Relationship between productivity and profitability of small and medium enterprises (smes): a case study of Medical Centre, Kampala
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Date
2011-09
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Publisher
Kampala International University, College of Economics and Management
Abstract
The study looked at the relationship between productivity and profitability of small and medium
enterprises taking into consideration Case Medical Clinic as a case study. The study was guided
by the following objectives:-
To identify how quality of products influences profitability on SMEs.
To identify how quantity of products influences profitability on SMEs.
To identify how market and sales effo1i of products influences profitability on SMEs.
To identify how technology used in products influences profitability on SMEs.
Empirical data was collected from Case Medical Clinic manager, staff, and students through
questionnaire guides for primary data and secondary data being the library, internet based on the
theory of He1izberg (two factor theories of motivation and hygiene factors) and analyzed using
quantitative approach.
Stmctured questiomrnires were used to collect data from the respondents. Self-administered
questionnaires were ideal. The questionnaires comprised of both closed-ended and open-ended
questions. The researcher used simple random sampling, stratification and purposive methods,
where 56 respondents were randomly picked from various depmiments.
The key findings of the study suggest that: productivity and profitability is significantly
influenced by a number of factors such as good c01mnunication between all strake holders;
management, staff and clients, good working conditions, involvement in decision making
process on matters affecting the organization by all stake holders, staff motivation by rewarding
and appreciation, improved equipment affected productivity and profitability at Case Medical
Centre.
The study therefore recommends that Managers should always find ways and means of
improving productivity at all levels of mm1agement to enhance organizational productivity.
Description
Thesis submitted in partial fulfilment of the requirements in the School of Business and Management for the Award of Bachelor of Business Administration (Finance & Accounting Option) a Kampala International University
Keywords
Relationship, Productivity, Profitability, Kampala