Semiconductors and distribute to target respondents to collect the

Semiconductors manufacturing sector has
contributed large portion of income to Malaysia. It creates a lot of employment
opportunities to our citizen. According to MIDA (Malaysia Investment
Development Authority), Semiconductor manufacturing has contributing
significantly to the country’s exports (32.8 percent) and employment (27.2
percent) in 2013.

In this modern era, the labor productivity has been become a
key focus for foreign investor especially multinational corporations to invest
their business in other countries. Labor productivity can consider as a metric
to measure the efficiency of workforce in a country, it acts as an indicator
for quality’s workforce towards the output of the products.

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Labor productivity defined as the ratio of
the output of goods and services to the labor hours devoted to the production
of that output. Productivity can be defined in few perspectives. In
manufacturing field, the productivity always measures as labor productivity
which means that the units of work placed or produced per man-hours. In short
it can be representing in the equation below:

Labor Productivity= Output/ Labor hours

In general, productivity demonstrate the
how well for an individual entity uses its resources to produce output from
inputs.(Rao, Sreenivasan, & Nv, 2015)

In this research study, the five factors
of affecting the labor productivity in semiconductors industry have been
identified which included motivation, management system, supervision, Technical
Skills, and working environment. These 5 factors believe to have a relationship
towards the labor productivity or performance of the workers. The 5 factors of
variable will be tabulated in survey questionnaire and distribute to target
respondents to collect the data for analysis.

Motivation has been defined as the
individual’s intensity, direction and persistence of effort towards the job
scope.(Robbins & Judge, 2013)
In term of productivity, high motivated person believe to have a higher
interest towards the works compared to low motivated person. He or she with
high motivated behavior will react proactive and more responsible to their job
responsibility. Or in other words, high motivated person might perform the job
faster compare to low motivated person. Therefore, in this research study we
will examine the relationship of motivation behavior towards the motivation.

The second factor which affecting the labor productivity is
management system which can defined into four functions. There are planning,
organizing, leading, and controlling. Planning function is to well establish
the company’s goal and define the overall strategy in order to achieve it.
Organizing however is to determine the tasks which to be done by certain group
of people, expert or individual. A well organizing plan will make sure that the
project running smooth with minimum error and problem happen. Therefore, assign
the correct person to do the correct right job is extremely important. Leading
means that some leadership skills which able to generate a well healthy
communication and relationship between superior and subordinate. Resolve the
problems and conflicts among members. The last function for management is the
controlling which mean that it able to monitor the organization’s performance
by correct individual rewards, payment systems and even the punishment in order
to make sure the company perform and achieving set goal. (Robbins & Judge, 2013)

The third factor which affecting the labor productivity is
supervision whereby it can be defined as the ability of superiors to influence
the behavior of subordinates
to take a particular course of action. (Omisore, 2014)
Supervision is considering one of the important factor in Semiconductors
manufacturing because most of the firms are running 24 hours with 7days
continuously. Especially for night shift worker, lack of supervision might end
up the workers not focusing on work and commit on misconduct behaviors such as
chit-chatting, playing smartphone or sleeping. This is due to most of the
executive or manager level person are normal shift working hours, most often
the night shift operation was not well supervised and showing the low output or
low productivity.

The fourth factor which affecting the
labor productivity is technical skills. Training and developing of workers is
important in semiconductors field because effective manpower planning and
development plays a crucial role in support of a flexible and high dynamic
change workplace, especially for semiconductors manufacturing which running in
a fast pace trend compared to other industries. (Karim, Hassan, Yunus, & Hashim, 2013)
The experienced worker with well-trained
technical skills definitely will better compared to those new comers which have
lack of skills and experience. Therefore, technical skills contribute a major
factor to drive the productivity improvement.


The last factor which affecting the labor
productivity is working environment. There is a research study conducted by
Finland showing that significant correlation between working environment and
labor productivity. The criteria such as the 5S housekeeping, conducive
workplace and the company facility play a very important role for labor
productivity.(Peshave, 2004)
Obviously great working environment with minimum disturbance will create a high
productivity workplace. However, the poor working environment with a lot noise,
messy production layout and workstation arrangement will create a negative
impact on labor productivity. Thus, in this project, working environment will
be accessed as one of the factor influencing the labor productivity.

there were a lot of research study on how to improve on the output of
semiconductor manufacturing by implementing automation and minimize human
intervention. However, this still can’t achieve the operational expected
performance. This is because they overlooked on the labor productivity.
Nowadays, more and more company start to realize that labor productivity plays
an important role to strive for excellent manufacturing and operational
efficiency. Labor productivity is the rate of output per worker in a business
whereby it counts by per hour rate. Meaning that if a company manage to improve
their labor productivity, they able to run a company by less worker but
increasing on output quantity. As such, company able to gain more profit margin
and generate more revenue. This will increase the quality of the worker as well
as manufacturing efficiency. Meanwhile high productivity labor will also get
the higher rewards recognition. Indirectly this also helping the worker to
generate higher income and improve living standard.

top of that, improving on labor productivity will also drive for better gross
domestic product (GDP) of an area. It highly depends on the status of labor
productivity of all business. A healthy labor sector will help an economy
sustain growth and encourages consumer spending as well as financial lending.
This is because in the economy view of perspective, higher labor productivity
drive for better income for all worker. Therefore, they have more spending
power and disposable income. This will indirectly drive for improving of gross
domestic product (GDP).




1.2 Problem Statement

Recently labor productivity has been
become a focus for industrial company as a one of key performance measuring
criteria. It was noticed that the majority of the industrial firms have encountered
inconsistent number of production output versus labor hours which is defined as
labor productivity. Therefore, the company has the difficulty to optimize the
number of headcount in order to sustain the production output. Various factor
can be affected the labor efficiency and performance which is yet to be
identified. Normally, the labor cost contribute around 30% to 50% of the
overall operation cost.(Mahamid, 2013)  In proper managed on the labor resources will
causing company loss in term of business revenue on headcount budget

Moreover, globalization nowadays has
rapidly evolved and especially for those Multinational Corporation (MNC) who
wish to invest in developing country. Labor productivity has act as key
indicator to determine the labor efficiency and performance on a certain
country. Low labor cost might not be the right priority for investor but the
labor productivity will take into account for measurement. Therefore, identify
the factors which affecting the low labor productivity is important to
guarantee the global investment to our country and economic growth.

1.3 Research Questions

From the problems
statement, 5 research questions have been established towards the factors that
affecting the labor productivity in the industrial company. The scope has been
narrow down to Semiconductor sector which is 24/7 production running industry.

The 5 research
questions stated as per below:

1)    What
is the relationship between motivation and labor productivity in Semiconductor

2)    What
is the relationship between management System and labor productivity in Semiconductor

3)    What
is the relationship between supervision and labor productivity in Semiconductor

4)    What
is the relationship between technical skills and labor productivity in Semiconductor

5)    What
is the relationship between working environment and labor productivity
in Semiconductor industry?

1.4 Research objectives

The objective of this research is to study
the labor productivity in the semiconductors manufacturing field, several of factors
that affecting the labor productivity will be identified and tabulated into
survey questionnaire and distributed to target population to get the feedback.
From the data collected, analysis to be conducted through the data statistical
tool.  Meanwhile, at the end of the
finding, the recommendation on how to improve on labor productivity and
minimize the factors impacted on labor productivity will be provided.

The aim is supported by the objective
stated below.

1)    To
determine the relationship between motivation and labor productivity in Semiconductor

2)    To
determine the relationship between management System and labor
productivity in Semiconductor industry.

3)    To
determine the relationship between supervision and labor productivity in
Semiconductor industry.

4)    To
determine the relationship between technical skills and labor
productivity in Semiconductor industry.

5)    To
determine the relationship between work environment and labor
productivity in Semiconductor industry.


Scope of study

In this research, the scope
will be focusing on the factors which influencing the labor productivity in a semiconductor
company. Various type of journal paper and articles which related to this topic
will be collected and digested as literature review. Survey questionnaire hence
will be prepared based on the fact that researchers have conducted the study
and potential constructs will be then posted in Likert Scale survey
questionnaire to let respondents to select the personal own opinion. Then the
data will be collected and compile into a datasheet with the aid of statistical
tools to analysis the results. Target respondents will be the workers who work
in semiconductor industry, and questionnaire will be randomly distributed with
disregard with their demographic profile, race, gender, age, and position. The
key survey objectives will be surrounding on the research questions which have been
pre-defined in the hypotheses.   

In this research study, there
will be one dependent variable which is labor productivity, then follow by the
five research questions factors which are motivation, management, supervision,
technical skills and work environment, and all of these five factors will act
as independent variables. Statistical tools will be used to determine the relationship
between dependent variable and independent variables. Thus, with the fact of
data and come up with a conclusion that whether or not all these variables have
a direct or indirect relationship with labor productivity.