Which of the following statements is true about organizational productivity for individual organizations?
A) Productivity is less significant for people-oriented organizations.
B) Employees wages stagnate if the productivity is high.
C) High productivity provides a competitive cost structure to organizations.
D) High productivity would lead to increased profits and inflation.
E) Productivity only impacts manufacturing operations.

Question

Quizplus · Accepted Answer

High productivity helps organizations achieve a competitive cost structure by producing more output with the same level of input or producing the same output with fewer inputs, reducing costs. This enables organizations to offer competitive pricing and increase profitability, which can be reinvested in the business or passed on to employees in the form of higher wages or bonuses. Productivity has an impact on all types of organizations, not just manufacturing operations.

Which of the Following Statements Is True About Organizational Productivity