Emili Grifell-Tatjé, C. A. Knox Lovell
Cambridge University Press, 26-Jan-2015 - Business & Economics - 408 pages
The productivity of a business exerts an important influence on its financial performance. A similar influence exists for industries and economies: those with superior productivity performance thrive at the expense of others. Productivity performance helps explain the growth and demise of businesses and the relative prosperity of nations.
Productivity Accounting: The Economics of Business Performance offers an in-depth analysis of variation in business performance, providing the reader with an analytical framework within which to account for this variation and its causes and consequences.
The primary focus is the individual business, and the principal consequence of business productivity performance is business financial performance. Alternative measures of financial performance are considered, including profit, profitability, cost, unit cost, and return on assets. Combining analytical rigor with empirical illustrations, the analysis draws on wide-ranging literatures, both historical and current, from business and economics, and explains how businesses create value and distribute it.
(Pages 22 to 32)
Productivity Drivers Internal
1. Quality of Management: General
2. Quality of Management: Human Effort Engineering and Human Resource Management.
3. Quality of Management: Allocation of Resources
4. Quality of Management: Adoption of New Technology
5. Quality of Management: Product Range and Diversification
6. Quality of Management: Cost Reduction and Waste Elimination
7. Quality of Labor
8. Quality of Capital ( and Intermediate Goods in a Gross Output Context)
9. Quality of Outputs of Services
Productivity Drivers External
3.The competitive environment
4. Regulation, Deregulation and Regulatory Structure
5. Structural Reform and Liberalization
8. Public Infrastructure and Research & Development
The authors say the list is only indicative and not comprehensive. They are intended to emphasize that productivity is controllable either by firm management, or by the aggregate economy's helmsmen.