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Evaluation of labour productivity in Russian and Italian enterprises

Author

Listed:
  • Svetlana B. Dolzhenko

    (Ural State University of Economics)

  • Dmitry S. Malyshev

    (Ural State University of Economics)

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.

Suggested Citation

  • Svetlana B. Dolzhenko & Dmitry S. Malyshev, 2019. "Evaluation of labour productivity in Russian and Italian enterprises," Journal of New Economy, Ural State University of Economics, vol. 20(1), pages 95-111, March.
    • Handle: 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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    References listed on IDEAS

    as
    1. Bhaumik, Sumon Kumar & Estrin, Saul, 2007. "How transition paths differ: Enterprise performance in Russia and China," Journal of Development Economics, Elsevier, vol. 82(2), pages 374-392, March.
    2. Giulio Cainelli & Massimiliano Mazzanti & Roberto Zoboli, 2011. "Environmentally oriented innovative strategies and firm performance in services. Micro-evidence from Italy," International Review of Applied Economics, Taylor & Francis Journals, vol. 25(1), pages 61-85.
    3. Leandro Medina & Mr. Friedrich Schneider, 2018. "Shadow Economies Around the World: What Did We Learn Over the Last 20 Years?," IMF Working Papers 2018/017, International Monetary Fund.
    4. Zhao, Jingfeng & Tang, Jianmin, 2018. "Industrial structure change and economic growth: A China-Russia comparison," China Economic Review, Elsevier, vol. 47(C), pages 219-233.
    5. John T. Addison & Claus Schnabel (ed.), 2003. "International Handbook of Trade Unions," Books, Edward Elgar Publishing, number 2705.
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    More about this item

    Keywords

    labour productivity; methods for evaluation of labour productivity; scientific management; comparative analysis.;
    All these keywords.

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • J01 - Labor and Demographic Economics - - General - - - Labor Economics: General

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