Evaluation of labour productivity in Russian and Italian enterprises

Svetlana B. Dolzhenko and Dmitry S. Malyshev
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Svetlana B. Dolzhenko: Ural State University of Economics
Dmitry S. Malyshev: Ural State University of Economics

Journal of New Economy, 2019, vol. 20, issue 1, 95-111

Abstract: A substantial body of economic research proves the need and the potential for a significant increase in the labour productivity in Russian enterprises, but does not examine the reasons behind its low values. In this context, examination of foreign experience to determine the factors behind low labour productivity and identify the reserves to increase it appears to be relevant. The paper compares the indicators of labour productivity considering the cases of a Russian and an Italian enterprise with similar production. Methodologically the paper relies on the scientific management in the part of factors affecting the efficiency of using personnel. The paper attempts to integrate a Russian approach to measuring labour productivity based on indicators of output and labour-intensity, and foreign approaches that emphasise the efficiency of exploiting all company resources. The principal methods of the research include comparative analysis of labour conditions and indicators of labour productivity, case study, interview with key company decision-makers. The objects under consideration are chosen on the basis of their similarity in terms of goods produced and situation in the markets of these goods. Comparative analysis of the number of employees and labour productivity revealed that the Russian enterprise lags behind the Italian one in labour productivity; at this, it clearly has reserves to improve its position. Among the main reasons behind lower productivity, the authors list poor technological and managerial competences, production automation level, insufficient use of possibilities to outsource non-core activities, and in some cases, specifics of environmental and climatic conditions. As a result of the study, the authors formulate recommendations for the Russian enterprise, which, given the unification of the approaches to labour productivity management in different countries, will allow utilizing the reserves of increasing it more efficiently.

Keywords: labour productivity; methods for evaluation of labour productivity; scientific management; comparative analysis. (search for similar items in EconPapers)
JEL-codes: D24 J01 (search for similar items in EconPapers)
Date: 2019
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Persistent link: https://EconPapers.repec.org/RePEc:url:izvest:v:20:y:2019:i:1:p:95-111

DOI: 10.29141/2073-1019-2019-20-1-7

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