Forces affecting the Industrial productivity

Productivity is a technique of extracting greater output from the inherent input creativity of various resources through the conversion efficiency. The conversion efficiency which changes the level of productivity is largely affected by numerous factors. All these factors affect the level of productivity either individuality or jointly. Some important are classified as under:

1) Technological;
2) Managerial;
3) Financial
4) Natural
5) Sociological, and
6) Government

Technological factors: The technological advancement always strives to achieve the increased of production with minimum of costs and efforts, which always result into increased productivity e.g. application of mechanized power, automation etc

Managerial factors: Progressive and imaginative managerial skill always taps greater output of the human and nonhuman resources.
Good organizational relationships: Delegation of authority, true recognition of human factor, imaginative judgment results into increased productivity and contented labor force.

Financial factors: The availability of financial resources enables the organization to spend moneys for the research and development, employment of professional executives, adaptation of latest technology, provision of amenities, effective stock piling and material control. All these factors directly affect the level; of the productivity. The low level of productivity and poor industrial growth of the underdeveloped countries is due to poor capital formation and constraints on the financial resources.

Natural factors: The natural resources like geographical physical and climatic conditions directly affect the level of the productivity. The effect of these factors is confined to certain type of industries and the possibility of bringing them within the control e.g. humidification in textile industry quality thickness ad depth of the mineral resources; climate effect on the labor efficiency etc.

Sociology factors: The generic characteristics, racial quality etc has a great impact on the productivity of the labor. The productivity is also affected by the attitude of the workers towards the work and the approach of the management towards the working force and the provision of working conditions.

Government Policy: The Government policy regarding financial incentives taxation policy, tariff policy, industrial licensing labor laws etc also affects the productivity e.g. provision of concessional loans for modernization tax incentives for the expenditures on research and development etc help in increasing the level of productivity.

Productivity Movement in India:

Productivity in industrial under takings has assumed greater importance in recent years, especially due to increased national and international competition and limitation of resources. It encourages efficient utilization of scarce resources.

After independence Government of India intended to increase productivity consciousness in the country. So in 1952 and 1954 it invited the team of experts of International Labor Organization (ILO) with a view to establishing Productivity Center in the country. In 1957 Government of India appointed a Committee on Productivity under the Chairmanship of DR Vikram Sarabhai. It visited Japan to study the constitution, administration and working of Productivity Center of Japan. The Committee submitted its report in March 1957. On the basis of the recommendations of the Committee, the national Productivity Council (NPC) was established in India in February 1958. NPC is registered as an independent autonomous body under the Societies Registration Act, 1860.

The main objects of he NPC are:

1) To promote productivity consciousness in all sectors of national economy
2) To disseminate the knowledge of the concepts n techniques of productivity and demonstrates their values and validity in the practical application.

NPC is an autonomous national body having 75 members representing various groups as under:

a) Central Government (12 members)
b) Representatives of employers (12 members)
c) Representatives of employees (12 members)
d) Representatives of Local Productivity councils (12 members)
e) Representatives of several national, professionals and technical organizations

The administration of the NPC is done by the Governing Body. The Governing Body is elected from among the members of the NPC with 25 members. It is represented by five members each of Central Government, employers and employees plus representatives of local Productivity Councils. It is a policy making body and meets once in a quarter.

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