12 Factors Affecting Productivity in an Organization

A few factors may affect the productivity of an organization. Which factors affecting productivity are discussed below:

Factors affecting productivity

  1. Technology: Technology dictates productivity ratio. The more modern the technology the higher the productivity.
  2. Supply of raw  materials: Dearth of raw materials can hamper productivity drastically.
  3. Employee motivation: It is one of the most important factors that affects the productivity of a firm. The higher the motivational factors (wages, benefits, promotion etc) the higher is the production.
  4. Legal System: The Legal system of a country or State may dictate productivity of a certain commodity or service.
  5. Economic conditionsThe Economic condition of firms, as well as the country as a whole, may determine the ratio of productivity.
  6. Knowledge & Skills: Knowledge, skills, and attitudes of the employees play vital roles in productivity.

    12 Factors Affecting Productivity in an Organization

    Factors Affecting Productivity in an Organization

  7. Supervision/management: Proper supervision, monitoring, leading and management all together are important factors for productivity.
  8. Competition: In a competitive market, productivity is supposed to be higher than that of a dull market.
  9. Standardization: Standardization of quality & quantity dictates productivity ratio of an industrial concern.
  10. Technical glitch: Sudden collapse may restrict productivity drastically.
  11. The demand for the product: Market forces such as demand & supply many decide the productivity ratio.
  12. Profitability: The higher the profitability the higher is the productivity ratio and vice versa.

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