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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.