; Gottfredson, Ryan K. (March 2013). "What monetary rewards can and cannot do: How to show employees the money".
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A Multiple Case Study Research to Determine and respond to Management Information Need Using Total-Factor Productivity Measurement (TFPM)
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is a workplace that is marked by significant drama and infighting, where personal battles often harm productivity. While employees are
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system of bottom-up, continuous improvement was first practiced by Japanese manufacturers after World War II, most notably as part of
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Gollop, F. M. (1979). "Accounting for Intermediate Input: The Link Between Sectoral and Aggregate Measures of Productivity Growth".
3388: 3375: 3362: 2489: 2403: 1004: 3127:, Norris, M., & Zhang, Z. 1994. "Productivity growth, technical progress, and efficiency change in industrialized countries". 1368:. New ideas can take the form of new technologies, new products or new corporate structures and ways of working. Speeding up the 1522:
just computers can significantly increase productivity to whether the potential to increase productivity is becoming exhausted.
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by effective supervision and job satisfaction. An effective or knowledgeable supervisor (for example a supervisor who uses the
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as processes with poor productivity performance are abandoned and newer forms are exploited. Process improvements may include
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Before the widespread use of computer networks, partial productivity was tracked in tabular form and with hand-drawn graphs.
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Benoit, Suzanne (2011) "Toxic Employees: great companies resolve this problem, you can too!" Falmouth, Maine: BCSPublishing
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Alan Blinder and William Baumol 1993, Economics: Principles and Policy, Harcourt Brace Jovanovich, San Diego, p. 778.
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Alexandra Daskovska & LĂ©opold Simar & SĂ©bastien Bellegem, 2010. "Forecasting the Malmquist productivity index",
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At a firm or industry level, the benefits of productivity growth can be distributed in a number of different ways:
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are able to combine factors of production and new technologies forcing existing firms to adapt or exit the market.
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Total Productivity Management (TPmgt): A Systemic and Quantitative Approach to Compete in Quality, Price and Time
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to governments through increases in tax payments (which can be used to fund social and environmental programs).
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Genesca, G. E.; Grifell, T. E. (1992). "Profits and Total Factor Productivity: A Comparative Analysis".
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expressed by some measure. Measurements of productivity are often expressed as a ratio of an aggregate
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Simar, Leopold & Wilson, Paul W., June 1999. "Estimating and bootstrapping Malmquist indices",
3129: 2152:"Geographic clustering and productivity: An instrumental variable approach for classical composers" 1428: 1412: 1400: 1369: 1320: 1253: 1075:{\displaystyle {\text{labour productivity}}={\frac {\text{output volume}}{\text{labor input use}}}} 819: 557: 512: 365: 134: 78: 3383: 1141:
Trends in U.S. productivity from labor, capital and multi-factor sources over the 1987–2014 period
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Boddy, C. R. (2010) ‘Corporate Psychopaths and Productivity', Management Services Spring, 26–30.
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has also been associated with diminished productivity in terms of quality and quantity of work.
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to shareholders and superannuation funds through increased profits and dividend distributions;
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Labour productivity growth in Australia since 1978, measured by GDP per hour worked (indexed)
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Loggerenberg, B. van; Cucchiaro, S. (1982). "Productivity Measurement and the Bottom Line".
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Workplace bullying: Aggressive behavior and its effect on job satisfaction and productivity
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overall because the remaining staff become more engaged and productive. The presence of a
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Abramovitz, M. (May 1956). "Resource and Output Trends in the United States since 1870".
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In order to measure the productivity of a nation or an industry, it is necessary to
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Craig, C.; Harris, R. (1973). "Total Productivity Measurement at the Firm Level".
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http://www.robertbitting.com/files/articles/Toxic-Employees-in-the-Work-Place.pdf
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that appeared in the decade following commercial introduction of the automobile.
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Productivity Statistics—Organisation for Economic Co-operation and Development
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This article is about the economic and business concept. For other uses, see
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Kurosawa, K (1975). "An aggregate index for the analysis of productivity".
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may have a serious detrimental impact on productivity in an organisation.
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La methode des "Comptes de surplus" et ses applications macroeconomiques
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Productivity. Theory and Measurement in Business. Productivity Handbook
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to the environment through more stringent environmental protection; and
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http://smallbusiness.chron.com/employee-turnover-always-bad-11089.html
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Detrimental impact of bullying, incivility, toxicity and psychopathy
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The output measure is typically net output, more specifically the
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Measurement of Productivity and Efficiency: Theory and Practice
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Mayhew, Ruth "Is employee turnover always bad?" accessed at:
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results in a loss of productivity, as measured by self-rated
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Comparison of average labour productivity levels between the
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Measuring Company Productivity: A handbook with Case Studies
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In macroeconomics, a common partial productivity measure is
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Bureau of Labor Statistics, Productivity Statistics (U.S.)
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Frederick W. Taylor and the Rise of Scientific Management
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Productivity and Costs â€“ Bureau of Labor Statistics
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Productivity measures that use one class of inputs or
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to the workforce through better wages and conditions;
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Production and Productivity as Sources of Well-being
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Johns Hopkins University Press. 3218:Kendrick, J.; Creamer, D. (1965). 3053: 2069:10.1787/eco_studies-v2001-art12-en 1791: 1600:Productive and unproductive labour 1364:is the successful exploitation of 1344:The Office for National Statistics 1223:to customers through lower prices; 14: 3556: 3453:United States Department of Labor 3420:Concise Encyclopedia of Economics 3402: 3369:Mayer, A. and Zelenyuk, V. 2014. 3309:Riistama, K.; Jyrkkiö E. (1971). 2848:Courbois, R.; Temple, P. (1975). 2571:. University of Wisconsin Press. 948:measure, one example of which is 3512: 3500: 3425:Library of Economics and Liberty 3109:Journal of Productivity Analysis 2903:Hulten, C. R. (September 2009). 1764:Sumanth, David J. (1997-10-27). 1650:Kaliski, Burton S., ed. (2001). 1407:Individual and team productivity 1241: 872: 860: 45: 3074:. American Productivity Center. 2959:Productivity Theory and Drivers 2955: 2875:. National Academy of Sciences. 2791: 2777: 2768: 2750:Bordoloi, Tausif (2019-10-11). 2743: 2708: 2635: 2610: 2585: 2539: 2525: 2507: 2482: 2468: 2459: 2447: 2427: 2418: 2368: 2332: 2297: 2268: 2229: 2179: 2143: 2117: 2042: 1989:The Global Economy in the 1990s 1967: 1958: 1892: 1615:Production–possibility frontier 1585:Counterproductive work behavior 1198:Benefits of productivity growth 147:Concepts, theory and techniques 3423:(2nd ed.). Indianapolis: 3239:Improving Company Productivity 3168:The Review of Economic Studies 2967:Office for National Statistics 2880:Hulten, C. R. (January 2000). 2860:Labour productivity indicators 2109:Fuller, Ryan (19 April 2016). 1748:, Hitt and Brynjolfsson 1996, 1723: 1643: 1304:Drivers of productivity growth 1171:productivity remains unclear. 1: 3392:, vol. 174(2), pp. 1076–1086. 3342:. Tokyo: OECD. Archived from 3119:. University of Pennsylvania. 2384:(PhD). University of Phoenix. 2375:Fisher-Blando, J. L. (2008). 2186:Borowiecki, Karol J. (2015). 2150:Borowiecki, Karol J. (2013). 1689:; Zelenyuk, Valentin (2019). 1631: 958:increase in income per capita 21:Productivity (disambiguation) 3474: 3409:Field, Alexander J. (2008). 3281:National Productivity Review 3151:10.1016/0305-0483(92)90002-O 3093:, vol. 50(6), pp. 1393–1414. 3066:. Edited by Alistair Dieppe. 2940:10.1016/0305-0483(75)90115-2 2909:NBER Working Paper No. 15341 2353:10.1016/j.bushor.2012.11.007 2318:10.1016/j.bushor.2015.08.002 1997:10.1017/CBO9780511616464.006 1983:Field, Alexander J. (2006). 1636: 1625:Second Industrial Revolution 1580:Computer-aided manufacturing 7: 3311:Operatiivinen laskentatoimi 3100:MIT Sloan Management Review 2886:NBER Working Paper No. 7471 2666:Brynjolfsson, Erik (1993). 1750:Sickles & Zelenyuk 2019 1567: 1537:System of National Accounts 10: 3561: 2819: 2593:"Stop the Meeting Madness" 2254:10.1177/014920638100700105 2195:Papers in Regional Science 2160:Journal of Urban Economics 1808:. U.S. Department of Labor 1806:Bureau of Labor Statistics 1730:Courbois & Temple 1975 1564:measures of productivity. 1514: 1410: 1307: 1178: 1130: 998: 968: 18: 2672:Communications of the ACM 2444:. Retrieved May 13, 2011. 2173:10.1016/j.jue.2012.07.004 1482:or "Freedom Inc.'s". The 1321:organizational structures 1133:Total factor productivity 1127:Multi-factor productivity 3235:Kendrick, J. W. (1984). 3130:American Economic Review 2829:American Economic Review 2478:. Innovation Excellence. 1770:. CRC Press. p. 5. 1429:Management by objectives 1413:Programming productivity 1401:Research and development 1370:diffusion of innovations 135:JEL classification codes 3117:Productivity Accounting 3070:Bechler, J. G. (1984). 2597:Harvard Business Review 2567:Nelson, Daniel (1980). 1620:Return on time invested 1473:In companies where the 1372:can boost productivity. 321:Industrial organization 178:Computational economics 3336:Measuring Productivity 3328:(in Finnish). MIDO OY. 3300:Mundel, M. E. (1983). 3293:10.1002/npr.4040010111 2989:. MIDO OY. p. 25. 2490:"L'entreprise liberĂ©e" 2275:Skinner, B.F. (1974). 1207: 1181:Production (economics) 1142: 1092:gross domestic product 1076: 1029: 1017: 1001:Workforce productivity 173:Experimental economics 3333:Schreyer, P. (2005). 3115:Davis, H. S. (1955). 3103:(Spring 1973): 13–28. 2803:www.oecd-ilibrary.org 2685:10.1145/163298.163309 2242:Journal of Management 2057:OECD Economic Studies 1699:10.1017/9781139565981 1595:Industrial Revolution 1526:National productivity 1505:scientific management 1494:Business productivity 1475:traditional hierarchy 1205: 1140: 1077: 1023: 1012: 3535:Production economics 3315:Operative accounting 3081:The Economic Journal 2857:Freeman, R. (2008). 1544:technological change 1517:Productivity paradox 1511:Productivity paradox 1500:production assurance 1478:in teams are called 1468:workplace psychopath 1449:Workplace incivility 1265:improve this section 1051: 971:Partial productivity 965:Partial productivity 400:Social choice theory 3382:Zelenyuk, V. 2006. 3322:Saari, S. (2006a). 2974:Pineda, A. (1990). 2905:"Growth Accounting" 2515:"What is Holacracy" 2207:2015PRegS..94..443B 1991:. pp. 89–117. 1480:liberated companies 1327:and the process of 1164:production function 1056:labour productivity 1034:labour productivity 995:Labour productivity 984:Tabulating machines 946:labour productivity 867:Business portal 188:Operations research 168:National accounting 3415:David R. Henderson 3258:Kohli, U. (2012). 3060:World Bank, 2020. 2994:Saari, S. (2006). 2983:Saari, S. (2011). 2440:2011-08-13 at the 2215:10.1111/pirs.12078 1610:Productivity model 1590:Division of labour 1575:Agile construction 1548:economies of scale 1441:Workplace bullying 1208: 1175:Total productivity 1154:interchangeably). 1143: 1105:part-time contract 1072: 1030: 1018: 198:Industrial complex 193:Middle income trap 2521:. 2 January 2023. 2341:Business Horizons 2306:Business Horizons 2279:About Behaviorism 2006:978-0-511-61646-4 1605:Productive forces 1301: 1300: 1293: 1168:Abramovitz (1956) 1147:growth accounting 1097:gross value added 1070: 1069: 1066: 1057: 915: 914: 3552: 3517: 3516: 3505: 3504: 3496: 3464:Greenspan Speech 3446: 3357: 3355: 3354: 3348: 3341: 3329: 3318: 3305: 3304:. Prentice-Hall. 3296: 3275: 3273: 3266: 3254: 3242: 3231: 3214: 3212: 3200: 3159:Jorgenson, D. 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Index

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a series
Economics

History
Outline
Index
classifications
Applied
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Heterodox
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Micro
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Mainstream
Mathematical
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Market
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Experimental economics
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Operations research
Middle income trap
Industrial complex
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