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The conversion of the efficiency of labor, respectively of labor productivity in the economic and commercial rate of return

  • Constantin CĂRUNTU

    („Constantin Brancusi” University of Târgu-Jiu)

  • Mihaela Loredana LĂPĂDUŞI

    („Constantin Brancusi” University of Târgu-Jiu)

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    Generally, an activity is considered to be efficient if the production implies low costs or if the revenues from selling the products on the market outweigh the expenditures that were made to achieve them. Labor productivity as an efficiency indicator of a production process represents an expression of the relationship between effect (products, services) and effort (work means, labor force, work items). Through the labor productivity conversion in rates of return (economic and commercial) is determined an evolution and an influence on these rates, driving the company’s own efforts to innovate, produce and harness goods, works and services with maximum utility, efficiency and competitiveness services. The aim of this paper is to highlight the work efficiency, respectively the labor productivity detached from the factorial context in the trade and economic rates of return. The introduction presents some general aspects referring to labor productivity, then it will be presented and discussed the analytical methods used in the process of reflecting the labor productivity in the rates of return, the results analysis, and at the end of this paper it will be presented some conclusions based on the study case. The expected results consist in identifying the mechanisms by which labor efficiency is converted into the company’s economic and financial performance.

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    Article provided by Constantin Brancusi University, Faculty of Economics in its journal Constatin Brancusi University of Targu Jiu Annals - Economy Series.

    Volume (Year): 4.II (2010)
    Issue (Month): (December)
    Pages: 301-310

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    Handle: RePEc:cbu:jrnlec:y:2010:v:4.ii:p:301-310
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