Question

case 1: facebook firms in india are losing productivity because of facebook office staff are spending too lon the social networking site. according to the associated chambers of commerce and indust (assocham) employees use orkut facebook, myspace, and linkedin for romancing and purposes. on average, employees spend an hour a day on sites ke facebook. this reduce productivity by 125% nearly half of office employees accessed facebook during work time some 83% saw nothing wrong in surfing at work during office hours. in september 2009 portsmouth city council in england banned staff from accessing facebook on its computer it was discovered that they spent, on average, 400 hours on the site every month questions: 1. what is meant by productivity? 2. analyse the impact on a full in productivity on costs using graphs to illustrate 3. analyse the possible consequences for businesses in india of banning access to fac and other social networking sites 4. do you think access should be denied? ​

Answer 1

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Firms in India are losing productivity because of Facebook. Office staff are spending too long on the social networking site. According to The Associated Chambers of Commerce and Industry (Assocham) employees use Orkut, Facebook, Myspace, and Linkedin for "romancing" and other purposes. On average, employees spend an hour a day on sites like Facebook. This reduces productivity by 12.5%. Nearly half of office employees accessed Facebook during work time. Some 83% saw nothing wrong in surfing at work during office hours. In September 2009 Portsmouth City Council in England banned staff from accessing Facebook on its computers when it was discovered that they spent, on average, 400 hours on the site every month.

Question 1. What is meant by productivity?

2. Analyze the impact on a fall in productivity on costs.

3. Analyze the possible consequences for businesses in India of banning access to Facebook and other social networking sites.

4. Do you think access should be denied?

Answer 2

Answer:

1. Productivity helps us gauge how effectively a company's production system operates.
2. Labour Productivity and profit of a firm is interconnected. The labour and machinery required for the process of production require a certain amount of capital investment, which can be variable or fixed in nature. Together, these costs give us the total cost. Now, when these factors of production produce an insufficient amount or low quality of goods, the profit incurred from these goods is lower compared to the total cost, thereby reducing the profit margin for the company.
3. Prohibiting access to social media websites could have negative effects on businesses in India by causing them to lose out on potential consumers. A lot of people also use social media websites to look for jobs so banning social media websites can really cost firms not only their business but also cut down their access to potential labour.
4. Access to social media websites should not be denied. Instead, employees found browsing such websites during work hours should be penalised for being lackadaisical.

Explanation:

• Productivity helps us gauge how effectively a company's production system operates. It is the primary driver of economic expansion and competitiveness, and it is quantified in terms of an employee's output over a given time period.
• Labour Productivity and profit of a firm is interconnected. The labour and machinery required for the process of production require a certain amount of capital investment, which can be variable or fixed in nature. Together, these costs give us the total cost. Now, when these factors of production produce an insufficient amount or low quality of goods, the profit incurred from these goods is lower compared to the total cost, thereby reducing the profit margin for the company.
• Prohibiting access to social media websites could have negative effects on businesses in India by causing them to lose out on potential consumers. A lot of people also use social media websites to look for jobs so banning social media websites can really cost firms not only their business but also cut down their access to potential labour.
• Therefore, access to social media websites should not be denied. Instead, employees found browsing such websites during work hours should be penalised for being lackadaisical.

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