Factors affecting the productivity of employees in manufacturing firms in Nairobi

Abstract

The productivity of manufacturing firms has been a problem to most employers and the government in the recent times. It is now becoming a daily routine for firms to make losses. Rapid technological changes, globalization and the liberalization of the world product market have further compounded this problem. However, despite the new trend very little is known of the factors that affect firm productivity.

The main objective of the study was to establish the factors that influence the productivity of a firm. The study explored the extent to which increased employee turnover; good quality raw materials and well-maintained machines affect productivity. The study targeted a population of 183 manufacturing firms out of which a sample of 20 firms and 5 respondents from each firm were obtained by simple random sampling.

A pilot study was also done from two firms in the population. Both primary and secondary data were collected. Primary data were collected by the survey method; personal observation, oral interview and self-administered questionnaires. Both closed and open ended questions were used but closed questions of the Likert scale type were emphasized. Secondary data was obtained from journals, magazines, books and the internet. The collected data collected were summarized in form of tables, percentages and mean scores.

The data were then processed and analyzed statistically. Appropriate computer software (SPSS) was used to analyse the data. The data were then interpreted and conclusions and recommendations made. The study was limited by low response or non-response to some of the questionnaires. Secondary data and the results of the pilot study were used to solve this problem.

The results of this research were anticipated to be useful to managers, employees, employers, researchers and the government. The study concludes that raw material quality, job satisfaction, machine maintenance and high employee turnover significantly affect the overall productivity of a firm.