Relationship Between Productivity and Profitability of Small and Medium Enterprises (Smes) (A Case Study of Case Medical Centre, Kampala)

ABSTRACT ~he study looked at the relationship between productivity and profitability of small and medium :nterprises taking into consideration Case Medical Clinic as a case study. The study was guided ,y 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 effort 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 :iuestionnaire guides for primary data and secondary data being the library, internet based on the theory of Hertzberg (two factor theory of motivation and hygiene factors) and analyzed using quantitative approach. Structured questionnaires 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 departments. The key findings of the study suggest that: productivity and profitability is significantly influenced by a number of factors such as good communication 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 management to enhance organizational productivity.