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). |
14 Aug 1986
To:
Dear Department-Head
A NEW
CORPORATE WORLD
"The sad
thing about many older and tradition-bound American Companies is that they
may recognise the need for
innovation as' a matter of corporate survival but
not know how to go about getting
it. Accustomed to setting-up
controls and to avoid risk, they may have forgotten how to permit experimentation. Used to
setting policy at the top, they
cannot easily free the levels below to
contribute new ideas".
Later in the book, Rosabeth does
speak of a few American companies that not
merely "permitted"
experimentation but had a definite
policy to "encourage"—Innovation
and "invite" ideas from
the bottom-most levels.
These companies were greatly
successful.
In case you
wish to read this book (with all my underlining and remarks in the margin - for me reading a book is a kind of dialogue with the author.!, please phone me, or send me a small note.
One such successful company is
"AVIS-RENT-A-CAR". In the June issue of "Kirloskar"
magazine, Anand Bhave writes about this company
- (you will have to
tolerate my translation from Marathi to English!). Apparently most of the thoughts expressed by Anand
seem to
have been taken
from a book titled "Further-up-Organization". If anyone
has a copy, I would like to
borrow please.
Although,
I do not agree with all that has been written by
Anand in his article -
"A New Approach to Organization", (enclosed), it is
nevertheless
thought-provoking. Leaving aside Anand's attempts to glorify Townsend, in Avis, there are
glimpses of the
same innovations which
Rosabeth considers essential to a company's survival and growth.
When
we, at L&T, ourselves
are struggling with our Economy
Drive, can we learn some
lessons from AVIS,
and make innovations a
corporate life-style rather
than merely
chance-incidences ? Can we
liberate ourselves from ideological strait-jacket to chart
a new course ? Those who call their
vehicles "space-SHIP", - can
they cross the galaxies
?
Can we forget past
experience and change our Terms-of-Reference?
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