Test Questions

1.	Linking pay to productivity means that workers will only receive a pay rise if:
A.	Product demand rises
B.	Output rises
C.	Production costs fall
D.	Product price rises
	Questions 2 – 4 share the following answer options: The productivity of a workforce may be improved in a firm that offers:
A.	Job enrichment
B.	Increased job specialisation
C.	Greater job security
D.	Empowerment
	Which of the above could be achieved by:
2.	Increasing the variety of tasks performed by an employee
3.	Offering permanent contracts to temporary employees
4.	Improving training opportunities
5.	Labour productivity in a firm is most likely to suffer if there is:
A.	An increase in overtime working
B.	An increase in performance-related gifts
C.	An increase in staff turnover
D.	An increase in worker participation in decision-making
	Questions 6 – 7 concern the following methods of payment:
A.	Time rates
B.	Profit sharing
C.	Performance-related pay
D.	Commission
	Which of the above methods describes wage payments that are calculated on the basis of:
6.	Systems that link pay to a worker’s individual or group productivity
7.	The number of hours worked multiplied by the wage rate per hour
8.	The payment of non-monetary rewards or ‘fringe benefits’ to workers by their employers has increased over time. Which one of the following statements could not explain this trend?
A.	Firms are increasingly concerned about worker motivation
B.	The giving of non-monetary rewards can be cheaper than paying higher wages
C.	Increasing competition for skilled labour has made it more difficult to retain staff
D.	Unemployment has risen
	Questions 9 – 11 share the following answer options:
A.	Changing the ratio of capital to labour inputs
B.	Total Quality Management
C.	Worker empowerment
D.	Quality circles
	Which of the above describe the following strategies to improve productivity in a firm:
9.	Organising labour into small teams
10.	Encouraging greater participation in business decision-making and problem-solving
11.	Investment in new plant and machinery
12.	The main reason a firm will wish to increase productivity is:
A.	To reduce labour input
B.	To reduce costs
C.	To increase prices
D.	To improve quality
13.	Answer the following questions: What is production? What is productivity? What objectives do firms hope to achieve by increasing productivity? Explain two ways in which a construction firm might attempt to increase productivity. What strategies could an office employ to improve productivity? Suggest two short-term costs to a firm of introducing methods to increase productivity. Suggest two tong-term benefits of improved productivity to a firm. What is ‘added value’ in production? Why do firms aim to add value in production? Suggest and explain three ways a firm might seek to increase added value in production. Suggest and explain three factors that could affect the production of motor cars. Suggest and explain three ways the motor car manufacturer could improve production.
14.	Explain the following terms and suggest how they might help a firm to increase productivity. Job redesign Performance-related pay Just In Time production Single sourcing Total Quality Management Quality circles