Explain in brief, the factors affecting productivity of resources. Or What are the factors which affect the productivity of resources ?

Explain in brief, the factors affecting productivity of resources. Or What are the factors which affect the productivity of resources ?

Ans. Productivity is the result of a variety of interdependent and interrelated factors. It is very difficult to measure the effect of any one factor separately. Some of the factors which exert profound effect on the. level of productivity are given as follows-

(i) Natural Factors – Productivity is also int1uenced by physical, geographical and climatic conditions to the place. Therefore, people of temperate countries have higher working capability than those of tropical regions. Next, the abundance of gift of nature in the form of minerals, forests, fertile land, extractive

industries, quality raw materials etc., tend to push up the productivity level.

(ii) Financial Factors- Capital is the life-capital of business. U inks

sufficient amom1t of capital is available to finance such needs of productive

enterprises as modernization of p1ant and machinery, mechanization,

rationalization and research and development, productivity level will not improve.

Research studies show that as the capital employed per worker tends to increase,

there is an increase in the level of productivity too, and the reverse is true

when there is a decrease in the amount of capital employed per worker.

(iii) Sociological Factors– Social traditions, customs and institutions

affect attitudes towards work and job. For example, bias on the basis of caste,

religion etc., inhibited the growth of modern industry in certain countries. The

joint family system influenced incentive to work hard in India. Close ties with land

and native place hampered stability and discipline between the industrial labour.

(iv) Technological Factors – Technological factors exercise

significant effect on the level of productivity. The main technological factors

are given as follows – ·

(a) Size and capability of plant

(b)· Production planning and control

(c) Plant layout and location

(d) Product design and standardization

(e) Timely supply of fuel and materials

(f) Materials handling system

(g) Inspection and quality control

(h) Rationalization and automation measures

(i) Repairs and maintenance

(G) Reduction and use of waste and scrap

(k) Research and development

(l} Inventory control

(m) Machinery and equipment used.

(v) Human Factors– Human factors relate to the availability of suitable personnel and their job performance. Men and women; which are working at all levels the organization managers, supervisors, professional staff such as engineers and scientists, other white collar workers and blue-collar

workers, are included in personnel. The existence of properly skilled personnel is a precondition to an improvement in productivity, be it an economy or an organization. One reason for the lower level of productivity in under-developed countries is the non-availability of skilled personnel in sufficient manner. When we analyse the effect of human factors on productivity, the following / two forces among the human resources are worth-noting

(a) Ability to Work – Productivity of an organization ;. dependent upon the competence and caliber of its people-both managers and  workers. Ability to work is governed by training, experience, education, aptitude etc., of the employees. ·

(b) Willingness to Work -.Motivation and morals of the people is the second important group of human factors that decide productivity; Wage incentive schemes, labour participation in management, communication system, informed group relations, promotion policy, union-management relations, quality

of leadership etc., are the key factors governing employee’s willingness to work. Working conditions such as working hours, sanitation, ventilation, lighting, temperature, safety measures and welfare amenities such as housing, schools, clubs, subsided. Canteen, free transport etc., also affect the motivational level of employees.

(vi) Managerial Talent– With the advancement of technology, the significance of managerial talent has increased. Professional managers are needed to make better use of new technological developments. As the modern enterprises are run on a large scale, the managers must have imagination, judgment and willingness to take initiative. The managers should be devoted· towards their profession and they should understand their social responsibilities towards the . owners, customers, workers, suppliers, Government and the society. This is necessary if the managers want to manage their organizations effectively. The managers should have conceptual, human relations and technical skills for increasing the productivity of the enterprise.

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