Analysis of Labor Productivity and Efficiency in the Cooperative Sector: A Case Study of the Industrial Cooperative Sector in the Province of Yazd

Due to the importance of cooperative sector in Iran's economy and reaching to %25 share in national economy in 2015, as a target set by the General Policies of the Islamic Republic of Iran, makes it necessary to analyze the current situation of productivity particularly labor productivity in the Iran's Cooperative Sector. Since Industrial Cooperatives are the most important cooperatives and because of data availability from one hand, and importance of Yazd in terms of cooperation from a historical point of view on the other hand, preset study is devoted to analyze productivity and efficiency of the industrial cooperatives in this province. The main objective of this paper is recognition of the leading and most advantageous industrial cooperatives of the province by considering productivity indices and identifying important factors may have affect on their productivity. Methodology of the research composed of descriptive, survey and field study by using relevant library documents and applying a detailed questionnaire which is provided specifically for this study. The results of the study indicate that among different cooperatives under consideration just a small number of them have a Labor Intensity Index greater than 1 and enjoying a relatively higher level of productivity. This probably indicates a relative advantage of investment in activities such as Metal Product, textile and food industries. Result of the study show that there is a large difference in the industrial cooperatives productivity, even in similar field of activity. Also there exists a lower level of average productivity in provincial cooperatives in comparison to overall productivity in country level. Based on the findings, the main reason for low level of productivity in industrial cooperatives of the province is the low level of awareness and doesn’t pay attention to the factor share affect on rising productivity. For improvement of productivity in cooperatives, continuous education and training, paying attention to welfare issues, using advanced models of workers participation, establishing R&D units in cooperatives are suggested.