Introduction
Productivity refers to the monetary measure of production per component of the input. The input includes capital and labor while the output is measured in the form of GDP components like business inventories and revenue. On the other hand, development refers to the qualitative measure of the economy. Both productivity and development play a significant role in the growth of the economy. Variable factors including inflation, PPF concepts, demand, and competition are necessary to increase productivity and development.
Availability of the human resources increases productivity and growth of an organization, and the quantity of the present human resource are significant in every organization. Excellent skills and experiences enable organizations to produce and provide quality products and services to the consumers (McEachern, 2012). Identifying the demand and choice of the customer allows the company to produce goods as per the perception of the users. When the workers with the required skills provide quality services, then most of the consumers will buy the increase which results to increase the number of customers and demand. Furthermore, the increase in demand will lead to high sales, which will, further results to high profits. Therefore, having skilled workers increases development and productivity in an organization.
Technological development leads to increased development and productivity of an economy. It involves having the current technology to use in the operation of the organization and application of the application of the various scientific production methods to help in carrying out the various activities of the organization. Technology helps the organization to increase productive and development at a faster rate because all the activities of the organization can be performed accurately. Furthermore, improvements in technology have enhanced stiff competition in the various groups (McEachern, 2012). The organization should use the current technologies to maintain its customers and gain a high market share and to maximize the profits of the organization, Improvements in the technology of an organization shift the PPF outward. The PPF stipulates various maximum amounts of products that can be used in fixed amount of the applicable factors of production.
It is also important to share the resources equally during the process of production. The PPF curve is efficient in the country that uses it because it enables the country to produce more amount of one good without reducing the produced amount of the product (McEachern, 2012). The rise in the prices of the raw materials causes the cost-push inflation. This type of inflation also occurs when the prices of producing the various products.
Positive management is a variable that is significant for the increase of development and productivity. An organization that is well managed can produce high quantity. Having a real control enables the organization to increase productivity and development. Good management is significant because it urges the employees to provide quality products. Because consumers prefer quality products, there will be stiff competition in the market, which will result to increase in productivity and development in the economy. When the competition is great organizations work towards producing quality products, and this leads to the growth of the economy (McEachern, 2012). An increased economy also results in the increase of the living standards of the people.
In conclusion, factors like increased resources, real management, availability of human resources, and technological development increase productivity and development in an organization. Development is beneficial to every economy, and the factors have impacted development positively. In an economy, the increase in demand for products and services causes an increase in inflation. Therefore, it evident that for an economy to improve and compete well with the other economies it should develop technology in various areas because most of the consumers prefer the use of the current technology in the organization. All the organization should use the named factors to ensure that the economy develops and improve effectively.
Reference
McEachern, W. A. (2012). Economics: A contemporary introduction. Mason, OH: South-Western Cengage Learning.
