labour productivity
What labour productivity means in Business A-Level, as defined for AQA.
Definitions of labour productivity
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Reference: AQA
Output per worker over a stated period, which when raised can lower labour cost per unit even where the hourly rate has gone up.
Output per worker per period, which has to rise or hold up against the wage saving for a lower wage to reduce unit labour cost.
Output per worker over a stated period, used as a key performance indicator to measure the impact of these changes.
Output divided by the number of employees, used as a measure of effectiveness rather than judging on impressions.
Output per worker per period, which fewer labour hours per unit raises and which pulls unit cost down.
Measured as output per worker per period, and a benefit of motivated and engaged employees.
Topics that use labour productivity
- Assessing globalisation and internationalisation (AQA A-Level)
- Human resource management (AQA A-Level)
- Making human resource decisions: improving motivation and engagement (AQA A-Level)
- Operational management (AQA A-Level)
- Understanding management, leadership and decision making (AQA A-Level)
Related terms
- competitive rivalry
- cost leadership
- differentiation
- functional interdependence
- labour turnover
- lead time and responsiveness
- application to a named business
- attribution and time lag
Using labour productivity in the exam
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