Synopsis: Communication For Productivity Letters written to some 7500 Workers / Managers / Union Leaders, following a period of strike / Go slow / Murders (1979 - 1987), at Mumbai factory of Larsen & Toubro Ltd. This direct / open / honest communication led to a remarkable atmosphere of trust between Workers and Management, which, in turn, increased productivity at 3% per year (ave).

23 Aug 1984

To:

Dear Friends

NOT BY HOPE ALONE

     (nor by crackers'.)

So finally  the bonus  (and ex-gratia)  has been settled!   At the  highest,  a workman  will  get  as  much  as  Rs.4,500/-, Rs.360 more than last-year.

So, one question is over.

But   months  after   the  bonus   amount   is  received   and "digested",  there is  one more  question  which  will  remain unanswered.

To know what is that question,  look at the following chart:

In 1981-82,  Company's profitability  was 10.6%  (for  1981-82 maximum bonus + ex-gratia paid was Rs.4,140).

In 1982-83, Company's profitability  came down to 8.2%.  Even then, we settled for a higher bonus/ex-gratia of Rs.4,500 !

Logically we should have settled for less!

So,  I  turn  to  hope  -  hope  that  the  recent   trend  of increasing  productivity all  over. Powai, will  continue  far enough and high enough  into the future to once again take  us to the top of Mount Kailash !  (see chart)

As  the weeks  and the  months pass,  the question  that will keep coming-up again and again is,

"Can we  live by hope  alone ? Will we once again reach  the top of  Mount Kailash  just because  we have  a few optimists among us  ?  can we  reach a  high level  of productivity  and profitability by just WISHING ?"

If the answer  is that none of  this will happen just  because of hope, what else must be done ?

H.C. PAREKH