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Abstract:
Productivity
growth plays a prominent role in the economic and social development of any
country. Productivity is an indicator showing how many goods and services are
to be produced for the assigned cost. Productivity is improved by managing and
organizing business operations effectively, employing scarce resources
efficiently and by producing quality products and services that meet market
demand and needs. As productivity growth develops, the competitiveness of the
country or business entity rises, social wealth is increased and income levels
and living standards of the citizens are improved. The experiences of highly
developed countries show that productivity plays a role in the leverage of
economic growth and developments not only at the country level, but at the
level of business entities or even on households and individuals. Thus an
accurate estimation of labor resources of the organization by added value needs
to be conducted and the resources analyzed by assessing utilization efficiency
and influencing factors of labor productivity.Objectives
Productivity growth is considered the main factor for the sustainable economic
and social development of any country. Productivity describes the broad themes
of resource utilization and output ratio, or shows how many goods and services
to be produced for the assigned cost. As productivity growth translates as an
essential factor of measuring competitiveness not only of the state, but also
business entities, its estimation formula and sustainability methodology have
been analyzed in the case of Mongolia. Research
method Compare and analyze: Annual GDP, Workforce and Periodic productivity
growth by economic sector observed from Statistical Annual Report of Mongolia
2015-2019. The traditional method of estimating the impact of economic analysis
factors was used. Summary The
latest 5–year Statistical report indicates that labor productivity growth has
continuously been higher than GDP and economic growth that has been supported
by raw minerals market price rise in the mining sector. Moreover, it has been
evident that the growth of the manufacturing sector has slowed down in the last
5 quarters, and there has been a continuous decrease in industries such as
food. Considering the state economic conditions there have been efforts to
provide guidance for possible options to maintain productivity growth which
will be less than input growth percentage at the macro level; however, expected
results have not been seen yet. Conclusion and Recommendation To
estimate productivity indicators by labor, and limited resource usage ratio,
and to maintain a sufficient growth ratio that improves productivity
effectiveness of business entities, the following methodology is recommended:
The influencing factors on labor productivity growth needs to be considered as
a whole, and to estimate the performance growth of labor productivity instead
of total sales of products and services, the production cost the workforce
spent in the accounting period would be appropriate factors.
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