Deborah Verba Tipdas, Create Module 2.

1.In the past there was concern about a “productivity paradox” related to IT services. More
recently, there have been few references to this phenomenon. Using the Internet, explain the term
“productivity paradox.” Why do you think that the discussion of that topic has faded?
- There is a discrepancy between the investment in IT growth and the national
level of productivity and productive output. The term “productivity paradox”
became popularized after being used in the title of a 1993 paper by MIT’s Erik
Brynjolfsson. In his paper, Brynjolfsson argued that while there doesn’t seem to
be a direct, measurable correlation between improvements in IT and
improvements in output, this might be more of a reflection on how productive
output is measured and tracked.
https://www.lifehack.org/articles/productivity/the-productivity-paradox-what-is-it-and-how-can-
we-move-beyond-it.html

2. While it is true that increases in efficiency generate productivity increases, it is possible to get
caught in an “efficiency improvement trap.” Explain what this means.
Efficiency means finding the best way to achieve a given goal. Efficiency is related to
the way things are done. Productivity is expressed as the ratio of output to input. An
increase in efficiency means an increase in productivity. But organizations trying to
increase their efficiency should be careful enough to avoid being caught up in an
efficiency improvement trap.
3. A catering company prepared and served 300 meals at an anniversary celebration last week
using eight workers. The week before, six workers prepared and served 240 meals at a wedding
reception.
a. For which event was the labor productivity higher? Explain.
In the catering company which is celebrating anniversary last week, they used eight workers and
the result is they served 300 meals the more workers the merrier. The merrier the worker work
the faster the work and the faster the work the better.
b. What are some possible reasons for the productivity differences?
The possible reasons for the productivity difference is, the Catering used many workers
than in the wedding reception preparation that’s why the other group had many meals
because they are merrier and the other have less because they might easily get tired.
productivity may increase after a layoff, because the workload remains the same but fewer
workers do the work—although they have to work harder and longer to do it. However, as
time goes by, the remaining workers may experience an increased risk of burnout, and they
may fear additional job cuts. The most capable workers may decide to leave.