Author : Zeynep Ton

Year : 2008-09
Source : HBS(Working Paper)
Paper

Presented by
Vijaiyesh r
Venkatraman v
 Problem identification
 Objective
 Data collection
 Statistical tech
 Interpretation
 THE EFFECT OF LABOUR ON
PROFITABILITY
 (the role of quality )
 Examine the effect of labour on
profitability through impact on quality
▪ Conformance quality
 (in total quality management) the way in which the product is
made to fit the desired specifications
▪ Service quality
 expectations of customer towards the service or product
 Sampling : large sampling
 Size : 268 stores
 Time period : 3 years
 Respondent : workers in large retail stores
 Method : questionnaire model
▪ Service environment
▪ Service interaction
 Correlation coefficient

 Chi-square
▪ 1% , 5% , 10% LOS

 Regression R2

 Robustness test for measuring performance.

 Labour and quality

 Quality and profitability

 Labour and profitability

 Increase in labour  division of work  less
error per individual  performance increase.

 Labour increase  sales person increase 

increase in sales more profitability.

 Increase in labour  quality service increase.