Transformation . Innovation . Partnership 1

HOW TO ANALYSE THE DATANO INDICATOR DEFINITION HIGH RATIO LOW RATIO

1 PRODUCTIVITY

Reflects the amount of wealth created by company relative to the number of employee it has .

•Management Efficiency •Work Attitudes

• Demand for the product• Price effect (pricing

strategy)

• High BIGS•Wastage of time and

materials• Inadequate salary/wage

rates

2 LABOUR COST COMPETITIVENESS

2.1 Added Value per Labour Cost

Added Value per Labour Cost measures how much added value is produces by each unit of labour cost. Added value generated per ringgit of labour cost that we spent.

The higher the ratio, the more competitive is the industry in terms of labour cost.

A low ratio implies low level of productivity or high labour cost unmatched by productivity growth.

2.2 Labour Cost per Employee

Labour Cost per Employee measures the average wage rate per employee

High ratio means high returns to individual workers.

vice-versa

2.3 Unit Labour Cost

Proportion of labour cost to total output.Unit Labour Cost measures the labour cost incurred in producing one ringgit worth of output per employee

A high ratio indicates high labour cost which could be due to labour scarcity and high labour turnover. It could also be due to a lack of skilled labour or poor labour mix.

vice-versa

Transformation . Innovation . Partnership 2

Overall analysis indicates that this company is NOT COMPETITIVE

Productivity Linkages- Competitiveness

Ratio Growth 12-13 What is Tells

Added Value per Labour Cost -26.42 %

This ratio indicates how competitive.The enterprise in terms of LC

Labour Cost Per Employee 91.5 % This ratio measures the average

remuneration per employee

Unit Labour Cost 60.61 %This ratio indicates the proportion of labour cost to total output.

Added Value per Employee 40.90 %

Reflects the amount of wealth created by the company, relative to the number of employees

Transformation . Innovation . Partnership 3

Overall analysis indicates that this company is NOT COMPETITIVE

Productivity Linkages- Competitiveness

Ratio Growth 12-13 What is Tells

Added Value per Labour Cost 6.5 %

This ratio indicates how competitive.The enterprise in terms of LC

Labour Cost Per Employee 8.3 % This ratio measures the average

remuneration per employee

Unit Labour Cost -2.4 %This ratio indicates the proportion of labour cost to total output.

Added Value per Employee 2.9 %

Reflects the amount of wealth created by the company, relative to the number of employees

Transformation . Innovation . Partnership 4

Overall analysis indicates that this company is COMPETITIVE

Productivity Linkages- Competitiveness

Ratio Growth 12-13 What is Tells

Added Value per Labour Cost 7.22 %

This ratio indicates how competitive.The enterprise in terms of LC

Labour Cost Per Employee 1.86 % This ratio measures the average

remuneration per employee

Unit Labour Cost -9.09 %This ratio indicates the proportion of labour cost to total output.

Added Value per Employee 9.71 %

Reflects the amount of wealth created by the company, relative to the number of employees

Transformation . Innovation . Partnership 5