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AS Nature of Operations :explode: (Resources : (Labour, Capital, Land,…
AS Nature of Operations :explode:
Adding value on :
Efficiency of managed inputs
Consumers convinced to pay more than costs of inputs
The product design
Resources :
Labour
Capital
Land
Natural resources
Raise productivity levels
Purchase technologically advanced equipment
More efficient management
Improve worker motivation
Improve staff training + increase skills
Labour productivity
total output in a given time period/total workers employed
Is raising productivity the answer?
Greater effort from staff could lead to higher wage demands
Workers + unions fearful of dramatic improvements
Does not guarantee success
Quality management determines overall policy success
Definitions
Effectiveness
Meeting the objectives of enterprise by using inputs productively to meet customer needs
Labour intensive
Involves high level of input compared with capital equipment
Efficiency
Producing output at the highest ratio of output to input
Capital intensive
Involves high quantity of capital equipment compared with labour input