What is meant by productivity of resources ? Explain the importance of productivity in India.

What is meant by productivity of resources ? Explain the importance of productivity in India.

Ans. Productivity is nothing but the reduction in wastage of resources. It may be defined as the ratio between output and input. Output means the amount produced or the number of items produced and inputs are the various resources employed, e.g., land and building, equipment and machinery, materials, labour etc. The most common unit of input is “Man-hour” of working time and productivity due to this factor is known as “labour productivity”. Productivity can also be defined as human Endeavour (effort) to produce more and more with less inputs of resources as a result of which the benefits of production may be distributed more equally among maximum number of people. According to European Productivity Agency (EPA), “productivity is an attitude of mind. It is a mentality of progress of the constant improvement of that which exists. It is certainty of being able to do better today than yesterday,

and continuously. It is the constant adaptation of economic and social life to changing conditions, it is a continual effort to apply new techniques and methods, it is the faith in human progress.” in the words of V.K.R. Menon, “productivity implies development of an attitude of mind and a constant urge to find better, cheaper, easier, quicker and safer means of doing a job, manufacturing a product and providing a service”. Labour productivity is expressed as

P = O/M

where, P = Labour productivity

0 = Unit of output

M = Man-hour or efforts input.

Importance of Productivity in India  – In India, an autonomous organization known as National Productivity Council (N.P.C.) was established in 1958 and has set up 5 regional productivity directorates in the country managed by specialists for organizing productivity programmers. It has also established 4 ?local councils at various industrial centers in the country and they work as the spear head of the productivity movement. This organization supplies publications, utilizes audio visual media of films, radio and exhibitions in order to increase productivity. It organizes and conducts training programmers for various levels of management in collaboration with local productivity councils and various institutions and organizations, and provides assistance in other activities and difficulties.

Main cause of our country’s poverty is the low level of productivity in

practically every sphere of economy and from management to workers

including government. In United States, the minimum wages as established by

law is say 3 Dollars/hour. This has to be paid to sweeper, dish-washer, or any

body else who is asked to work. This works out to be about. 1,000 per day

for an 8 hour day. There are a few people in India who by their labour even at

very high position get that much per day. Despite very high wages, their unit

cost works out to be a very low figure and inspire of our low wages, our unit

costs are high. The reason behind it is that their productivity is very high and

our’s is very low. Actually, Indian industries are surviving inspire of low

productivity behind the rigid wall of exchange control. If this is removed, .the

economy of our country may be swamped by foreign goods.

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