The various factors affecting productivity can be grouped broadly into two categories:

1. External factors
2. National resources and their mobility
3. Availability of capital
4. Taxation
5. Government laws and restriction concerning business.
6. Extent of market competition
7. Technical and other training facilities availability etc.
8. Internal factors
9. Plant location and layout
10. Product design
11. Technology, machinery and equipment used.
12. Material handling methods and equipment used.
13. Work and method study implementations.
14. Quality control.
15. Management techniques used etc.