¶ … multifactor productivity. The basic concept is that MFP calculates output over all inputs. In the example given, the inputs are labor and capital. The MFP formula is used to measure the change in productivity that results from specific changes in the production process. In addition, the importance of firms studying productivity changes is explained. Firms need to understand the implications of changing different inputs, in order that they may seek the path of profit maximization. Sensitivity analysis to different changes can help with that process. In addition, the MFP concept is useful for firms seeking to maximize other variables besides profit. The same principles behind MFP can be applied broadly in business to ensure that the best decisions are being made and that productivity is being maximized.
The basic principle is that MFP is based on the outputs per a combination of labor and capital (Jaxworks, 2010). This is in contrast to the standard understanding of productivity that only relates output to labor. In the modern world, labor is just one input, and capital can be a considerable input as well. This is reflected in the increasing use of multifactor productivity in organizations. Therefore:
500 / ($800 + $3,400) = 0.119
In this equation, the $800 is the cost of five workers for sixteen hours multiplied by $10/hr. The $3,400 represents the capital outlay. After the changes have been made, the MFP is:
600 / ($800 + $3,600) = 0.136
This illustrates that there was an increase in multifactor productivity as a result of the changes that were made to the training and equipment. The productivity measure here has changed because the output has changed significantly (+20%) while the inputs have not changed as much (+5.9%). This is a positive outcome for the organization, because it has increased its inputs by...
Applying Leadership Theory to Leadership Practice In this paper the writer researches and writes a literature review on a Applying Leadership Theory to Leadership Practice. The research paper is a comprehensive thematic review of the scholarly literature related to the topic. The leadership theories to focus on are: Path-Goal Theory; Leader-Member Exchange (LMX) Theory; Psychodynamic Approach Theory; outcome and situational leadership; Leadership focused on effectiveness and productivity; Leadership and Body language;
According to Bales, 1999, the concept behind SYMLOG is that "every act of behavior takes place in a larger context, that it is a part of an interactive field of influences." Further, "the approach assumes that one needs to understand the larger context -- person, interpersonal, group, and external situation -- in order to understand the patterns of behavior and to influence them successfully." With SYMLOG, measurement procedures are
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