The factors of production can be combined in any number of ways, some, more efficient than others. When they are combined efficiently
productivity will be relatively high. When they are combined
inefficiently, productivity will be relatively low. Decisions about
combining the factors of production rest with management.
In the production process, for example, it is management's responsibility to acquire the necessary capital (in the form of machinery, tools and equipment). Similarly, management must hire and train the firms labour force and motivate the workers to do the job. In other words, managers must employ both capital and labour to maximize productivity.
How do managers achieve this goal? One way was developed by Henry Ford who introduced a new way to manufacture his Model T Ford back in 1913. Prior to that time, workers and their tools moved from station to station to complete their tasks in building each automobile. One slow-worker slowed everyone else. Ford introduced an assembly line that brought the car to the worker on a conveyor belt. As a result, each worker had to complete his task before the car passed his work station. If a worker could not finish his task in that time, the task was modified or he was retrained or fired.
Another way to increase productivity is to let workers participate in
designing and improving the production process. Profit sharing and stock ownership also motivate workers. This is exactly what many companies now do. It has been found that workers with a stake in a firm's welfare work smarter because they get part of the profit when productivity increases.
Exercise 29. Match the English words and expressions in the left column with their Ukrainian equivalents in the right one.
| 1. to acquire the necessary capital | A. |
| 2. to train the labour force | B. |
| 3. to maximize productivity | C. |
| 4. to achieve the goal | D. |
| 5. to manufacture | E. |
| 6. to complete the task | F. |
| 7. to introduce | G. |
| 8. to modify the task | H. |
| 9. relatively low | I. |
| 10. profit sharing | J. |
Exercise 30. Find out the word in each group that does not match with the other three words.
1. benefit; gain; loss; profit;
2. economic; activity; productive; responsible;
3. drug; information; innovation; application;
4. inflation; unemployment; high prices; high wages;
5. allocate; conclude; achieve; transaction.
Exercise 31. Fill in the blanks with the appropriate words and expressions below. There is one choice you dont need to use.
(productivity increase; standard of living; product; production; output; population; resource)
1. A nation's ________ is measured by the amount of goods and
services available to its citizens.
2. If the ________ is increasing faster than the ________, living
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standards are likely to improve.
3 When you produce more or better products with the same time and resources, you have achieved a ________.
4. Input can be any _______ that goes into the production process.
5. Productivity is usually measured in terms of _____ per worker
per hour.
Exercise 32. Translate the following expressions into English and make up sentences of your own with them.
, , , , , .
Exercise 33. Answer the following questions and have a discussion on the topic.
1. Why is it essential for management to combine factors of production efficiently?
2. How is it possible to do?
3. What is management's responsibility in the production process?
4. How can managers train labour force?
5. Why should workers participate in profit sharing?
6. Can you suggest other ways of increasing productivity?
UNIT 4
