Factors affecting labour productivity: an integrative synthesis and productivity modelling

Labour productivity has become a very important concern for all economies focussing development through manufacturing. Countries like India, where the government expects the manufacturing sector to be the largest job provider, need to understand labour productivity in a holistic way. The present paper captures the idea of labour productivity from various research papers and identifies 20 factors which can affect productivity. The paper argues to classify these factors into seven dimensions and proposes a model titled 'FLOPACE Model' for enhancing labour productivity. The model proposed in the paper can be further empirically validated. Based on the model, the paper also presents sample calculation for calculating productivity index. The results of this study can help researchers, managers and policy makers interested in understanding the concept and vying for improvement in labour productivity.