Labor productivity is a measure of labor efficiency

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

Any labor is organized in order to obtain a specific result, the output of which is supposed to be a developed product, service or other product. For any work collective, the fruitfulness of labor and the quality of the products produced are important. Can labor productivity be efficient and achievable? The definition of this issue allows you to measure the efficiency, quality and fruitfulness of work. By increasing productivity, an organization is able to reduce costs, whether it be renting a room, paying for electricity, or reducing any consumables. How labor productivity is measured, consider several measurement methods:

1. 

   Natural method. Labor productivity is the division of the amount of output, which is calculated in kind (kilogram, piece, ton, liter) by the number of employees. The main advantage of this measurement method is ease, clarity and convenience. And the disadvantage of this method is that it cannot be used in those areas of activity where a wide range ofproducts in different containers and packages. One of the varieties of the natural method of measurement is using conditionally natural units. At the same time, conversion factors are used, where different types of products and goods are converted into conditional ones. In turn, conditional production is understood as production in larger quantities.

2. Cost Method. Labor productivity is the division of manufactured products, which is expressed in a cost unit, by the number of employees of the organization involved in the production process. The only disadvantage of this method is the change in the price of products, which affects the labor productivity indicator.
3. The method is laborious. In this method, labor productivity is calculated in man-hours and man-days, which are divided by the volume of production, calculated in physical terms. This type is used quite rarely, as it requires careful rationing of labor. But most often, only the work of the main workers is normalized, and accounting for the labor and other costs of the rest of the workers remains uncovered, which makes it difficult to use this method of measurement.

Another measurement criterion: labor productivity is the amount of labor and time spent on one unit of output.

The leaders of many organizations often think about how to increase productivity using non-material and non-monetary factors and motives. American founders of the concept of effective management T. Peters and R. Waterman wrote that the main influence and impact on labor productivity is not working conditions at all, but the attention paid by managers to personnel. As most often happens, employees are in no hurry to complete the entire amount of work on time, very often go for smoke breaks, and do personal business during working hours. Therefore, many employers use effective personnel motivation systems and human resource management methods. Such methods used are justified by their effectiveness, because labor productivity is the amount of output produced by one employee per unit of time.

It's not even about the amount of wages, bonuses and bonuses, but that the essence of a person requires constant moral support, motivation and regular encouragement. Sometimes a simple human "thank you" plays a huge role in building employee loy alty and commitment to the organization. Knowing and feeling the support from the employer, the employee knows that his work is valued, he is heard and listened to, his initiative and responsibility are encouraged, such small but significant moments significantly increase the employee's labor productivity.