Answer to Question #152894 in Macroeconomics for Hasib

Question

Discuss how talented entrepreneurs and effective managers can enhance average labor productivity

Answer 1

Talented entrepreneurs and effective managers can enhance average labor productivity through the following means:

Examining the operation - observing and noting what causes inefficiencies is important as it enable implementation actions that can lead to a higher labor productivity.

Gather employee feedback - gathering feedback through survey to the employees is critical as the labor force is intimate with their daily job functions. Feedback from specific job roles and areas where seems to have recurring productivity issues will help to solve the problem thus increasing efficiency.

Examine available data - entrepreneurs and managers should examine any available data to build a baseline metric for production. This makes it possible to implement changes while gauging their actual impact on production.

Build better processes - after determining the primary problems with labor and production it is necessary to improve existing processes or design new operational policies.

Employee training programs - changing the processes is only effective when the actual labor force is trained to work with the new systems. Thorough and clear training is a necessity for improving labor and productivity.

Motivate the labor force - lack of motivation will slow labor and productivity suffers as a result. Motivating employees by providing performance incentives is a major motivator. Job security and benefits will also gain employee loyalty and help drive production.