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A Case Study of Kakira Sugar Works Limited

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A Case Study of Kakira Sugar Works Limited MAKERERE UNIVERSITY EFFECTS OF WORKING CONDITIONS ON LABOUR PRODUCTIVITY IN SUGAR FACTORIES (A CASE STUDY OF KAKIRA SUGAR WORKS LIMITED) BY WOTALI FLORENCE M.A.EPM (MUK) 2016/HD06/1151U A RESEARCH REPORT SUBMITTED TO THE GRADUATE SCHOOLOF ECONOMICS IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE AWARD OF A MASTER OF ARTS DEGREE IN ECONOMIC POLICY MANAGEMENT OF MAKERERE UNIVERSITY NOVEMBER 2018 i DEDICATION To my parents, my children and my husband. iv ACKNOWLEDGEMENT I would like to thank my research supervisor Dr. James Muwanga of School of Economics at Makerere University.His office was always open whenever I had a question about my research. He consistently allowed this paper to be my own work and steered me in the right the direction whenever he thought I needed it. I must also express my profound gratitude to my parents and siblings for providing me with unfailing support and continuous encouragement throughout my years of study and through the process of researching. This accomplishment would not have been possible without them. Thank you. v TABLE OF CONTENTS DECLARATION......................................................................................................................................... ii APPROVAL ............................................................................................................................................... iii DEDICATION ................................................................................................................................................. iv ACKNOWLEDGEMENT .......................................................................................................................... v ABSTRACT ................................................................................................................................................... viii CHAPTER ONE ......................................................................................................................................... 1 INTRODUCTION ....................................................................................................................................... 1 1.0 Introduction .................................................................................................................................. 1 1. 1 Problem statement ....................................................................................................................... 3 1.3 Objectives of the study ................................................................................................................. 4 1.4 Research Questions ...................................................................................................................... 4 1.5 Significance of the study ............................................................................................................... 5 1.6 Scope of the Study ....................................................................................................................... 5 CHAPTER TWO .............................................................................................................................................. 7 LITERATURE REVIEW ..................................................................................................................................... 7 2.0 Introduction .................................................................................................................................. 7 2.1 Theoretical literature review ........................................................................................................ 7 2.2 Empirical literature review ............................................................................................................ 9 2.2.1 Remuneration of employees................................................................................................. 9 2.2.2 Work and work environment ..................................................................................................... 10 2.2.3 Job security ................................................................................................................................ 11 2.2.4 Time of work .............................................................................................................................. 12 CHAPTER THREE .......................................................................................................................................... 14 METHODS AND PROCEDURES ..................................................................................................................... 14 3.1 Introduction ............................................................................................................................... 14 3.2 Research design .......................................................................................................................... 14 3.3 Study Population ......................................................................................................................... 14 3.4 Types of the data ........................................................................................................................ 15 CHAPTER FOUR ........................................................................................................................................... 16 EMPIRICAL RESULTS AND DISCUSSION ....................................................................................................... 16 4.0 Introduction ................................................................................................................................ 16 vi 4.2 Findings and Data Analysis .......................................................................................................... 16 4.2.1 correlation analysis ............................................................................................................. 16 4.2.2 Productivity and employee remuneration .......................................................................... 18 CHAPTER FIVE ............................................................................................................................................. 20 SUMMARY OF FINDINGS, CONCLUSIONS AND RECOMMENDATIONS ....................................................... 20 5.1 Introduction ............................................................................................................................... 20 5.2 Conclusions and policy implications .......................................................................................... 20 5.3 Suggestions for further research ............................................................................................... 21 REFERENCES ................................................................................................................................................ 22 Lee and Brand (2005): Advances in Social and Organizational Factors. ..................................................... 23 vii ABSTRACT The study was aimed at finding out the effects of working conditions on labor productivity in Kakira Sugar Works Limited, Jinja district. It was guided by the following objectives; to examine the relationship between working hours and productivity at the factory and to examine the relationship between salaries and productivity of labor at Kakira Sugar Works Limited. A quantitative research design was used. Data was obtained from a secondary source and used. Correlation and graphical analysis was used. The findings of the study indicated that the working conditions which included pay and labor hours; significantly affected the productivity of labor (sugar made). The main policy implication of these results is that good working conditions increase employee loyalty, level of commitment, efficiency & effectiveness and hence productivity, and also develops a sense of ownership among employees which ultimately increases organizational effectiveness as well as reduces costs emerging as a result of dissatisfied employees. viii CHAPTER ONE INTRODUCTION 1.0 Introduction The basic principle behind the drive towards better working conditions is that relaxed people are more industrious. People are relaxed when they feel comfortable, which is a state of physical ease and relaxation.Notably, it is reliant on not only physical perceptions but also the emotional state. To be able to create an effective personal environment, it’s important to account for both these elements together with the constraints of cost and technology(Sehgal, 2012). It is the quality of the employee’s working conditions that mostly affect the level of employee’s motivation and subsequent performance. How well they engage with the organization, especially with their immediate working conditions, influences to a great extent their error rate, level of innovation and collaboration with other employees, absenteeism and, ultimately, how long they stay in the job. Today’s work environment has changed greatly and continues to evolve by the day. A combination of issues has shaped an environment where the business needs its employees more than the employees need the business. It is the quality of the employee’s work setting that largely influences the level of employee’s enthusiasm and subsequent performance. Given the competitive business environment, organizations can no longer afford to waste the potential of their workforce (Huges, 2007). Therefore, most enterprises are making all possible efforts to make work conditions more comfortable,
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