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Management Perspective On Low Productivity and Related Causative Factors: A Study On Indian Apparel Manufacturing Industry

This document summarizes a research study on the factors contributing to low productivity in the Indian apparel manufacturing industry. The study found that human resource (HR) practices and high labor turnover had the strongest influence on low productivity, followed by issues with resources and infrastructure. While employee turnover can introduce new skills, it also leads to difficulties in attracting and retaining staff. To reduce turnover, the study recommends that companies review employee compensation and ensure a supportive working environment. The purpose of the study was to identify the key reasons for low productivity in the apparel industry and how different factors influence one another to impact efficiency levels in organizations.

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0% found this document useful (0 votes)
59 views12 pages

Management Perspective On Low Productivity and Related Causative Factors: A Study On Indian Apparel Manufacturing Industry

This document summarizes a research study on the factors contributing to low productivity in the Indian apparel manufacturing industry. The study found that human resource (HR) practices and high labor turnover had the strongest influence on low productivity, followed by issues with resources and infrastructure. While employee turnover can introduce new skills, it also leads to difficulties in attracting and retaining staff. To reduce turnover, the study recommends that companies review employee compensation and ensure a supportive working environment. The purpose of the study was to identify the key reasons for low productivity in the apparel industry and how different factors influence one another to impact efficiency levels in organizations.

Uploaded by

Abdur Rauf Khan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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International Journal of Academic Research and Development

International Journal of Academic Research and Development


ISSN: 2455-4197, Impact Factor: RJIF 5.22
www.academicsjournal.com
Volume 2; Issue 4; July 2017; Page No. 314-325

Management perspective on low productivity and related causative factors: A study on Indian apparel
manufacturing industry
1
Ishwar Kumar, 2 Dr. NB Patel
1
Assistant Professor, National Institute of Fashion Technology, Jodhpur, Rajasthan, India
2
Prinicpal, CU Shah College of Commerce, Gujrat University Ahmedabad, Gujrat, India

Abstract
Inefficiency to utilize the optimum potential of available resources is a fact in majority of organizations in South Asian countries.
The reasons behind this low productivity are specific to the industry type and dependent on various factors leading to the socio
economic conditions of that particular country. This study focused on the identifying the various reason for low productivity and
effect of prime factor on other factors which leads to low efficiency level in the organizations with reference to the Indian Apparel
Manufacturing Organization. The efficiency of an apparel manufacturing organization may be affected by the low technology
level, high labour turnover rate, criticality of design, supply chain management, communication gap and other factors. High
employee separation from an organization may restrict the efforts to attain organizational objectives. The low technology level
would reduce the efficiency level of worker and criticality of design would demand for high skill operators. Also, when an
organization separates a high skilled employee, the effects on team work, innovation, service to customers and delivery of services
to clients may be adversely affected. The quantitative research design approach is used, which allowed the researcher to use
structured questionnaires in collecting data. The study found that HR practices & labour turnover is the prime for productivity loss
in the Indian apparel industry followed Resource & infrastructure problem. Turnover, however, had dual effects on the
organization; positive and negative effects. Whiles employee turnover introduced new ideas and skill into the company; it’s also
led to difficulties in attracting new staff. To reduce the rate of turnover, management should review condition of service for
employees; and also ensure that the working environment is conducive.

Keywords: productivity, efficeiency, hr practice & labour turnover, criticality of design, infrastructure problem, apparel industry

Introduction focus and favorable policies is leading to growth in the


Overview to Indian Apparel Industry textiles and clothing industry. The Ministry of Textiles is
The textile and apparel industry can be broadly divided encouraging investments through increasing focus on
into two segments - yarn and fibre, and processed fabrics schemes such as Technology Up-gradation Fund Scheme
and apparel. It contributes 14 per cent to industrial (TUFS). To promote apparel exports, 12 locations have
production and 4 per cent to GDP. With over 45 million been approved by the government to set up apparel parks
people, the industry is one of the largest sources of for exports. As per the 12th Five Year Plan, the
employment generation in the country. The industry Government plans to provide a budgetary support of US$
accounts for nearly 13 per cent of total exports. India 4.25 billion to textiles. Free trade with ASEAN countries
accounts for approximate 14 per cent of the world's and proposed agreement with European Union will also
production of textile fibres and yarns (largest producer of help boost exports.
jute, second largest producer of silk and cotton, and third
largest in cellulosic fibre). India has the highest loom Background to Problem statement
capacity (including hand looms) with 63 per cent of the The apparel sector has over 25,000 domestic
world's market share. The domestic textile and apparel manufacturers, 48,000 fabricators and around 4,000
industry in India is estimated to reach US$ 141 billion by manufacturers/ exporters. Over 80 per cent (around 3200)
2021 from US$ 86 billion in 2016. Increased penetration of the total units are small operations (less than 20
of organized retail, favorable demographics, and rising machines) and are either proprietorship or partnership
income levels are likely to drive demand for textiles. firms. Since the SSI sector availed various fiscal and
India is the world's second largest exporter of textiles and other tax incentives, it encouraged fragmentation of the
clothing. garment industry. This in turn adversely affected the
Textile and apparel exports from India are expected to setting up of large-scale production capacity and also the
increase to US$ 82 billion by 2021. Readymade garments modernization of the sector. Even export oriented units in
remain the largest contributor to total textile and apparel terms of size compared unfavorably with international
exports from India, contributing 40 per cent to total standards. An average firm in India was found to have
textile and apparel exports. Cotton and man-made textiles only 119 machines compared to 698 in Hong Kong and
were the other major contributors with shares of 31 per 605 in China (Verma 2002). Low level of operation has
cent and 16 per cent, respectively. Rising government seriously constrained the technological upgradation of the
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International Journal of Academic Research and Development

sector. A study by NIFT (1999) found that in the export Drucker productivity means a balance between all factors
sector only 21 per cent manufacturers used modern of production that will give the maximum output with the
technology even by Indian standards and 70 per cent smallest effort. On the other hand, according to
between modern technology by Indian standard and International Labour Organisation productivity is the
primitive technology. Only 17 per cent owners had world ratio between the volume of output as measured by
class plants. As expected, in the domestic sector the production indicates and the corresponding volume of
situation was worse. Here only 9 per cent factories are labour input' as measured by production indices and the
modern by the Indian standard and none of them had corresponding volume of labour input as measured by
world class plants. This has seriously affected the employment indices. This definition applies to an
productivity of capital as well as labour in the garment enterprise, industry or an economy as a whole. The
sector. Productivity measured per machine per day in productivity of a certain set of resources (input) is
terms of number of blouses in India was found to be only therefore the amount of goods or services (output) which
10.2, compared to 20.6 in case of Hong Kong (Verma is produced by them. Land and building materials,
2002). A worker in an Indian factory typically makes 6-7 machines, manpower (labour), technology etc. are the
shirts whereas the one in Sri Lanka, Nepal or Dubai resources at the disposal of a manufacturing company.
makes as many as 22 to 32 shirts a day. According to a Therefore higher (improved) productivity means that
study by Mckinsey (2001), the productivity of labour in more is produced with the same expenditure of resource
the Indian apparel industry (measured as men’s shirt i.e. at the same cost in terms of land, materials, machine,
produced per hour) is only 16 per cent of the US level. time or labour, alternatively, it means same amount is
The study linked this to a number of factors like, HR produced at less cost in terms of land, materials, machine
practices & labour turnover, poor organization of time or labour that is utilized. In countries where capital
functions and tasks, lack of viable investments in and skill are short, while unskilled labour is plentiful and
technology and low scale of operation etc. In backdrop of poorly paid, it is especially important that higher
all these problems, the garment and made up sectors productivity (improved) should be looked for by
account for only around 15 per cent of the valued added increasing the output per machine or piece of plant or per
in the textiles sector in spite of high value added potential skilled worker. Improving productivity means increasing
of this sector as compared to other textile sectors (EPW or raising productivity with the help of using same
2002). amount of materials, machine time, land, labour or
technology. The following examples of each type of
Review of Literature productivity may make improved or higher productivity
Productivity is defined as a measure of quantifying the meaning clearer. Improved productivity of land: If by
output against the amount of input. It expresses the using better seed, better methods of cultivation and more
relationship between the quantity of goods and services fertilizer, the yield of corn from a particular hectare of
produced (output) and the quantity of labour, capital, land can be increased from 4 quintals to 6 quintals, the
land, energy, and other resources to produce it (input) productivity of that land, in the agricultural sense is
(Zandin, 2001). The only meaningful measure of increased (improved) by 50 percent. The productivity of
industrial competitiveness is productivity (Khurana & land used for industrial purposes is said to have been
Talbot, 1998) and hence this topic is widely discussed increased if the output of goods or services within that
especially in the manufacturing sector due to its solid link area of land is increased by whatever means. 2. Improved
to the organisational profitability. Consequently, there is productivity of materials: A skilled tailor is able to cut 12
a range of research studies taken place across the world suits from a bale of cloth where an unskilled labour is
to identify the various reasons for low productivity the able to cut only 10 suits from a bale of cloth, then the
productivity. productivity of the bale used by skilled worker is 16.6
percent greater than unskilled labour. 3. Improved
Productivity and Productivity Improvement: Concept productivity of machines: A machine tool is producing 90
Productivity is the ratio between output and input. It is pieces per working day (i.e. 8 hours). Considering that
quantitative relationship between what we produce and through the use of improved cutting tools, the output is
what we have spent to produce. Productivity is nothing increased to 120 pieces, then the productivity of that
but reduction in wastage of resources like men, material, machine will be increased by 33.33 percent. Improved
machine, time, space, capital etc. It can be expressed as productivity of Men (Labour): The worker is producing
human efforts to produce more and more with less and 32 plates per hour. Considering that with the improved
less inputs of resources so that there will be maximum methods of work, he will be able to produce 42 plates per
distribution of benefits among maximum number of hour, then productivity of worker will be improved by
people. Productivity denotes relationship between output 31.25 percent. Thus it can be said that more output results
and one or all associated inputs. European Productivity into higher productivity or improvement from same
Council states that Productivity is an attitude of mind. It amount of resources which means lower money costs and
is a mentality of progress of the constant improvement of higher net money returns per unit of output. Another
that which exists. It is certainty of being able to do better productivity concept known as Japanese Holistic View of
than yesterday and continuously. It is constant adoption Productivity explains productivity as a comprehensive
of economic and social life to changing conditions. It is holistic phenomenon encompassing all elements required
continual effort to apply new techniques and methods. It to improve products/ services (output). Productivity in
is faith in human progress‟. In the words of Peter the future must be concern itself with seeking affluence
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International Journal of Academic Research and Development

of a kind which will provide people with material wealth of firm size, export orientation, top management’s
as well as spiritual satisfaction. Also the outputs commitment, cost of capital, technical skills, and
particularly in the form of physical pollution must be competitive advantage.
controlled in the context of increasing concern of society C. Production System: The production process
for clean environment and sustainable development. To involves myriad steps and depends on the talent and
improve productivity products must be designed to skill of many individuals. It is a team effort. Apparel
satisfy customer need with optimum consumption of making is not conductive precision mass production.
resources without generation of waste in the Frequent style changes and varying degrees of fabric
manufacturing process. work ability force continual adjustment in the
manufacturing process standardized equipment is
Low Productivity: Possible Reason difficult to design and implement and production is
In addition to review of literature, the brain storming therefore dependent on skilled workers. An apparel
session with industry experts were also conducted to production system is an integration of material
identify the various reasons for productivity loss in handling, production processes, personnel and
Indian Apparel industry. The factors identified for equipment that direct work flow and generates
productivity loss are as below: finished product.
A. No Work Aid: The work aids that are used during D. Non Availability of Skilled Manpower: Since the
sewing operations can be categorized in a number of future of the textile and garments sector is based on
different ways and they vary in the aspect of their the production and export of Apparels items, there is
overall purpose that they emphasize some otter a need to focus on the development and growth of
greatly increased the speed of working in a situation this segment of the sector in order to make available
where quality is already satisfactory. Others give a the skilled work force. Deficiency in availability of
very little improvement in productivity but the great skilled workers is a major problem particularly in the
accuracy of sewing. In terms of their function, the garment industry. Traditional manually operating
commonest ones are used for guiding or folding skills are ineffective in modern garment industry.
materials for trimming threads and other components Shortage of these skills is affecting production and
from garments and for stacking the work after productivity of garment industry in particular
sewing. In terms of their method of working some are E. Low Salary: The garment industry is one of the
purely mechanical, some operate pneumatically, oldest and largest export industries. The industry
some are photoelectric and some are electronic, some exemplifies the challenges associated with global
are built into the machine such as a special monitor, manufacturing: low wages, "flexible" contracts and
some are a variation of a normal machine part such as sweatshop conditions. Informal garment and textile
a special presser foot, and some are a completely workers often experience isolation, invisibility and
separate added part. Guides are used where sewing lack of power, especially those who produce from
must take place in a certain position on a garment, their homes.
usually a certain from a raw edge as in a F. No Training: The apparel exports house pay very
conventional superimposed where a narrow item such less attention on the issue of training of existing
as a lace or braid must be correctly positioned on a worker. The refresher courses for skill development
garment and where one garment part must be are not a routine part of the company policies. The
correctly placed on another such as a patch pocket on workers are continuously doing a job from years on
a shirt skirt or trousers. In their simplest form, they years that lead to frustration in the employees.
are edge guides, formatting some kind of physical G. Work Environment: The work environment of
barrier to the fabric being joined together. The extra apparel factory is very conducive. The explosion in
machine parts which may attach to speed up the the volume of orders has not led to the necessary
production and improved quality in the sewing adaptation of production capacities. This has
machine are called work aid. provoked strong pressure on working conditions, as
B. Low Technology Level: Technology adoption has reported by NGOs. And despite growing unrest from
emerged as an important determinant of workers, which has led to strikes and protests in
competitiveness in recent global trade. Gaining several countries, often repressed as in Cambodia and
competitiveness in the quota free trade became a in Bangladesh, their main achievement has been
driving force for the garment firms to adopt slight increases in the minimum wage, which remains
technologies. However, there has not been much still far below a living wage. Workers often have to
research focused on technology adoption of a firm, perform their tasks under "sweatshop" conditions.
especially in the garment manufacturing industries in They work long hours every day, sometimes without
developing countries. Very little is known about the even a weekly rest day, and are often not paid for
status, activities, and organizational factors that overtime. Many of them do not have a regular
affect the scope and the level of technology adoption contract. In recent years, wages for garment workers
by garment manufacturers. The purpose of this study in the majority of Asian countries have fallen in real
is to investigate the status and the effects of terms, except in China. The gap between prevailing
organizational factors on the level of technology wages – the wages paid in general to an average
adoption within the context of the Indian garment worker – and living wages for garment workers in
industry. Specifically, this study focuses on the effect these countries has widened.
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International Journal of Academic Research and Development

H. Absenteeism & Turnover: organizational policy factors which affect employee


Employee absenteeism is a common problem in the a absenteeism
pparel sector in Sri Lanka. There are many research s I. Low Social, Health & Medical Security: Systemic
tudies done at the organizational level. However, ther hazardous conditions3 represent a common feature of
e are no proper many factories in this sector. The rapid expansion of
studies done to reveal the real problem of the the industry has led to the adaptation of many
employee absenteeism in this sector. Therefore, the buildings, built for other purposes – residential, for
problem of study is: what are the sources of instance – into factories, often without the required
employee absenteeism in the apparel sector. Then, permits. Other plants have had extra floors added or
the objective of the study is to find out the sources of have increased the workforce and machinery to levels
employee absenteeism in the apparel sector in India. beyond the safe capacity of the building. Lack of
150 operational level employees were the sample of appropriate protective equipment, old and outdated
the study and sampling method was random wiring at risk of short circuit (a major cause of fires),
sampling. The responses were selected from ten and non-existent or outdated fire extinguishing
organizations and all organizations were either facilities are often reported in these overcrowded
medium or large scale organizations. There were 36 workplaces. Fire exits are often deliberately blocked
questions relating to eighteen sources of employee by factory owners, and windows even barred, thus
absenteeism asked from the sample and primary data increasing the death toll in accidents.
were analyzed by using univariate analysis J. Fabric Handling: The raw material is prone to
techniques. According to the research findings, there changes as fashion changes very fast. In a same
are six factors do not affect the employee season, the worker have to do work on all type of raw
absenteeism while other factors such as job material like Light weight, medium weight and heavy
satisfaction, statues, working conditions, working weight. The handlings of the light weight fabric
hours, ability to present different skills, illness, become very difficult for the operators and they try
private life matters, marriage, leave policy, to shift to the factories who deal with medium or
participation of decision making, and heavy weight fabric.

Table 1: The various factors derived from the literature review and brain storming with industry experts leading to low productivity
in apparel industry may be tabulated as below
Resource &
Head - HR Practice & Criticality of Supply Chain Communication Any
Infrastructure
Factor Labour Turnover Design Management Problem Other
Problem
Fabric Delay in order
No work aid Low Salary Delay in Fabric
handling confirmation
Sewing No on time
Low Technology Level No Training Delay In Trim
Difficulty level information
Complex
Production System Work Environment Vendor Problem
Minor Design
Factor Cost of advance Small Parts in
Absenteeism
machinery Apparel
Non Availability of
Turnover
Skill manpower
Low Social Security
Medical Facilities

Impact of employees’ turnover on organization needs to frequently examine the costs of turnover and 16
efficiency create mitigation. If the company determines the most
Increased Customer Dissatisfaction According to Homer common causes of employee turnover, it would certainly
(2007) states that staff turnover is costly and disruptive. be able to take the necessary steps for recruiting and
It reduces the outputs and is disruptive as it requires the retaining well-qualified personnel. According to Miller
schedules and programmes to be modified. It causes the (2006) employee efficiency is an outcome of the
organization to lose a lot of money because they have to employee's knowledge, capability, motivation, workplace
employ other staff to come and help. There are a number environment, etc. Generally, efficiency is defined as
of reasons that contributes to the rate of turnover in "output gained from the fixed amount of inputs".
companies and they vary. They both stem from the Likewise, employee efficiency is the output gained by the
company the employees. Turnover is a very expensive inputs of the employee, with a goal to bring out profit to
aspect to companies, the reason the employers gives it the company and to the employee himself. Enhancing an
importance (Oregon, 2004). According to Namhoon employee's efficiency is not only dependent on the inputs
(2009), Employers incur considerable direct and indirect of the employee, but also by the aid provided by the
expenses when employees leave the company. Among organization and the nature of workplace environment.
other costs, they include, advertisement, headhunting According to Catano, Darr & Campbell, (2007)
fees, resource management expenses, time and efficiency measuring employee efficiency is to calculate an
and cost of training and development. The company employee's qualitative and quantitative work, it can be
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International Journal of Academic Research and Development

calculated on a monthly basis, yearly basis or by daily in a competitive environment that demands quality and
assessment. Before measuring an employee's efficiency, cost efficiency. Edwin, (2005) also agree that it is critical
it is necessary to determine what are outputs to be to understand that interdependent relationship exists
measured (Cascio, 2003). According to Duncan (2008) if between employee satisfaction and customer satisfaction
an employer expects too much output from the and that the organization needs to focus on both these
employees, they will find shortcuts to achieve the components.
expected benchmark and as a result, quality will suffer. Increase in work load for employees Horton, (2007),
Conversely, if less efficiency is expected, the company's states that the escalation in the rate of labor turnover is a
overall performance will decline because of inefficient major concern for businesses and is clearly impacting on
use of available resources (Buttrick,2009).If a manager organizational performance. High level of stress leads to
wants to measure employee's efficiency in the employees making unnecessary mistakes/accidents and
organization, he needs to know how to use certain basic low morale leads to them not caring about what they do.
software tools such as bar graph, pie chart, spreadsheet Staff turnover breaks the team spirit and group cohesion,
(Horton, 2007). Blashka (2007) contended that efficiency which is necessary for the successful and smooth running
is linked to employee morale. When employees are happy the business. Gupta (2008) states that “the real cost of
at work they have more motivation, which increases staff turnover leads to lowered morale among other
efficiency. Poor morale causes employees to be employees who must shoulder the workload, lost revenue
disengaged. A study done by the Corporate Executive from sales not made, the loss of customers who fled to
Board says that because employee engagement is down competitors for better service”. The morale of staff may
there has been a 5% decrease in efficiency. If employees be lowered because work overload, overtime work,
are not given the proper resources to do their jobs easily substitute personnel and working with fewer staff than
and efficiently, their efficiency will suffer. QuoStar required is problematic. This causes an increase in errors
Solutions, a technology consulting service, states that during the performance of activities and results in poor
innovative technology is one way that employers can service.
boost efficiency. Having automated, electronic processes
for certain tasks can free up employee time so that they Methodology
can maximize their efficiency with other tasks. There are The research methodology adopted in this paper includes
ways to tackle low efficiency. According to Tech 17 a critical review of current literature and a survey. The
Republic, efficiency can be combated by installing structured questionnaire was selected as a primary data
monitoring software that tracks what employees do all collection tool and target population was junior
day long. This will eliminate wasted employee hours executives and middle management levels of the
spent surfing the Internet or talking to friends over email manufacturing organisations as they are normally
and instant messaging (Blahna, 2005). responsible for directing the workforce and initiating the
As the labor market continues to tighten, employers are changes in the organisation. While workers are an
increasingly concerned about maintaining a stable essential component of change, the present research
workforce. They need competent, dedicated, and effective clearly tried to consider productivity issues and the
workers to serve their customers to fulfill their missions. related factors from an organisational and management
Without a sufficient qualified and productive workforce, viewpoint. The research questionnaire facilitated the
employers are vulnerable to competitive forces as well as respondents to reflect the different primary causes
the impact of negative relationships with their customers. affecting the productivity on their point of view and to
It is frustratingly difficult to find, recruit, and hire the rate the importance of each 386 primary cause that limits
caliber of employees that companies desire today (Gupta, the level of productivity. The questionnaire comprised
2008). Stability in a company's workforce has a number with two sections namely respondents’ background
of advantages for the company's health, for workers, for information and primary causes for low productivity
customers, for suppliers, for investors, for the industry, which were identified based on the previous literature,
and for the economy at large. If the workforce is stable, together with input and modifications by academic
management can invest its energy in moving the company experts. The participants were asked to indicate their
forward. Leaders are not distracted by the need to response based on the five points Likert scale. Before
continually hire new (replacement) employees, so they administering the questionnaire, a pilot study was
can concentrate on product/service development, conducted with a sample of five participants from the
marketing, quality and process improvement, and industry. The main purpose of the pilot study was to
investment of surplus funds. They aren't required to staff verify the completeness and practicality of the
their human resources department to feed "the revolving questionnaire in capturing the factors relevant in Indian
door. Stable workforce employers have a greater potential context.
of strong profits (Edwin, 2005). Dempsey (2003) asserts
that staff turnover may have devastating effects on Survey Findings and Analysis
service rendered by the organization and these may bring This Chapter will discuss on the identifying the factor
deficits in meeting customer demand. This leads to responsible for productivity loss in the apparel industry,
customer irritation and increase in complaints. Dubois designing of questionnaire and understanding the impact
(2004) states that organizations that create work of labour turnover on other activities of industry. To
environments that attracts, motivate and retain hard ascertain the various factors responsible for productivity
working individuals will be better positioned to succeed loss, the discussion with industry experts, faculty and
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International Journal of Academic Research and Development

secondary data will be used. The apparel sector has over SPSS is a Windows based program that can be used to
25,000 domestic manufacturers, 48,000 fabricators and perform data entry and analysis and to create tables and
around 4,000 manufacturers/ exporters. Over 80 per cent graphs. SPSS is capable of handling large amounts of
(around 3200) of the total units are small operations (less data and can perform all of the analyses covered in the
than 20 machines) and are either proprietorship or text and much more. SPSS is commonly used in the
partnership firms. Hasan and Jandok (2013) have carried Social Sciences and in the business world, so familiarity
the investigation further and they find that in India the with this program should serve you well in the future.
shares of micro and small enterprises, medium and large
enterprises in manufacturing employment were 84, 5.5 What is Analysis of Moment Structure (AMOS)?
and 10.5 per cent respectively. Hence the total medium AMOS is statistical software and it stands for analysis of
and large size export house in India is around 800. The a moment structures. AMOS is an added SPSS module,
sample size was selected at 95 % confidence level and 5 and is specially used for Structural Equation
% Error. The sample size derived from the formula is 384 Modelling, path analysis, and confirmatory factor
for Employer survey.. The closed ended question was analysis. It is also known as analysis of covariance or
designed for the convenient of conclusion. The causal modelling software. AMOS is a visual program for
questionnaires were circulated to all senior level structural equation modelling (SEM). In AMOS, we can
manager/ employer by personal meeting to approximate draw models graphically using simple drawing tools.
600 industries. In response to this 386 valid response AMOS quickly performs the computations for SEM and
were collected and received. displays the results.
Researcher has used SPSS for analysis of data and
Analysis of Data derived the below result. The questionnaire has two parts
The analysis of data is one the most important part of a A & B. The analysis of the data has been done separately
research. The data can be analysed manually or with the for both the parts. The part A has majorly focused on
help of software. The manual analysis of the data may identifying the major factor responsible for the
lead to ambiguity in result. The researcher fell that the productivity loss in the Indian Apparel Industry and part
software for the data analysis may be used. The renowned “B” focuses on the effect of labour turnover on the
software for data analysis is Statistical Package for the various dynamics / working of the Indian Apparel
Social Sciences SPSS and AMOS. Industry. The various factors in part “A” has been
derived upon by panel discussion, interview with industry
What is Statistical Package for the Social Sciences experts and professor teaching the subjects related to
(SPSS)? production management and organisational behaviour in
renowned Fashion institute of India.

Table 2: Analysis of Part “A” of Questionnaire


Descriptive Statistics
N Sum Factor Mean
384 1464 Resource & Infrastructure Problem 3.81
384 1933 HR Practice & Labour Turnover 5.03
384 1330 Criticality of Design 3.46
384 1370 Supply Chain Management 3.57
384 1173 Communication Problem 3.05
Valid N (list wise) 384 786 Any Other 2.05

Fig 1: The graphical representation of the above data may be presented as below in figure

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International Journal of Academic Research and Development

From the above table and pie chart, it is derived that HR Further the frequency of each factor (total Six) was also
Practice and Labour Turnover is the prime factors for the derived to understand the number of responses who has
productivity loss in Indian Apparel industry. given rating six to each factor.

Table 3
A. Resource Infrastructure Problem
Frequency Percent Valid Percent Cumulative Percent
1 25 6.5 6.5 6.5
2 58 15.1 15.1 21.6
3 84 21.9 21.9 43.5
Valid 4 71 18.5 18.5 62.0
5 89 23.2 23.2 85.2
6 57 14.8 14.8 100.0
Total 384 100.0 100.0

Fig 2: The 57 (14.84%) respondents out of 384 have given Resource & Infrastructure problem six rating.

Table 4: HR Practice Labour Turnover


Frequency Percent Valid Percent Cumulative Percent
1 2 .5 .5 .5
2 1 .3 .3 .8
3 33 8.6 8.6 9.4
Valid 4 92 24.0 24.0 33.3
5 74 19.3 19.3 52.6
6 182 47.4 47.4 100.0
Total 384 100.0 100.0

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International Journal of Academic Research and Development

Fig 3: The 182 (47.40%) respondents out of 384 have given HR & Labour Turnover problem six rating.

Table 5
Frequency Percent Valid Percent Cumulative Percent
1 26 6.8 6.8 6.8
2 79 20.6 20.6 27.3
3 105 27.3 27.3 54.7
Valid 4 75 19.5 19.5 74.2
5 63 16.4 16.4 90.6
6 36 9.4 9.4 100.0
Total 384 100.0 100.0

Fig 4: The 36 (9.38%) respondents out of 384 have Criticality of Design factor problem six rating.

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International Journal of Academic Research and Development

Table 6
Frequency Percent Valid Percent Cumulative Percent
1 40 10.4 10.4 10.4
2 71 18.5 18.5 28.9
3 78 20.3 20.3 49.2
Valid 4 72 18.8 18.8 68.0
5 72 18.8 18.8 86.7
6 51 13.3 13.3 100.0
Total 384 100.0 100.0

Fig 5: The 51 (13.28%) respondents out of 384 have Supply Chain Management factor problem six rating.

Table 7
Frequency Percent Valid Percent Cumulative Percent
1 55 14.3 14.3 14.3
2 127 33.1 33.1 47.4
3 62 16.1 16.1 63.5
Valid 4 56 14.6 14.6 78.1
5 50 13.0 13.0 91.1
6 34 8.9 8.9 100.0
Total 384 100.0 100.0

Fig 6: The 34 (8.85%) respondents out of 384 have given Communication Problem factor problem six rating.

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Table 8
Frequency Percent Valid Percent Cumulative Percent
1 235 61.2 61.4 61.4
2 49 12.8 12.8 74.2
3 22 5.7 5.7 79.9
Valid 4 20 5.2 5.2 85.1
5 35 9.1 9.1 94.3
6 23 6.0 6.0 100.0
Total 384 100.0 100.0

Fig 7: The 1 (0.26%) respondents out of 384 have given Any Other factor problem six rating.

Analysis of Part “B” of Questionnaire manufacturing facility gets adversely affected by the HR
The part “B” of the questionnaire asses the various Practices and Labour Turnover.
impact of labour turnover on the functionality of various
departments. The functionality of the all department of a Affect of Labour turnover on Apparel Industry

Table 9: Descriptive Statistics


N Sum Affect Mean
384 1509 WoR (Wastage of Resource) 3.93
384 1474 RP (Reduction in Poverty) 3.84
384 1399 RQ (Reduction in Quality) 3.64
384 1348 NMD (Not Meeting Deadline) 3.51
384 1270 LoC (Loss of Customer) 3.31
384 1405 IWL (Increase in Workload) 3.66
384 1437 WS (Increase in Work Stress) 3.74
384 1382 OT (Increase in Overtime) 3.60
384 1431 RTW (Reduce Team Work) 3.73
384 1528 Increase in Training cost 3.98
Valid N (list wise) 384

The table shows that all the parameter contained in the the above parameter, if a factory improved its HR
questionnaire are equally adversely affected by the HR practices and control the labour turnover, the
Practice & labour Turnover. The mean value of the all the organization will be in a condition to achieve the desired
parameters is stand in a range bound manner from 3.51 – goal of improving the productivity. The graphical
3.98. In order to improve the productivity all the representation of the above table may understand from
parameter mentioned should be controlled and to control below figure.

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International Journal of Academic Research and Development

Fig 8

Findings important factor for Productivity loss in the Apparel


A. The 47.40% of the respondents has given 6 rating to Industry by the Employer or Higher Level Manager. The
HR Practice & Labour Turnover which proves that HR below comparative table
Practice & Labour Turnover is being considered as most

Table 10
S. No Factor Percentage Highest Rating (6)
1 RESOURCE & INFRASTRUCTURE PROBLEM 14.84%
2 HR PRACTICE AND LABOUR TURNOVER 47.40%
3 CRTICALITY OF DESIGN 9.38%
4 SUPPLY CHAIN MANAGEMENT 13.28%
5 COMMUNICATION PROBLEM 8.85%
6 ANY OTHER 0.30%

B. 24% of the Total Population size has considered HR 5. Verma S. Export competitiveness of Indian textile
Practice & Labour Turnover as most prime factor & and garment, 2002.
second prominent factor derived from the survey is 6. Catano V, Darr M, Campbell C. Performance
Resource & Infrastructure Problem with 17% of the total appraisal of behaviour-based competencies: Journal
Population. of Personnel Psychology. 2007, 13.
C. Labour Turnover adversely affects the all the 7. Dempsey B. Research Methods, Fourth Edition,
dynamics of Apparel Industry viz. Resources Utilization, Pearson Publishers, 2003.
Work Productivity, Quality, Shipment Time line, 8. Duncan G. Employees Turnover and organization
Customer, Work Load, Overtime, Team Work and Profitability. Journal of Human Resource
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