Regoris, Roderica A.

WHY PRODUCTIVITY MATTERS

Productivity is easily been overlook but it plays very important role a nation’s
economy. High productivity is a great indicator of standard of living. When a country
becomes more service-based, if some of the manufacturing jobs are replaced by lower-
productivity service jobs,that makes it more difficult to support a high standard of living.
Productivity gains offset inflationary pressures to wage increases, result to lower costs
as productivity increases enabling to generate higher profits to pay wage increases in
the sector.Productivity levels matters not onlt into the companies and industries but also
to the competitive advantage in the marketplace. In essence, productivity measures is
useful on different fields and reflects the performance of the entire industry and country.

1.Why is high productivity important for a nation?

* Productivity to simply put is the output of workers in a definite timeline. High
productivity is important for a nation because economic growth rises when the nation’s
workforce is more productive than other rival or countries. Productivity is the pillar of of
economic growth so when it slows down it lessens the competitive position of the
economy in the global marketplace. On the other hand, it does not only affect the
economic standing but it also lead to increase of wages, higher profits, lower unit costs,
productivity improvements, improved competitiveness and a great determinant of living
standards of a nation. Thus, productivity level must not be overlooked because it is
more than a national figures.

2. Why do you suppose that service jobs have lower productivity than manufacturing
jobs?
* Service jobs have lower productivity than manufacturing jobs because service
environments are often less structured than in manufacturing sectors. Though service
sectors have greatly shared a big part in the economy, service performance can be
easily affected by emotions, distrations and other reason which are beyond the
managers control. Such reasons, it is more difficult to control productivity along quality
and costs. In other words, goods-producing businesses such as manufacturings can
more efficiently used its resources while service sector businesses cannot easily
decrease its assets- the employees without affecting its productivity while maximizing
efficiency at the same time.

3. How can a company gain a competitive advantage by having higher productivity than
its competitors have?
* For a company to gain a competitive advantage than its competitors, the company
must properly identify its customer’s needs or wants while having higher productivity
level than others. It is also important to identify and understand the marketing mix’s 4P’s
(People,Price,Place, Product) in any decision to make and not only merely focusing on
producing more and more than others. It is always helpful to include customers’
feedbacks for continuous innovation of the products or services.