Reduce Distractions. An educated and trained labourer is more efficient than an untrained and uneducated labourer because the former understands the intricacies of his job in a better way than the latter. As a matter of fact, in a developing country like India, the spread of technical education is an essential pre-requisite of industrial expansion. Naturally, he will be more efficient if he enters the trade of his father. Moreover, he does not get sufficient food or medical care which is so much important for maintaining his physique. The climate of a country exerts considerable influence on the productivity of labour. Bonus must be given. The efficiency of a labourer is also dependent upon the skill of the organiser. Efficiency of Other Factors 7. A temperate climate is particularly favourable for prolonged work. Transplanting, hand watering, plant selection forshipping and moving plants into and out of the growing area often use excessivelabor. The desire to work better and improve oneself must be stimulated by providing sufficient incentives to work. A worker having high standard of living is more efficient than a worker having low standard of living.. Good nourishing food, suitable clothing, ventilated and comfortable home with healthy surroundings tend to increase the efficiency of workers. Social, Political and Economic Conditions: Efficiency of labour is also dependent on the social, political and economic conditions of the country some of these factors are: The climate of a place also determines the efficiency of labour in a country. Similarly, workers who are fatalists are seldom hard working by nature, and hence their efficiency is also low. Although it's usually manual labor such as farm workers, it can also be service work, such as janitorial. Workers are also forced to put efforts beyond certain hours. Disclaimer Copyright, Share Your Knowledge A low-paid worker always grumbles and is unable to put his heart into the job. The efficiency of a labourer depends on his level of education. Two other schemes of motivating workers are: (1) Worker partici­pation in management (which seeks to bring the worker more prominently into the decision making process), and. The desire to work better and improve oneself must be stimulated by providing sufficient incentives to work. Greater attention is now paid in places of employment (factories and offices) to such matters as ventilation, lighting, temperature and medical care. How to increase labour market flexibility. Personal Qualities of Labourers: The efficiency of a worker is influenced by qualities which he … Answer. Almost three years to the date since Occupy Wall Street first raised the consciousness of Americans about the wide economic Labour Efficiency. Our mission is to provide an online platform to help students to discuss anything and everything about Economics. Working Conditions: The conditions under which the worker works also influence his efficiency. The benchmarks for labor efficiency (total labor cost divided by gross revenue) and labor productivity (gross revenue per worker) are a labor efficiency measure below 9.1 percent and a labor productivity measure above $650,000 per worker. In most parts of India the incomes of labourers are not sufficient for healthy and comfortable living. A2 Past Year Questions by Topics Chapter 1: Efficiency & Market Failure 2008 MJ 41 2 The government in Namibia stated that electricity prices should cover cost and should also be based on the principle of allocative efficiency. Altering the Saving Rate 2. Reduce minimum wages. The Government is also spending money on labour welfare, housing schemes, etc. The per capita output of labour may be higher if the organiser is efficient, farsighted and liberal in his outlook. An increase in labor supply accompanied by a static labor demand can … Not … Efficient workers also innovate and invent and develop new techniques of production. Modern industrial techniques require highly skilled scientists, engineers, econo­mists, accountants, managers, administrators, and so on”. Efficiency of labour also depends upon the employer-employee relations. But providing labour with bigger and better machinery and more fertile land is not enough. Workers who live and work under hot climate become tired soon both physically and mentally. Most of the factors mentioned above are not present in India. There are several different ways to measure labor efficiency, depending on the type of products and services being produced, and the end goal. Share Your PPT File, Labour as a Factor of Production: 14 Main Peculiarities. In advanced countries like the USA, high wages conduce to high standard of efficiency by improv­ing the living standards of people. The climate of India is hot and humid and is therefore detrimental to hard work. Welcome to EconomicsDiscussion.net! In the post-Second World War period there has been, in most countries, continuous improve­ment in the conditions under which labour performs its daily tasks. For all these reasons, one should not be surprised that the productivity of an average Indian worker is so low. Employer-Employ Relations. For example, if the wage of a worker reduces, then other family members of worker start working to meet up the requirements of their family. Moreover, there is not much air or light inside most factories. On the other hand, workers living and working in cold and temperate regions are more alert and hence their efficiency is high. It is also possible to raise productivity by motivating the workers prop­erly. The machinery and equipment in most Indian factories are old and obsolate. Public Policy # 1. The income of a worker is an important determination of his efficiency and the standard of living is determined by one’s income. On a broad level, manufacturing more efficiently can help cut costs, improve throughput and reduce environmental impact. the quantity of labour). Social media can be a huge productivity killer, but it isn’t practical to have a … Read on for 9 ideas to improve manufacturing efficiency. Give up on the illusion of perfection. About the truth of this re­mark there is, however, much room for doubt. Labor efficiency and productivity can be improved by examining per unit costs among inputs and making appropriate adjustments to a farm’s input mix (i.e., labor, capital, and purchased input cost proportions)… The efficiency of a worker is influenced by qualities which he possesses. Labour productivity can be improved by increasing spending on education and training to help develop skills and close any skills gap. Social security measures such as insurance, provident fund, pension etc. This website includes study notes, research papers, essays, articles and other allied information submitted by visitors like YOU. The Indian climate is not quite suitable for hard work. If the society to which the workers belong is backward, and is based on caste and creed relationships, workers will not work in cooperation with workers belonging to other castes. Welcome to EconomicsDiscussion.net! The conditions under which the worker works also influence his efficiency. However, this is expensive and takes time. So, factories and offices must provide the workers with adequate air, light, drinking water, bath­rooms, cheap canteens, medical aid and other amenities. Efficiency is about making the best possible use of resources. This is often used as a means of stimulating output. The labour force comprises all those who work for gain, whether as employees, employers, or as self-employed, and it includes the unemployed who are seeking work. On the other hand the trade in which such incentives does not exist; the efficiency of labour will be low. They work hard, are honest and responsible. It used to be difficult, if not impossible, to track productivity … The National Welfare Fund … If a worker possesses good physique, is mentally alert, is intelligent, sober, honest, and resourceful, and is responsible, he will be more efficient than others. Reduction in Non-Plan Revenue Expenditure 3. Assurance of job security; Increased level of technology; Efficient management. Use Technology to Your Advantage! Steps are being taken to raise the level of wages. By contrast, well-ventilated, clean and pleasant working place, absence of unusually long hours of work, satisfactory employer-employee relations all go a long way to­wards increasing the productivity of a worker. No doubt eco­nomic progress depends, to a large extent, upon the institutions which provide such skills and knowledge. Economics, Efficiency, Efficiency of Labour, Labour, Production. Share Your PPT File. Technical training is provided by a firm itself. Share Your PDF File Industrial Policy. Evaluate these first to see if … Organisation and motivation are equally, if not more, impor­tant in raising labour productivity. A child inherits the skill of his father by birth. This is the ability of labour to increase output without increasing its quantity (i.e. Efficient firms maximise outputs from given inputs, and so minimise their costs. In a country where the labour force is efficient, its productivity is high. Reduction in Government Regulation 6. They are … Track Staff Time. The factor influencing are: 1. Welfare Services 8. Low wages, as in India, generally retard efficiency. In recent years, however, some attention has been paid to this matter. This makes medical care and attention available to all irrespective of the ability to pay. Furthermore, most workers get low wages and maintain a miserable existence. The French economy isn't growing as quickly as it needs to, which is having an effect on job prospects, living standards and well-being, according to … An average worker gets tired sooner or later. This is bound to increase his efficiency. A dark, cold and cheerless workplace is unlikely to encourage industrious and carefree effort. Hence the efficiency of the former is higher than that of the latter. In such climatic regions labourers become very efficient. (2) Profit sharing schemes (i.e., giving stock options to employees). The efficiency of a labourer will increase if the other factors of production are of good quality. How to Find Income Elasticity of Demand from Engel Curves. Share Your PDF File Most of them are illiterate, superstitious, conservative and tradition bound. … Labour productivity is concerned with the amount (volume) of output that is obtained from each employee. Efficiency of labour can be increased if the worker has prospects of promotion, honour and reward. It's common for entrepreneurs to get hung up on attempting to … Following the Inequality Policy Brief, here are six ways to minimize the rising economic inequality prevalent in the United States. This is why the productivity of an average Indian worker is much less than that of an average American or Japanese worker. Political conditions also affect the efficiency of labour. We may conclude with Penson, “Efficiency of labour depends partly on the employer and partly on the Employee, partly on the organisation and partly on individual efforts, partly on tools and machinery, etc., with which the worker is supplied, and partly on his skill and industry in making use of them.”. Income and Standard of Living 4. These benefits are provided to ensure economic and social justice; but, while helping to maintain the health and moral of the people, they do make a positive contribution to the efficiency of the labour force. Content Guidelines 2. When an economy’s labour productivity increases, this means that it is producing more goods and services for the same amount of relative work. Social, Political and Economic Conditions 4. For, it tends to increase the production of superior products at lower costs. Our mission is to provide an online platform to help students to discuss anything and everything about Economics. If, for example, agricul­tural lands are fertile, production per head is large. As a result, their efficiency declines. All of these actions increase productivity, which grows the economy. They produce quality products in larger quantities. It is anybody’s knowledge that the worker using modern equipment will produce a large output. Labour market flexibility is seen as a way to reduce unemployment, increase efficiency and encourage entrepreneurs to take a risk and employ workers. 2. The following points highlight the four main factors influencing the efficiency of labour. Personal Qualities 2. National insurance schemes provide unemployment compensation, sick­ness benefit and various other supplementary facilities so as to ensure that even in case of eventualities people get some minimum level of income. Industries with higher … Climate 3. Working Conditions 5. Types of Labor . The goal of U.S. management is to reduce labor costs so when improvements allow, they lay … However, due to scientific advance, climate is no longer an insurmountable handicap to efficiency. First is the skill level. Labor productivity is directly linked to improved standards of living in the form of higher consumption. Motivation and Incentives 9. For example, by installing air-conditioning plants in factories and offices, extremes of temperature can be avoided. [25] 2008 ON 4 4 In… Privacy Policy3. Efficiency of labour can be increased if the worker has prospects of promotion, honour and reward. Content Guidelines 2. The efficiency of a labourer depends on the environment in which he works. increased competition in financial services, retailing Ways by which the Efficiency of Labour can be improved. Labor efficiency is a measure of how efficiently a given workforce accomplishes a task, when compared to the standard in that industry or setting. Labour productivity is also correlated with improved standards of living in society in the form of higher consumption. If the government of the country in which the worker lives is strong enough to preserve peace at home and provide security from foreign aggression, his efficiency will be high as against that worker who leads a life of insecurity in a country full of internal disturbances and constant threat of war from abroad. The more advanced the machines are in a factory, the more efficient are the workers therein. This not only expands trade and industry within the country but also abroad. An efficient worker is able to get a better paid job. This, in turn, reduces work satisfaction and hence encourages turnover. But, in order to acquire technical skill one must get the right type of technical education. In case of labor, supply of labor decreases with an increase in prices (wages) and vice versa. There is compulsory provision for adequate ventila­tion, lighting, etc. Working Conditions 3. The same reasoning holds for raw materials. Technological Progress 5. should be given. In India the Factories Act of 1948 lays down rules regarding conditions of work inside factories. Such conditions are very depressing. Finally, as Alfred Marshall has pointed out “High wages may result in a high standard of efficiency”. Before publishing your Articles on this site, please read the following pages: 1.   The most basic is unskilled labor that does not require training. Concentration of control technology in electricity network management: managing larger networks with fewer personnel TOS4. The Policies are: 1. Companies most often improve labor efficiency by finding ways to reduce the number of labor hours required to produce the same level of output. Further, regular payment of wages on a due date also increases efficiency of labour because workers adjust their budgets accordingly. ADVERTISEMENTS: The following points highlight the six main public policies to promote Economic Growth. A lot of time is lost because staff arrive slightly late, or leave a bit early. This further leads to the production of cheap and quality products at lower costs of production, thereby bringing more profits to industry and trade. Promote economic growth through innovation. Haas Institute Director john a. powell discusses why these policies will work in slowing the growth in inequality. It is possible to achieve substantial improvements in labour productivity, even with the same amount of ma­chinery and labour employed, by improving the existing methods of pro­duction and proper reorganisation of men and machines. In fact, between the years of 2010-2014, the total labor productivity growth stood at a negative 0.2%, compared to a positive 3.6% in 2000-2004 … And, the effi­ciency of labour does not just depend on the personal qualities of the workers. The people of Northern India, especially the Jats, the Rajputs, the Dogras, and the Sikhs, are generally more sturdy than those of Bengal. However, these establishments can only do their jobs properly if and only if there is a well-established system of general education provided by the schools. But the relationship between the employer and employees itself dependents upon the behaviour of the employer towards the employees and that of the trade unions towards the employer. Racial Qualities 2. By introducing various incentive and bonus schemes it is possible to relate monetary reward more closely to effort. A good starting point inevaluating labor efficiency is to collect data on which operations require thegreatest amount of time. Share Your Word File The Swiss are considered to be more efficient watchmakers than others because they have been making watches from generations. A labourer, however, skilled and intelligent he may be, will produce relatively little if the machines on which he works are outmoded. The factors which affect his working conditions are as under: If workers are required to work in healthy surroundings in which the factory is well-ventilated, there is sufficient space for movement between machines and provision for fresh water refreshment and rest between works, their efficiency will be higher. Altering the Saving […] Similarly, better equip­ment and raw materials increase output per man hour. The fact is that production is the result of cooperation of all the factors of production. The knowledge and skills of workers available in the labor supply is a key determinant for both business and economic growth. Although the second method seems to be economically feasible the first method may be difficult to apply or imple­ment in practice. This website includes study notes, research papers, essays, articles and other allied information submitted by visitors like YOU. As a result, costs of production fall and profits increase. Economic growth: If an economy can raise the rate of growth of productivity then the trend growth of national output can pick up. The truth is that, an average Indian worker is comparatively less efficient not on account of some inherent deficiencies, but due to various natural and environmental factors. With proper education and a suitable environment people of all races can become efficient. Economy of High Wages. TOS4. Disclaimer Copyright, Share Your Knowledge Payment of wages should be fair and prompt. Ways to Improve Economic Efficiency After an in-depth analysis of the current state of energy control systems, PSI has determined the improvement standards and process changes needed for today's modern energy market. Promotion; Application of division of labour Consequently, his efficiency is low. Otherwise, they are put to much inconvenience when wage-payment is irregular and they are not able to devote themselves whole heartedly to their work which reduces their efficiency. If a person’s income is not sufficient for getting food, clothing, shelter and some entertainment, his productive capacity is bound to suffer. Having more cash means companies have the resources to procure capital, improve technology, grow, and expand. If the relations between the two are friendly and cordial, efficiency of labour will be high. If a worker is to give his best, he must have reasonable assurance that in the event of injury, sickness, unemployment, disablement, or death in service, he or his dependents must be suitably provided for. Efficient workers bring benefits to themselves, industry and the economy. The government can attempt to increase labour market flexibility in numerous ways. Hot and humid climates, on the other hand, produce lethargy and weariness among the workers and lower their efficiency. Policies to Raise the Rate of Productivity Growth 4. Why does measuring and monitoring labour productivity matter? Privacy Policy3. A worker who receives sufficiently high wages which ensure an adequate standard of living will have high efficiency. Labor can be categorized in many different ways. This is true if high wages increase the physical welfare (i.e., comforts and pleasure) of workers. Thus labour efficiency will be low. Working conditions in factories / work place should improve. 3 Ways Fast Broadband Contributes to Economic Growth ... improve labor markets, ... improved business efficiency and reduced transactional friction within … As G. F. Stanlake has put it, “An educated labour force which has the benefit of a sound technical training is more effective than one which lacks these benefits. Just as we saw at the 2013 International CES®, innovation and start-ups fuel our economic growth. From this point of view, Indian workers are in a bad position. In most modern mixed economies, like the UK or Sweden, the State provides a comprehensive social security system like a national health service. Increase the supply of labor. As more workers enter the economy, the general labor supply increases. It is sometimes said that physical strength and mental advancement are mainly racial characteristics. General and Technical Education 6. Discuss whether this approach to pricing can be supported in theory. Moreover, en­trepreneurial skill and other complementary resources such as capital are of poor quality. Share Your Word File Improve access to and quality of health care to reduce sickness and absence which should increase output per worker; Facilitating inward migration of skilled labour to improve the quality of the labour force; Deregulation of markets to encourage stronger competition leading to greater efficiency e.g. The following points highlight the top nine factors determining efficiency of labour. These two procedures are designed to increase output by carefree and systematic analysis of the existing methods of production. Government may also promote a more flexible labour market, such as reducing trade union power, encouraging part-time work, and encouraging new business start-ups. Productivity improvements mean that labour can be released from one industry and be made available for another – for example, rising efficiency in farming will increase production yields and provide more food either to export or to supply a growing urban population.

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