Efficiency (HR)
Productivity of employees measured by: output per hour worked, cost per unit produced, turnaround time.
Formula
Labour Productivity = Output ÷ Number of Employees
Real World
Toyota's production system uses lean manufacturing techniques and continuous staff training to maximise output per worker, making its factories among the most efficient in the automotive industry.
Exam Focus
Always calculate labour productivity using the correct formula and state units (units per worker); unsupported claims lose marks.
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