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CHAPTER V
FACTORS MOTIVATING LABOUR EFFICIENCY IN
CASHEW INDUSTRIES
5.1 Introduction
5.2 Factor Analysis
5.3 Rotated Factor Matrix for Factors Motivating Labour Efficiency in
Cashew Industries
5.4 Relationship Between Selection Factors and Role of Cashew Industries
5.5 Summary.
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5.1 INTRODUCTION
In reality many factors are responsible for motivating efficiency of
the cashew labourers. Few selected factors are identified and analysed. This
chapter is devoted to the analysis of the selected motivational factors that
have been extracted from sample respondents. These motivational factors,
when fulfilled shall be helpful to them for the overall development of the
respondents and the business firms. The respondents are of the opinion that
the following variables like wages, perks and working conditions like
hygiene environment and relationship, if addressed, will improve quality in
production and may help the industry thrive well.
5.2 FACTORS ANALYSIS
As some of the statements have common components are correlated
with one another because of the common factors. To find out the inter-
relationship, factor analysis technique is to be adopted. Factor analysis is a
tool applicable when there is a systematic interdependence among a set of
observed or manifest variable and the person is interested in finding out
something more fundamental or latest which creates this communality. It
seeks to resolve a large set of measured variables, in terms of relatively few
categories, known as factors. A factor is an underlying dimension that
accounts for several observed variables. This technique allows the persons to
group variables into factors (based on correlation among variables) and the
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factors so derived may be treated as new variables (often termed as latest
variables) and their value, derived by summing the values of the original
variables which have been grouped into factors.
The meaning and name of such new variable is subjectively
determined by the researcher. Since the factors happen to be linear
combinations of data, the co-ordination of each observation of variable is
measured to obtain the factor loadings. Such factor loadings represent the
correlation between the variables and factors. When the sum of squared
values of factor loadings relating to a factor is taken, such sum is referred to
as eigen value or latent root. Eigen value indicates the relative importance
of each factor in accounting for the particular set of variables being
analysed. For realistic results, the technique of rotation is adopted, because
such rotation reveals different structures in the data.
Mathematically, factor analysis is somewhat similar to multiple
regression analysis. Each variable is expressed as a linear combination of
under-lying factors. The amount of variance, a variable share with all the
other variables included in the analysis is referred to as commonalty. The
co-variation among the variables is described in terms of a small number of
common factors plus a unique factor for each variable. These factors are not
observed. If the variables are standardised, the factor model may be
represented as:
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Xi = Aij F1+AI2F2+AI3F3+..............AIM FM +Vi Ui
Where,
Xi = ith
Standard variable
Aij = Standardised multiple regression co-efficient of,
variable i on common factor j
F = Common factor
Vi = Standardised regression co-efficient of variable i on
unique factor
Ui = The Unique factor for variable i
M = Number of common factor
The unique factors are uncorrelated with each other and the common
factors themselves can be expressed as linear combinations of the observed
variables.
Fi = Wi1 X1+Wi2X2+Wi3X3= ..............WiK XK
Fi = Estimate of ith factor score co-efficient
Wi = Weight of factors score co-efficient
K = Number of variables
It is possible to select a weight or factor score co-efficient, so that the
first factor explains the largest portion of the total variance. Then, a second
set of weight can be selected so that the second factor accounts for most of
the residual variance, subject to being uncorrelated with the first factor. The
same principle could be applied for selecting additional weights for the
additional factors. Thus, the factors can be estimated so that their factor
scores, unlike the value of the original value, are not correlated.
Furthermore, the first factor accounts for the highest variance in the date, the
second highest and so on.
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5.3 ROTATED FACTOR MATRIX FOR FACTORS MOTIVATING
LABOURER EFFICIENCY IN CASHEW INDUSTRY
The rotated factor matrix for factors motivating labourer efficiency in
cashew industry is given in Table 5.1.
TABLE 5.1
Rotated Factor Matrix for Factors Motivating Labour Efficiency
Source: Computed Data
S.
No Factors
Components 1 2 3 4 5
1 Wages with leave .853 .232 -.032 -.076 .266
2 Prompt wages .831 .172 -.040 .063 -.095
3 Occasional advance .813 .197 .346 -.034 .165
4 Restructure of wages system .799 .396 .304 .093 .008
5 Equal P.F contribution .796 .434 .202 .086 .110
6 Accident benefits .771 .232 .212 -.155 .238
7 Incentives .734 .354 .292 -.070 -.173
8 Vehicle arrangement to the work spot .726 .251 .402 .118 .153
9 Rest room .726 .611 .024 .106 .037
10 Seating arrangement .673 .502 .310 .081 .191
11 Good ventilation .672 .230 .228 .458 .219
12 First aid .641 .560 .007 .076 .362
13 Pleasing atmosphere at work place .226 .881 .175 .135 .013
14 Good behaviour with employees .426 .810 .011 .074 -.004
15 Grievance redressal .404 .804 .167 .073 -.056
16 Concern for labourers .268 .804 .097 .042 .368
17 Treatment in a pleasant way .204 .746 .398 .012 .179
18 Open mindedness and good manners .365 .676 .385 .081 .047
19 Recognition of Labourer on output .315 .614 .332 .032 .098
20 Clean and tidy environment .305 .314 .849 .096 .009
21 Free medical benefits .058 .018 .782 -.149 .132
22 Purified water .131 .387 .688 .235 .076
23 Air free work place .475 .455 .545 -.005 .268
24 Quality raw materials -.086 .275 .088 .796 .193
25 Quality processing -.207 .076 .124 .705 .182
26 Qualified labourers .271 -.083 -.258 .637 .014
27 Training and evaluation .322 .505 .220 .609 .063
28 Adequate training .200 .060 .166 .001 .850
29 Training with wages .076 .302 .586 .039 .606
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Factor 1
Wage Perks and Working Conditions
Wage perks and working conditions are the most important pre requisites that
improve the labourer efficiency in cashew industry. In fact, almost all labourers
engaged in Shelling, Peeling and Grading are not satisfied with the prevailing wage
rate. They want to enhance the wage rate with a view to meet their growing family
expenditure. Most of the cashew labourers state that increasing wage rate will
improve the labourer efficiency. Indeed, payment of prompt wages with occasional
advance during celebration of national, religious and social festivals and periodical
revision of wages would motivate labourers efficiency. Moreover, equal contribution
of employees to provident fund and incentive not only attract the labourer, but also
boost up their efficiency in the cashew industry. The provision of accident benefits,
vehicle arrangement to the working unit, rest room, good ventilation, seating
arrangement anf First Aid shall develop interest and enhance efficiency in Shelling,
Peeling and Grading processes.
The variables relating to wage, perks and working conditions are presented in
Table 5.1
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TABLE 5.2
Selected Variables Relating to Wage Perks and Working Conditions
Sl.No Variable Factor Loadings Communality
1 Wages with leave 0.853 0.791
2 Prompt wages 0.831 0.820
3 Occasional advance 0.813 0.762
4 Restructure of wages system 0.799 0.844
5 Equal P.F contribution 0.796 0.794
6 Accident benefits 0.771 0.832
7 Incentives 0.734 0.808
8 Vehicle arrangement to the
work spot
0.726 0.751
9 Rest room 0.726 0.800
10 Seating arrangement 0.673 0.796
11 Good ventilation 0.672 0.921
12 First aid 0.641 0.756
Source: Computed data
Among the variables motivating labourer efficiency namely, wage, perks and
working conditions ‘wages with leave’, ‘prompt wages’ ‘occasional advance
restructure of wage system’, ‘equal provident fund contribution’, ‘accident benefits’,
‘incentives’, vehicle arrangement to the work spot’, ‘rest room’, ‘seating
arrangement’, ‘good ventilation’ and ‘first aid’ constitute Factor 1 with higher factor
loadings. These twelve variables with higher factor loadings on factor 1 is
characteristic of ‘wage perks and working conditions’. All the twelve attributes have a
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high communality indicating that the attributes with in Factor 1 have high association
among them.
With regard to the factor, wage, perks and working conditions, the variables like
wage with leaves and prompt wages were the first and second highest factors with the
loading of 0.853 and 0.831 respectively, and a high communality of 0.791 and 0.820
respectively. The variable ‘first aid’ was the least factor with the loading of 0.638 and
has a low communality of 0.756.
The efficiency of labourer at the initial stage is very small due to leaves without
wage. The wage with leave at the beginning and prompt wages at the right time helps
the labourers to meet their day to day expenditure and improve their efficiency.
Occasional advance, during domestic ceremonies and religious festivals motivate
labourer efficiency. Restructureing of wage system help the labourers face the
growing expenditure and increase their saving. The provision of equal provident fund
contribution encourage the labourers and motivate their efficiency. They also expect
accident benefit at time of injury while engaged in Shelling and Peeling and even out
of the cashew industry. Incentives is expected in order to encourage and motivate
their efficiency. The arrangement of free transport to the work spot not only saves the
time and energy of labourers but also motivate labourer efficiency. They request for
rest room for their privacy, to change dress and take food and to take rest that will
refresh their mind and motivate labourer efficiency. Prompt adequate and comfortable
seating arrangement should be made to do their work without any fatigue. Good
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ventilation and keeping the promises clean and tidy enable the labourers, to sit at ease
and process cashew for long time without feeling uneasiness. Moreover, providing
first aid facilities, help to get treatment at the time of headache and injury can
motivate labourer efficiency.
Factor 2
Human Relationship
Human Relationship is the life blood of an organisation as no business activity is
possible without such relationship. Amicable and cordial relationship can ensure
success of any industry. Human relationship involves pleasing atmosphere at work
place, good behaviour with employees, grievance redressal mechanism, concern for
labourers, open mindedness and good manners and recognition of labourers as output.
These relationship may help develop a sense of oneness among the employers and
employees. Moreover, job satisfaction, sincerity and loyalty to the industry can
motivate labourer efficiency.
The variables relating to human relationship are presented in Table 5.3.
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TABLE 5.3
Selected Variables Relating to Human Relationship
Sl.
No Variable
Factor
Loadings Communality
1 Pleasing atmosphere at work place. 0.881 0.846
2 Good behaviour with employees 0.810 0.790
3 Grievance redressal 0.804 0.834
4 Concern for labourers 0.804 0.815
5 Treatment in a pleasant way 0.746 0.810
6 Open mindedness and good
manners.
0.676 0.762
Source: Computed data
Among the variables motivating labourer efficiency in cashew industry, human
relationship, pleasing atmosphere at work, good behaviour with employees, grievance
redressal, concern for labourers, treatment in a pleasant way, open mindedness, good
manners and recognition of labourers as output are closely linked. These seven
variables on factor 2 are characterised as human relationship. All the seven attributes
have a high community indicating that the attributes with in Factor 2 have very high
association among themselves.
The analysis of the factors involving human relationship indicate that the variable
‘pleasing atmosphere at work’ has the first highest factor with the loading of 0.881
and a high communality of 0.846 and recognition of labourers as output is the least
factor with the loading of 0.614 and a low communality of 0.695.
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Therefore, the employers in cashew industry should maintain a congenial and
pleasant atmosphere and redress the grievance of labourers as and when required.
They should treat the labourers in a pleasant way and have much concern for them.
Besides they should recognize labourers as output in such a way to motivate their
efficiency. Thus, human relationship is an important factor motivating labourer
efficiency in cashew industry.
Factor 3
Hygienic Environment
Hygienic Environment is an important factor motivating labourer efficiency in
cashew industry. In fact, clean and tidy environment not only frees the working place
of pollution that cause diseases but also may create a conductive atmosphere for the
Shelling, Peeling and Grading activities. Such an environment makes the labourers
healthy and happy and inturn motivate their work efficiency. On the other hand, non
availability of clean drinking water and polluted working place would affect their
efficiency. Hence the healthy and hygienic environment should be created and
maintained to avoid numerous unhealthy problems confronting working place. The
policy of maintaining hygienic environment for health is a life motivating factor for
labourer efficiency.
The variables relating to the hygienic Environment are presented in Table 5.4.
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TABLE 5.4
Selected Variables Relating to Hygienic Environment
Sl.No Variable Factor
Loadings
Communality
1 Clean and tidy
environment
0.949 0.849
2 Free medical benefits 0.782 0.810
3 Purified water 0.688 0.786
4 Air free working place 0.545 0.690
Source : Computed data
Among the variables motivating labourer efficiency, namely Hygienic
environment, ‘clean and tidy environment’, ‘free medical benefit’, ‘purified drinking
water’ and ‘pollution free working place’, constitute factor 3 with higher factor
loadings. These four variables on factor 3 are characterised as hygienic environment.
All the four attributes have a high communality indicating that the attributes within
factor 3 have very high association among them.
Regarding the factor hygienic environment, the variable clean and tidy
environment is the first highest factor with the loading of 0.849 and a high
communality of 0.849 and pollution free working place has the least factor with the
loading of 0.545 and a low communality of 0.690.
The cashew labourers request the cashew factory owners to keep the premise clean
and tidy for motivating their efficiency for conducting Shelling, Peeling and Grading
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activites. In fact, while keeping clean and tidy environment, they develop the right
aptitude towards work. They expect the entrepreneurs who attained success in this
regard to relate their own experience to others on how to set up and maintain their
working environment. Entrepreneurs think that clean and tidy environment is possible
only with proper managerial and technical skills. Any module should impart
management and technical know-how required by the entrepreneurs to operate their
cashew industry efficiently. They want safety and purified drinking water to maintain
their health and avoid water born diseases. It not only reduces the burden of carrying
drinking water from their home but also motivate efficiency. The provision of medical
benefits redeem the labourers from medical expenditure and motivate them to work
more and more.
Factor 4
Quality in Production
The labourer efficiency can be motivated though the supply of quality raw
material. So the employers need to know about the quality of raw nuts supplied to the
labourers for processing. In fact, other than factors such as wages, perks and working
conditions, human relationship and hygienic environment, the factor ‘quality in
production’ motivates the labourer efficiency to agreat extent. The factor 4 includes
quality raw materials, technology used in processing qualified and trained labourers
and training and evaluation. These four factors are associated with labour efficiency.
The variables relating to quality in production are presented in Table 5.5
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TABLE 5.5
Selected Variables Relating to Quality in Materials
Sl.
No Variable
Factor
Loadings Communality
1 Quality raw material 0.796 0.851
2 Quality processing 0.705 0.825
3 Qualified labourers 0.637 0.749
4 Training and evaluation 0.609 0.716
Source: Computed data
Among the variables motivating labourers efficiency in the factor ‘quality in
production, the variables such as ‘quality raw materials’, ‘quality processing’,,
‘qualified labourers’ and ‘training and evaluation’ constitutes Factor 4 with higher
factor loadings. These four variables on Factor 4 are characterised as motivating
labourer efficiency.
Quality raw materials come first with the highest factor loading of 0.796, and a
communality of 0.851. Under factor quality in production and ‘training and
evaluation’ helps them in motivating labourer efficiency as the last and least factor
with the loading of 0.609 and a high communality of 0.716.
Thus the study shows that quality raw materials, quality processing, qualified
labourers and trained personality can motivate the efficiency in cashew industry.
Therefore, the Entrepreneur in the cashew industries should concentrate on the quality
of raw materials application of new technology or gadgets and qualified and
efficiently trained labourers to motivate labourer efficiency.
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Factor 5
Training
Training imparted to a cashew industry labourer is considered essential in the
cashew industry. In fact, both pre training and on the job training would motivate
labourer efficiency in all organisations. This is true in the case of industry where the
provision of training with payment motivates labourer efficiency.
The variables relating to training are presented in Table 5.6
TABLE 5.6
Selected Variables Relating to Training
Sl.No Variable Factor
Loadings
Communality
1 Adequate Training 0.850 0.886
2 Training with wages 0.606 0.740
Source: Computed data
Among the variables motivating the factor training, the variables such as ‘Pre
Training’ and ‘training with payment’ constituted factor 5 with higher factor loadings.
These two variables on Factor 5 are characterised as training. Both the attributes have
a high communality indicating that the attributes within Factor 5 have very high
association.
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As far as the factor ‘training’ is concerned, pre-training is the highest factor with
the factor loading of 0.850 and a communality of 0.886. The factor loading and the
communality to the variable ‘training with wages’ is 0.606 and 0.740 respectively.
Therefore, it is very essential on the part of employers that they should provide
pre-training to the labourers at their initial stage as they do not have experience and
training in Shelling Peeling and Grading. In fact, pre- training motivates labourer
efficiency and increases their productivity. Moreover, training with wage encourages
the labourers to deliver. Thus the role of Factor 5 is regarded as one of the important
factors to motivate the efficiency of labourer in cashew industry.
Motivating Factors of the Respondents
The factor analysis of the twenty eight attributes relating to the motivators of
labourer efficiency in cashew industry has been identified with five factors and the
results are presented in Table 5.7
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TABLE 5.7
Selected Variables Relating to Motivational Factors
Sl.No Factor
Number
of
Variabls
Reliabilit
y co-
efficient
Eigen
Value
Percenta
ge of
Variance
Cumulati
ve
Percentag
e of
Variance
1 Wages, Perks
and Working
Conditions
12 0.791 14.85
2
51.214 51.214
2 Human
Relationship
7 0.613 2.806 9.674 60.888
3 Hygienic
Environment
4 0.728 2.399 8.271 69.159
4 Quality in
Production
4 0.644 1.582 5.454 74.163
5 Training 2 0.715 1.318 4.546 79.167
Source: Computed data
*Kaiser –Meyer-Olikin measure of Sampling Adequacy = 0.680
* Bartlett’s Test of Sphericity: Chi-square = 32874.36
Degree of freedom = 406
Significance = 0.000
The Eigen value for the first factor namely wage perk and working condition is
14.854, which indicates that the factor contains much higher information than the
other factors. The percentage of variance is 51.214. The provision of wage, perks and
working condition motivate labourer efficiency at maximum level in cashew
processing activities in the study area.
The second and third factors namely human relationship and hygienic environment
account for 9.674 per cent and 8.271 per cent variance with Eigen values of 2.806 and
2.399 respectively. The fourth and fifth factors namely quality of product and training
account for 5.454 per cent and 4.546 per cent variance with Eigen values of 1.582 and
1.318 respectively.
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5.4 RELATIONSHIP BETWEEN SELECTION FACTORS AND ROLE OF
CASHEW INDUSTRIES
After finding the factors involved in decision making by the respondents, the next
step is to find the relationship between the factors and the decision making by the
respondents in the study area. The ‘Multiple Regression Analysis’, has been carried
out to identify the relationship between the factors and the overall decision making by
the respondents, which takes the following form:
Log y = Log b( ) + b1Log x1 + b2 Log x2 +……. + byLog xy + eu
Where
y = Overall score on by the respondents
x1 = Wages, Perks and Working Conditions
x2 = Human Relationship
x3 = Hygienic Environment
x4 = Quality of Product
x5 = Training
b0, b1, b2, ….by are the parameters of independent variable to be estimated
B0 = Regression constant
E = Error term
In order to term the significance of the estimated parameters b0, b1, b2, ….b5, t-test
of the following formula has been used.
t = b1 / seb1
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where
Seb1 = standard error of b1
The regression coefficient in the independent variables has been estimated and the
results are shown in Table 5.8.
TABLE 5.8
The Impact of Decision Making Factors by the Respondents
Sl.
No Factors
Notation
Elasticity
of Co-
efficient
Standard
Error
‘t’
Value
1 Overall scores on
decision making Y - - -
2 Constant B0
2.526*
0.425
4.821
3
Wages, Perks and
Working
Conditions
X1
0.714**
0.376
3.914
4 Human
Relationship
X2
0.826**
0.038
21.776
5 Hygienic
Environment
X3
-0.119NS
0.067
-1.787
6 Quality in
Production
X4
0.148**
0.026
5.725
7 Training X5
0.121*
0.044
2.761
Source : Computed data
R2 = 0.765
F- Test = 167.633
NS = Not Significant
* Significant at 5 per cent level
** Significant at 1 per cent level
It is evident from Table 5.8, that among the various factors analysed, the factors
like wage, perks and working conditions, hygiene environment, training and quality of
product have proved to be significant and factors like human relationship is not much
significant.
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The R2 has been 0.765 and the value of the ‘f’ test was 167.633.
It could be inferred from Table 5.8 that the wage, perks and working condition is
significantly influenced by the conditions in the cashew industry. One per cent
increase in the wage made available to the respondents, keeping all other factors
constant, would increase the overall efficiency of labourer, the elasticity co-efficient
for the variable wage, perks and working conditions for customer is 0.714, which
indicates that this factor plays an important role in motivating labourer efficiency.
The variable, ‘quantity in production’ is also one of the important inputs
contributing to the factors motivating the efficiency of respondents. Its co-efficient is
0.148 and significant at one per cent level, indicating that one per cent increase in the
quality of raw materials would increase the efficiency of respondents by per cent from
the mean level.
The cashew industry respondents are also influenced by the factor ‘hygienic
enviornment’. The co-efficient of ‘hygenic environment’ 0.826 is significant at one
per cent level.
It could also be inferred from Table 5.8 that ‘training’ significantly influences to
motivate cashew industry respondents. One per cent increase in the level of training
made available to the respondents, keeping all other factors constant, would increase
the overall motivation of the respondents by 0.121 per cent from its mean level.
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5.5 SUMMARY
Five factors in the case of all the three categories of respondents from Shelling,
Peeling and Grading that influences the decision making behaviour and motivation
have been identified as:
· Wages, Perks and Working Conditions
· Human Relationship
· Hygienic Environment
· Quality of Products
· Training
The factors analysis has been applied and each factor has more than one
variable. Each variable is expressed as a linear combination of the underlying factors.
The amount of variance a variable shares with all the other variables included in the
analysis is referred to as communality and among all the attributes that are formed
under each factor there is high association.
In the case of the sample respondents, the t-test is used to be significant in all the
factors where as factors ‘hygienic environment’ and ‘quality respondents’ prove to be
significant at one per cent level. Similarly the factors, ‘training’, ‘wages’, ‘perks’ and
‘working conditons’ have proved to be significant at five per cent level and the factor
human relationship is not at all significant.