Memorial Hospital

Productivity               

Higher productivity relative to competitors is very important for a nation because it provides the nation with a competitive advantage in the marketplace. Productivity increases add value to the economy while controlling inflation. In addition, higher productivity provides the basis for a sustainable long-term growth in the economy. It allows companies to undercut competitors’ prices to improve their market share, or realize higher profit margin at the same price level. Relative higher productivity also makes it more difficult for foreign companies to compete (Stevenson, 2011).

     According to Stevenson (2011), service jobs have lower productivity than their manufacturing counterparts because service productivity is very difficult to measure and consequently, difficult to improve. In many cases, service jobs include intellectual activities and a high degree of variability, which makes productivity improvements difficult to achieve. Manufacturing jobs, on the other hand, lend themselves to productivity improvements mainly because they are able to utilize computer-based technology such as robotics to increase worker productivity.

     Higher productivity allows companies to undercut competitors’ prices to improve their market share, or realize higher profit margin at the same price level. A higher productivity related to their competitor’s gives them a competitive advantage in the market place.   Relative higher productivity also makes it more difficult for foreign companies to enter a new market because it is difficult for them to compete against companies that have relatively higher productivity (Stevenson, 2011).

     Furthermore, it was stated by Light and McGee (Winter, 2015) that employers are learning how important it is to have skilled employees for certain job when it comes to productivity. The bottom lines depend on productivity and if productivity is high, money is made. So, it is very important to have employee’s be skilled in the area of productivity. Training can help, but employees’ need to entire the job market with some type of skill so that training will not be an issue that takes up a lot of time. In order to keep the stockholders pleased with management, all managers must focus on the bottom line when it comes to productivity.