Business – 4.1 The nature of operations – Efficiency, effectiveness, productivity and sustainability | e-Consult
4.1 The nature of operations – Efficiency, effectiveness, productivity and sustainability (1 questions)
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Labour productivity is calculated as Units Produced ÷ Hours Worked.
- January: 12,000 ÷ 3,000 = 4 units per hour
- February: 13,500 ÷ 3,200 ≈ 4.22 units per hour
The productivity increased from 4.00 to about 4.22 units per hour, representing a rise of roughly 5.5%. This indicates that the plant became more efficient in February, producing more output for each hour of labour.