The relationship of external factors, internal factors, and productivity improvement programs on productivity in two apparel manufacturing plants
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Abstract
This study examined three broad areas which related to plant level productivity in two apparel manufacturing plants. First, external factors, specifically unemployment and seasonal cycles, were examined. Second, internal organizational factors involving the size of the organization over time and the absenteeism rate within the company were studied. Finally, after holding constant the effects of the above factors, this study examined the impact of two types of positive incentive programs on employee productivity.
It was hypothesized that there would be a positive relationship between unemployment and plant productivity. Partial support was found in one plant. A relationship between productivity level and seasonal cycles was also hypothesized. Generally, season was related to productivity, although the patterns for these relationships were very plant specific. The hypothesis that there would be a negative relationship between productivity rate and absenteeism rate received support in one plant only. It was further hypothesized that there would be a negative relationship between productivity level and size of the plant over time. The results for both plants were very different; however neither were in support of the hypothesis in the predicted direction.
To evaluate the impact of the two productivity improvement programs, mean differences (adjusted for covariates and autocorrelation) were compared for three time periods: before, during, and after program implementation. In the Salem plant the time periods before and during the program had significantly higher productivity rates when compared to the period after the program ended. In the Jefferson plant the productivity level was slightly higher during program implementation when compared to the time period before the program. No other significant differences were found.