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: The dearth of raw materials can hamper productivity drastically.
3. Employee motivation: It is one of the most important factors that affect 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 the productivity of a certain commodity or service.
5. Economic conditions: The 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.
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 the 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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