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In equilibrium, all firms pay the same wage above market clearing, and unemployment makes job loss costly, and so unemployment serves as a worker-discipline device. [3] A jobless person cannot convince an employer that he works at a wage lower than the equilibrium wage, because the owner worries that shirking occurs after he is hired.
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In a business context, operational efficiency is a measurement of resource allocation and can be defined as the ratio between an output gained from the business and an input to run a business operation. When improving operational efficiency, the output to input ratio improves.
Another form of reward is variable pay. Variable pay in a traditional sense is a performance-based method of reward and can take many forms. Unlike basic pay, variable pay may be inconsistent as suggested by its name. Variable pay may be linked to factors such as output, attitude, or other Key Performance Indicators. Variable pay may come in ...
In labor economics, an efficiency wage is a wage paid in excess of the market-clearing wage to increase the labor productivity of workers. [1] Specifically, it points to the incentive for managers to pay their employees more than the market-clearing wage to increase their productivity or to reduce the costs associated with employee turnover.
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Efficiency is the often measurable ability to avoid making mistakes or wasting materials, energy, efforts, money, and time while performing a task.In a more general sense, it is the ability to do things well, successfully, and without waste.