Labor productivity is an indicator of the efficiency of labor activity of employees of an enterprise. It characterizes the volume of output or output of services (output) per unit of labor input.
Instructions
Step 1
The level of labor productivity is characterized by two indicators: product output per unit of time (direct indicator) and labor intensity of production (inverse indicator).
Step 2
Production output per unit of working time is defined as the ratio of the volume of products produced and the cost of working time. It shows what volume of products in physical or value terms was created by employees in an hour, day, week, month.
Step 3
The inverse indicator - labor intensity - is calculated as the ratio of the cost of working time to the volume of products produced. It shows how long it took to produce a unit of output.
Step 4
Depending on how labor costs are measured, several levels of productivity are distinguished. Average hourly output is defined as the ratio of the volume of products produced to the number of man-hours worked during a specified period of time. This indicator reflects the average output of a worker for 1 hour of actually worked time.
Step 5
Average daily output is calculated as the ratio of the volume of products produced to the number of man-hours worked by all workers in the enterprise. This indicator characterizes the degree of industrial use of the working day.
Step 6
Average monthly output is defined as the ratio of the volume of products produced and the average number of workers. In this case, the average number of labor does not mean labor costs, but its reserves.
Step 7
Production per employee, i.e. his labor productivity is defined as the product of the following indicators: average hourly output, working day duration, working period duration (week, month, quarter) and the share of workers in the total number of industrial and production personnel.
