Productivity Measurement: A Study of Selected Pharmaceutical Companies in India

Main Article Content

Abhisha Dadhaniya

Abstract

Purpose: This study aims to measure, analyze, and compare the productivity performance of selected pharmaceutical companies in India.


Approach/Methodology/Design: This study is based on secondary data. In this study, seven pharmaceutical companies are selected as a sample based on paid-up capital of the year 2019-20. The seven companies are selected for their higher paid-up capital, and the study period is seven years from 2013-14 to 2019-20. In this study ratio analysis is used as an accounting tool in which four productivity ratios are employed. The one-way ANOVA technique of parametric test is used as a statistical tool to identify the difference among sample means.


Findings: The major findings of the study indicate that in all the selected companies the performance of material productivity, labor productivity and overhead productivity show fluctuating trend. The overall productivity performance of all the companies is very close to each other during the study period of seven years. The result of the statistical tests revealed that in all productivity ratios drawn null hypotheses are not accepted. This means there is a significant difference in different productivity ratios among selected pharmaceutical companies during the study period.


Practical Implications: In this study, productivity analysis is carried out which is helpful to measure the productivity performance. The results would help investors to make the right choice of investment in selected pharmaceutical companies. Given the present situation of COVID-19, productivity analysis will be helpful to identify the existing production capacity in concern with pharmaceutical products and services.


Originality/value: The significant contribution of this study is to measure the various productivity performances of pharmaceutical companies. Further, the average productivity performance is compared among the seven selected pharmaceutical companies, which shows that average productivity performance is different among the selected companies.

Article Details

How to Cite
Dadhaniya, A. (2021). Productivity Measurement: A Study of Selected Pharmaceutical Companies in India. Journal of Advanced Research in Economics and Administrative Sciences, 2(3), 101-112. https://doi.org/10.47631/jareas.v2i3.300
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