What is industrial productivity? Explain factors affecting industrial productivity.
Answers
Productivity is a technique of extracting greater output from the inherent input creativity of various resources through the conversion efficiency. The conversion efficiency which changes the level of productivity is largely affected by numerous factors. All these factors affect the level of productivity either individuality or jointly. Some important are classified as under:
1) Technological;
2) Managerial;
3) Financial
4) Natural
5) Sociological, and
6) Government
Technological factors: The technological advancement always strives to achieve the increased of production with minimum of costs and efforts, which always result into increased productivity e.g. application of mechanized power, automation etc
Managerial factors: Progressive and imaginative managerial skill always taps greater output of the human and nonhuman resources.
Good organizational relationships: Delegation of authority, true recognition of human factor, imaginative judgment results into increased productivity and contented labor force.
Financial factors: The availability of financial resources enables the organization to spend moneys for the research and development, employment of professional executives, adaptation of latest technology, provision of amenities, effective stock piling and material control. All these factors directly affect the level; of the productivity. The low level of productivity and poor industrial growth of the underdeveloped countries is due to poor capital formation and constraints on the financial resources.
Natural factors: The natural resources like geographical physical and climatic conditions directly affect the level of the productivity. The effect of these factors is confined to certain type of industries and the possibility of bringing them within the control e.g. humidification in textile industry quality thickness ad depth of the mineral resources; climate effect on the labor efficiency etc.
Sociology factors: The generic characteristics, racial quality etc has a great impact on the productivity of the labor. The productivity is also affected by the attitude of the workers towards the work and the approach of the management towards the working force and the provision of working conditions.
Government Policy: The Government policy regarding financial incentives taxation policy, tariff policy, industrial licensing labor laws etc also affects the productivity e.g. provision of concessional loans for modernization tax incentives for the expenditures on research and development etc help in increasing the level of productivity.
Productivity Movement in India:
Productivity in industrial under takings has assumed greater importance in recent years, especially due to increased national and international competition and limitation of resources. It encourages efficient utilization of scarce resources.
Answer:
Industrial productivity is the result of the production process and economical use of financial investment, land, manpower, technology, equipment, and machinery.
Factors affecting Industrial productivity are:
Depending on the individual environments, the decision is to be made.
Industries where capital and labor costs are less as we compared to the cost of material, better use of material and machinery gives the greatest result as well as the scope of cost reduction.