CSR Policies: Effects on Labour Productivity in Spanish Micro and Small Manufacturing Companies

This paper analyses empirical evidence of efforts to enable Spanish micro and small manufacturing companies to boost their labour productivity rates through the development of the main pillars of their corporate social responsibility (CSR) policies. This study aims to develop new approaches and sensibilities towards work from an ethical, values (virtues) and CSR perspective, showing how internal dimensions of CSR, such those related to relationships with employees and responsibility in processes and product quality, can improve labour performance and labour efficiency, thereby contributing to a better society. The results of a sample of 929 small businesses indicate that the social responsibility policies that most contributed to a short-term increase in labour productivity are those related to internal aspects of the company, in particular its involvement in the quality of processes and products, promotion of innovation and employee care. However, the impact on labour productivity of CSR policies related to external factors, such as relationship with stakeholders and environmental concern, could not be empirically proven in this paper.

The impact of foreign direct investment on labour productivity in the Chinese electronics industry

Foreign direct investment (FDI) may have a positive impact on labour productivity in recipient industries through direct introduction of capital, technology and management skills and indirectly through spillover effects on domestic firms. This study uses a model intended to examine the overall effects of inward FDI in the Chinese electronics industry. Official data are used for 41 sub-sectors of the industry in 1996 and 1997 having differing levels of FDI. Labour productivity is modelled as dependent on the degree of foreign presence in the industry and other variables, namely capital intensity, human capital and firm size for scale factors. The econometric results suggest that foreign presence in the industry is associated with higher labour productivity. © 2001 Elsevier Science Ltd.

Trade unions and productivity:the impact of union presence on labour productivity in Korean manufacturing

This thesis examines the theoretical and empirical relationship between trade unions and productivity in the Korean auto and cement manufacturing industries, during the 1980s. It challenges the tenets of the existing debate by stressing the contingent nature of this relationship. In particular this thesis pinpoints inadequacies of econometric analysis as the only method of judging this association between union presence and productivity, because this ignores national and historical industrial relations contexts. Moreover, the polarity between positive and negative views of trade union influences on productivity is seen as needlessly limited, failing as it does to consider the full context of labour-management dynamics within the employment relationship. Empirically, this thesis focuses on the unionism and productivity during two contrasting political periods: the first a time of constraint on union action and the second a period of relative freedom. It examines these periods using a full range of quantitative and qualitative analysis. Of particular significant is the inclusion of attitude surveys of the relationship between the presence of unions and productivity conducted amongst workers, managers and trade union officials. The broad conclusion of the thesis is a rejection of the validity of continuing to examine the relationship between trade unions and productivity without locating this within national and historical industrial relations contexts.

Labour productivity change: drivers, business impact and macroeconomic moderators

This paper focuses on the operational drivers of labour productivity changes. We consider two sets of drivers: a) current working practices b) changes in working practices through management programs. The relationship between these two sets of drivers and productivity changes are analysed. We also investigate the importance of productivity growth by looking at the impact of labour productivity changes on business performance changes. Finally, the moderating effects of industry and country on the use of drivers of productivity changes are examined. Data from an international survey, IMSS-IV, are used for the analysis.

Labour productivity in Iranian construction projects perceptions of chief executive officers

Purpose – The purpose of this paper is twofold. First, it aims to highlight the main factors and items affecting the productivity of construction projects, based on the perceptions of CEOs in construction companies in Iran. Second, the study compares the elicited CEOs’ perceptions against the findings of studies based on the views of such as project managers, middle managers and employees in other levels. Design/methodology/approach – The study drew upon literature on construction work to develop a conceptual model. Further, a total of 60 CEOs from road construction companies were surveyed using a five-point Likert scale questionnaire to generate the data. The collated data were categorised and ranked according to the CEOs perceived level of importance using the relative importance index. Findings – The findings highlight the main factors and items affecting labour productivity in construction projects in Iran as perceived by CEOs, which are mainly of human resources management nature and could be attributed to motivation and managerial policy aspects. The study also recognises that factors associated with the working environment particularly safety and health are perceived as insignificant by Iranian CEOs which could be a concern for the Iranian construction industry. The discussions shed some light on the discrepancies between the perceptions of CEOs and previous studies in regards to major determinants of productivity in the construction context. Originality/value – This study is the first study aiming at discussing the perceptions of CEOs of construction companies active in construction projects in Iran. As such, the study highlights the standpoint of the main decision makers in construction companies in regards to labour productivity in the construction sector. Thus, the key contribution of the present study is providing insight into the perceptions of CEOs, who play the most vital role in strategic development of construction companies whereas previous studies have mostly focused on project or middle managers having a lower influence in determining the strategic plans of companies.

Implementing the international benchmarking labour productivity theoretical model

Purpose – Building upon the results of a critical review of previous studies, the purpose of this paper is to present a framework to enhance the reliability of the theoretical model for international benchmarking of labour productivity (TMIBLP) method for construction project activities. The next part of the paper presents the results of implementing the proposed framework for construction activities in the Iranian construction industry. Design/methodology/approach – This paper draws upon a critical review of the literature to highlight the drawbacks of the previous studies concerning implementing TMIBLP within the construction industry. Identifying these shortcomings, the authors propose a framework for construction projects, which presents the procedure for deploying TMIBLP for construction activities in a reliable manner. The final section of the paper demonstrates the empirical implementation of the proposed framework within the Iranian construction industry. Findings – The primary contributions of the paper include: identifying the drawbacks of previous studies within the construction context, the framework that would lead construction managers towards more reliable implementation of benchmarking for construction projects, and determining the baseline of erecting steel structures in a developing country. Practical implications – A practical implementation of the TMIBLP method was presented to address the lack of research in Iran and to show the feasibility of using the framework developed. The authors investigated the daily labour productivity for the activity of structural steel erection for six projects in Tehran in order to determine the values of the baseline productivity for each project. Accordingly, the disruption index, performance ratio and project management index as the project benchmarks were calculated for all six projects. Originality/value – Underlining the necessity of implementing methods such as TMIBLP, this study outlines the outcomes of the first study on the benchmarking of construction activities deploying the proposed framework and using the data on erecting steel structures from six construction projects in Iran. The discussions provide guidelines for construction project managers regarding benchmarking labour productivity. The paper concludes with suggestions for future research opportunities.

Decomposition of temporal changes in construction labour productivity

Construction productivity is recognized as an indicator reflecting the performance efficiency and competitiveness of the industry. A large amount of research has been carried out focusing on the decomposition of the influential factors and the temporal trends of construction productivity changes, respectively. However, the decomposition of the temporal changes in construction labour productivity has not yet been explored. Analogous to the framework of the productivity frontier, this research argues for a four-component decomposition of the temporal changes in construction labour productivity, including technology, technology-utilization efficiency, the capital-labour ratio and production capacity. An error correction model is subsequently estimated using the panel data regression method to investigate the effects of these components on the temporal changes in construction productivity across a sample of the Australian construction industry. The empirical results con?rm that the effects of the four components on the temporal changes in construction productivity changes vary over the observed time periods. From the aggregate level, the technology-utilization efficiency and capital-labour ratio across the regions are found to be barriers to growth in Australian construction productivity. Nevertheless, the effects of technology-utilization efficiency and production capacity varied significantly over the three sub-periods, when innovative national economic systems were introduced.

Compositional effects on productivity, labour cost and export adjustments. Bruegel Policy Contribution 2012/11, June 2012

Sectoral shifts, such as shrinkage of low labour productivity and the low-wage construction sector, can lead to apparent increased aggregate average labour productivity and average wages, especially when capital intensity differs across sectors. For 11 main sectors and 13 manufacturing sub-sectors, we quantify the compositional effects on productivity, wages and unit labour costs (ULCs) based and real effective exchange rates (REER), for 24 EU countries. Compositional effects are greatest in Ireland, where the pharmaceutical sector drives the growth of output and productivity, but other sectors have suffered greatly and have not yet recovered. Our new ULC-REER measurements, which are free from compositional effects, correlate well with export performance. Among the countries facing the most severe external adjustment challenges, Lithuania, Portugal and Ireland have been the most successful based on five indicators, and Latvia, Estonia and Greece the least successful. There is evidence of downward wage flexibility in some countries, but wage cuts have corrected just a small fraction of pre-crisis wage rises and came with massive reductions in employment even in the business sector excluding construction and real estate, highlighting the difficulty of adjusting wages downward.

Link between energy consumption per hour of activity and productivity of labour

The data set shows energy consumption per hour of work (in MJ/hour), and labour productivity (in USD/hour) in the PS economic sector (Energy & Mining + Industry + Construction) for the period 1970-2009 and for the following countries: Germany, Spain, USA, Canada, Italy, UK, France, Japan. The intention is to look at the relationship between energy consumption as a driver of improvements in the productivity of labour. This is of particular relevance for the discussion of reducing working time in the context of the 'degrowth' debate, as it is done in the article to which this data is a suplement.

House building productivity : a study of labour requirements on Scottish house building sites using activity sampling methods

This study is concerned with labour productivity in traditional house building in Scotland. Productivity is a measure of the effective use of resources and provides vital benefits that can be combined in a number of ways. The introduction gives the background to two Scottish house building sites (Blantyre and Greenfield) that were surveyed by the Building Research Establishment (BEE) activity sampling method to provide the data for the study. The study had two main objectives; (1) summary data analysis in average manhours per house between all the houses on the site, and (2) detailed data analysis in average manhours for each house block on the site. The introduction also provides a literature review related to the objectives. The method is outlined in Chapter 2, the sites are discussed in Chapter 3, and Chapter 4 covers the method application on each site and a method development made in the study. The summary data analysis (Chapter 5) compares Blantyre and Greenfield, and two previous BEE surveys in England. The main detailed data analysis consisted of three forms, (Chapters 6, 7 and 8) each applied to a set of operations. The three forms of analysis were variations in average manhours per house for each house block on the site compared with; (1) block construction order, (2) average number of separate visits per house made by operatives to each block to complete an operation, and (3) average number of different operatives per house employed on an operation in each block. Three miscellaneous items of detail data analysis are discussed in Chapter 9. The conclusions to the whole study state that considerable variations in manhours for repeated operations were discovered, that the numbers of visits by operatives to complete operations were large and that the numbers of different operatives employed in some operations were a factor related to productivity. A critique of the activity sampling method suggests that the data produced is reliable in summary form and can give a good context for more detailed data collection. For future work, this could take the form of selected operations, with the context of an activity sampling survey, that wuld be intensively surveyed by other methods.

Distribution trade sector output and productivity performance : a case study of Singapore and Hong Kong 2001-2008

This paper employs the industry of origin approach to compare value added and productivity of Singapore and Hong Kong's Distribution Trade Sector for the period 2001-2008. The direct comparison between these two economies was motivated by the statements of the Singapore government: Its services sector, especially in Retail Trade, lags behind Hong Kong's productivity levels. The results show that since 2005, Singapore's Distribution performance in terms of labour productivity was below Hong Kong's level, which was largely due to poor performance in its Retail Trade sector arising from an influx of foreign workers. Results from total factor productivity (TFP) between these two economies also suggest that Hong Kong's better performance (since 2005) was largely due to its ability to employ more educated and trained workers with limited use of capital. The results suggest that polices that worked in Hong Kong may not work for Singapore because its population is more diverse which poses a challenge to policy-makers in raising its productivity level.

Economic fluctuations and productivity in the Malaysian construction sector

Growth in productivity is the key determinant of the long-term health and prosperity of an economy. The construction industry being one of major strategic importance, its productivity performance has a significant effect on national economic growth. The relationship between construction output and economy has received intensive studies, but there is lack of empirical study on the relationship between construction productivity and economic fluctuations. Fluctuations in construction output are endemic in the industry. In part they are caused by the boom and slump of the economy as a whole and in part by the nature of the construction product. This research aims to uncover how the productivity of construction sector is influenced in the course of economic fluctuations in Malaysia. Malaysia has adopted three economic policies – New Economic Policy (1971-1990), National Development Policy (1991-2000) and the National Vision Policy (2001-2010) since gaining independence in 1959. The Privatisation Master Plan was introduced in 1991. Operating within this historical context, the Malaysian construction sector has experienced four business cycles since 1960. A mixed-method design approach is adopted in this study. Quantitative analysis was conducted on the published official statistics of the construction industry and the overall economy in Malaysia between 1970 and 2009. Qualitative study involved interviews with a purposive sample of 21 industrial participants. This study identified a 32-year long building cycle appears in 1975-2006. It is superimposed with three shorter construction business cycles in 1975-1987, 1987-1999 and 1999-2006. The correlations of Construction labour productivity (CLP) and GDP per capita are statistically significant for the 1975-2006 building cycle, 1987-1999 and 1999-2006 construction business cycles. It was not significant in 1975-1987 construction business cycles. The Construction Industry Surveys/Census over the period from 1996 to 2007 show that the average growth rate of total output per employee expanded but the added value per employee contracted which imply high cost of bought-in materials and services and inefficient usage of purchases. The construction labour productivity is peaked at 2004 although there is contraction of construction sector in 2004. The residential subsector performed relatively better than the other sub-sectors in most of the productivity indicators. Improvements are found in output per employee, value added per employee, labour competitiveness and capital investment but declines are recorded in value added content and capital productivity. The civil engineering construction is most productive in the labour productivity nevertheless relatively poorer in the capital productivity. The labour cost is more competitive in the larger size establishment. The added value per labour cost is higher in larger sized establishment attributed to efficient in utilization of capital. The interview with the industrial participant reveals that the productivity of the construction sector is influenced by the economic environment, the construction methods, contract arrangement, payment chain and regulatory policies. The fluctuations of construction demand have caused companies switched to defensive strategy during the economic downturn and to ensure short-term survival than to make a profit for the long-term survival and growth. It leads the company to take drastic measures to curb expenses, downsizing, employ contract employment, diversification and venture overseas market. There is no empirical evidence supports downsizing as a necessary step in a process of reviving productivity. The productivity does not correlate with size of firm. A relatively smaller and focused firm is more productive than the larger and diversified organisation. However diversified company experienced less fluctuation in both labour and capital productivity. In order to improve the productivity of the construction sector, it is necessary to remove the negatives and flaws from past practices. The recommended measures include long-term strategic planning and coordinated approaches of government agencies in planning of infrastructure development and to provide regulatory environments which encourage competition and facilitate productivity improvement.

An analysis of construction productivity in Malaysia

The construction industry is an industry of major strategic importance. Its level of productivity has a significant effect on national economic growth. Productivity indicators are examined. The indicators consist of labour productivity, capital productivity, labour competitiveness, capital intensity and added value content of data, which are obtained from the published census/biannual surveys of the construction industry between the years 1999 and 2011 from the Department of Statistics of Malaysia. The results indicated that there is an improvement in the labour productivity, but the value-added content is declining. The civil engineering and special trades subsectors are more productive than the residential and non-residential subsectors in terms of labour productivity because machine-for-labour substitution is a more important process in those subsectors. The capital-intensive characteristics of civil engineering and special trade works enable these subsectors to achieve higher added value per labour cost but not the capital productivity. The added value per labour cost is lower in larger organizations despite higher capital productivity. However, the capital intensity is lower and unit labour cost is higher in the larger organizations.

Output and productivity comparisons of the Singapore and Hong Kong wholesale and retail trade sectors, 2001–2008

This paper employs the industry of origin approach to compare value-added and labour productivity of Singapore and Hong Kong’s wholesale and retail sectors for the period 2001–08. The direct comparison between these two economies was motivated by the statement of the Singapore Government that its services sector, especially the retail sector, lagged behind Hong Kong’s productivity levels. The results show that since 2005, Singapore’s wholesale and retail sector performance in terms of labour productivity has been below Hong Kong’s level, largely due to the poor performance of its retail sector arising from an influx of foreign workers. Results from total factor productivity analysis of these two economies also suggest that Hong Kong’s better performance (since 2005) was largely due to its ability to employ more educated and trained workers with limited use of capital. The results suggest that polices that have worked in Hong Kong may not work in Singapore because its population is more diverse, which poses a challenge to policymakers in raising its productivity level.