Write short note on a factor affecting productivity. Or What are the factors affecting productivity Discuss.

Write short note on a factor affecting productivity. Or What are the factors affecting productivity Discuss.

Ans. There are two types of factors which affect the productivity –

(i) Factors Affecting National Productivity

(a) Human Resources– In national productivity, the general level of education is an important factor. The use of computers and other sophisticated equipment and systems need~ better educated employees. Government can help by sponsoring more education; especially in fields which directly affect productivity. Employees require to be motivated to be productive. Pay is not sufficient; they require to have good, safe working conditions, and to be identified as the most vital part of the enterprise. Management and labour unions may be adversaries in negotiating pay and benefits, but can cooperate

in seeking productivity improvements, to the benefit of all.

(b) Technology and Capital Investment- Technology is the major factor in long range continuing. productivity improvement, and new technology depends on Research and Development. For industry and services to put new technology into use they must invest in new machinery and

equipment. The government can do the following –

(1) Permit depreciation rates which will provide cash flow for new investment.

(2) Promote Rand Din industries and Universities.

(3) Directly encourage new investment through increased investment tax credits.

( 4) Encourage personal savings and reduce taxes on profits so that people invest in new facilities.

(c) Government Regulation – A large amount of government

regulation may have a harmful effect on productivity. Government can do

much to remove unrequited regulations and to make cost benefit analysis to

determine the essential regulations such as those on health and safety.

(ii) Factors Affecting Productivity in Manufacturing and Services-

(a) Product or System Design– If it is possible to simplify a    product by eliminating some of its parts through better product design, then it is clear that the material these pieces are made of will no longer be required. Nor will the equipment, tooling and labour to make them be needed. Value

analysis can bring out several product design changes which improve productivity. R and D i$ a main contributor to improved product design. Use of group technology and standardization of the product are other design which make possible greater productivity in the factory.

(b) Machinery and Equipment – After the designing of the product, how it is made offers the next opportunity for productivity improvement. The equipment used – machines, tools, conveyors, rotors, the way the factory is laid but, all are significant. Computer has helped design the products (CAD). It helps operating complicated machine tools {CNC machines) all’s it controls the inventory of material and parts. It has become a necessary part in productivity improvement.

(c) Skill and Effectiveness of the Worker – The skilled and experienced worker can do the same job in a much shorter duration and with far greater effectiveness than a new one. However, even the skilled employees must he motivated to be productive.

(d) Production Volume – Suppose that the volume of output to be doubled. Number of direct workers would have to be doubled and a few indirect workers might also be required. However, there world probably not be a requirement for more engines, research scientists, headquarters staff people or other support personnel. Therefore if the output is doubled, the productivity of these support people is in effect doubled.

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