Efficiency of labour refers to he ability of an employee to
complete one task given within the time and without any wastage of
resources.Four factors which determine the efficiency of labour are:
a) Employer-employee relation: Efficiency of labour also depends upon the employer-employee relations.
If the relations between the two are friendly and cordial, efficiency of
labour will be high.
b) Social conditions: If the society to which the workers belong is backward, and is based on
caste and creed relationships, workers will not work in cooperation with
workers belonging to other castes. Thus labour efficiency will be low.
c) Climatic conditions: The climate of a place also determines the efficiency of labour in a
country. Workers who live and work under hot climate become tired soon
both physically and mentally. As a result, their efficiency declines.
d) Wages: A worker who receives sufficiently high wages which ensure an adequate
standard of living will have high efficiency. A low-paid worker always
grumbles and is unable to put his heart into the job. Consequently, his
efficiency is low.