Productivity of human resources

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By frsantos


The product is a recurrent issue in the discourse of politicians and economists Portuguese. Speak up to improve national productivity to produce more and better in order to supply products to market at lower prices.

The production process of a company refers to its ability to generate "product" and add value. The added value that goes beyond the production process therefore also depends on how and under which conditions
company purchase goods and services intermediaries and actually sells the goods and services it produces. For example, if a company produces but does not sell everything they produced and accumulates unwanted stocks, also does not add the value added corresponding to these stocks.

The concept of productivity restricted to the production process is apparently more appropriate to evaluate the efficiency of performance of companies that
acting in "captive markets, ie markets in purchasing and sales
relatively closed to competition and greater degree of control by the company. This concept also tends to emphasize the importance of the tangible resources of production (machinery, facilities,
quantity of raw materials and labor, etc.). in the production process of the company.
Moreover, from the concept, the relationship between productivity and profit - the company's objective - can hardly be directly established.

Based on this concept of productivity, the most relevant to business performance become focused in the production process and therefore the efficiency of the production process will be determined primarily by the measure and its operational aspects.

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