¶ … Law of Marginal Productivity comes to Macy's
In theory, the more demand there is for a good or service, the more a producer wishes to provide this good, and that producing in bulk lowers costs. Even when consumer demand is down, a supplier can also produce more, in the hopes of defraying a decrease in price with a bulk increase in sales. However, certain costs of production are fixed. In other words, the Law of Marginal Productivity holds constant. This economic law states, namely that "when the technology of production and some of the inputs are held constant and the quantity of a variable input increases continually, the marginal productivity of the variable input will eventually decline." (King, 2004)
This law is perhaps most obviously evidenced in agriculture or conventional factory production, where even if there is an increased demand for grapes, putting more and more workers onto the field to pick more of the grapes will eventually bottom out in value -- each additional worker can only pick so many more of the desired fruits, or each worker in a factory can only work so much harder on a crowded assembly line, before the increase in wages does not pay for the increase in production and sales. Such "inputs that are held steady are called the fixed inputs." (King, 2004) The costs of maintaining the depreciating inputs of land and capital are fixed costs for fixed inputs, as are the price of worker wages and required benefits, unlike the actual number of workers involved in production, which a factory owner, for example, can alter at his or her discretion.
Another way to express the law of marginal productivity is that,...
The oldest method of measuring nursing productivity is hours spent upon a patient per day (Huber 2000: 703). However, in the modern era, a variety of productivity measures have been employed to assess employee productivity and efficacy. Patient improvement or outcomes measurement is sometimes deployed, although this is obviously an imperfect measure, given that many factors can impact patient success rate. Measuring improvement against overall (national) general benchmarks of patient
Productivity After quarters increasing levels production, CEO Canadian Fabrication & Design upset learn, time expansion, productivity newly hired sheet metal workers declined worker hired. Believing workers lazy inefficiently supervised (possibly), CEO instructed shop foreman "crack" workers bring productivity levels. Q1.Production The apparent downturn of productivity on the part of workers has nothing to do with worker laziness and everything to do with the law of marginal returns. For every additional unit manufactured
Productivity in the Workplace An average employee lives around 10,000 days of his lifetime working. When one looks at it this way, it is rational to try and make this time at work as gratifying and rewarding as one can, so that people can be saved from burning out in advance. As a matter of fact, it is proven by research that the easiest and most effective way to uplift morale,
The manager of a manufacturing organization could offer the rewards when the amount of items produced increases by a constant number. Say for instance a worker produces 5 parts a day; if he produces 6 during one day, he will not receive a rewards, but if he produces 6 parts every day, throughout a whole month, he would receive a reward. This way, the objective of increasing the productivity would
At present, the meter readers believe that all advances in technology have not benefitted them, in terms of making their work easier or improving their wages or benefits. All the new innovations have done have sufficed to make it easier for management to 'speed up' the work requirements, with no added benefit in terms of wages or ease of work. The leadership of the union is in a state of
The employer, according to the rules laid out by the IMSS, is expected to contribute at least a minimum amount according to the risk factors involved in the job into the fund, that is, a sum of 17.42% of each worker's wage. Basic health care, medical facilities, accident care, as well as care for illnesses are all taken care of under the social security fund. In addition, the employer is
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