Effect of Unskilled Labor on Firm’s Productivity: A Case on Naz Textile, Karachi, Pakistan

Abstract

The subject matter of this case study is to show what variable causes low productivity and limiting its full potential mainly focusing on the textile firm of Pakistan namely Naz Textile Limited (NTL). The approach used in this study was of Practice-oriented case study approach from which we followed a descriptive case study research method. The productivity is dependent on two main factors namely machinery and labors, in which we traced with the help of evidence that the problem of low productivity was caused by the recent hiring of unskilled labor, the reason or hiring unskilled labor was due to scarcity of skilled labor and low budget of the firm available to hire if any highly skilled labor is to be found. Following the process, we found out that the only solution left for the firm is to convert the unskilled to skilled labor that can only be possible with the help of training. The training can be provided to the unskilled labor through various methods such as On the Job training and Off the Job training methods. The firm must also establish a Training department that can choose the right training methods; this department can be headed by the most experienced labor or any other hired professional trainer for a technical institute which can also monitor the whole production processes. This case study’s main focus was to increase the Practitioner firm Naz Textile’s knowledge to increase their productivity without large expenses to be incurred and achieving success in less time. These methods can be applied to any firm related not only to the textile field but also be used for other manufacturing firms located in different sectors.