Journal of Commerce and Accounting Research

Open Access Open Access  Restricted Access Subscription Access
Open Access Open Access Open Access  Restricted Access Restricted Access Subscription Access

Overhead Productivity Analysis of Metals Sector Companies Included in Nifty 50


Affiliations
1 Assistant Professor, Department of Commerce and Management, University of Kota, Kota, Rajasthan, India
2 Research Scholar, Department of Commerce and Management, University of Kota, Kota, Rajasthan, India
     

   Subscribe/Renew Journal


In the world of competitive environment, productivity is an essential booster for the progress of an organisation. The ratio of output to input is termed as productivity. Higher productivity ratio indicates more optimum use of the resources. This research paper depicts the analysis of overhead productivity of metals sector companies from 2010-11 to 2017-18 i.e. for eight years. The research analysed the intra-company as well as inter-company overhead productivity which has been calculated by applying the chi-square and kruskal wallis one way analysis of variance test. It is found that the average overhead productivity ratio is the best of Coal India Ltd. with 38.3249 which is followed by Hindalco Ltd., Vedanta Ltd. and Tata Steel Ltd. It is suggested that if the company utilises its resources optimally then it can save the amount which has been calculated as possible savings. Possible savings is the excess of actual over standard overhead input. It is the total possible savings in overhead input for a period of eight years, ` 680 crore of Coal India Ltd., ` 10002 crore of Vedanta Ltd., ` 17118 crore of Hindalco Ltd. and ` 26463 crore of Tata Steel Ltd. It has also been suggested that overhead productivity can be improved by reducing the expenses in overhead cost which can only be possible by having a check on the overhead expenses incurred by the companies. The metal sector companies can make a committee which closely monitors the expenses incurred on overheads and find out the ways through which savings can be achieved.

Keywords

Productivity, Overhead Productivity Ratio, Chi-square, Kruskal Wallis One-way Analysis of Variance, Possible Savings
Subscription Login to verify subscription
User
Notifications
Font Size


  • Agarwal, H., & Goel, A. (2017-18). Production management. Meerut (UP), India: Anand Publications, India.

  • Chalermthanakom, A., & Ueta, K. (2011). Impact of environmental regulation on productivity: Case studies of three industries in Japan. The Kyoto Economic Review, 80(2), 167-187. Retrieved from http://www.jstor.org/stable/43213406

  • Gupta, S. P. (2001). Statistical methods. New Delhi, India: Sultan Chand and Sons, India.

  • Hema, R. V. (2017). A study on the productivity and profitability of Indian bank. Review of Research, 7(3), 1-9. Retrieved from www.lbp.world

  • Hooda, V. S. (2015). Productivity of state co-operative banks in India: Region-wise analysis. Indian Journal of Accounting, 47(2), 76-88.

  • Islam, A. F. M. M. (1990). Measurement and analysis of labour productivity: The case of cotton textile industry in Bangladesh. Indian Journal of Industrial Relations, 26(1), 89-99. Retrieved from http://www.jstor.org/stable/27767132

  • Kothari, C. R., & Garg, G. (2015). Research methodology: Methods and techniques (3rd ed.). New Delhi, India: New Age International (P.) Ltd., India.

  • Maheshwari, M. (1998). Productivity accounting in engineering industries in Rajasthan (Doctoral thesis). University of Rajasthan, Jaipur, Rajasthan, India.

  • Peslak, A. R. (2004). A firm level study of information technology productivity in Europe using financial and market based measures. Australasian Journal of Information Systems, 11(2), 27-36. Retrieved from http://dx.doi.org/10.3127/ajis.v11i2.113

  • Reddy, M. S., & Naidu, V. B. (2013). Partial productivity trends of selected Indian cement companies. Indian Journal of Research, 2(7), 39-41.

  • Taparia, P. (2020). Productivity accounting in selected Nifty 50 companies (Doctoral thesis). Submitted to the University of Kota, Rajasthan, India.


Abstract Views: 127

PDF Views: 0




  • Overhead Productivity Analysis of Metals Sector Companies Included in Nifty 50

Abstract Views: 127  |  PDF Views: 0

Authors

Meenu Maheshwari
Assistant Professor, Department of Commerce and Management, University of Kota, Kota, Rajasthan, India
Priya Taparia
Research Scholar, Department of Commerce and Management, University of Kota, Kota, Rajasthan, India

Abstract


In the world of competitive environment, productivity is an essential booster for the progress of an organisation. The ratio of output to input is termed as productivity. Higher productivity ratio indicates more optimum use of the resources. This research paper depicts the analysis of overhead productivity of metals sector companies from 2010-11 to 2017-18 i.e. for eight years. The research analysed the intra-company as well as inter-company overhead productivity which has been calculated by applying the chi-square and kruskal wallis one way analysis of variance test. It is found that the average overhead productivity ratio is the best of Coal India Ltd. with 38.3249 which is followed by Hindalco Ltd., Vedanta Ltd. and Tata Steel Ltd. It is suggested that if the company utilises its resources optimally then it can save the amount which has been calculated as possible savings. Possible savings is the excess of actual over standard overhead input. It is the total possible savings in overhead input for a period of eight years, ` 680 crore of Coal India Ltd., ` 10002 crore of Vedanta Ltd., ` 17118 crore of Hindalco Ltd. and ` 26463 crore of Tata Steel Ltd. It has also been suggested that overhead productivity can be improved by reducing the expenses in overhead cost which can only be possible by having a check on the overhead expenses incurred by the companies. The metal sector companies can make a committee which closely monitors the expenses incurred on overheads and find out the ways through which savings can be achieved.

Keywords


Productivity, Overhead Productivity Ratio, Chi-square, Kruskal Wallis One-way Analysis of Variance, Possible Savings

References