Question

why productivity important for a nation?

why do you suppose that service jobs have lower productivity than manufacturing jobs?

How can a company gain a competitive advantage by having higher productivity than its competitors have?

Answer 1

It is important to understand the term ‘productivity’ before going to analyze the importance of productivity for the nation. Productivity can be defined as the output measurement by the workers per hour in a particular setting. It also ensures the total workforce of a factory for any production system.

Thus we can say that productivity helps the nation through continuous economic growth. Productivity indicates the entire workforce of the nation. When productivity remains stagnant it starts to slow the economy after a certain period of time. Lower productivity also lessens the competitive position of the nation in the global market. Digitalization has influenced productivity in a positive manner as it lowers the production time. In the global statistics, countries with lower productivity are termed as undeveloped or still developing country and the countries with a higher rate of productivity have ruled the world in this globalization era.

In the manufacturing job company already knows what the product is to be made, thus they simply produce it without wasting any time for research and development processes. Whereas, in the service, the job company needs to investigate the problems which are associated with the organizational operations and invest time for searching the solutions to those problems that are very much time consuming and lowering the rate of productivity. Other important benefits in a manufacturing company are the use of scale economies that helps to lower the production cost. Whereas, the use of conventional processes in the service job companies slower the production rate and they are unable to compete with the global economy.

A company can gain high productivity using three simple steps that are mentioned below:

• First, the company needs to review its core strengths in terms of production and quality of services.

• Cost reduction is one of the major strategy is to be adopted by the company as a decrease in manufacturing cost helps to increase the rate of productivity.

• A company should focus on the internal and external services because a good service indicates the lowering of the time which is inversely proportional to productivity.