Explain the importance of human resources to productivity.

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Human resources are very important to productivity, though their importance is greater in some industries than in others.

In all types of firms, human resources are important to productivity.  Human resources are the people who work in the firms, their willingness to work, and the skills and knowledge that they have.  If a firm does not have good human resources, it cannot be productive.  Workers who lack skills or motivation will not work at a high level and will therefore not be productive.

This connection is particularly true in industries that produce less tangible goods.  If an architectural firm, for example, has low-quality human resources, it will not be productive.  Its architects will take a long time to produce plans for buildings and those plans might not be very good.  This is in contrast to industries that are more mechanized because those industries do not depend as much on their workers.

All industries, however, rely on a good workforce to some degree.  If workers lack the skills, knowledge, and motivation that are needed, they will not work well and they will be unproductive.

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