Question

For a widget manufacturing company, worker-hours per widget is a measure of:

a. organizational effectiveness.
b. organizational performance.
c. organizational efficiency.
d. organizational structure.
e. none of these.

Answer 1

Worker-hours per widget is a measure of organizational efficiency, indicating the labor needed for producing a single unit of output. Efficiency reflects effective resource use, and productivity can also involve other measures like dollar contribution per hour or economies of scale.

The correct option is c.

Step-by-step explanation:

For a widget manufacturing company, worker-hours per widget is a measure of organizational efficiency.

This metric gives us insight into how much labor is needed to produce a single unit of output, in this case, a widget. Efficiency in this context refers to the company's ability to use its resources, particularly labor, effectively to produce goods.

The lower the number of worker-hours required to produce a widget, the higher the efficiency of the production process. Calculating the cost of producing different levels of output can be done by multiplying the number of worker-hours by the wage rate, which in our case is $10 per hour.

This calculation helps determine the labor cost for producing widgets. Additionally, productivity can also be measured by dollar value per hour a worker contributes to the employer's output or by taking into account variables like economies of scale.

The correct option is c.

Answer 2

Worker-hours per widget is a measure of organizational efficiency, reflecting how effectively a company uses its resources in production. Productivity can also be measured by the dollar value contribution per hour or by considering economies of scale.

Step-by-step explanation:

For a widget manufacturing company, worker-hours per widget is a measure of organizational efficiency. Efficiency refers to how effectively a company uses its resources to produce its products. In this context, if the cost per hour is $10, and we calculate the total cost by multiplying the worker-hours by this amount, we are essentially measuring the cost efficiency of producing widgets.

Other measures of productivity can include the dollar value per hour a worker contributes to the employer's output, and economies of scale, which relate to cost advantages due to the size of the operation. Thus, apart from considering worker-hours per widget, it's crucial to acknowledge the diversity in measures to accurately assess productivity and efficiency within an organization.