Tuesday, 3 May 2011

Define the term efficiency of labour and discuss those factors which determine and promote the efficiency of labour

EFFICIENCY OF LABOUR :- The working capacity of the labour is called his efficiency being given the same time limit and given the same type of work.


1. PERSONAL QUALITIES :- Some people have some personal qualities and they are suitably built foe certain heavy labour. On other hand some people are very suitable for mental labour. Family background also pays very important role in this regard.

2. EDUCATION :- It is the basic and essential element which determines the efficiency of labour. Educated labourer is more efficient as compared to the illiterate worker.

3. TRAINING AND SKILL :- The modern world requires highly skilled labourers. A labourer with sound technical training will be more effective as compared to a labourer who has no training. It increases the efficiency of the labourer.

4. CLIMATIC CONDITIONS :- Climates also plays an important role in increasing or decreasing the efficiency. Hot weather has a vital factor for the low efficiency of labour in Asia and Middle East. On other hand cold weather is an important element for increasing the efficiency in labour in U.S.A and Europe.

5. WAGES AND BENEFITS :- If wages, allowances, bonuses and other frigs benefits are given to the workers, then their working efficiency increases. Labourer works very hard if he has attractive salary. On other hand if wages rate is low then efficiency of the labourer will be also low.

6. COMBINATION OF PRODUCTION FACTORS :- If the other three factors of production combination is ideal then efficiency of labourer will be high otherwise low.

7. WORKING HOURS :- If working hours of labourer are reasonable then the efficiency will be high. If the working time is very long and without extra payment then efficiency of the worker will be low.

8. ENVIRONMENT :- If the working environment is pleasant then efficiency of labourer will be high. It is observed that labourer working in air conditions rooms and healthy conditions are more efficient as compared to others.

9. RACIAL QUALITIES :- By birth some races are very hard working and strong built so they are more efficient as compared to other races.


Following are the important factors which promote the efficiency of labour.

1. INCREASE IN WAGES :- Increase in wages and fringe benefits promote the efficiency of labour. When wages and incentives will increase it will make the labourer hard worker and efficient.

2. TECHNICAL EDUCATION :- Vocational, technical and commercial colleges, should be opened to provide technical skill to the people. Modern industry, agriculture, banking, transport and commerce require highly skilled persons. Such type of training and skill is provided in the colleges and universities.

3. CARE OF HEALTH :- Health facilities should be provided to the labourers. A healthy worker can work more efficiently as compared to sick worker. All the factory owners should opened the health clinics in their factories and regular medical check-up should be compulsory.

4. INCREASES IN ALLOWANCES :- Various types of allowances like dearness and bonus must be increased. Special allownces should be given to the efficient workers.

5. LABOUR LAWS :- Government should also frame the strict labour laws. In case of accident special compensation should be given. In case of industrial dispute courts should be established. This step will provide the security to the labourers and they will work with full concentration.

6. SPECIAL STORES :- To provide the goods on lower rates to the labourers special stores should be opened for the workers.

7. ESTABLISHMENT OF THE CANTEEN :- Lunch and dinner facility should be provided to the workers. On the lower rates food should be provided during the working interval. In this way time of the workers will be saved and their efficiency will increase.


shara,  9 May 2011 at 19:00  

these are some really good info it helped me a lot

Anonymous,  23 January 2012 at 12:45  

Well explained.
Labour is a human factor and therefore can be motivated through increase in his wage rate and other working benefits. All this contributes greatly to the efficiency of labour.

Emanuel James 11 January 2013 at 02:43  

labour are efficient when power and will are applied

Anonymous,  24 April 2013 at 01:08  

that did help me in my economics class. i appreciate ur effort 2 post it.

Ben Benson,  18 July 2014 at 03:29  

that really helped me in my final exams

Anonymous,  26 October 2014 at 10:01  

It really helped to underscore the efficiency of labour in my assignment & I really thank GOD for your life.

Anonymous,  26 October 2014 at 10:05  

It really helped to underscore the efficiency of labour in my assignment & I really thank GOD for your life.

FOJE 30 January 2017 at 05:08  

How can power and will be an efficient labour in the absence of an attractive wages. One factor among others that determine efficiency is remuneration package as that stands to be a motivational factor to any work done

oriko oriko 5 June 2017 at 13:49  

this is really interesting. but more light should be thrown in the meaning of 'efficiency of labor' to enhance easier uinderstanding of the topic

Anonymous,  22 December 2017 at 00:20  

Good work. Helped me with my economics assignment

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