Production organization
Producing the things and services we want is the goal of production. The primary prerequisite for producing goods and services is land, as well as other natural resources like water, forests, and minerals.
Labour, or the actual individuals who perform the labour, is the second necessity. To complete the necessary responsibilities for some production processes, highly educated people are needed. Workers that can perform manual labour are needed for additional tasks. Each employee contributes the labour required for production.
Physical capital, or the variety of inputs needed at each stage of manufacturing, is the third criterion. The following things fall under physical capital:
- From very basic equipment like a farmer’s plough to complex machines like generators, turbines, computers, etc., tools and machinery come in many shapes and sizes. Fixed capital includes things like buildings, machines, and tools that can be employed in production for many years.
- A number of raw materials are needed for production, including the yarn the potter uses.Additionally, it costs money to make payments and purchase other necessities throughout production.Working capital is defined as cash on hand and raw commodities. Unlike equipment, structures, and tools, these are used up throughout production.
There is also a fourth prerequisite. To combine land, labour, and physical capital and produce an output for your own use or to sell on the market, you will need knowledge and initiative. These days, this is referred to as human capital.
The “factors of production”—land, labour, physical capital, and human capital—are integrated to organize every output.
How do the medium and large farmers obtain capital for farming? How is it different from the small farmers?
Palampur is well-connected with adjacent villages and towns. The large village of Raiganj is 3 kilometres away from Palampur. The village is connected to Raiganj by an all-weather road, and Shahpur, the closest small town, is reached after that. Numerous modes of transportation, including bullock carts, tongas, and bogeys (wooden carts driven by buffalos) filled with jaggery (gur) and other goods, are evident on this road, in addition to motorcycles, jeeps, tractors, and trucks. About 450 families from various castes make up this village. The 80 upper-caste families own most of the land in the village. SCs (Dalits), who make up one-third of the population, live in a section of the hamlet in significantly smaller dwellings, some of which are made of mud and straw. Most of the houses have electric connections.