Work Force Efficiency in the Safety Match Clusters

By : E. Bhaskaran

Page No: 437-456

Abstract
India, one of the largest manufacturers of matchboxes, produces about 4 crore boxes per day. There is a need to study the technical efficiency of the workforce of the Safety Match Clusters (SMC) in Tamil Nadu. The objective is to study the physical and financial performance, and technical efficiency of four SMCs in Tamil Nadu. The methodology consists of collection of primary data for various periods from 2016-17 to 2020-21 and secondary data from SMC officials. The input variables are Units, Employment and Investment, whereas the output variables are Production and Turnover. Data was analysed for ascertaining the technical efficiency of 4 SMCs before and after the implementation of the Cluster Development Approach (CDA), using the output-oriented Banker, Charnes, and Cooper (BCC) model of DEA, output-orientated Malmquist DEA, and stochastic frontier analysis. The study concluded that three clusters are highly efficient, but one needs improvement in workforce and investment to increase turnover. The Malmquist Index Summary of Firm Means indicates an efficiency change of 22% and pure efficiency change of 26%. As per the stochastic frontier equation To=-10.51-0.90En+4.34 In, with a unit increase in employment, the turnover decreases by 0.9 units which is insignificant, and for every unit increase in investment on machinery, the turnover increases by 4.4 units which is significant. The workforce needs further improvement for one firm, whereas the other three are highly efficient.

Author :
E. Bhaskaran : Joint Director (Engineering), Department of Industries and Commerce, Government of Tamil Nadu, Guindy, Chennai, Tamil Nadu, India.
 

DOI: https://doi.org/10.32381/PROD.2023.63.04.7