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Impacts of Poor Productivity on Profitability-A Comparative Analysis on Selected Public and Private Sector Manufacturing Enterprises in Bangladesh

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The study examines the impacts of poor productivity in 05 public sector and 05 private sector manufacturing enterprises in Bangladesh. The study reveals that direct material productivity, labor productivity per worker, capital productivity and total productivity had been 4 to 5 times higher in the private sector samples than those in the public sector samples during the study period. Whereas, labor productivity per Taka of direct wages was almost same in both the public sector and private sector samples. On the other hand, material total productivity had been higher in the public sector samples as compared to the private sector samples. Total productivity had been more or less satisfactory in all the private sector samples and in three out of five public sector samples. But, the same in the remaining two public sector samples had been poor and hence unsatisfactory. Labor productivity, capital productivity and total productivity had direct positive correlation with the profitability, measured in terms of profit margin, return on capital employed, return on investment and earning per hundred Taka share. Therefore, in order to improve existing profitability of the samples; it is essential to increase their productivity. To this end, the factors responsible for poor productivity as identified by the respondents must be removed without any further delay. For the purpose, the suggestions put forward by the respondents need to be implemented by the concerned authority.


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