There are two general approaches to measuring labor productivity: through indicators of output per unit of labor (time) or labor intensity - the cost of labor (time) to produce a unit of volume of products (services).
The first indicator of labor productivity is production output (B). An indicator of the volume of products (work, services) produced per unit of labor costs. Output is a direct indicator of labor productivity, since the more products are produced per unit of labor input, the higher the level of labor productivity. Calculated using the formula:
Where V- volume of production; T - labor costs for a given volume of production.
Time worked is measured in man-hours or man-days worked. In accordance with this, when studying labor productivity, indicators of the average hourly and average daily labor productivity of workers, as well as the average monthly (quarterly, annual or for any period from the beginning of the year) labor productivity of workers or workers are used. These indicators are calculated as follows.
Average hourly output of a worker:
Where V- volume of products (works, services) produced in the reporting period; - man-hours actually worked by workers in the reporting period.
Average daily output of a worker:
where are the man-days actually worked by workers in the reporting period.
Average monthly (quarterly, annual or for any period from the beginning of the year) production of a worker (employee):
Where - average number workers (employees) in the reporting period.
Methods for determining output are classified depending on the unit of measurement of production volume:
■ natural (conditionally natural) - used for the production of homogeneous products at individual workplaces, production teams, at the enterprise, i.e. when determining the production of a specific type of product (work and services). When using this method, production is expressed in natural units of measurement (B = q: t, Where q- physical volume of production of homogeneous products);
■ cost (based on the cost indicators of manufactured or sold products) - when the enterprise produces heterogeneous products. When using this method, production is determined in monetary terms ( 
,
where C is the price of a unit of production, rubles);
■ labor ( measurement of labor productivity is based on taking into account the volume of products produced in the cost of working time (standard hours)). Its advantage over others is that the calculations use a more accurate meter - the labor intensity of each type of product, regardless of the degree of its readiness (products, semi-finished products, work in progress). In this case, both actual and standard labor costs are widely used.
The cost method is widely used. However, if labor productivity (LP) is calculated based on manufactured or sold products, then this method overestimates LP, since the result includes the cost of past labor - the raw materials used, the volume of cooperative supplies, etc. This drawback is eliminated when calculating output on the basis of net output or profit, as well as when calculating the profitability of labor, which reflects the ratio of profit to costs.
If we are talking about labor productivity in industry and the denominator, instead of time spent, uses the average number of workers on the payroll or the average number of workers, then the output indicators can be determined accordingly using the formulas:
Accordingly, the average number of industrial production personnel and the average number of workers, people.
The second indicator of labor productivity is the labor intensity of products (Te). This indicator of individual labor productivity characterizes the cost of working time (the cost of living labor) to produce a unit of output or to perform a unit of work.
Among the types of labor intensity of products, depending on the composition of included labor costs, the following are distinguished:
· technological labor intensity () - reflects all labor costs of the main workers (piece workers and time workers) directly affecting the objects of labor;
· labor intensity of production maintenance () - labor costs only for auxiliary workers engaged in production maintenance;
· production () - all labor costs of main and auxiliary workers; determined by the formula:
· labor intensity of production management () - labor costs of employees: managers, specialists and other employees;
· total labor intensity () - labor costs for the production of products of all categories of production equipment of the enterprise. It is determined by the formula:
· total labor intensity (), determined by the labor costs of all categories of PPP workers:
The total labor intensity of a unit of production is determined by the formula:
Where T- time worked by employees of all categories of production staff of the enterprise (shop), h; V- natural volume of manufactured products, pcs. (either in tons, meters, etc.).
The labor intensity of products is an inverse indicator of labor productivity. Therefore, the indicators of production and labor intensity of products are inversely related:
The actual and standard labor intensity of products are distinguished. The first is used in the analysis process, the second - when planning labor productivity.
The actual labor intensity of the product is determined by the actual labor costs (in hours) to produce a unit of product.
Standard labor intensity determines the amount of necessary (standard) labor costs (in standard hours) for the production of a unit of product under the conditions of existing production.
The ratio of the standard labor intensity of products () to the actual labor intensity () determines the coefficient of fulfillment of time standards:
Thus, the concept of “product labor intensity” is closely related to labor standards, rationing, which is one of the directions for increasing labor productivity.
The categories of labor costs, labor intensity and labor productivity are often found in scientific and practical activities to express economic indicators of efficiency (optimization) decisions made. Understanding the significance of these categories for analyzing the effectiveness of the tasks being solved in the field of technosphere security, let us consider their substantive essence and interrelation in more detail.
Labor costs
What is labor costs? In economics, labor costs refer to the number of units of personnel labor required to complete a job. They are usually measured in man-hours, man-days, man-months, or man-something else. Labor costs can be planned or actual, and are used to calculate the completion date of a project (conceived solution), financial costs for its implementation, and efficiency analysis.
Actual labor costs are the amount of work already completed in the project.
Planned labor costs are the planned amount of work in the project.
Sometimes there are problems when estimating planned labor costs. This is because the productivity of different employees can vary significantly. Therefore, in the event that it is not known who will perform specific task, it is very difficult to estimate labor costs in absolute units. But using the average indicator of employee productivity, you can avoid (partially or completely) the noted problems.
Let's look at how labor costs are determined in man-hours and in rubles/hour. The formula for calculating labor costs in man-hours is as follows:
Hh = N * T, (1.31)
where Hh – man-hours;
N – number of employees;
T is the actual time spent on performing the work.
From the formula it turns out that 100 man-hours are the hours worked by a team of 20 people in 5 hours, or of 50 people in 2 hours, or the work of one employee in 100 hours.
This unit of measurement is also used in calculating the working time utilization factor, the formula of which is as follows:
K = Tfo / Ttr (1.32)
where K is the coefficient of use of working time by one labor unit;
TFO – actual man-hours worked;
Ttr – maximum possible (required) man-hours worked.
The formula for calculating the cost of a man-hour per employee is as follows:
C = ZP / RF, ……………………………..(1.33)
where C is the cost of a man-hour;
ZP – wages of one employee per month (net);
RF – number of working hours per month. This last value (RF) does not include hours: vacations (annual, additional, at your own expense, etc.); breaks (for lunch, as well as longer breaks due to plant downtime); shift changes; strikes, rallies, etc.; temporary absences from work (telephone calls not related to work, smoking breaks, etc.).
An example of calculating the cost of a man-hour. Let’s say an employee works for a month, 8 hours a day. His salary for this period is 30,000 rubles. In this calendar month he worked 21 days (in fact). The cost of an employee's man-hour will be: 30,000: 19: 8 = 197.4 (rubles/hour).
There is also such a thing as standard labor costs (man-hours), the formula of which is determined according to the same scheme as ordinary man-hours. The difference is that a certain work has a standard time and labor units involved (this also includes the standard cost of work for 1 hour of a certain activity).
There are several main ways to calculate labor cost standards for a company:
Benchmarking;
Factor rationing;
Photo of the working day;
Microelement rationing.
Let's consider each of them separately and focus on the most optimal method in terms of labor intensity and accuracy.
Benchmarking (English: Benchmarking, Bench - judge's bench, judge's place; marking - mark, stamp, branding, mark) is an assessment and comparison of how certain processes are performed at other enterprises in your industry. Usually considered the most successful companies In the market and for each industry, their own standard is calculated. To calculate such standards, it is necessary to collect small amounts of information only on market leaders, but the accuracy of such standards will be low, because business volumes, the specifics of each specific company, etc. are not taken into account.
The workday photography method involves an auditor or HR employee recording every action of an employee throughout the entire workday and measuring the duration of its completion. This method is very labor-intensive and not always effective. For example, it is not always suitable for calculating accounting standards.
Microelement rationing is one of the most accurate ways to determine standards. In this case, each process is divided into elementary components, and then the time spent on completing these elements is measured. But despite its advantages in accuracy, this method requires a lot of labor.
The factorial normalization method gives the most accurate results and is not too difficult to use. In this case, to calculate the required number of employees, various factors affecting labor costs and the result of the process are taken into account. To do this, the activities of the department are divided into sections, for each of which labor costs are estimated. Then, for each of the processes (tasks), the factors that most strongly influence the timing and complexity of their implementation are identified.
Using standard values of labor costs, you can determine the labor costs for a particular type of work.
So, we can say that labor costs are a measure of work. Or, as it is now fashionable to say, KPI of work volume. KPI is an abbreviation for Key Performance Indicator. Translated as “key performance indicator”, in the practice of Russian companies the combination “key performance indicator” is often used.
Labor costs are a component in determining labor intensity.
Labor intensity
Labor intensity is the amount of working time spent on producing a unit of product (performed service, work). Reducing labor intensity is an indicator of increased efficiency.
Labor intensity is inversely proportional to the labor productivity indicator (the amount of products produced per unit of working time). Therefore, an increase in labor productivity is an indicator of increased efficiency.
The amount of labor intensity is influenced by many various reasons, but among them the main ones can be identified: the level of qualifications of personnel, the degree of technical equipment of production, the complexity of manufacturing goods, the degree of automation and working conditions. Now let's move on to how labor intensity is determined.
The formula for calculating labor intensity is as follows:
Tr = Tz / W, (1.34)
where Tr – labor intensity (person – hour / piece (ton, m 3, etc.);
Tk - labor costs (man-hour) - usually measured in man-hours;
W - volume of production (work performed, service provided) (pieces, ton, m 3, etc.).
Considering formula (3.4) in relation to labor costs, we can say that labor costs are a component value in determining labor intensity.
It is convenient to calculate labor intensity in the following order:
1. First, the amount of time worked by the workers of the enterprise during the billing period is determined. The source of data for calculating actual time spent can be primary accounting documentation, in particular, time sheets for each site or workshop. Based on these data, it is convenient to calculate the total amount of man-hours for a calendar period for all areas of the enterprise.
2. Now let’s calculate the cost of goods produced in the reporting period. To do this, we will again use primary accounting documents. The type of document depends on the specifics of the enterprise itself. After this, the ratio of the amount of time spent, expressed in man-hours, to the cost of goods produced by the enterprise is calculated. The result of the calculation will be the desired coefficient of labor intensity of the product.
Depending on what is included in the costs, labor intensity can be of several types. Let's look at each of them.
Technological labor intensity (Ttechn.). The calculation formula includes the labor of only those workers who directly produce goods (perform work, provide a service):
Ttechn. =Тpwr.+Tdiv., (1.35)
where Tpov is the labor costs of temporary workers;
Tsdel. – labor costs of piece workers.
Labor intensity of maintenance (Tobsl). This indicator takes into account work time employees serving production.
Production labor intensity, the formula of which is as follows:
Etc. = Ttechn. + Tobsl, (1.36)
where is Ttechn. - technological complexity;
Tobsl. - labor intensity of maintenance.
Labor intensity of management (Tupr.). It includes the labor of specialists, technical workers, managers, etc.
Total complexity, the formula of which is:
Tpol. = Ttechn. + Tobsl. + Tupr., (1.37)
where is Tupr. - complexity of management.
Labor productivity
Labor productivity is a measure (measurement) of labor efficiency. Increased productivity is an indicator of increased efficiency.
Labor productivity is measured by the amount of products (work performed, services provided) produced by an employee per unit of time. Labor productivity is the reciprocal of labor intensity, measured by the amount of time spent on a unit of output.
Mainly three types of labor productivity are considered: Actual labor productivity; available labor productivity; potential labor productivity.
Actual labor productivity (output) is inversely proportional to labor intensity and is determined from directly observable data using the formula:
Where is the actual output of products in units of measurement of a given type of product (pieces, ton, m 3, etc.);
Actual costs of living labor in time units (man-hours, etc.).
Available labor productivity is a calculated value that shows how much product can be produced under current conditions (for example, on existing equipment from available materials) if all downtime and delays are reduced to zero. Available labor productivity is determined by the formula:
where is the maximum achievable output in current conditions in units of measurement of a given type of product (available output);
The minimum required living labor costs in current conditions in units of time (available labor intensity).
Potential labor productivity is a calculated value that shows how much product can be produced under theoretically achievable conditions in given natural conditions at a given level of development of civilization (for example, from the best materials available on the market using advanced technologies and installing the most modern equipment available on the market) in case all downtime and delays are reduced to zero. Potential labor productivity is determined by the formula:
where is the maximum achievable output in given natural conditions at a given level of development of civilization in units of measurement of a given type of product (potential output);
The minimum required in given natural conditions at a given level of development of civilization is the cost of living labor in units of time (potential labor intensity).
One of the main tasks of everyone manufacturing enterprise– increasing labor productivity and optimizing time spent on the work process. This is why every employee in the accounting department should know how to calculate man-hours. In order to get these economic indicators, special formulas are used, which will be discussed below.
Productive use of time intended for a specific production process allows you to optimize the work activity of each employee in the enterprise. Using special formulas, you can derive the time costs that an employee will need to cope with the task.
By making such calculations, you can not only identify the efficiency of your employees, but also significantly increase the efficiency of the labor process.
This means that such an approach will increase the productivity of the enterprise. It is for this purpose that the formulas “man-hours” and “man-days” were developed in economic science.
To optimize the production process and obtain greater benefits, it is necessary to calculate the number of man-hours spent on the production of one unit
What is a man-hour
First, let's look at what are man hours? This term is used to denote an economic unit that is equal to one hour of labor of the Nth employee. Using this unit, the time period or number of employees required to carry out a certain production task is calculated.
How are calculations made?
Adding up man-hours makes it possible to assess the required financial investments to pay for the labor activities of company employees. Often, man-hours are used to set deadlines for completing obligations during the design of certain tasks that place management under strict time constraints.
These figures are used in the preparation of reporting documentation for the tax inspectorate, the Pension Fund and institutions providing social and legal protection population. In addition, each enterprise provides detailed information about the man-hours spent to Rosstat. When compiling such documentation, the “P-4” form is used, which clearly displays the calculations being carried out.
Nuances of making calculations
Let's look at examples of calculating man-hours. In order to obtain the required indicator, you should add up the working time of a certain employee. It should be noted that not only the hours spent on the work process both on the territory of the organization and outside it are summed up. Thus, when compiling calculations of labor activity indicators, business trips, work in a combined position (in the same enterprise), as well as overtime are taken into account.
Such calculations should not include:
- Days missed by an employee due to illness.
- Production downtime (days or hours when an employee was not engaged in his direct job responsibilities due to circumstances that he had no control over).
- Time spent on vacation (vacation time initiated by the management of the enterprise is not taken into account).
- Time off provided to nursing mothers.
Also, those hours by which the working day of employees of certain organizations are reduced in accordance with the decrees prescribed by law are not taken into account. Russian Federation. The calculations do not take into account absenteeism and other various factors of staff absence from work.
This indicator is used by the accounting department and the statistics department of the enterprise and indicates the duration of one person’s stay at work. Formulas used in calculations
When calculating the man-hours spent, special economic formulas are used. The simplest formula for calculating labor costs in man-hours: H = K * T. Let's look at what this formula means. The letter “H” denotes man-hours. Instead of the letter “K” the number of employees in the organization is substituted. "T" is the unit of time used in calculations. To simplify the calculation of labor costs, it is best to use hours as a unit of time.
Calculation example
Man-days are days worked by company personnel. A man-day is considered worked regardless of the actual length working day. That is, if the employee showed up on time and began performing his job duties on time, the man-day should be counted.
Let's look at an example of how to calculate man-hours for a month of work. An organization with thirty employees will be used as an illustrative example. The duration of one working day is eight hours. All necessary calculations will be compiled for September this year. In order to get man-hours for a month, it is necessary to multiply the number of employees, the duration of one working day and the number of working days in a particular month: “30*8*21=5040”.
However, when filling out the documentation sent to Rosstat, the chief accountant of the enterprise carries out much more complex calculations. To obtain accurate data, it is necessary to take into account the time spent on business trips and extracurricular work activities. In addition, the time period that is not intended for accounting is subtracted.
Let's look at the same production example, but in in this case, two out of thirty employees spend only four hours at their workplace. Moreover, in the example under consideration, we will take into account that one of the employees went on vacation in the middle of the working month and worked only eighteen days:
First, you need to calculate man-hours, for workers who are at their workplace full time - 27*8*21=4536. After this, it is necessary to make separate calculations of the labor costs of employees who spend four hours daily at their workplace - 2*4*21=168. Then you should make a calculation for an employee who went on vacation in the middle of the working month - 144. The resulting products should be summed up to get the result - 4536 + 168 + 144 = 4848.
The result obtained is the sum of the labor costs of all employees of the organization for the above month.
Calculating man-hours can become more complicated if employees do not work full time. Man-day
This term is a designation of a similar value with man-hours. IN specific example, the unit of labor activity time is one standard working day. When used in man-day calculations, the average length of a working day is not taken into account, even when the figures significantly exceed the eight hours established by law. It should be noted that in the economic sphere, man-hours are a more accurate unit compared to man-day.
How to make calculations
When calculating using the man-day formula, unexcused reasons for absence from work are not taken into account. This means that absenteeism, no-shows and absence from work for more than three hours are considered a full-fledged absence. Let's look at how man days are calculated. The formulas used in calculations that are used in accounting imply following a clear order of actions:
- In order to obtain the result of the reporting month, it is necessary to multiply the number of man-hours worked by each employee by the sum of working days in the month in question.
- The obtained figures are summed up in order to obtain the result of man-hours for the reporting month.
- After this, the amount received is divided by eight, since according to the Labor Code this time is a full-time working day.
- The resulting figure is the “man-day” indicator.
This unit is used when calculating the temporary funds indicator. This indicator is used to determine the number of days worked, attendance, absences and all-day downtime. Using such values, statistics are compiled, on the basis of which economic analysis. Not only certain enterprises, but also various industries are subject to such analysis.
Brief overview of basic terms
Below we suggest familiarizing yourself with the terms that were used in the calculations given above.
Days worked
Day worked – time spent by each employee performing their job duties. Regardless of the actual length of the production day, the day is considered worked if the employee arrives for his or her assignment on time. workplace.
In addition to the above, the time that the employee spent on a business trip, was on duty, or combined several positions on the territory of the enterprise is added to this value.
To calculate man-hours accurately, it is necessary to maintain a time sheet. Turnouts
The term “appearances” means overall result adding up days worked and all-day downtime. The term is quite easy to understand.
No-shows
The term “absenteeism” should be understood as the period of time during which a certain employee was absent from his workplace. There are many different reasons for not showing up to your workplace, both respectful and disrespectful. The only exception to this rule is cases related to production downtime.
Valid reasons – vacation, maternity leave, study holidays, illness and other absences permitted by law. This includes performing military or civilian duties. In addition, some personal reasons are valid reasons for not showing up to your workplace. However, in this case, preliminary coordination with the administration of the enterprise is necessary.
Sometimes this list expands significantly. Often, valid reasons include labor strikes or mass absences from work.
Absence from the workplace without a valid reason includes absenteeism, failure to appear on the territory of the organization for more than three hours from the start of the work shift. In addition, unexcused reasons for absences include exclusion from the work process for existing objective reasons.
Production downtime
An all-day downtime is a working day during which the employee does not perform his direct duties. job responsibilities due to the influence of various factors over which it cannot influence. Such downtime includes various malfunctions of production equipment or power outages on the territory of the enterprise. IN this moment, the employee can either be at his workplace or absent, having notified the administration in advance.
Assessing the effectiveness of working time is a fundamentally important task Labor hours
Labor hour is the time spent by an employee who does not have the necessary qualifications at a certain workplace. The number of labor hours in one week is at least forty hours (taking into account that the enterprise in question has a standard eight-hour working day). Calculation of remuneration for labor hours is carried out according to the current law specified in Labor Code. Using labor hours, wages are calculated for personnel who do not have the necessary qualifications.
To optimize the production process and obtain greater benefits, it is necessary to calculate the number of man-hours spent on the production of one unit. This indicator is used by the accounting department and statistics department of the enterprise and indicates the length of time one person spends at work. It can be used to calculate the total labor productivity at a given enterprise for one unit of time.
The simplest calculation formula looks like this:
K x T = Hh, where Hh is man-hours, K is the number of workers taking part in the production process, and T is the time spent on work.
K (number of employees) x T (working time) = Hh (man-hours)
Let's give an example
Let's say a factory employs 100 people in the production process. We must calculate the number of man-hours for the month of June. There are 24 working days in June. For an eight-hour workday, the formula would look like this:
100 (person) x (8 (hours per day) x 24 (working days)) = 19,200 man-hours
- Calculating man-hours can become more complicated if employees do not work full time, go on vacation, go on a business trip, study, or get sick. In this case, you should not calculate full working days, but only hours actually worked.
- It often happens that company employees work part-time, for example, mothers who use a staggered schedule or those hired for a four-hour work day. In this case, the calculation of man-hours is calculated specifically for each employee. Then the data is summarized.
- In order for the calculation of man-hours to be accurate, it is necessary to maintain a working time sheet in which all data for each employee is entered. Time of arrival and departure from work, actual time worked. For example, it happens that a team of workers is on site, but cannot work due to untimely delivery of materials.
- You can calculate this indicator for each permanent employee, provided that he works for a whole month, 8 hours a day. If you work five days, you get: 21 working days multiplied by eight hours = 168 man-hours per day. Typically, this formula is used for normal working hours.
- If an organization employs ten people, then general meaning man-hours per day will be equal to 80. If you multiply this value by 21 working days, it turns out that there are 1680 man-hours this month.
- The total number of man-hours can be formed from the number of hours actually worked by all employees of the organization. For example, 30 man-hour. - this could be the time worked by one person for 30 hours, or two who worked 15 hours, or 3 who worked 10 hours.
Product output for this period can be calculated more accurately if we subtract breaks for lunch, waiting for the delivery of materials, repairing broken equipment, staff absences for personal needs, etc. These data can be calculated accurately, or we can resort to an average value, which is practiced much more often.
Labor intensity (the formula of which allows you to calculate how much labor will be invested in a particular set of works) helps to identify the structure of time and effort. It also makes it possible to determine how much work productivity can increase to ensure the most rational use human resources and forces.
How to calculate labor intensity?
Most often, it is presented as an indicator that indicates the amount of labor costs (over a certain period of time) that were spent on the production of one unit of goods or carrying out one work operation.
Labor intensity, the calculation formula of which helps to establish a direct relationship between labor costs and the volume of products produced, is calculated as follows:
- Q=T:V.
How to decipher the calculation of labor intensity?
In the above formula, the main task is taken over by Q. This variable is the amount of cost per unit that is produced per hour. It should be understood that calculating labor intensity is a rather complex matter and requires special attention. The fact is that today there are different types of it, which are calculated using different formulas.
Types of labor intensity
IN modern world there are eight of her individual species, the calculation of each of which differs by using a completely different formula. However, most people who encounter this problem try first of all to determine what type they need to calculate.
Labor intensity is divided into:
- Technological.
- Services.
- Production.
- Management.
- Complete.
- Regulatory.
- Factual.
- Planned.
Technological, production and total labor intensity
The technological type, the formula of which differs only to some extent from the classical one, can be determined by the labor costs that were produced by both time workers and piece workers. In addition, the value can be easily calculated using production operations, finished products, individual parts and assemblies.
Production labor intensity, the formula of which is determined by calculating the labor of auxiliary and main workers, is a combination of its technological type with maintenance.
Total labor intensity, the formula of which is as follows:
- Q full = T auxiliary worker + T main work. + T work control = Q ex. + Q prod.,
allows you to reflect all the labor costs for the production of one unit of product. It is the most serious.
Labor intensity of maintenance and management
The labor intensity of maintenance can include all those labor costs that were incurred by auxiliary workers. At the same time, all employees must be employed in production service areas entirely. The calculation of such labor capacity is carried out using all operations, products and services.
The labor intensity of management includes the labor costs of security guards, specialists and managers. Moreover, the work of each of them will be calculated differently. Those labor costs that are directly related to the manufacture of a product will relate specifically to these products, the same part that is not related to them will relate to proportional productivity.
Standard, actual and planned labor intensity
Standard labor intensity, the formula of which is calculated using the main labor standards (service time, production time, number, etc.), allows you to determine the total amount of time and effort required to create any product or the entire program.
Actual labor intensity is understood as one whose formula includes all the labor costs that have already been produced. This takes into account the volume of work or output.
Planned labor intensity is slightly lower than standard. But at the same time it includes planned costs, which should always take place when something is produced.
The labor intensity of work (the formula of which is determined each time by calculating the time spent on the production of one unit) allows you to measure productivity and thereby identify reserves for possible growth.
What is labor productivity?
Labor intensity (the calculation formula for which was discussed above) often affects the manufacture of a product or the conduct of an operation. The concept of labor productivity includes indicators of the productivity of all employees of the enterprise. It can be measured using the amount of work performed (products manufactured or services provided) that were completed over a certain period of time. At the same time, using this concept, you can determine how well a worker copes with the need to create goods, services and other products with his labor in an hour, week, month, year, etc. In the modern world, the amount of work that was produced by one employee is usually called a separate concept - “production”. With the help of production indicators, the owner of the enterprise can measure the work that each employee did in a certain period of time. It does not make much difference whether it was the provision of services or the production of goods.
Labor productivity meters
Among the most important meters it is worth highlighting the following:
- Cost - in this case, the so-called index method is used, when productivity is compared for different periods time.
- Natural - they can only be used if the enterprise produces only one type of product for a long period of time.
- Conditionally natural - can be applied even if the enterprise produces various products. But in this case, one type of it will be selected as a conditional one, and all other products will be reduced to this coefficient.
- Labor - they are applicable if it is necessary to calculate labor productivity in different departments of the same enterprise.
Labor productivity can be easily calculated using a special formula:
- P = O: H,
where "O" means the amount of work performed by one employee for a certain amount of time, and "H" is total number all employees who work at this enterprise.
So that labor productivity can be determined with the greatest possible accuracy, experts recommend paying attention to some important requirements. Among them the following should be highlighted:
- Consider all the labor that goes into one certain type works
- It is imperative to eliminate possible distortions that may be associated with some differences in labor capacity.
- Eliminate the possibility of re-calculating labor costs when past labor is taken into account.
- Measure possible changes in labor productivity due to an increase or decrease in average wages employee.
Sometimes in foreign practice, in addition to labor productivity, the term “productivity indicator” is used. To calculate it, one should take into account not only the labor costs for the manufacture of a particular product, but also the resources that were used in the manufacturing process (this could be land, working capital and fixed capital).
