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

Now as I approach my 90th birthday ( 27 June 2023 ) , I invite you to visit my Digital Avatar ( www.hemenparekh.ai ) – and continue chatting with me , even when I am no more here physically

Sunday 8 March 1987

OFFICE 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).

8 Mar 1987

To:
Corporate Management
General Managers
Joint General Managers
Regional Managers
Chief Executives/General Managers of S&A Cos.
LMJ   CH   SB   CD   NNT   AGT

SUB : OFFICE PRODUCTIVITY


The issues Involved in office productivity are closely Interlinked with the trends in office manpower strength.  It Is also Important to analyse the trends In Dearness Allowance/Consumer Price Index, which In turn affect personnel compensation.  In the following note, I have charted some of the trends in manpower, and related costs for our operations In Powai, Bombay.  I consider the points - highlighted In these charts -relevant to my presentation to the forthcoming PRC meeting on March 23, 1987.

An appropriate Interpretation of the trends can be undertaken only by the Group General Managers concerned, since they alone know what changes their Group operations have undergone In the past few years In terms of :

-      Changes in Markets/Marketing strategies.
-      Changes in products & technologies
-      Changes in manufacturing processes
-      Impact of computerisation in office productivity.
-      Organisation structure/levels of hierarchy.      
-      Re-distribution of functions.
-      Catalystic role with regard to 'out of town' projects.
-      Decreasing collaborations (from abroad) and Increasing local R&D.
-      Structural changes in compensation (as between bargainable and Sup.staff - narrowing gaps).
-      Rapidly rising wages
-      Limitations Imposed by rigid classifications.
-      Restrictions Imposed by BMC/State Government.
-      Liberalisation (or otherwise) of Industrial licensing policy. Imports policy, etc.
-      Competitive climate DomestIc & foreign etc., etc.

    An analysis along these lines will reveal the changes that have happened and why they have happened.  More lmpor+an.t, however, will be to project what wll I happen - or ought to happen In the next 5 to 10 years. Ever Increasing automation/mechanisation  of manufacturing processes will, in all likelihood, shift the requirement of skills of manpower from shop related to office related.
the rapidly rising wages is a factor common to both shop and office scenario.  A projection of maximum and minimum Dearness Allowance -based on the actual movement of Consumer Price Index (CPI) for the past 97 months Is as given below :


The minimum D.A. in 2000 A.D. will be 2.1 times that in 1986 and the maximum will be 2.3 times the 1986 D.A.!   This projection cannot be brushed aside; the actual movement of D.A.  In the past four years has been fairly close to that projected four  years back, as can be observed from the following :     
      
The Increase in D.A. due to rise In CPI has significantly Increased the personnel compensation.  As a rough yardstick, the following chart on number of Bombay based unionised employees drawing more than Rs.36,000 per annum (as compared to total Bombay-based employees drawing above this limit). is revealing :

The percentage of Bombay-abased unionised employees drawing more than Rs.36,000/- (to the total Bombay-based unionised employees) has also gone up, as follows :

The subject of office productivity assumes special significance in view of the changing manpower mix.  The scenario for the past 10 Years is amply illustrated in the - Groupwise & overall - trend graphs and tables (for Powai only), attached (Annexure I to VI). It Is clearly evident that :

-      The growth In population of Sup. & above - the major white collar constituency shows the sharpest trend (base year 1976) for all Groups without exception.
-      For most Groups, the trend in manpower growth in clerical cadre comes next
Undoubtedly, this Is another block directly concerned with office productivity.
-      With the exception of Group III - where the strength of Dally rated
   employees has grown  as compared to 1976, there is no significant  Increase in
   the manpower growth in the Daily rated category.

The analysis of manpower should settle one point - that is the increasing need to focus on office productivity.

Some ratios which will reflect the changing manpower mix and/or also serve as possible indicators of office productivity are given  in Annexure VII .

The trends/figures illustrated In this note are relevant because it is Important to aggregate the costs associated with office and analyse the trends before evolving appropriate productivity measures.  This analysis may be considered as the background against which I would like to present the subject to PRC when we meet on March 23, 1987.

         
           ANNEXURE  I
POPULATION GROWTH AT POWAI - GROUP  II

CADRE
1976
1977
1978
1979
1980
1981
1982
1985
1984
1985
1986
Sup. & above
252
301
318
319
351
359
375
322
528
543
579
Clerical
59
61
62
65
72
72
72
74
72
86
92
Technical
198
209
207
229
247
267
258
157
163
186
188
Daily Rated
1119
1159
1129
1088
1073
1110
1124
1117
1153
1145
1131
Total
1628
1730
1716
1701
1743
1808
1827
1870
1916
1960
1990




ANNEXURE II
POPULATION GROWTH AT POWAI - GROUP  III


CADRE
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
Sup. & above
175
196
211
248
297
337
345
559
541
577
601
Clerical
76
30
81
87
95
104
107
109
109
128
126
Technical
267
255
269
314
272
289
279
172
191
214
208
Daily Rated
1215
1750
1389
1943
1966
1914
1940
1926
1867
1832
1836
Total
1735
2281
1950
2592
2630
2644
2671
2766
2708
2751
2771

      


ANNEXURE  III
POPULATION GROWTH AT POWAI - GROUP IV

CADRE
1976
1977
1978
1979
1900
1901
1982
1983
1984
1985
1986
Sup. & above
10
22
25
26
28
32
45
58
51
53
53
Clerical
14
14
14
16
17
18
17
16
16
16
17
Technical
40
40
37
39
40
42
33
27
25
23
26
Daily Rated
339
466
320
335
325
331
351
350
352
400
346
Total
441
542
396.
416
410
423
446
451
444
498
442





ANNEXURE IV
POPULATION GROWTH AT POWAI - PGM GROUP

CADRE
1976
1977
1978
1979
1980
1981
1982
1985
1984
1985
1986
Sup. & above
107
107
113
123
130
124
165
165
171
154
153
Clerical
138
127
132
137
142
145
145
141
144
114
112
Technical
145
132
139
216
208
208
207
214
218
201
205
Dally Rated
406
392
372
304
309
300
291
300
291
239
228
796
758
756
780
789
777
808
820
824
708
698




ANNEXURE IV
POPULATION GROWTH AT POWAI - GM (FINANCE )'s OFFICE

CADRE
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
Sup. & Above
29
27
29
29
29
26
26
34
39
36
38
Clerical
81
70
73
76
82
79
83
89
91
92
94
Technical
1
1
1
3
2
2
1
2
2
2
2
Daily Rated
6
6
6
4
7
7
6
7
6
6
6
Total
117
104
109
112
120
114
116
132
138
136
140




L&T  POPULATION GROWTH AT POWAI  - OVERALL

CADRE
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
Sup.& Above
610
688
733
786
876
915
1003
1391
1389
1414
1475
Clerical
447
416
427
452
467
474
487
498
499
491
489
Technical
681
668
676
827
784
816
794
590
617
643
2607
Daily Rated
3133
3857
3261
3727
3723
3705
3773
3763
3734
3690
3614
Total
4871
5629
5097
5792
5850
5910
6057
6242
6239
6238
6221

P.S.  -  Trainees are not included




ANNEXURE VII
OFFICE PRODUCTIVITY TRENDS

POSSIBLE INDICATORS  

1.  Output (at constant price)
Office employee (Sup. + MR Unionised)

2.   Value Added      
Rupee of office Employee Wages/Salary + Perks

3.   Unionised Employers     
   Sup. and above Employees

4.   MR Employees     
   Sup. & above employees

5.   Clerk +Steno + Typist      
   Sup. & above employees

6.   Inspectors     
   Production workers

7.   Stores Workers     
   Production workers

8.   Maintenance Workers     
   Production workers.

9.   Increase in Office Assets

(a)      Office Assets* (value)      
Office employee

(b)      Computing Power   
Office employee (*) 

(c) Office Assets
-          Blue Printing machine 
-           Microfilming equipment               
-          Xerox           
-          PCs & Printers'               
-          Calculators               
-          Typewriters + Word Processors               
-          Dictaphone            
-          CAD Systems           
-          E-PABX                
-          Magnetic Card Attendance System


Hemen parekh





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