Conditions and factors for more efficient use of labor potential in the agricultural sector

The objective of this research is to identify the conditions and factors that contribute to the efficiency of labor potential and to develop a system of management of the efficiency of labor activity in the agricultural sector of economy. The subject of this research is labor potential and a multitude of conditions and factors which determine the formation, development and efficient implementation of labor potential within the agricultural sector of economy. The research of the issue is carried out on the materials of agricultural organizations of Oryol oblast. The research is carried out using the following methods: monographic, economic and statistical, calculation- and constructive-based. The research has revealed that under the conditions of innovative development, labor potential, which is determined by the number of economically active population, as well as the rates of employment, the professional and qualification level of those who are actually involved in the work force, the productivity of their work, becomes the most prominent. Demographic, social and economic factors have a crucial effect on labor potential. Productivity indicators play a major role in the evaluation of labor. The number of employees in Oryol oblast's agricultural organizations decreased by 8.8% between 2016 and 2018, while the revenue from the sale of products increased by 11.8% and sales profits by 6%. This circumstance indicates the growth in workforce productivity. The management of productivity is an integral part of the management of any organization, which is a strategic process that ensures a stable success of the organization through the improvement of productivity of workers. The system of workforce productivity must include: locating the factors which determine workforce productivity; objective evaluation of productivity through a system of indicators; labor quality and labor intensity management; work motivation; development and implementation of productivity-enhancing activities. The strategic policy of productivity management envisages its growth through technological modernization of the sector and introduction of innovative technologies, improvement of the organization of work and improvement of the skills of the staff.