Labor intensity as a strategic KPI for evaluating the efficiency of coal mines

Abstract

In the face of the growing demands of the modern economy, 21st-century technology, and the challenges of Industry 4.0, the classical management of mining enterprises is not sufficient, and it is transforming into a process approach to the organization. The usage of the process management concept creates a situation for improving the organization at many levels, both at the strategy and operational levels. This provides an opportunity for a comprehensive view of the organization, but it is necessary to define indicators that determine the flexibility of operations, the achievement of profitability, and effective operational management. These indicators, called key performance indicators, focus on crucial aspects of the organization's activity that are fundamental to its current and future success. The contribution goal of the presented paper is to propose a new index for assessing the efficiency of coal mines, called the labor intensity index. The proposal is based on a previous three-area strategic analysis, including production indicators of coal mining companies, the state of coal mining in Poland, and economic factors affecting the current situation of the Polish coal mining industry. The analysis covered the period from 1988 to 2020. The use of new KPIs to assess performance in process terms is necessary to develop better new strategies for mining companies. It is particularly important in light of the industry's restructuring plans to restructure the mining industry and the far-reaching vision of decarbonizing the Polish energy sector.