The important determinants (Factors) of productivity.

The important determinants of productivity are:

(1)Human factors : 

            Human factors plays a significant role in raising productivity. Dimensions of human factor in this context are:

(a)  Ability to work which depends on skills, education, training, intelligence, attitude towards work, capacity to work and experience of the personnel. 

(b) Willingness to work which depends on motivation factors like incentives system of wage payment linked with productivity, workers, participation in management sound and impartial promotional policy, democratic and friendly leadership style, etc. 

(c) Physical conditions to work which include conditions like regionable working hours, better lighting, better ventilation, improve safety devices etc. 

(2) Technological factors :

                         Technological develops plays an important role in influencing productivity in industry. Technological factors include degree of mechanisation technical know how, rationalisation and automation measures, optimum plant capacity utilisation, plant layout, etc.

(3) Managerial factors :

                            Sound and competed management leads to a most effective utilisation of human, financial and technical resources, which has a profound impact on raising organizational productivity. In many progressive organizational management happens to be the exclusive determinants of productivity,despite the efficiency of financial and technological resources. 

(4) Financial factors :

                  Availability of finance helps in modernisation of plant and machinery, research and development acquisition of latest technology, designing training programmes for workers, etc. All these things added by finance are instrumental in raising productivity.

(5) Natural factors :

                                Natural factors like geological and climate factors have an impact on productivity. Foe example productivity of labour in extreme climates that too hot or too cold is definitely lower.  Again, productivity in extractive industries like coal mining is much influenced by the depth of coal mines, thickness of coal sems, etc. 

(6) Sociological  factors :

                        Social institutions, traditions, influence productivity. For example : In India the joint family system which is now disappearing fast, has been much responsible for low demand productivity as the number of joint family has a tendency to depend on head of the family (Karta) for maintainence and support. Likewise religious factors were in hindrance in productivity as too much belief in faith, god discourage people to work hard. 

(7) Political factors :

            Law and order situation in society, favourable and unfavourable government policies like licensing, taxation etc, have positive also negative impact on business productivity.

(8) Infrastructural facilities :

                 Infrastructural facilities like banking and financial systems, transport and communication systems etc. also have a significant impact on business productivity.