Here is a compilation of essays on ‘Productivity’ for class 9, 10, 11 and 12. Find paragraphs, long and short essays on ‘Productivity’ especially written for school and college students.

Essay on Productivity

Essay Contents:

  1. Essay on the Meaning of Productivity
  2. Essay on the Significance of Productivity
  3. Essay on Production vs. Productivity
  4. Essay on Factors Influencing Industrial Productivity
  5. Essay on Steps to Increase Productivity
  6. Essay on Difficulties in Managing Labour Productivity

Essay # 1. Meaning of Productivity:

The term ‘productivity’ represents goods and services produced in relation to the resources utilised in their production. It may be defined as the ratio of output to input. Higher productivity means efficient use of inputs and vice versa.


According to Peter Drucker, productivity represents the balance between all factors of production that will give the greater output at the smallest effort. In technical terms, productivity may be defined as a relationship between output and input.

According to the International Labour Office, “The ratio between output and one of the factors of input is generally known as productivity of the factor considered.” Thus, productivity means the ratio between output and any of the factors of production, say, labour, capital, materials, land, etc.

Generally, the term ‘productivity’ is used synonymously with the productivity of labour. The International Labour Organisation opined that in as much as interest most often centred around the relationship of production and labour, the term ‘productivity’ always refers to output of the corresponding input of labour.

Though there is a difficulty in arriving at the homogeneity concerning labour due to difference in scale, energy, training, environment, incentive, rates of pay, etc., this ratio of output to labour is universally acknowledged to have some uniformity, subject to those limitations mentioned and probable adjustments in actual working out of the productivity in quantitative terms. The criticism of this definition is done on the ground that it does not take into consideration all the factors of production though all of them have combined influence on total production or output.


Essay # 2. Significance of Productivity:

Productivity is an important element in the process of economic growth. When the productivity in an industry is increased, the rate of economic growth is increased automatically. Increase in productivity in an industry leads to higher production with the most economical use of the available resources.

In other words, the cost of production is decreased. This benefits the customers by reducing the prices, the workers by increasing their wages, and the entrepreneurs by increasing profits. Since the income of the people increases, their demand is also increased. Increase in demand makes it possible to start new industrial units and generate more employment.

Thus, it is obvious that higher productivity is instrumental in the economic growth of any nation. The drive for higher productivity makes the entrepreneurs conscious about the most economical use of the available factors of production.


The productivity drive has higher significance in case of developing countries which are facing the problems of inadequacy of capital, raw materials, managerial personnel, etc.

Some positive effects of productivity are as follows:

i. Increase in the efficiency of various factors of production.

ii. Economical use of various factors of production. This decreases the total cost of production per unit.


iii. Decrease in overhead cost.

iv. Better quality of goods at lower price. If increases the standard of living of the people.

v. Increase in wages and salaries to the workers. The workers also get better working conditions and higher bonus.

vi. Profits are increased and this facilitates internal financing of expansion programmes.


vii. Better economic strength and stability of the enterprises.

viii. Overall growth of the economy as has been discussed earlier.

Essay # 3. Production vs. Productivity:

There is a difference between the two terms, namely, production and productivity. If inputs are increased and a large production is obtained, it does not necessarily result in increased productivity. But if production is increased with the use of the same inputs or the same output or production with smaller input, productivity is said to have increased.


Production is concerned with the end results of the contribution of various factors of production of the volume, value or quantity of goods and services turned out by a plant, whereas productivity relates the volume, value or quantity of production to the resources utilised in the production of such goods and services.

Thus, productivity shows the efficiency of the production unit whereas production represents the total volume of output produced or manufactured.

Essay # 4. Factors Influencing Industrial Productivity:

The factors affecting industrial productivity are inter-related and interdependent and it is difficult task to evaluate the influence of each individual factor on the overall productivity of industrial units.


The factors which influence productivity briefly examined below:

i. Technological Advancement:

The application of motive power and mechanical improvements to the process of production has accelerated the pace of industrialisation of an unprecedented degree, and has given us the vision of the vast and unexplored frontiers that still lie ahead of us in the realm of applied science and technology.

The technological factors include degree of mechanisation, technical know- how, product design, etc. Improvement in any of the technological factors will contribute towards the increase in industrial productivity.

ii. Quality of Workforce:

The human resource plays a significant role in raising industrial productivity in most of the industries. If the labour force is not adequately qualified and/or is not properly motivated, all the steps taken to increase the industrial productivity will have no result. The employees’ performance and attitudes have an immense effect on the productivity of any industrial unit.


There important factors which influence the productivity of labour are:

(a) Ability of the worker

(b) Willingness of the worker, and

(c) The environment under which he has to work.

iii. Availability of Finance:

The greater the degree of mechanisation to be introduced, the greater is the need for capital. Capital will also be required for investment in research and development activities, advertisement campaign, better working conditions of the workers, upkeep of plant and machinery, etc.


iv. Managerial Talent:

The role of managerial talent has increased with the advancement in technology. Professional managers are required to make better use of the new technological developments. Since the modern enterprises are run on a large scale, the managers must possess imagination, judgement and willingness to take initiative.

The managers should be devoted towards their profession and they should understand their social responsibilities towards the owners of the business, workers, customers, suppliers, Government and the society. It is essential if the managers want to manage their organisations effectively. The managers should have conceptual, human relations and technical skills in order to increase the productivity of the enterprise.

v. Government Policy:

The industrial policies of the Government have also an important impact on the industrial productivity. The Government should frame and implement such policies which create favourable conditions for saving, investment, flow of capital from one industrial sector to the another and conservation of national resources.

Certain industries may be granted protection and incentives may be given to the others for their development in view of the national interest. The Government should follow the taxation policy which encourages the growth and expansion of business.


It is also the duty of the Government to check the growth of monopolistic enterprises so that the interests of the consumers and the workers are not jeopardized.

vi. Natural Factors:

The natural factors such as physical, geographical and climatic exercise considerable impact on the industrial productivity. The relative importance of these factors depends upon the nature of the industry, goods and services produced and the extent to which physical conditions controlled.

Essay # 5. Steps to Increase Productivity:

The following measures should be taken to increase productivity:

i. Improved Raw Materials:


Row materials of right quality should be procured by every industrial unit. This will reduce wastage and increase the productivity of workers and machines.

ii. Better Machines:

Latest machines and equipment should be procured by the industrial units as they are more efficient and economical.

iii. Good Working Conditions:

There should be proper arrangements of lighting, ventilation, cleanliness, cooling and heating of work-place. If these arrangements are not proper, productivity is likely to be low.

iv. Scientific Selection of Workers:


Right type of employees should be appointed, on various positions of the organisation. They should also be provided adequate training in the use of raw materials, machines, etc.

v. Provision of Incentives:

Workers should be offered incentives to increase their productivity. Workers with goods record of productivity should be recognised and suitably rewarded. Productivity linked bonus plan may be introduced to get good response from the workers.

vi. Harmonious Relations:

There should be industrial peace in the organisation. Cordial relations between the workers and the management are key to higher productivity. Higher production targets can be achieved if there are minimum possible conflicts between the workers and the management.

vii. Quality and Cost Consciousness:

Both the workers and the management should be conscious about cost and quality. This will reduce unnecessary wastage in the production process.

viii. Industrial Research:

The government should encourage industrial research by the industrial units and research institutions. New methods and techniques of production will increase industrial productivity in the country.

Essay # 6. Difficulties in Managing Labour Productivity:

The difficulties in managing productivity of labour are due to the following factors:

i. Lack of commitment of management to productivity enforcement.

ii. Lack of systems to measure productivity.

iii. Difficult industrial relations climate.

v. Bad methods and bad management of resources contributing to low productivity.

Normally, not in all the cases, the effect of productivity is seen reflected directly and immediately in results like profits. There are many other manifestations of poor shop floor productivity.

Some of them are:

(i) High overtime;

(ii) High idle time;

(iii) High absenteeism;

(iv) Low output,

(v) More rejections;

(vi) Rework and rectification;

(vii) More waiting times;

(viii) Inadequate utilisation of machinery;

(ix) Surplus manpower; and

(x) Frequent work stoppage.

It is always worth developing a measurement system consisting of meaningful indices reflecting the above variable in appropriate ratios.

Keeping in view the strength of the unions, the control of labour productivity has ceased to be an easy task. Even minor changes invite the attention and involvement of the unions. Where the industrial relations climate is unsatisfactory, maintaining productivity requires most of the energy of the management, if the management is really committed to enhancing productivity.