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Transformation. Innovation. Partnership 1 HOW TO ANALYSE THE DATA NOINDICATORDEFINITIONHIGH RATIOLOW RATIO 1PRODUCTIVITYReflects the amount of wealth created.

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Presentation on theme: "Transformation. Innovation. Partnership 1 HOW TO ANALYSE THE DATA NOINDICATORDEFINITIONHIGH RATIOLOW RATIO 1PRODUCTIVITYReflects the amount of wealth created."— Presentation transcript:

1 Transformation. Innovation. Partnership 1 HOW TO ANALYSE THE DATA NOINDICATORDEFINITIONHIGH RATIOLOW RATIO 1PRODUCTIVITYReflects the amount of wealth created by company relative to the number of employee it has. Management Efficiency Work Attitudes Demand for the product Price effect (pricing strategy) High BIGS Wastage of time and materials Inadequate salary/wage rates 2LABOUR COST COMPETITIVENESS 2.1Added Value per Labour Cost Added Value per Labour Cost measures how much added value is produces by each unit of labour cost. Added value generated per ringgit of labour cost that we spent. The higher the ratio, the more competitive is the industry in terms of labour cost. A low ratio implies low level of productivity or high labour cost unmatched by productivity growth. 2.2Labour Cost per Employee Labour Cost per Employee measures the average wage rate per employee High ratio means high returns to individual workers. vice-versa 2.3Unit Labour Cost Proportion of labour cost to total output. Unit Labour Cost measures the labour cost incurred in producing one ringgit worth of output per employee A high ratio indicates high labour cost which could be due to labour scarcity and high labour turnover. It could also be due to a lack of skilled labour or poor labour mix. vice-versa

2 Transformation. Innovation. Partnership 2 Overall analysis indicates that this company is NOT COMPETITIVE Productivity Linkages - Competitiveness RatioGrowth 12-13What is Tells Added Value per Labour Cost -26.42 % This ratio indicates how competitive. The enterprise in terms of LC Labour Cost Per Employee 91.5 % This ratio measures the average remuneration per employee Unit Labour Cost60.61 % This ratio indicates the proportion of labour cost to total output. Added Value per Employee 40.90 % Reflects the amount of wealth created by the company, relative to the number of employees

3 Transformation. Innovation. Partnership 3 Overall analysis indicates that this company is NOT COMPETITIVE Productivity Linkages - Competitiveness RatioGrowth 12-13What is Tells Added Value per Labour Cost 6.5 % This ratio indicates how competitive. The enterprise in terms of LC Labour Cost Per Employee 8.3 % This ratio measures the average remuneration per employee Unit Labour Cost-2.4 % This ratio indicates the proportion of labour cost to total output. Added Value per Employee 2.9 % Reflects the amount of wealth created by the company, relative to the number of employees

4 Transformation. Innovation. Partnership 4 Overall analysis indicates that this company is COMPETITIVE Productivity Linkages - Competitiveness RatioGrowth 12-13What is Tells Added Value per Labour Cost 7.22 % This ratio indicates how competitive. The enterprise in terms of LC Labour Cost Per Employee 1.86 % This ratio measures the average remuneration per employee Unit Labour Cost-9.09 % This ratio indicates the proportion of labour cost to total output. Added Value per Employee 9.71 % Reflects the amount of wealth created by the company, relative to the number of employees

5 Transformation. Innovation. Partnership 5


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