Managerial factors influencing productivity of manufacturing industry - The case of mechanical industry

Abstract

Productivity is considered key element for companies to gain competitive advantage in manufacturing industry, especially in mechanical industry. Various research papers have pointed out the importance of productivity and have shown variety of factors to control the productivity. In align with previous studies, this thesis focuses on some key components of managerial factors which can impact the result of productivity. From the linear regression analysis, the conclusion is that the productivity have statistical relationship with managerial factors. In details, the customer quality focus has strongest influence with prior productivity. Meanwhile, the relationship between productivity in industry and customer quality focus and HRM practice of productivity is positive influence together. The regression equation indicates that there are two functions after using EFA technique. The first relationship between Prior Productivity and customer quality focus can explain 28.2 percent of the variance and leave relationship between prior productivity and HRM practice for productivity unexplained. Further analysis is requested in order to confirm if the factor HRM practice for productivity has no effect on Prior Productivity in general. The remaining 71.8 percent can be obtained by other factors of measuring Prior Productivity. And these are not included in the scope of this study. The second relationship between Productivity in Industry and customer quality focus and HRM practice for productivity can explain 12.8 percent of the variance. Hence, the remaining 87.2 percent can be obtained by other factors of measuring Productivity in the Industry which is also in the scope of this research. Keywords: Productivity, Customer Quality Focus, HRM Practice for Productivity.