Hi Friends,
                                              Even as I launch this today ( my 80th Birthday ), I realize that there is yet so much to say and do.
                                                  There is just no time to look back, no time to wonder,"Will anyone read these pages?"
                                       With regards,
                                       Hemen Parekh
                                       27 June 2013

Sunday, 27 January 1980

PRODUCTIVITY

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).

27 Jan 1980

To:
General Managers/
Joint General Managers/
Deputy General Managers.

Sub : PRODUCTIVITY

Enclosed please  find a copy of  an article appearing  in the Fortune Magazine of December 3, 1979.

I  have  underlined  a  few  statements  which  would  be  of specific interest.

According   to   the   author,  a   negative   influence   on productivity  during  66-73  period, saw  the  surge  in  the number   of   young  people   entering   the   labour  force. Disproportionately, large number of young  people lowered the average skill and experience  in the work force, reducing the productivity.

I  enclose herewith  data/graph  of  the  age-profile of  our Powai based  work force,   in  L&T, does  our own  experience reinforce the American experience?

I draw your  attention to the factor  listed on page  80 i.e. 'deterioration  in attitudes  towards work'.   This has  some parallel with our own situation.

Page 86 speaks of

1.  Company-wide productivity improvement programmes
2.  Incremental shop floor improvement
3.  Spread of 'best practices'
4.  Buying the  best equipment  (not just more  of  the same kind)
5.  Diffusion of knowledge
6.  Innovating managerial know-how  and improving industrial practices.

I hope you will find  the enclosed article and data useful in formulating   future   policies/strategies   while   planning various  resources  including the  human  resource.   I  also welcome  your suggestions  on achieving  appropriate employee mix  (skill as well  as age  wise) from  internal as  well as external source to make the best productivity gains.


H.C. PAREKH

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