Method of Calculating a Salary Bonus Based on Performance, Quality of Labour, Difficulty of Work, Discipline and Attendance in a Clothing Company

Abstract

Globally, textile and clothing companies are seeking to increase the export rate by minimising the cost of production. The same goal still applies for Tunisian companies. Nonetheless, production cost is the most but not the only significant factor that increases the competitiveness of a product. Others are important in beating the challenge of global competition. Among these factors are deadlines, economic and social stability, proximity, competence of the workforce and quality. In this study, the SAW method was used to develop a method for the calculation of a salary bonus according to the following criteria: the quality index, performance, difficulty of work, discipline, and attendance. This method improved the skills and wages of the workforce, decreased the absenteeism rate and increased the productivity of the company. The results showed in dependence on the case studied that the quality index varied between -0.053 and 1, performance between 40.5 and 81, the ranking vector between 0.545 and 0.911, and the bonus rate between 0% and 15%. The study reduced the absenteeism rate from 13.25% to 8.3% for direct labour. The quality of production was improved by reducing the defect rate by 8.54% to 4.6%. The efficiency of the chain was also improved by 51% to 67.3%.