Productivity of Human resources

1. Productivity of Human resources
Prepared by
S.SELVAPRAKASH

2. LABOUR PRODUCTIVITY
 It can be measured in terms of output per
labour hour.
Productivity =
Outputs
Inputs

3. Measures of Productivity
 Performance ratio =
(Actual Productivity / Expected Productivity)

4. Variables Affecting Labor Productivity
 Physical work environment
 Technology, equipment, materials, lighting, layout
 Product quality
 Defects, scrap, rework
 Employee job performance
 Employee ability, motivation
 Employee Job Performance

5. FACTORS THAT AFFECT THE PRODUCTIVITY
1) Lack of material
2) Labour strikes
3) Delay in arrival of materials
4) Financial difficulties of the owner
5) Unclear instruction to labourer and high absentism of labours
6) Bad weather (e.g. rain, heat, etc.)
7) Non discipline labour and use of alcohol and drugs
8) Bad leadership

6. LABOUR PRODUCTIVITY
 Technological improvement, better
organization and management, the
development of better method of production by
labor and management, greater ingenuity and
skill by labor are the responsible for the
increase in productivity.
 Actually, productivity measures the
contributions of all the resource factors – men,
material, machines, and management.

7. GUIDELINES FOR IMPROVING THE LABOUR
PRODUCTIVITY
1.Properly training to the labours
2.Motivation to workers towards project completion
3.On time payment to the workers
4.Systematic flow of work
5.Properly , clearly & in time supervision
6.Maintain work discipline
7.Facilities to the labourers
8.Premonsoon plan to avoid work stop
9.Maximum use of machinery and automation system
10.Advance equipment planning
7

8. MEASURING LABOUR PRODUCTIVITY
Single-factor measures
Output / (Single Input)
All-factors measure
Output / (Total Inputs)

9. 9
Single-factor Output Output Output Output
measures Labor Machine Capital Energy
All-factors Output
measure All inputs
Measures of Productivity

10. Single Factor Approach to Measuring
Productivity
 Capital - Number of products produced
Divided by asset value
 Materials - Number of products produced
Divided by dollars spent on materials
 Direct Labor - Number of products produced
Divided by direct labor-hours
 Overhead - Number of products produced
Divided by dollars spent on overhead

11. 11
10,000 Units Produced
Sold for $10/unit
500 labor hours
Labor rate: $9/hr
What is the
labor productivity?
Example: Single Factor Productivity

12. 12
 10,000 units / 500hrs = 20 units/hr
 (10,000 units * $10/unit) / 500hrs = $200/hr
 10,000 units / (500hrs * $9/hr) = 2.2 unit/$
 (10,000 units * $10/unit) / (500hrs * $9/hr) = 22.22
The last one is unit-less
Example: Labor Productivity

13. 13
All-factors Goods or Services produced
measure All inputs used to produce them
All Factors

14. 14
10,000 Units Produced
Sold for $10/unit
500 labor hours
Labor rate: $9/hr
Cost of raw material: $30,000
Overhead: $15,500
Example

15. 15
Output
Labor + Materials + Overhead
(10,000 units) * ($10)
(500)*($9) + ($30,000) + ($15,500)
AFP = 2.0
Example : All-Factor Productivity
AFP =
AFP =

16. Thank you