MANAGEMENT FOR OPTIMUM PRODUCTIVITY AND TECHNOLOGICAL SELF RELIANCE

This book looks at all aspects of public sector management. The aim is to achieve maximum value effect. It discusses the management of a public sector concern at every level and suggests how to get the best of the resources at hand, namely men, materials and capital.

As a matter of national policy key industries and institutions are predominantly in the public sector and scope of this sector is being progressively enlarged.

In this context planned national growth hinges on the capability of Public Sectors units to achieve their performance targets in order to meet the growing demands of critical equipment, materials and services that these units are expected to produce. In fact they should aim at substantially exceeding their set targets since, compared to performance standards in the industrially advanced countries, their original targets are very modest.

Products of Public Sector units have to be of up-to-date design and internationally accepted quality standards. Their cost of production must also compare favaourably in the international market, taking into account the advantage of lower wage rates prevalent in the country. These are important considerations in keeping a check on inflation, getting a foot-hold in the export market and , at the same time, providing sizeable surplus for development investment.

The other equally important responsibility of Public Sector Units is to become ‘model’ employers, so that work force of the unit from top to bottom may function as a well-knit dedicated team to achieve high performance in an atmosphere of harmony and regard for human values. This last aspect is in fact the foundation of socialistic pattern of society which is our basic creed and the main purpose behind the concept of Public Sector.

In the final analysis, the philosophy of Public Sector management has to be “optimum productivity and technological self reliance in every sphere of activity through total participation at all levels”. We have made an earnest start with this philosophy and the results have been encouraging. We want to enlarge its scope further and apply it in greater depth for maximum ‘volume’ effect. The purpose of this paper is to examine certain basic issues involved in such an effort.

Production is capital and material intensive, Expenditure divided by the number of standard units produced in the year (in terms of norm hours) gives the company’s cost of one standard unit. The company gets the credit per standard unit in terms of landed cost of the same unit if imported. If the company’s own cost per standard unit exceeds the landed cost, there is a net loss. If on the other hand the company’s cost is less than the landed cost, there is a net gain.

It would be observed that if the number of standard units per annum goes up then the fixed cost per standard unit, would correspondingly come down. For further saving in cost there has to be reduction in the variable cost per standard unit which is predominantly accounted for by bought-out materials, tooling and consumables.

Increase in annual production is socially important because growth of the national economy hinges on availability of electric power generating equipment the company produces. In this manner, such as increase would serve a dual purpose: the country would get the vital electric energy and cost of production of the company would come down, making available to the project a surplus for its own growth. Here it would not be out of place to mention that the potential for maximizing production by optimizing the productivity of available resources is very large and it is broadly assessed that national requirements of the company’s range of power generating equipment during the Fifth Plan period could be met with less than 50% of that potential.

In terms of the foregoing, basic objectives for the management are to up-date product designs, maximize production and concentrate on economy in the use of materials, tooling and consumables. Equally important is to concentrate on maintenance of machinery and plant, so that its utilisation may be optimized, its reliability maintained and service life prolonged. This would apply particularly to costly non duplicated ‘unique’ machines. At the same time, scientific and technological competence for all spheres of activity has to be progressively advanced to provide the ‘keen edge’ to betterment effort.

Production is a corporate process. It covers ‘hardware’, ‘software’ and manpower. Hardware implies project equipment, material for conversion, assembly and tooling. Important areas in the management of hardware are: original selection, maintenance, utilization and development. Software implies the aggregate of mechanisms through which manpower manages and operates hardware: organizations, systems, practices, supporting codified information and ancillary facilities. Crucial aspects of manpower are: attitudes, professional skills and motivations.

For optimum results, all the factors of production – hardware, software and manpower – have to be modernized and balanced attention must be devoted to each factor. Concentration on hardware alone is bound to be wasteful. This is particularly so since modern hardware is sophisticated and expensive and its employment is economical only if it is utilised intensively in association with matching manpower and software.

The company has had the benefit of imported modern hardware. We have also received valuable assistance from our collaborators in the sphere of software and training of certain key personnel. However, notwithstanding this assistance, modernization of our software and manpower is seriously lagging behind. In the circumstances, utilization of available hardware remains below optimum level and technological self-reliance for further development is not up to the mark.

Correction of this imbalance would go a long way in improving utilisation of available equipment, thereby reducing the need for additional equipment during the fifth and subsequent plan periods. At the same time, it would create the appropriate environment for building of technological self reliance. It would be appreciated that improvement in utilization of equipment (this also applies to material and tooling) yields recurring benefits and their quanta grow with increase in the scale of operations.

Correction of the imbalance referred to earlier would, in essence, mean a deliberate and well organized effort directed towards “ change for the better”. The change may be in methods or equipment or both. It has to be engineered, managed and executed.

For such an effort to succeed, it is essential that there should be a consensus in favour of it at the decision making and work levels. A strong urge for ‘the better way’ has to be awakened at each work centre and there has also to be competent institutional support for finding and effectively applying such a way.

This can only happen in an atmosphere of understanding, trust and willingness for constructive participation. That has to be the key-note in the drive for higher productivity and technological self-reliance.

In western countries, industrial development has materialized organically over a period of time and enlightened management concepts, advanced professional skills and healthy industrial traditions are now well established.

Thus natural environmental pressure is generated for high standard performance with continuous emphasis on betterment.

In India, on the other hand , the situation is different: management concepts are hazy, professional skills have not sufficiently advanced, healthy industrial traditions have yet to be formed and protection against external competition encourages complacency. Thus the natural environmental pressure is for low standard performance and elevation of performance standards becomes a pioneering task.

The crux of the problem is to provide sufficiently strong motivations for pioneering activity and to effectively canalise the talents and energies offered for pioneering work. This is no easy task but it is also not impossible if motivations are organized on sound socialistic lines. By their very nature, autonomous Public Sector Units are best placed to give a lead in this direction.

Recent experience reveals that there is a large body of well meaning and promising workers – and a worker means every member of the organization – who for a variety of reasons carry a deep sense of frustration and they have the urge to take up pioneering challenges and contribute something worthwhile that would give them self-respect, work satisfaction and reasonable measure of material well-being. This urge is the real motive force that has the potential to elevate performance standards in Public Sector units to unbelievable heights.

For harnessing this motive force the vital need is a clean working atmosphere and dedicated leadership at all levels to inspire the workers to GET TOGETHER and PULL TOGETHER. At the same time, there has to be well organized support of ‘appropriate’ software, science and technology, so that the work force at each work centre may be able to advance its professional competence.

Well conceived personnel induction, communication, attitude reorientation through example and training would be the tools to build up caliber and morale in the work force. Channelisation of effort in the right direction would be facilitated by objectively developed schemes of performance assessment, placement and promotion. Similarly, objective recognition of community, group and individual contribution, through appropriate social, professional and monetary benefits would help in that direction. Special emphasis would be placed on efficient team work with maximum opportunity for the individual to bring forth his best.

Management has to be considered in three dimensions i.e. in relation to : people, ideas and things. Its primary activities – planning, organizing, staffing, directing and control – have to be developed as an integrated ‘system’ with the over-riding consideration that they have to cater for rapid ‘change for the better’ in a developing environment. Special emphasis has to be placed on the leadership aspect and ‘behaviourist’ functions of management since they determine the quality of ‘orchestration’ in achievement of specific objectives.

In the industrially advanced countries management has undergone revolutionary changes in concepts and methods; but these cannot be simply transplanted in a developing environment. It is necessary to prepare the ground for the purpose and adapt modern concepts and methods to match the status of ground preparation that can be achieved. In this manner, each stage of developmental change would rest naturally on the existing ground and, after consolidation, it would provide appropriate ground for the next more advanced stage of the change.

It has to be appreciated that concepts and methods which are ‘inappropriate’ for a given environment cannot take roots in that environment. Any effort to force them without the requisite ground work would not only fail but, through default, it would also bring the very concept of modern management in disrepute, particularly when there is initial inertia and psychological resistance towards change. This underlines the importance of thorough study and step by step well monitored experimentation in introducing basic changes.

In practical terms an exclusive set-up is necessary to undertake the following :

The set-up referred to above would have to function in close co-operation with the decision making and work levels and it would be, therefore, of paramount importance to establish its credibility with these levels.

It is intended to devote particular attention to the following techniques of modern management that are reported to have produced spectacular results in the industrially advanced countries:

At the same time, systematic studies are proposed to be undertaken in respect of current practices of house keeping, rules and procedures, with the object of simplifying and streamlining day-to-day work of the organization as a whole, its departments and individual work centres. This offer great scope for participation by all ranks.

In India R and D is generally considered in relation to processes and hardware and requisite R and D attention is not devoted to software and manpower, though the latter two factors promise the richest dividends. It is intended to devote balanced R and D attention to all the three factors. Broadly speaking, The R and D programme would have two basic components : Product development and internal development. Product development would primarily incorporate:

Vital supporting activities for the purpose would be : training of R and D personnel, building up of internal / external ‘information base’, development of practice codes and manuals and developing of manufacturing / testing facilities for product development work.

Internal development will progress only if the merit of systematic application of modern Science and technology in dealing with ‘real life’ problems can be clearly demonstrated. Set-up for internal development has to be geared to meet this basic requirement. It would primarily incorporate:

In developing Science and Technology in the areas indicated above, the over-riding consideration would be to make it ‘appropriate’ for the environment obtaining at the time of application. It is equally important to enlist the cooperation of decision making and work levels concerned in experimenting with new methods.

Set-up for internal development would have the lead role in ‘model’ development (referred to later). To play that role effectively, it would have at its disposal workshop facilities for quickly effecting modifications or producing any new equipment that may be required for experimental purposes.

As in the case of product development, training of R and D personnel for internal development work and giving them the support of a sound internal / external ‘information base’ would be of vital importance.

Manpower development constitutes the ‘hard core’ of corporate developmental process and training constitutes the hard core of manpower development. All training is important but particularly important is the training of personnel in key positions, since they have a determining influence on the development of personnel placed under their charge.

Training activities have to be developed with a completely utilitarian bias to serve the specific requirements of the organisation. The objective is to enable individuals from all ranks to develop their potential faculties in the following spheres :

Pre-appointment training courses are intended for serving personnel when there is a basic change in functions eg. when an artisan is promoted to the position of a supervisor or when a ‘line’ worker is given a ‘staff’ assignment or vice -versa.

Refresher courses are intended to enable serving personnel to recapitulate essentials of their profession and to ‘update’ their knowledge pertaining to developments in their own disciplines as also in related disciplines. The latter aspect is necessary in cultivating a ‘systems sense’ amongst key personnel.

In all the three categories of courses referred to above attention would be devoted to make the personnel cost conscious and familiarize them with industrial engineering and computer oriented techniques. Opportunity would also be taken to impress upon them the need for ‘work simplification’ and to invest the time so saved in development activity.

Selective training would be for ‘advanced proficiency’ with the following ends in view:

All categories of staff from class IV to Class I would be able to participate in the scheme and advancement of proficiency would immediately result in tangible direct utility in terms of the foregoing. Broad essentials of the proposed scheme are given in Appendix ‘A’.

As far as practicable, training programmes would be organised on a tutorial pattern with maximum exposure to ‘real life’ problems and instruction through typical case studies. The emphasis should be on building up the trainee’s grasp of fundamentals pertaining to his discipline and his capacity to apply them.

Training courses would always include group discussion and problem solving sessions, the effort being to let the trainee arrive at the right answer himself and find the rationale for it. This would effectively promote trainee participation in the training programme.

An important area in which the aforesaid methods would be very useful is ’ergonomics’. This is study of man in relation to his environment and includes : work place, work posture and tools. Rationalisation of these factors offers tremendous scope in improving the productivity of labour intensive operations.

Implementation of the concepts outlined in the foregoing calls for a pragmatic action plan. Certain salient aspects proposed to be covered by such a plan are outlined hereafter:

A draft document has to be prepared, spelling out the objective principles and basic code of conduct that would apply throughout the set-up. This document would be discussed in all the work centres and would be finalized with due regard to the criticism and constructive suggestions received there from. It would be kept under review and updated from time to time.

Such course of action would constitute a valuable exercise in participative management and the finalized document would rest on a broad base of consent and commitment. Each worker would be given a personnel copy of this document with suitable additional ‘induction material’ pertaining to his sphere of work. This is intended to enlighten him about the place of his organsiation in the national set-up and his own pm=lace in the set-up. He would know what the organisation expects from him and what he may expect form the organization. He would also become aware of the criteria for his performance evaluation and get guidance as to how he may participate in developmental activity.

Communication is intended to regularly inform the worker of the status of the organization’s performance, its plans and problems. It is also intended to feedback the workers’ reactions, problems and constructive suggestions. It would need to be ‘tailored’ for particular work centres with due regard to their activities; and it would have to be in a form that holds interest and presents tangible challenge to initiative and innovative capacity of personnel in the respective work centres.Such communication would be different from that provided in conventional house magazines / newsletters, where bulk of the content is of a general or social nature. The type of communication envisaged would call for a good deal of introspection and definition and it would thereby assist in developing a scientific ‘temper’ in all the participants.

With the foregoing steps, the urge for innovation is expected to grow and work centres would become demand centres for advanced training and scientific / technological guidance. In order to take such an urge to its logical conclusion, it is essential that the institutional set-up for training and scientific / technological services develops organically and keeps ahead of the demand.

The overall effect is expected to be a drive for all round “ betterment” and progressive increase in the tempo of production. It is vital to sustain the increasing work tempo and avoid any anti-climax that may cause a set-back to staff morale. Therefore, in-depth “ home work” would have to proceed side by side to ensure that there is always adequate work load, material and facilities to absorb the output from increased work tempo. If necessary, planned diversification would have to be undertaken for the purpose. For maximum ‘involvement’, activities pertaining to ‘internal development’ would be decentralized to the largest extent practicable. Each worker would be encouraged to become an activist for internal development or at least cooperate in the development effort. It has to be ensured that he does not develop a negative attitude to hinder the developmental process. Well planned internal development – and this applies to every work centre would provide a valuable cushion of workload to absorb any surplus effort during lean periods. To begin with, internal development task for individual work centres could be formulated in terms of data building, training, practice codification and problem identification. Besides other benefits, this would provide the management with authentic detailed information about individual work centres in an encyclopaedic form. Non - availability of such information often results in costly errors. A parallel development task would be making the work centres more orderly and placing activities on a more systematic footing.

For optimum volume effect, the vertical and horizontal components of development have to be considered separately. The former elevates the performance standards and the latter enlarges the base of such performance. In the first instance, a high performance ‘model’ would be developed on a compact and manageable base. Its ‘full circuit prove out’ would establish its feasibility and would also identify the areas needing environmental support. This would enable extension of the model achievement on a realistic basis. In the net result, cost of trial and error and development time would be minimized and benefit volume maximized. The model approach, which makes a prove out obligatory, would further ensure that ‘counterfeit’ does not pass for ‘substance’. At the same time, a successfully functioning model would terminate controversy and energies would be concentrated on enlarging the success already achieved.

Detailed formulation of the action plan outlined above and meeting the challenges posed by it would also provide opportunities, incentives and prospects to satisfy the legitimate aspirations of earnest and talented personnel. The result would be a powerful boost to staff morale and leadership with revolutionary zeal will come forward from all ranks to spearhead pioneering activities.

The subject of modern management is too vast and complex to be covered in a single paper. I have only tried to broadly portray the challenges that lie ahead of us and how it is contemplated to meet them. This is some loud thinking to provide a basis for discussion in the organisation. If it activates thinking and constructive debate on the issues brought out and ultimately leads to a consensus on the course of action to be adopted, it would have served its purpose.



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MANAGEMENT FOR OPTIMUM PRODUCTIVITY AND TECHNOLOGICAL SELF RELIANCE M. L. Puri (1968) This book looks at all aspects of public sector management. The aim is to achieve maximum value effect. It discusses the management of a public sector concern at every level and suggests how to get the best of the resources at hand, namely men, materials and capital. CASE STUDY – A LARGE PUBLIC SECTOR MANUFACTURING ORGANISATION INTRODUCTION: As a matter of national policy key industries and institutions are predominantly in the public sector and scope of this sector is being progressively enlarged. In this context planned national growth hinges on the capability of Public Sectors units to achieve their performance targets in order to meet the growing demands of critical equipment, materials and services that these units are expected to produce. In fact they should aim at substantially exceeding their set targets since, compared to performance standards in the industrially advanced countries, their original targets are very modest. Products of Public Sector units have to be of up-to-date design and internationally accepted quality standards. Their cost of production must also compare favaourably in the international market, taking into account the advantage of lower wage rates prevalent in the country. These are important considerations in keeping a check on inflation, getting a foot-hold in the export market and , at the same time, providing sizeable surplus for development investment. The other equally important responsibility of Public Sector Units is to become ‘model’ employers, so that work force of the unit from top to bottom may function as a well-knit dedicated team to achieve high performance in an atmosphere of harmony and regard for human values. This last aspect is in fact the foundation of socialistic pattern of society which is our basic creed and the main purpose behind the concept of Public Sector. In the final analysis, the philosophy of Public Sector management has to be “optimum productivity and technological self reliance in every sphere of activity through total participation at all levels”. We have made an earnest start with this philosophy and the results have been encouraging. We want to enlarge its scope further and apply it in greater depth for maximum ‘volume’ effect. The purpose of this paper is to examine certain basic issues involved in such an effort. OBJECTIVES Production is capital and material intensive, Expenditure divided by the number of standard units produced in the year (in terms of norm hours) gives the company’s cost of one standard unit. The company gets the credit per standard unit in terms of landed cost of the same unit if imported. If the company’s own cost per standard unit exceeds the landed cost, there is a net loss. If on the other hand the company’s cost is less than the landed cost, there is a net gain. It would be observed that if the number of standard units per annum goes up then the fixed cost per standard unit, would correspondingly come down. For further saving in cost there has to be reduction in the variable cost per standard unit which is predominantly accounted for by bought-out materials, tooling and consumables. Increase in annual production is socially important because growth of the national economy hinges on availability of electric power generating equipment the company produces. In this manner, such as increase would serve a dual purpose: the country would get the vital electric energy and cost of production of the company would come down, making available to the project a surplus for its own growth. Here it would not be out of place to mention that the potential for maximizing production by optimizing the productivity of available resources is very large and it is broadly assessed that national requirements of the company’s range of power generating equipment during the Fifth Plan period could be met with less than 50% of that potential. In terms of the foregoing, basic objectives for the management are to up-date product designs, maximize production and concentrate on economy in the use of materials, tooling and consumables. Equally important is to concentrate on maintenance of machinery and plant, so that its utilisation may be optimized, its reliability maintained and service life prolonged. This would apply particularly to costly non duplicated ‘unique’ machines. At the same time, scientific and technological competence for all spheres of activity has to be progressively advanced to provide the ‘keen edge’ to betterment effort. APPROACH Production is a corporate process. It covers ‘hardware’, ‘software’ and manpower. Hardware implies project equipment, material for conversion, assembly and tooling. Important areas in the management of hardware are: original selection, maintenance, utilization and development. Software implies the aggregate of mechanisms through which manpower manages and operates hardware: organizations, systems, practices, supporting codified information and ancillary facilities. Crucial aspects of manpower are: attitudes, professional skills and motivations. For optimum results, all the factors of production – hardware, software and manpower – have to be modernized and balanced attention must be devoted to each factor. Concentration on hardware alone is bound to be wasteful. This is particularly so since modern hardware is sophisticated and expensive and its employment is economical only if it is utilised intensively in association with matching manpower and software. The company has had the benefit of imported modern hardware. We have also received valuable assistance from our collaborators in the sphere of software and training of certain key personnel. However, notwithstanding this assistance, modernization of our software and manpower is seriously lagging behind. In the circumstances, utilization of available hardware remains below optimum level and technological self-reliance for further development is not up to the mark. Correction of this imbalance would go a long way in improving utilisation of available equipment, thereby reducing the need for additional equipment during the fifth and subsequent plan periods. At the same time, it would create the appropriate environment for building of technological self reliance. It would be appreciated that improvement in utilization of equipment (this also applies to material and tooling) yields recurring benefits and their quanta grow with increase in the scale of operations. Correction of the imbalance referred to earlier would, in essence, mean a deliberate and well organized effort directed towards “ change for the better”. The change may be in methods or equipment or both. It has to be engineered, managed and executed. For such an effort to succeed, it is essential that there should be a consensus in favour of it at the decision making and work levels. A strong urge for ‘the better way’ has to be awakened at each work centre and there has also to be competent institutional support for finding and effectively applying such a way. This can only happen in an atmosphere of understanding, trust and willingness for constructive participation. That has to be the key-note in the drive for higher productivity and technological self-reliance. MOTIVATION: In western countries, industrial development has materialized organically over a period of time and enlightened management concepts, advanced professional skills and healthy industrial traditions are now well established. Thus natural environmental pressure is generated for high standard performance with continuous emphasis on betterment. In India, on the other hand , the situation is different: management concepts are hazy, professional skills have not sufficiently advanced, healthy industrial traditions have yet to be formed and protection against external competition encourages complacency. Thus the natural environmental pressure is for low standard performance and elevation of performance standards becomes a pioneering task. The crux of the problem is to provide sufficiently strong motivations for pioneering activity and to effectively canalise the talents and energies offered for pioneering work. This is no easy task but it is also not impossible if motivations are organized on sound socialistic lines. By their very nature, autonomous Public Sector Units are best placed to give a lead in this direction. Recent experience reveals that there is a large body of well meaning and promising workers – and a worker means every member of the organization – who for a variety of reasons carry a deep sense of frustration and they have the urge to take up pioneering challenges and contribute something worthwhile that would give them self-respect, work satisfaction and reasonable measure of material well-being. This urge is the real motive force that has the potential to elevate performance standards in Public Sector units to unbelievable heights. For harnessing this motive force the vital need is a clean working atmosphere and dedicated leadership at all levels to inspire the workers to GET TOGETHER and PULL TOGETHER. At the same time, there has to be well organized support of ‘appropriate’ software, science and technology, so that the work force at each work centre may be able to advance its professional competence. Well conceived personnel induction, communication, attitude reorientation through example and training would be the tools to build up caliber and morale in the work force. Channelisation of effort in the right direction would be facilitated by objectively developed schemes of performance assessment, placement and promotion. Similarly, objective recognition of community, group and individual contribution, through appropriate social, professional and monetary benefits would help in that direction. Special emphasis would be placed on efficient team work with maximum opportunity for the individual to bring forth his best. MANAGEMENT TECHNIQUES Management has to be considered in three dimensions i.e. in relation to : people, ideas and things. Its primary activities – planning, organizing, staffing, directing and control – have to be developed as an integrated ‘system’ with the over-riding consideration that they have to cater for rapid ‘change for the better’ in a developing environment. Special emphasis has to be placed on the leadership aspect and ‘behaviourist’ functions of management since they determine the quality of ‘orchestration’ in achievement of specific objectives. In the industrially advanced countries management has undergone revolutionary changes in concepts and methods; but these cannot be simply transplanted in a developing environment. It is necessary to prepare the ground for the purpose and adapt modern concepts and methods to match the status of ground preparation that can be achieved. In this manner, each stage of developmental change would rest naturally on the existing ground and, after consolidation, it would provide appropriate ground for the next more advanced stage of the change. It has to be appreciated that concepts and methods which are ‘inappropriate’ for a given environment cannot take roots in that environment. Any effort to force them without the requisite ground work would not only fail but, through default, it would also bring the very concept of modern management in disrepute, particularly when there is initial inertia and psychological resistance towards change. This underlines the importance of thorough study and step by step well monitored experimentation in introducing basic changes. In practical terms an exclusive set-up is necessary to undertake the following : In-depth study of modern management techniques, Their promise, limitations and the environmental support that they require. In-depth study of the position in the organisation and identification of areas where application of modern management techniques would be feasible and profitable. Selection of one or more areas for selective application of modern management techniques on experimental project basis. Ground work for the experimental projects, including adaptation of the original techniques, as considered necessary. Monitoring of the experimental project to the stage of successful ‘prove out’. Extension of successful experimental project. The set-up referred to above would have to function in close co-operation with the decision making and work levels and it would be, therefore, of paramount importance to establish its credibility with these levels. It is intended to devote particular attention to the following techniques of modern management that are reported to have produced spectacular results in the industrially advanced countries: Cost-benefit methodology for objective evaluation of projects, proposals for acquisition of capital assets, methods and performances. Computer oriented data processing systems for all critical areas of activity where the volume of detail to be handled is large and ‘real time’ information is vital. Critical path Methodology (CPM) and Programme Evaluation Review Techniques (PERT) for planning, co-ordination and control of project work. Multi-discipline ‘systems’ methodology in dealing with project work and other multi-discipline activities. Methodologies pertaining to performance budgeting and industrial engineering activities. Methodologies pertaining to build up of information base, development of internal norms / standards, data / practice codification and communication. At the same time, systematic studies are proposed to be undertaken in respect of current practices of house keeping, rules and procedures, with the object of simplifying and streamlining day-to-day work of the organization as a whole, its departments and individual work centres. This offer great scope for participation by all ranks. RESEARCH AND DEVELOPMENT ( R AND D) In India R and D is generally considered in relation to processes and hardware and requisite R and D attention is not devoted to software and manpower, though the latter two factors promise the richest dividends. It is intended to devote balanced R and D attention to all the three factors. Broadly speaking, The R and D programme would have two basic components : Product development and internal development. Product development would primarily incorporate: Techno-economic consultancy to the user for equipment selection. Functional design of the product and its testing. Manufacturing drawings, standards, specifications and allied engineering. Installation, prove out and service feed back. Activities pertaining to updating of technology, rationalization and standardization. Vital supporting activities for the purpose would be : training of R and D personnel, building up of internal / external ‘information base’, development of practice codes and manuals and developing of manufacturing / testing facilities for product development work. Internal development will progress only if the merit of systematic application of modern Science and technology in dealing with ‘real life’ problems can be clearly demonstrated. Set-up for internal development has to be geared to meet this basic requirement. It would primarily incorporate: Project engineering for modifications, remodeling and extension of existing work centres and setting- up of new work centres. Provisioning, selection and specification of machinery, plant and ancillary equipment. Industrial engineering: Costing, cost-benefit evaluation and productivity indices. Rationalisation of organizational set-up, rules and procedures. Development of cost oriented performance / propriety criteria. Work study and material handling. Rationalisation of standards, specifications and methods from the stand points of manufacture and maintenance. Material control, warehousing and scrap disposal. Machinery and plant maintenance. Tooling and ancillary factory equipment. Essential factory services. Control of wastage and scrap. Computer-oriented management techniques. Safety. Quality Control, production control and Incentives. Development of new techniques for manufacture, repair and reclamation, as also their codification. Repair and maintenance economics / policy. Repair and maintenance schedules. Special studies, investigations and development projects. In developing Science and Technology in the areas indicated above, the over-riding consideration would be to make it ‘appropriate’ for the environment obtaining at the time of application. It is equally important to enlist the cooperation of decision making and work levels concerned in experimenting with new methods. Set-up for internal development would have the lead role in ‘model’ development (referred to later). To play that role effectively, it would have at its disposal workshop facilities for quickly effecting modifications or producing any new equipment that may be required for experimental purposes. As in the case of product development, training of R and D personnel for internal development work and giving them the support of a sound internal / external ‘information base’ would be of vital importance. TRAINING Manpower development constitutes the ‘hard core’ of corporate developmental process and training constitutes the hard core of manpower development. All training is important but particularly important is the training of personnel in key positions, since they have a determining influence on the development of personnel placed under their charge. Training activities have to be developed with a completely utilitarian bias to serve the specific requirements of the organisation. The objective is to enable individuals from all ranks to develop their potential faculties in the following spheres : Citizenship. Professional competence. Capacity to participate in pioneering team work. Leadership. Training programmes would be both regular and selective. Initiative, response and application displayed by an individual in a training course and his performance at work would be the criteria for giving him opportunity for selective more advanced training. Regular training would consist of : Basic Training Pre-appointment training. Refresher training. Basic training courses are intended for new entrants and serving employees who have not had the benefit of such training. Pre-appointment training courses are intended for serving personnel when there is a basic change in functions eg. when an artisan is promoted to the position of a supervisor or when a ‘line’ worker is given a ‘staff’ assignment or vice -versa. Refresher courses are intended to enable serving personnel to recapitulate essentials of their profession and to ‘update’ their knowledge pertaining to developments in their own disciplines as also in related disciplines. The latter aspect is necessary in cultivating a ‘systems sense’ amongst key personnel. In all the three categories of courses referred to above attention would be devoted to make the personnel cost conscious and familiarize them with industrial engineering and computer oriented techniques. Opportunity would also be taken to impress upon them the need for ‘work simplification’ and to invest the time so saved in development activity. Selective training would be for ‘advanced proficiency’ with the following ends in view: The individual would get an absorbing interest and his time and energy would be constructively channelised for sufficiently long spells. That is expected to result in new, more desirable traits and more efficient way of working becoming second nature with him, which would be a capital gain for both the individual and administration. Productivity would go up at the work centres where personnel with advanced proficiency qualification are engaged. Selection standards could be raised because, from amongst those with advanced proficiency qualifications, it would become possible to find candidates to meet the enhanced standards. Through greater work satisfaction, recognition of merit, financial benefits and, not the least, an atmosphere of greater equity that the scheme would help to bring about, there would be better morale and improved industrial relations. All categories of staff from class IV to Class I would be able to participate in the scheme and advancement of proficiency would immediately result in tangible direct utility in terms of the foregoing. Broad essentials of the proposed scheme are given in Appendix ‘A’. As far as practicable, training programmes would be organised on a tutorial pattern with maximum exposure to ‘real life’ problems and instruction through typical case studies. The emphasis should be on building up the trainee’s grasp of fundamentals pertaining to his discipline and his capacity to apply them. Training courses would always include group discussion and problem solving sessions, the effort being to let the trainee arrive at the right answer himself and find the rationale for it. This would effectively promote trainee participation in the training programme. An important area in which the aforesaid methods would be very useful is ’ergonomics’. This is study of man in relation to his environment and includes : work place, work posture and tools. Rationalisation of these factors offers tremendous scope in improving the productivity of labour intensive operations. ACTION PLAN Implementation of the concepts outlined in the foregoing calls for a pragmatic action plan. Certain salient aspects proposed to be covered by such a plan are outlined hereafter: A draft document has to be prepared, spelling out the objective principles and basic code of conduct that would apply throughout the set-up. This document would be discussed in all the work centres and would be finalized with due regard to the criticism and constructive suggestions received there from. It would be kept under review and updated from time to time. Such course of action would constitute a valuable exercise in participative management and the finalized document would rest on a broad base of consent and commitment. Each worker would be given a personnel copy of this document with suitable additional ‘induction material’ pertaining to his sphere of work. This is intended to enlighten him about the place of his organsiation in the national set-up and his own pm=lace in the set-up. He would know what the organisation expects from him and what he may expect form the organization. He would also become aware of the criteria for his performance evaluation and get guidance as to how he may participate in developmental activity. Communication is intended to regularly inform the worker of the status of the organization’s performance, its plans and problems. It is also intended to feedback the workers’ reactions, problems and constructive suggestions. It would need to be ‘tailored’ for particular work centres with due regard to their activities; and it would have to be in a form that holds interest and presents tangible challenge to initiative and innovative capacity of personnel in the respective work centres.Such communication would be different from that provided in conventional house magazines / newsletters, where bulk of the content is of a general or social nature. The type of communication envisaged would call for a good deal of introspection and definition and it would thereby assist in developing a scientific ‘temper’ in all the participants. With the foregoing steps, the urge for innovation is expected to grow and work centres would become demand centres for advanced training and scientific / technological guidance. In order to take such an urge to its logical conclusion, it is essential that the institutional set-up for training and scientific / technological services develops organically and keeps ahead of the demand. The overall effect is expected to be a drive for all round “ betterment” and progressive increase in the tempo of production. It is vital to sustain the increasing work tempo and avoid any anti-climax that may cause a set-back to staff morale. Therefore, in-depth “ home work” would have to proceed side by side to ensure that there is always adequate work load, material and facilities to absorb the output from increased work tempo. If necessary, planned diversification would have to be undertaken for the purpose. For maximum ‘involvement’, activities pertaining to ‘internal development’ would be decentralized to the largest extent practicable. Each worker would be encouraged to become an activist for internal development or at least cooperate in the development effort. It has to be ensured that he does not develop a negative attitude to hinder the developmental process. Well planned internal development – and this applies to every work centre would provide a valuable cushion of workload to absorb any surplus effort during lean periods. To begin with, internal development task for individual work centres could be formulated in terms of data building, training, practice codification and problem identification. Besides other benefits, this would provide the management with authentic detailed information about individual work centres in an encyclopaedic form. Non - availability of such information often results in costly errors. A parallel development task would be making the work centres more orderly and placing activities on a more systematic footing. For optimum volume effect, the vertical and horizontal components of development have to be considered separately. The former elevates the performance standards and the latter enlarges the base of such performance. In the first instance, a high performance ‘model’ would be developed on a compact and manageable base. Its ‘full circuit prove out’ would establish its feasibility and would also identify the areas needing environmental support. This would enable extension of the model achievement on a realistic basis. In the net result, cost of trial and error and development time would be minimized and benefit volume maximized. The model approach, which makes a prove out obligatory, would further ensure that ‘counterfeit’ does not pass for ‘substance’. At the same time, a successfully functioning model would terminate controversy and energies would be concentrated on enlarging the success already achieved. Detailed formulation of the action plan outlined above and meeting the challenges posed by it would also provide opportunities, incentives and prospects to satisfy the legitimate aspirations of earnest and talented personnel. The result would be a powerful boost to staff morale and leadership with revolutionary zeal will come forward from all ranks to spearhead pioneering activities. CONCLUDING REMARKS The subject of modern management is too vast and complex to be covered in a single paper. I have only tried to broadly portray the challenges that lie ahead of us and how it is contemplated to meet them. This is some loud thinking to provide a basis for discussion in the organisation. If it activates thinking and constructive debate on the issues brought out and ultimately leads to a consensus on the course of action to be adopted, it would have served its purpose. APPENDIX ‘A’ Broad essentials of the proposed scheme for advanced proficiency** 1. The scheme would be taken up as a ‘quality project’ starting selectively on a modest manageable scale and enlarging progressively on the basis of proved success and to the extent factors contributing to success become available. Its close monitoring at a sufficiently high level with a sense of commitment would be vital. 2. Participation in the scheme would be on a voluntary basis. Volunteers would be carefully screened to select the best amongst them for the number of seats available in the courses. It is contemplated that the courses would be graded, there being 2-3 Grades constituting a set. Duration of courses would vary and may lie between 1 - 6 months with provision for some extra time for deserving candidates who are unable to qualify in the prescribed time. Some minimum time would also be prescribed for performance stabilization between successive courses. 3. Evening classes would be started to enable desirous candidates to prepare themselves for admission to courses for advanced proficiency. Here also screening of volunteers would be necessary to admit the best material to the limited class capacity. 4. Instructional time for the courses would be provided on a contributory basis. It is contemplated that half the time would be during working hours as contribution of the administration and the other half outside working hours as contribution of the individual. 5. In evolving performance standards for advanced proficiency and related syllabi, methods of instruction, instructional material and assessment procedures, special attention would be devoted to the following aspects. 5.1 Detailed study of job requirements to equip the personnel, particularly the key personnel, for their respective roles in the productivity drive. 5.2 Preparation of syllabi of instruction, guidance notes and instructional material to match the new job requirements. This task will be partly adaptive and partly original development through research and experimental application. 5.3 Training of a sufficiently large panel of serving outstanding personnel to undertake full or part-time screening, instruction and testing of personnel undergoing training. 5.4 Motivation of personnel to enthusiastically participate in the training programme as learners, instructors or both, as the case may be. 6 Assessment of performance would be continuous during the advanced proficiency course, in terms of a scientific point system as in vogue in Germany. 7 Attention of advanced proficiency qualification would be rewarded by: Issue of advanced proficiency certificate with corresponding entries in the service record and, where applicable, confidential report folder. Suitable cash / kind award with or without advanced increments. Opportunity for external study visits. Special pay and any other benefits that may be considered appropriate. Increased quota for competitive selection to higher grades, for which advanced proficiency would be an asset. Serving personnel, who are certified competent to impart instruction for higher proficiency, would also be eligible for recognition and benefits in proportion to their assessed contribution in coaching successful candidates.
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