Labour can be defined as all human exertion put into the production of goods and services.

The efficiency of labour can be defined as the productive capacity of a worker.

Several factors affect the efficiency of labour including racial qualities, climate conditions, education, working hours, etc

1. Racial Qualities: Efficiency largely depends on the heredity and racial characters.

It is often believed that the efficiency of Japanese labour is higher than other human races.

2. Climate factors: Not every climate condition is conducive for labour.

A cool climate is generally more conducive to prolonged work than a hot climate.

3. General and technical education: A labourer's efficiency is highly influenced by the amount of education and training he or she has received.

Generally, a highly educated or highly technical trained person is more efficient than an uneducated or untrained person.

In general, a person with a high level of education or technical training is more efficient than an uneducated and/or untrained person.

4. Working hours: As a human factor of production, labour requires leisure and resting time to stay refreshed and efficient.

Putting a person under long working hours without sufficient resting intervals reduces his efficiency.

5. Working conditions and environment: This is another important factor than can impact the efficiency of labour.

People generally perform better in a well-ventilated environment than in a hot environment.

Similarly, workers perform better when the environment is tidy than when the environment is dirty.

As a result, excellent working conditions and an environment are required to enhance the efficiency of labour.

6. Remuneration: This is another major factor affecting the efficiency of labour.

As a human factor, labour must be motivated to improve its commitment and efficiency.

One way of motivating labour is through remuneration, which may be in the form of wages, employee benefits, salaries or wages.

While paying all of these things will enhance the efficiency of workers, remunerating workers fairly and equitably will go a long way towards increasing the efficiency of workers.


7. Availability of machinery: The right quantity of labour combined with sophisticated equipment will surely increase the efficiency of labour.

This is because the presence of sophisticated equipment allows more output to be produced from a given amount of labour, thereby increasing the marginal output per labour.

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