Factors determining the efficiency of labour

  • The level of education and training: It is the basic and essential element which determines the efficiency of labour. The modern world requires highly skilled labourers. A labourer with sound technical training will be more effective as compared 'id' a labourer who has no training. It increases the efficiency of the labourer.

  • The health conditions: lf the workers are in good health conditions, the productivity would be higher than for labour in poor health condition others factors being constant.
  • The working conditions environment:-If the working conditions are pleasant and the atmosphere is cheerful, the efficiency of labour would be much higher than for those under a dull environment other factors being constant.
  • The availability and efficiency of co-operant factors:-Labour alone does not produce output. It has to combine with other factors such as capital. The efficiency of labour therefore, depends on the tools or equipment with which he carries out the tasks. If the available co-operant factors are efficient, the efficiency of labour rises and vice versa.
  • The motivation of workers: Motivation provides job satisfaction which increases job efficiency of the labour. Motivation like rewards given by the employer encourages the workers to work hard. When the workers are motivated, their efficiency is much higher than for those workers who are less motivated.
  • The level of technology: Improvement in technology makes work quicker thus increasing the quantity and quality of output that labour can produce in a given time. Poor technology reduces efficiency others factors being constant.
  • The housing facilities/conditions: When the workers have good houses, their efficiency tends to be high but when the housing conditions is poor, the efficiency will be low because of the drop in moral.
  • The nutritional standards: Workers who are well fed are more productive than those who are poorly fed, other factors being constant.
  • Wages and benefits offered: Other factors remaining constant, if wages, allowances, bonuses and other fringe benefits are given to the workers, then their working efficiency increases. Labourer works very hard if he has attractive salary. On other hand if wages rate is low then efficiency of the labourer will be also low.
  • Job security: When the workers have job security, they tend to concentrate on their work and the efficiency increases and vice versa, other factors being constant.
  • Level of division of labour: If the workers are highly specialized in their work place, their efficiency rises and vice versa.
  • Quality of management and supervision: The organizational level influences the efficiency of labour in that workers under close supervision are more productive than those working under laissez faire management, other factors being constant.
  • Degree of expertise:- A worker who has worked for long and gained experience is more productive than those who are fresh in the same field, other factors remaining constant.
  • Worker's attitudes towards work and management: lf the workers have positive attitude and high regards towards the management and the work, their efficiency rises and vice versa, other factors being constant.
  • Personal qualities: Some people have some personal qualities and they are suitably built foe certain heavy labour. On other hand some people are very suitable for mental labour. Family background also pays very important role in this regard.
  • Climatic conditions: Climates also plays an important role in increasing or decreasing the efficiency. Hot weather has a vital factor for the low efficiency of labour in Asia and Middle East. On other hand cold weather is an important element for increasing the efficiency in labour in U.S.A and Europe.
  • Combination of production factors: If the other three factors of production combination is ideal then efficiency of labourer will be high otherwise low.
  • Working hours: if working hours of labourer are reasonable then the efficiency will be high. If the working time is very long and without extra payment, then efficiency of the worker will be low.
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