Spheres of human activity. What is production?

The concept of "production" in everyday life is often enough. In general, many people clearly understand this process. In this article we will dwell on this concept in more detail, we will consider its components.

Production from the human point of view

First, let us turn to terminology and define what is production. This process should be understood as the production of all types of goods or the use of equipment (labor) in conjunction with available resources to obtain the necessary services (goods). A person when producing a product for consumption has an effect on natural objects, giving them the form necessary to meet their needs. What is production in this case? This process provides as a whole the processing of the raw materials given by nature into the necessary products of consumption. Being processed, they, in turn, can be used for further production. Also these resources can be ready for consumption in the original form. This function of production is unchanged regardless of the social structure of society. Production can be a tangible process (production of a specific product) or intangible. For example, what is enforcement proceedings? This is not the issue of any product or service. This is a certain order of execution of procedural decisions, the mechanism of implementation of which is regulated by law. Apparently, this concept has no direct relation to consumption products.

Essential elements

A prerequisite for starting any production is the availability of source resources. Let us consider in more detail what are the factors of production? Modern literature gives a huge amount of clarification to this concept. Economic theory describes the factor of production in the form of an important element. It has a key impact on the final result achieved in the process of producing products or providing some kind of service. Factors of production are the main components of functional production. From their interaction, the final result of the entire industrial or commercial process depends, and, consequently, leads to a stable interaction of the organization with the external environment. The total number of all factors with minor amendments is divided into two groups:

1. Basic. In particular, they should include: labor, entrepreneurial abilities, source capital (which includes land, human capital).

2. Providing. These include: information owned by the manufacturer, the technological organization of production, the environmental factor, design and research achievements and developments.

In the writings of economists there is one more classification. According to it, the factors of production are divided into four groups. They are: capital, natural (in some works there is the notion of "land") and human resources (in this sense, as a rule, "work" is assumed), as well as the capacity for entrepreneurial activity.

Human resources

By this definition, any kind of human activity is understood. It can be physical or intellectual. Man's activity (within the framework of this concept) is directed at achieving a certain result. In the process of labor, professional skills, special education and other useful knowledge and skills acquired by people can be used. The time interval during which a person works (produces products, services as a result of his activities), was called the working time.

Natural resources

Useful natural resources: water, air, wood and many other things that a person uses in the production of goods and services - all these are natural, natural materials. Important moments in the application of natural resources is that such production is completely dependent on the amount of necessary reserves that are at the disposal of the organization.

Capital

The concept of "capital" in terms of factors of production is collective. It means the total set of all the means of labor used in the process of providing services or the release of goods. At the same time, the capital invested in the technological cycle is also capital. To account for the use of capital, the society introduced a special concept of "production costs". Let us dwell on this concept in more detail. It should be noted that modern economic theory does not give an unambiguous answer to the question of what is the cost of production. In the relevant literature is given a different interpretation of it. In the opinion of one part of specialists, under costs it is necessary to understand only the costs of living or materialized labor, obtained in the process of production and its further realization. From another position they speak of a phenomenon that arises directly in the sphere of circulation. The second position is typical for trade and catering organizations.

Ability to engage in entrepreneurial activities

The most important link in the production process, linking its three main factors (capital, human and natural resources), is entrepreneurship. What is meant by this term? Entrepreneurship is a combination of all kinds of labor efforts aimed at producing the necessary goods and services. This activity can be understood as skills in the field of management, and the sphere of organization of the process of output of products or services. Therefore, the main task of a person engaged in entrepreneurship is the most effective combination of the three other factors of production among themselves.

Additional Items

Recently, more and more importance has become to acquire another factor affecting production - information. On the basis of qualitative and timely information, more rapid and effective decisions are made. They significantly affect the quality of production. The information is closely intertwined with one more component - technical progress. These elements are of great importance, because such production, based on the latest achievements of the scientific world in the aggregate and the information component, is the most effective in the modern economy.