A level Business Revision - Labour Productivity

This A level Business revision tutorial examines the Labour Productivity calculation, which may be either on the HR or Operations Management section of the specification, depending on the qualification you are studying.

Labour Productivity is a topic on the new A level Business syllabus for AQA, Edexcel and OCR.

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DISCLAIMER: The equations for HR and Ops Management ratios can vary between different exam boards, so be sure to research the exact formula you will be required to use.

[gracefrench]

ignore me! just writing a chain of analysis from what you said (feel free to copy and paste)

labour productivity -> total number of output/ total number of workers -> 'x' units per worker
-> identify labour productivity accross departments/ previous years/months etc./ with other firms



-> if a firm has identified that a competitor has a high labour productivity -> producing the same quantity of output but with fewer workers -> your variable costs will be larger -> issue -> raise prices -> less competitive (lower level of demand for elastic products) -> IDENTIFYING THIS -> opportunity to develop new business strategies to increase productivity
-> i.e. make workers redundant and introduce time and motion management -> make managers more firm with their subordinates, to prevent laziness -> maximise productivity


labour productivity -> doesn't factor in how much we are paying workers -> can't be used to calculate the cost of labour -> even if a company's labour productivity is lower (lower units of product produced per worker) -> it won't become an issue if the company is paying their workforce lower wages, than other firms (with a higher labour productivity)

[LearningForum]

Love you sir you have very well explained thanks and lot of love for the lecture 👍👍

[spartanhead]

Thanks so much for this video I passed my business test from my quarter. Thank you so much! :D

[sonalpunchihewa]

Can u please do a video on the design mix please

[kryss]

Thank you SOOO MUCH for all your videos which explain everything better than any book! 😙 Due to the upcoming exams, I would also be very pleased if you could explain the purpose and effects of Boston Matrix and Market Mapping as I simply don't know how to evaluate big questions about them 😥

[ZimeEdits]

cant wait to watch this and make more notes!

[nickthorne]

Can you do a video on paper 3 please and for like questions involving case studies

[albertfletcher]

Hi can u start and put your vids in 4K plz cause this would be outstanding if you did

[rizwanamin]

Hey thank you for your videos can you make further videos for chapters such as product portfolio analysis lean production methods marketing plan etc before this years Alevels GCSEs

[GeorgeBranch]

in your desc are you able to like state what paper this would be in and what year (year 1 or year 2)

[gemmahill]

Hi Guys! Taking the 2017 As paper tomorrow (AQA) anyone remember whats in it ?

[dumisanitapiwanashe]

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