Factors Influencing Productivity Productivity is outcome of several interrelated factors, which may broadly be divided into various categories.

1) Human Factors: Human nature & human behavior are the most important determinants of productivity. A human factor includes both ability to work & willingness to work. a) Ability to work: Productivity of an organization depends upon the competence & caliber of its people- both workers & managers ability to work is governed by education, training, experience, aptitude etc of the employees. b) Willingness to work: Motivation & Morale are very important factors that determine productivity. These are affected by incentives schemes, labour participation in management, communication system, informal group relation, union management relation, promotion policy, quality of leadership, sanitation, ventilation, subsidized canteen, working hours, company transport etc. 2) Technological Factors: Technological Factors exert significant influence in the level of productivity. These includes the followings: a) Size & capacity of plants. b) Product design & standardization. c) Timely supply of material & fuels. d) Rationalization & automation of measures. e) Repairs & maintenance. f) Production planning & control. g) Plant layout & location. h) Material handling system. i) Inspection& quality control j) Machinery & equipment used. k) Research & development. l) Inventory control. 3) Managerial Factors: The competence & attitude of managers have an important bearing on productivity. In many organization productivity low despite latest technology & trained manpower. This is due to inefficient & indifferent management. Competent & dedicated managers can obtain extraordinary results from ordinary people. Job performance of employees depends on the ability & willingness to work. Management is the catalyst of both. Advanced technology requires knowledgeable workers who in turn

work productively under professionally qualified managers. No ideology can win a greater output with less effort. It is only through sound management that optimum utilization of human & technical resources can be secured. 4) Natural Factors: Natural factors such as physical, geographical & climate conditions exert considerable influence on productivity, particularly in extreme climates (too cold and too hot) tends to be comparatively low. Natural resources and water, fuel, minerals influence productivity. 5) Sociological Factors: social customs, traditions and institutions influence attitudes towards work and job. For instance, bias on the basis of caste and religion, etc. inhibited the growth of modern industry in some countries. Joint family system affected incentives to work hard in India. Close ties with land and native place hampered stability and discipline among industrial labour. 6) Political Factors: law and order, stability of government and harmony between states etc. are essential for high productivity in industries taxation policies of the government influence willingness to work, capital formation modernization and expansion of plants. Industrial policy affects the size, capacity of plants. Tariff policies influence competition. Elimination of sick and inefficient units also helps to improve productivity. 7) Economic Factors: size of the market, banking and credit facility, transport and communication system etc. is important factors influencing productivity.