Question: 1 . In the past there was concern about a productivity paradox related to IT services. More recently, there have been few references to this

1. In the past there was concern about a productivity paradox related to IT services. More recently,
there have been few references to this phenomenon. Using the Internet, explain the term productivity paradox. Why do you think that the discussion of that topic has faded?
2. A U.S. company has two manufacturing plants, one in the United States and one in another country.
Both produce the same item, each for sale in their respective countries. However, their productivity
figures are quite different. The analyst thinks this is because the U.S. plant uses more automated
equipment for processing while the other plant uses a higher percentage of labor. Explain how that
factor can cause productivity figures to be misleading. Is there another way to compare the two
plants that would be more meaningful?
3. While it is true that increases in efficiency generate productivity increases, it is possible to get
caught in an efficiency improvement trap. Explain what this means.
4. It is common knowledge that Sams boss Dom has been fudging the weekly productivity figures.
Several employees, including Sam, have spoken to him about this, but he continues to do it. Sam
has observed a drop in morale among his coworkers due to this. Sam is thinking about sending an
anonymous note to Doms boss. Would that be ethical? What would you do if you were Sam?
5. Give two examples of what would be considered unethical involving competition and the ethical
principles (see Chapter 1) that would be violated.

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