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7.2.2 Productivity Index

As decisions are entered, a projection of this year’s Productivity Index will display on the Human Resources page. The higher the index, the lower the company’s per unit labor cost (see 7.2.3 for a detailed explanation of the Productivity Index and labor costs).

Human Resources Recruiting Spend and Training budgets are not entered in thousands. To spend $5,000, enter 5000.

If Labor Negotiations are scheduled, increases in the Productivity Index can be lost if the company uses a low wage/benefit tactic (see 7.3 Labor Negotiations). The Productivity Index can never fall below 100%.

After the round is processed, the results of all HR investments appear on page 12 of the Capstone Courier in the HR/TQM Report.

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