Question

It is a challenging task to manage a labour intensive industry compared to a capital intensive industry. Explain

Answer 1

• Capital intensive production requires more machinery, equipment and sophisticated technological production systems in the production process. A capital intensive production process is mostly automated and able to generate a large output of goods and services.
• More automation means better production, faster production, consistent production and lesser labour and their management.
• On the other hand, in a labor intensive industry is most of the production is carried,by workers or employees. It means that the levels of output would be at a much smaller scale.
• Labour intensive industry would require constant training and education of employees, hiring more work to increase production, asking workers to work extra hours, tackling their daily problems, etc. All these would require a lot of management effort as compared to capital intensive industry.
• Hence, it is a challenging task to manage a labour intensive industry compared to a capital intensive industry.