Tuesday, March 3, 2009

Finance

Among all production factors, labor force is generally identified and acknowledged as the factor that is most likely to affect the productivity of a business enterprise. Labor productivity, or the "average product of labor", is determined as the average output of every worker. To increase the productivity of employees, as well as the entire organization, many companies opt to implement computerization and automation. These increase individual employee productivity, as they minimize the number of tasks that each worker would have to perform. Other companies, meanwhile, develop wage incentive plans and implements changes in their organizational structure in their efforts to improve productivity. Many business enterprises also opt to increase their productivity by increasing their output. By investing in research and development, companies are able to find ways to increase the efficiency of business processes and develop new products and processes. Nevertheless, before any of these solutions are planned and enforced, companies look at applicable productivity ratios.

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