Why is productivity essential in a competitive economy? To what purpose can it be put to use in organisation?
This is a TYBAF university question carring 8 mks. Plz ans this question as soon as possible.
Productivity is essential in every type of economy, and not just competitive economy. The main impact of competitiveness is that tougher the competition, harder it will be for less productive organization so make profit, or even to survive.
Productivity enables economies to get more value out of the limited resources available to them. There is no economy with unlimited resources. As a matter of fact, there are good chances of economies running out of vital resources like petroleum crude oil within foreseeable future - say in about 50 years.
Like economies, companies also limited resources. Frequentlu companies ar able to auguement their resources more easily than it is possible for complete economies, but then thay have to pay a price for these resources.
Higher productivity helps organization to achieve their objectives more effectively and economically. By increasing their productivity, they can produce more with the same quantities of resources, or reduce the cost of resources for same out put, or a combination of both.
I would say there is no limit to the extent we can put productivity to use in organization.