Capital and labour productivity in the sisal industry: a case study in the Tanzania sisal authority.
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Date
1996
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Publisher
University of Dar es Salaam
Abstract
This study investigates the contribution of utilization of labour and capital equipment to the cost of fibre production in the sisal industry in Tanzania. It is concerned with investigating some of the factors contributing to the poor performance of labour, the tools of production and the subsequent underutilization of the resources and rising unit cost of production. The scope of the study is between 1978 and 1992. Both primary and secondary data were used in the study. The primary data was obtained through discussions and personal interviews. The secondary data were obtained from the Tanzania Sisal Authority (TSA) departments of statistics and Accounts in Tanga. The study employs both qualitative and quantitative methods of data analysis. Tables, graphs and regression and correlation analysis are supplements to the analysis. Presented findings in chapter four reveals that the labour productivity had declined from 3.23 tons/man/year in 1978 to 1.06 tons/man/year in 1992. The estimated industry average was 4.39 tons/man year. The deteriorating productivity was mainly due to underutilization of labour and production machinery and equipment. There was an estimated average utilization of resources of 73.6% in 1978 and 24.1 % in 1992, in TSA. Regression results showed a strong negative correlation (r = -0.627) between the unit cost of production and labour productivity. Underutilization of resources contributed to the rising unit cost of production. It was recommended in chapter five that proper allocation and efficient utilisation of labour, and machinery and equipment coupled with other policy measures can help to revive the sisal industry.
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Keywords
Capital productivity, Sisal industry, Labour productivity, Tanzania
Citation
Mvungi, M. O. (1996). Capital and labour productivity in the sisal industry: a case study in the Tanzania sisal authority. Master dissertation, University of Dar es Salaam. Available at (http://41.86.178.3/internetserver3.1.2/search.aspx?formtype=advanced)