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

Wednesday, 27 March 1985

COMMUNICATING

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).

March 27, 1985

Sometime back I wrote to you regarding MARUTI management’s efforts to bring in a new work-culture in their organization.

The enclosed article about LANCO  (manufacturer of MOVING dry-cells) gives you a glimpse of another  Indian manufacturer who is  experimenting  with  an off-beat  (for  India)  management style, aimed  at changing  employee-attitudes. 
I thought you would find it interesting.

It does  seem that both at  MARUTI and at LANCO,  they had the advantage  of  starting  from  scratch  -  in  the  matter  of building a  different work-culture.   I realize that  it is a far  more difficult  job  at  Powai with  its  30/35 years  of traditions  and  practices.   But given  a  positive will  and perseverance,  I  do  not  think,  it  is  a  hopeless  task. Innovationmes  into existence without the  inevitable birth-pangs !

Hemen Parekh

REGARDING MARUTI MANAGEMENT'S

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 March 1985

Dear Colleague :

Sometime back I wrote to you regarding MARUTI management’s efforts to bring in a new work-culture in their organisation.

The enclosed article about LANCO (manufacturer of NOVINO dry-cells) gives you a glimpse of another Indian manufacturer who is experimenting with an off-beat (for India) management style, aimed at changing employee-attitudes. I thought you would find it interesting.

It does seem that both at MARUTI and at LANCO, they had the advantage of starting from scratch – in the matter of building a different work-culture. I realize that it is a far more difficult job at Powai with its 30/35 years of traditions and practices. But given a positive will and perseverance, I do not think, it is a hopeless task.
Innovations are (almost) always painful, but then nothing beautiful comes into existence without the inevitable birth - pangs !


H.C. PAREKH

Friday, 8 March 1985

SECRETS OF EFFICIENCY

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).
  
8 MAR 1985


To:
REVEREND SWAMIJI
MR. & MRS. DESAI  (Chairman)
AND FRIENDS,
It  gives me  great pleasure  to welcome  Swamiji  amongst us today.  When  I  say that  we have  been eagerly  waiting for this day, I know  I am not alone in feeling so.  Thousands of L&T-ites have eagerly awaited this evening.
I also welcome all of you who have  come out in great numbers to listen to Swamiji.
Whereas it  is my pleasure  to welcome you,  it will  be your pleasure to listen to Swamiji talk about
"Secrets of Efficiency"
Thousands of years ago,  on the battle field  of Kurukshetra, Arjuna told Lord Krishna,
"I am your disciple, you be my teacher".
It  was  then  that  Lord  Krishna  gave  Arjuna  the  divine knowledge of Karma-Yoga, and finally said,
"Now with a strong  determination, arise, 0 son of  Kunti and fight this holy-war against the evil."
This evening  I request  Swamiji to  accept 7000  L&T-ites as his disciples and tell us  the relevance of Karma Yoga to the men and women of this industrial society in the year 1985.

Thank you

H.C. PAREKH

REVEREND SWAMIJI


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).


8 March 1985


REVEREND SWAMIJI

MR. & MRS. DESAI AND FRIENDS:

It gives me great pleasure to welcome Swamiji amongst us today. When I say that we have been eagerly waiting for this day, I know I am not alone in feeling so. Thousands of L&T-ites have eagerly awaited this evening.
I also welcome all of you who have come out in great numbers to listen to Swamiji.
Whereas it is my pleasure to welcome you, it will be your pleasure to listen to Swamiji talk about
                     “Secrets of Efficiency”
Thousands of years ago, on the battle field of Kurukshetra, Arjuna told Lord Krishna,
“I am your disciple, you be my teacher”
It was then that Lord Krishna gave Arjuna the divine knowledge of Karma-Yoga, and finally said,
“Now with a strong determination, arise, O son of Kunti and fight this holy-war against the evil.”
This evening I request Swamiji to accept 7000 L& -ites as his disciples and tell us the relevance of Karma Yoga to the men and women of this industrial society in the year 1985.
Thank you
H.C. PAREKH

A SCHEME TO LINK UP PRODUCTIVITY WITH BONUS


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).




8 March 1985


My Dear Mr. Naik,

Sub: A Scheme to link up productivity with Bonus
Ref: Your letter dt. 28th December 1980

I your above mentioned letter, you have expressed many thoughts. I agree with some of these and do not agree with some others.
Matters on which we agree:
1.  When the salient working results of the Company appear in the newspapers, workers start voicing their aspirations on bonus and after the Company’s Annual General Meeting, pressure groups start expressing demands.
2.  The Management and the Union should work together to find a permanent solution to the bonus problem.
Matters on which we differ:
1.  If the Management and the Union are to work together to find a permanent solution to the bonus issue, it should not only be ‘in line with the workers’ expectations, but, it should be in line with the Management’s expectation as well.
2.  Linking Productivity with bonus does not appear to be the ‘permanent’ solution that you and I seek – not atleast in the near future.
What makes me dis-agree with you ? Let us examine:
Whereas, it is not difficult to think of a Scheme linking productivity to bonus, where is the assurance that it will work? 
Both, the Union and the management, made one such attempt in January 1979. In our 4-year Agreement, we linked productivity with substantial benefits granted to the ‘give –and take’ basis, the Union and the workmen undertook to raise the individual/departmental productivity indices by 25 points. That was the linkage.
Nearly two years have elapsed since we first established this linkage – what do we find? The workmen continue to receive Rs. 200/- month after month, whereas the performance indices have largely remained where they were in January 79 and in stray cases marginally gone up – or even down:
And we cannot say that the workers/Union are unaware of the commitment made by them or unaware of what has actually happened: with 3-tier productivity Committees constituted in September 79 (and announced jointly by Mr. S.V.Nalwade, the then General Secretary and myself) and the number of monthly meetings taking place, it would difficult to say that there has been any communication failure in this respect. Despite necessary efforts, both on the part of the Union office bearers and the managers, the results are simply not there. Why is it that despite so much good-will and communication, the increase in performance indices by 25 points remains a dream?
This is the key question to which all of us must address ourselves. Till such time, we find an answer to this question, (and implement the same) we should not, I believe, attempt linking poor productivity to anything else.
And I believe, I know the answer.
The answer lies in the very human nature. An individual would make additional efforts if he could expect to be reasonably rewarded for the extra efforts. This is the basic efforts/reward relationship. What apparently went wrong with our 1979 Agreement is that we put the ‘cart before the horse’. I strongly feel that instead of giving away the reward of Rs. 200/- in advance, had we linked the reward of Rs. 8/- per rise of each P.I. point and rewarded only after the PI has actually gone up, we would have by now, attained a total rise of 25 points or perhaps more.
The linkage was supposed to be already there but the effort/reward relationship was twisted.
Should we not straighten out our existing ‘twisted’ links first before we think of adding others ?

H.C. PAREKH