Is labour a major factor for business production.

TOZZIBLINKZ

VIP Contributor
Labour is a factor of production that consist of all human effort put or instilled in production , in other words it could be seen as human mental and physical extensions generated in the production process . labour is one of the major factor of production which when combined with other factors of production provides goods and services for members of the public . Labour is usually compensated or renominated in the form of wages and salaries . Below are some of the ways in which label is important to production :

Provision of skilled personnel : Because of the availability of labour , required skills as a result of employed skilled personnel are being putted into the production process to yield better and efficient output .

Mechanical control : most industries who own huge machines and mechanical equipment for the purpose of production need skilled personnel who are able to use the various machines in order to produce efficient and better output . Industrialized companies are example of enterprises who requires skilled personnel to use the various the various machines to convert raw materials at their disposal into proper finished goods and commodities . Labour also is required to maintain this huge machines and equipments in order not to incur damages and high rate of depreciation .
 

Augusta

VIP Contributor
I think the 4 components of production should always be employed anytime one wants to start a production business. I don't think any factor can really do without the other but I might just have to write that some of the factors perform more roles than others, hence the more need of it.

Looking at the different factors of production I think labor is the most outstanding because starting from even the owner of the business, it is his efforts that would be put in by him or her that will even help to kick start the business before the arrival of others. And we called that labor since a lot of work will need to be put in by the owner.

Now when the production tools are being brought to the business premises, it is still humans that will operate these tools or machines without this labor nothing can be done.Machines can't start and stop on its own it will still needs to be operated by humans, the difference is that it will be less cumbersome since some might just be automatic so operating them might not be tedious.

But all the same labor is factor of production that can't be downplayed.
 

funmi

Verified member
This is an amazing question indeed. Labour plays a keen role in the course of production. Production is described as the process of transforming raw materials into finished goods and transporting same to the final customer. In the case of carrying out this whole process one essential factor to consider is labour which has been categorized in skilled, semi skilled, and unskilled labour.

One things that is common with labour is that it requires both physical and mental ability depending on the category that one may themselves. So amongst the four factors of production which includes Land, entrepreneur and capital. All these factors a lot of roles in ensuring that production is complete and very effective. So after all the careful consultation of what to produce and how to produce, we will also look at how the goods and services will get to their defined destination. In the process of doing this, labour will certainly be involved. Now for a factory to successfully carryout their production phase they will certainly require the effort of labourers, and this labourers will in class and categories. Ranging from skilled down to the unskilled as everyone of them will surely have a role to play.
 

Holicent

VIP Contributor
No, labour is not a major factor for business production. Labour is considered one of the 4 factors of production (the other 2 being land and capital and entrepreneur). A business can be successful without a large number of employees. The ratio of labour to business production is a factor that can be controlled by businesses. Businesses can control the ratio of labour to business production by hiring more employees or firing employees.

In this case, labour is a factor for the business because it does not completely control how much employees it hires or fires. Labour is important but it's not as if it supersedes other factors of production. They depend on one another for the growth or the workability of a business plan. Just like you can't run a business without having a land, either rented by you or owned by you, a building must be erected the land. You also need capital to start and run a business effectively.
 

CALVINDOL

VIP Contributor
Labour is not the only factor of production but yet it is the most important factor of production compared to other factors of production . It is assumed and consider that without the existence of labour in a business organisation such business organisation will not move forward . It is very mandatory that we understand that labour play a very keen role in the success determination of a particular business especially when applied in the right and beneficial way that affect the business positively . There is absolutely one thing that we must understand about the factor of production which is labour that is the fact that labour has the ability to be motivated and has the ability to be unmotivated .

It has never been easy to employ the most qualified employees as a business employer but yet business employers usually try to make sure that the employees they employ are of high qualified rate , and they have the requisite authority at the ability to carry out business goals and objectives so that it could be accomplish and achieve the right and effective way . To motivate the ability to work in your employees it is advised that you are the business employer show a sense of gratefulness and appreciation for the past business goals and objectives that they have accomplished in this way they will be likely motivated to accomplish more .
 

Suba

Moderator
Staff member
Labor is a very important factor in the production process, including experts in product processing and labor who are experts in operating machines, machine maintenance. Although currently there are several arguments that labor can be replaced by robots, in terms of taste, soul, smell, humans are superior to robots, so that the quality of the product will be maintained. Although labor is needed to maintain equipment and machinery, if there is damage, the costs will be grouped into Factory overhead, while depreciation for machinery and equipment is not affected because it has been determined in advance according to the method of recording in their accounting.
 
Labour is a critical input in the production of goods and services. The level of labour input affects the costs and the output of a business. Labour is a scarce resource and its cost is an important determinant of business production. The use of labour in production depends on the technology available, the organisation of work, the type of business and the level of skills of the workers.

There are a few factors that go into any production equation, and labour is one of the most significant. Though it can be hard to determine an accurate value for it, labour is undeniably a huge part of most businesses. In some cases, labour may even be the most important factor in terms of production.

When it comes to small businesses, for example, the hours put in by the owner and employees are often what drive the company’s success or failure. In fact, many small businesses are started by people who have an entrepreneurial mindset and are willing to put in the extra hours to make their venture.
 

btaliat

VIP Contributor
There is none out of the factors of production that can be underestimated. But if we are to give them rank according to their level of importance, personally I will got with capital first before labour for many reasons.

Capital is what we have to have first whenever we are thinking about setting up a business. What's the essence of having other factors of production without having the capital to execute it?

Whereas people with money can do without labour. After all people can make use of their family members to execute some of their projects. This means when we can have alternative for labour, whereas there may not he alternative for capital.

Entrepreneur will come second in the rank. This is because there will be wastage of money and effort and even labour if there is no good skill for entrepreneurship. This means that we cannot do without entrepreneur, which means labour should not be ranked higher than entrepreneur.

Or would will underate the importance of land where the business will be situated. If we have the capital, the skill for entrepreneurship and no space or land for the setting up the business, to which extent now is the other factos ?
 

blessingc

Active member
As we were taught from our basic education and we all know practically, labour is a very important factor of production, a business without labour does not really exist and if it does I haven't heard of one before.

Now in the factors of production we we taught that there are four parts, the land, labour, capital and entrepreneurship. Having a land, that is a location for your business and the capital to start it is not all there must be hands to make use of your resources into something profitable, you need people to work. You need active minds and physical bodies to join forces and implement actions on your business that will bring forth gain.

Like we know there are different types of labour with different contributions, there's the physical labour, mental labour, skilled and unskilled labour, the productive and the unproductive labour.

The physical one as the name implies exacts strength and action to make things work, like they contribute to production with their hands and action, while the mental make use of their brain, calculations, written works office jobs, to contribute to production,

The skilled labour as the name implies means being trained in a specific way to perform specific tasks to make production effective. Infact aside the income we use in starting up a business, and the land, except it is an extra small business that doesn't require any worker just you, you need labour for production to be effective.
 
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