In January 2022, the manager of a construction firm known as FENEST TC decided to measure the performance of the staff of the firm. This initiative was meant to measure the success of series of improvement programmes organized for the staff of FENEST TC in 2020. The manager, Mr. Ernest Felli, expected at least 45% increase in the overall productivity of the company following the improvement programme. The company’s financial record showed an increase of 35% in the company’s revenue from what was recorded in 2020. There were 5 full time members of staff in 2020. However, in 2021, one worker (construction supervisor) was employed to supervise the existing staff members. The revenue generated in the first 11 months of 2021 was GH¢550,000. Just as in the previous year, during the same 11 month-period the workers were paid a monthly wage of GH¢12,000 in total and a monthly insurance cover of 20 cedis per worker. The cost of tools hired per week in 2020 was GH¢300.00 while it cost GH¢380.00 in 2021. The company’s overhead cost in both 2020 and 2021 is estimated at 1.6 times the total labor cost. Assuming there are 4 weeks in each month, 

a. Calculate labour productivity per worker per month for FENEST TC in 2020? 

b. Calculate labour productivity per worker per month for FENEST TC in 2021? 

c. What is the overall productivity of the company in 2020 and 2021?) 

d. Based on the percentage change in the overall productivity, will you conclude that the improvement is successful?

Answer rating: 100% (QA)

All the unit areine H Ghanaian cedis Revenue Number of staff monthly wage in months T... View the full answer