Labor Productivity Analysis and Factors Affecting Oromia Credit and Saving Share Company

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Date

2018-10

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Publisher

Addis Ababa University

Abstract

Now day’s productivity is an issue of any organization that they talk about it and give emphasis to survive and compete in the dynamic market. Among other partial productivities, several research works indicated that the productivity of labor is the prime concern and it is considered as the engine of any kind. Because much of the success of any organization relies up on the productivity of its workforce and for many businesses the most significant cost is labor, all efforts are focused on improving workforce productivity. Never the less the Oromia Credit and Saving Share company has been indicating reasonable growth in the first decade of its operation, its staff productivity was very low as compared to the resource allocated for the performance of its huge workforce. In an attempt to improve this, this study aims to analyze the staff productivity of OCSSCO and identify the factors affecting it. The study chosen labor productivity based on the results found from secondary data of the company and includes an analysis of statistical correlation of primary data between the factors affecting labor productivity. The study used productivity index concept to identify which partial productivity adversely affecting OCSSCO’s productivity and confirmatory factor analysis to identify the vital factors affecting the staff productivity of it. The findings of this thesis indicated that, the significantly factors impacting staff productivity of OCSSCO are motivation and commitment, staff retention and working environment factors. Even though the impact of leadership and staff training results investigated on labor productivity of OCSSCO were not significantly supported, these two factors are strongly correlated with the other three left factors which their effects directly influence these factors. The developed conceptual frame work model helps the company to use human resource efficiently and effectively by improving the vital factors.

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Keywords

Oromia Credit and Saving Share Company, Labor Productivity, Factors

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