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IndustrIal ProductIvIty and Work EnvIronmEnt
Meaning of productivity
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Production refers to the output whereas productivity measures how efficiently the resources
are utilised to generate specific output level
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Basically, it is the
relationship between the amount of output and the number of inputs used to make the
product or goods
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Productivity implies value addition on input resources
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Productivity is computed by dividing average output per period by the total costs incurred or
resources consumed in that period
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For example, let's say that a factory produces $10,000,000 worth of laptops in a month by
employees whose total labour hours came to 5,000 hours
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Factors affecting Industrial Productivity
1) Nature of production process
The nature of production process determines the level of productivity of an industry
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Capital intensive production process
proves to be an efficient, cost effective and speedy process
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Skilled manpower ensures higher
industrial productivity whereas less qualified manpower results in lower productivity
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If workers are provided with better working
conditions, their productivity rises and so does the productivity of the organisation
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Organisations with sound financial position can allocate
funds for productivity improvement programs whereas those with less financial resources have
lower productivity because they cannot invest funds in assets which can enhance production
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Both overutilisation and underutilisation
of capital should be avoided
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The management of organization
should be scientific, professional, future-oriented, sincere, and competent
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They should make optimum
use of the available resources to get maximum output at the lowest cost and maintain good
relations with the workforce
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Duties should be properly allocated
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The line and staff relationships should also be clear
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There should be a division of labour and specialization as
far as possible
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6) Technical factors
Technical factors include proper location, layout and size of the plant and machinery, correct
design of machines and equipment, research and development, automation and computerization,
technical know-how, etc
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In India, application of mechanical power, introduction of semi-automatic and
automatic machines, and higher degree of specialisation have contributed a lot towards the rise
in industrial productivity
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They should also maintain good relations with the government
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Certain industries may be granted protection and incentives may be given to others
for development in the view of national interest
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Business unit located near
source of raw material supply has location advantage
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Significance of higher Industrial Productivity
1) Higher profit and financial stability
Higher productivity enables the company to produce more output, facilitating higher sales and
making higher profits
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Surplus revenue brings financial stability allowing organisations to meet
competition and face business challenges effectively
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Reddy’s Laboratories Ltd
etc increased their productivity and made huge amounts of profit
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It ensures optimum use of materials,
financial, technological, natural, and human resources
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3) Innovation and growth
Higher productivity allows organisation to allocate resources to innovation and research
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To compete in the market, businesses come up with innovative products/ services,
machinery, methods, processes, promotion techniques etc
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4) Facilitates favourable credit rating

A good credit rating implies that the company is financially sound and is capable of returning the
money borrowed
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This enables the business units to raise
funds on favourable terms and conditions
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5) Reduces labour turnover and absenteeism
Business organisations which initiate productivity improvement programs focus on providing
safe and healthy working conditions, adequate remuneration, incentives to employees and
settling their grievances
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Employee satisfaction and
loyalty towards the organization results in low labour turnover and absenteeism
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6) Improves quality of life
Higher productivity benefits different sections of the society by improving their standard of living
such as:
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Workers are provided with better wages, welfare facilities and incentives
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Managers get higher remuneration
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Expansions and exports
require payment of high fees for permits, documentations, registrations etc
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8) Promotes economic development
Improvement in productivity ensures prosperity of industrial sector
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Thus, promotes the economic development
of the nation
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Select competent employees for the organisation:

Selection and recruitment are expensive and lengthy processes which cannot be undertaken again
and again
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New equipment and technology require
training of workers to get the most value
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Motivate the workers:

Motivation is a productivity booster for workers
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Healthy relations with fellow workers and superiors are also necessary
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Introduce welfare schemes:

Welfare schemes like free meals, transport facility etc can also act as a mechanism for increasing
productivity of employees
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Design employee counselling programs:

Employee counselling is a method of understanding and helping individuals who have technical,
personal, and emotional adjustment problems interfering with their work performance
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Arrange health camps for medical check-up

2) Ensure efficient use of financial resources
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Going over budget can hinder the production process
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Replace old and obsolete machines with modern machines:

The advancements made in technology has to be adopted by the organisations from time to time
to stay in competition
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Trained personnel are also required to operate them and
maintain them
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Encourage research and development programs:

Only those Businesses which innovate can increase their productivity
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4) Maximize output
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Avoid production delays through proper planning and scheduling:
Award employees for efficient performance:

If employees are awarded and appreciated for their performance, they are inspired to remain
consistent and improve in future
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Encourage effective two-way communication process between superiors and subordinates
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Give breaks to machines for cooling

National Productivity Council (NPC)
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It was established by the Ministry of Industry, Government of India in the year 1958
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NPC is an autonomous, non-profit making and multipartite organisation operating at the
national level
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It has members representing employers, employees, workers unions, consumers, technicians,
researchers
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2) It publishes literature on various aspects and also communicates it through radio programs,
exhibitions and films
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4) The Council helps in implementation of productivity promotion schemes of Government of
India
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Work Environment
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The term work environment is associated with the working conditions in which the workers
perform their work
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The physical layout of the workplace, the equipment and tools used, the level of noise and
lighting, the temperature and ventilation, and the level of safety and security are all factors
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A positive work environment brightens the mood, improves concentration, and provides a
good working approach for both employees and employers
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Hence, industrial units should
improve work environment to enhance labour productivity and maximise profitability
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Sources of light:
a) Natural light: It refers to sun-moon light
b) Artificial light: Obtained by fixing bulbs, LEDS, lamps etc
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b) Prevents eye strain and employee fatigue
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2) Ventilation and air quality
Ventilation refers to a process of supplying fresh air and replacing impure air by either using
natural or mechanical means
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Sources of ventilation:
a) Natural ventilation:
It is made available to workers by making provisions for windows, roof openings and building
materials such as hollow blocks
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Adequate ventilation supplies fresh air to the workers, thus protecting their health
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Suitable temperature conditions should be maintained as per the employee requirements which
vary according to changing seasons during the year
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Effects of unfavourable temperature on employees:
a) Loss of concentration resulting in human errors like accidents
b) Tiredness or fatigue
c) Physiological and Psychological problems
4) Water

Provision of pure drinking water facilities to employees is essential to quench their thirst
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Lack of water
especially during summer creates dehydration and affects employee health
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Take precautions to avoid contamination
in water and wastage
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5) Sanitation
Industrial sanitation is concerned with the following:
a) Proper disposal of solid, liquid and gaseous wastes
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Groceries,
utensils used for cooking should be washed properly
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c) other sanitation measures:
i) Maintaining cleanliness of workers washrooms and rest rooms
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iii) Washing of floors using disinfectant regularly
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Intense and unbearable noise has the following negative effects:
i) Any noise level beyond 90 decibels damages the ear and may result in permanent hearing loss
for the employees
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iii) Headaches and fatigue
Noise control measures:
i) Proper maintenance of machines helps to minimize noise and vibrations
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These hazards may result in illness, injury or death of worker
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Occupational hazards can be classified into the following groups- physical hazards
(temperature, radiation, noise), biological hazards (bacteria, viruses, blood), chemical
hazards (vapors, chemicals, gases), and psychological hazards (unhealthy relations with
superiors, discrimination)

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OSH – Occupational Safety & Health - India issues guidelines to all industries on well-being of
workers at work place
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To protect workers effectively, employers must know how to recognize these hazards and take
action to eliminate them or provide proper protective equipment
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Types of Occupational Hazards
1) Chemical hazards:
These hazards are the result of exposure to the chemicals at the workplace
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The workers can
be affected by chemicals through inhalation, ingestion and skin contact
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b) Ingestion:
If employee doesn’t wear protective gear such as gloves, small chemical particles may then settle
on the hands
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This can cause
problems to the digestive system
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This may cause
injuries to the skin in the form of rashes or burns
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2) Biological Hazards:
The biological hazards are associated with biological substances that affect the health of living
organisms
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Employees working in health care organizations,
hotels and animal farms are more prone to biological hazards
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For example, Anthrax is an infectious disease which can be transmitted from cattle to a worker
working in an animal farm
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The COVID-19 pandemic has highlighted the risk of biological hazards in the workplace
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The disease can
spread from person to person through small droplets from the nose or mouth which are spread
when a person with COVID-19 coughs or exhales
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3) Psychological Hazards:
It basically refers to the factors affecting the mental health of the workers
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He may not be able to handle work pressures in specific work situations
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The employee may get mentally affected resulting in display of undesirable emotions and
behaviour
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This affects their mental health and results in hypertension,
diabetes, and cardiac problems
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Maybe due to:
i) Conflicts between employees or group of employees (Inter-personal and inter group conflicts)
ii) Sexual harassment at work place
iii) Disturbed labour and management relationship
iv) Exploitation of subordinates by superior
All these issues can cause anxiety, fear, and mental depression in affected employees
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Compliance with Laws
The management must ensure that all statutory laws & conditions relating to occupational
hazards are implemented
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One of the main objectives of the Indian Factories Act, 1948 are to
regulate the working conditions in factories and to maintain health and safety of the workers
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Non- compliance
with these laws can attract penalties
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Provide clean and suitable working environment
The biological and chemical hazards can be reduced to a large extent by maintaining a clean and
healthy surrounding
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Washrooms
should be located at convenient places
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Cleaning staff should be hired for the maintenance
of cleanliness and hygiene in the work environment
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Safeguard workers
Personal protective equipment, commonly referred to as "PPE", is equipment worn to minimize
exposure to hazards that cause serious workplace injuries and illnesses
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It should fit comfortably, encouraging worker
use
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Organisation must install devices to control loud
noise, vibration at work place
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Absorptive materials are installed on walls, ceilings, or inside

enclosures
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Organisation should try to develop friendly work environment through appropriate
stress management techniques
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A downfall in performance of a particular worker should be properly addressed
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Regular machine checks is an elementary
part of ensuring safety at your workplace
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PAT is a simple procedure which will help you maintain electrical safety at your
workplace
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