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Most restrictive factor of production in the economy is labor. Therefore its management - the main task for any enterprise. However, the need to improve the efficiency of labor, until recently, did not notice.
The effective use of employees, first of all, the owner is interested in production, the cost of hiring labor. At a time when the dominant part of the enterprises transferred to private ownership, the state has lost interest in this problem. At the federal level over the past decade, it almost was not considered.
Inattention to labor utilization is also due to a significant change in the approach to assessing the value of efficiency. The former approach has been that the performance belongs to the living, workers. The other factors of production only provide more or less productive power of labor. It followed that productivity - the main engine of economic growth. Today the economic theory states that have the capacity of all of the factors of production. Hence, labor productivity is only a single factor in the effectiveness of employees, along with other commercial and social factors.
Labor efficiency shows not only his performance, but provides a more complete picture of the fruitfulness of employees in the manufacturing process. In contrast, labor productivity, which characterizes the amount of production output per worker, labor efficiency is considered as a category, synthesizing
effectiveness of all the functions of living labor (and not just a function of manufacturing products).
The efficiency of labor also affects the socio-economic status of an employee in a private enterprise. For the entrepreneur labor is only one of the interchangeable factors of production, and the efficiency of each of them is for the firm important. In addition, the employee is a carrier of innovative knowledge, is able to actively influence the improvement of techniques and technologies. Therefore, labor remains the primary resources and efficiency of its operation has a definite effect on the efficiency of production in general.
Thus, the efficiency of workers is influenced by various factors. These factors include the factors of production, socio-economic factors, scientific and technological progress, etc.