Factors of Production – Labour (Labour Efficiency)


Factors of Production – Labour (Labour Efficiency)

Labour Efficiency: The efficiency of worker (Labour) depends on two set of factors.

a) His power to work: The labour capacity or power to work depends on the following factors.

  1. Inherent quantities: A man inherits some quantities from the racial stock to which he belongs. Some races are known to be hardier than other. These qualities largely the outcome of climate and natural environment.

  2. Acquired qualities: By education, general or technical a worker can acquire some qualities. An honesty, intelligence, health, strength of the body, sense of responsibility etc are acquired qualities and these can increase the efficiency of the labourer.

  3. Earnings: If a worker is having good wages with help of which he can improve his diet as well as living standard. This will improve his health and he will be capable of doing more work.

  4. Factory environment and equipment: If the factory is neat, well ventilated and it’s equipped with modern machinery the worker can work more effectively and produce quality products.

  5. House of work: It has been provide that long hours mean low efficiency. Labourer is not a machine, he is human being and hence for getting sizeable work appropriate hours of work required to be given to the labour.

  6. Labour organization: A good trade union having constructive approach can improve the labour efficiency.

b) Will to work: The worker’s will to work is strengthened by his ambition to rise, his desire to make the most of an opportunity the inducement of bonuses or profit sharing schemes and sense of duty. Thus the more earnest he is, the greater is his productivity.

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