Developing Structural Relationship of Motivational Factors and Their Impact on Labor’s Relative Efficiency: A Case GMM Garment PLC
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Date
2018-07
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AAU
Abstract
Creating motivated employee is one way of optimizing labor efficiency in any industrial sector.
Employee motivation can be enhanced either by external or internal factors. Now a day’s
Ethiopian apparel industry is one path for export earnings. The government facilitates industry
parks to attract potential foreign investors. Manufacturers in the industry park raised the issue of
recruiting, employee turnover, and worker demotivation as a key concern. This paper aims to
identify theoretical relationship of motivation factors and to analyze their impact on labor
relative efficiency at GMM Garment PLC. Structured questionnaire, informal interview, data
records and related literatures are used as a data collection tools. Structural Equation Modeling is
used for confirmatory factor analysis. The finding show extrinsic motivation factor such as
monetary incentive, non-monetary incentives, job related incentives and company related
motivational factors are highly significant factor for productivity. Fuzzy expert system is also
used for ranking motivation factors. The result is similar to confirmatory factor analysis which is
extrinsic motivation factors have high significant impact on productivity. Data envelopment
analysis used to measure operator’s relative efficiency and motivational factors are considered as
input and output variables. The result shows that both intrinsic and extrinsic motivation factors
have significant impact on labor’s relative efficiency. Sensitivity analysis result indicates
monetary incentive is the highest significant factor among the other identified motivation factors.
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Keywords
DEA, Motivation factors, Productivity, labor Relative Efficiency