Labor incentive and performance of the industrial firm: A case study of Bangladeshi RMG industry
Bangladesh is a labor rich country and an ideal place for the Readymade Garment (RMG) industry that uses labor intensive technology for its production. Labor is an important factor for industrial production and it is truer in garment industry of Bangladesh. Human resource is taken to be an important factor to increase productivity and to improve quality as well as to reduce the costs of the production that is necessary to survive in the competition. There are several issues related to increases the labor productivities and among those, labor incentives is one of the major factor point. This study surveyed almost 36 medium and large scale RMG factories in Bangladesh with a focus on the improvement of productivity of RMG industries. This study finds that, the labor incentive programs increase firm performance and result in reduced delivery delay. Also, this study finds the level of education of the top level managements have an impact on the incentive programs of RMG industries.