EFFICIENCY OF LABOUR. Definition of efficient labour force: Efficiency of labour may be defined as the ability of labour to increase output without increasing the quantity of labour.

importance of labour efficiency

Increase in efficiency is usually expressed in terms of in increase in output of labour within a shorter period of time without any fall in the quality of goods and services produced. If labour is efficient, the quality of goods and services produced will be high.


  1. Education and training: The Level of education and training received by a worker will go a long way towards increasing the efficiency of labour. A well educated or well trained worker is in position to increase efficiency in his work.

2. Level of technology: High technology will increase the efficiency of labour.

3. Efficient management: When efficient management is in place in any organization, it will go a long way towards improving efficiency of labour.

Personal skill of the worker: if a worker possesses a natural skill of doing a particular job, his work becomes efficient.

Attractive wages: When the salary or wage of a worker is attractive, it will boost or promote the efficiency of the worker.

Weather condition: The physical or weather conditions in a work place can affect the efficiency of Labour.

Hot weather lowers efficiency of labour, cool weather or environment increases efficiency of labour.

State of health of worker: A healthy worker is more likely to be more efficient than a worker who is a sickler.

Efficiency of other factors of production: The efficiency of other factors of production like land, capita land entrepreneur when combined with efficient labour will increase productivity.

Intelligence of the workers: Some workers are highly intelligent, while others are not, highly intelligent workers rarely make mistakes.

Conditions of service: An improved condition of service like the availability of  transport allowance, bonuses, overtime, etc will help boost efficiency of labour

Application of division of labour: The application of division of labour and specialization in any organization can result in the efficiency of labour.

Level of commitment and attitude: The level of commitment and attitude of a worker can affect the efficiency of labour. When a worker is highly committed to his job, this will result in efficiency of labour.

Security of job: Efficiency of labour can be increased if a worker is sure that his job is secured.

Promotion: Frequent promotions of workers in any organization can lead to increase in efficiency of labour.