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).

22 Nov 1984

To:

Dear Colleague

CONCEPT OF THE CORPORATION

In the  enclosed extract  from the  "MIND OF  THE STRATEGIST" Kenichi Ohmae makes the following observations :

1.           When the Japanese say that  organisation is people, they really mean it.

2.           Japanese  top  managers  never  tire  of  reminding  the employees  that they,  the  workers, know  the  business best and that innovation and  improvement must come from the genba. (The meaning of "genba" is explained somewhere in the extract).

3.           Separation  of muscle  from  brain may  well  be a  root cause of  the vicious cycle  of decline  in productivity and loss of international  competitiveness in which U.S. industry seems to be caught.

4.           More  equal  opportunity in  training  and  promotion, regardless  of  people's  educational  and  intellectual backgrounds,  would be at  least  as  

important and pertinent to business performance.

It  is  fashionable  these  days,  to be  talking  about  the "Japanese  Style  of  Management"'. - and books  written  by Japanese authors  'sell like hot-cakes  (one more  example of the high-pressure American salesmanship, I guess !  ).

On  the other hand,  a close  look  at some  of these  books, reveal that the Japanese are saying nothing  new that has not been said before  - by the American and the  European authors 25 years ago !

The  truth is  that there  is no  such thing  as an  American style of management  or a  Japanese style of management  or a British style  of management.  There is essentially only one style of management all over the world viz.  THE HUMAN STYLE OF MANAGEMENT .'

Of course, the context is American or Japanese or British industrial climate.  (Occasionally there is a reverse flow of “know-how" as in the case of British Coal-miners having learned a trick or two from the Bombay Textile strike ! ).

But the underlying theme is the same - MEN have to be MANAGED - that is what management is all about - anywhere, anytime.

And whereas, the other business resources (money, materials, machinery, space and information) can be.

-      planned                    

-      acquired and                    

-      optimised,

the only resource which can be                    

-      organised and                     

-      motivated

is the HUMAN - RESOURCE !

And it is in the aspect of MOTIVATION where the Japanese seem to have scored over the rest of the world.

And in this respect, their “lead" over the others is so much that it is not merely a difference of “extent" -it   is a difference of “degree' ! - so much so  that it looks like an altogether different "style".

How have   the Japanese managers   succeeded so well   in motivating   their   subordinates,    their colleagues   and themselves  ?  (.Unless we are motivated ourselves,  I  don't think we can motivate others '.).

On page 4, Ohmae provides a clue when he writes,

" ........... in Japan every member of  the village (company) is equal and a  generalist ....... he interprets his  duty as somehow more encompassing  ........ he has,  in a way,  a top management perspective .............".

From  the foregoing,  it appears,  as though,  in Japan  they have  succeeded in  eliminating most  of  the barriers  which separate  persons   or  groups  of  persons   ("classes"  Vs. "Masses" ? ) such as,

-      salaries and perks

-      facilities and amenities

-      rank and designations

-      training and promotion opportunities

-      job security

-      punching attendance cards (?)

-      eating in different dining halls (?)

-      job descriptions

etc.  etc.                                       

I am  not suggesting that  what works well  in Japan  (or for that  matter in any  other country)  will automatically  work well in India.

But our options are :

1.     To be bold, venture, try-out and risk failure                            

OR

2.     Keep  talking   of  "   alien  philosophy,   -  cultural      differences, - body

chemistry  - transplant  rejection -     5000 year  old caste  system  ", etc. 

etc. till  we get overwhelmed !

                                 

H.C. PAREKH