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Another observation pronounces that the reallocation of resources to more productive activities is faster when the economy grows rapidly than when it slows down. Pro-cyclical exceptions For 2009, productivity growth was expected to slow down further in many countries. However, there appeared to be some exceptions to the pro-cyclicality of labor productivity. Economic growth Labor productivity growth and overall economic growth are definitely relevant to one another. By definition, the sum of growth of labor hours plus labor productivity growth is the output growth. (Higher labor productivity growth means higher output growth.) Longer time periods make this relationship clear. Efficiency Efficiency as a concept assumes an ability to identify a change in the productivity ratio. Managers want to compare with their competitors and assess the possible scope on productivity improvement. Efficiency gathers this productivity factor into account and compares it to some known potential. Those who are just starting with being productive, it is best to keep track of how you are doing so you will know where are the areas that you should improve on and what are the things that you should continue doing. 5. Share the "productivity" virus. Many people are inspired to continue the good things that they are doing if others around them are willing to follow. Labor quality This factor captures the increase and the quality of labor inputs from the ever-evolving and changing mix of workers. As the workforce evolves, workers with different skills are employed at different rates. This change in composition directly affects how much output can be produced from a given amount of worker hours. There were two reasons forwarded as to why business productivity may be higher as a consequence of decreased hours in the work place. The first was the employees perception that they have lesser time available to them to complete the same amount of work as they did before. It moved them to put extra efforts to get everything done, and worked harder than they had in the past.
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