productivity ultimately depends on both
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Answer:
Productivity ultimately depends on both efficiency and effectiveness.
Explanation:
- When managers can increase the firm's productivity, they are called good managers.
- It can happen in two ways
Efficiency means completing the task or working with economies of scale.
Effectiveness means completing the task on time without any delay or inefficiency.
- For example - Suppose an organisation can produce 500 units a day by working for 10 hours a day. But suppose the organisation has an order of 600 units and the working hours for labour is 8 hours. The management of the firm will only be effective as well as efficient when they full fill both situations. And that is when the firm will achieve its productivity.
- Hence, Productivity ultimately depends on both efficiency and effectiveness.
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