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Production and Productivity – Factors Affecting Productivity



Production refers to the volume value or quantity of goods and services produced during a given period by a worker plant firm or economy. It is the sum total of results achieved by the various factors used together.


Productivity is not concerned with the volume of production. It is the ratio of output and input factors of an enterprise. It shoes the efficiency of production or the efficiency levels of input factors.

Factors Affecting Industrial Productivity:

Productivity is defined to be some ratio between output and input those all factors which affect output and inputs will also affects the measure of productivity. The following factors affect the productivity.

a) Technological Development:

Technological factors including the degree of mechanization, how raw materials, layout and the method and techniques of work determine the level of technological development in any industry. The principal factor in technological development affecting productivity is

b) The Size of the Plant:

The size of the plant and the capacity utilization has direct bearing on productivity. Production below or above the optimum level will be uneconomical and will tend towards lower level of productivity.

b) Research and Development:

Investment in research and development may yield better method of work and better design and quality of products.

c) Plant and Job Layout:

The arrangement of machines and position in the plant and the setup of the wore-bench of an individual worked will determine how economically and efficiently production will be ferried out.

d) Machine and Equipment Design:

Whether design of machinery and equipments is modern and in keeping with the limitations and capacities of the workers will also determine the production efficiently and level of productivity.

e) Production Processes:

Advanced Production processes involving the use of modern integrated and automatic machinery and semi processed material have been known to help in raising levels of productivity.

f) Power Raw Materials:

Improved quality of raw materials and increased use of power have a favorable effect on productivity.

g) Scientific Management:

Scientific management techniques such as better planning of work simplifications of methods time and modern study emphasis for reduced wastage and spillage have positive effects on productivity.

2. Individual Factors:

Individual factor such as knowledge skill and attitude also affect the productivity of industry. Knowledge is required or acquired through training education and interest on the part of lecturer. Skill is affected by aptitude, personality, education, experience, training etc.

a) Organization Factors:

Organization factor include various steps taken by the organization towards maintaining better industrial relations such as delegation and decentralization of authority. These factors also influence motivation likewise the existence of group, with higher productivity as their goal is likely to contribute to the organization objectives.

Source by Sathish Kumar Bala

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