Some preliminary observations
The role of productivity in increasing national welfare is now universally recognized. In every country, developed or developing, with a market economy or a centrally planned economy, the main source of economic growth is an increase in productivity. Inversely, slackening of growth, stagnation and decline entail a slow-down in productivity improvement.
Both the developed and the developing countries have to deal with two questions simultaneously : to try to use both human and capital resources more effectively. The real problem, in every country, is to find the optimal balance between intensive and extensive methods of economic development. The development of modern equipment and the development of human resources must go hand in hand. Therefore, it is important to note that productivity improvement or the effective use of available resources is the best, indeed the only way, for future development in any kind of society.
Some may think that effective use of resources can mean simply the development of technology and organization, but it is often more important for total productivity improvement to contribute to human development in its broadest sense. Productivity is the point where human skills and interests, technology, management, and the social and business environment all converge. Even highly efficient and committed managers and workers will not survive if the organization cannot adapt to its constantly changing environment. The understanding and management of change have a vital role to play in productivity improvement. The organization must learn how to adjust to change and how to learn during change.
What Is productivity ?
Productivity is defined as the relationship between the output generated by a production or service system and the input provided to create this output. Thus, productivity is defined as the efficient use of resources – labor, capital, land, materials, energy, information – in the production of various goods and services.
You may download the article here.
Cheers
Prof.Lakshman
The role of productivity in increasing national welfare is now universally recognized. In every country, developed or developing, with a market economy or a centrally planned economy, the main source of economic growth is an increase in productivity. Inversely, slackening of growth, stagnation and decline entail a slow-down in productivity improvement.
Both the developed and the developing countries have to deal with two questions simultaneously : to try to use both human and capital resources more effectively. The real problem, in every country, is to find the optimal balance between intensive and extensive methods of economic development. The development of modern equipment and the development of human resources must go hand in hand. Therefore, it is important to note that productivity improvement or the effective use of available resources is the best, indeed the only way, for future development in any kind of society.
Some may think that effective use of resources can mean simply the development of technology and organization, but it is often more important for total productivity improvement to contribute to human development in its broadest sense. Productivity is the point where human skills and interests, technology, management, and the social and business environment all converge. Even highly efficient and committed managers and workers will not survive if the organization cannot adapt to its constantly changing environment. The understanding and management of change have a vital role to play in productivity improvement. The organization must learn how to adjust to change and how to learn during change.
What Is productivity ?
Productivity is defined as the relationship between the output generated by a production or service system and the input provided to create this output. Thus, productivity is defined as the efficient use of resources – labor, capital, land, materials, energy, information – in the production of various goods and services.
You may download the article here.
Cheers
Prof.Lakshman
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