Firms in India are losing productivity because of Facebook. Office staff are spending too long on the social networking site. According to the Associated Chambers of Commerce and Industry, employees use Orkut, Facebook, Myspace and LinkedIn for many purposes. On an average, employees spend a hour a day on sites like Facebook. This reduces productivity by 12.5%. Nearly half of office employees accessed Facebook during work time. Some 83% saw nothing wrong in surfing at work during office hours. In September 2009 Portsmouth City Council in England banned staff from accessing Facebook on its computers when it was discovered that they spent on an average, 400 hours on the site every month. Questions: What is meant by productivity? Analyze the impact on a fall in productivity on costs? Analyze the possible consequences for businesses in India of banning access to Facebook and other social networking sites. Do you think such access should be denied?
Firms in India are losing productivity because of Facebook. Office staff are spending too long on the social networking site. According to the Associated Chambers of Commerce and Industry, employees use Orkut, Facebook, Myspace and LinkedIn for many purposes. On an average, employees spend a hour a day on sites like Facebook. This reduces productivity by 12.5%. Nearly half of office employees accessed Facebook during work time. Some 83% saw nothing wrong in surfing at work during office hours. In September 2009 Portsmouth City Council in England banned staff from accessing Facebook on its computers when it was discovered that they spent on an average, 400 hours on the site every month. Questions: What is meant by productivity? Analyze the impact on a fall in productivity on costs? Analyze the possible consequences for businesses in India of banning access to Facebook and other social networking sites. Do you think such access should be denied?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
Firms in India are losing productivity because of Facebook. Office staff are spending too long on the social networking site. According to the Associated Chambers of Commerce and Industry, employees use Orkut, Facebook, Myspace and LinkedIn for many purposes. On an average, employees spend a hour a day on sites like Facebook. This reduces productivity by 12.5%. Nearly half of office employees accessed Facebook during work time.
Some 83% saw nothing wrong in surfing at work during office hours. In September 2009 Portsmouth City Council in England banned staff from accessing Facebook on its computers when it was discovered that they spent on an average, 400 hours on the site every month.
Questions:
- What is meant by productivity?
- Analyze the impact on a fall in productivity on costs?
- Analyze the possible consequences for businesses in India of banning access to Facebook and other social networking sites.
- Do you think such access should be denied?
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