# Labor productivity and its impact on the economy of the enterprise

Labor productivity is the effectiveness of useful concrete labor, which characterizes the effectiveness of the expedient production activity of the employees of the enterprise for a certain period of time (hour, day, month, year). Labor productivity is one of the main indicators for assessing the effectiveness of the enterprise.

In general, labor productivity is measured by the number of products (works, services) produced per unit of working time, or by the cost of working time per unit of output (works, services).

The main indicators of labor productivity at the enterprise level are:

production per unit of time; labor intensity of a unit of production.

The output per average worker per unit of time is determined by the formula:

PT = Q / HR,

where PT – labor productivity (output) at the enterprise, rubles / person, pieces / person, norm-hour / person;

Q – volume of products produced in the calculation period, rubles, pieces, standard hours;

CSR – the average number of industrial and production personnel, people.

To assess labor productivity in production units, the following methods of its measurement are used: natural, labor and value.

Natural meters (pieces, tons, liters, etc.) of the volume of production are used to assess labor productivity in units that produce homogeneous products. They are simple and visual, most objectively characterize the growth of labor productivity, but the scope of their application is limited. Natural meters cannot be used in multi-nomenclature production, as they do not allow to determine the total volume of output.

A variety of natural meters are conventionally – natural meters. With this method for determining the total volume of marketable products, the entire range of products is brought to a certain type using translation coefficients. An example of conditionally natural meters is the determination of the volume of production in machine sets, in tractors of a certain model, in conventional cars.

Labor meters are based on determining the volume of production in standard hours. They are used to assess labor productivity in intra-production units.

This method of measuring labor productivity has certain drawbacks:

when comparing the production volumes of the planned and base periods, there is a need to bring them into a comparable form, since the time norms are periodically revised in connection with the introduction of progressive technological processes, new methods of organizing labor and production, which complicates its application; does not take into account the complexity and quality of work; it is difficult to achieve equidistance of norms; Rationing coverage of time-paid workers.

The most common measure of labor productivity is value, which allows you to determine the total volume of production in monetary terms. With this method, labor productivity can be determined by commodity, gross and sold products.

Marketable products include finished products and semi-finished products of our own manufacture, intended for sale on the side, as well as work of an industrial nature.

Gross production characterizes the entire volume of work performed, includes marketable products and changes in the balances of work in progress for the accounting period.

The products sold include marketable products shipped and paid for in the accounting period.

The calculation of labor productivity is carried out for one person-year (average annual output), man-month (average monthly), man-day (average daily) and man-hour (average hourly).

To measure the dynamics, an index method is used, based on a comparison of performance for different calendar periods. The main indices are the growth and growth of labor productivity. The growth of labor productivity is determined as follows:

Ipt = PTf * 100 / PTB,

where: Ipt – labor productivity growth index, %;

PTF – labor productivity in the current period;

PTB – labor productivity in the base period.

Labor productivity can also be estimated by the labor intensity of production, which characterizes the cost of living labor for the production of one product in units of time (hours, minutes).

There are normative, planned and actual laboriousness. Normative labor intensity is determined on the basis of progressive norms and standards, planned takes into account the change in labor intensity in connection with the introduction of innovations. Actual labor intensity reflects the time actually spent on production.

Between the reduction of labor intensity and the growth of labor productivity, there is the following relationship:

Rpt = 100 * St / ( 100 – St),

where: PPT – labor productivity growth, %;

St – reduction of labor intensity, %.

Labor productivity is important in the economy of the enterprise. Productivity growth consists in reducing the cost of living labor for the production of a unit of output. Increasing labor productivity is one of the most important indicators of the development of the enterprise, being the main source of production expansion. It has a significant impact on the final results of the enterprise, such as an increase in the volume of output (works, services), a decrease in its cost, an increase in profits, an increase in the efficiency of the use of fixed and working capital and a number of other economic indicators.

Factors and reserves of labor productivity growth

Opportunities to increase labor productivity are determined by the factors and reserves of labor productivity growth.

The factors of labor productivity growth are understood as quantitative and qualitative changes in equipment, technology, in the organization of production, which, transforming the labor process, contribute to increasing its productivity.

The following groups of factors can be distinguished:

Introduction of innovations aimed at improving the technical level of production. These are mechanization, automation, computerization of production, introduction of advanced technological processes, the use of new types of materials, and the improvement of product designs. Introduction of innovations in the field of management, organization of production and labor. This group of factors includes the creation of automated workplaces (AWP) for managers and specialists, the creation of market structures in the enterprise management system, staff training and motivation, the introduction of automated control systems, multi-machine maintenance, etc. Changes in the structure and volume of production. It allows to achieve an increase in labor productivity through the production of less labor-intensive products, an increase in the share of purchased products, semi-finished products and cooperative supplies, diversification of production, etc.

Reserves for labor productivity growth are internal potential opportunities to increase labor productivity, which can be used in the planning period without significant capital investments. They can be classified:

depending on the place of origin on: reserves of the main production, reserves of auxiliary and servicing production and management reserves. according to the estimated indicators for: reserves for reducing labor intensity and reserves of working time.

The reserves for reducing the labor intensity of products include improving the design and operational properties of manufactured machines, equipment, devices; purchase of progressive equipment on lease, advanced training of workers, introduction of multi-machine maintenance, scientific organization of labor, increase in norms and service areas, application of more modern methods of management, planning, material incentive system, etc.

Reserves of working time are associated with the reduction of losses of working time: the elimination of intra-shift and whole-day downtime for organizational and technical reasons (malfunction of equipment, lack of electricity, materials and tools, etc.); reduction of marriage; elimination of intra-shift and whole-day losses of working time due to violations of labor discipline; reduction of absenteeism due to illness, with the permission of the administration, etc.

The influence of these factors on labor productivity is associated with saving labor costs and reducing the number of industrial and production personnel when working in new conditions compared to the base period.

The increase in labor productivity due to the introduction of innovations is determined by the formula:

PT=E / (CPP + E),

where E is a possible increase (decrease) in the number of industrial and production personnel as a whole under the influence of factors of growth in labor productivity, people;

PPPP – the number of industrial and production personnel, calculated for the planned volume of production while maintaining the basic output (initial number), people;

When determining the increase in labor productivity due to individual factors, a possible saving of the number of employees due to the influence of the corresponding factor is put in the fraction numerator.