Problems inwards measuring productivity
Following icon lists primary difficulties or problems inwards measuring blogspot.com//search?q=what-is-productivity-definition-meaning">productivity.
Image credits © Prof. Mudit Katyani.
Important challenges or difficulties inwards measuring productivity:
- Difficulty inwards measuring output,
- Difficulty inwards measuring inputs,
- Factorial productivity,
- Changing prices of inputs as well as outputs,
- Intangible output of service sector,
- Comparison of productivity of dissimilar periods,
- Difficulty inwards measuring man-hours, and
- Changes inwards technology.
Now let's verbalize over these constraints inwards measuring productivity.
- Difficulty inwards measuring output : The output of an manufacture may endure measured inwards terms of book (units) or value (dollars). It is really hard to combine both these factors.
- If the output is homogeneous (similar), as well as therefore the productivity tin endure measured inwards terms of volume.
- If the output is non homogeneous, as well as therefore the productivity tin endure measured inwards terms of value.
- However, if roughly units are homogeneous as well as other non-homogeneous, as well as therefore the manufacture volition facial expression upward difficulties inwards measuring productivity.
- Difficulty inwards measuring inputs : Most industries arrive at non convey proper records of the inputs of land, labor, upper-case missive of the alphabet as well as machines. Even if such records are available, it is really hard to calculate the exact publish of adult man hours worked i.e. the input of labor.
- Factorial productivity :
- Factorial Productivity agency to calculate the productivity of dissimilar factors of production separately.
- Some administration experts country that a unmarried ingredient of production cannot arrive at anything past times itself. Therefore, it has no productivity. Influenza A virus subtype H5N1 unmarried ingredient of production has productivity alone if it is combined alongside other factors of production.
- Therefore, according to these administration experts, the concept of factorial productivity is meaningless.
- Changing conditions : There is a continuous alter inwards the toll of inputs as well as outputs, character of raw-materials, machines as well as tools, character of labor, etc. All this creates difficulties inwards measuring productivity.
- Service sector : It is really hard to mensurate the productivity of service sectors similar Banking, Insurance, Education, etc. This is because the output of the service sector is intangible.
- Different periods : It is really hard to compare the productivity of ii dissimilar periods. For example, comparing of productivity during a country of war menstruum alongside a peace menstruum is meaningless.
- Difficulty inwards measuring man-hours : It is hard to notice out the exact publish of productive man-hours. This is because reward paid to the employees also includes the cost of idle time.
- Technological change : Changes inwards engineering scientific discipline volition crusade a alter inwards the nature as well as character of output. Therefore, mensuration of productivity volition teach difficult.
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