Question

Q3

Draw up an example of a model to explain the productivity growth. [3 Marks]

PLEASE DO NOT WRITE THE ANSWER - USE WORD FORMAT. NO PLAGIARISM PLEASE.

Answer 1

Productivity literally refers to the amount of output produced by an organization compared to what has been consumed in producing that specified quantity.
But today the scope of productivity has increased and thus it covers the efficiency aspect and refers to extend to which the organization is able to produce and maximize its output and produce goods in the most effective and economical manner.
In ecinomics it signifies the ratio of output to that of the input or can also be said as the aggregate output produced.

A production model is a model which helps to evaluate and analyse the growth in the productivity of an organization. It measures the holds a critical evaluation of the improvements in the ratio of output to that of the input so as to reflect on the efficiency of organisation in producing goods.
It is a quantitative method.

An example of a productivity method:

PPPV is a productivity measurement method.
PPPV is an acronym for the following equation:

Profitability: productivity, price, and volume.
The model expresses the profitability as a function of these three important variables among which productivity is an integral variable.
This model though assesses the profitibity but puts a significant stress on productivity by comparing the ouput to that of the input.

This model is used for measuring productivity growth because the major characteristic of an effective productivity measurement is that it should express and explain the production function by showing how output is better than inputs or how output is deviated from that of the input. Here the model of PPPV involves describing of a production function so as to know the profitability and growth. The model is able to express the function of productivity. A change in one unit whether it is a marginal addition expresses the change in the whole income distribution and alters production function with a significant level.
The model shows the ratio of output to input reflecting on the amount of input (in the form of raw material, human resources, equipments, parts, consumption of energy etc) has been consumed in producing an amount of output (in the form of products) which shows how efficiently the business is utilizing its resources and the efficiency with which the operation are being conducted.

The productivity growth model involves comparison through which it also helps to find out the differences between the past and the future trends by undertaking a critical study.
It shows how much improvements have been made in the form of increased productivity and shows the potential of adding a margin of product to the same amount of input. It also helps to find the deviations.
Productivity function in the PPPV acts as function of output to input , which helps to balance the output with that of the input in terms of value and cost.
It helps business to yield better benefits through determining causes of waste and underutilization.

Dear student please comment if there are any confusions.

Hope i explained well, i kept it theoretical so that you might understand well. Wishing you a good luck and God bless.

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