GMS 401 Lecture Notes - Lecture 2: Workforce Productivity, Competitive Advantage, Cost Leadership

• School: Ryerson University
• Department: Global Management Studies
• Course: GMS 401
• Professor: Wally Whistance- Smith

Document Summary

A cold hard fact: better quality, higher productivity, lower costs, and the ability to respond quickly to (cid:272)usto(cid:373)er (cid:374)eeds are (cid:373)ore i(cid:373)porta(cid:374)t tha(cid:374) e(cid:448)er a(cid:374)d the (cid:271)ar is getti(cid:374)g higher. How effectively an organization meets the wants and needs of customers relative to others that offer similar goods or services. Organizations compete through some combination of their marketing and operations functions. Productivity: the ratio of outputs (goods and services) divided by one or more inputs (such as labour, capital, or management), efficiency means doing the job well with a minimum of resources and waste. Some interesting numbers: labour, capital, and management. Labour, which contributes about 10% of the annual increase. Capital, which contributes about 38% of the annual increase. Management, which contributes about 52% of the annual increase. Why productivity matters: high productivity is linked to higher standards of living.