Concept explainers
U.S. productivity has improved noticeably in recent years, averaging 4%–5% per year, while
the U.S. economy grew by only 3.5%. The gain in productivity was due, in large part, to the use of
technology, in addition to longer working hours by those who are lucky enough to have jobs.
According to the Economic Policy Institute, the average U.S. worker has added 199 hours to a year
since 1973. The United States achieved per hour productivity of $32, compared with $38 for
Norway, and $34 for Belgium. In other words, U.S. workers are simply working longer, not
necessarily better, or smarter. They take less annual vacation time (only 10.2 days, on average),
compared with 30 days in France and in Germany.
At the same time, a large number of U.S. companies are aggressively outsourcing work to low-wage
countries, such as China, India, the Philippines, and Mexico. A 2003 study released by the University
of California at Berkeley indicates that as many as 14 million U.S. service jobs are in danger of being
shipped overseas.
Who is responsible for this peculiar position that U.S. workers are being forced into? How can U.S.
companies meet the new challenge of improving the quality of life for their workers, without
sacrificing the companies’ relative competitiveness in the marketplace?
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- 27 Country Labor productivity as in $/hours worked by labor force Norway $90 Belgium $55 If the GDP of Norway is $360 billion and that of Belgium is $236 billion; Calculate the number of labor hours worked for a year in Norway . YOU SHOULD SHOW THE FORMULA AND ALL CALCULATION AS WELL. * S Enter your answerarrow_forwardThe service sector provides a special challenge to the accurate measurement of productivity and productivity improvement. The traditional analytical framework of economic theory is based primarily on goods-producing activities. Consequently, most published economic data relate to goods production. But the data do indicate that, as our contemporary service economy has increased in size, we have had slower growth in productivity. What are the measurement problems that occur when one attempts to measure productivityarrow_forwardUse the following to answer questions 21 and 22. A shoe factory owner plans to open two new shoe factories in a few months. These factories will be opening in the same city. The owner wants to find out whether a biweekly pay cycle increases productivity compared to a weekly pay cycle. So the factory owner decides he will open one of the two factories using a weekly pay cycle, and the other using a biweekly pay cycle, then he will compare productivity levels between the two factories 6 months after they start production. In the above example, what is the independent variable? a.) Location of the factories. b.) Productivity levels after 6 months. c.) Pay cycle. d.) There is no independent variable. In the above example, what is the dependent variable? a.) Location of the factories. b.) Productivity levels after 6 months. c.) Pay cycle. d.) There is no dependent variable.arrow_forward
- A U.S. company has two manufacturing plants, one in Michigan and one in Toluca, Mexico. Both produce the same item, each for sale in their respective countries. However, their productivity figures are quite different. The analyst thinks this is because the Michigan plant uses more automoted equipment for processing while the other plant uses a higher percentage of labor. Explain how that factor can cause productivity figures to be misleading. Is there another way to compare the two plants that would be more meaningful?arrow_forwardFor the situation below, identify the specific environmental factor and then describe one impact on human resources management because of this factor. Factors are in the picture Below 4. Due to a recent increase in demand for home gym equipment that the organization produces, the company is forced to hire 10% more workforce and increase the number of production shifts. Factor: _____________________________________________ Impact on HRM:arrow_forward
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