Global Journal of Commerce & Management Perspective
Open Access

Abstract

Factors Influencing Labour Productivity - An Applied Study of Non-oil Manufacturing Sectors in the Kingdom of Saudi Arabia

Amal Mohammed Sheikh Damanhouri & Divya Rana

In light of the current economic reforms, non-oil industrial sector is the key indicator for the growth of national economy in Saudi Arabia, which aims to reduce dependence on oil and diversify the economic base. The productivity of this sector has emerged as a one of the main requirements for national transformation and achieves the Kingdom in 2030 vision to liberalize the national economy dependence on oil. This paper outlines an empirical study that determine the factors affecting the productivity of labour in the non-oil factories in Jeddah (Kingdom of Saudi Arabia), through the identification of physical, and job performance, affecting the labour productivity. A descriptive analytical method applied using a survey method and (352) samples collected from staff and workers within the production area in the factories. The data analyzed through SPSS using appropriate statistical techniques, both descriptive and analytical. Cronbach's alpha for physical, and job performance factors were high and the questionnaire instrument proved to be reliable, valid, and appropriate for this study.).The results of the study showed that the application physical factors were significant and came in first place, followed by job performance factors, which were applied moderately. It has also become apparent through the study that there is a positive impact between labour Productivity and physical, and job performance. However, these factors can influence labour Productivity in varying proportions, and the level of impact can be arranged in the following order: job performance factors, physical factors. The result concluded that some factors included within the stated three variables have negative impact while others have positive impact on the productivity of workers. Lastly, the present study suggested model and recommendations that could aid in improving the labour Productivity in the non-oil manufacturing sector in KSA