Certified Production & Operations Manager (POM) Practice Exam 2026 – Your All-in-One Guide to Exam Success!

In the context of productivity variables, labor, capital, and management represent foundational elements that contribute to the overall productivity of an organization.

Labor refers to the human workforce that performs tasks and drives production efforts. Efficient management of labor can lead to improved productivity through better scheduling, training, and motivation of employees.

Capital encompasses the financial and physical resources used in production, including machinery, buildings, and equipment. Effective utilization of capital can enhance productivity by ensuring that the necessary resources are available for efficient production processes.

Management ties together both labor and capital, as it involves planning, organizing, and overseeing production activities. Good management practices ensure that labor and capital are used effectively to achieve the organization's goals, including maximizing productivity.

The other options present various aspects related to productivity, but they do not encompass the same breadth of essential productivity variables as labor, capital, and management. These three elements form a triad that fundamentally impacts organizational productivity. Understanding their interrelationship is crucial for effective production and operations management, highlighting their significance in driving productivity in various industries.