Productivity, Technical Equipment And Sales. Empirical Evidence From The Romanian Companies

The relationship between turnover and organizational performance represented the field of interest for various authors in literature, some of the studies identifying even a strong association between the organizational performance and the management of human resources itself. Turnover thus represents an indicator of results which has a fundamental role in characterizing the efficiency of the activity carried out by a company. The final results are conditioned by the volume of resources, which are however, limited, an efficient strategy of management being necessary for the correct accomplishment of the previous established objectives and capitalization of its real potential. Findings regarding the size of a business or a company and its variation in time are necessary in attracting and securing the resources which are indispensable for achieving the objectives and goals proposed. To fully understand a company's activity, any analysis of an indicator must include a description of its dynamics. Thus, the analysis of the turnover in time can be achieved using conventional statistical models. In concrete terms, it is part of the economic and financial results indicators, helping to diagnose and to evaluate the company, estimating efficient management practices. The present paper aims at illustrating the relevance of a factorial analysis model for a sample of enterprises selected, the results highlighting the connection between the sales and labor productivity, but also between sales and the degree of technical equipment. The study revealed the following aspects: a positive and direct connection between labor productivity and sales, so we can state that higher levels of productivity produce higher sales, but also a negative connection between the degree of technical equipment and the level of sales, relation which is very important since we want to know how well a business is employing its assets to generate sales.