Productivity - Revision history

User at 11:04, 1 July 2023

2023-07-01T11:04:18Z

User at 19:17, 19 April 2023

2023-04-19T19:17:42Z

User at 19:26, 25 November 2022

2022-11-25T19:26:05Z

User at 20:06, 4 November 2022

2022-11-04T20:06:53Z

User at 19:54, 4 November 2022

2022-11-04T19:54:11Z

User at 21:34, 10 April 2021

2021-04-10T21:34:19Z

User at 21:26, 10 April 2021

2021-04-10T21:26:06Z

User at 21:25, 10 April 2021

2021-04-10T21:25:15Z

User: Created page with "'''Content Coming Soon'''"

2019-01-06T22:20:37Z

Created page with "'''Content Coming Soon'''"

New page

'''Content Coming Soon'''

@@ Line 58: / Line 58: @@
 ===See Also===
 *[[Business Strategy]]
-*[[IT Strategy (Information Technology Strategy)]]
+*[[IT Strategy (Information Technology Strategy)|IT Strategy]]
 *[[IT Governance]]
 *[[Business Value]]
-*[[IT Investment (Information Technology Investment)]]
+*[[IT Investment (Information Technology Investment)|IT Investment]]
 *[[Organizational Efficiency]]

@@ Line 1: / Line 1: @@
-'''Productivity''', in economics, measures output per unit of input, such as labor, capital, or any other resource – and is typically calculated for the economy as a whole, as a ratio of gross domestic product (GDP) to hours worked. Labor productivity may be further broken down by sector to examine trends in labor growth, wage levels, and technological improvement. Corporate profits and shareholder returns are directly linked to productivity growth. At the corporate level, where productivity is a measure of the [[Organizational Efficiency|efficiency of a company's production process]], it is calculated by measuring the number of units produced relative to employee labor hours or by measuring a company's net sales relative to employee labor hours.<ref>[https://www.investopedia.com/terms/p/productivity.asp What Does Productivity Mean?] - Investopedia</ref>
+'''Productivity''', in economics, measures output per unit of input, such as labor, capital, or any other resource – and is typically calculated for the economy as a whole as a ratio of gross domestic product (GDP) to hours worked. Labor productivity may be further broken down by sector to examine trends in labor growth, wage levels, and technological improvement. Corporate profits and shareholder returns are directly linked to productivity growth. At the corporate level, where productivity is a measure of the efficiency of a company's production process, it is calculated by measuring the number of units produced relative to employee labor hours or by measuring a company's net sales relative to employee labor hours.<ref>[https://www.investopedia.com/terms/p/productivity.asp What Does Productivity Mean?] - Investopedia</ref>
 Steve Pavlina defines productivity as:
@@ Line 62: / Line 62: @@
 *[[Business Value]]
 *[[IT Investment (Information Technology Investment)]]
+*[[Organizational Efficiency]]
 ===References===
 <references />

@@ Line 1: / Line 1: @@
-'''Productivity''', in economics, measures output per unit of input, such as labor, capital, or any other resource – and is typically calculated for the economy as a whole, as a ratio of gross domestic product (GDP) to hours worked. Labor productivity may be further broken down by sector to examine trends in labor growth, wage levels, and technological improvement. Corporate profits and shareholder returns are directly linked to productivity growth. At the corporate level, where productivity is a measure of the [[Organizational Efficiency|efficiency of a company's production process]], it is calculated by measuring the number of units produced relative to [[Employee|employee]] labor hours or by measuring a company's net sales relative to [[employee]] labor hours.<ref>[https://www.investopedia.com/terms/p/productivity.asp What Does Productivity Mean?] - Investopedia</ref>
+'''Productivity''', in economics, measures output per unit of input, such as labor, capital, or any other resource – and is typically calculated for the economy as a whole, as a ratio of gross domestic product (GDP) to hours worked. Labor productivity may be further broken down by sector to examine trends in labor growth, wage levels, and technological improvement. Corporate profits and shareholder returns are directly linked to productivity growth. At the corporate level, where productivity is a measure of the [[Organizational Efficiency|efficiency of a company's production process]], it is calculated by measuring the number of units produced relative to employee labor hours or by measuring a company's net sales relative to employee labor hours.<ref>[https://www.investopedia.com/terms/p/productivity.asp What Does Productivity Mean?] - Investopedia</ref>
 Steve Pavlina defines productivity as:
@@ Line 32: / Line 32: @@
 *Innovation is the successful exploitation of new ideas. New ideas can take the form of new technologies, new products, or new corporate structures and ways of working. Speeding up the diffusion of innovations can boost productivity.
 *Skills are defined as the quantity and quality of labor of different types available in an economy. Skills complement physical capital and are needed to take advantage of investment in new technologies and organizational structures.
-*Enterprise 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. Entrepreneurs are able to combine factors of production and new technologies forcing existing firms to adapt or exit the market.
+*Enterprise 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. Entrepreneurs are able to combine factors of production and new technologies forcing existing firms to adapt or exit the market.
 *Competition improves productivity by creating incentives to innovate and ensures that resources are allocated to the most efficient firms. It also forces existing firms to organize work more effectively through imitations of organizational structures and technology.
@@ Line 57: / Line 57: @@
 ===See Also===
-*[[Strategy]]
+*[[Business Strategy]]
 *[[Business Value]]
 *[[IT Investment (Information Technology Investment)]]

@@ Line 1: / Line 1: @@
-'''Productivity''', in economics, measures output per unit of input, such as labor, capital, or any other resource – and is typically calculated for the economy as a whole, as a ratio of gross domestic product (GDP) to hours worked. Labor productivity may be further broken down by sector to examine trends in labor growth, wage levels, and technological improvement. Corporate profits and shareholder returns are directly linked to productivity growth. At the corporate level, where productivity is a measure of the [[Organizational Efficiency|efficiency of a company's production process]], it is calculated by measuring the number of units produced relative to [[Employee|employee]] labor hours or by measuring a company's net sales relative to [[employee]] labor hours.<ref>What Does Productivity Mean? [https://www.investopedia.com/terms/p/productivity.asp Investopedia]</ref>
+'''Productivity''', in economics, measures output per unit of input, such as labor, capital, or any other resource – and is typically calculated for the economy as a whole, as a ratio of gross domestic product (GDP) to hours worked. Labor productivity may be further broken down by sector to examine trends in labor growth, wage levels, and technological improvement. Corporate profits and shareholder returns are directly linked to productivity growth. At the corporate level, where productivity is a measure of the [[Organizational Efficiency|efficiency of a company's production process]], it is calculated by measuring the number of units produced relative to [[Employee|employee]] labor hours or by measuring a company's net sales relative to [[employee]] labor hours.<ref>[https://www.investopedia.com/terms/p/productivity.asp What Does Productivity Mean?] - Investopedia</ref>
 Steve Pavlina defines productivity as:
@@ Line 20: / Line 20: @@
 ''Productivity = Impact x Endurance x Essence x Volume / Time''
-Impact refers to how many people are influenced by your work, or to what degree they are influenced. Endurance refers to how long your work will last (think of the longevity of a sandwich vs. a digital graphic design vs. a classic work of art). Essence refers to the quality and type of what you do; is it easily mimicked, or unique? Is its effect deep and important, or temporary and self-limiting? Volume refers to the quantity of what you produce as defined by your particular work.<ref>What is Productivity [https://stevepavlina.com/blog/2005/10/what-is-productivity/ Steve Pavlina]</ref>
+Impact refers to how many people are influenced by your work, or to what degree they are influenced. Endurance refers to how long your work will last (think of the longevity of a sandwich vs. a digital graphic design vs. a classic work of art). Essence refers to the quality and type of what you do; is it easily mimicked, or unique? Is its effect deep and important, or temporary and self-limiting? Volume refers to the quantity of what you produce as defined by your particular work.<ref> [https://stevepavlina.com/blog/2005/10/what-is-productivity/ What is Productivity?]-Steve Pavlina</ref>
-'''Productivity Drivers<ref>Drivers of productivity growth [https://en.wikipedia.org/wiki/Productivity Wikipedia]</ref>'''<br />
+'''Productivity Drivers<ref>[https://en.wikipedia.org/wiki/Productivity Drivers of productivity growth]-Wikipedia</ref>'''<br />
 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 evolution as processes with poor productivity performance are abandoned and newer forms are exploited. Process improvements may include organizational structures (e.g. core functions and supplier relationships), management systems, work arrangements, manufacturing techniques, and changing market structure. A famous example is the assembly line and the process of mass production that appeared in the decade following the commercial introduction of the automobile.
@@ Line 36: / Line 36: @@
-'''Productivity's Effect on Job Growth and Income<ref>Productivity as it Relates to Job Growth and Income [https://www.thebalance.com/u-s-productivity-what-is-it-how-to-calculate-it-3306227 the balance]</ref>''' <br />
+'''Productivity's Effect on Job Growth and Income<ref>[https://www.thebalance.com/u-s-productivity-what-is-it-how-to-calculate-it-3306227 Productivity as it Relates to Job Growth and Income]-the balance</ref>''' <br />
 ''Productivity and Job Growth''<br />
@@ Line 57: / Line 57: @@
 ===See Also===

@@ Line 1: / Line 1: @@
-'''Productivity''', in economics, measures output per unit of input, such as labor, [[Capital|capital]] or any other resource – and is typically calculated for the economy as a whole, as a ratio of [[Gross Domestic Product|gross domestic product (GDP)]] to hours worked. Labor productivity may be further broken down by sector to examine trends in labor growth, wage levels and technological improvement. Corporate profits and shareholder returns are directly linked to productivity growth. At the corporate level, where productivity is a measure of the [[Organizational Efficiency|efficiency of a company's production process]], it is calculated by measuring the number of units produced relative to [[Employee|employee]] labor hours or by measuring a company's net sales relative to employee labor hours.<ref>What Does Productivity Mean? [https://www.investopedia.com/terms/p/productivity.asp Investopedia]</ref>
+'''Productivity''', in economics, measures output per unit of input, such as labor, capital, or any other resource – and is typically calculated for the economy as a whole, as a ratio of gross domestic product (GDP) to hours worked. Labor productivity may be further broken down by sector to examine trends in labor growth, wage levels, and technological improvement. Corporate profits and shareholder returns are directly linked to productivity growth. At the corporate level, where productivity is a measure of the [[Organizational Efficiency|efficiency of a company's production process]], it is calculated by measuring the number of units produced relative to [[Employee|employee]] labor hours or by measuring a company's net sales relative to [[employee]] labor hours.<ref>What Does Productivity Mean? [https://www.investopedia.com/terms/p/productivity.asp Investopedia]</ref>
 Steve Pavlina defines productivity as:
@@ Line 5: / Line 5: @@
 ''Productivity = Value / Time (productivity equals value divided by time)''<br />
-By this definition there are two primary ways of increasing productivity:<br />
+By this definition, there are two primary ways of increasing productivity:<br />
 ) Increase the value created<br />
 ) Decrease the time required to create that value<br />
@@ Line 24: / Line 24: @@
 '''Productivity Drivers<ref>Drivers of productivity growth [https://en.wikipedia.org/wiki/Productivity Wikipedia]</ref>'''<br />
-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 evolution as processes with poor productivity performance are abandoned and newer forms are exploited. Process improvements may include organizational structures (e.g. core functions and supplier relationships), management systems, work arrangements, manufacturing techniques, and changing market structure. A famous example is the assembly line and the process of mass production that appeared in the decade following commercial introduction of the automobile.
+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 evolution as processes with poor productivity performance are abandoned and newer forms are exploited. Process improvements may include organizational structures (e.g. core functions and supplier relationships), management systems, work arrangements, manufacturing techniques, and changing market structure. A famous example is the assembly line and the process of mass production that appeared in the decade following the commercial introduction of the automobile.
-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 electrification, which saw the highest productivity gains in the early decades after introduction. Many other industries show similar patterns. The pattern was again followed by the computer, information and communications industries in the late 1990s when much of the national productivity gains occurred in these industries.
+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 electrification, which saw the highest productivity gains in the early decades after introduction. Many other industries show similar patterns. The pattern was again followed by the computer, information, and communications industries in the late 1990s when much of the national productivity gains occurred in these industries.
-There is a general understanding of the main determinants or drivers of productivity growth. Certain factors are critical for determining productivity growth. The Office for National Statistics (UK) identifies five drivers that interact to underlie long-term productivity performance: investment, innovation, skills, enterprise and competition.
+There is a general understanding of the main determinants or drivers of productivity growth. Certain factors are critical for determining productivity growth. The Office for National Statistics (UK) identifies five drivers that interact to underlie long-term productivity performance: investment, innovation, skills, enterprise, and competition.
-*Investment is in physical capital — 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 output.
+*Investment is in physical capital — 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 output.
-*Innovation is the successful exploitation of new ideas. New ideas can take the form of new technologies, new products or new corporate structures and ways of working. Speeding up the diffusion of innovations can boost productivity.
+*Innovation is the successful exploitation of new ideas. New ideas can take the form of new technologies, new products, or new corporate structures and ways of working. Speeding up the diffusion of innovations can boost productivity.
-*Skills are defined as the quantity and quality of labor of different types available in an economy. Skills complement physical capital, and are needed to take advantage of investment in new technologies and organizational structures.
+*Skills are defined as the quantity and quality of labor of different types available in an economy. Skills complement physical capital and are needed to take advantage of investment in new technologies and organizational structures.
-*Enterprise 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. Entrepreneurs are able to combine factors of production and new technologies forcing existing firms to adapt or exit the market.
+*Enterprise 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. Entrepreneurs are able to combine factors of production and new technologies forcing existing firms to adapt or exit the market.
 *Competition improves productivity by creating incentives to innovate and ensures that resources are allocated to the most efficient firms. It also forces existing firms to organize work more effectively through imitations of organizational structures and technology.
@@ Line 45: / Line 45: @@
 Increased automation in factories and service industries is one of the culprits for the shift. Also, automation is replacing many jobs that used to require a person, such as secretaries, bank tellers, or bookkeepers. The fastest-growing jobs are now in sectors that require innovation, insights, and reasoning—traits that artificial intelligence and automation are not yet able to mimic. Expectations for the highest amount of job growth are in energy, health, and information security.
-Outsourcing leads to a lower U.S. standard of living as wages equalize. In addition, the U.S. labor force has become less competitive, adding to pressures to accept lower wages.
+Outsourcing leads to a lower U.S. standard of living as wages equalize. In addition, the U.S. labor force has become less competitive, adding to the pressure to accept lower wages.
 U.S. companies are being forced to offer lower wages to U.S. employees if they are to compete against companies in countries with lower living standards. If U.S. companies can't find enough low-wage, skilled workers in the United States, they have to source these jobs overseas or go out of business.
@@ Line 54: / Line 54: @@
 The 2008 financial crisis aggravated this trend. While GDP has continued to increase, it didn't translate to an equal increase in workers' standard of living. Instead, it went to the owners of capital—shareholders and executives. Corporate profits reached an all-time high in 2012—11.8% of GDP, up from 5% in 2000.

← Older revision		Revision as of 21:34, 10 April 2021
Line 21:		Line 21:

	Impact refers to how many people are influenced by your work, or to what degree they are influenced. Endurance refers to how long your work will last (think of the longevity of a sandwich vs. a digital graphic design vs. a classic work of art). Essence refers to the quality and type of what you do; is it easily mimicked, or unique? Is its effect deep and important, or temporary and self-limiting? Volume refers to the quantity of what you produce as defined by your particular work.<ref>What is Productivity [https://stevepavlina.com/blog/2005/10/what-is-productivity/ Steve Pavlina]</ref>		Impact refers to how many people are influenced by your work, or to what degree they are influenced. Endurance refers to how long your work will last (think of the longevity of a sandwich vs. a digital graphic design vs. a classic work of art). Essence refers to the quality and type of what you do; is it easily mimicked, or unique? Is its effect deep and important, or temporary and self-limiting? Volume refers to the quantity of what you produce as defined by your particular work.<ref>What is Productivity [https://stevepavlina.com/blog/2005/10/what-is-productivity/ Steve Pavlina]</ref>
		+
		+
		+	'''Productivity Drivers<ref>Drivers of productivity growth [https://en.wikipedia.org/wiki/Productivity Wikipedia]</ref>'''<br />
		+	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 evolution as processes with poor productivity performance are abandoned and newer forms are exploited. Process improvements may include organizational structures (e.g. core functions and supplier relationships), management systems, work arrangements, manufacturing techniques, and changing market structure. A famous example is the assembly line and the process of mass production that appeared in the decade following commercial introduction of the automobile.
		+
		+	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 electrification, which saw the highest productivity gains in the early decades after introduction. Many other industries show similar patterns. The pattern was again followed by the computer, information and communications industries in the late 1990s when much of the national productivity gains occurred in these industries.
		+
		+	There is a general understanding of the main determinants or drivers of productivity growth. Certain factors are critical for determining productivity growth. The Office for National Statistics (UK) identifies five drivers that interact to underlie long-term productivity performance: investment, innovation, skills, enterprise and competition.
		+	*Investment is in physical capital — 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 output.
		+	*Innovation is the successful exploitation of new ideas. New ideas can take the form of new technologies, new products or new corporate structures and ways of working. Speeding up the diffusion of innovations can boost productivity.
		+	*Skills are defined as the quantity and quality of labor of different types available in an economy. Skills complement physical capital, and are needed to take advantage of investment in new technologies and organizational structures.
		+	*Enterprise 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. Entrepreneurs are able to combine factors of production and new technologies forcing existing firms to adapt or exit the market.
		+	*Competition improves productivity by creating incentives to innovate and ensures that resources are allocated to the most efficient firms. It also forces existing firms to organize work more effectively through imitations of organizational structures and technology.
		+
		+
		+	'''Productivity's Effect on Job Growth and Income<ref>Productivity as it Relates to Job Growth and Income [https://www.thebalance.com/u-s-productivity-what-is-it-how-to-calculate-it-3306227 the balance]</ref>''' <br />
		+
		+	''Productivity and Job Growth''<br />
		+	Higher productivity no longer leads to more jobs, as it did until 2000.4 Job growth has been stagnant; however, the Bureau of Labor Statistics projects that employment will grow through 2029 by 6 million jobs, which reflects an annual rate of growth of 0.4%.5 While any amount of job growth is good, the stagnant trend in growth stems from a transition of jobs to new industries. Newer jobs are expected to focus on areas that will require secondary education, technical training, and technical skills.
		+
		+	The International Federation of Robotics estimates there are between 1.5 and 1.75 million industrial robots in operation. By 2025, it predicts as many as 6 million. Most are in the auto and electronics industries.6 Researchers from M.I.T. estimated that every robot costs 3.3 jobs.7
		+
		+	Increased automation in factories and service industries is one of the culprits for the shift. Also, automation is replacing many jobs that used to require a person, such as secretaries, bank tellers, or bookkeepers. The fastest-growing jobs are now in sectors that require innovation, insights, and reasoning—traits that artificial intelligence and automation are not yet able to mimic. Expectations for the highest amount of job growth are in energy, health, and information security.
		+
		+	Outsourcing leads to a lower U.S. standard of living as wages equalize. In addition, the U.S. labor force has become less competitive, adding to pressures to accept lower wages.
		+
		+	U.S. companies are being forced to offer lower wages to U.S. employees if they are to compete against companies in countries with lower living standards. If U.S. companies can't find enough low-wage, skilled workers in the United States, they have to source these jobs overseas or go out of business.
		+
		+
		+	''Productivity and Income''<br />
		+	This discrepancy in productivity has slowed the rising standard of living for most Americans. Companies not in the top 5% can't afford to pay their workers more. Salaries at tech behemoths like Google, Amazon, and Facebook have outpaced average wages.
		+
		+	The 2008 financial crisis aggravated this trend. While GDP has continued to increase, it didn't translate to an equal increase in workers' standard of living. Instead, it went to the owners of capital—shareholders and executives. Corporate profits reached an all-time high in 2012—11.8% of GDP, up from 5% in 2000.

← Older revision		Revision as of 21:25, 10 April 2021
Line 1:		Line 1:
−	'''~~Content Coming Soon~~'''	+	'''Productivity''', in economics, measures output per unit of input, such as labor, [[Capital\|capital]] or any other resource – and is typically calculated for the economy as a whole, as a ratio of [[Gross Domestic Product\|gross domestic product (GDP)]] to hours worked. Labor productivity may be further broken down by sector to examine trends in labor growth, wage levels and technological improvement. Corporate profits and shareholder returns are directly linked to productivity growth. At the corporate level, where productivity is a measure of the [[Organizational Efficiency\|efficiency of a company's production process]], it is calculated by measuring the number of units produced relative to [[Employee\|employee]] labor hours or by measuring a company's net sales relative to employee labor hours.<ref>What Does Productivity Mean? [https://www.investopedia.com/terms/p/productivity.asp Investopedia]</ref>
		+
		+	Steve Pavlina defines productivity as:
		+
		+	''Productivity = Value / Time (productivity equals value divided by time)''<br />
		+
		+	By this definition there are two primary ways of increasing productivity:
		+	1) Increase the value created
		+	2) Decrease the time required to create that value
		+
		+	Pavlina goes on to talk about how we can understand and measure value:
		+
		+	Value is a quality you must define for yourself. Hence, any definition of productivity is relative to the definition of value.
		+	Pavlina defines value as a product:
		+
		+	''Value = Impact x Endurance x Essence x Volume''
		+
		+	And therefore:
		+
		+	''Productivity = Impact x Endurance x Essence x Volume / Time''
		+
		+	Impact refers to how many people are influenced by your work, or to what degree they are influenced. Endurance refers to how long your work will last (think of the longevity of a sandwich vs. a digital graphic design vs. a classic work of art). Essence refers to the quality and type of what you do; is it easily mimicked, or unique? Is its effect deep and important, or temporary and self-limiting? Volume refers to the quantity of what you produce as defined by your particular work.<ref>What is Productivity [https://stevepavlina.com/blog/2005/10/what-is-productivity/ Steve Pavlina]</ref>