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Factors Affecting The Underperformance of Employees : Nadeeka Amarasinghe
Factors Affecting The Underperformance of Employees : Nadeeka Amarasinghe
Factors Affecting The Underperformance of Employees : Nadeeka Amarasinghe
Abstract
BASL Intimate Apparel Mirigama is the largest factory of Brandix Group of Companies
catering to VS Pink. It has a labour force of 1250 employees including a direct labour force
of 659. Production capabilities have been extended to in-house printing and embroidery
sections in addition to cutting and shipping facilities.
Like other apparel manufacturers in the industry, BASL Intimate Apparel Mirigama also
faces much competition and problems in its day to day business operations. One of the
major issues so faced is On-Time-Delivery due to underperformance of the employees.
Therefore, with the objectives of studying factors affecting the underperformance of the
employees of the production department, analysing and identifying such factors, and
providing recommendations, a few variables i.e. machines and methods, skill level,
financial incentives, leadership practices and working conditions were identified as having
a potential impact over the performance of the production employees. Stratified random
sampling method was used to select 64 team members from the 32 production modules,
and research work continued to collate primary data through administrating a structured
questionnaire among selected associates.
Null and alternative hypotheses were tested using correlations, and the data is presented as
graphical pictures, tables, and in narrative form. However, there were a few limitations such
as management influence, sample basis selection, service period, level of understating,
time availability and commitment, time availability for the study etc. which may have had
an impact over the research findings.
Brandix Group
printing and embroidery facilities in the time Delivery, rework rate, achievement
same premises. of Standard Actual Hours (SAH), On
time Reconciliation etc. are not in line
Statement of problem with the expected level due to various
reasons, requiring associates and the
The plant is currently practicing the LEAN
management team to continuously solve
manufacturing concept and its results are
problems using PDCAs (Plan-Do-Check-
measured based upon five pillars namely
Act) and other systematic problem
Safety, Quality, Cost, Delivery and
solving methods. Further if it is carefully
Morale commonly named as SQDCM.
analysed, there is a drop in quality output
Under the pillars Quality and Delivery, it
from the production lines.
is common to see that the trend line of On
Table 1.1 Efficiency drop in the last few months – Source from Production
department
The above table makes it clear that lead to the drop of production efficiency i.e.
production is not achieving the planned the output by the production department.
efficiency, and this may impact on the The following graph shows the lost hours
production output and lead to overtime that were reported from April 14, 2014 to
working with an additional cost to the September 2014.
company. There are various reasons that
Figure 1.2 Lost hours in the last few months – Source: Production Department,
BASL – Intimate Apparel Mirigama
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Many are of the opinion that production persuaded to maintain in-station quality
lines that consist of machine operators rather than costly rework, since the latter
are not performing well, leading to is a de-motivating factor. Instead, they
production drop per day and per month. need to achieve First Time Through (FTT),
Therefore, it is necessary to analyse the i.e. the extent to which the production
factors affecting the underperformance of modules achieve the required quality
employees of the production department level at first. Likewise there are lots of
of BASL- Intimate Apparel Mirigama in standards that should be maintained in
order to find ways to address the problem order to achieve the planned production
and bring up the level of production. targets. Safety, Quality, Cost, Delivery
and Morale are the five objectives that a
Practical relevance of the production module focuses on.
study.
To sustain in the competitive market,
In a garment factory, the production it is required to cater the products at
department is considered to be the the required quality standard, and
‘Heart’. Nearly no entrepreneur hesitates within minimum lead-time with on time
to feed the maximum expecting the delivery. To do all these, the production
maximum in return. Hence lots of benefits department needs to perform at the
such as incentives almost equalling the planned level and at required standards.
basic salary, attendance incentives, team In this endeavour, single minute drop of
bonus, Christmas and April New Year production is monitored and recorded as
allowances, etc. are given to production it is very important. The management is
department employees including eager to look into the issues that drop
machine operators. production because such drop may
convert sea cargo into air cargo in order
The apparel industry has become the
to ensure on time delivery, but at double
most foreign exchange earning business
the cost.
of the country, which can be maintained
if quality products with faster service at In generel, it can be seen employee
lower retail prices are provided. In order performance being affected by many
to make this happen, the heart of a factors. The actual performance level has
factory (production department) makes serious implications for the final production
the biggest effort, though admittedly other capacity of the factory. Though there are
supporting services also play a large role. n number of factors that may directly
It is very common to see team leaders and/or indirectly have an impact on the
updating the production control board underperformance of the production
with their hourly actual achievement department, it is important to study the
against the pre-planned pieces. They function of at least the most important
are also responsible for any drop in variables in order to contribute to the
production. PDCAs need to be alert about enhancement of employee performance.
recurring problems in the lines. For any Towards this end, the following variables
small accident to a team member, they have been identified:
need to investigate the accident in order
to prevent it from recurring. They are
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within the organization, the feedback This compelled to overlook certain areas
might have been less than accurate. pertaining to the study, which might have
affected the final result.
The primary data collection method used
in the research was an open-ended
Conceptual framework
questionnaire. In this exercise, the level
of understanding of individual employees There are many factors affecting the
very likely affected their responses. performance of employees such as
The level of understanding in turn is financial benefits, skills, attitudes,
dependent on their education, family leadership practices, experience,
background, and socio-cultural context, satisfaction and work life balancing etc.
which limits my capacity to construct an However, focus has been narrowed
objective picture out of their responses. down to the following variables that
were identified as the most significant
Regular production operations in the plant
influences on the performance level of
restricted the time team members had to
employees.
spend on answering the questionnaire.
This meant that their logical reasoning a. Methods and machinery
was also somewhat arrested due to
b. Skill level of team members
the lack of time. Therefore, there is a
possibility of this factor to be reflected in c. Financial incentives
the results.
d. Leadership practices
Additionally, this research was carried out
e. Working conditions
within a short span of time (3 months).
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X4 - Leadership practices
X5 - Working conditions
b. Skill level of team members does not The entire cadre consists of 659 team
relate to their performance. members including 32 team leaders who
were promoted from team members to
c.
Financial incentives (production team leaders. These team leaders report
incentives) do not relate to the to supervisors and team members report
performance of the team members. to team leaders. Each team consists of
d. Leadership practices of supervisory 20-21 team members who report to their
associates and management team do respective team leader.
not relate to the performance of team The sample is limited to 64 respondents
members. who are full time actively involved in the
e. Working conditions do not relate to production process. The 32 team leaders
the performance of team members. participate in stitching whenever required
and they fully engage in the achievement
H1 of production targets.
a. Methods and machinery relate to the
The selection of the sample was based
performance of team members.
on stratified random sampling in order
b. Skill level of team members relates to to represent all the team members as
their performance. below.
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Sampling method = No of team members nor disagree, agree and strongly agree
/ No of respondents of was used for this purpose. Further in order
the module to gain an in-depth understanding of the
situation, focus group discussions were
= 19/2
held and scheduled meetings by others
= 9.5 round up to 10 relating to the topic were attended: Nerve
Centre Meeting is the weekly review
Select first respondent
meeting of the plant KPIs. Significant
randomly from 1 to 10
drops in the KPIs are specially discussed
persons and next
and action plans are agreed upon in order
respondent is next to rectify the issues. Delivery meeting is
10th person from the another meeting which is held to review
selected person. the status of the deliveries in relation to
the production.
Example,
Pearson correlation was used to show Hence the following analyses were done
the relationship between the independent in order to understand the backgrounds
variables and the dependant variable, of the respondents.
and narrations were provided to explain
them in detail. Analysis of the respondents
Analysis of age
Introduction to data analysis
BASL Intimate Apparel Mirigama plant
A sample on stratified basis was selected employs 659 sewing associates. In
for the research. Since it was a sample the research, 64 sewing associates
that represented the total group of the were taken based on stratified random
target workforce, it was vital to have an sampling. The sample consists of three
understanding of the sample selected. age categories: 18-30, 31-40 and 41-55.
Age No of respondents %
18-30 42 65.63%
31-40 19 29.69%
41-55 3 4.69%
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Experience No of respondents %
Gender No of respondents %
Female 52 81.25%
Male 12 18.75%
Analysis of educational
qualifications
The following table and pie chart illustrate
the formal educational qualifications of
the respondents.
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64 100%
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Analysis of Variables
Machine
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In the questionnaire, there were five and availability. The feedback has been
questions related to machine capability summarised as follows.
Question N % N % N % N % N %
Machine
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Machine Vs Performance
As per table 4.8, the correlation test states machine. However as it falls within the
there is a positive correlation between category of “0” to “0.5”, it can be viewed
the performance of employees and the as a positive weak relationship.
Methods
Five questions were included in the
questionnaire concerning the Standard
Work Sheet (STW) through which the
sewing method is passed to the team
members. Respondents were asked
to rate their responses with regard
to questions such as whether STWs
are readily available when required,
whether they can be understood, their
completeness, their practicability etc.
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Questions N % N % N % N % N %
Q2 6 9% 22 34% 6 9% 26 41% 4 6%
Methods Vs Performance
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Performance level
There is a positive relationship between performance and methods as per the trend
line drawn in the scatter diagram (Figure 4.10).
Mean of Methods 1
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Questions N % N % N % N % N %
Skill level
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Mean Performance
Performance 0.20215 1
In accordance with the slope and the the production targets are realistic and
correlation results, there is a positive achievable etc.
relationship between the skill level and
performance of the employees. The
correlation result falls between “0” to
“0.5”.
Financial Incentives
This set of questions focussed on the
production incentive scheme existing at
present. The effectiveness of the existing
incentive scheme provides motivation
and questions were designed in order
to get feedback on how the respondents
felt about the relevance of the present
incentive scheme in relation to the
present production style of the plant,
whether changes are required to make
it more effective, their understanding
of the incentive scheme and whether
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Questions N % N % N % N % N %
Q2 5 8% 45 70% 4 6% 6 9% 4 6%
Financial incentives
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Mean Performance
Performance 0.513998 1
The slope of the scatter diagram (Figure make decisions based on practicability
4.14) shows a positive relationship and not just opinions, whether they
between financial incentive and respect others’ ideas irrespective of the
employee performance, and also as per designation, and whether they probe into
the correlation test there is a moderate the ‘why’ of a situation instead of ‘who’
positive relationship between these two. were asked.
Leadership practices
The present business context strongly
illustrates that leadership practices
can make a significant impact on the
performance of employees. Hence
there were 5 questions relating to best
leadership practices included in the
questionnaire. Questions relating to how
respectfully the leadership team treats
team members, how considerate they are
of one’s dignity, whether the management
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Questions N % N % N % N % N %
Q1 1 2% 5 8% 8 13% 44 69% 5 8%
Q4 1 2% 6 9% 12 19% 40 63% 5 8%
1% 9% 15% 66% 9%
Table 4.15 Summary of leadership practices
Leadership practices
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Mean of Leadership 1
practices
Performance 0.02884 1
Working conditions
The garment sector is being continuously
demanded to improve workplace
conditions by buyers as well as local and
international governing bodies. Reflecting
this development, questions in relation
to productive working hours, welfare
facilities, illumination and ventilation, safe
atmosphere, and level of organisation
were asked.
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Questions N % N % N % N % N %
Q1 0 0% 14 22% 2 3% 43 67% 5 8%
Q3 0 0% 4 6% 5 8% 47 73% 8 13%
Q4 0 0% 2 3% 7 11% 49 77% 6 9%
Q5 0 0% 0 0% 0 0% 52 81% 12 19%
0% 8% 7% 73% 13%
Working conditions
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Mean Performance
Mean of working 1
conditions
Performance -0.0612 1
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Analysis of hypotheses
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skill level, financial incentives, leadership between these two has a positive weak
practices and working conditions. In correlation of 0.33. ‘Sewing methods
order to test the impact of these variables changing’ possesses a mean value of 2.8.
on the dependent variable, i.e. employee It means that it has been a common thing
performance, a sample of 64 team to change the method of sewing after the
members was selected on the stratified feeding. STW is the sheet which provides
random sampling method to represent instructions for sewing. However, it has
all team members of the shop floor. All a mean value of 2.9, which means that
respondents hold the designation of it needs to improve a lot to come to
‘Sewing associates’. The performance the standard level. Completeness of
level of the employees was identified the STW is exactly at the mid-point (3)
as the module performance as team where the respondents neither agree nor
members are directly involved in the disagree. STW availability, its simplicity
production process. The overtime work and whether it can be understood just
effect reflected in production data was passes point 3.
removed when assigning ratings to team Skill sewing operators are significant in
members. a shop floor. Therefore, the management
Machine and methods was the first needs to take necessary steps to
variable that was studied. Though there improve and upgrade their sewing skills.
was a positive relationship between The five questions asked in this regard,
machines and performance, it is not very i.e skill grading measurement, decision
important since correlations show it as making based on skill and cycle time,
0.02. However, machine pre-setting and use of skill matrix, training plan and
changes to machines after line feeding management concern and commitment
had a mean value of 3 and 2.8 which received an overall response of almost
says that pre-setting is not done properly ‘Agree’ level. This, however, suggests
and changes are done after feeding the that the management needs to take
lines. As per the responses, other areas actions in order to fill the skill gap since
should also be improved as results the correlation test has given a rate of
indicate a considerable gap to achieve. only 0.20, indicating a weak positive
For instance, machines were at –3.4, relationship.
while machine availability and machine
On-Time-Delivery of garments finished
layout availability were at –3.1 and-3.6
in line with required quality standards is
respectively.
the target challenge for the management
Methods also play a significant role. team. Therefore, various types of
Presently the method of sewing is incentives have been introduced in order
communicated to team members with to provide required motivation to team
the support of STW and team members members. Out of these incentives, the
are helped by the technical team, production incentive seemed to have
supervisors and team leaders. Despite the largest and most direct impact. A
this being the case, there are gaps of correlation test figure of 0.51says that
understanding and application of such the production incentive is more vital
finalised methods. The relationship and important than other variables tested
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from http://www.employment-
studies.co.uk/system/files/
resources/files/mp4.pdf
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