In general terms, labor productivity is understood as an indicator that characterizes the productivity of work, the return on each unit of the labor resource involved. The results of labor are the following: added value, services, goods, service, supply, cost, quality, quantity.
The resources are capital, labor, equipment, materials, land, energy, information, technology.
Labor productivity: indicators
To understand the essence of performance, there are two aspects. This is labor productivity, determined by the ratio of the quantity of goods produced and the cost of labor resources that were required for this.
The second aspect is labor efficiency. This is the ratio of the result of economic activity and expenses that are associated with the use and attraction of labor resources, otherwise it is an indicator of the volume of services or products produced per unit of labor costs.
Distinguish such indicators as productivity across the industry, region, society, productivity at the enterprise and an individual employee.
Each organization has its own performance indicators, which may decrease or increase depending on various factors.
With increase, the share of costs in goods decreases, and the amount of labor costs of the past period increases, however, in general, this indicator, concluded in each unit of goods, decreases.
Labor productivity indicators depend on the intensity, influence of the magnitude of labor intensity, as well as on the technical and technological state of production.
Extensive indicators of labor productivity reflect the degree of use of work time, as well as its duration per shift with a constant value of other parameters. With the effective use of working time, there is less downtime, time spent outside production, and the longer the shift takes, the higher is labor productivity.
Such indicators of labor productivity as intensity show the degree of work tension per unit of time. They are measured by the amount of human energy expended over a period. With greater intensity, labor productivity also increases. The maximum value of this indicator depends on the mental and physiological capabilities of the human body.
Productivity has sources that have no limits. This is scientific and technological progress, technological and technical improvement of production, the emergence of new types of energy and materials.
There are also such indicators of labor productivity as labor intensity and output. The latter is calculated by the ratio of the number of services and goods issued to the time spent on it. The complexity shows how much time is spent on the production unit. There is an inverse relationship between the described indicators.
Productivity growth leads to an increase in the volume of products that are produced per unit of time, while maintaining its quality. There is also an increase in the quality of goods, labor costs for production are reduced , profit margins are increased , and the period of circulation and production of goods is reduced.
These types of manifestations of increased productivity may exist in various combinations. And in combination with other species, or even separately, indicates a high value of productivity for the economy of the enterprise and for society as a whole.