‘Efficiency of Labour’: The amount of work which a labourer can do within a given time. —Dr. Saxena

In other words, efficiency of labour refers to the quantity and quality of goods and services which can be produced during a given period under certain prevailing conditions. 

Three factors that determine the efficiency of labour:

1. General and Technical Education: The general education broadens the knowledge, develops the intellect and improves the skill of a person. The technical education provides knowledge to a worker concerning different systems of work of the productive units. All these make an educated person more efficient and better in skill, as compared to an uneducated and untrained person.

2. Experience: The practical experience of work is gained by the worker during the training period. After that, he becomes perfect by doing day-to-day work, regularly and repeatedly. Simultaneously his efficiency also goes on increasing. Thus, an experienced worker is usually more efficient than an inexperienced one.

3. Climatic Factors: Climatic differences also affect the efficiency of labour Working under extreme climatic conditions is always more difficult than working in the temperate zones.

4. Working Conditions: A healthy and conducive work environment increases the level of efficiency. The facilities enjoyed by the worker determine labour efficiency to a significant extent. Employer-employee relations are also an important part of the work-environment. An employer, therefore, can contribute to labour efficiency by building a cordial relationship with his workers. (any three)