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What do you mean by organization of production?

What do you mean by organization of production? organisallon production The is to that We are four or goods and The first requirement and other resources such as Water. forests. minerals, requirement people who Will do the work, Some production activities require highly educated workers to perform the necessary tasks. Other acttvltles require workers can do Work. Each is providing the for The third requirenuent is physical capital, the variety of Inputs required at every Stage during What are the items that under physical capital? and from simple tools such as a farmer's plough to sophisticated machines such as generators. turbines. computers. etc. Tens. buildings can used product Ion over many years. are called axed capital (b) Raw materials cmd money In hand: Production requires a variety of raw materials such the yarn used by the weaver and the clay used by the potter. Also. some money Is always required during production to make payments and buy other necessary Items, Raw materials and money in hand are called working capital. Unlike tr»ls. machines and buildings. these are used up in prrxtuctlon. •mere is a fourth requirement You need knowledge and enterprise to be able to put together land. labour and physical capital and produce an Output either to use yourself or to sell in the market. these days is called human Economic. • capital _ We the Every production is organised combining land. labour. physical and human capital. which are factors Of productiom As we through the story or Palampur. we learn more the first three of production. For convenience, refer to the physical capital as in this chapter. Farnln2 in pajampur 1. land axed Fanning is the main production In Palampur. 75 per cent of the Who are working are depende farming for their livelihood. •mey farmers or farm labourers. nte being of these people is closely prtxlucuon on the farms. But remember that there is a constraint in raising farm prod Land area under cultivation is prac fixed. Since 1960 in Palampur, the been no expansion in land area

Dear Student,

a. Organisation of production implies getting all the required inputs together for the purpose of producing goods and services.
b. Organisation is basically the process of bring necessary things together which may include tools, equipment, man power etc for the purpose of attaining set objectives. It is important to note that organisation also refer to an institution, enterprise , an entity comprising of people with shared goals.
c. In the context of producing goods and services, organisation would mean bringing together land, labour , capital  both physical and working  and entrepreneurship machinery to start the process of production
d. Task of organisation or any organisation/institution requires all factors of production to produce goods and services that is land , labour, capital , entrepreneurship. It would require  land and other natural resources to erect its structure/building.
e. It would require labour which includes both skilled and semi skilled labour, to carry on day to day activities of the organisation .
f.. Capital in terms of both Physical and working capital- It requires physical capital like generators,tools, equipment, machinery etc. It requires working capital to fulfil its day to day requirements which may include raw material, money .
g. Entrepreneurship who can organise the above resources effectively, efficient management tl, expert knowledge to compete and survive .


Regards

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