B Com Notes | EduRev

Cost Accounting

Created by: Universal Academy

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 Page 1


LABOUR 
PRODUCTIVITY
Page 2


LABOUR 
PRODUCTIVITY
LABOUR PRODUCTIVITY
?
A large proportion of the high cost 
in construction work is as a result of 
excessive labour costs. 
?
These costs can be reduced if 
productivity on site is increased by 
improving labour efficiency. 
Page 3


LABOUR 
PRODUCTIVITY
LABOUR PRODUCTIVITY
?
A large proportion of the high cost 
in construction work is as a result of 
excessive labour costs. 
?
These costs can be reduced if 
productivity on site is increased by 
improving labour efficiency. 
LABOUR PRODUCTIVITY
?
Labour productivity is determined by a 
complexity of factors.  
?
One of these factors is the type and size 
of the project. 
?
It includes the layout and complexity of the 
project. 
?
A large construction site requiring a large 
number of workers will be relatively harder 
to manage than a smaller size. 
Page 4


LABOUR 
PRODUCTIVITY
LABOUR PRODUCTIVITY
?
A large proportion of the high cost 
in construction work is as a result of 
excessive labour costs. 
?
These costs can be reduced if 
productivity on site is increased by 
improving labour efficiency. 
LABOUR PRODUCTIVITY
?
Labour productivity is determined by a 
complexity of factors.  
?
One of these factors is the type and size 
of the project. 
?
It includes the layout and complexity of the 
project. 
?
A large construction site requiring a large 
number of workers will be relatively harder 
to manage than a smaller size. 
LABOUR PRODUCTIVITY
?
The difficulties in managing manpower on a 
large scale may result in productivity loss 
(Thomas and Jansma, 1985).
?
There are four main factors that affect labour 
productivity;
1. The duration of worker’s effort.
2. The intensity of worker’s effort.
3. The effectiveness of worker’s effort combined 
with the technology used.
4. The efficiency of worker’s effort, which can be 
described as a measure of how much the 
worker is utilising his ability.
Page 5


LABOUR 
PRODUCTIVITY
LABOUR PRODUCTIVITY
?
A large proportion of the high cost 
in construction work is as a result of 
excessive labour costs. 
?
These costs can be reduced if 
productivity on site is increased by 
improving labour efficiency. 
LABOUR PRODUCTIVITY
?
Labour productivity is determined by a 
complexity of factors.  
?
One of these factors is the type and size 
of the project. 
?
It includes the layout and complexity of the 
project. 
?
A large construction site requiring a large 
number of workers will be relatively harder 
to manage than a smaller size. 
LABOUR PRODUCTIVITY
?
The difficulties in managing manpower on a 
large scale may result in productivity loss 
(Thomas and Jansma, 1985).
?
There are four main factors that affect labour 
productivity;
1. The duration of worker’s effort.
2. The intensity of worker’s effort.
3. The effectiveness of worker’s effort combined 
with the technology used.
4. The efficiency of worker’s effort, which can be 
described as a measure of how much the 
worker is utilising his ability.
LABOUR PRODUCTIVITY
?
Work on a complex project (e.g. such as the 
construction of a major shopping centre) 
becomes more difficult as the project advances.  
?
Off-site pre-fabrication units will reduce the 
number of labour hours required.  
Other factors such as: 
?
the level of skill amongst the workers;
?
the length of the workday;
?
Innovative work practices can increase 
productivity.
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