To improve the work environment for its engineers, Segment.com rearranged its work areas to move the engineers to the quietest area of its building, and moved its sales and marketing force to to the loudest area.The result was an increase in output equivalent to hiring 10 to 15 additional workers.Which of the following statements best describes this change at Segment.com?
A)The change implemented is not an example of technological change because it did not require the use of new machinery or equipment.
B)Technological change refers only to the introduction of new products or improvements to existing products. As such, the scenario described in the question is not technological change.
C)The firm is able to produce more output using the same number of inputs. Therefore, Segment.com has implemented a positive technological change.
D)The scenario described is an example of management efficiency and not technological change. Essentially, the firm changed its way of operating its business.

Question

Quizplus · Accepted Answer

The rearrangement of work areas to increase output without increasing inputs is an example of positive technological change, even if it did not involve the adoption of new machinery or equipment. The change improved the efficiency and productivity of the engineering team, which ultimately resulted in increased output. Therefore, choice C is the best answer. Option A and D are incorrect because the change implemented at Segment.com can be categorized as technological change, as it improved the use of resources and ultimately led to increased productivity. Option B is also incorrect since technological change goes beyond the introduction of new products or improvements to existing ones, but includes changes in production processes or operational improvements.

To Improve the Work Environment for Its Engineers, Segment