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 the 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 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 may decide the productivity ratio.

12. Profitability: The higher the profitability the higher the productivity ratio and vice versa.

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