Factors Affecting Productivity

All the factors which are related to input and output components of a production process are likely to affect productivity. These factors can be divided into 2 main categories, namely.

Category 1

Primary factors are effort and working capacity of an individual.

• Organization factors are related to the design and transformation process required to produce some item, the nature of training and other skill imported to workers to perform certain operations in a production process, control and various other incentives.
• Conventions and traditions of the organization e.g. activities of labor unions, medical facilities, worker and executive understanding etc.

Category 2

• Factors related to output: research and development techniques, improvement in technology and efficient sales strategy of the organization will lead to improvement in output.
• Efficient use of input resources , better stores control , production control policy , maintenance of machines etc will minimize the cost of production.

The factors listed in category I and II can be further divided into 4 major classes viz.

• Technological
• Managerial
• Labor
• External factors

The technological factors can increase the output per unit of input substantially. They can be defined in terms of technology employed, tools and raw material used.

The labor factors are characterized by the degree of skills of the works force, health, and attitude towards management, training and discipline.

Managerial factors can be located in organizational structure, scheduling of work, financial management, layout innovation, personnel policies and practice work environment, material management etc.

External factors or innumerable and identifiable in the environment which an organization has to interact e.g., the power and transport facilities, tariffs and taxes etc have important bearing on the levels of productivity. Some of these factors are controllable and some are uncontrollable and demarcation should be made between the two.


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