Labour force is regarded as the second original factor of production. Labour means all kinds of activity, mental or physical, which are undertaken for the creation of utilities. In short any productive effort is called labour.
Efficiency of Labour:
The number of able-bodied men being more or less fixed, the supply of labour mainly depends on the efficiency of labour. The contribution of labour to production depends not only upon the number of production but also upon the efficiency of labour itself. The more efficient is the labour the larger will be the amount of the supply of labour and vice versa.
The efficiency of labour means the fitness of the labour for the production of wealth. The efficiency of labour depends upon the power to work, will to work and efficiency or organization. The factors are discussed as under:
1. Power to Work: The power to work is a question of fitness. The fitness may be physical, technical, intellectual and moral.
(i) Physical Fitness: It means that a worker must possess a sound health, so that he may undertake works. The physical fitness depends on some factors. It can be improved by undertaking following factors.
(a) An adequate supply of nutritious food sufficient clothing, well ventilated house and other necessities of life. In short, it depends greatly on the standard of living of the murder.
(b) It also depends on the climate of a country. Extreme hot or cold climate causes early exhausting and is not favourable to prolonged activity. It is temperate climate which is suitable for hard work. Climate also influences health and strength by determining the nature of food the worker consumes.
(c) Physical fitness also depends to some extent on the racial qualities of the worker. People of some races are naturally hardier than those of other races.
(ii) Technical Fitness: A worker must also possess technical fitness. Workers must be given technical training to make them skilled in their work. Because trained workers are more efficient than untrained ones. Technical fitness also leads to physical fitness by raising the standard of living through higher wages. The technical fitness depends upon the opportunities for the training of the labourer.
(iii) Intellectual Fitness: Mere technical training is not sufficient for improving the efficiency of workers. Efficiency of a labourer depends upon his intellectual qualities and foresight. To develop these qualities, and foresight. To develop these qualities, the workers must be given general education. Compulsory and universal education has greatly improved the efficiency of labour in Europe , America Russia
(iv) Moral Fitness: Moral fitness depends on the qualities of mind which will constitute character. Such qualities depend upon the system of training and discipline which the workers get at their home and school and from persons with whom they associate. Honesty, regularity and responsibility are the basis of moral fitness.
2. The Will to Work: The will to work is mainly dependent on the conditions of employment. If the job is promising with a prospect of rapid promotion. If there is a system of giving rewards to good and energetic workers, and a system of granting certain percentage of profits to them, they will show great zeal to work hard. Again, security of job, holidays with pay and fair and graded wages also help and induce them to be efficient. Lastly to prevent the growth of a dull and num to feeling among the workers there should be freedom and opportunities to change the types of works.
3. Efficiency of Organization: The system of organization displays a great part in making workers efficient. A good employer may contribute greatly to the efficiency of his labourers by providing them with proper tools and raw materials. Even an efficient worker cannot work efficiently with bad tools. The organizer must familiarize labourers with up-to-date machines and methods of production. He must be intelligent enough to pick up the proper man for proper work.
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