File of Letter to L&T Project

COMMUNICATING for PRODUCTIVITY / E BOOK

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About this book

Way back in 1979, I took charge as General Manager (Powai), at L&T’s Powai

(Mumbai) factory

At that time, two labour unions were fighting for control of some 6000 blue-collar

workers (leaving aside some 1500 Supervisory staff). One union was affiliated to

Congress party (led by Rajni Patel / Dr. Dutta SAMANT) and the other union (

Bharatiya Kamgar Sena – BKS ) was affiliated to Shiv Sena ( led by Dattaji Salvi /

Dutta Sawant )

That fight led to a lot of violence, leading to a couple of murders (though, not inside

factory )

Caught between this cross-fire, the Supervisor staff (especially shop-supervisors /

foremen etc) was thoroughly de-moralized due to erosion of their authority to

maintain discipline on shop floors. During those terror-filled days, I remember that

shop foremen used to avoid confronting Union Leaders, who roamed the entire

estate without permission.

On a number of occasions, I saw a shop foreman change the aisle when he saw a

Union Leader approaching from the opposite direction! Fear reigned supreme!

Production and productivity had touched rock-bottom due to “Go Slow “and

spontaneous “Sit Down Strikes “on flimsiest grounds

L&T Management was clear about one thing. It could not / would not, take side of

any one of the two Unions. There was a firm belief that it was entirely up to the

workers to decide who (which Union) should represent them vis-à-vis Management.

There can be no question of a “Management Sponsored “Union

Question before me was:

“What can I / should I, do to restore normal conditions at Powai? How can I get the

Union and the workers to start trusting the Managers / Supervisors? How can I bring

discipline on the shop floors? How can I get the Shop Supervisors to sympathetically

listen to the grievances of the workers and not dismiss these as frivolous? How can I

start between the workers and the supervisors, an open / honest dialogue based on

transparent sharing of facts? “

My answer:

I must, myself take the lead in starting such a dialogue – first by writing letters to

the workers – followed by visiting the shop floors every day, for 2 / 3 hours and

listening / talking to the workers , in the presence of the shop supervisor concerned

Then encourage all shop supervisors to conduct such meetings – at least, once a

week

This book contains the letters which I wrote to the L&T employees at Powai (with

copies sent to Managers of other L&T factories, all over India). These letters were

made in both English and in Marathi and I got approx. 8,000 copies printed on a

small printing press at Powai. Each employee got his own / personal copy

I continued this process right up to 1987 (when I got transferred to L&T House , as

GM - Exports and GM - Planning )

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).

In 1987, Bombay Chamber of Commerce (BCCI) brought out a small booklet (titled:

Sun Rises in the West), containing a few of these letters

As far as “Sun Rises in the West “booklet is concerned, in the Annexure, you will

find:

“ Introduction “ by Shri N M Desai ( the then President– BCCI / Chairman L&T )

“ A word about this Book “, by Shri B P Gunaji ( Secretary – BCCI )

“ Author’s Preface “ by myself

I leave it to the readers to decide whether the approach that I adopted for creating

and nurturing a “ HARMONIOUS INDUSTRIAL RELATIONS “ climate , some 37 years

ago, is still ( or even more ) relevant today

Hemen Parekh

hcp@RecruitGuru.com / www.hemenparekh.in

Mumbai / February 2021

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ONE IMPORTANT ACKNOWLEDGEMENT

In this herculean effort spread over 8 years , my wife Bharati helped me by visiting two

/ three worker families every week to listen to the spouses – then share her findings

with me during our early morning walk on Juhu beach. This proved to be an invaluable

feedback in respect of problems faced by the family-members of the workers. Bharati

did not hesitate to point out what management policies were wrong and needed

corrections!

Thank You, Bharati,

You were not supporting me from “behind “. You led me from the “front “

COMMUNICATING WITH MANAGEMENT

INDEX

Sr. No

TITLE

1 Promise of Productivity

2 "COMMU-TIES" - Yes / "COMMITTEES" - No

3 Formulating Strategies

4 How to get along better with people

5 Involvement

6 Standardization of Formats and Presentation Methods

7 New Year Resolutions

8 Productivity - A Look Backward and Forward

9 The First Steps

10 Discounting Price Escalations

11 Productivity-Drive

12 Seize the Initiative

13 The Secrets of Success

14 Concept of the Corporation

15 The Dilemma of Managerial Unionism

16 An Experiment in Trusteeship

17 Infiltrating the Union?

18 59 Lakh Suggestions!

19 Worker - Education - Syllabus

20 Here Comes the Entrepreneurs

21 Orders Lost

22 The Changing Pattern of Industrial Relations

23 Issues and Solutions

24 Instant IR

25 A Magnificent Obsession

26 The Birth Pangs

27 Educating Employees

28 Powai Level Productivity Meeting

29 Winning Battles/ Winning Wars

30 Changing Organization-Culture-The Indian Style

31 Office Productivity - Project ASH

32 In-plant Training of LTIT students

33 The Fish, The Frog & The Tortoise

34 A Red Film!

35 The Paper Tiger

36 Project ASH

37 Are You a Local Godfather?

38 I Would Like To Ask GINO

39 A Non-Productivity Machine?

40 A Tale of Two Managers

41 A New Corporate World

42 Learning - From Ourselves

43 Absenteeism

44 Project WARM

45 The Legend of Matsushita

46 Resurrection at General Motors

47 Suggestion-Scheme/ Stock Taking

48 Managers On the Run!

49 Suggestion-Scheme/ Replies to Rejected Ones

50 Employee Seminar At Lonavla

51 Do It Right The First Time

52 Working Smarter

53 Did the Union Deliver?

54 Torn Notes in Pay-Packets

55 Corporate Management Members (Individuaily)

56 Experiences in Evolving A Participative Work-Culture

57 Suggestion-Scheme/ Feedback

58 A Thankless Job?

59 A Duty-Free Import?

60 Office Productivity

61 Unproductive Labour Practices

62 DFP

63 Participative Work Culture

64 Factors Affecting Decision-Making

65 Computer Project

66 Possibility of a 5-day Work-Week

67 5-day Work-Week in City Offices

COMMUNICATING WITH MANAGEMENT

Promise of Productivity

January 14, 1979

M-1

To:

General Managers

The productivity has our minds agitated for nearly three years now. It was in April 1975

that our Chairman (Mr. N.M. Desai) appointed a "System and productivity Committee" to

study the various. Aspects of productivity and make recommendations. A Report

containing the recommendations was submitted in November 1976.

Without going into the progress made in the implementation of the recommendations, This

morning appears to be the most opportune time to talk to you once again about

productivity. The occasion I have in mind is the signing of the four-year agreement with the

Union last Friday evening.

I draw your attention to the clauses on "Productivity and Discipline" which have been

incorporated in the agreement.

If a break-through has to be made on the Productivity front, a way must be found out to

translate these clauses (which might at first glance appear like so many platitudes) into a

day-to-day working relationship between the Shop-floor management and the

workmen.

The Union and the Workmen, in return for the benefits arising out of the agreement,

have agreed to raise the performance Indices by 25 points above the existing level

within three months.

What does this mean?

If the current PI (Performance Index) for an individual workman or a group of workmen

(Shop/Department) is, say, 50, the Union and Workmen have agreed to raise the PI to 75.

In essence, the output in physical terms, in such a case, should go up by 50 per cent.

In my numerous discussions with the DGMs, I have been informed that the

Performance Indices are as low as 22/24 in many Shops. Assuming this to be true, raising

the PI by 25 points over the existing levels, would mean an increase of physical output

per person by over 100 per cent!

With this background, how may additional vacancies (of daily-rated workmen) should

we budget in our 1979-80 Manpower Budget? This, then, is the multimillion Rupee

question! (The cost of the four-year agreement).

Barring rare exceptions, if we were to propose any additional manpower during

1979-80, it would be tantamount to ourselves not having faith in the Productivity Clauses

of the agreement I There are other ways of dealing severe blows to the spirit and intent of

the productivity Clauses, but proposing additional' Manpower would be the surest way of

sounding the death-knell of the entire concept.

At this stage I cannot resist the temptation of narrating the English Electric case study.

English Electrics have an elaborate system of Methods Study/Time Standards based

on which they calculate daily/ monthly PI for every shop. At the time of signing an

Agreement with the Union some three months back, this PI was averaging 71 for the

entire factory. The Productivity Clauses of the Agreement provided for the workmen to

raise the PI to 81. At end of three months of constant pressure/ persuasion /monitoring

/feedback the PI has actually reached 80 as on 4th January of this year. I am sending

out a separate detailed Note on the subject to all the DGMS/ Production Managers with

a copy of the Agreement.

H.C. PAREKH

P.S.: At English Electrics, after receiving the PI Statement every morning from the

Industrial Engineering Department, the FIRST THING that the production Managers

/Personnel Officers do is to meet the Union's shop representatives and bring it to their

notice the shortfall in the targeted

PI for each shop. EE considered this DAILY MEETINGS with the Union's Shop

Representatives to be a crucial factor in bringing about productivity improvement.

COMMU-TIES – Yes / COMMITTEES - No

December 23, 1979

M - 2

To:

Deputy General Managers (DGMs)

We already have many Committees.

Perhaps too many.

So I would be the last person to suggest one more.

An anthropologist discovered existence of ‘Committees’ during the Indus Valley civilization.

While digging at "MOHENJO-DARO", he unearthed a room-full of chairs and cups of tea -

"Come-meet-tea"!! (Since then civilization has made great strides in this art of doing

nothing, by introducing coffee.' - it keeps you awake)

But then "Mohenjo-Daro' in B.C. 3,000 had fewer walls than Powai has in 1979 A.D. -

except that these are 'invisible' I (to frustrate the anthropologist of 4,000 AD'.?)

Non-believers, kindly study Annexure 'A'

That's right. I meant 'Barriers to communication'.

So we should have some more 'COMMU-TIES' - Communications ties.

These, I call, 'holes-in-the-walls. ' Our windows to the 'worlds'.

The 'worlds' of

- Managers

- Officers and Supervisors

- Technical and Clerical staff

- Workmen and Union

Under Phase I (OPERATION COMMU-TIES?) we have already made a 'beginning with the

"PRODUCTIVITY COMMU-TIE"

at 4 levels Under Phase II, I believe we should establish a regular channel of

communication with the Supervisors and Officers. They are there to implement Company

Policy - even help frame it (Supervisory participation in Management?). We, the

managers, should understand them better - as a group, -their feelings /difficulties

/suggestions. They must understand better, the managerial directives and the

inconsistencies of managerial action - whether real or apparent.

With the foregoing objective in mind, I met 17 of them on 21st inst. The response

was very encouraging and constructive. I felt that a major source of energy has

remained untapped in this age of energy-crisis 11

They would like to meet us once a fortnight (at least initially). Say at 4.30 p.m. (G-4

Conference Room) on

- 4th January '80

- 17th January '80

- 31st January '80

We may call this "INNOVATION COMMU-TIE'. Whether innovative communication will

take place or not will depend upon whether you are present or not. Therefore, I urge

you to remain present and help bring down the walls!

Then someday we will sit down and think about Phase III.

Formulating Strategies

January 27, 1980

M-3

To:

General Managers/

Joint General Managers/

Deputy General Managers.

Sub: PRODUCTIVITY

Enclosed please find a copy of an article appearing in the Fortune Magazine of December 3,

1979.

I have underlined a few statements which would be of specific interest.

According to the author, a negative influence on productivity during 66-73

period, saw the surge in the number of young people entering the labour force.

Disproportionately, large number of young people lowered the average skill and experience

in the work force, reducing the productivity.

I enclose herewith data/graph of the age-profile of our Powai based work force, in

L&T, does our own experience reinforce the American experience?

I draw your attention to the factor listed on page 80 i.e. 'deterioration in attitudes towards

work'. This has some parallel with our own situation.

Page 86 speaks of

1. Company-wide productivity improvement programs

2. Incremental shop floor improvement

3. Spread of 'best practices'

4. Buying the best equipment (not just more of the same kind)

5. Diffusion of knowledge

6. Innovating managerial know-how and improving industrial practices.

I hope you will find the enclosed article and data useful in formulating future

policies/strategies while planning various resources including the human resource. I

also welcome your suggestions on achieving appropriate employee mix (skill as well as

age wise) from internal as well as external source to make the best productivity gains.

HOW TO GET ALONG BETTER WITH PEOPLE

March 9, 1980

M - 4

Dear Shop Supervisor:

Some nineteen years ago, Mr. Gunner Hansen, (the then GM -Manufacturing, Powai)

presented a book to me titled 'Business is people'. I was one of the 20-odd people

who received this gift. Powai was a small place then and everyone knew everyone

else.

Today, Powai has grown so big that even people who travel by the same bus and eat in

the same Canteen for years together do not know each other. The problem, of 'getting

along with people' has never been more acute. 'Business is people' continues to inspire me

even now (the book is out of print but we have two copies in our Central Library).

Enclosed find a copy of 'How to get along better with people' (written by the same

author) which is equally good and I hope it will inspire you now and for years to come, in

your dealings with people.

P.S.:

Developing skills of "Getting Along" requires constant practice. Do not lock-up this

reference book in your table-drawer. Left on the table, it would brighten each day with

a new meaning to every message - read it again and again.

INVOLVEMENT

March 16, 1980

M-5

Dear Shop-Supervisor:

Texas Instruments (TI) is a giant electronics -manufacturing firm in U.S.A. and employs

41,000 people. TI manufactures computer components. Their latest is a computer that

'talks back ' !

(I think they should immediately introduce 'Performance Appraisal' for the wretched

THING!)

TI say, the secret of their success lies in INNOVATION. They innovate product

designs, manufacturing processes, marketing strategies and so on. But where they

excel in innovating (by their own admission) is in INVOLVEMENT - the 'people involvement'

in everything they do.

And the results are there for everybody to see - I mean 'hear'! (At TI they have

changed over to 'hearing is believing'.).

Enclosed extract from an article about TI, describes their PEOPLE INVOLVEMENT.

One way of getting people motivated is getting them involved.

Another way of getting them motivated is to say 'HAPPY BIRTHDAY TO YOU'. To help

you do that, I enclose a list of your colleagues with their birth-dates. The list will also tell

you when one of them completes 15/20/25 years' service with the Company. Both

occasions have immense sentimental value to an individual. If you remember these

dates, he will know you 'care' for him. And who is above the feeling of 'someone up there

like me'?

Wishing you good-luck in your own search for 'good-will'.

STANDARDISATION OF FORMATS AND PRESENTATION METHODS

March 26, 1980

M-6

All Management Members

Of Productivity Committee Meeting (Powai Level)

Further to my Circular of March 24, 1980, I invite your attention to my earlier Circular

of October 24, 1979 on the same subject, reproduced below for your ready reference:

"From a folder circulated by Mr.M.H. Pherwani, I enclose herewith a Chapter entitled

"HOW TO START A PRODUCTIVITY EFFORT".

I draw your particular attention to paragraphs on 'Diagnosis' & 'Measurement'. I

am fully aware that, in a diverse operation like ours, no single measure of

productivity (output), using (input )

identical 'units' of measurement for the 'output' and 'input' could serve the purpose

of all the manufacturing departments. Even for 'Production', different departments may

be compelled to use different units of measurement.

What is however, important is

1. That all manufacturing departments/shop determine, once for all, THE definitions of -

Production and - Productivity that they would follow in the months and years to come.

This CONSISTENCY in the use of a_ definition would permit monitoring of productivity

improvements over the coming months.

2. That all manufacturing departments Standardise the formats in which they would

publish their monthly reports on- Production and - Productivity.

Such monthly reports may include the monthly data as well as the cumulative data

(from the base month of January 1979?) to enable easy and quick comparisons of the

'Actual Vs Budget' on both the parameters viz. Production and Productivity.

3. That as far as possible, the definitions of

- Production and

- Productivity.

Should be in units of physical outputs (and inputs )

and avoid using measures of 'Sales Price', 'Transfer Price' etc. If for some reasons, it

is not possible to avoid use of 'SP/TP' etc., a method of discounting these for the

inflation must be established. The numerator must be adjusted using well known,

'Price index' series published by Govt./Semi Govt./Trade agencies (e.g. RBI).

I have already requested the perspective Planning Dept. to evolve one or more

'product Price index' series using published prices of a large number of industrial

machinery/ agricultural machinery/electrical machinery/construction

machinery/passenger and goods transport vehicles/chemical -pharmaceutical

machinery/consumer capital products etc.

By a copy of this note, I am requesting CMS/VM to approach you to finalise

- the definitions

- the formats

for your area of operations. I am convinced that a consistent use of these is the only

way to know if we are moving and if so, in what direction."

NEW YEAR RESOLUTIONS

May 3, 1980

M-7

To:

Dept. Heads (PGM-Group)

For us the time is April. (But it is better late than never !. )

And it is serious business deciding

- Where we are (data-base)

- Where we wish to go (direction/objective)

- Which path do we take (strategy)

- How do we go (Tactics/Action plan)

- When do we reach (Time/Target)

- What shall be the guide posts (Monitoring Progess)

But decide we must. So how do we go about it?

STEP - I

Decide what is "our job" The job of the department (function - description) The job of an

individual (job description)

Before the departments can write their own "function -description", we must know the

"group functions" - the group under GM(P). What is the "raison d'etre" (reason for

existence) of this group?

You will find this in Annexure A.

This should enable the department heads to write the departmental "function -

description".

Dept. Heads will meet me on 27.05.80 morning at 10.00 a.m. (C-4 Conference room) to

discuss these.

Each dept. head shall present to the group, the "function-description" of his own

department (use O/H Slide Projector). After all the presentations have taken place,

we will discuss and decide if these descriptions are:

- Synergic

- congruent

- complimentary

- supportive

or

- discordant

- opposing

- neutralizing

- negating

STEP - 2

Department Heads circulate their function-description among the Supervisory Staff of

the department, asking them to write down their own individual job-descriptions. By

10/6 each Supervisory Staff to present his own job-description in a departmental meeting.

Once again decide if we are all pulling in the same direction. (If invited, I will try to

make myself available as an "observer"). Also use the departmental meeting to determine

(write down)

CRITERIA - what criteria (measurable) would you like others

(mainly our customers) to use for evaluating departmental performances.

DATA-BASE - what data-base exists (or needs to be created) for

Performance measurement.

OBJECTIVES - in light of the foregoing what should be the

departmental objectives for April 80-March 81.

At this stage, you may wish to debate whether the prevalent atmosphere in the dept. is

"open" enough for the staff members to settle their individual "objectives" right there in

the meeting. If not, in the departmental meeting itself, draw-up a time-schedule for

individual staff members to meet you separately for settling his own objectives.

STEP – 3

Meet the staff member to settle his objectives. To ensure that the objectives are less

"subjective" & more "objective", send out the work-sheet (enclosed) in advance. This is

the ACID-TEST. For practice, ask your man to rewrite last year's (79-80) objectives on

the sheet and see for himself how many of these withstand this test. Only thereafter,

let him write proposed 80-81 objectives on another work-sheet and bring both sheets to

the meeting.

STEP-4

Having settled the objectives, let your man meet you once again within a week. This

time ask him to bring with him:

A. DATA-BASE

The onus of proving ACTUAL vs. TARGET performance is his. Right at the beginning of

the year, he must convince you, regarding the existence of the INFORMATION

SYSTEM and the starting DATA-BASE (over which improvements are planned). There

is no way we can measure progress without co-ordinates

And you must carry your own navigation-instruments. Sure, a Satellite can track you in

the middle of Sahara desert -while you are going in Circles all the time! This is what

generally happens when you depend upon the Computer department or the Accounts

department or the Costing Section or some such external agency to tell you that your

assistant is "off" his target. Remember that keeping you well informed every

morning about the performance of your subordinates, may not be one of their

objectives!!

B. ACTION-PLAN

Many Soul-satisfying Objectives have turned into pious platitudes for want of an

ACTION-PLAN'. Planning Commission will tell you NOW, where we ought to reach by 2000

A.D. - without having the faintest clue of where we will be at the end of 1980! But then

Policy-makers cannot be bothered with trivial details - like the Harvard Professor who

advised the cat-scared rat to become a dog and got angry when the rat asked,

"but-how"? So ask your man to write down "how".

C. THE GUIDE-POSTS

These are all-familiar mile-stones - not only you know that you are on the predetermined

track but you also know how well (or well not) you are doing. Those of you who are

familiar with PERT network, know them as "EVENTS" (AS distinct from activities). These

are so to say, "mini-destinations". Along your "activity-track", have at least 2/3 of

these and keep looking for them - and looking at the calendar. You will know who needs

more steam and when!

STEP - 5

Let your man loose. From this point onwards, he is on his own - to be judged solely by

the "results" and not by the "noise". Let him know you are available for "guidance" -but

only if he asks for it. Your only concern should be with regard to use of unethical means

to achieve noble ends, - or sacrifice of departmental/Group objective so that an individual

may achieve his own. This is strictly forbidden.

I am sure DFP (DGM-HRD) WOuld be only too glad to help at any stage of the exercise.

Annexure - A

FUNCTION – DESCRIPTION ADMINISTRATION GROUP (G.M. POWAI)

PREAMBLE

Let us not look upon L&T, as a mere manufacturer of machinery and equipment.

Let us say, India is waging a war - war for removal of "wants" - a war for a better

tomorrow for its teeming millions. And better tomorrow means different things to

different people. For a man who sleeps on the footpath, it means being able to sleep

inside the 96" diameter pipe!

Let us say, L&T is on the forefront of this war - right out at the frontiers of "Technology".

7000 people of Powai, constantly learn new technologies, and where to apply it with

ever-increasing efficiency to their own daily tasks.

These are

• Designing new war-machines (the Equipments)

• Preparing Production plans

• Acquiring resources of Man/Material/Machine Buildings/Facilities

• Utilizing these resources optimally (to)

@

@

Manufacture the equipments

Despatch/installing/commissioning the equipments

@ Servicing the equipment to keep them going (so that)

o

o

o

o

o

The war on "want" may go on & on

And such a war cannot be fought

with borrowed ammunition

The machines we make are

The muscles that matter

THE ADMINISTRATIVE GROUP

To the people of Powai we cater. We are the "logistics" people (The unsung heroes - if you

like) we are "prominent" when absent and self-effacing if present

Our Job

Our job is to ensure that our investment at Powai remains fully productive at all times,

around the clock, all the days of the year.

And when I say "investment" I mean all types of investment -including "people-investment"

- the most important of all.

At Powai, the company has invested in

Facilities

(The land - buildings - equipments - utilities)

Materials

Mfg. materials/W.I.P./Finished Goods/ Maintenance Materials

Information

Systems & Procedures

Organizational Manuals

Computer-based Data Management

Communication (Telephone/Telex/Mail/Printing )

People

How can we ensure that these Resources are kept "productive" at ail times?

Right from the starting point where you "Envisage" the need for a resource, all the way to

the final stage of "Auditing" whether a given resource is being efficiently 'utilized, you have

to subject the resource to various kinds of treatment.

Type of Treatment Type of Resource Facilities Materials Information People

1 Envisage

2 Plan

3 Acquire

4 Maintain

5 Utilize (optimum)

6 Organize

7 Develop (Train)

8 Nurture

9 Motivate

10 Audit

Clearly the "ADMINISTRATIVE GROUP" is Partly/wholly responsible Occasionally/

Permanently for a few/all of the "treatments" For one/more than one resource

Individually/jointly with unit managers

And THAT is our job !

I have purposely left the matrix blank so that, you may attempt to fill it in:

1. From the view-point of your particular section/department

2. Using your own "self-perception" of your role

3. Using the "perception" of the others in Powai (and elsewhere) as to your role.

PRODUCTIVITY - A LOOK: BACKWARD AND FORWARD

February 11, 1981

M-8

To:

All Operations Committee Meeting Members

The subject of PRODUCTIVITY Was last reviewed nearly II months ago - in Policy

Review Committee meeting dated March 18, 1980.

In that meeting I had traced the history of the Productivity movement at Powai,'

beginning with the appointment of a Committee in 1975 with MR. G. Ramakrishna as

the Convener. The Committee submitted its report in November 1976 and its

recommendations were discussed with the GMs and the Corporate Management.

Most of the recommendations were accepted by the Management but there has been no

subsequent formal audit (to the best of my knowledge) with regard to their

implementation.

After signing a four year agreement with the Union in January 1979, a formal

dialogue with the union on the subject of raising our Productivity level was initiated

around September 1979. A three-tier structure of Productivity Committee was

devised and regular meetings are being held at Powai level and the Unit/Shop levels.

Almost the entire emphasis during the past 18 months has been on "Communication".

In dozens of meetings (involving Managers, Union Office-bearers, Shop representatives.

Shop Supervisors and in some cases ordinary workmen), graphs/charts/tabulations

have been projected to give all concerned an idea of the ups and downs of shopwise

labour efficiency.

All that can be said for this intense effort is that now at least there is an awareness of

how Productivity is measured and where each shop stands.

By and large, however, there is no evidence of motivation -an urge (individual or

collective) to do something to raise the Productivity level.

Although we have succeeded in breaking the "communication barrier" (there is

considerable openness and honesty - of -purpose in various meetings), we have, so far,

not made any dent in the "motivation - barrier".

This, I consider, to be Phase II of our battle.

And why are employees holding back, from getting emotionally involved in the Productivity

drive? Is it that individuals interests are conflicting with the organizational interest?

Is there a "what-is-in-it-for-me" attitude? Is it that what an employee expects from his job

is different from what the organization is prepared to offer him?

Answers to some of these questions are apparent in the minutes of the last Powai level

Committee meeting.

To find out more, a "brain-storm" meeting was arranged. Some six Union Officebearers

and four Managers participated. The meeting came out with some 200

suggestions on how to go about improving Productivity. Of course, some were similar

/identical, as is usual with brain-storm meetings. The list does, however, provide some

clues to what would "actuate" people.

The one recurring theme is "worker participation and involvement".

There just does not seem any other way of motivating employees. What apparently

works at the senior Manager level also seems to work at the blue-collar worker level.

The rate at which the wage-levels have risen in the last three/four years and the rate

at which these could be expected to rise in the near future (under the existing CPI

linked D.A. system), material rewards have perhaps already ceased to be motivating

factor.

If blue-collar 'wages cannot be held down, but can be safely assumed to overtake those of

the Managers in not too distant future, the only sensible thing to attempt is to raise the

"responsibility consciousness - level" of the workmen to that of the Managers!

And, no person feels more "responsible" than when he is taking a "decision" - or

participating in "decision-making" process. He becomes actually conscious of the

"social consequences" of the decision and the repurcussion it can have on his own image

and social prestige.

In L&T, for all its years of existence, we have practised a traditional hierarchial type of

organisation with the decision-making responsibility and authority rising with each

level of hierarchy - not unlike situations in thousands of organisations around the world.

But rapidly changing technology over the last 30 years has also made decision-making

process quite complex.

With increasing complexity of business environment, each level of hierarchy finds itself

presented with new and difficult challenges every passing day. Society's own

expectations of Corporate bodies are for ever increasing.

If we have to have any time to deal with "tomorrow", we can only do so by delegating

some of our "today's" decisions to our subordinates - right down the line up to the shopfloor

workmen.

Let us this morning debate whether

greater delegation will lead to

greater employee-participation/involvement will lead to

greater "responsibility consciousness level" will lead to

greater individual motivation will lead to

greater all-round PRODUCTIVITY

And, if the answer is "YES", where and how do we begin a change in our own attitudes?

The First Steps

May 26, 1981

M-9

To:

Members of the Corporate Management (individually)

I enclose herewith a copy of the minutes of the last Powai Level Productivity Committee

Meeting.

The first Powai Level Productivity Committee meeting was held on. 24th August .1979 -

almost 21 months ago. A total of 10 such meetings have en held so far, averaging one

meeting every two months. The frequency of the apex meeting (Powai level) was once

every month when the productivity drive was launched. The frequency now is once in 2/3

months.

As reported in my last OCM Presentation (February 16, 1981), the communication between

the managers and the Union has by now acquired a good measure of openness and

trust. There are still many differences of opinions - but these are stated explicitly.

There is also an appreciation of the act that there may not be immediate solution to

all the problems. The attitudes on either side are gradually shifting from one of

'adversary' to that of cooperation in finding a solution.

I enclose herewith a copy of a recent article on 'Industrial Relations in USA'. I

consider the contents of the article as being very relevant to the present state of

evolution in industrial relations that we ourselves are passing thro' and therefore, I 'have

arranged to distribute copies of this article to all .shop supervisors and managers

in Powai. I suggest we set aside one entire day to discuss the experiments/theories

mentioned in this article. We may even attempt to chart our future 'IR' strategy.

In the meantime, I would like to draw your attention to the serious concern expressed by

the members of the Productivity Committee (in the minutes enclosed) with regard to

the under loading of various shops and its effect on the shop productivity.

Discounting Price Escalations

December 10, 1983

M-10

To:

Deputy General Managers (Mfg.)

SUB - Next Powai Level Productivity Committee Meeting On 13th October 1983

You must have already received my earlier circular dt, 29th September 1983 regarding

this meeting.

I would earnestly request you to attend the forthcoming meeting in view of the

following:

1. In the very first meeting with the President & Gen. Secretary (BKS Union - Sena

Bhavan) on the Charter of Demands on 24th February 1983, I had emphasised the aspect

of almost stagnation Productivity at Powai in most of our operations since 1979, despite

the Clause in the Agreement providing for a 25 point rise. I had also mentioned in my

opening remarks that arising out of 1979 experience an attempt should be made to

make 1983 agreement,

'A post-performance reward' type agreement.

All of us collectively need to impress this upon the Union.

2. From the information made available by the Finance Department, I gathered that both

the sales price and the transfer price of Powai manufactured products during the

Budget year 1983-84 is likely to be as much as 10% lower from the actual production

attained during 1982-83. If the transfer prices taken for computing this are higher

than those taken for 82-83, the actual physical output may be even as much as 15% to

20% lower than the comparable figures for 1982-83.

If this is so, it is quite serious'. As it is, I have, through my earlier circular already

requested the production managers to present at the 13th October 1983 meeting, 1982-

83 achievements and 1983-84 targets product-wise in physical quantities. This should'

highlight the problems of demand slackness. While presenting these figures, we should

also try to highlight whether the 83-84 physical quantities are expected to be achieved

with the samenumber of man hours or with reduced/increased number of man

hoursthereby highlighting the level of productivity expected.

I belive your participation would help in generating a constructive dialogue on what

steps could be taken to increase our operational productivity at Powai in the years to

come and thereby increase our competitiveness.

PRODUCTIVITY-DRIVE

12 Jun,1984

M-11

To:

Dear Colleague:

Do you remember that we conducted an "employee attitude-cum-compensation" survey

some 18 months ago? An outside consultant (Marketing & Business Associates MBA)

interviewed nearly 2500 unionised employees to fill-in an exhaustive questionnaire. A

comprehensive report was submitted, I had sent a copy of the report to General

Secretary of our Union with a covering letter, nearly 15 months ago.

Since writing that letter a lot of things have happened in Powai. A 4-year settlement has

been signed with the Union.

But certain things which we would have liked to happen, did not happen! One of the

things mentioned in the letter (a copy enlosed for your ready reference) was -

Acceptance by the Union of the principle of "POST PERFORMANCE REWARD".

This is one thing we could not get through 10 The reward has been 'given' but the

performance has yet to be "taken" ', And that is precisely what is expected of us now -

"Take" the performance!

But the employee must know what (precisely) he is expected to "give"! I can almost hear

some of you thinking.

"Oh, come now! Don't be so naive! You mean to say the employees don't know what

is expected of them? Everyone knows what he (or she) is supposed to produce at the

end of the shift'."

I thought so too - until I looked up table No. 20 of the MBA report, reproduced here.

PRODUCTION TARGET (FOR DAILY RATED EMPLOYEES ONLY)

BY GROUPS

Opinion about

Production Target

n =

Gr.ll Gr.lll Gr.IV SER Total

552 937 202 147 1838

1. Satisfied (%) 05 12 04 - 08

2. O.K. (%) 02 02 01 - 02

3. Not Satisfied (%) 05 10 03 01 07

4. Do not have production target(%) 88 76 92 99 83

Did you say, you don't believe it or you do not want to believe it?

I am not surprised because all of us see and hear things we like to see and hear. Human

beings have an in-built defence mechanism that pushes out perception of all unpleasant

experiences.

But that does not change things. If anything it creates misunderstandings. So it is far

better to face the "experience" (no matter how unpleasant) squarely, and do something

about it.

In the current instance, tell your men (and women) squarely what is the production

expected at the end of the hour or the shift or the week or what-have-you!

And if an employee continues to be a "poor" performer, call him up and tell him where he

stands - without mincing words (nicely but firmly). Three times confront him in the

presence of the shop-rep and fourth time in the presence of the concerned Joint-

Secretary. They have agreed to be present - as witness - so that, should an

unpleasant situation develop at a later date, the employee cannot say "I was not told".

Some supervisors have tried this out and they say it works.

Having found out what the employee think about, "production - targets", if you are

curious to know what our employees think about.

- Their ambitions

- Their retirement plans

- Present working conditions

- Relationship with co-workers. Supervisors & Management

- Level of satisfaction Fear of stagnation

- Job content etc.

Please do let me know, and I will circulate to you the findings of MBA, through a series

of such letters.

Seize the Initiative

June 22, 1984

M-12

To: Service Dept. Managers

Unit Level Productvity Meetings In Your Areas

I have, yesterday, personally spoken to the Union Jt. Secretary of your department

regarding this. He has promised to speak to shop-reps and extend all cooperation.

It is now upto us to seize the initiative and hold these meetings every fortnight starting

at once.

The performance-ratios must be, as far as possible, related to an individual's output so he

understands that he has to produce 25% more. Graphs (black-boards) must be displayed

-bold & prominent.

The Secrets of Success

July 5, 1984

M-13

To:

Dear Colleague

The following article by Jayant Dubashi (India Today -30/6/84) is based on a book -

"In Search of Excellence -Lessons from America's best run companies". The book is

currently on the 'Best-seller' list.

When Dr. D.F. Pereira (DGM-HRD) made an audio-visual presentation about this

book to a small group of managers a few months back, I immediately resolved that I

must read this book. And as if to tempt my resolve, a friend returning from U.S.A.

gifted a copy to me.

But I am not one to be so easily tempted! I prompty "lent" it to one of our Vice-

Presidents - who saw it on my table and must have felt tempted. I know he has a better

resolve than mine.

But when I heard about this article in Indian Today, I not only managed to borrow a copy,

I spent a few minutes reading it and some more minutes thinking about its relevance to

L&T to-day.

The article speaks about eight basic practices which characterise the successfully

managed companies (apparently "reading books on management" does not seem to be

one of them!) - in U.S.A.

Are these universal characteristics? and if so, are these to be found in the best managed

Indian companies?

In the absence of an Indian study, we do not know for sure. And although, Mr. dubashi

has raised many questions about the Indian companies (L&T included), these are

left unanswered.

I do not think we, at L&T, need to wait for an Indian study, I don't think we even need to

conduct an in-company study.

But I do think we need a lot of soul-searching. We certainly need to examine our

ways of doing things.

My personal belief is that:

All the problems of the world are known - almost all the solutions are also known. Only

unknown (undiscovered) are the persons capable, willing and motivated to try out the

known solutions.

Can we, within each one of us discover that person?

CONCEPT OF THE CORPORATION

December 22, 1984

M-14

To:

Dear Colleague

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

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

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

rejection - 5000 year old caste system ", etc. etc. till we get overwhelmed !

The Dilemma of Managerial Unionism

November 23, 1984

M-15

To:

Chairman

Vice-Presidents

General Managers/Joint General Managers

Deputy General Managers

I enclose herewith an article that appeared in Business India (NOV 5-18) on

To be able to establish a rapport with our own L&T Officers & Supervisors Association

(LTOSA), I have started a monthly meeting with their managing committee (approx. 30

persons), where I also invite some of our Powai- based senior managers. We have

had 2 meetings so far. I personally feel such a forum helps reduce a lot of misunderstanding.

In case you wish to know the issues being raised and discussed at these meetings,

please let me know- also in case you wish to attend one of these meetings.

AN EXPERIMENT IN TRUSTEESHIP

December 5, 1984

M-16

To:

Dear Shop Supervisor

I enclose herewith an article taken from "Business India".

About 2 years ago, I had sent to many of you, a book titled "THE INCREDIBLE JAPANESE".

In my covering note, I had drawn a diagram which I had called the 'Pyramid of

Worker-Participation' .

The apex of the pyramid was titled 'Trusteeship' - the normal concept being that the

means of production ultimately belong to the society and that we are merely 'trustees'.

This was Gandhiji's approach to bring about a change in the attitude towards work and in

the relationship between the workers and the management. Under this concept the

interest of the society came first.

I do not think the Japanese read Gandhiji's views before they started their experiments

in worker-participation. On the other hand, in a recent seminar on "Japanese

Management", I heard 3 Hitachi executives narrate their management - approach to

improvement of industrial relations and I found that there was a striking resemblance in

the approaches of Hitachi (pages 78-112 of "incredible Japanese". In case you

have not received a copy of this book earlier, please collect it from me personally) and

the approach at "Khira".

Now I understand better what Mr. V. Krishnamurthy (Managing Director - Maruti Udyog

Ltd.) meant when he said in the seminar.

We selected Suzuki as our collaborator, not because of technological or financial

considerations, but because we strongly felt that, at Maruti, what we needed most was

not the technological know-how but the attitudinal know-how - the Suzuki work-ethics".

And although Mr. Krishnamurthy realizes that cultures cannot be transplanted across

thousands of Kilometres from an alien society, he has made some small (but bold)

symbolic departures at Maruti - e.g.

- From General Manager down, everybody wears identical uniform

- There is only one Canteen for everybody

- There are no cabins for anyone at the factory.

Apparently Ganges flows down Mount Fujiama !.

INFILTRATING THE UNION ?

December 12, 1984

M-17

To:

Dear Colleague

I may be accused of giving you an overdose of Japan but that only goes to show

that I have such a high respect for your capacity to absorb things Japanese ! When

it comes to ball pens, digital watches, cameras, two-in-ones, tape-decks, colour-

TV, walkman and a hundred other Japanese things, we never seem to have

enough !. So why leave out "Japanese Industrial Culture" from our list ?

In the enclosed article. Dr. Maheshwari tells us how labour unions are organised in

Japan.

Now those of you who belong to our management-cadre may wonder why you

should worry how labour unions are organised in Japan - or for that matter even in

India .!

To me it is obvious why the managers amongst us must think about the

organisation of labour union. Someone has said that "health is too serious a

matter to be left to the Doctor - and education is too serious a matter to be left to

the Educationists."

It is for the same reason that I think that organisation of labour unions is too

serious a matter to be left to the workman .!

Which is not .the same thing as saying that we should interfere in the internal

affairs of a union and that we should try to run their show !

Quite contrarily ! Managers have enough "management-problems" on their

hands as it is, without taking on a union's "internal affairs".

But if those "internal affairs" start hurting the long-term interests of our

organisation and the interests of our employees at large, I do not think we

should remain silent. It is then time to do some plain-speaking and say "enough is

enough" .!

We must not give-up our right to "influence" (not interfere with) the union

organisation when issues crop-up which cut-across the subscription-barrier. And

this is where the Japanese labour union organisation is of interest to all of us at

L&T, because, at one place the article reads,

"For all employees of Hitachi Ltd., upto Asst. Manager level, union membership is

compulsory. In other words, every senior executive of Hitachi spends at least ten

years as member of the Union and may have even functioned as an officebearer

of the Union during this period."

Do you see the point ? Would you say that

" - The top-echelons of Hitachi management has been infiltrated with Union -

members ? "

or that,

" - The rank-and-file of Hitachi union has been polluted by future managers

masquerading as union-members ? "

And for my unionised friends who will receive this note, I would like to quote

MR. MISU (in 1977, Executive Vice-President and Director of Hitachi Ltd., - and

now Advisor to the Board of Hitachi Ltd.) from "Management of Human

Resources in Japan",

"The Japanese workers do not necessarily work only for money and it is

customary for us not to raise complaints about monetary matters.

If we think of the total benefit of the country, there is no doubt that we would be

better off without any strike, and the economic growth of Japan was largely

accelerated by this moderate behaviour of the Union. The fact that the labour

union exists, does not mean that it has to fight every time. Reaching an amicable

solution is the best way for both the Union and the company. We know that

frequent strikes endanger the base of the country as is observed in United

Kingdom. I have an impression that when both parties persist in their opinion at

the sacrifice of national interest, it is a wrong choice."—

59 LAKH SUGGESTIONS !

December 12, 1984

M - 18

To,

Dear Colleague :

The enclosed article was distributed at a recent seminar on "Japanese Management" which I

attended.

One session was devoted to "Small Group Activities". It was conducted by Mr. Sekijima who

has been with Hitachi Ltd. for last 17 years and currently designated 'Manager -

international Personnel Relations Section'.

The article describes the small group activity at just one of the factories of Hitachi Ltd. But

Hitachi has 26 factories in all. And Mr. Sekijima gave the following statistics for the entire

Hitachi organisation.

HITACHI - 26 FACTORIES

1983 DATA

1. Total no. of suggestions 58,77,000

(58.77 lakhs)

2. No. of employees who sent suggestions 57,617

(62,000 employees have joined SGA)*

3. Average no. of suggestions per person 102.6/ year

(All-Japan average is 70/ year)

4. Average saving per suggestion $ 31

5. Average saving per each suggestion $ 3145

6. Total saving during the year $ 182 million ( Rs. 218 crores)

7. Hitachi's Sales Turnover $ 19.4 billion

8. Best suggestion saved $ 4000 per month approx.

SGA "Small Group Activity

Other things which Mr. Sekijima told me are :

1. Hitachi have a total of 6205 small-groups (of 8-10 employees each) of which half are

of "blue-collar" workers and half belong to "white- collar" workers.

2. In many Japanese companies, the small group activity is known as "Quality-Circles".

3. Suggestions must relate to the "Goal/Objective" set by the Section/Unit/Department

for itself and must be job-related.

4. The suggestions are distributed amongst various topics as follows :

HITACHI

JAPAN

1. Improvement of Quality 36% 31%

2. Improvement of Mgt. or Control 7% 5%

3. Cost - Reduction 36% 42%

4. Safety 11% 3%

5. Improvement of Equipment 10% 6%

6. Miscellaneous - 13%

5. "Meeting-time" for the small-group meetings is as follows:

During

Working

Hours

Outside

Working

Hours

Meeting - time

During Rest-time Morning

or Evening During Idle-time

Actual working-time

After Shift-end Before

Shift-start

% of meeting

held in Hitachi s held in

Japan (avg)

54% 80%

46% 20%

TOTAL 100% 100%

6. There are no monetary rewards for the suggestions given The foreman or manager

gives to the suggestors small token gifts such as a ball-pen or a diary - never

exceeding Rs. 400/- in value.

I could not quite appreciate why each Hitachi employee sent in, over a hundred

suggestions every year, when there was no monetary reward! So I posed this

problem to Mr. Sekijima.

Here is his answer :-

a. The single biggest factor motivating a Japanese employee to send in a

suggestion for improvement is the RECOGNITION he receives through

acceptance and implementation of HIS suggestion. Nearly 70% of all

suggestions are accepted and implemented.

b. There are other ways of recognition such as:

publishing photograph in factory or company newsletter

requesting the worker (or the group) to make a presentation before

Colleagues & managers

accepting a particular suggestion for inter-dept, inter-unit or interfactory

competition

organising a lunch with the General Manager of the plant.

7. Introduction of "small group" activities is a pain staking process, in Hitachi, it took

nearly 8 years as follows :-

1968 - 1971

Improvement of relations between the employees and the Managers

Orientation & Training of Managers.

1972 - 1976

Training of worker-leaders

Introduction of program at worker-level.

1977-

Small-group activity becomes an ordinary event for employees.

8. Every 6 months, there is an intensive training program for "worker-leaders". The

program is conducted by engineers from quality-control, production and industrial

engineering functions. The curriculum includes, Methods-Study and Time standards.

Preventive Maintenance, Quality-control techniques and Industrial Engineering

techniques.

In conclusion Mr. Sekijima added,

"If you wish to introduce such an activity in your company, everybody, starting at the top,

must attend orientation/ training seminars.

The small-group activity is more transplantable in your country than other Japanese

techniques, because it was born in the West".

The only way we can find out if Mr. Sekijima is right or wrong, is by trying!

WORKER - EDUCATION - SYLLABUS

January 11, 1985

M-19

To:

Mr. -

(Assistant Manager - Quality Control)

PSW

We need your help in 'this vital matter !

We need a write-up, hand-outs, slides etc. on "Why Control quality ?"

to include in our training programs

I hope you will not let us down .!

In simple English (or better yet Marathi) we want to tell the workers why defect-free

production is vital to our survival. What's the idea behind zero-defect. How each man

must become his own inspector etc. etc.

We have already received write-ups on almost all other subjects. Will you please

phone me ?

cc: Asst. Manager - Ap. Trg. Section cc: DGM (Emp. Welfare)

Mr.

(Mgr. Plant Eng. - Gr. II)

Worker - Education - Syllabus

Mr. V. K. Mahajan tells me that you have contributed a write-up on,

"Better Maintenance".

I appreciate your contribution and I hope you and your colleagues will futher come

forward, not only with more teaching materials, slides, hand-outs etc. but that some of

you will actually take the classes, if we wish to rank amongst the TOP TEN PLANTS

OF INDIA, it would become possible only through whole hearted involvement of

employees in what have been traditionally "management - responsibilities" -

maintenance being one. Changing work-attitudes & culture has never been an easy task

- even in Japan - but then "Search - for excellence" was never an easy task! The key is

to unleash the latent potential of employees.

Mr. (Secy., Suggestion Scheme)

Worker - Education Classes / Syllabus.

Mr. V.K. Mahajan tells me you have contributed articles on

" Suggestion - Scheme".

I appreciate your contribution and hope you will actually take the classes on this subject.

You are aware of how much importance I attach to the Suggestion - Scheme. Whereas all

other means / instruments of employee-involvement are by nature slow &

evolutionary, I firmly believe that the Suggestion-Scheme can make employees

"involved" in a BIG way in a short-span.

If you and your team want to set for yourselves a target of doubling the savings each

year for the next 5 years in a row, it is possible ! Our Suggestion-scheme has the

potential to become the main driving force of our "Pyramid of Worker Participation". You

must start your own monthly newsletter from this month.

Mr.

(Manager - Works Accounts - Gr. III)

Worker - Education Syllabus.

Mr. V.K. Mahajan tells me that you have contributed a write-up on

"Budgetary Control System."

I appreciate your contribution in our efforts to increase the understanding of our

employees. In my conceptual "Pyramid of Worker Participation" (ask me for a copy if

you have not seen), during phase III I have envisaged employee participation in,

"Input decisions & Output decisions".

And since all inputs/outputs have to be budgeted and controlled, employee

involvement in budgeting must be preceded by educating them on the "process" of

budgeting. Can I request you to actually take the classes ?

Mr.

(Manager - Design Development)

(PSW)

Worker Education Classes / Syllabus

Mr. V.K. Mahajan tells me that you have contributed a write-up on

"Costing / Cost - estimation".

I appreciate your contribution in this vital matter of educating our employees.

We have no option to bring-down costs by reducing wages !

Our only option is to bring-up the worker-understanding and the worker-perception of

what is happening and where we are headed.

If we can make them appreciate what needs to be done then half the battle is won. I

hope you and your colleagues will help by actually taking classes.

Mr.

(Asst. Manager - Maintenance Department)

Worker Education Syllabus

Mr. V.K. Mahajan tells me you have contributed a write-up on

"House - Keeping."

I appreciate your efforts in educating employees in this vital aspect.

Now that both of us have seen Maruti Factory, we can appreciate what beneficial

effect good house-keeping can have on the morale of the people and on productivity.

But since we cannot take 7000 employees of Powai to Maruti, let us see if there is any way

of bringing "Maruti" to Powai!

Let us this be your challenge to figure out how ?

Mr.

(Manager - Ind. Engg.)

Gr. II

Worker Education Syllabus.

Mr. V.K. Mahajan told me you have contributed a write-up on

"Better Utilization of Materials."

I appreciate your help in this vital matter.

But I hope you will not stop at that.

I hope you will actually take classes and use every forum available to influence worker

thinking.

And I hope you will inspire your other colleagues to do likewise.

Remember, there is no other option '.

Mr.

(Manager - Personnel Department)

(Powai Works)


Mr. V.K. Mahajan told me you have contributed an article on "Administrative Controls".

I appreciate this.

I expect you and your Personnel Officers to use forums such as

- Worker Education classes

- Unit level Productivity meetings

- Shop level Productivity meetings

- Safety meetings

to maximum advantage.

These are our opportunities to "influence" worker thinking on a host of subjects

to get valuable grass-root feedback for passing-on to foremen / line - managers.

- also

Mr.

(Technical Training Centre - Gr. III)


Mr. V.K. Mahajan tells me that you have contributed articles on

"Motion-Study/Work-Study/Productivity Better Maintenance".

I appreciate your contribution in an area which I consider to be at the centre of all our

efforts at changing Work-culture at Powai.

Through Worker Education Classes, can I request you to extend to the rest of Powai,

what good training work you have been doing for last few years for the PSW Workers?

The need of the day is to work "Synergetically". I am confident that you and your

colleagues in PSW won't hold yourselves back in this crusade to make Powai an oasis in

the desert of polluted Work-ethics.

HERE COME THE INTRAPRENEURS

February 6, 1985

M - 20

To:

Dear Colleague

Americans are fond of coining new words and what they mean by "Intrapreneur" will

become clear when you read the enclosed article.

A word is only a symbol for a concept. Concept comes first, the symbol later. But the

concept itself follows a certain behaviour.

In this article, the author speaks about innovative behaviour in large firms - or

rather a lack of it - and what some of the companies are trying to do about it.

The question being raised is :

Can Intrapreneurship (innovativeness ?) flourish in large companies which are

characterised by

- many layers of hierachy

- centralised decision-making

- controls from the Top

- rigid structures of reporting & analysis

- intolerance for failure etc. etc.

Or is it that,

- innovations are doomed to failure in large companies?

-lack of innovation is a price a company must pay for growing big ?

But even if it be so, the kind of innovation that is being mentioned in the article, largely

concerns "new products".

What about

- process innovations

- procedure/system innovations

- people re-novations

Must these too suffer as a company grows big ?

And even if we assume for a moment that Powai has grown big (a somewhat dubious

assumption ! ) what,

- resources and freedom to pursue own ideas,

- cutting back on traditional red-tape,

- endless meetings and other obstacles

are holding back the innovations of the kind which I just mentioned ?

Or is it that, these are merely convenient scape-goats ?

ORDERS LOST

February 8, 1985.

M-21

To:

(Manager, Design - Gr. II)

Talking to Mr. V.G. Desai (Divn. Mgr.) a few days ago, he told me that he has made

available to you details of orders lost (by Chemical Division) during the last 6 months to

competitors.

Mr. R.N. Mukhija (Divn. Mgr. - SWT Cont.) is making a presentation on

"competition" during the next Powai-level Productivity Committee Meeting on 14th inst.

at 9 a.m. in G-4. You may wish to attend to get an idea of the presentation. Earlier

Mr. Gupta of Food Div. had made such a presentation.

I would highly appreciate if you and VGD can make such a presentation in the March

Meeting.

THE CHANGING PATTERN OF INDUSTRIAL RELATIONS

February 11, 1985

M - 22

To:

Dear Colleague

I enclose herewith, a write-up on a research-study conducted by the Jamnalal Bajaj

Institute of Management Studies.

After reading this write-up, if you start wondering whether L&T was one of the companies

covered by this research, let me tell you that we did not participate in this research.

But that does not diminish the value of this research. The fact that we are able to identify

some of the characters in this study in the context of L&T, only proves its relevance to our

own situation here at Powai.

The researcher says,

" In the name of professionalism, managements have tended to impersonalize their

relationship with the work-force. "

" They (supervisors) have an authoritarian style of functioning which is not

acceptable to the young, conscious and aware worker who prefers an involving or

participatory type of management."

"At present the level of communication is very poor and there is lack of trust. it is not

enough to merely communicate with the Union leaders or Union Committee.

Sometime back, some of us met to brain-storm and identify,

" The Issues before the Organization".

When the 'ranking' exercise is over, I have a feeling that "Developing harmonious

Industrial Relations" will rank quite high on the list.

How do we go about this? A debate must ensue at all levels. So, can I request you

to circulate the enclosed write-up to all officers and supervisors of your dept.?

ISSUES AND SOLUTIONS

February 20, 1985

M - 23

To:

Dear Colleague

Recently you participated in a brain-storming exercise to make out a list of "Issues before

the organization".

Having identified and prioritized the issues, unless we now move forward to find

"solutions", it would be a waste of time !

But more than that, would it be "lack of maturity"? In the enclosed article, Ashok Malhotra

writes,

"Rarely do Indian managers show the maturity of using their negative feelings as a

"resource" for themselves and for the system".

What perhaps Malhotra does not say so plainly is that, the Indian managers are given to

nursing their grievances (real or imagined) and sulking in a corner with a "hurt" feeling -

little realising that dynamism of an organisation is built upon the "dis-satisfaction" of

its managers - dissatisfaction with their own performance and the performance of the

system !

As someone has said, "contented cows may give milk - but that is about all" I And in

an age where we may soon have synthetic milk, even the contented cows are in danger

of disappearing !.. And then, I am sure, none of us would like to be dragged to the 21st

century much against our free-will, kicking and mewing !

INSTANT IR

February 21, 1985

M - 24

To:

Dear Colleague

These are days of "instant-everything" - instant coffee, instant music (computer -

created), instant baby (test-tube version ?), instant health (Sheri-Louise), instant death

(Bhopal) and even

Instant Industrial - Relations! .

That is the feeling I got the other day when I was one of 13 speakers at an Industrial

Relations Seminar (they always have "new dimensions" - I wonder what happens to

the old dimensions ?). Were it not for the thoughtful absence of some of the speakers,

the remaining speakers would have got only sufficient time to say,

"It is good to have industrial-relations and it is better to have good industrial-relations.

Thank you !."

But then there are sufficient people (with more than sufficient company-money) in a

city like Bombay, who are all too eager to listen to a lot of jargon in the fond hope of

becoming instant IR experts in the course of one day !

What a sharp contrast to know that the personnel managers of Toyota company

"began a pilgrimage in 1952, to talk with employees in small discussion-groups, at their

homes, after work-hours, in an attempt to re-establish mutual dialogue.

On an average, they made three visits a night, coming home after nine o'clock, six days

a week ...... The two managers had to continue their itenerary for ten years, before they

were convinced that their mission was finally completed".

Ten years, 9000 families, one hour with each family '. - all to re-establish mutual dialogue !

Is it any wonder that the country with the least labour-laws has the most harmonious IR

climate ?

In the enclosed article on

"Industrial Relations in Japan" ,

you will come across many examples of the Japanese tenacity when it comes to building

trust between groups of employees - by whatever name called.

A few months back, MR. MISU, one-time director of HITACHI, said,

"As individuals, Japanese people are not very brilliant. We have won only 4 Nobel-prizes

in all these years against 109 won by the Americans. But when it comes to working

collectively as a team, we are almost unbeatable !"

I would request you to pass-on this article to as many supervisory persons in your

department as you can - just anyone who says he has not read it. Some of them, who

might still be around in Powai, in the year 2001 A.D., might want to start their own

"pilgrimage" now !

A MAGNIFICENT OBSESSION ABSENTEEISM REDUCTION DRIVE

March 4, 1985

M-25

To:

Labour Officers in Powai

-We measure absenteeism by Calendar Year. Two months of 1985 are over.

-You have set a target for yourself to bring this down by 1% point in your respective areas.

-For this each one of you must have devised your own strategy and action plan

(with target dates for carrying out specific activities ) e.g.

- Issue of advisory/warning letters

- chargesheets

- Completing inquiries

- Issue of Punishment letters

- Group/individual counselling

- Asking foreman/PWD to counsel

- Displaying graphs on shop floor depts./units

- Showing films

- Issuing "Congratulation" - letters of various kinds.

- Writing letters to family-members of 'bad' cases.

- Telling him/family how much more he would have earned had he not absented.

- Visiting and "talking" to Doctors who keep issuing certificates.

- Compiling last 5 years SL data (as Mr.R.V.Kadam did for PMA).

- Find out his indebtedness(2 year take-home salary projection as compiled by PRL

recently for 8/10 PF loan defaulters). I have requested LDP to compile this on

computer for 500 worst-cases. Please follow-up with him to find out how soon he can give

you this data.

- Persuading Credit-society not to grant him further loans until his absenteeism improves

upto a certain point.

- Talking to foreman/manager not to give him O/T till he improves.

- Calling concerned Shop-Rep/Jt.Secretary and speaking to concerned worker in their

presence/in the presence

of foremen.

- Educating all Shop-Supervisors on when to grant leave/

/when not to grant

- What is ALOP/ULOP

- How to handle medical certificates submitted late.

- When and why to refuse "REGULARISATION"

- Provisions/Quotas

- Unwritten practices (Pl. attempt to compile from all over Powai and write them down).

- When a "misconduct/when not Short Leave

- Leave to attend court-cases (always LOP)

- Improving leave records/leave cards for fast/accurate data -base.

- Telling Supervisors how to use "Hot-Stove" principle (burns the moment you touch). i.e.

demanding explanation the very next day and forwarding notes to concerned

Personnel Officer at once to take action where required.

ACCENTUATING POSITIVE MOTIVATING FACTORS

1.Better physical working conditions (you must point out in writing, like an

auditor - after taking personal rounds of each and every work-station).

This means you must make exhaustive notes.

2. Improving Supervisor/Worker Human Relations. (give each Supervisor, a complete biodata

of all the family-members of each and every worker in his dept).

Encourage Supervisor to inquire about the family-problems and help wherever he can.

You will be amazed how much can be helped, between you and the Shop-Supervisor '.

From ration-card, to bank accounts to getting a gas cyclinder to admitting a child in a

school etc. etc. - each man has a hundred problems ! And these weigh heavily on his

mind resulting in

- frustration

- anger

- insubordination/defiance

- bad discipline

- bad human relations

- poor productivity.

Even if you manage to solve one problem each, of 5 employees each day, it will go a

long way '. And even if you are unable to solve,just plain listening will make him feel

good. Try and see !

I have spoken to you on many occasions, about the NEW ROLE of a Personnel-man.

In Puranas, we have heard of the roles of

Brahma - the Creator - God

Vishnu - the Maintenance-God

Mahesh - the Destroyer-God

Thirty-eight years after Independence, our mentality has remained slavish (in

shackles) and the traditional Labour Officer is still carrying-on his role of the

"Destroyer" - the man who issues charge-sheets and dismissal letters!.

At best, a few valiant "Personnel Officers" are donning the garb of Vishnu - and trying to

maintain industrial-relations just below the boiling-point. They follow a policy of

"Containment".

But, alas ! THERE ARE NONE TO ASSUME THE ROLE OF Brahma - the Creator of goodwill,

creator of new order. Creator of new industrial-man !.

Last week, I circulated an article on Industrial-relations in Japan (get your copy if you

have not and make sure that every Supervisor in your group has read the same).

This article narrates the story of 2 personnel officers of Toyota company who visited

families of workers every night (3 families each night) for more than 3000 nights -

spread over 10 years!

The idea was not to set some kind of a record to get into the Guiness-Book -of Records!

There was an ABSOLUTE single-mindedness of purpose - to remove misunderstanding

between workers and management.

When I read this, I was reminded of our own Arjuna of 5000 years old. After teaching

him archery, when Guru Dronacharya asked him to look at the small bird in the far-away

tree and aim for its eye, Arjuna was the only disciple who replied

"I can see nothing but the eye!"

What made Arjuna a magnificient archer was the fact that he had a magnificient obsession

In life, all of us must have an obsession - any obsession at all I - and it is entirely upto

each one of us to make that magnificent.

THE BIRTH PANGS

March 27, 1985

M - 26

To:

Dear Colleague:

Sometime back I wrote to you regarding MARUTI managements'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 perserverence, 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 !

EDUCATING EMPLOYEES

April 18, 1985

M - 27

To:

Dear Colleague

Last week I sent you a copy of an article by S.R. Mohandas. In that article, Mohandas

makes mention of the problems faced by the management of NOCIL. Some details of

NOCIL issue are explained by Mr. M.S. Patwardhan (Managing Director) in the

enclosed news-paper report.

NOCIL has an internal union-leadership and although NOCIL management seem to'

have reached more-than-reasonable settlements with the union-committees,

committee after committee failed to carry the rank-and-file workers with them. This is

what Mohandas calls the "implementing or delivery-capabilities" of a union leadership in

contrast to their grievance "representation-capabilities".

We have also heard of many cases where the workmen have disobeyed strike-calls

issued by the union-leadership, whether internal or external. So one point is clear:

an internal leadership, by itself, cannot avoid situations of confrontation. Of course, it

helps to negotiate with persons whom you meet and talk to daily. You understand

them better and they understand you better - and both understand problems better.

So we succeed in convincing the union leaders of our view-point and make them

agree that our offer is "just and fair". So you passed the test of your convincing-ability!

But what about- their ability to articulate (not sell) management-views to workmen at

large?

Our task therefore does not end with "educating" a dozen persons. It goes far

beyond, it is management responsibility to train/educate/enlighten not only the union

office-bearers but all the shop-representatives and finally all workmen.

It was with this in mind that we started some 3 months back, 2-day "Worker &

Productivity" programmes for Shop Representatives. Our idea was to cover all

200 shop-representatives within 10 programmes. I believe, so far we have completed

7 programmes and covered 140 shop representatives! Obviously we need a far more

enthusiastic response (from shop-foremen) in the ensuing programmes (refer

enclosure).

And very soon, we will have 3 lecture-halls for worker-education classes in place

of existing one hall -enabling us to conduct 3 batches simultaneously. (We do not

conduct any programmes during July-August-September - being our final quarter).

I do hope you will see the tremendous potential of educated workmen and compete, with

each other to see that maximum number of your departmental workers go through these

classes.

Circulation: DGMs, PMs/APMs, Personnel Managers/Officers

(All locations). Foremen & Asst. Foremen

POWAI LEVEL PRODUCTIVITY MEETING

May 19, 1985

M - 28

To:

All Production Managers

We shall have one in May, soon after Bonus negotiations are over.

In the meantime, I would request you to

1.Up-date your charts

(Yesterday I saw some prepared by KC-in multi-colours - which do look

better and seemed less cluttered-up to improve "focussing" and interest).

2.Hold your own unit-level meetings within next 15 days, if you did not have one in last 4

weeks.

H.C.PAREKH

WINNING BATTLES/ WINNING WARS

April 23,1985

M - 29

To:

Dear Colleague

I enclose herewith copies of two articles taken from the April 1985 issue of

"International Management".

Both articles deal with the matter of "change".

Ian Christian generalises about the resistance-to-change prevalent in the British

Industry and how Margaret Thatcher is pushing for the idea of "Survival of the Fittest"

under the conditions of free competition, In her grim battle on the question of closing of

unprofitable coal-pits, she seems to have won the first round and established the principle.

But winning battles is not the same thing as winning wars! -especially "wars of Ideology"

- ways of thinking and behaving which call for change of attitudes - on part of both

the Victor and the Vanquished.

And the first change in attitude is that there are no winners and no losers.! In a war

of ideology everyone must come out of a winner!

And this is what Hirashi Shinto (President) seems to be attempting at NTT - the giant

domestic telephone monopoly of Japan which becomes "privatized" this month. Very

aptly, the article calls it a "revolution in consciousness". And at one place the article says,

"In a Shinto-inspired cleanup and paper-saving drive, employees last year destroyed

6,600 tons of superfluous documents, emptying 940 file cabinets and lockers. They

have also been ordered to curtail their use of paper and photocopies, which last year

came to 1.2 billion sheets. That's worth $ 60 million and would reach almost 100

kilometres high if stacked".

Our own success at destroying 50 tons of superflous documents at Powai last

August, can at best be considered a "superficial" comparison between what seems to be

happening at NTT and what we are attempting at Powai.

As I carefully read and re-read the article, I got an impression that what NTT is

engaged in is changing the very organization - culture -and in the process involving all of

its 3,30,000 employees!

Let us hope, we too can find ways to involve all of our employees at Powai for

whatever change of culture we badly seem to need to usher us in the 21st century. And

let us further hope that those of us who do find such "ways" will go out and experiment,

and not allow frustrations to hamper their enthusiasm - because the worst bankrupt is the

man who has lost his enthusiasm.

CHANGING ORGANIZATION-CULTURE-THE INDIAN STYLE

May 2, 1985

M-30

To:

Dear Colleague

Last week I sent you an article which gave an account of the efforts of the Japanese

giant - NTT to change its organization-culture to suit its metamorphosis from a

"public-sector" monopoly to a "private-sector" competitor.

Desire to alter the culture of one's organization is however not a "monopoly" of the

Japanese! - nor a prerogative of giants! So, I am not surprised that such an

experiment is under way right at our door-steps, at RHL (Richardson Hindustan

Limited - the makers of Vicks Vaporub).

Whether one wants to agree or disagree with S.K. Bhattacharya (for saying, "RHL

is almost unique in Indian corporate history in that it has taken up the issue of

cultural change as a company project), the fact remains undeniable that there is

so much "freshness" and "innovation" in whatever RHL is attempting.

As I read the enclosed article again and again, it re-inforced my personal belief

that "right attitude" (whether on part of a manager, supervisor or a worker) is not

something you can "buy" at the corner .drug-store. Paying our employees high wages

and salaries and bonuses and perks is not a magic wand which you wave and presto,

employee-alienation gets instantly converted into employee-involvement.!

Any change and especially change involving "attitudes", is bound to be a slow-process,

full of ups and downs. And although I have no quarrel with the people who say that the

change must start at the "top" (and presumably proceed downwards ? ), I wish to

remind these people that in space there is no such thing as "top and bottom" or "upward

and downward".' Can we learn to disassociate "need for change" from the hierarchy and

the organization structure and the status and the designations and so on and so forth

and simply begin with ourselves (wherever we happen to be) and radiate whatever

happens to be our surroundings ?

Would anyone of you like to visit RHL - to pick up some of their radiation ?

OFFICE PRODUCTIVITY - PROJECT ASH

May 30, 1985

M-31

To:

Dy. Gen. Manager (Powai)

Mgr. (Facilities Planning)

Mgr. (Computer Centre)

Mgr. (Materials Control Dept.)

Please remember that "changes in hardware" must be accompanied by "changes in

Attitudes".

Now that DLP/UVR have approved EPABX, we must get thoroughly ready to release our

Foreign Purchase Orders (and local ones too) on the very day we receive capital

sanction for 1985-86. It must be simultaneous with the annual appropriation (i.e.

1st quarter) - even that is late!

And we must make the same presentation (DLP/UVR) to

ð Monthly Management Meeting ) Overcoming

ð L&T Officers & Sup. Assn. ) resistance

ð Other Managers ) to change

ð Powai level Productivity Comm.) in technology

ð Works Committee ) involving employees

between NOW and October 1985. This is a MUST.

IN-PLANT TRAINING OF LTIT STUDENTS

February 2, 1986

M-32

To:

Dear Mr.

At the outset, I wish to thank you for your interest in this matter and for attending a

meeting on this subject at LTIT on 10th January.

Personally to me, LTIT is an act of faith - an act of committment on part of L&T

Management. Through LTIT, we stand committed to improve the future of the children of

our employees and the future of L&T as a mini-society. What we are attempting is not

merely first-rate, future-oriented, industry-integrated, purposeful engineering education.

It is an experiment to bring-about a sea-change in work-ethics and attitudes. If we

succeed, this experiment can be duplicated at thousands of other institutions in India.

So we must succeed and that depends upon you and your colleagues.!

THE FISH, THE FROG & THE TORTOISE

February 12, 1986

M-33

To:

Dear Manager

In the "Tales from Panchatantra", there is a story about 3 friends, a fish, a frog and a

tortoise, all of whom stayed in a small pond. One year there were no rains and the pond

started drying-up. As soon as the fish realised this (it was the first one to reali se) it

slipped out of the small pond into a stream which flowed out and took shelter into a large

lake.

It took the frog somewhat longer to realise the danger when some children caught it in

the drying mud. But somehow it managed to escape from the hands of the kids and

slipped away into the stream.

The tortoise was the slowest - both in walking and in thinking; and did not realise

what was happening till the entire pond had dried up. He kept on roaming aimlessly on

the caked-up bottom of the pond wondering what had happened to his friends who were

not to be seen around.

If you wish to know what "naseeb" befell the tortoise, you must read the Panchatantra

yourself. On the other hand, you can always make a guess.

But to answer the question

"Could PEICO or BINNY have guessed their fate?"

You will need to, read the enclosed articles/news-items.

Which raises the next question,

"If we at L&T could forecast our fate, could we do something now to change it to our

liking?"

A RED FILM ! - WESTINGHOUSE'S CULTURAL REVOLUTION

March 12, 1986

M-34

To:

Dear Colleague

A new film is making rounds of Powai these days - a red film! It is titled "We learn from

the Japanese" - and describes experiences of few American companies in raising their

productivity by adopting some Japanese attitudes and values.

All those who have seen it are highly impressed with it. Those of you who would like to

see it and show it to your "associates" - (they don't call them "managers" or

"supervisors" or "workers" in Japan !) are welcome to borrow it from Mr. Inder Sethi (extn.

no. 451).

But before you screen this film, I would urge you to read the enclosed chapter from a

book titled WORKING SMARTER. Having read it, please circulate it to as many

"associates" of your department as you can. (This is because one of the companies

portrayed in the film is Westinghouse !.) And in case you feed inclined to read the entire

book, please phone my secretary - Cynthia (extn. no. 307) to loan it to you.

And at the end of it all, tell me,

"Shall we wait till "Employee participation in Management" becomes a bargainable issue

(or even worse - a legislated issue I ) kicking and cursing our way to the 21st century ?

Do we need a "Management-Circular" on the subject ?

OR

Shall we, already now, decide to share our powers of decision-making with our

"associates" when sharing still remains a pleasurable experience ?

P.S.:

In case you are on the look-out for a "model" of employeeparticipation,

how is the one shown on reverse of this page ? This model is being

recommended to all industries by the Productivity Board for Industrial Machinery (PBIM)

whose Chairman is Mr. N.M. Desai.

THE PAPER TIGER

April 7, 1986

M-35

To:

Dear Office-Colleague

Many years ago, China's Chairman Mao-tze-Dong called America, a "Paper Tiger".

By that he meant to tell the Chinese people that there was nothing to be afraid of

America - and that the Chinese were strong enough to "take care" of the imperialists.

If only Chairman Mao had got a chance to read the enclosed article which appeared in

"THE DAILY" newspaper sometime back, he might have changed his mind and called

India a "paper Tiger" ! And being a shrewd strategist that he was, instead of invading us

across the Himalayas, he would have simply gifted 1000 plain-paper copiers to the

Government of India and let the bureaucrats of New Delhi defeat the Indian Nation !

(Apparently they seem to be succeeding without any help from Mao ! )

What is happening nearer home - at Powai ?

A few months back, I was travelling with Mr. K.R. Sanghavi who told me the following

facts :

When KRS joined the company in 1970, there used to be 4 copies of SCN (Stores Credit

Note) - now there are 7 copies !

At that time Design Dept. used to issue 5 sets of manufacturing drawings to various

departments - now they are issuing 22 sets !

More statistically-oriented persons amongst you may derive satisfaction (1) from the

following data submitted to me by Mr. P.R. Kothari, on the subject of "Paper-explosion"

and I know that PRK is not alone in thinking that I am, perhaps, the worst culprit!

Paper consumption for the last 3 years

DESCRIPTION

UNIT

1982-83

QTY

1983-84

QTY

1984-85

QTY

1. SUNLIT BOND PAPER - A4 Pkt of 100 sheets 9997 11517 15125

2. MAPLITHO-A3 (cut sheets) " 760 2592 3080

3. MAPLITHO-A4 (cut sheets) " 8200 13190 23775

VALUE (RS.) 1,51,218 2,20,408 3,65,734

But I make amends by adding, at the bottom of my circulars.

"READ & THINK

DO NOT FILE

(FOR PRODUCTIVITY'S SAKE !)"

But those amongst you who are engineers will understand when I say,

"Information is like entropy"

Whenever there is a process in which energy gets converted from one form to another,

entropy increases.

This is even more true of "Information" ! Information simply cannot change hands

(or departments) without increasing '. - most of the time many-fold !!.

I found this out in my own, various departments, when we conducted a "Paper-

Destruction Drive" in September 1984.

We coughed-up (and destroyed) 50 Tons of obsolete/useless information!

And my group does not even have any manufacturing or marketing activity !

This reminds me of the Hindu trio of "Brahma, Vishnu and Mahesh" - the .-Creator, the

Preserver and the Destroyer. Most companies have an over-abundance of Brahmas and

Vishnus but very few Mahesh - when it comes to paper - work. If we can find only one

Mahesh in each of our departments, I am sure we may be able to shred 200 Tons of

unwanted papers (makes excellent packing material ! ) within the next 3 months !

And I don't think we should worry if the Chairman of Siemens was to call us a "paper-cat" !

PROJECT ASH

April 8, 1986

M-36

To:

Dear Mr.

If this sounds like Sherlock Holmes and you wish to know more about this project, drop

into my office next time you are in Bombay. Give me a few days’ notice.

In the meantime I am enclosing herewith a list of the topics on which 0&M Dept-Powai

have issued operating-procedures, over the past 15 years. Directly write to Mr. R.

Sarangan Powai, in case you wish to have a copy of any one of these. This is

accumulated wisdom of the organisation - the Software - represented by S in ASH!

Can you guess what A & H stand for?

ARE YOU A LOCAL GODFATHER ?

April 16, 1986

M-37

To:

Personnel Manager/Labour Officers

We have not met for some time now. So let us meet

on 12/5/86

at 3 p.m.

in C4 Conference Room

I expect you to make presentation on

1 ) Absenteeism

All of you had set target to reduce this by 1% (point) in your respective areas during

1985. How did you fare? Compare with 1984 and 1983 - month by month and also

total mandays lost for the whole year. Anything else you can think of on this subject.

Have a prior meeting to ensure identical basis of presentation.

What about descending order of "worst" cases & "best" cases? What about best

improvement cases and worst deterioration cases? What about various "disciplinary"

actions taken? What about "motivational" action taken?

2) Welfare

As local "god-fathers" (and god-mother!) what specific actions did you initiate whereby

employees could get a distinct impression that you are genuinely concerned about their

welfare? Can you cite examples? Did you do anything to get the foremen & managers

take similar interest? Did you visit the family of any workers at all, during 1985? In

what connection?

3) Productivity

Did you make it your "business" to find out the Order-position and shop-loading of your

department? Did you find—Out which departments' and which individuals'

performance- index (P.I.) is going up or down - and why? Did you meet and ask the

concerned foreman and the worker? Concern for people without a matching concern for

productivity is no good. Are you joining unit-level productivity- committee meetings?

4) Issues & Strategies for the EIGHTIES :

You have all read the "Personnel Strategies for the eighties". We have identified the

issues as well as the strategies to tackle those issues. We have talked about project WARM

Project ASH Project INFORMATION- SHARE Recruitment Freeze Automation Decentralisation

of Personnel Function - So on and so forth

We have even drawn-up specific "ACTION-PLANS ". These are displayed in my cabin - in

case you have not seen these! If you have not, please take copies and keep on your

cabin - partitions.

Have you done anything at all, to implement these? - or are you waiting for a "policydecision"

- a "management circular"?

5) Computerisation (local)

A beginning was to be made in the main office of PLA. PRL had drawn up a 12 month

schedule. Let us review the progress. When will we be ready to ask for a PC (micro) for -

main office? for east/west offices? What is your preparatory work/readiness? Have you

learned how to operate a PC? Perhaps you need to learn typing first !

6) BONUS !!

I WOULD LIKE TO ASK GINO / PARTICIPATIVE MANAGEMENT

May 5, 1986

M-38

To:

Dear Colleague

TRW is a big American Company. In Lawrence City (Kansas) it has a factory - Lawrence

Cable Division (LCD). It has only 130 employees - and no Union.TRW-LCD's General

Manager is Gino T. Strippoli. Some day, I would like to visit Lawrence - for two reasons :

(i) I spent 2 years in Lawrence - some 30 years ago - doing my post-graduation in

engineering. I would like to see if the place has changed!

(ii) I would like to ask Gino,

How have you managed to get your employees to -"train new members, appraise their

performance and recommend who should get raises (increments)?"

If you wish to find out more about how hundreds of Ginos in America are getting their

employees involved in taking "managerial decisions" (and freeing themselves to take

"entrepreneural decisions"), I recommend you read the book,

"Working Smarter".

The enclosed chapter "When Workers Manage Themselves" is meant to arouse your

curiosity!

And although, we may not be quite ready as yet to let the employees at L&T decide

their own annual bonus ( - I mean 'ex-gratia') I do not see much of an option to

employee participation, in hundreds of day-to-day shop-floor (and office -floor)

decisions.

On the other hand, shall one practice

should it become an act-of-faith?

employee-participation for lack of an option? Or

A NON-PRODUCTIVE MACHINE ?

July 28, 1986

M – 39

To:

Dear Department-Head

In one corner of the worker's Lunch-room (LR -3) in Powai West, stands a box-like

structure. At first glance it looks like a steel cabinet for storing grains - (what else could

you store in a canteen?).

But a closer look reveals that it has a 3' X 2' frosted-glass screen, with a slide-projector

housed inside.

And, of all the things, it stores information !

On the 22nd of this month, our Chairman, Mr. N.M. Desai came to my cabin and said,

"Let us go and have lunch in the worker's lunch-room today".

During lunch, I pointed out the slide-projector to Mr. Desai and said, "During lunch-period,

we propose to show to the diners, slides on

- Productivity (always first on my list! )

- Safety

- Housekeeping

- Absenteeism

- Suggestion-Scheme, etc. etc.

In brief, we propose using this machine for sharing with our employees, all kinds of

information about the company's operations.

This projector-machine is going to be the chief instrument of our Project Information

Share, because, I believe an informed employee makes a better employee. We will

soon have a similar machine in Powai-East worker's lunch-room and next year install

similar machines in LR - 2".

While appreciating the idea behind the project, Mr. Desai added,

" I agree. Sharing information about the company is a good idea, and using lunch-break

for this purpose may also be a good idea but how about using your machine for a little

entertainment as well ?"

I had to agree that this was an even better idea !.

So next day, I handed over. to Inder Sethi (extn: 451), some colour -slides which I had

brought during my last visit to Europe and U.S.A.

With economy-drive (and things to follow !) we must confine our sight -seeing to colourslides

at the lunch-table!

So I approach you with a request. If you have any information, about -your

departmental operations that you would like to share with employees - at - large, please

rush it to me-in the form of tabulations, graphs, pie-charts, etc. We will make a 35mm

slide out of it, mention your name on the slide as the "Source" and display it on

our "information-machine". Tell us about the positive-trends which you want

accelerated, and the negative trends which you want reversed. Give a 3/5 word message

to inscribe on the slide.

And you are welcome to send your sight-seeing slides as well -(these, of course, we will

return to you in due course).

An unproductive machine ?

A TALE OF TWO MANAGERS

August 16, 1986

M-40

To:

Dear Manager

TALE NO. I

What kind of managers are proving successful these days in America ?

One such manager is Rene Mcpherson - Chairman of Dana Corporation - who retired in

1979, after spending 12 years as Dana's top executive.

During this period,

-Dana's sales went up by 500 %.

-Earning per share went up by 15% every year.

-Productivity doubled (after adjusting for inflation).

And how did Rene manage this ?

By some beliefs and some actions.

Let us look at his ACTIONS first :

-Eliminated 350 (out of 500) staff jobs at the headquarters.

-Scrapped a 17" thick operating manual and replaced it with a one-page policy statement.

-Constantly asked machine-operators and assembly-line workers for opinions and

suggestions.

-Abolished time-clocks.

-Encouraged employees to establish their own production-goals.

-Set-up a "Stock participation plan" (similar to our own Employee Convertible Debenture

plan).

-Asked managers to meet employees in person rather than sending memos.

-Established "Dana University" - an ambitious in-house training programme for those

who wished to move up.

-Introduced SCANLON PLAN in which both workers and management receive—

substantial bonuses if they come-up with ways to increase production without raising

payroll costs.

-Shared information with the workers about plant profits (for which he sometimes got

into trouble with this bosses ! ).

Now let us look at his BELIEFS - in his own words :

-"It is not that I am against tradition. I just don't think tradition works well if you have

got problems. If everything is great, tradition is super".

-"If you don't have the foot-soldier with you, you are not going to win the damned

battle".

-"I tried to spend a lot of time out on the shop-floor, because that is where the action is".

-"Just because these people (workers)don't have a necktie and a white shirt, it does not

mean they are not bright - because they are brighter than hell!".

- (About SCANLON - PLAN)

"I pushed and I sold and I wheedled and I connived and I black- mailed, but I would not

tell somebody,

You, by God, are going to do it! That is no way to do anything.

it on it's merits, and you know it is not going to work".

Then you have not sold

(He never imposed the plan, but scrupulously observed the requirement that 70% of a

plant's work-force had to approve it).

A consultant had this to say about Mcpherson,

"He brought Japanese-style management to DANA before most people knew what that

was".

SOURCE: FORTUNE - APRIL 14, 1986

TALE NO. 2

Do you remember the sign of "ESSO" on our petrol-pumps many years ago? In India,

ESSO company was taken over by our government. But in America it continues under a

new name -EXXON.

I am not sure, but it is perhaps the biggest company in the whole world. During last 12

months, it's sales was $ 88 billion (to convert into rupees that would mean Rs. 105600

crores). And it made a net profit of $ 4.9 billion - about 5.6% of sales.

But EXXON's president Rawl is a worried man these days because, compared to last

year this year's sales has come down by 4% and the net profit has come down by 12% !

So what does he do ?

-Cut down capital expenditure from $ 11 billion to $ 8 billion.

-Combine six subsidiary companies into one.

-Cut down layers of middle managers.

In Rawl's own words, .

" I am bottom-line oriented. I look at the revenues, and then I look at everything that

comes in between. When I find something that looks a little bit soft, I take a hard look.

When the good times are rolling, you can ignore some of that stuff. But when times get

difficult, you have got to do something. In fact you should do it anyway. That's

management. That's what shareholders pay us for. prospect of shaking-up people does

not rattle me".

And these words are shaking EXXON's 145000 employees all over the world into working

harder and longer.

SOURCE: FORTUNE - APRIL 14, 1986

A NEW CORPORATE WORLD

August 14, 1986

M-41

To:

Dear Department-Head

Rosabeth Mose Kanter, in her book, "The Change Masters", writes:

"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?

LEARNING - FROM OURSELVES

November 07, 1986

M-43

To:

Dear Mr.

In June/July this year, I invited you to see the film "People & Productivity : We Learn

from the Japanese". After viewing the film', we wrote down on the black-board

- what we SAW in the film

- what we HEARD in the film

Thereafter, each one of you decided (and told the group) what you will do in your own

work-environment during the next 3 months to

- improve housekeeping

- or improve efficiency

- or improve productivity

- or improve human-relations, etc., etc.

We also decided that, after a few months, we will meet again to exchange notes

experimentation. We will tell others, if we think

- on our

- we succeeded (and why)

- we failed (and why)

so that we may learn from ourselves - from each other. I now invite you to come and share

your experience

I am rearranging the invitees as per Gr. II/Gr.III/GR.IV/PGM

(25) / (50) / (20) / (43)

I am also inviting the concerned managers to join us and help us with the next phase of

Project MOTIVATION

ABSENTEEISM

November 11, 1986

M-44

To:

Personnel Officers (Labour Dept)

When year ended on 30th Sept., we hope, the production people must have reached their

targets. But for absenteeism control (reduction), you have time till end December to

achieve your targets! And I hope you are all working very very hard, with less than 2

months to go !

If I remember correctly you achieved 0.8% reduction in 1985 (1.6% for P -PACK), and

you had set a target of another 0.8% reduction in 1986.

We will meet in Jan' 87 (3 p.m. on 9.1.87 - C4 conf. room) to review. Each of you will

make a quick, identical presentation - and also reveal your target & action plan for

1987. Have we reached a stage of "participation" where we can invite Union - office

bearers to this meeting ?

PROJECT WARM

November 17, 1986

M - 45

To:

All Personnel Officers (Powai + Madh)

Do Personnel Officers have any role to play in the Project WARM ?

Of course, that would depend upon your knowledge of

- What is PROJECT WARM

- What is it trying to accomplish

Considering that the project was first announced as far back as March 1980, these may

seem like silly questions !. But if you don't know, don't feel shy to come and ask me.

Feeling shy is worse than feeling silly!

One look at the ACTION-PLANS, framed on the walls of my cabin, would be sufficient

to answer these questions. But you are always welcome to join me for lunch (check

with Cynthia one day in advance) and seek further clarifications.

But the more important question is:

"What is your role in this project as a Personnel Officer?"

That, I am afraid, I cannot answer ! You must answer that yourself.

Your 'role' is what you make it out to be. You alone can decide the depth of your

involvement. You could choose to be a passive bystander or you could choose to play

the centre-field: It is all up to YOU !!

When we meet on 9-1-87 at 3 pm, I would like each one of you to tell me

- to what extent you have decided to get involved personally

- What "specific" action-plan you have drawn-up for

yourself, to follow during 1987 (New-Year's Resolution .! ).

In the meantime, if you have not already seen the film "People and Productivity : We

learn from the Japanese", I suggest you do.

THE LEGEND OF MATSUSHITA

November 18, 1986

M-46

To:

Dear Colleagues

On 10th & 11th October, 1986, I attended a PHP Seminar on,

HUMAN RESOURCE MANAGEMENT - PHILOSOPHY & PRACTICE OF KONOSUKE

MATSUSHITA"

(Founder of Matsushita Electric Industrial Co. Ltd., Japan)

PHP Institute was founded by Konosuke Matsushita and stands for Peace, Harmony,

Prosperity.

At the age of 92 years, Konosuke himself still takes keen interest in the working of the

institute I He does not have much time or energy now for directing the operations of the

Yen 5 Trillion (Rs. 4,190 Crores) Matsushita empire, employing over 1,00,000

employees world-wide in 178 companies - an empire which he started as a small

company 68 years ago !

But Konosuke's Human Resource Development philosophy still pervades the entire

organisation.

One member of Matsushita organisation is located in Baroda and known as Lakhanpal

National Limited (LNL). Employing around 700 persons, LNL was set up in 1973 to

manufacture dry-celi-batteries, under the brand name "NOVINO".

In the October Seminar, Mr. Ono, the Joint Managing Director of LNL read a paper

describing how LNL has set-about transplanting the Matsushita Philosophy on the Indian

soil -and in a limited manner proving that,

"Human nature is same all around the world and what motivates a Japanese worker

also - and equally -motivates an Indian Worker".

If you wish to find out "what", please read the enclosed paper of Mr. Ono.

Encl:

Application Of K.Matsuseita's Management Philosophy

On Human Resource Development In India

Hajime Ono

Loint Managing Director

Lokhanpal National Ltd.

Firstly, I Would Like To Thank XAL Human Growth Centre And The PHP, For Having Given

This Opportunity To Speak Before You.

Brief History

I Would Like To Begin By Briefly Discussing About Our Company's Growth Since Its

Inception. Our Company, Lakhanpal National Limited, Started Production Of Dry Cell

Batteries In July 1973 At Baroda. It Was In The Year 1969, That Our Late Prime Minister,

Mrs. Indira Gandhi, Visited Japan. While There She Visited The Head Office And One Of The

Factories Of Matsushita Electric Industrial Company Limited And Also Met Its Founder Mr.

Konosuke Matsushita. She Was Greatly Impressed By Mr. Matsushita's Business Principles

And His Philosophy During Her Visit There. It Was Her Enthusiasm That Prompted Mr.

Konosuke Matsushita To Provide Technical Assistance And Cooperation In India.

It Was In The Year 1971, When Late Mr. D.D. Lakhanpal (Founder Of Murphy India Limited)

Obtained An Industrial Licence For Manufacturing Dry Cell Batteries. He Was In The Process

Of Evaluating Various Prospective Partners To Get The Technical Assistance, When He Came

Across M/S Matsushita Electric Industrial Company Limited (MEI) Of Japan. The Late Mr.

D.D. Lakhanpal Very Much Appreciated The Business Philosophy Of MEI, And In Return MEI

Also Thought Highly Of His Ideas And Thoughts As An Industrialist.

The Project Was Conceived At The Time Of Bangladesh War, When Long Spells Of Blackouts

In The Country Led To An Acute Shortage Of Dry Cell Batteries, And Turned Battery Markets

Into A Sellers Paradise. This Temporary Boom Was Reflected In The Project Report,

Envisaging 100% Capacity Utilisation In 3 Years Time. But It Was Too Optimistic To Be

True. Very Soon The War Boom Was Over And We Faced Stiff Competition In The Existing

Market. Factory Construction At Baroda Finally Began In August 1972.

'NOVINO' — An Unknown Trade Mark

During That Time In India It Was Not Possible To Register 'National' As A Trademark.

Moreover, Use Of Foreign Trademarks Was Also Not Allowed. Under Circumstances, The

Company Decided To Use 'NOVINO' As Its Trademark.

Another Company Of MEI In India, I.E. M/S Indo National Limited, Also Started Under

Similar Circumstances. In Other Countries MEI Established Factories As Joint

Venture Or Wholly-Owned Subsidiaries, Sometime After Products Had Already Been

Marketed In Those Countries Under The 'National' Label. Thus There Was Already A Strong

Market Channel And Brand Awareness Existing In Those Countries. In India, However, Due

To Severe Restrictions On The Importation Of Electric Goods, 'National' Products Were Not

Normally Available In The Market Place, Although Many People In Urban Areas Knew About

'National' And 'Panasonic' Products Since These Were Available As Smuggled Goods. Yet

We Could Not Take Advantage Of These Well Known Brand Names And Had To Start With

An Unknown And New Brand Name 'NOVINO'.

Duster — An Important Tool For A Salesman

Other Than The Installation Team, Four People Were Dispatched From MEI-Japan For A

Period Of 2-4 Years. One Of These Persons Was Responsible For Market Development. This

Sales Engineer Went To All Parts Of The Country And Visited Shops Personally, Explaining

The Finer Points Of Our Product. During His Shop To Shop Visits, He Would Introduce

Himself First And Then Start Service. He Would First Try To 'Sell' Himself Instead Of The

Product, Cleaning The Counters In Shops And Rearranging Products For Better Display. This

Act Of Courtesy And Service To The Retailer Set An Example For The Indian Staff Members

Who Always Accompanied Him. Even Today He Is Remembered Fondly By All Concerned.

For Sales People This Is The Most Effective And Essential Part Of Personnel Training. It Is

Said That Our Salesmen's Most Important Tool Is A 'Duster'.

Quick Implementation Of The Project

The Factory Started Commercial Production And Put The First Consignment On The Market

Within A Year Of The Stone Laying Ceremony, I.E. In August 1972, A Remarkable

Achievement Which Gained The Respect Of Everyone In The Community.

Initial Difficulties But No 'Lay Off'

Even Though Production Started Smoothly, Sales Did Not Expand According To The

Planned Projections. We Had To Face The Giants Of The Industry Of That Time, Many Of

Whom Had A Large Market Share And A Long History In The Marketing Of Dry Cell

Batteries.

Moreover, The Oil Crisis Caused A Dramatic Downturn In The World Economy In The Year

1974. The Battery Industry In India Also Had To Face A Very Tough Time. Consumption Of

Batteries Declined Constantly For A Period Of 3 Years, And. It Took Nearly 5 Years To

Return To 1973 Levels.

In May 1974, We Produced Only 30,000 Pcs., A Scant 2-Hours Worth Of Production.

The Future Looked Bleak And Uncertain, But We Knew We Had To Think Of Ways To Avoid

Layoffs, As Layoffs Would Affect The Employees And Their Families Most Adversely. Despite

The Scorching Heat In The Month Of May, Everyone Went All Out To Do What They Could To

Improve The Situation. Our Female Employees Carried 2 Boxes Of Batteries, Weighing

About 5 Kgs. Each From House To House In Town To Sell Them. Routes Were Organised

Dally In Different Parts Of The Town. On The Other Hand, Our Male Employees, Worked

Hard On The Open Space In The Factory Premises. They Levelled Off The Uneven Ground,

Laid Down A Lawn And Constructed A Guard Room At The Factory Entrance.

During Those Difficult Days, Our People Had To Bear Up Under Pressures From The Outside

Community As Well. Our Factory Is Situated At N.H. No. 8 And While Our People Were

Digging Or Levelling Land, Passerby Made Taunting And Sometimes Abusive Remarks. But

Such Remarks Were Ignored By Our Employees Who All Continued To Work As A Team,

With No Distinction Of-Class Or Status. We Discovered An Immense Joy In Pooling Our

Efforts To Complete— These Tasks Inspite Of The Hardships. This Was A Most Valuable

Learning Experience For All Of Us.

If My Memory Serves Me Well, It Was' In May 1973 That Our Machines Were Installed. May

Being The Hottest Month, It Was Hard To Cope With Heat At First. During The First 3-6

Months Six People Came From Japan To Install The Machines And To Teach And Train Our

Staff Members. They Took The Lead In Doing The Actual Work And Spared No Effort To

Educate Our People. The Majority Of Our People In Charge Of Various Functional Areas

Today Are Those Who Worked Along With The Installation Team During Those Days. I Still

Remember Clearly The Greasy Black Hands And Uniforms Of These People After A Day's

Hard Work.

Language Barrier

One Of The Problems We Faced At That Time Was That The Installation Team Could

Converse In Japanese Only A Language Which Was Not Understood By Local Staff Members.

This Made Communication Very Difficult. Moreover, This Also Created Many

Misunderstandings With The Local Staff Members. The Japanese Installation Team Applied

All Its Energy To Discover Ways To Make The Job Easier And To Impart The Basic

Knowledge Of Dry Cell Manufacture To Everyone. They Concentrated On This Even After

Returning Home, Which Was Usually Always After 8 Or 9 At Night. Their Nights Were

Always Utilised For Planning Job For The Next Day.

Indian Industrial Culture —

A Different Experience

Before We Came To India, We Were Told That People In India Want To Return To Their

Homes Immediately After Work. During My Visit To India Before The Start Of Lakhanpal

National Limited I Was Myself Very Much Surprised To See Employees In Other Factories

Assembled At The Gate, Waiting For The Siren To Sound So They Could Go Hone.

We Were Also Told That In Many Industries The Persons In Charge Of Manufacturing Even

Hesitate To Personally Go To The Shop-Floors. However, In Lakhanpal National Our

Experience Was Different. Whenever It Was Necessary Our People Worked Overtime, Even

Overnight, Without Problems Erupting Between Supervisory Personnel And Shop-Floor

Workers.

Self Discipline

The Responsibility For The Discipline Of Employees In Any Company Rests, I Believe, With

The Management Team.

Since Its Inception Our Company Has Put A Lot Of Emphasis On Discipline. In My Opinion

The First Aspect Of Discipline Is Punctuality. In Our Factory, The First Shift And The General

Shift Begin At 8 O'clock In The Morning. Only In Rare Instances Is A Person Late For Work.

Most Of Our People In The Managerial Cadre, Come At Least 20 Minutes Before The Starting

Time.This Sort Of Practice, Develops An Eagerness Among The Employees To Follow The

Example Of Their Seniors To Work With Discipline. Referring Back To My Earlier Talk About

Developing The Lawn On The Factory Grounds By Our Own Employees, I Would Like To

Emphasise That This Was Possible Only Because The Supervisors Themselves Took A Great

Interest In These Tasks And Set An Example For The Others By Taking The Lead In Doing

The Actual Work.

During Those Days, Even Our Staff Members In The Office, Took The Lead In Doing The

Cleaning. They Always Looked After Their Own Work Space And Kept It Clean By

Themselves. Even The Chief Executive Of Our Factory Used A

Broom, To Clean His Work Space. Today With The Increase In Common Space, Janitorlal

Service Is Provided But The Spirit Of Looking After One's Own Work Space Remains.

We At Lakhanpal National Limited Do Not Believe That Cleaning Is A Low Cadre Job And

Hence. Should Be Performed Only By A Particular Segment Of Society. We Strongly Believe

That Cleanliness Is Necessary To Ensure Good Quality And Efficiency. It Is Hence Very

Important That Every One Cleans His Own Machine And His Own Working Area. This

Creates A Feeling Of Pride In One's Job, One's Tools, One's Work Place, And The Company

As A Whole.

In Our Factory Today, The Operators On The Shop Floor All Clean Their Own Machines And

Work Places Even In Our Office; We Do Not Have 'Menials ', Whose Only Job Is To Carry

Files And Documents Around. The Staff Members Themselves Do These Tasks. Even

Seniors And Supervisors Go Around To Deliver Papers And Files Whenever Necessary.

This System Helps To Improve Communication Within Various Departments And Also

Enhances One's Understanding And Knowledge Regarding The Working Of Other Supporting

Departments. Moreover, We Do Not Have Separate Cubicles In Our Offices For Managers.

Every One Works In The Open Office Without Invidious Distinctions Based On Status Or

Type Of Work.

This Helps To Achieve Better Co-Ordination And Understanding Amongst Various

Departments Because Every One Is Familiar With Conditions In All Parts Of The

Company

When An Employee Makes A Mistake, Except Those Of A Very Confidential Or Sensitive

Nature, He Is Corrected By His Superior In The Open Office In The Presence Of His

Colleagues. This System Helps All The Other Members In The Office To Be Careful And

Avoid Similar Mistakes, Thus Serving As A Method Of Indirect Instruction.

"Management By All Employees"

Our Company, Since Its Beginning, Has Professed To Have A System Of Full Participatory

Management Or "Management By All Employees." This, However, Docs Not Mean That An

Employee Is Free To Say Anything He Likes To The Managment. He Must Act And Think

Within The Framework Of The Declared Direction And Policy Of Management.

There Is Little Merit In Merely Criticising A Particular Decision Or A Duty One Has To Perform

In His Organisation, And Less In Simply Reporting That A Problem Exists. Criticism And

Reporting Must Be Combined With Suggestions To Solve Problems To Be Meaningful. But

For This To Happen. It Is Very Important That Everyone In The Organisation Be Aware Of

Current Conditions In The Company And The Business Environment. Regular 'Manager

Meetings', 'Engineer Meetings' Etc. Provide Our Senior Executives With Opportunities To Get

A Clear Grasp Of The Status Of Corporate Operations.

Morning Assembly

Another Feature Of Our Company Is The Daily Morning Assembly Which Begins With

Recitation Of The Seven Corporate Objectives By All Employees In Unison.

Through The Morning Assembly Each Employee Reaffirms His Commitment To The Company

And Its Objectives Before Each Day's Work. This Morning Assembly Also Becomes A. Forum

For Communication, Where Different Views Are Exchanged And One Gets To Know About

The Activities Of Other Sections Or Departments. Since Any Individual Employee Can Come

Forward In The Assembly And Speak, The Sense Of Community And Solidarity Is

Enchanced.

Furthermore, The Monthly Production And Sales Results Along With Plans For The Coming

Month Are Also Announced In The Morning Assembly. 'This Helps To

Improve Communication Since All Employees Come To Know About The Company's

Performance In Production And Sales Well Before The Annual Report Is Published.

In Many Business Circles It Is Said That Details Of Corporate Performance Are Privileged

Information, And Should Not Be Disclosed To The Work Force. But According To Our Policy,

An Employee, Being Part Of The Management, Has To Know The Company's Record And

Future Plans, For Our Policy Of "Management By All Employees" To Be Effective.—Without

Making Available This Kind Of Information, It Would Be Meaningless To Speak Of "Full

Participatory Management".—

Policy Announcements

Every Year, On The 26th Of January, We Announce The Company's New Annual Policy To All

Employees. Details Of The Year's Target With Regard To Production, Sales, Efficiency And

Other Areas Are Made Known To The Employees. A Review Of The Previous Year Is Also

Announced.

It Is After The Annual Policy Announcement That Each Department Prepares Its Own Plan In

The Light Of The General Policy. The Company Does Not Believe In Keeping Secrets From

Its Own Employees.

This Policy Announcement Day Coincides With Company Day, When Employees Who Have

Served The Company For Long Periods And Those Bearing Good Records In Attendance

During The Previous Year Are Commended And Presented Momentos.

Novino Family

In Our Company, We Often Use The Word 'Family'. Once, Our Employees Even Formed

'Novino Family Union' And Hence The Word "FAMILY" Is Very Much Familiar To All Of Us At

Lakhanpal National Limited.

How Would One Define A Family ?

We Understand That A Family Means A Group Of People Bound Together By Relations Of

Unquestioned Trust And Confidence, Like The Relation Shared Between Parents With Their

Own Children Or A Child With His Own Brother Or Sister. Similarly, Management Has, Or

Should Have This Trusting Relationship With Its Own Employees. That Is What We Mean By

A Corporate Family. Now When We Emphasise Trust And Treat Our Employees Like Family

Members, How Could We Keep Any Secrets From Them? Hence Even Sensitive Information

Like The Latest Production And Sales Figures Is Disclosed To All Employees.

It Is Due To This Relationship That We Do Not Suspect Our Employee Going Out Of The

Factory Premises After Day's Work And Hence, We Do Not Have A "Body-Check" System At

The Factory Gate. We Have Yet To Come Across Incidents Of Employee Taking Away

Factory Property Even Though The Practice Of Free Passage Has Been Inexistence For The

Last 14 Years.

Neither Do We Have The Time-Card Scheme, Wherein An Employee Records The Time He

Reports For Work. We Have A System Where One Simply Places His Card Into An "In Box"

For His Department. This Too Has Not Created Any Problems For Us.

Our Company Has Adopted Several Control Systems, Not For The Sake Of Taking Precaution

Against Error But To Ensure The Maximum Utilisation Of All Social Assets — People, Money

And Many Other Things - Which Are Entrusted To It By Society. To Give An Example, In

Each Phase Of The Productions Process Our Operators Keep Records, And Check The

Quantity Of Raw Materials And Components To Be Used As Well As The Finished Products

And The Unused Raw Materials And Components At The End Of A Work Cycle. Every Month

A Physical Inventory Check Is Conducted By The Accounts Department Which Immediately

Prepares A Full Report. The Inventory Check, Therefore, Should Be Seen As A Way Of

Making The Fullest Use Of Resources Entrusted To The Company From Society, By Clearly

Stating The Results Of The Previous Month's Activity And Providing Necessary Information

For An Action Plan For The Next Month ; And Not As A System For Preventing Mischiefs On

The Part Of Employees.

Due To Such Practices, Presently Our Material Loss Is Less 0.5%, And Efficiency, Over 90%

Q.C. Circles — Suggestion Schemes

Recently, There Has Been A Boom In Schemes For Promoting Employee Suggestions And

Q.C. Clicles. In Our Company This Year We Are Working On 23 Circles, Some Of Which

Operate In Non-Production Departments, Such As The Personnel, Accounts, Etc. As For

Suggestions, We Received On An Average Of 3.2 Suggestions Per Employee Last Year. The

Most Important Factor In The Success Of All These Activities Is Top Management's Zeal,

Active Participation And Encouragement To Employees.

Success In Developing Q.C. Circles Or Suggestion Schemes Cannot Be Achieved Through

Mere Imitation Of Form. Instituting Structures And Procedures Without Securing Employee

Cooperation May Actually Make The Employees Lose Their Enthusiasm For Their Work.

Because Our Activity In These Fields Is In Its Initial Stages, I Feel That, Instead Of Asking

Employees For Immediate Results, We Should Strive For Still

Greater Participation By Employees, And Make Sure They Have The Active Support And

Encouragement Of To? Management. This Alone Will Lead To ""Full Participatory'

Management And The Benefits Thereof.

Communication With Our Employees' Families

Another Important Aspect Of Communication Is With Our Employees' Families. We Have A

House Journal — 'NOVINO DARSHAN' — Which Is Published And Circulated To All

Employees Once Every Quarter. This Helps In Regularly Communicating Information About

The Activities And Performance Of The Company To The Family Members Of Our Employees.

In Addition, The Company Organises A Cultural Programme And The Sports Meet Once

Every Year In Which All Employees Participate And Enjoy Together With Their Families.

Due To A Lack Of Space It Is Not Possible For Us To Invite As Many People As We Would

Like, But Nonetheless Around 3000 Persons Normally Attend These Functions Every Year.

Home Visits

Sometimes We Find That An Employee Is Forced To Take A Long Leave From Work Because

He Has Taken Ill Or Because There Has Been An Unexpected Calanity In His Home. In These

Circumstances, His Superior Makes 'It A Point To Visit The Employee's House To Meet With

And To Cheer Up Him And His Family. Except When I Have Very Tight Schedule, I Also Go

Along On Such Visits. There Is No Rule In Our Company With Regard To This System. Our

Senior Executive And Managers Arrange These Visits Voluntarily As They Consider An

Employee A Part Of 'NOVINO FAMILY'. This System Helps In Developing A Much Better

Understanding Between Management And The Work Force.

There Are No Barriers Separating Employees According To Grade Or Rank, And Maximum

Effort Is Made To See That There Is Free And Frank Communication Among All The Members

Of The 'NOVINO FAMILY'.

Open Door Policy

I Am The Only One Who Has A Private Office, But Even So My Door Is Always Open To All.

Our Canteen, The Bath Rooms, Etc. Are For The Use Of Everyone. There Is No Special Place

Reserved For The Special Few. All Employees, Including Myself Eat The Same Lunch In The

Same Canteen.

In Our Factory All Employees From The Top Executives To The Lowest Rank Of Employees,

Male And Female, Wear Uniforms.

During The Early Days, Many Of Our Employees, Particularly Females Had Many

Reservations About Wearing The Uniforms. But Now The Situation Has Changed. Even

Though Changing Rooms Are Provided In The Factory, It Is A Common Site Now To See

Employees Coming To And Returning From The Factory In Their Uniforms.

When All Employees Wear A Uniform Identical In Quality And Design They Have A Greater

Sense Of Equality And Mutual Understanding.

Of Course There Has To Be A Clear Cut Distinction Between People With Respect To Their

Responsibilities In The Organisation, But There Cannot Be Any Sort Of Distinctions Made

Among Them As Far As Their Humanity Is Concerned. This Is A Fundamental Principle Of

Our Corporate Philosophy And Management Style. One Example In This Regard Is The

Yearly Picnic Which Is Organised Among Our Departments. All Employees Go To A

Particular Picnic Place, Use The Same Transport, Sing And Play Together And Share The

Same Food. In Short, Every One Enjoys The Festivities Together And Without

Discrimination.

This Helps In Strengthening The Relations Between The Members Of Our "NOVINO FAMILY'.

Without A Strong Bond Of Truly Human Relationships, People Tend To Become Stiff And

Unable To Cooperate With The Natural Flexibility Needed To Produce Good Results.

Our Ultimate Aim Is That All Of Us Should Work Together Until Our Retirement To Create A

Bright And Fulfilling Place To Work That We Can Proudly Bequeath To The Coming

Generation.

National Service Through Industry

Our First Corporate Objective Is 'National Service Through Industry'. This Does Not Mean

That Our Sole Concern Is To Increase Sales. Our Primary Goal Is To Have Our Work

Recognised By Society. If Society Accepts Our Work We Are Sure To Receive A Reward

From It In The Form Of Reasonable Profit.

In Turn, This Profit Allows Us To Show Our Gratitude And Make A Positive Contribution To

Our Society. We Are Proud To Pay Our Fair Share Of Taxes, For This Is One Way Which We

Can Demonstrate Our Gratitude To The Society In Which We Operate. Moreover, We

Believe In Doing Our Best To Contribute To The Society In Other Ways. You All Must Be

Aware Of Last Year's Drought In Several Parts Of India. The Management Was Approached

By Our Employees, Stockholders And Distributors Who Asked Us To Help The People

Affected. We Then Decided To Supply Water To The Drought-Stricken Citizens From Late

March Until Monsoon Set In. We Did This Because We Are Members Of This Society, And

Because We Realise That For A Society To Prosper Each Member Must Be Willing To Help

Others In Time Of Need.

What I Want To Stress Here Is That Timing Is Also Very Important. Of Course, Huge Sum

Of Money And Other Articles Are Required In Order To Help Those In Drought-Effected

Areas. But Main Point Is To Get Them As Much Help As Possible In The Time Of Their

Greatest Need. Realising That After The Rain Start It Would Be Of No Use To Carry Water

To Those Areas, We Undertook To Do What We Could To Supply Water To Them.

We Didn't Undertake This Action Because Of Any Reward, But Were Gratified . Beyond All

Expectations By The Enthusiastic Appreciation It Received.

Employees Training

In Our Company We Emphasise "On-The-Job-Training" For The New Employee. However,

Because Of A Dramatic Increase In Business Around The Year 1979, The Number Of

Employees Too Increased Sharply. Accordingly We Felt That 'OJT' Alone Would Not Be

Sufficient And That We Must Have A More Systematic And Organised Training System. With

This In Mind, We Are Planning To Establish A Full-Fledged Training Centre For The

Employees. When A New Employee Is Recruited In Our Company, His Initiation Is

Conducted By The Chief Executive Himself, Who Personally Informs Him About The

Company Policy. Another Avenue For The Employee Training Is 'Off-The-Job Training'.

Opportunities For Such Training Are Made Available On An Average Once A Month.

Our Promotion Policy Is To Encourage Promotions From Within The Organisation. Once An

Employee Is Identified For Promotion, He Has To Select A Project Theme On Which He Is To

Work Throughout The Year.

During The Course Of The Year, He Makes Two Or Three Interim Presentations To A Team

Of Senior Executives To Get Further Suggestion And Guidance. After The Final Presentation,

If He Is Judged Suitable, He Is Promoted To The Next Grade.We Call This Scheme The

'Self-Development Scheme.—

The Important Aspect Of The 'Self-Development 'Scheme' Is That It Requires The

Employees To Identify A Problem In His Own Area Of Work, Analyse It In Detail And Make

Their Best Efforts To Solve The Problem By Taking A Systematic Approach. In Order To

Achieve His Goal Within The Prescribed Time

Limit, The Candidate Has To Make An All-Out Effort. The Candidate Who Successfully

Completes This Course Develops A Special Capability To Tackle Any Problem In A Very

Systematic Way.

In The Early Days, Since Our Total Strength Was Less, It Was Possible For Our Senior

Executives And Managers To Train The Subordinates Directly Under Them. However, Now

With The Expansion Of Our Business The Work Force Has Increased And We Are Also

Dealing With Much Higher Number Of Outsiders. Thus Direct Communications Between Our

Managers And Non-Supervisory Personnel Has Declined.

From The Point Of View Of Personal Development. It Is Not Enough For An Employee To Just

Pass Through The 'Self-Development Scheme'. We Also Feel It Important To Emphasise The

Development Of The Individual As A Human Being.

This We Want To Achieve By Establishing Our Own 'Training Centre' And Conducting

Several Educational Programmes.

Thus Far I Have Spoken To You About Our Daily Activities And Training Facilities. I Hope

This Will Serve As A Fruitful Basis For Discussion. We Realise That Many Improvements

Could Be Made In Our Programmes And Their Implementation, And Would Welcome Any

Suggestions You Might Have.

Our Slogan This Year Is 'Create The Future By Strong Follow Up'. A Plan May Be Excellent

But Until And Unless It Is Followed Up With Perserverance It Will Not Achieve Its Goal. In

Fact The Leader Of The Organisation Or Section That Should Have Strongest Drive To

'Follow Up' And See That Plans Are Implemented.

In Conclusion, I Would Like To Extend My Sincere Thanks To All Of You For Your Patient

Attention To My Description Of Our Experience At 'Lakhanpal National '.

Thank You

Basic Business Principle Of Lakhanpal National Limited:

To Recognise Our Responsibilities As Industrialists, To Foster Progress And To Promote The

General Welfare Of Society, And To Devote Ourselves To The Further Development Of World

Culture.

Basic Creed Of Employees - Lakhanpal National Limited

Progress And Development Can Be Realised Only Through The Combined Efforts And Co-

Operation Of Each Member Of Our Company. Each Of Us, Therefore, Shall Keep This Idea

Constantly In Mind As We Devote Ourselves To The Continuous Improvement Of Our

Company.

Seven Objectives Of Lakhanpal National Limited

1. National Service Through Industry

2. Fairness

3. Harmony And Co-Operation

4. Struggle For Betterment

5. Courtesy And Humility

6. Adjustment And Assimilation

7. Gratitude

Company's Song

India's Prosperity Through New Industry

We Strive For Production, Work With Energy,

All The Races Live Together Working Side By Side,

Like A Perpetual Fountain We Produce Constantly,

To Develop Country's Industry We Work In Good Harmony, Aim Is Progress Through Co-

Operation

Harmony And Sincerity, Lakhanpal National

H. C. PAREKH

RESURRECTION AT GENERAL MOTORS

November 19, 1986

M - 47

To:

Dear Colleague

The Holy Bible tells us that Christ returned from the Dead. No eye-witnesses are left but

to millions of faithful around the world, the legend is true. They believe it to be true.

Resurrection is return of the Life.

More than six years ago (Mar.1980), I had an opportunity to present to a meeting of

Policy Review Committee (PRC), our own

"Project Resurrection".

Briefly, it comprised :

- A lean, trim fighting force (Recruitment Freeze)

- Getting rid of the Dead-wood

- Inculcating a high-degree of discipline at all levels of organisation

- Bringing back the dynamism and the entrepreneurial spirit.

We did introduce 'a recruitment freeze in 1981 for a period of 18 months and once again

we have imposed a freeze from July this year. But in the intervening period, manpower

at Powai did go up substantially - mostly in the Supervisory-cadre !

As far as

- Deadwood

- Discipline and

- Dynamism

is concerned, there may be a lot to learn from the enclosed article regarding General

Motors (FORTUNE - 10.11.86)

"G.M. is tougher than you think".

If there are similarities in the situations facing our own L&T and G.M. - then these are

not mere coincidences, In their own countries, all relatively large companies face the

same malise of

- paper-pushing bureaucrats

- customer-hating technocrats

- "Master" - minded autocrats.

So I am not surprised that last year G.M. announced a plan to trim the managerial workforce

by one-fourth before 1990 !

Next in line are 1,30,000 white-collar workers.

And when it comes to shedding excess fat, G.M. is in good company - with the United

Nations (U.N.) - which is planning to make a 15% reduction in its staff of 11,423 and

reduce the number of assistant and under-secretary generals from 80 to 60 !

Nearer home, Gujarat Govt. nationalised 12 "sick" textile mills - and promptly decided to

let 6 of these die a natural death ! Of the 21,000 workers rendered surplus, 11,000 got

jobs in the "surviving" 6 mills and 10,000 opted for "Voluntary Retirement". Not to

be left out. Central Govt. has dispensed with 36,521 workers (till Sept. 1986) of the

N.T.C. (out of 2,30,000) under the "labour rationalisation scheme" in 120-odd textile

mills.

But the lesson that G.M. is learning - the hard way, perhaps - is that "surviving" is not

enough ! A company has got to revive - get resurrected.

In the 20th century however, 'must a company wait till its competitors hang it from the

cross before it thinks of "resurrecting" itself ?

And if there are. any happy-go-lucky complacents amongst us, I request them to study

the following picture of our slackening productivity-drive :

SUGGESTION - SCHEME

December 4, 1986

M-48

To:

Secretary-Suggestion Scheme

Suggestion-Scheme Co-ordinators (Group wise)

Year 1986 is coming to a close. So when we meet next on 16.12.86, it will be time tor

stock-taking. What had we targetted ? What have. we achieved ? What is the "gap" ?

What lessons have we learnt from 1986 efforts, achievements, short-falls ?

And this exercise must be carried out with respect to all of the following criteria:

1. Quantity/Volume of suggestions received

2. Quantity/Volume of suggestions scrutinised

3. Quantity/Volume of suggestions awarded

4. Backlog (number) of suggestions pending

5. "Age" of the backlog

6. Average-time, Maximum time. Minimum time to 'clear' a suggestion

7. Quality of suggestion - as measured in Ave. Award suggestion

8. Is this going up or down ? Over years.

9. Saving / suggestion - Maximum/Minimum/Average

10. Employee Response

i.e. Have we been able to enrol more and more "suggesters" into the

scheme or is it that the same old suggesters continue ? Have we been able

to sustain the enthusiasm of the "old " suggesters - even if they are not

winninq awards ?

10. To what extent have we been able to enthuse the "Evaluators" ? Do

they still think of this activity as an " extra-burden" ? How can we make

them feel "proud" of the contribution that they are making ?

11. What about the Foremen/the Supervisors ? Are they acting as

"Godfathers" to the suggesters of their departments ? Are they

encouraging/helping employees to come-up with suggestions or are

they still feeling "threatened" by the suggesters ? Do they still feel that an

accepted suggestion is an indication of their own "failure" ? What can we

do to make them overcome this feeling ? In fact, how can we get them to

make this as one of their "objectives" under our performance-appraisal

system ?

Is suggestion-committee doing anything to publicly "recognise"

foremen/supervisors who are making outstanding contribution ?

12. Last - but not the least -

What have we done to give scientific "training", both to foremen and

suggesters on

"How to come up with winning suggestions ?"

Creativity is fine but remember, through proper training, even

ordinary persons, can be made to write good poetry: !

Can each one of you attempt to answer these questions (as far as your

group is concerned) on 16th ? Taking "award"-decisions during Committeemeeting

is important but not everything. All of us have a much bigger role

of the "Developmental" aspect. Suggestion-Scheme is a vehicle of "Worker

Participation in Decision Making" which, in turn, is the only way to survival

and growth.

MANAGERS ON THE RUN!

December 9,1986

M-49

To:

Group General Managers

General Manager (Finance)

Twelve months from today, we may have received the next Charter of Demands (COD)

from the Union.

From then on, we are on the defensive! Onus of proving, why the company cannot afford

another steep wage-hike will fall on the management, prove, prove, prove - as if to

prove our innocence!

This is a bad position to be in! Especially when we know that we have a point which, to

us, seems "crystal-clear" and still we must struggle to make the other party "see" it.

I have gone through this - twice at Madh and twice at Powai -for an agonizing number of

months. It is very frustrating.

It is for this reason that we must mount an offensive already NOW - so that the

Union is on the defensive by the time they are ready with the Charter.

It may be so much wishful thinking that through our initiative, we could place the

Union on the defensive. But,in any case, that (taking initiative) is our only option! We

can either wait for the COD - and then "react" or become "pro-active" right now.

And being pro-active in our case is to educate the rank-and-file worker. It is

sharing with him, every single aspect of company-life whether it is

- Production (outputs & lnputs)

- Sales/Orders/Competiton

- Mfg. and other costs Financial data (including profits)

- Personnel Policies & Wages

- Automation & Redundancy

- New Business Plans

In a nutshell, vigourously implementing our "Project Information Share".

Do you remember my note "A TALE OF TWO MANAGERS" (AUG. 6, 1986) ? In this

note I had talked about Rene Mcpherson -Chairman of DANA CORPORATION - who, at

times got into trouble with his bosses for sharing plant-profit information with the workers

!

But during his 12 years as Chairman of DANA,

- Sales went up by 500%

- Earning/share went up by 15% every year

- Productivity doubled (adjusted for inflation)

And after Robert Townsend turned "AVIS-RENT-A-CAR" from a Company about-to-beclosed

to a highly profitable company, Hal Geneen of ITT (who took over AVIS) said

" I have never come across a company in which so many employees have such deep

knowledge of management".

Following your suggestion at our first meeting on COD-1988, I have already done the

following:

1. About 2 months back, convened a meeting of the Personnel

Managers/General Managers of 10/12 leading engineering

companies of Bombay. We showed them colour-slides of

-declining profitability

-rising wages

of all these companies and asked them to share some more productivity related

information of their companies ( we showed our willingness to share ours). They ail

agreed but subsequent response is poor. We are pursuing. When all data is

analysed, it was proposed to make a one-hour presentation, followed by a -one-hour

discussion amongst the

- Chairman

- VP(Personnel)

- VP( Finance)

of all of these companies.

2. On 18th October and again on 6th December, convened meetings of

leading Trade-Union leaders with the IR Committee of BCCI. For the

last meeting, we had about 15 TU leaders and 60 senior managers of

various companies. It was decided to set-up four, bipartite committees

as follows :-

- Labour Laws

- Amendments & Introduction

- Wage Policy

- Modernisation & Employment

- Industrial Relations Harmony & Work Ethics

Within the next 6 months, these committees are expected to produce joint "Draft Policy

Statements" which will be discussed in a General Body meeting and possibly

"Adopted".

3. PJP and myself are working on a proposal for "L.K.Jha Commission on

Productivity & Efficiency". It 'will be for a sponsored-research project

on "Wage-Policy in Engineering industry in Bombay City".

4. I have stepped-up issue of circulars to educate our employees on

wages/costs/profitability/viability/automation/surplus labour/ voluntary retirement/

retraining, etc. etc.

5. About 3/4 months ago, nearly 200 Foremen/Supervisors were shown

the film "People & Productivity: We learn from the Japanese". After

seeing the film, each person set for himself a target, however small, for

improving operations/work-ethics/attitudes, etc.

After a lapse of 3/4 months, I am meeting the same groups once again

where each person shares with others his/her success/failure. I already

.see a good deal of change in the attitudes of our supervisors. There are

many "mini-success" stories I We will keep meeting every 4 months.

6. I have planned to go to Lonavala

- on 20/12/86 with 120 Shop Representatives and some senior managers

(DGM-JGM)

- on 3rd/4th April 1987 with 120 Shop-Foremen and some PMs/APMs

We will leave Friday evening by 2/3 buses and spend the whole of

Saturday talking about our operations/issues/ attitudes, etc.

Shri Dattaji Salvi and a couple of outside resource-persons will join the

first group as "observers".

We will be making use of the BKS Training Centre at Lonavala.

But, at best, all these activities can be termed as "peripheral". At the

core, the centre of these activities must be the "Project Information

Share". We do not 'owe' it to the employees - for the growth of the

company, we 'owe' it to ourselves - when the times are bad and when

the times are good.

Can we meet soon, to discuss the modalities ?

SUGGESTION SCHEME - REPLIES TO REJECTED ONES

To:

Suggestion Scheme Co-ordinators

(Group-wise)

December 17, 1986

M-50

I am glad to find that, starting this month I see, in more cases a detailed explanation on

the reverse of the formatted reply. I wish to assure you that this extra effort on your part

will go a long way in encouraging many more suggesters to come forward with their

suggestions. PI. keep it up.

In yesterday's meeting each one of you showed various parameters to show how. the

scheme is doing in your area. Each one of you had a different but interesting way of

looking - measuring the scheme. I was quite encouraged with your analysis. Could we

synthesize all of these in a single standard format ? PI. try.

That brings me back to the question of "Standardizing* the monthly progress report

slides. If you apply your mind to it, I am sure you could reach an agreement.

As far as computerisation is concerned, it is high-time we put this project into the

second-gear now ! Modh has already got his micro and IRS is getting his today. The

rest of you cannot remain lagging behind. But once again, please ensure COMPLETE

standardization of software & output statements.

Last, but most' important, bring with you to the next meeting, your firm

committment for 1987 TARGETS, for Suggestions and SAVINGS. Bring senior

managers with you if you like.

EMPLOYEE SEMINAR AT LONAVLA

December 31, 1986

M-51

To:

Corporate Management Members (Individually)

I have been continually discussing with our Union, the need to maintain an on-going

process of relationship between the Management on the one hand and Union and

employees on the other, since I believe that management of productivity in the coming

years will depend increasingly on the single crucial factor of employee motivation

through harmonious employee-employer relations. The response from our Union has

been very encouraging and as an important step towards this end, it was jointly decided

by us and the Onion to hold a seminar, away from the work environment, to generally

discuss important issues which require solutions in the coming years and to invite the

Union Committee Members (Shop Representatives) as well as the JGMs and DGMs

of Manufacturing Units to participate.

The Union suggested that the seminar should be held at a facility with the BKS, Which

was recently commissioned at Lonavla - "SMAPNA POORTI" where seminar hall and

other facilities are available. Management agreed to bear the expenses for the

seminar. We also invited Shri Dattaji Salvi and Shri Ramakant More, president and

General Secretary of the parent BKS Body, to participate in the seminar, and they also

accepted the invitation.

The final list of. participants comprised the President and General Secretary 'of the parent

body of the Union, the Joint Secretaries of the L&T Unit, and the committee Members

(Shop Representatives) of Powai, Madh and City Offices, totally numbering about 165

persons. From Management side, Messrs, A.Y. Divekar, V.S. Kaushikkar, S. Samu, R.B.

Bhambhani, P.M. Mehta, J.P. Madan, Kalyan Chakravarti, A.M. Deshmukh, V.P.Singh and

the undersigned participated.

The participants left for Lonavla in our buses on Friday, the 19th December, 1986 after

the end of the 1st shift, and spent the night in Lonavla. The seminar was held on

Saturday (weekly off), the 20th December 1986, between 8.00 a.m. and 4.00 p.m. The

stated objectives of this joint seminar were :

1. to educate the Shop Representatives regarding the Company, its operations and its

strengths, weaknesses, opportunities and threats (SWOT),

2. to throw up for discussion and debate, issues which in the perception of the

Management and the Union representatives, are or

will be vital for the continued prosperity of L&T in general and the

Powai Unit in particular,

3. to accelerate the PARTICIPATIVE PROCESS.

The seminar programme was designed to devote as much time as possible to discussion

and debate of vital issues and therefore, 3 1/2 hours were allotted for this purpose.

The rest of the time was devoted to a presentation on L&T as a Company, the employeremployee

participative process in Japan, and talk by the Union leaders as well as

Management Representatives on issues before the Company.

The enthusiastic response from the Union leaders and the Shop Representatives was

beyond expectation and to a large extent, this seminar objectives have been fulfilled.

This has laid the ground for further seminars of this nature at which the shopsupervisors

and workmen can also be brought together to strengthen ' the bonds of the

participative process.

Our immediate plan is to conduct 2 seminars, covering the Foremen and

Production/Assistant Production Managers. These are scheduled for 3rd January 1987

and 4th April 1987. These will be followed by joint seminars at which Foremen and

Shop Representatives/workmen shall participate.

A video recording of the seminar proceedings has been made and I would request that I

may be permitted to present a part of the video tape at the next Policy Review

Committee Meeting, alongwith a part of the video tape which we shall make for the

proposed Foremen's seminar.

DO IT RIGHT THE FIRST TIME

January 1, 1987

M-52

To:

Quality Control Personnel

(Group - wise)

I enclose herewith a BHEL publication on "Quality" for Nov. 86.

Apparently BHEL has raised the status of the quality-function high enough to merit its

own monthly mouth-piece -an exclusive journal. This is indicative of their attitude and we

can learn a lesson from them. Isn't L&T large-enough to merit such a journal ? What is

the level we wish to assign to "Quality" ?

Perhaps, some 100 engineers and 300/400 workmen are directly engaged in "Quality-

Control/Inspection/Quality Assurance/ Reliability" type of work. They could all immensely

benefit from such a pamphlet. And finally Quality - Message has to percolate to

everyone - not only downwards, but also upwards!!

We have to inculcate amongst our employees the attitudes of

- My job will never-be-less than-perfect.

- My job shall not get rejected or require rework

- I will do it "right" the first-time

- I am proud of my output and therefore, I am willing to certify it myself, under my

signature !

A pamphlet can help create such positive attitudes.

It can also help by acting as a "Cleaning-House" of all the good work (on the Qualityfront)

being done in nooks and corners of L&T's vast organisation. We must learn from

each other. We must duplicate the "Successes" of our colleagues. We must have

a synergy !

Suggestion-Scheme has registered a tremendous improvement since we started the

IDEASCOPE last year.

I believe L&T's Material-Management Function have their own pamphlet called

"SOURCE-SEEKER". They even have their annual conference.

I am fully aware that there is a great diversity amongst our

- Products

- Materials

- Manufacturing Processes

- Acceptance Criteria etc. etc.

Case-Study of one group may seem irrelevant to another group.

But, I hope, there can be no diversity as far as our attitude towards quality is

concerned - our attitude towards the customer

You may wish to meet and discuss the feasibility of an action-plan.

Regards and good-luck for 1987.

H.C.Parekh

WORKING SMARTER

January 5, 1987

M-53

To,

Dear Supervisor :

Way back in March 1980, , I sent to you, your own copy of

"How To Get along Better With People"

Then in June 1982, I was happy to send you a copy of

"The Incredible Japanese".

And now I present to you

"Working Smarter"

Somewhere in this book, Eastman Kodak Chairman Walter Fallen says, "Working Smarter

means imparting a strong sense of teamwork and giving employees more say about

how they do their jobs. You can't drive a good work-force thirty percent harder,

but we have found that we could often work thirty or fifty or even a hundred-and-fifty

percent Smarter".

After you have read this book and experimented a little, if you come-up with your own

definition of Working-Smarter, do write to me. I would like to share it with hundreds

of other supervisors all over Powai.

But one thing is certain.

Productivity at Powai must go up - not by mere 3 - 5% each year but by atleast 15%

each year - assuming salary/wages are going up by 10% each year. At all times it

must keep rising 5% point faster than the manpower-costs.

And this must happen soon

But how ?

To find an answer, some 60 of us spent a whole day at Lonavla yesterday.

We asked ourselves, How Much Is Left To Any Level of Management to

Motivate Employees Through Attitude-Change & Reward/ Punishment System.

We came to the conclusion that

- barely 1% can be motivated through the negative incentive of "punishment' (thanks

to our Labour-laws)

-Some 10% can be motivated through an appropriate "reward" system

(Ever-rising D.A. & Bonus rewards are the "bakshish" of Sarkar Ma -

Bap ! )

-the balance 89% can be motivated by change of attitudes. But whose attitudes ?

To begin with our own !

And the very first of. our attitude that needs changing is,

"We, the Supervisors & the Managers know what is best for the organisation. Me,

and we alone, have the sacred prerogative of guarding the interest of the

organisation. So all decision-making must be left to us. And when we have taken a

decision, we must not be bothered to give an explanation to anybody - atleast to

anybody whom we supervise. "

If we want to change others by influencing them with our thoughts, we must be

prepared to be influenced by their thinking - be prepared to change ourselves.

In the following pages, you will learn how the Workers - and the Managers - are allowing

themselves to be influenced by each other. They have found a new relationship which

is rewarding not only to their organisation (in terms of higher productivity) but also to

themselves emotionally. These are not theories - but real-life experiences and

therefore capable of being duplicated - even improved upon.

In the weeks arid months to come, do send me your own experience of Working-

Smarter so that I may put together our own version of

WORKING - TOGETHER

- BETTER

for the benefit of all interested in surviving the 20th Century.

H. C. PAREKH

PS: Since "Sharing Information" is the very foundation of Working Smarter,

when you have finished reading, will you please pass-on this book

to someone else in the organisation who hasn't heard about it ?

DID THE UNION DELIVER ?

January 5, 1987

M54

To:

Group Jt General Managers & Dy. General Managers

Sub : Productivity

I enclose herewith -

1.Copy of a letter dt. 11.4.84 written by me to Mr. _________(Gen.Secy. BKS

Union-Powai)

2. Annexure to the letter (pertaining to your area of operations).

Vide this letter, we had informed the Union what were the productivity levels achieved

during the currency of the 1979 Settlement. The workmen and the Union were to

make an improvement of 25% over these figures. It is nearly 33 months since we

signed the Agreement. It would therefore be worthwhile to take a stock of where these

figures stand. I would highly appreciate if you could send me a statement showing

against each item

a. Average figures of 1979 Settlement.

b. Average of the Oct - Nov - Dec 1986 figures

c. Percentage -increase.

This would help me to write to the Union once again.

TORN NOTES IN PAY - PACKETS

January 13, 1987

M-55

To:

Dy. General Manager (Accounts)

In my meeting with Shop-Reps today, I was told that this problem has become very

acute lately and every month dozens of workmen are wasting hundreds-of-hours of

productive time to queue-up before the cashiers to change torn notes (joined with cellotape

!) received in pay-packets.

Would you please look into this ?

Regards,

Hemen Parekh

CORPORATE MANAGEMENT MEMBERS (INDIVIDUAILY)

January 15, 1987

M-56

To:

Sub: "Foremen's Seminar" at Lonavala

As a follow up of the "Employee Seminar" which we have had on December 20, 1986,

at Lonavala, in which Union Joint Secretaries and Shop Representatives as well as

senior Managers had participated, we had planned to hold two similar seminars for

the participation of Foremen and Production Managers. The first of these was

conducted on January 3, 1987, at which Foremen/Senior Foremen/Deputy

Superintendents as well as Asst. Production Managers/ Production Managers of

Powai and Madh Works participated. In all there were about '70 participants.

Apart from having similar objectives of the "Employee Seminar," of SHARING

INFORMATION about the Company's operations and accelerating the PARTICIPATIVE

PROCESS by discussing and debating important operational issues, this seminar also

stressed the vital role of "EMPLOYER/EMPLOYEE COMMUNICATION".

Accordingly, apart from devoting time to sharing of information about the Company,

the programme was designed to throw up issues for discussion. Therefore, we

presented extracts of the video tape which was filmed at the "Employee Seminar",

together with a film on Industrial Relations. A copy of the actual programme is attached.

The consensus which emerged at the end of the day's proceedings was in favour

of holding similar seminars in future, since these interactions provide a much

needed intra-Management "bridge" in our multi-layered organisation structure. A video

recording of this seminar too, has been made and I will use parts of it during my proposed

visits to Delhi, Kansbahal, Madras, Bangalore and Awarpur, for holding one-day

workshops on "Experiments in Participative Work-Culture".

Hemen Parekh

EXPERIENCES IN EVOLVING A PARTICIPATIVE WORK-CULTURE

January 16, 1987

M-57

To:

Production Managers

Asstt. Production Managers

Plant Engineering/Maintenance Managers

Quality Control Managers

Material/Purchase Managers

Design/R&D Managers

In your own way, I am sure each one of you have been experimenting in your

department, to evolve a participative style of working. Over the years, you must have

accumulated some experience in this regard. You may have success-stories (or

failure-stories too !) to tell.

I would earnestly request you to send me these stories by 30th of this month.

Wherever possible, give specific examples - with supporting data if available. If you

have made any slides, please send these too.

Reason ?

After our recent employee-shibirs at Lonavala, Corporate Management felt that this

message should spread throughout the L&T Organisation. So they have asked me to visit

- Delhi - Madras

- Kansbahal - Bangalore

- Awarpur

during the next two months and tell the Managers & Supervisors there, what we

are trying at Powai and what is our experience.

I do hope you will make a serious attempt to write-down the WORK CULTURE OF YOur

supervisors and unionised work-force even if it seems to you so NATURAL I Let us spread

this to get a new SYNERGY in L&T.

SUGGESTION-SCHEME

February 11, 1987

M – 58

To:

Dear Colleague

A few days back I had a meeting with about 15 shop-representatives from various

departments all over Powai.

Amongst the many things that we discussed, one was regarding employee-suggestions.

Whereas the shop-reps, agreed that not all suggestions can be Implemented or rewarded,

the general feeling was as follows :

(1) The feedback needs to be speeded-up.

(2) The "Rejection-Reply" should be worded positively, encouragingly.

(3) Foremen/Dept. Heads should take more Interest In understanding the suggestion and

the logic behind the rejection and they should take pains to explain this logic to the

suggested so that he is convinced.

As far as I can see, this point is VERY IMPORTANT. The suggestion-committee Itself felt

very strongly In favour of this during Its last meeting.

Every person feels that his suggestion is most brilliant and worth a Nobel-prize ! He derives

greatest satisfaction in seeing it get Implemented. This satisfaction, quite often Is even far

more important to him than the monetary reward.

This is not difficult to understand. If we do a bit of Introspection.

All of us, throughout our working-life of 20, 30 or 40 years keep on suggesting "changes",

whether these changes pertain to

- Information Systems (rules, procedures, etc.)

- Physical Systems (manufacturing methods, storage, etc.)

- People (recruitment, skills, training, organisation, etc.)

- Policies (rewards, punishments, etc.)

- Attitudes (love, hate, etc.)

We make these "suggestions" (except that we do not consciously call them suggestions")

In dozens of encounters with our colleagues everyday -•for perhaps 10,000 days of our

working-life.

All of these, add-up to perhaps 100,000 or If you are very prolific, to may be a MILLION

suggestions during the course of A_ lifetime !

But how many of these get accepted ?

And of those that do get accepted, how many finally get Implemented ?

Perhaps an Infinitesimal fraction.

But despite these enormous odds (against our suggestions getting accepted), we do not get

frustrated and give up making suggestions.

Why ?

Again not very difficult to see.

In a dialogue, a discussion, a group-meeting, others are quick to respond with counterarguments

and counter-logic.

There are more arguments (from the suggester's side) and still more counter-arguments.

The whole process is very personal, live, open and transparent. You can see the feelings

and touch the emotions.

And therefore, you understand.

And when you understand, you do not resist - nor do you feel frustrated. Perhaps you may

even get a small satisfaction out of having been given the opportunity to Influence the

thinking of the others.

If nothing else, you get a feeling. of having "participated" in the process. To most of us this

feeling, by Itself is a great motivator - the feeling of having been ''Seen-and-heard".

And so we keep-on making a hundred suggestions, day after day, for ten thousand days !

But none of this life-drama is present when you send your suggestion, through a piece of

paper and receive, a "response" after a few months, on, another piece of cyclostyled paper !

No Joy, no tears, no heart-burning, no exaltations, no voices, no emotions, no feelings !

Just some black dots on a white -aper delivered through "mall" !

"Dear Suggester :

Ref : So-and-so

Thank you very much for your Suggestion. Wo have evaluated It In detail and regret to

Inform you that the same Is not acceptable for the following reasons :

Dept./Section Head

Now we are going to change these wordings and make them sound much more

encouraging.

Suggestion-Scheme co-ordinators (Modh - Gr.ll, SVR - Group III, Solkhan-Gr.lV, Saharia -

EWAC, Sethl - PGM) will also attach the details of the suggestion Itself and the details of the

"reasons-for-the-acceptance"

to the reply so that you have a little better understanding of the whole matter. But that may

not be enough !

It is one thing to be able to convince a suggester regarding the "non-acceptance" but it is

an altogether different thing to keep him motivated so that he keeps sending more and

more suggestions.

And that is where you come Into the picture.

You - and you alone - can bridge the gap (the communication-gap) between the seemingly

Impersonal suggestion-committee on one side and the person sitting in front of you, on the

other side.

That's Right !

- No more ''delivery-thru-Mail".

- No more mere "handing-over" the letter.

You must make him sit down comfortably and tell him,

"I did not know that you had sent In this suggestion. Seems like a good suggestion. But

of course, you know that the Suggestion- committee has to look into each and every aspect,

not the least of which is Next time you have a clever idea, why don't you come to me -first.

May be I can help you to make the necessary sketches and the calculation of savings. I am

sure, one of those days, you are bound to come-up with a brilliant Idea and win a big prize -

so why not look around and keep asking,

"Is there a better way of doing this ?"

A major objective for any supervisor (whether he be a first-line supervisor or a General

Manager) is to bring out the "creative talent" which lies hidden amongst his

subordinates/colleagues. And "suggestions" received from your department/section Is a

pretty good indicator of how well you are meeting that objective.

Let this be your PRIME OBJECTIVE in 1987.

A THANKLESS JOB ?

March 4, 1987

M – 59

To:

Dear Colleague

A few days back Mr. K.Chakravarti, Mr. A.M. Deshmukh and myself were literally "gherao"-

ed In the reception-hall by a group of Shop-Reps from "C" building. As we returned from a

meeting, they were all waiting and they all seemed very agitated. One of them had a

snack-packet in his hand.

"What Is the problem" ? I said.

Several voices rang out at the same time.

- Look at this cockroachi in Batata Wada."

- Chapatis are so tough you need a hack-saw to cut it."

- Rice is like porridge and smelly."

- Why don't you call it Bone-Masala Instead of Mutton-Masala ?"

- My Wife would like to learn how to prepare Bhaji - the canteen style' all water no Bhaji ! "

- We don't want to eat in the canteen, give us Dabba-Allowance."

- Canteen supervisors never come-out in the dining hall."

- Supervisors must taste (Inspect) the food when it is ready."

When the voices stopped, I asked,

"What do you think is the reason for all these complaints ?"

Someone said, "There is not enough supervision, so service has deteriorated."

Another said, "Cooking is bad. Cooks are careless.'"

Third said, "There Is not enough manpower in the canteen."

Fourth said,

"Quality of raw-material is poor, because we are trying to buy cheap."

I was reminded of the story of seven blindmen and the elephant. Each had his own, unique

way of "seeing" the elephant by touching some part of It, but nobody could touch the

elephant as a "whole".

For the next few minutes, I tried to make them see the whoIe of the elephant - called

canteen- but I don't know whether I succeeded. But when you finish reading this circular, I

am sure at least you would understand.

And since It may sound as though I am trying to defend the canteen operations, let me

admit one thing right at the beginning.

Yes, I do believe - and strongly - that there is a lot of scope for Improving the canteen

services - in the same way that there is a lot of scope for Improving all our operations at

Powai !

And I will also admit another thing.

In Improving things at Powai, we need whole-hearted co-operation, dedication, commitment

and TEAMWORK of everybody In Powai - from the employees at the lowest rung of' the

ladder to the General Managers!

And when It comes to Improving things, what about,

- The "quality" of our products ? Is there no "rejection/rework" on shop-floors ?

- The "Timely Deilivery" of our products against promises made to the customers ?

- The "Cost" at which we produce our products ? - Keeping them low so that we can

compete in the market and get some orders to keep our machines and manpower busy ?

- Our "after-sales-service".

- and last but not the least, what about our productivity - in the offices and on the shopfloors

?

I have been talking about these things for many years and you already know my views.

Today, however, we are going to talk about our Canteen:

- It's volume of services

- It's resources

- It's productivity ( Volume of Service )

- It's delivery (timeliness)

- It's quality

- It's Cost etc. etc.

Let us begin at the beginning.

A. VOLUME OF SERVICE

Nature of

Service

To how

many

persons

How

many

times/

day

No.of

days/ year

Total "Serviceevents"

/ Year

1. Lunch 5150 1 305 15,52,550

2. Tea 6500 1 / 2 253/305 32,40,950

3. Snacks 6500 1/2 305 21,96,000

4. Trays 200 2 253 1,01,200

5. Coffee 1900 1 / 2 253/305 5,52,100

6. Dinner 750 1 305 2,28,750

7. Lunch-

Cottage

2,300

TOTAL 78,73,850

B. RESOURCES

Manpower 1983 - 84

(Base-Year)

1986 -

87 (Actuals)

lncrease/

Decrease

Sup & Clerical

Vendors/Walters

Cooks & Grain Cleaners

Sweepers

39

219

48

35

210

45

(-4)

(-9)

(-3)

Casual

22

24

(+2)

38

12

(-26)

Sub-Total 366 326 (-40)

O/T converted to

59 32 (-27)

equivalent Men

GRAND-TOTAL 425 358 (-67)

What happened to Powai Manpower during the same period ?

POWAI MANPOWER

1983 -84

(Average)

1986 -87

(Actuals)

lncrease/

Decrease

- Sup and above 1479 1598 ( + 119)

- Daily Rated 3888 3722 ( - 166)

- Monthly Rated 1141 1140 ( - 1 )

- Trainees 765 556 ( - 209)

GRAND - TOTAL 7273 7016 ( - 257)

Ratio - Powai Manpower

17.1 19.6

Canteen Manpower

C.So what can we conclude from these -figures ? What can we say about the

Canteen-Productivity ?

From the above figures we see that

- Canteen manpower went down by 15.8% and canteen

Productivity went UP by 14.5%!

(no. of service-events/ canteen employee)

D.CANTEEN DELIVERY

Yes, of course,we had a few occasions when tea-service was late by 15-30 minutes or

when lunch was not ready.

But how many times In a year ?

What percentage (%) of the total "Service-events" of 78,73,850 during the year ? And how

does this "Service-level" compare with the percentage of delayed deliveries ( of our

products) to our customers ?

But whereas acustomer will fret and fume, he will still wait for for us to deliver his order a

day, a week or may be a whole month beyond the promised delivery-date. At that stage he

has very little choice ! But when it comes to Canteen, no one is prepared to accept a

"delayed delivery" !

And remember, - when It comes to TEA & SNACKS, It means -"door-deIivery" for the

canteen-vendors .!

During the last 5 years, we have added

- EIGHT buildlngs/extensions (114674 sq.ft)

- THREE Pantries (1822 kms of service-route p.a.)

D.CANTEEN QUALITY

When It comes to food, the concept of quality becomes very subjective especially in a place

like Powai where people come to work from all parts of India.

We have

- "North" Indians

- "South" Indians

- "East" Indians

- "West" Indiansand

those who like to call themselves

"Central" Indians.

And all of them like the food cooked by their mothers only ! (not even their wives .!)

And whereas they are quite willing to put-up with whatever food their wives offer for dinner,

they are quite critical of the lunch served In the Canteen .!

I would like our employees to appreciate that a Canteen can neither give you home-food

nor it can give you hotel-food .

When you cook food for 5000 people, you Just cannot get the same quality which you get

when you cook for 5 persons ! Ask any mother ( or wife).

And please do not hurry to compare with the hotel-food. -If.you were to order the same

THALI In a hotel, you would end-up paying between Rs. 10 to Rs. 25/-

Our canteen can give you twice_ as good a quality for half as much the price !

And In case you are not too keen on such a superior quality, the canteen can offer you-the

SAME quallty( as the hotels) for ONE-FOURTH ( 1/4) the price charged by the hotels !!

Any takers ?

That brings us to the question of -

F. CANTEEN COSTS

1986 -87 Expenditure ( Budgeted) - Rs. 307.44 lakhs

1986 - 87 Sales (Budgeted ) - Rs. 35.62 lakhs

Therefore 1986-87 Loss (Subsidy) - Rs. 271.82 lakhs

Whereas Expenses have been going-up year—after-year, the Income (coupon-sale) has

remained more-or-less the same ! So no wonder, LOSSES have mounted.

Look at the following chart:

And If we cannot get the employees to agree to Increase the selling-prices, what else can

we do to reduce the losses ?

Obviously we have to cut Costs.

Which costs can we cut ?

Let us look at the 1986-87 budget :

Material Cost ................. Rs. 136.28 lakhs

Labour Cost ................. Rs. 141.92 lakhs

Power/Fuel-Cost ................. Rs. 11.25 lakhs

Misc. ................. Rs. 15.99 lakhs

TOTAL

Rs. 307.44 lakhs

We said let us,

Targetted Saving

(Rs in lakhs)

1. Cut material-cost during 1986-87. We will

use less quantity ( a lot of food is wasted)

and cheaper varieties.

18.90

2. Cut down on overtime 9.68

3. Reduce use of crockery 2.20

4. Save fuel by Steam Cooking Plant 1.81

5. Contract Sweeping Activities 1.71

TOTAL 34.30

Against this target, we could achieve onIy Rs. 5.47 lakhs in the first quarter (Oct -Dec

1986).

At this rate, we may' not manage more than Rs. 20.0 lakhs In the whole year!

Reasons for the Shortfall ?

1. Managers (LR-I) do not like reduction in non-veq. frequency.

2. Managers and Supervisors (LR-1/LR-2) do not like elimination of Sweet-dishes.

3. Managers/Supervisors/Workmon (LR-1/LR-2/LR-3) do not like increase In selling

prices ! (1+1 is a different matter when it comes to salary and wages ! )

4. Canteen .employees do not like loss of O/T earninqs.

5. Union, LTOSA and Managers do not like to take harsh, unpopular decisions.

In the meantime, the following Improvements have been made in the Canteen:

- Absenteeism (excluding PL) brought down from 11.36% in 1985 to 11.02% in 1986 (

reduction of 0. 34%)

- Absenteeism (including PL) brought down from 18.68% in 1985 to 17.00% in 1986 (

reduction of 1.68%).

- O/T brought down from 166772 Hrs/Year ( 1984/05) to 107190 hours (targetted) In

1986/87. ( a reduction of 36%)

- 26 Casual labourers eliminated in 1984/85.

- Installation of Steam-cooking plant.

- Installation of Dish-washing machine.

- Computerisation of Inventory and Job-costing.

And then there are pIanned Improvements such as,

- Standard deductions (monthly) for tea/snacks.

- Mechanisation of "Delivery-Services" to Shop-floors (using a three-wheeler).

- Mechanisation of the food "Manufacturing and Packing Processes".

- Mechanisation of the grain-cleaning/utensil-washing/vegetable-cutting.

- Introduction of stainless steel plates (In place of crockery) in LR-2.

- Introduction of pressed stainless steel dishes In LR-I and LR-2 (provided Managers and

Supervisors co-operate !).

- Rationalisation of menu/Variety reduction (provided everybody agrees !).

- Introduction of Self-service wherever possible.

And all this is possible only through your active co-operation. It is never easy to tame a

wild elephant !

A DUTY-FREE IMPORT?

March 26, 1987

M – 60

To:

Dear Colleague

Not only employees of Group II but all of us at Powai are upset that the Government of

India, for the past 2 years, have been permitting Import of complete fertilizer plants -

without payment of any Import duty. At one time this duty used to be 45% of the plant

value. (In the latest budget it is proposed to once again. Impose a 15% duty on Imported

fertilizer plants).

So the European and the Korean manufacturers are suddenly flooding the Indian market,

literally driving us out of the business. When the' Indian Industry protested to the

Government, the reply given was,

'.

"How long can we protect you with a high Import-duty? Now you are grown-up and should

behave like one! You must face International competition. You must fight your own battle.

High Import-duty pushes-up project-cost, which pushes-up product-cost which in turn,

makes our economy a high-cost economy.

We (the Government - and finally the people of India) end-up subsidising your high-cost

fertilizer plants, then the high cost-fertilizers, and finally the high-cost food-grains. This has

got to stop - so no more Import duty".

The Government has a point (even If we have 5 counter-points!).

The fact remains that the Koreans are low-cost producers, because their productivity is so

high. Take a look at tho following chart :

Could it be because their managers work much longer-hours?

OFFICE PRODUCTIVITY

March 08, 1987

M – 61

To:

Corporate Management

General Managers

Joint General Managers

Regional Managers

Chief Executives/General Managers of S&A Cos.

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 mesting 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

Total 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

ANNEXURE VI

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

We are not sure.

But one thing, seems certain.

Their managers do work smarter.

Some examples :

- Korean Managers, encourage face to face meetings between management and workers.

- At Samsung, managers and workers exchange Ideas freely on the plant floor or In the

lunch room - there Is a common lunch room.

- Workers are given freedom at work.

- If a Korean worker has an idea, he says it the free and encouraging environment enables

him to do so (In the case of Americans, even If they have a good Idea, they follow

Instructions!).

A worker of Samsung International Inc. (U.S.A.) says,

"You can voice your opinion here. I once spoke up to a manager. I would have been fired

anywhere else, but It was O.K. There's no union here either, but we get all the benefits we

need".

President Lee of Samsung (U.S.A.) says,

"We prefer the consensus style, if a worker Is buying a house or getting a divorce, we get

the company lawyer".

The current Korean Investment of $ 200 million In U.S.A. Is expected to rise to $ 5000

million within the next 4 years!

And alongwith this the Koreans are also exporting to U.S.A. their management style.

And the American Govt. has decided not to charge any Import-duty on this!

UNPRODUCTIVE LABOUR PRACTICES

PROJECT - RESURRECTION

September 30, 1985

M – 62

To:

All Production Managers:

A few days ago, some of the Production Managers had got together to identify various

unproductive practices being followed by the workmen in the Company. A list was drawnup

of such unproductive & counter-productive practices for discussion with the Union. I am

enclosing herewith the Work Sheets (sent to the Union).which will be discussed with the

Union Representatives in the next 4/5 months. It is imperative that you participate in all

these meetings to impress upon the Union the urgency and seriousness of the issue. This is

a man-management problem and all the Managers should get closely involved in it.

Your co-operation through active participation in the discussions is solicited.

Project - Resurrection

The Existing Practice

Shop Representatives go to see Joint Secretaries other than the concerned Joint Secretary

from Powai last to Powai Vest and vice-versa

What Is "Bad" About It ? How .Does It "Hurt" ?

Adversely affects workplace industrial relations at the particular department as the foreman

finds people (S.Rs) from other areas interferring and this becomes a disruptive 'foreign'

element to his internal Industrial Relation sub-system.

How Did It Come About ? What "Caused" It ?

What Can Be Done To Change It ? Who Should Do It ?

What "Conditions" Will Prevail When Corrected ?

What "Quantitative/Qualitative" Proof Will Tell

Us That Change Has Taken Place ?

Shop Representatives would go to see only the concerned Joint Secretary. The availability

of Shops Representatives for productive work would increase.


Shop Representatives go out with Gate Pass on 'Union Work' without giving any specific

reason.

What Is "Bad" About It ? How Does It "Hurt" ?

A Qualitatively wrong practice Adverse effect on discipline

How Dip It Come About ? ……..What "Caused" It ?

What Can Be Done To Change It ? ……Who Should Do It ?




Shop Representatives will go out on Gate Pass only when they have genuine Union Work.

No one other than Joint Secretary would leave Powai on 'Union Work'.

The' Existing Practice

A number of Shop Representatives collectively discuss minor problems of the Shop with the

Foreman, instead of the concerned Shop Representative doing so, as was the practice.

What Is "Bad" About It ? How-Does It "Hurt" ?

-Loss of production time of a number of Shop Representatives.

-Time spent by the Foreman is more than what it would have otherwise been.

-Representatives other than the concerned one, do not know much about the Problem since

they have no familiarity, yet they spend time.






Only the concerned Shop Representative would meet the Foreman, in a separate place, to

discuss minor problems of the shop floor.


Shop Representatives argue with Supervisors/Superiors in case they are not allowed for

'Union Work' when required, disturbing peace on the Shop floor. (They do not accept 'No'

for an answer to any such requests)

What Is "Bad" About It .? How-Does It "Hurt" ?

Shop floor discipline gets disturbed causing bitterness between Supervisors and Shop

Representatives.


What Can Be Done To Change It ? Vhp Should Do It ?




There will be proper procedure laid down regarding permission for attending to 'Union

Work', after following which, there will not be such disturbances.


Workmen Other Than Shop Representatives Called For 'Union Work'


Prevents Effective Use Of Working Hours






Workmen other than Shop Representatives will not approach Supervisors for Gate Pass on

'Union Work'. They will not meet the Union Committee Members during working hours.


Shop Representatives, though available on -the Shop floor are not available for Productive

Work, since they are busy in what they term as 'Union Work''

WHAT IS "BAD" ABOUT IT ? HOW DOES IT "HURT" ?

Feeling : Shop Reps. are away from workplace - 25% to 30% of time Shop

Reps. not doing work - 70% to 80% of time

Adverse effect on discipline Loss of Production time - Affects line balancing Capacity

available, but cannot be used.






Shop Representatives when available on the Shop floor, will be productively utilized on the

job.


Workman visit the Credit Society during their normal working hours

What Is ""Bad" About It ? How Does It "Hurt" ?

Adversely Affects Effective Use Of Working Hours






Workmen will visit the credit society office/extension counter only during lunch time/outside

normal working hours.


Ltaccs Administrators Spend All Their Time In Credit Society Office.

What Is "Bad" About It ? How-Does It "Hurt" ?

Adverse Effect On Discipline - Unexemplary Behaviour


What Can Be Poke To Change It ? Who Should Do It ?




Ltaccs Administrators Will Only Spend Pre-Assigned Time For Ltaccs Work And Will Be

Available For Productive Work On The Shop Floor For The Rest Of The Shift.


Going To Pla Office For Reasons Which Are Not Very Urgent


Tendency Is To Leave The Shop Floor - Leading To Waste Of Time For Self And Others.






Workmen Will Not Visit Pla For Reasons Which Are Not Very Urgent.


Escort The Injured Even For Minor Injuries

What Is ""Bad")" About It ? How Does It "Hurt" ?

Adversely Affects Effective Use Of Working Hours. The Attitude Reflected Is Unhealthy






Escort will be 'given only where justified and not for minor injuries.


Visiting Dispensary for reasons such as Cold/Cough etc., which are non-industrial in nature

and for Pathological Testa/X-rays etc.

What Is "Bad" About It ? How-Does It "Hurt " ?

This Is Done During Working Hours Leading To Waste Of Productive Time The Medical

Facility Is Basically Provided For First-Aid And For Pre-Employment Tests.

.How Did It Come About ? What "Caused" It ?





Use of Dispensary will be restricted for causes of Industrial Accidents and Emergencies.

(Management Requirements List at 17.3.83-84 Negotiations).


Issue related, "to requests for 'Light Work'

What Is "Bad" About It ?

How Does It "Hurt" ?

- Manpower balancing gets disturbed.

- Number of employees doing "marginal" work goes on increasing causing loss of productive

man-hours.

- effects shop floor morale in general.



What: "Conditions" Will Prevail When Corrected ?


Us That Change Has Taken Place?

Reduction In The Present Population Of Such "Marginal" Employees By Making Them

"Retire" Early.


Accident Leave without "warranted" Accident/Injury


Mandays Lost Without "Good-Enough" Reason. Dishonesty When High Committment Is

Expected. What Is Worse, "Accidents" During Ii Shift, In The Evening, Are More Frequent

And The Workman Goes Home Getting Himself Declared 'Unfit'. This Is Not Even A

Reported Accident, Nor There Is An Accident Leave, Yet Productive Hours Are Lost.


What Can Bl Done To Change It ? Who Should Do It ?




Rejecting requests for being declared "unfit" for not "serious-enough" accidents.

Lowering of incidence of accidents during IInd shift/on Sundays.

We will not find any 'accident-prone' employees.


Shop Representatives Going To Hospital To See Their Sick Colleagues During Normal

Working Hours.


Affects Adversely Effective Use Of Working Hours


What Can Be Done To Charge It ? Who Should Do It ?




Neither Shop Representatives (nor any other workmen) shall go to see their ailing colleague

during normal working hours.

(Refer HCP'S letter to BKS dated 11.4.1980)


Workmen Attending Workers'' Education Classes - Leave The Workplace Much Before Time.


- Management Already Has Norms Regarding Extent To Which Productive Time

Will Be 'Given Up' For Workers' Education Classes. The Existing Practice

Amounts To Deviation From Agreed Norms And Adversely Affects Effective Use Of

Working Hours.





Us That- Change Has Taken Place ?

The Agreed Norms Regarding Time Concession For Attending Workers' Education Classes

Will Be Adhered To.


Works Committee Members are hardly available for regular work.

What' Is "Bad" About It ? How .Does It "Hurt" ?

Unexemplary Behaviour On The Part Of These Group Leaders And Opinion Makers; Affects

Adversely Use Of Working Hours.


What Can Be Done To Change It ? Vhp Should So It ?

What "Conditions" Will Prevail When Corrected ? What "Quantitative/Qualitative" Proof Will

Tell Us That Change Has Taken Place ?

Works Committee Members Will Be Available For Regular Work And Will Spend Time For

Works Committee Matters Only When Strictly Required To.


Tendency on the part of a workman to remain idle rather than take-up work of any other

nature, in case work of his category is not available.


Not Following The Spirit Of The Settlement/Classification.

- Such Idling Leads To Waste Of Time, Lower Productivity

- Higher Cost Of Production.






Workman will follow the Settlement to the Spirit and take initiative in making effective use

of working hours and not remain idle when work of his category is not available.


•Workmen Do Not Consider Productivity Improvement By 25% As Their Responsibility.


After 'Taking' The Benefit Of The Settlement, 'Giving' Not Regarded As A Responsibility,

Hence, The 'Giving' Not Whole-Hearted And We Have Unproductive Labour Practices.


Vhat Can Be Done To Change It ? Vhp Should Do It' ?

What "Conditions'' Will Prevail When Corrected ?



Workmen will consider 'productivity improvement by 25% as their responsibility and this

positive attitude itself will go a long way in curbing unproductive labour practices.

•This is not a practice by itself but a significant attitude that influences behaviour i.e.

results in unproductive labour practice


Workmen And Shop Representatives Flouting Procedures Pertaining To Mutual Exchange Of

Shifts


Non-implementation of Settlement. Foreman's authority taken for granted. Indiscipline.

Extra strain on Supervisors to control. Idling of Machines, Production affected. Workmen

coming in wrong shifts, cannot be used effectively Shop Representatives reluctant to work

in II sniff, neither they exchange shift with co-workmen. Some workmen continuously come

in a particular shift so that shift change notice- and attendance cards show different shift

continuously.





Us That Change Has Taken .Place ?

-Workmen And Shop' Representative Shall Abide By Clause 7.5

Of The

Settlement.


Extend Tea-Break Waiting For Tea And Snacks. (Tea-Breaks Extended As Workmen Read

Powai Pageant, Etc.)

What Is "Bad" About It '? How Does It "Hurt" ?

-Non-implementation of Settlement.

-The break instead of refreshing causes obstacle to restart work.

-Loss of Production time.

-Indiscipline






There will be effective use of working hours. Workman will implement Clause 5.6(i) & (ii)

and 5.2 of the Settlement. Management Requirement put forth in March 1983 to BKS will be

met namely :

During tea break workmen shall not leave their workplace, except for the

purpose of getting tea/snacks. Workmen shall not assemble at any place

during tea break, go to other departments, attend to personal work or indulge in any

recreational activities.


Partial Stoppage Of Work Between Shifts

What Is ""Bad" About It ? How .Does It "Hurt" ?

Reflects Lack Of Committment As This Affects Adversely Effective Use Of Working Hours






Workmen will display committment to the job and to making effective use of working hours

-there will not be partial stoppage of work between shifts.

The Existing" Practice

Tendency To Waste -Time At The Start And End Of The Shift And Also Before And After

Tea/Lunch Recess.

-Leaving Workplace Early 10 To 15 Minutes For Washing Before Lunch Or Close Of Shift.


- Non-Implementation Of Settlement Clause 5.6(I).

- Productive Time Wasted.

-Discipline Affected.

-Workmen, By Going For Lunch Early, Trying To Avail More Lunch Time For Playing Cards.





There Will Be Effective Use Of Working Hours Settlement Clause 3.6 Will Be Implemented.


Punching of Cards before changing into Uniforms


-Non-Implementation Of Settlement Clause 5.7.1

-Productive Time (Shift Time) Used Thereby Affecting Production.

-Tendency Of Workmen To Come Late Has Increased.

-Discipline Affected.


What Can Be. Done To Change It ? Who Should Do It ?



Clause 5.7.1 Of "The Settlement Will Be Implemented, There Will Be Effective Use Of

Working Hours.

The Existing. Practice

Spending time for planning and purchase of materials for Pujas,, Felicitations, etc.


Pujas/Festivals other than "Dassera Puja" i.e. other than those with Management Sanction,

are celebrated, for example :

-PCS - Shiv Jayanti started in the year 1978;

-P-BOT Ganpathi Puja started in the year 1977;

-P-BOT X'mas started in the year 1958;

-New Machine Puja's (Refer HCP's letter to BKS of April 1980.

Although one hour is officially permitted for celebrating Dassera puja, employees spend

more time on - making arrangements for Puja; - collecting requisitions for Management's

contribution form PWD, going to PWD for collecting Payment Vouchers and going to Cashier

for enchashment of Payment Vouchers.

2 to 3 employees from every dept. spend the whole day for Puja. Preparations for days for

collections, etc.

Time sperrt unproductively gets multiplied as shops are divided more and more.

How Did It Come About ? What Caused It ?


What "Conditions" Will Prevail When Corrected ? What "Quantitative/Qualitative" Proof

Will Tell Us That Change Has Take. Place ?

Workmen Will Not Spend More Time Than Officially Permitted; Workmen Will Not Spend

Time Out Of- Normal Working Hours For Any Puja Other Than The Officially Permitted

Dassera Puja.


The Entire Department's Workmen Want To Attend The Funeral In The Event Of Co-

Workman's Death


-More than the maximum number of persons fixed by the Works

Committee leave the workplace to attend the funeral. (Refer HCP's

letter to BKS April 1980).

-The Department is left with only 4 to 5 persons.

-Heavy loss in production.

-Workmen/Shop Representatives ask for concessional leave.

-Those not allowed also stand around and waste their time.






Only The Permissible Number Of Employees, As Per The Works Committee Norms Will

Leave.


Time Spent In Sports Activities During- Working- Hours


Adversely Affects Effective Use Of Working- Hours.






Management Requirement (March 1983)

Workmen will not be allowed during working- hours to attend to their personal work in

Credit Society, Sports Club, Personnel Department, etc.


Loss Of Productive Time In "Trying" Of Safety Shoes And Exchanging For New Safety

Shoes,

What Is "Bad" About It ? How 'Does It "Hurt" ?

Workmen Disappear For Hours Together For This Purpose.






Productive time will not be wasted in trying of Safety shoes and exchanging for new safety

shoes.


Some Workmen Do Not Clean Their Workplace And Sometime Leave Hardware On The

Board.


- Bad Working Environment

- Sometimes Quality Of Output Is Adversely Affected Leading To Customer Rejections

- Creating Accident Proneness.






Better working conditions. - Less customer rejection. Safer working conditions.


Arranging for Picnic, etc., and spending productive time for :

- collection of names and signatures.

- collection of money from the' workmen.

What Is "Bad" About It ? How 'Does It "Hurt" ?

- Since This Is Done During Working; Hours, Productive Time Is Wasted.

- Workmen Not Directly Involved In The Activities Also Misuse The Situation.






More Effective Use Of Working Hours. Collection Of Names And Signatures Should Not Be

Done In Normal Working Hours.


Reading Powai Pageant, Newsletter, Productivity Bulletins, Etc., During Normal Working

Hours.

What Is "Bad" About It ? How Does It "Hurt"?

Considerable Amount Of Time Is Wasted In Reading These And Discussing The Contents

During Working Hours.




What "Quantitative/Qualitative" Proof Will Tell Us That Change Has Taken Place ?

More effective use of working hours.

Reading of Powai Pageant etc. shall be done in Lunch break/ outside normal working hours.

The Existing:- Practice

Breaking for lunch earlier than the scheduled time -1st lunch break/ 2nd lunch break and

3rd lunch break

Leaving place of work for canteen earlier. Stopping work but not leaving the department.


Loss Of Productive Time -

- Loss Of Discipline

- Needs More Policing

- Disturbs Canteen Service


What Can Be Bone To Change It ? Who Should Do It ?


What "Quantitative/ Qualitative" Proof Will Tell

Us That Change Has Taken Place ?_

Workmen will not break for lunch earlier than the scheduled time


Getting ready to leave, as early as an hour, before actual closing time.


Loss of Productive Time

- Loss of discipline

- Needs more policing

- Disturbs canteen service






Workmen will not get ready to leave before actual closing time.

DFP / POLICY REVIEW COMMITTEE (PRC)

23 September, 1980

M – 63

We have been talking of open and frank communication as an essential first

Ingredient to attitude-change.

We have also send it is only thru. attitude change that we can bring about "Worker

participation in Management".

Now look at what has been happening at the PRC!! Take last 3/4 PRC S.

How many managers said anything at all? (Quantity)

Those few who cared(dared) to speak, did they have anything worthwhile to say?(Quality)

Was that an "Open & frank " (and serious) debate on issues which are grave, of far reaching

consequence to the future (the very existence) of this company ? Or was that an "Offensivedefensive"

win-lose type of talk (the little that did take place?) was there an "engineering"

of an agreement because people did not CARE to differ? How many people were

totally withdrawn? How many unwilling speakers being goaded into responding? How many

were goody goody yes-yes? Was there "team" in search of a solution? I can go on. But you

are a "Behavioral Scientist" and surely better placed equipped to understand/interpret the

"Communication-process". If this is the state-of-affairs at the very TOP levels of

management, what do we expect to achieve at the middle and lower levels? Before we talk

of participation in decision making at the lower levels, should we not do something about

participation at the top level? These people are the real DYNAMOS and if they take the

attitude of a BY-STANDER, where will this company end-up? The trends (adverse) shown by

SDK are only symptomatic-the disease is far below the surface.

You are the doctor of company's mental health and all of these symptoms could not have

remained unnoticed by you. We need to do something and do it fast-

Before we reach a point of no return !

In the last 4 days, I have been "listening" to some 4/5 DGM S . (a kind of attitude survey)

Next week, I hope to listen to the GM S . You have your own "access" to this group (on the

pretext of Pest - Appraisal-Trg, etc.)

I am sure you can "Uncover" a lot of attitudes. We (you and I ) need to get together and

develop a strategy of how can we bring about this openness. I hope you will help.

PARTICIPATIVE WORK CULTURE

23 Jun, 1987

M – 64

Will develop gradually as we start to dismantle (also gradually) the "barriers", the

"distinctions" which arbitrarily and artificially separate employees into

Unionised Employees &

Mgmt Employees

(or Bargainable)

(non-bargainable)

So we must start by making a list of "things" that divide, whether

•Physical (Toilet / Canteen / Transport etc)

•Procedural (Gate Pass / Permission / Attendance etc) or

•Attitudinal (Invitations / Recognitions / Trg etc)

Then we should prepare a 13 year calendar (till 2000 A.D.) and draw up an ACTION-PLAN of

what we may wish to call

"PROJECT INTEGRATION"

It can be divided into following periods

Phase-I ----------1988-1992

Phase-II----------1992-1996

Phase-III---------1996-2000

Because these years are COD negotiation years.

The dismatling process should commence with things which are easiest to dismantle. This is

because of "resistance to change" on the part of Sup/Mgr-Staff. They will feel a further

erosion of their "prerogatives" & "power".

So our skills will lie in making this group see the benefits accuring from such a process.

Some concrete results-Some positive response form the Unionised group to our "Overtures"

. The Union office bearers and shop-reps must be told how-much the success of the process

will depend upon their "response" to the initiative being taken by Sups / Officers/ Managers.

Such positive response alone can enthuse the Supervisors to take the next step.

Govt. is actively working on bringing out a law, making "Worker Participation in

Management" compulsory. This may come out before end of this year.

This is all too sad - but what else can a Govt. do if management do not come forward

willingly and voluntarily!

The law is an ass-and so it will make a further mess of an already "messy" IR situation

prevailing in the country.

This is because a law can only prescribe

•Rules &

•Procedures

Law cannot make people change their "attitudes".

So all that we can expect (from the law) is the litigation to increase.

It is for this reason that we must accelarate the process of participative Work-Culture that

we lauched at Powai Several years ago. The action-plan is needed to monitor the process

and measure the progress.

In the enclosed sheet, I have tried to list a few things where "Inequalities of Treatment"

exist between the unionised and the management staff. The list is by no means

comprehensive. I am sure you can add many things.

I would be happy to help in any way I can.

Regards,

HCP

FACTORS AFFECTING DECISION-MAKING:

26 April, 1982

M-65

1.Present size of L&T and the fast rate of growth

2. Locational Constants

a.Large work force at Powai

ISSUES OF DECENTRALIZATION

b.Different groups at Powai (having different cultures -different skills-different

products-different work ethics-different approaches to problem solution)

BUT

c.To deal with Common external agencies who do not recognize these differences

and tend to treat L&T (especially Powai works) as one homogenous monolithic

entity (which it is not )

Eg. Central & State government Municipal/Local authorities . The Union / Labour

commissioner Govt. Agencies (Customs / Excise / Octroi etc) Banks, Financial Instiut ions

AIMO/AIEI/EFI etc.

Irrespective of the divergent needs of the groups the decisions to be conveyed to these

agencies have to be consistent and conveyed by a common spokesman of the company.

As the company grows and as the institutions and the regulations proliferate (which they

invariably do ), the common spokesman (eg. GM(Delhi) - GM(Powai)-GM(F)-

DGM(Personnel)-DGM(Public Relations) etc etc.) will need to know more & more of the

group operations to be able to synthesize, group-views before presenting to external world.

3. COMMUNICATION

How accurately and speedily will the decisions get conveyed to all of these employees for

whom these decisions form a Vital imput (For their own Secondary decisions) -will be a

crucial factor in the years to come.

Besides making a "Decision Inventory", it will also be necessary to make an inventory of

persons (or levels) upto which these decisions will get conveyed.

Needless to add that some research on the means/methods/modes of communicating these

decisions (Decision-Channels?) - will be required.

While deciding 'who to communicate', the need-to-know will of course be the major factorbut

hierarchy cannot be ignored. There are instances of some Senior Manager feeling

unhappy at being left-out of some meetings where their peers have been invited, even

when they were in no position to contribute to the deliberations. This even led to feetdragging

in the implementations of the decisions taken-perhaps for no other reason than

that the "Sense of enlarged Participation" was missing.

A large group may mean a few "Superfluous" persons and waste of their time but trying to

form a small group, strictly on a "need-to-know" basis, could sometimes leave out an

important person.

4.THE "SERVICE-MALADY"

While talking of participation in decision-making, I cannot leave out what I consider to be

the "Service-Malady". While taking any operating decision it is quite common to involve only

the persons immediately concerned with the same and leave out all others.

Let us take a simple example of working-out the next months production-schedule. I would

be surprised if the following persons would be invited to such a meeting.

1. The maintenance Engineer

2. The Quality-Control Engineer

3. The Stores Officer

4. The Labour Officer

5. The Cost Accountant etc etc.

These are treated as "Peripheral" or "Service" functions. It is surprising that these

functionaries do not get a "Sense-of-belonging" or being in the mainstream and therefore

their commitment is very low? This is traditional Line Vs Staff dividing line which is counter

productive in the modern context.

In these days who likes to be remembered only when things go wrong? Who wants to be a

mere supplier of data/input or only a recepient of decision to be implemented ? No one likes

to feel that his labor (or mental skills) are being purchased under a legal contract as a

factor-of-production like machinaries or raw materials.

Such a process of "Brand Consultation" is quite likely to further slow-down the decisionmaking

at L&T . but will certainly improve the quality of such decisions and the speed with

which these will get implemented.

To counter the slowing-down effect of the "Participative Style" of decision making, let us

now turn our attention to the next factor viz.

5. THE DELEGATION-IN-DECISION MAKING

In my Circular at. 16-4-1970, I have listed the factors which inhibitdownward delegation of

decision making. These factors are as much Valid today as they were 12 years ago. To

these we may add what SKB has put down on page 2(items) of his note viz.

RISK AVERSION

It is said that the publicity/propaganda machine of a U.S Presidental candidate trumps-up

such a fantastic image of the man that if he gets elected, he finds it impossible to take any

decision which may tarnish that image! It is as if he is standing in the middle of a room with

mirrors on all sides (including floor & ceiling) and he is expected to project a perfect profile

in each of the mirrors!!

L&T seems to be caught in a somewhat similar predicament. May be we have put ourselves

on a pedestal (or in a fish bowl) where we are under constant scrutiny by the outside world.

May be we have allowed ourselves to believe that we are infallible-we just can't make

mistakes !! What would others think-the financial institutional /the banks/the

competitors/the shareholders/the govt. /the public-if there was a mishap?

To us the consequences are fatal and therefore we must check and recheck the entire range

of possible consequences before taking a decision. Perhaps our thinking gets

stymied/Paralysed due to this fear.

Now how is any Organisation different from a human-being in

- Its external search of "Happiness"

- Its limited options

- Its Constraints (internal & external)

- Its Information-gap

- Its capability to "alter" the environment (the limited resources)

- Its successes and "failures" ?

There are bound to be some errors/mistakes/failures when we start delegating downward.

But this is inherent to any process of learning. One new could be

"There are no mistakes in life-there are just opportunities for learning".

• As we grow fast and

• As we induct a lot of people form outside (we must, for cross

pollenization) who do not know our decision-rules (only a few are written)

We are bound to make mistakes. But the fear of making mistakes should not / must not

prevent us from delegating downwards.

What we need therefore is

- Some more decisions-rules

- Far more performance-Criteria

- An atmosphere where no one will be hung for sticking-out his neck

- No stigma attached

- An atmosphere where an employee would own-up his mistake (and not cover it up)

and come forward on his own to discuss it objectively with his boss to turn it into

a truly "learning -exercise".

The next task is to decide/define what could be / should be delegated.

The scientific method to determine this would be

1. To define the rules at each level of management hierarchy

2. To fix the responsibility for the tasks to be performed

3. To set performance criteria

4. To lay-down decision-rules

Since this would be a time consuming exercise, an acceptable short-cut would be ask the

secretaries of all Managers to divide all incoming papers into two sides viz.

1. Where no decision is apparently required. This would be the papers where the sender

merely wishes to keep informed. No decision is requested of you (although some

senders of messages are quite subtle!) . You are merely required to store the

information in your grey cells (the memory bank) for possible future use.

Some of these messages are of the nature.

"I am pursuing this particular line of action and propose to continue with the same

unless you (the receiver) have some violent objection".

2. Where the recepient is "expected" (by the sender) to react or give a decision.

It is this second pile of papers in which we are interested. These are papers where a

decision is requested. So these are the papers where delegation is possible. Even

documents requiring only your signature fall in the category.

Since signature /authorization is your approval of somebody's decision! Even a

ratification means the same. It implies that you (the recepient) have an option not to

approve/ratify by refusing to sign.

To each of this incoming papers requiring YOUR decision, the secretary could attach a

small pink slip which could read.

I am unable to delegate this to someone because

8 factors listed in my circular of 16.4.70 + some more

It MSSPL was to collect just one days slips from the tables of all the managers, we would

know

- What prevents L&T Managers from delegation decision-making?

A diagnostic study of this type could possibly lead to what should be done to encourage

delegation. Such a study would produce a comprehensive "inventory" of the decisions being

taken/delegated by managers all over L&T. It would certainly help in categorizing the

decisions such as :

- Strategic Vs Tactical

- Short term Vs Long term

- Policy Vs Operational

- Major Vs Minor (resume committed)

- Pertaining to Physical Systems Vs Information systems

- Restricted to group or repercussions likely to be felt in the other groups.

- One-time or of repetitive nature.

- Data-based or Intuitive etc etc.

If a check-list incorporating the above mentioned categorization was to be prepared and

used by MSSPL study-team, it could bring into sharp focus the entire decision-making

process at L&T. A better understanding of this process could lead to better decision rules.

MOTIVATIONAL CLIMATE

I have mentioned this quite at some length, during my presentations to

-PRC in 1980

-OCM in Feb.81

Some 10 years ago, Managers used to earn much more than a Supervisor and considerably

more than a worker. They also felt that much more responsible.

In 1982 the gap has been largely bridged with the wages of an unskilled mazdoor equally

the stipend of a Diploma Engineer!- at the beginning of the grade! On the other hand the

Responsibility gap has widened! Absolute Job-Security (thanks to our labour-laws) and

militant trade-unions have taken all fear out of a workers mind, leading to rampant reverseexploitation

in the high-wage island companies like L&T.

In Singapore Prime Minister Lee has been raising workers wages on purpose so that the

industries would be forced to get out of "low-technology" products-which cannot sustain the

high wages-and get into "high technology' products which could compete abroad.

Our government has managed to raise the wages-without any purpose! And what is more

we cannot 'fire' low-skill people and 'hire' high-skill people-even if we can continue to keep

shedding low-technology products and keep getting into high-technology products-which is

itself not so easy for a company like L&T.

By 1992 the income-gap would have been reduced to nil. The cases of drivers whose takehouse

pay exceeds that of his director-boss would no more be isolated! By 1992, I visualize

that almost 50% of the persons whose names appear in the Employee's Details (persons

drawing >= Rs. 3000 pm) in L&T' s. Annual Report would be "Unionised"! - and this number

would be of the order of approx. 1000 persons out of a total 2000 in that years report!!

Any debate on whether this is a welcome trend or not is meaningless. Any debate on

whether any intelligent boy would anymore want to spend 5 years getting B.E./MBBS/C.A. is

also meaningless.

The only meaningful question is

"How do you make all the 2000 persons (the unionised and the managerial feel and act with

equal responsibility?")

With several companies granting a monthly wage increase of Rs. 400/500 (e.g. Bajaj) in

1982 to their unionised employees, L&T will find it extremely difficult to maintain the

present wage disparity (if any) between the unionised and the supervisory staff. If this is

coupled with increasing worker indiscipline and union militancy there could be severe

erosion of supervisory and the managerial morale and lowering of managerial commitment.

What is a possible solution?

I have tried to provide an answer in my OCM presentation of Feb. 81.

There will have to be a complete change in the managerial attitude-from the corporate

management down to the shop-floor supervisor.

No more shall we assume that we the managerial staff alone shall decide all important

matters. The union and the workman must share some of the decision-making

responsibility-starting with the matters of "How" followed by Where, When, What and finally

Why.

Having demonstrated that a wage-gap (and therefore a responsibility-gap) is impossible,

the worker participation in management becomes inescapable!

If we wish to remain motivated (anything otherwise is suicidal ) and avoid high bloodpressure,

the only sensible thing to do is to completely change our attitude.

COMPUTER PROJECT

February 22, 1983

Computer Project

To,

Mr. N. M. Desai

Chairman,

Larsen & Toubro

I enclose herewith:

a) Draft of a Declaration of Corporate Intention

b) An organization proposal for the computer group covering

- The Manufacturing Organization

- The Marketing Organization

- The Support Organization

Yesterday, at the TMM, you spoke about the gap that exists between

L&T – the Image

and

L&T – the Reality.

You also mentioned that our single biggest resource-gap was

“The Managerial Resource”

Half-a-century ago, in another country (U.S.A.) in another co. (General Electric), another

chairman (G. Mortimer) had called a meeting of all his divisional managers to prepare a

long-range corporate strategy.

At the end of a 3 day meeting, Mortimer summed-up in the following words:

“It will not be the land or the buildings or the material or the finances which will pose any

problem to the growth of General Electric, but it will be the managers who will have to

manage these resources. If we succeed in building-up a team of motivated managers, the

other resources will come chasing us.”

And, in course of time, this became the company, which adopted as its slogan

“At General Electric, progress

is our

Most Important Product”

In our own modest way, L&T management organized a “Seminar on Long-range Planning”

on 17/ 18 March 1975 at Taj. We met and discussed 2 case studies and listened to Prof.

Bhattacharya.

This was 8 years ago! It may be worth holiday a repeat seminar to take stock of what have

we achieved during these 8 long years. How much has “Strategic Planning” become a part

of our culture and how much of it still remains E.T. (extra-terrestrial). Has strategic

planning only remained an “encounter”? What kind of hesitations are holding us back? What

is slowing down the “decision-making process”? Have we become stodgy and conservative?

Have we mastered the art of “buck-passing”? Have we all become so sensitive to any kind

of criticism – whatsoever – from our superiors that we simply refuse to “stick our neck out”

for the fear of its getting chopped off? Has management become so intolerant of “mistakes”

that no one anymore dares to make a mistake? Have we become “contented cows”?

Computers is only a “case-in-study” of the bold new-frontier technologies which, I feel, will

require a completely radical and innovative management culture. If we desire to become

IBM of India, nothing short of a cultural revolution is called for. People whose terms of

reference is sea and who, can therefore, only think in terms of “space-ships” are not going

to reach the stars!

Whereas we may have no escape from what Alvin Toffler calls a “Future Shock”, we can

certainly prepare ourselves for that and even use it to our advantage to change the very

character of our management style and the way in which L&T will conduct its affairs in the

21st century.

I am sending an extra copy of this note should you wish to circulate it to other members of

CMC.

DECLARATION

The management wishes to announce its intention to enter the business area of information

technologies. The technologies of immediate interest to us are:

1)Data-processing and process-control computers.

2)Computer Peripherals.

3)Telecommunications Equipments.

4)Office equipments.

There is enough evidence already to believe that the information technologies will alter the

very nature of the human-society during the 21st century. No aspect of human life will

remain untouched by the information explosion that can be expected to engulf the humanrace

during the next 20 years. Information Resource Management (IRM) industries will

overtake all other industries during this period and usher the world into an era of true global

network of voice and data-communication.

It is therefore, natural for us to consider entry into Information Technologies as “strategic”

to our financial growth.

Mr. M. H. Pheswani, Vice-President (Planning and Development) has been entrusted with

the responsibility to develop the corporate strategy to translate into operational action-

plans, the corporate ambitions in the entire field of information technologies.

I, however percieve the process of strategy development as one which should harness the

synergetic capabilities that already exist within the L&T organization. Within our groups,

there must be several individuals who are competent to contribute to the development of

the corporate strategy based on their qualifications, or experience. Some of them may wish

to associate themselves with this new activity beyond the strategy-development stage.

Those L&T-ites who consider themselves qualified and competent and wish to participate in

the new activity, are invited to submit to the concerned General Manager, a “selfassessment”

report, clearly setting-out their achievements and potential to become

members of the new group which will be formed in due course, to look-after the new

activity.

This is perhaps an un-orthodox approach. But then there are times when an organization

must give up the conventional approaches – especially when an organization wants to enter

a field where “innovations” abound and “creativity” is the keyword to success.

POSSIBILITY OF A 5-DAY WORK-WEEK

May 22, 1985

Work-Week

To,

Mr. N. M. Desai

Chairman,

Larsen & Toubro

While we were at Awarpur on 14 th March, you had mentioned this to me and asked me to

examine the pros-and-cons.

In the enclosed note, I have confined myself to examining the “cons”.

I have kept out detailed calculations which can be explained in person.

Incase a slide-presentation is required, I would request a week’s notice.

With kind regards.

Enclosed: 3 folders.

POWAI

A 5-Day Week Proposal

- Highlights.

1. Impact On Production

Reduction in the total working-hours (and consequently in the effective working-hours) is

15%.Therefore OUTPUT will reduce to the same extent.

IMPACT:- Rs. 19.65 Crores (for 1985)

Impact On Contribution

Assuming an average contribution of 12% off-top, reduction in contribution will be approx.

Rs. 2.4 Crores.

3. Impact On Unit-Cost

A 15% reduction in OUTPUT, will mean that the fixed cost (about 60% of the total cost) will

have to be recovered from 85% of OUTPUT.

As a result, cost of 85% of OUTPUT will increase by 10.59% - say 11%.

Consequently cost/unit will increase by 11%.

4. Further Impact On Contribution

Assuming that we are not able to increase our unit sale–price (to compensate for the

increase in unit cost), it will only go to reduce the contribution further. Contribution off-top

will reduce from 12% to 2% as shown below:

Before

After

1. Quantity 100 100

2. Unit cost 1.00 1.11

3. Total cost 100 111

4. Unit sale price 1.1364 1.1364

5. Total sales value 113.64 113.64

6. Contribution.

- Rs.

- %

13.64

12%

2.64

2.3%

Decrease in contribution % 9.7%

Thus output of Rs. 10849 lakhs (12763-1914) will fetch us only 2% contribution (as against

12% earlier), resulting in a loss of 10% i.e. Rs. 1085 lakhs.

5. Impact On Hourly-Rate

(Labour & Overhead)

Labour-costs and overhead costs remaining fixed and available man/ machine-hours

reducing by 15%, the hourly-rate will go UP by 18% as shown:

Before

After

COST (Rs) 100 100

Man-M/C hour 100 85

Hourly-rate 1.0 1.1765

Increase 17.65%

6. Impact Of Paid Holidays/ Cl-Sl-Pl

The cost of any future increase in the “Quota” of these, will mean an extra production-loss

of 0.07% for each day.

POWAI EXHIBIT A-1

WORKING-HOURS / WEEK

NUMBER OF DAYS /

WEEK

OPTION #1

OPTION #2

47 HRS.

40 HRS.

6 DAYS EXISTING ARRANGEMENT POSSIBILITY #1

5 DAYS NOT PRACTICAL POSSIBILITY #2

This will result in each shift of 10 hrs. (or 3 X 10 = 30 hour day) resulting in 6 hr. total

overlap resulting in a loss of 9,68,000 man-hours per year.

POWAI EXHIBIT A-2

ASSUMPTIONS:

1) All the employees at Powai & Madh who are presently working 47 hours per week,

will work for 40 hours per week and observe a 5 dat week.

2) There will be no corresponding reduction in the remuneration of employees.

3) “Effective” working hours will reduce in proportion to the reduction in total

working-hours.

4) Number of Paid Holidays, Casual Leave, Sick Leave and Privilege Leave will remain

unchanged.

5) Labour productivity will remain unchanged i.e. output per man/ machine-hour will

not change.

POWAI EXHIBIT B

IMPACT

40 HRS / WEEK WORKING

5 DAY WEEK 6 DAY WEEK

Effect Rs. Lakhs Effect Rs. Lakhs

(per year)

(per year)

On Production (at Sales Value)

due to :

1) Reduced Working Hours (by

14.9%)

2) Paid Holidays

Decrease

(1914)

Decrease

(1914)

3) Casual Leave

Decrease

( 7 )

Increase

+ 51

4) Sick Leave

Decrease

( 7 )

Increase

+ 51

5) Privilege Leave

Decrease

( 14 )

Increase

+ 94

Decrease

( 23 )

Increase

+ 173

TOTAL DECREASE ( 1965 ) DECREASE ( 1545 )

POWAI EXHIBIT C

40 HRS / WEEK WORKING

5 DAY WEEK 6 DAY WEEK

IMPACT

Effect

Rs. Lakhs

Effect

Rs. Lakhs

(per year)

(per year)

On PBT due to

1) Loss of Production

(taking PBT @ 12% of

Sales Value)

Decrease

(236)

@12% of

1965

Decrease

(185)

@12% of

1545

2) Higher Unit Cost

3) Saving in Transport

4) Saving in Canteen

Decrease

Increase

Increase

(1179)

+ 3

+ 29

Decrease

(917)

-

-

TOTAL DECREASE ( 1383 ) DECREASE ( 1102 )

POWAI EXHIBIT D

STORES – CREDITING (AT SALES VALUE)

BUDGET 1984 – 85

Rs. Lakhs

1) PSE 46

2) PEW 4080

3) PSW + MSW 6538

4) P-PACK 2099

Total 127,63

1. represents only Powai Service Station.

2. is exclusive of PPE & Customer materials.

3. is exclusive of FSW, ASW & Hebal.

POWAI EXHIBIT E

MAN – POWER STRENGTH

LOCATION

POWAI MADH TOTAL

2 nd shift 1250 45 1295

3 rd shift 280 - 280

Sub-Total 1530 45 * 1575

1 st + General Shift 5596

Total 7171

* 22% of total Manpower of 7171.

POWAI EXHIBIT F

PARAMETER

General Effect

Non-Tangible

Tangible

1. Over-loading of “Service”

departments

2. Demand to substitute “holidays”

falling on week-end for working days.

3. Problem of maintenance men/

security staff working on weekly-off

and getting compensatory off.

Yes

Yes

Yes

4. One day’s absenteeism would amount

to 20% (one day out of 5 days)

against current 16% (one day out of 6

days).

Yes

5. Impact of General Power-cut Yes

6. Unanticipated problems with regard

to various types of “leave”

Yes(to some

extent)

7. Increase in incidence of prefixing/

suffixing leave to week-end

Yes

8. Reduce contact with outside world Yes

9. Increased tendency for “outdoor”

duty at beginning/ end of working day

(due to longer working-hours)

Yes

10. Delay in dispatch (FG) Yes

11. Delay in receipt of R.M. Yes

12. Increase in Working Capital Yes

13. Increase in Overtime Yes

14. Increase in Hourly-rate Yes

15. Decrease in Profitability Yes

16. Decrease in Physical output due to Yes

over-lap of shift time

17. Non-availability (reduction) of

“Voluntary” extra working of

supervisors and managers

Yes

L&T HOUSE EXHIBIT A

WORKING-HOURS PER WEEK

WEEK CONSISTING OF

OPTION #1

38 ½ Hrs.

OPTION #2

35 Hrs.

5 ½ days EXISTING ARRANGEMENT NOT WARRANTED

5 days POSSIBILITY

L&T HOUSE EXHIBIT B

WORKING HOURS / DAY

MONDAY TO FRIDAY

SATURDAY

EXISTING

Hrs. – Mins.

7 – 0

3 – 30

POSSIBILITY

Hrs. – Mins.

* 7 - 42

-

* A 10% longer “day”

L&T HOUSE EXHIBIT C

EXISTING

EFFECT DUE TO PAID – HOLIDAYS

LOSS OF MAN – HOURS IN 1985

UNDER PROPOSED 5 DAY

SITUATION

INCREASE

51,600 54,900 * 3300

* L&T HOUSE + JK BLDG + EROS

476 employees X 15 days X 0.7 Hrs/ day = 5000 Hrs.

LESS

FOR SATURDAY

476 X 1 Day 3.5 Hrs/ day = 1700 Hrs.

NET = 3300 Hrs.

L&T HOUSE EXHIBIT D

MAXIMUM ELIGIBLE LEAVE

Existing

Proposed

Possibility

Increased

Loss of Total Man-hours /

year due to

183,300 201,600 18,300

P.L.+S.L.+ C.L.

Loss of Total Man-hours

as a %age of Total

available Man-hours

22.7% 25% 2.3%

L&T HOUSE EXHIBIT E

DIS-ADVANTAGES OF 5-DAY WEEK

1. Overtime

Small but urgent jobs coming up on Friday evening would call for overtime working on

Saturday.

Thus overtime may go up.

2. Office Discipline

Due to longer working hours on week-days (7 Hrs. – 42 min. in place of 7 Hrs.), late

coming, early going would increase.

This is already a serious problem in the city-offices.

3. Casual Leave (Cl) / Sick Leave (Sl)

Prefixing/ suffixing of a single day CL/ SL to the long week-end may go up.

4. Outstation Travelling

Sales staff would want to return to their home-base for long week-end and restrict outstation

tours to five days only.

5. Interaction Between Offices

Introduction of a 5 day work-week at L&T House and (possible) extension thereof to

other regional and branch offices (with differing paid holidays) would reduce the

“effective” interaction days between various offices.

6. Effect On Powai & Other Manufacturing Locations

Introduction of a 5 day week at Bombay city offices, will result in an irrestible pressure

to have a 5 day week at Powai. This agitation may well be spear-headed by the

Managers and Supervisors of Powai who are already unhappy at having to put in a 47 Hr

work-week (as compared to 38 ½ hrs at city-offices).

Many of these are already working 50/ 52 Hours-a-week since factory works 6 days and

they are required to stay-back on Sunday afternoon.

This pressure will be “irrestible” considering that during the last 4/ 5 years, some of the

leading engineering firms have gone to a 5 day week at their factories.

1. PHILIPS

WEEK – DAYS

One week – 6 day

One week – 5 day

WORKING HRS / WK

Ave. 44 Hrs

2. VOLTAS(Chinchpokli) 5 day 44 Hrs – 20 mins.

3. VOLTAS (Thane) 5 day 42 Hrs – 30 mins.

4. SIEMENS Alternating

day week &

Ave. 44 Hrs.

5 day week

5. GODREJ 5 ½ day 45 Hrs.

6. RALLIS 5 day 42 Hrs – 30 mins.

5-DAY WORK-WEEK IN CITY OFFICES

August 14, 1979

Work-Week

To,

Mr. S. R. Subramaniam

Vice-President,

Larsen & Toubro

I have examined this from 2 view-points:

A. Disadvantages to the city office staff/ city office operations:

1. Longer working hours as a result of spreading 38 ½ hours in 5 days.

2. Late-coming / Early-leaving will further go-up.

3. If 5 day working is introduced in the Bombay city offices, it would be difficult

to resist introduction in regional / branch offices. With differing regional

holidays, this would reduce the effective “interaction” days between various

offices.

4. Customer visits will crowd the 5 days and thereby reduce effective hours for

other work.

5. Sales staff will want to return to the home-base for the long week-end and

restrict traveling / outstation visits to 5 days only.

B. IMPACT AT POWAI-WORKS:

Any decision to implement a 5 day week at city offices would result in a similar demand

from Powai works employees.

It is quite likely that the union may let the Supervisors and the Managers of Powai to

initiate such a demand. It would be to their advantage in 2 ways:

a. To embarrass the Management

b. To keep their options open.

If the Management were to accede to any such demand, it can only be with the concurrence

of the Union. If it can be made to appear as a “Management – Requirement” to

change the no. of working days at Powai, the Union would be in a position to submit its own

“conditions” – two of which will be most prominent viz.

- 38 ½ working hours for all

- no reduction of wages.

In the enclosed chart, I have tried to illustrate 6 different situations, which show the most

likely combinations of the working-hours for different category of employees. Of these

situation #1 and situation #2 are the most likely and the two-ends of the spectrum.

Whereas, the major obvious dis-advantages have been shown on the chart itself, I would

like to list below some of the general problems, that could result from 5 day working.

The General Problems :-

1. Overloading of:

-Canteen Services

-Transport Services

-Medical Services

2. Holidays falling on long-week-end :-

There could be a demand for substituting these on “Working “ days.

3. Since a good number of maintenance workmen work on the “Weekly –off” and get

a compensatory “Off ” on a working day, a long (2 day) week-end would pose

problems.

4. One day’s absenteeism, instead of being (16%) 1/6 th of a week, would become

(20%)1/5 th of the week.

5. Impact of a general power cut would be much more sever than at present.

6. There could be some un-anticipated problems with regard to PL/SL/CL.

7. Prefixing-Suffixing of a Single-day SL/CL to the long week-end may go up.

8. Reduced contact with the outside world in general.

9. There could be an increased tendency for “outdoor visits” to customers/ suppliers at

the beginning and at the end of the working day.

10. COST will certainly go-up due to

a. Delay in dispatched of Finished Goods and higher FG inventory

b. Delayed arrival of raw materials / components from suppliers leading to assy.

line hold-ups and higher WIP inventory – also a tendency to hold higher

stocks of critical components.

c. Working Capital requirement going up due to higher WIP / FG / inventory.

d. Overtime working on long week-end may go up steeply.

e. If man-hours and / or machine-hours available in a year, are reduced, the

“hourly-rate” will go up by the same extent. This would have the effect of

pushing-up all cost-estimates. If on the other hand, the physical output per

hour does not go up by the same extent, profitability will seriously go-down.

f. It must be remembered that even if the 47 working hours are not reduced but

equally spread over 5 days, the physical output will go down due to the overlap

of shifts.

DIAGRAM

11. GENERAL

Supervisory / Managerial staff at the factory, who put in extra working hours, will no

more be able to do so.

Trade Apprentice training will suffer (Quantity & Quality-wise)

For want of time, I have not been able to summarize the foregoing comments into

“compartments” of

A. Impact on Production – Quantity

- Quality

- Cost

B. Impact on productivity

C. Impact on Discipline & Morale

D. Use of Leisure hours & Quality of Life.

E. Impact on Services & Infrastructure.

F. Long – term Future implications.

COMMUNICATING WITH UNION LEADERS

INDEX

Sr. No.

TITLE

1 The Last Lap

2 A Message Well Received

3 Miles To Go

4 The Cart Before The Horse!

5 The Battle of Survival

6 The Nector-And The Poison!

7 Management's Charter of Demand

8 The Truth On Page 3, Para 4

9 The External Enemy

10 Please, Call A Gate-Meeting

11 Please, Honor Your Commitment

12 Productivity In P-Pack

13 Set a Personal Example

14 Managing Without Shop Supervisor

15 A Groovy Suggestion?

16

Technological Changes & Employment - Labour Management Cooperation

17 House Keeping - Is For Everyone

18 Congratulations!

19 Towards A New Horizon

20 What We Have Achieved So Far

COMMUNICATING WITH UNION LEADERS

THE LAST LAP

January 1, 1980

U-1

To:

Dear Shop-Rep,

Annual Sports day has come and gone.

Those of you who were present at the Parel Grounds on Saturday must have been thrilled

by the running races

- the 400 meters

- the 800 meters

- the 1500 meters.

If the spectators were so excited, imagine the condition of the participants'. Many months of

rigorous training and practice was being tested. And it was the last lap which decided who

will win. But then in an individual event only one man can win.

Right now, we the employees at Powai are in the last lap of a Team Event in which we can

all win - or all lose !

In our production race, fourth quarter of the year is our last lap (Jan -Feb-Mar). If we want

to win (and I am sure we do), we must strain every muscle - every nerve; bring out the

reserves of our energy.

You, my friends, have an important role to play in this Team Event because you are the

Team Leader. You can ensure that all the members of the team pull together, equally and in

the right direction. The Shop Foremen are the coaches. Consult them when in doubt.

Hurdles must be overcome with determination.

You will decide whether we will win this 600 working-hour race. The last lap is on and the

victory-stand is waiting.

In this race, there can be no spectators !!

A MESSAGE WELL RECEIVED

September 26, 1980

U-2

To:

Shri

The President

Bharatiya Kamgar Sena (BKS)

Sena Bhavan

Shivaji Park

Bombay 400 028

Dear Shri

On behalf of the Management of L&T and on my own behalf, I wish to compliment you, for

your spirited speech delivered yesterday evening to a group of shop-representatives.

I was specially moved by your earnest message to the workmen to improve their all-round

PRODUCTIVITY, for building up our nation. I am sure, your appeal would inspire them to

strive hard to realise the productivity improvement targets embodied in the latest 4-year

agreement.

I wish to convey my sincere thanks for sparing your valuable time in visiting L&T. We look

forward to many more visits.

Thanking you and with best regards,

H.C. PAREKH

MILES TO GO / FINANCIAL EXPRESS

October 27, 1980

U-3

To:

Dear Mr.

I enclose an article that appeared in Financial Express on 24th instant,

- written by Dr. Pennathur

- about his visit to Powai Works on 5th September 1980.

Dr. Pennathur has glorified our joint efforts at improving productivity thro' "Worker

Participation in Management".

May be this is the way we appear to him when he compares us with what he has observed

elsewhere.

But, we know that we are far from the 'ideal' picture painted by him. In the words of poet,

Robert Frost, "...... and I have miles and miles to go".

Could we ever become an 'example' to the rest of the country? The thought is not only

challenging, it is frightening!

Frightening because of the 'responsibility' it would cast upon us.

We would be, in that case, setting up ourselves on a pedestal for the rest of the country to

watch. Can we live up to their expectations? Can we live up to our own image?

May be not - but, because of that, shall we give up a challenge?

THE CART BEFORE THE HORSE !

January 25, 1981

U-4

To:

My dear Mr.

Sub: A Scheme to link up Productivity with Bonus

Ref: Your letter dt. 28th December 1980

In 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 expectations 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 of 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

workmen averaging approx. Rs.200/- per month. On '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. the then General Secretary

and myself) and the number of monthly meetings taking place, it would be 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 effort/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 morel

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?

Yours sincerely,

H.C. PAREKH

THE BATTLE OF SURVIVAL

February 13, 1983

U-5

To:

Dear Mr.

Sub: Growth, Survival And Productivity

This is with reference to the discussions I had with you, & some of your Jt. Secretaries on

10 th inst. when I took the opportunity of briefing you on the Management's decision to wind

up the Company's activities in the area of Packaging Machinery manufacture and the

consequent task of re-deployment of the persons concerned.

In my recent letters to BKS Union, on the subject of 'Productivity' I have mentioned about

fierce competition to many of our products and the consequent threats to their survival.

When one or more competitor offers better-quality products or cheaper cost products (or

both), we lose our market-share and production-volumes go down.

On the other hand, costs keep on rising -

- the material costs

- the labour costs

- the financing costs etc. etc.

Rising costs force us to raise our selling-prices and we lose still more orders.

This vicious circle goes on and on;

Sometimes we succeed in breaking this circle by raising productivity and manage to survive

that product.

But sometimes, we fail and must give up the manufacture of such a product !

This has happened to us several times in the past. For example, in the past, we have been

forced to stop the manufacture of

- mild-steel vessels

- sheep-foot rollers

- domestic switches

- connectors

- marine junction-boxes

- diamond & T.C. bits

- drilling equipment etc., etc.

On several occasions, we have come very close to stopping manufacture of petrol-pumps.

And based on similar considerations, recently we decided to stop the manufacture of

'Packaging Machinery'.

One more product has fallen in the 'battle of survival' !

This means that, the group of persons who constitute the Packaging Machinery Dept. will be

required to be moved to other Departments/Units in order to save their jobs.

In a language that we - you, I, workmen - all understand, this means that we must-now redeploy

these employees in other areas of our operations.

You will recall that when we discontinued the manufacture of drilling equipment in Madh

Works, with your cooperation, we were able to re-deploy over 250 workmen in other areas

and thus, we were able to save their jobs. As compared to the re-deployment of Madh

workmen, the re-deployment of Packaging Machinery Dept. will not pose much difficulty

considering that only 22 workmen are involved.

The names of the persons affected are given in Annexure 'A'.

As mentioned during our meeting, we have started working on the preparation of a redeployment

plan and I shall make the same available to you within 10-15 days.

I wish to thank you for the understanding shown by you and your colleagues during our

meeting and I feel confident that, with your cooperation, we will be able to carry out the redeployment

exercise smoothly.

We must however, look beyond the immediate problem. By a copy of this letter, I am

requesting the Group General Managers to let me know if, in our other operations, there

exists areas of 'weaknesses/competitive threat' where we may run into a similar situation in

the foreseeable future. Early identification of products which we may be forced to

discontinue to manufacture in the months and years to come, would help the company do

some forward planning with regard to the manpower that may be rendered surplus. It would

enable all of us to do some thinking regarding the 're-training' of such employees and their

most effective re-habilitation.

With kind regards,

Yours sincerely,

H.C. PAREKH

THE NECTOR-AND THE POISON !

March 16, 1983

U6

To:

Dear Mr.

Sub: EMPLOYEE SURVEY

Almost a year ago, we had hired M/s. Marketing Business Associates to conduct an

employee survey at Powai and City Offices. With the cooperation of the Union, some 2500

Unionised employees were interviewed by 10/12 investigators, over a period of 6 months.

I was happy that, once the objectives of the survey were explained, not only you and your

colleagues joined in framing the questionnaire, you, in turn, explained the objectives to the

employees and urged them to cooperate with the investigators by being open and providing

frank and honest answers.

This cooperation on the part of the Union and the employees, in a totally voluntary manner,

is what makes the survey unique.

It is quite possible that other companies might have conducted surveys for an equally large

number of employees.

What makes our survey unique is,

- the coverage of subjects

- the depth of probing

- the treatment (conjoint analysis)

To the best of my knowledge, no Indian company has ever attempted ('dared' would be

more appropriate!) to ask its unionised employees:-

'Now that we are about to begin negotiations on the Charter of Demands, what kind of a

compensation-package would you like to receive?'

But we did.

And if the Management dared to think about this, you were even more courageous in

agreeing to the proposal!

I am sure, both of us did not quite know what to expect when the findings were submitted.

It was like agreeing to participate in the 'Dadhimanthan' - the churning of the Ocean; it

could throw-up anything disregarding your 'likes' and 'dislikes'.

Except this 'Dadhimanthan' differed from the ancient, in one vital respect:

The Management and the Union did not represent the 'Devas' and the 'Asuras' - and should

the survey throw-up any poison, we do not have a third-party. Lord Shiva to hold it in his

throat!

You have the MBA report with you for sometime now - and I am sure you are as much

surprised with some of the findings as I am. There are also a few which are more or less as

expected.

If you or your colleagues need any assistance in interpreting the findings, please let me

know. I can arrange for the MBA team to make a presentation.

But do not expect MBA to answer a question like

"Well, now you have found out what employees want but what are they going to get?"

The survey-findings can only help the Union and the Management to find an answer to

this question during the negotiations on the Charter of Demands.

And I have repeatedly stressed that any attempt to find an answer, must have, for its basis,

the acceptance of the principle of

'Post-performance Reward'

If we wish to conclude the negotiations in any reasonable length of time, it is essential that

we have an acceptance of this principle at the earliest.

Once you indicate your willingness to negotiate on the basis of this principle, we can jointly

start work on evolving a suitable formula and mechanism.

I earnestly request you to give this your serious thought. As far as I am concerned, I do not

see any other way employees anywhere in the world can expect to improve their standardof-living

(and not mere neutralisation of cost of living) without first and continuously raising

the productivity of their organisation.

With regards,

H.C. PAREKH

MANAGEMENT'S CHARTER OF DEMAND

November 8, 1983

U7

To:

Dear Shri,

I take this opportunity of wishing you personally, the Bharatiya Kamgar Sena and workmen

of L&T Group of companies, a Happy and Prosperous New Year (Vikram Samvat 2040).

I am sure you will recall my letter of January 25, 1983.

In that letter I had expressed the hope that the negotiations on the Charter of Demands

would be concluded amicably to the benefit of both employees and the Company. I had

pointed out that the Agreement, while improving the quality of life of the Company's

employees by increasing their remuneration, benefit? and facilities, should also improve the

financial and business health of the Company.

Every new Agreement imposes an additional financial burden on the Company and adds

directly to the cost of the Company's products and services. The company has, till date,

prospered despite these increasing costs, largely due to technological innovations, good

strategic planning, rational financial management, and correct make/buy

decisions. Unfortunately, increased productivity, particularly labour productivity, has not

been a factor in helping the Company to prosper.

In the 1979 Settlement, the Union had agreed to raise the levels of labour productivity.

However, this clause has remained largely unimplemented despite the best efforts of

Management. Labour productivity levels since 1979, have remained dismally stagnant at

Powai. The enclosed charts show productivity levels for some Units in Powai. It is not

difficult to see, that in almost all cases, the productivity levels over this 4-year period, are

far below the levels agreed to in the 1979 Settlement and unfortunately show no

appreciable upward trend. Before expecting any additional emoluments through a new wage

agreement, it is only fair that the employees deliver what the Union promised on their

behalf in 1979, in return for the enhanced wages granted to them then.

The Indian economy today is plagued by recession. The competitive pressures in a number

of the company's product-lines has always been high. Today, with the shrinking market,

these are even more acute. We are being forced out of some product-lines and are losing

ground in others because of non-competitive prices.

The Management now considers it vital that the financial cost of the new Settlement is

neutralised through labour productivity improvements. The organisation can thrive only if

employees agree to contribute something more for the additional emoluments / benefits

they receive through a new wage agreement, and the bulk of these additional emoluments

should be paid only after the company has realised the benefits of increased productivity. A

company can go on absorbing higher costs without increased productivity only at the

expense of its financial health. Therefore, it is essential that the Union accepts the principle

that the financial burden of the new Settlement be neutralised" through labour

productivity as the sole and just basis for all negotiations on the Charter of Demands.

In my letter of January 25, 1983, I had requested you to give a call to all employees of L&T

to immediately participate in a drive to increase productivity at least to the level which was

agreed to in the 1979 Agreement. I once more urge you, in the interest of this Company, to

make this call to the employees.

Increased efforts on the part of the workmen is only one way of improving productivity. The

Management is also seeking in these negotiations that productivity be increased throughi.

use of better machines, equipment and methods;

ii. enlarging jobs by adding duties, combining trades, increasing skill versatility

and job flexibility.

iii. eliminating wasteful practices, such as reporting late for duty, leaving the

workplace early, tardy resumption of work after breaks, frequent visits to

dispensery, Credit Society, Labour Department, etc., during working hours.

Our classification proposals and the 'Management Requirements' submitted to you, are

aimed at achieving these objectives.

I urge you and your team of Unit leaders to accept these proposals and cooperate with the

Management in implementing them.

I thank you for the constructive role the Bharatiya Kamgar Sena has always played towards

the Company and its employees, and I am hopeful of receiving your cooperation on this

occasion also.

I close with warm regards and best wishes.

Yours sincerely,

H.C. PAREKH

THE TRUTH ON PAGE 3, PARA 4

May 18, 1984

U-8

To:

Dear Shop Rep

Productivity

Months of negotiations are over and a copy of the Settlement is already with you – except

that this time it is a cyclostyled copy and the colour is light blue!

I assume that you have read the Settlement carefully. You are expected to study and

understand the Agreement. When a worker approaches you with a problem, it is your

privilege to explain to him the relevant clauses.

If you have some doubt yourself, feel free to seek an explanation from either the foreman

or the manager of your department. And as far as consulting your unit Joint-Secretary is

concerned, I don't think I even need to advise you on that !

But there is one clause in the Agreement which I personally wish to draw your attention to.

You have guessed it right; This is the clause on page 3, para 4.

By now, I suppose you have also guessed correctly what I am going to say next.

And do you know why you were able to guess correctly ?

Because you know the TRUTH;

- the truth regarding page 3 para 4

- the truth that it is a commitment for increasing productivity by 25% within 3 months of

signing of the Agreement.

- the truth that relatively there is very little improvement in the productivity-levels

anywhere in Powai during the 5 weeks since we signed the Agreement.

- the truth that an L&T worker is quite capable of increasing productivity by not a mere

25% but may be even 50% (as I mentioned at the Gate-meeting) if only he made-up

his mind to do so.

I have brought these facts to the notice of those who have made this commitment (see

enclosed letter-translated for you from the original English version). I sent it because I think

I owe them a feedback. I also furnished shopwise details at the Powai level Productivity

Committee meeting held on 8th May 1984.

Now I am writing to you because I feel, you too, ought to know my grave concern at this

alarming situation. I am sure your unit Joint-Secretary must have also. spoken to you

regarding his concern - after all he has signed the agreement on your behalf.

The point is - if the union has bargained hard (and I should know how hard!) and delivered

unprecedented fantastic benefits to the workmen, they have also committed, on behalf of

the very same workmen, to deliver 25% productivity increase.

If they have done this on your behalf given their word of honour - staked their personal

reputation - will you let them down?

But this is exactly what will happen if productivity does not go up, as promised, by 25% !

A feeling of let-down; And the Unit committee will not be alone in feeling this way. I too will

feel the same way!

There is still time. Can we, for once, prove to ourselves that we are men and women - of

honour ?

H.C. PAREKH

THE EXTERNAL ENEMY

May 22, 1984

U-9

To:

Dear friend,

I am inspired to dialogue with you once again. In the months to come, you will hear from

me and I do hope you will also talk to me. A dialogue is a two-way traffic !

If you are wondering why I was "silent" for the last one year or so, the obvious reason is

that the Union office bearers kept me awfully busy I and you cannot blame them since they

were merely following your wishes!

Coming back to what has inspired me again, someone asked me the other day in the worker

Education Class.

"Sir, why have you stopped sending us "Japan Works O.K.","Britain Works O.K." etc ?"

I turned around and asked others what they thought of these write-ups.

There were several voices, all at one time, saying that they had enjoyed reading these

articles and that they really missed these! Yes, they would like me to share with them what

is happening around the world in the matter of productivity and in the matter of industrial

relations (to me, simply "human relations in the industrial context"). So here we go again !

This time it is a real-life report on the American car industry - all the way from the city of

Detroit.

If you have an atlas at home, try this evening to locate Detroit on the map.

Way back in 1956, I spent one summer vacation in this city, working as a draftsman in a

tractor manufacturing company. Every Sunday (Saturdays I used to work overtime!) I used

to take a long walk on a road called "Grand River Avenue". Mile after mile after mile, on

either side of this road, one could see yards filled with thousands of second hand cars -some

of these hardly one or two year old models and none more than 5 years old !

The thought that used to pass my mind was - How cheaply are Americans able to

manufacture brand-new cars so that they can afford to buy a new car every third year?

Apparently they were able to produce them fast (in fewer man -hours than any other

country) and produce them cheap (at a lesser cost than anyone else).

This was 28 years ago when many of you were not even born and I had not heard the word

"Productivity" I In those old fashioned days, the Americans simply worked "hard" and

worked as a "team". They just had to be "best" and the "first" and in this one matter there

was no difference of opinion between the Unions and the managements.

From the enclosed article you will notice how the American car industry has completed one

full circle in these 28 years - from excellent Union-Management cooperation of 1956 to total

confrontation of 1970's and back to the cooperative mood of 1984.

But then it is natural to forget the internal differences and unite to protect yourself against

an external enemy. Could it be that this recent show of unity and cooperation is only

because the workers and the managers - both are equally concerned about saving their jobs

?

And if this is the reason, what would happen when the Japanese competition slackens? Will

the Union and the Management resume their attitude of confrontation? Today, both the

Union and the management regard Japan as "Enemy No. 1". When they have defeated

Japan through increased productivity (brought about by increased cooperation), will they

start fighting each other?

If this happens it would be indeed very sad.

Sad, because this repeating cycle (of hate and forced love) cannot go on very long before it

completely destroys the industry. I hope the American managements and Unions realise this

and learn to love each other naturally and permanently.

In L&T, our products are not facing any competition from abroad because imports are not

allowed.

But competition from other Indian companies is getting fierce. If you wish to know how

serious is this competition, request your production manager to invite the concerned Sales

Manager to your next unit level Productivity Committee Meeting. He will tell you that the

Indian customer today has many "options" - other than L&T.'

In L&T, can we take a lesson from Detroit, and learn to cooperate naturally while we still

have time?

H.C. PAREKH

PLEASE, CALL A GATE-MEETING ! / Productivity

May 28, 1984

U-10

To:

Dear Mr.

Sub: Productivity

I refer to my letter addressed to the Gen. Secretary of the BKS Union, L&T Unit, dated April

11, 1984 on the above subject, with copies to you and your Gen. Secy. and my

subsequent letter addressed to you dated May 9, 1984 with copy to Gen. Secretaries -

Sena Bhavan & L&T Unit, Powai.

As you are aware, all efforts are being made to achieve within three months from the date

of signing the Settlement an improvement of 25% in productivity, over the productivity

levels achieved during the currency of 1979 Settlement with the active cooperation of the

local Committee members.

I am forwarding herewith copies of my recent letters addressed to the Shop Representatives

on the same subject.

In the Powai-Level Productivity meeting held on 8th May 1984, the Gen. Secy. (L&T Unit)

has offered to speak to the Shop Representatives in this matter and assured us of his

team's fullest cooperation in the matter. He further assured that neither he nor his

colleagues would defend such workmen who are unwilling to give increased production.

As mentioned in my letter to you dated May 9, 1984, I am convening the Powai-Level

productivity Committee meeting on 8th June 1984 at Powai, and would greatly appreciate if

you could make it a point to attend this meeting and address the participants on improving

productivity to achieve the agreed levels.

I would also request you to address a gate meeting preferably on the same day to tell the

workmen to live upto the commitment made by the Union at the gate meeting held on 29th

March 1984.

To make it convenient for you, I am shifting the meeting of the Powai level Productivity

committee to 1.30 p.m. in the afternoon, so that you will be in a position to address the

gate meeting immediately thereafter. I assume you will issue the circular regarding the gate

meeting.

Around the 4th or 5th of June 1984, I would be sending to you statements showing

productivity levels achieved during the currency of the 1979 Settlement and April-May 1984

for your advance information which would be screened to the participants on 8th June 1984

meeting.

H.C. PAREKH

PLEASE, HONOUR YOUR COMMITMENT / UNION'S SUPPORT

June 20, 1984

U – 11

To:

Dear Mr.

Thank you for your letter dated June 7, 1984. I am pleased that you have re-stated, in no

uncertain terms, your Union's support for increasing Productivity.

I was extremely disappointed that neither you nor your Gen. Secretary was able to attend

the Powai-level Productivity meeting held on June 8, 1984. I understand that both of you

were busy with Union matters in certain other Organizations where the workmen are

represented by BKS. I would have had no hesitation to change the date and time of the

above meeting to suit your convenience had you informed me in advance. I believe that if

you had been present in this month's Productivity meeting and addressed a gate-meeting

thereafter, exhorting the workmen to live up to the commitment on Productivity made by

the Union in the Settlement, it would have given a tremendous boost to our Productivity

efforts at Powai.

I am enclosing a copy of the Minutes of the meeting held on June 8, 1984. In this meeting,

Deputy General Managers and Production Managers from various Units reviewed the

Productivity performance with respect to the levels during the currency of the 1979

Settlement. I am sure that you have already discovered through the figures I sent you

along with my letter dated June 4, 1984, that, though there have been improvements in

Productivity in some areas, there are several areas where Productivity is actually

substantially lower than the 1979 Settlement levels. Even in those areas where there have

been significant improvements in Productivity, these are far lower than the agreed target of

25% improvement over the 1979 Settlement levels.

The Unit Committee members have been trying to promote Productivity by reminding

workers of the commitment made on their behalf in the Settlement and by individually

counselling 'poor performers'. However, a renewed appeal by you and your Gen. Secy. at

a gate-meeting would make a tremendous impact on the workers.

I have stressed repeatedly in the past that several of our-product-lines are being subjected

to severe competitive pressures. We are being forced out of some product-lines and are

losing ground in others, because of non-competitive prices. This costly Settlement has made

matters worse. It is now essential for the Company that we have a substantial increase in

labour productivity to off-set these staggering additional costs.

This is a matter of vital concern to the Company and is an area where the Union can make a

tremendous positive contribution.

We are holding the next Powai-level Productivity meeting on July 6, 1984, at 0900 hrs. I

once again urge you and your Gen. secy. to attend this meeting and give a call for increased

Productivity at a gate-meeting thereafter. The 3-month period within which the 25%

increase in Productivity was to be achieved expires on July 11, 1984. If you consider it

necessary, we could agree to extend by 1-2 months, the period for reaching the agreed

target of Productivity improvement.

With warm regards,

Yours sincerely,

H.C. PAREKH

PRODUCTIVITY IN P-PACK

June 24, 1984

U – 12

To:

My dear

(Union Joint Secretary)

I attended 3 shop level meetings along with you/your Gen. Secretary/Managers.

2 days back, I once again checked to find out if there is any improvement since our last

meeting and I was told there is hardly any improvement!

I now get a feeling that my motivation is not working with the Shop Representatives!

But I still have hope and faith that your motivation will work !

Yours is a mass-production shop, where speed of the machine is controlling the OUTPUT -

only if we can keep the machines running and feed them with raw-materials.

That is, do not let the machines STOP!

Keep them running

Keep them running

Keep them running.

Of all the departments in Powai your P-PACK is almost the only one where you have every

possibility to raise the productivity by 25% (even much more) and show to the rest of Powai

that when the workmen and the Joint Secretary of a department accept a challenge they

can easily prove their capability.

I am sure you will accept this challenge and prove your leadership to all 7000 people at

Powai.

You will have my support.

H.C. PAREKH

SET A PERSONAL EXAMPLE

December 14, 1984

U – 13

To:

Shop Representatives :

I am glad that you attended the meeting yesterday. It gave me an opportunity to know

your problems and also tell you the problems faced by the managers.

As far as discontinuing the practice of releasing Heavy-Shop workmen 5 minutes before the

end of the second-shift, I have explained to you:

1. This concession is no more required in light of changed shift timing and bus timing.

2. It was on the strength of this argument that the Union had accepted the Management

stand and reached a "collectively bargained" settlement in April.

As far as production/ productivity is concerned, I have pointed out to you my own personal

experience on the shop-floor of Heavy-Shop a few months ago during shift change time that

almost all the machines were completely stopped for nearly 20 minutes'. This is despite the

fact that we have provided an over-lap of 10 minutes to enable the second-shift worker to

take-over from the first-shift man to ensure that the machine does not/need not stop even

for One minute!

By remaining silent you have admitted that this is what is actually happening;

But is it enough to remain silent?

As Shop-representatives, as leaders of workers, you have a personal responsibility to

ensure that not a single machine stops for a single minute wherever an operator over-lap is

provided.

And as "Worker-Leaders" you are supposed to set an example by your own personal

behaviour! How else can you make others listen to you? I hope you will take the "Lead" in

this matter. Remember others are watching you and waiting to "copy" your behaviour!

Whatever you do, others will follow.

As far as productivity - suggestions are concerned, please make out a list of

concrete/specific suggestions, give it to your production- manager and send me a copy.

Regards

H.C. PAREKH

MANAGING WITHOUT SHOP SUPERVISOR

January 17, 1985

U – 14

To:

Dear Mr.

(EWAC Shop-Rep.)

Gradually withdrawing Shop-Supervisor from non-technical supervision

We had discussed this matter at our tea-meeting few days back when you said it was

possible for your group of 6/7 workmen to carry-out "targeted-production" independently

with minimum need for administrative type of supervision.

Subsequently I had mentioned this to Mr. Ismail (Production Manager), who welcomed the

idea as it would free the concerned supervisor to spend time on technical matters. If both,

you and MI feel that the experiment has led to mature responsible behaviour on part of the

group, I would like you to narrate your experience to the next Powai Level Productivity

meeting.

Regards,

H.C.PAREKH

A GROOVY SUGGESTION ?

February 7, 1985

U-15

To:

Dear Mr.

Sub: Your Suggestion 82127 dt, 21.12.81 for Multi-wall shells

You gave me some papers on this when we met at lunch-cottage a few weeks back.

Subsequently I have discussed the entire technical - details with Mr. Hingorani & Mr.

Samant, and I have requested them to explain the same to you.

What we are doing at present is not right (as per our collaborator) and they would like us to

switch-over to groove-less welding as soon as we can master the technique.

For the moment, grooving does help reduce the risk of rejection and I propose to bring this

fact to the notice of the Suggestion-Committee during its next meeting.

In any case, I am personally happy that you are taking such active interest in cost

reduction/quality-improvement ideas.

The managers tell me that soon they will the putting-up, on notice-boards, a list of

problems, seeking employee-suggestions on how to solve these.

When this happens, I do hope, you and you colleagues will come forward in a big-way with

lots of innovative ideas (of course then suggestion -box !). I am myself, looking for ideas to

boost the suggestion-scheme and would welcome your help. I have already listed some

which KMK can show you.

Regards,

H.C.PAREKH

TECHNOLOGICAL CHANGES & EMPLOYMENT - LABOUR MANAGEMENT CO-

OPERATION

September 30, 1986

U – 16

To:

Dear SV

Last week the two of us attended a National Workshop on "Labour Management Cooperation

on Productivity & Technology Changes", at Delhi.

During the course of the 2-day debate, repeatedly the question came up of the staff

rendered surplus due to changes in technology/increase in productivity. It was heartening to

hear the leaders of the major central Trade Unions say that they would give full support for

modernisation, technological changes and increase in productivity as long as the employers

guarantee that there will be no retrenchment of staff as a result of these changes.

Such a positive attitude is a refreshing departure from the dogmatic stand taken by some of

the unions in the past. It was obvious that there is an all-round appreciation that neither

can we generate additional employment, nor can we improve the standard of living of our

citizens unless we adopt - and adapt ourselves - the latest technology and do so rapidly.

The crux of the problem is for the unions, the employees concerned and the management to

work together sufficiently in advance so that the employees likely to be affected can be

retrained for different jobs. We know that birth is painful. This is equally true of rebirth and

all that an organisation can do is to lessen the pain of rebirth. The pain cannot be eliminated

altogether. But, to what extent can the pain be reduced would largely depend upon the

employee concerned himself. No matter what his age, he must be willing to learn new

trades - new skills. He has to make himself useful to the organisation and earn his wages.

No organisation can carry on its pay-roll an useless employee permanently.

It is the responsibility of the management to visualise the technological changes on the

horizon 2 years or 5 years ahead of time. It is also the responsibility of the management not

only to share such "visions" with the employees but to initiate a dialogue with the union

sufficiently ahead of time.

It is the responsibility of the employees and the union to co-operate with the management

in a smooth change-over to the new technology with the least resistance and maximum

accommodation.

I foresee at least two changes on the horizon within Powai during the next 2 to 5 years, as

detailed below :

(a)

Introduction of Electronic PABX. Our existing PABX system is nearly 25 years old and

totally unreliable. I am sure we lose lakhs of rupees worth business every year due to

our poor communication system. It is therefore imperative that we change over to the

latest technology, viz., the Electronic PABX. This can happen within the next 2 years.

This may however, render most of the telephone operators surplus. Ultimately may be

just one or two operators may be required.

(b)

Computer Aided Design (CAD). All over the developed world, computers are taking

over from the Draughtsman. In Powai itself a small beginning has been made by the

introudcion of CAD in Group II and III. I foresee a situation where by 1991/92, most of

our draughting gets done on computer-driven plotters. This may render surplus most of

our Draughtsmen at present numbering 141.

By a copy of this letter I am. asking the concerned Managers to initiate a dialogue with the

Union and the concerned employees right away. In my opinion there deployment/ retraining

decisions sould emerge jointly in participation with the employees concerned. I am also

requesting the Managers all over Powai to let me know what other technological changes

they foresee during the next 5 years which may result into surplus people who may require

retraining. Let us hope that modernisation in L&T becomes a rewarding experience and not

a painful rebirth.

H.C. PAREKH

HOUSE KEEPING - IS FOR EVERYONE

November 4, 1986

U-17

To:

President

BKS Union

LT - Unit

In the quality-month, the first thing we can attempt is to improve the "quality" of our

house-keeping. It is not too technical. It is simple. It can be achieved by everyone-and

with very little extra effort !

If 5000 people throw things (raw materials, components, products scrap, packing materials,

banana-skins, Batata-Vada covering, etc etc) all over, even 500 full-time sweepers will not

suffice to keep Powai clean !

At home, we put things in proper place and expect our children to do likewise. Then why do

we keep. throwing things all over in Powai ? Why can't we stack/keep things neatly -even if

it is a neat heap or a pile ?

I think it is high time that "good house keeping" ceases to be a "management-function" ! It

should become "every-employee- function". It must become a "people's movement". Only

such movements can last - movements which become our second- nature. Rest will come -

and go as fads.

I would request you to put these thoughts across to

- Members of Works Committee.

- Shop-reps.

- What can you do ?

- How can you help ?

Let us begin "employee-participation" where it is easiest and success guaranteed!

H.C. PAREKH

CONGRATULATIONS !

January 5, 1987

U-18

To:

Dear

(Shop Representatives in Maintenance Dept.)

Thru: Resp. Manager

A few days back DAK came and told me that he is receiving very good co-operation from all

of you in removing bad practices and improving productivity. I wish to congratulate you for

setting an example to others in your department. Please keep it up so that this message can

spread throughout Powai.

With regards.

H. C. PAREKH

TOWARDS A NEW HORIZON

January 16, 1987

U-19

To:

Dear Shri

At the outset, allow me to thank you for sparing your valuable time in attending the

Employee Seminar on December 20, 1986, at. Lonavala. I am sure that this unique

experiment will go a long way in developing a participative work-culture in L&T. Your own

personal and strong convictions regarding the national-level and company-level need to

- improve discipline

- improve productivity

will go a long-way in achieving the goals. With the help of the video-cassette prepared

during the seminar, I will try my best to see that your MESSAGE reaches each and every

employee at Powai.

In the meantime, I am sure, you must have received the invitation for the next Joint

Meeting of the Trade Union leaders and Managers to be held at the Conference Room of

Bombay Chamber of Commerce & Industry, on February 7, 1987, at 10 a.m. I do hope you

will come and give us the benefit of your views. You are most welcome to bring-along Shri

Ramakant More, if you wish.

With kind regards,

H. C. PAREKH

COMMUNICATING WITH WORKERS

INDEX

Sr. No.

TITLE

1 Please, Reaffirm Your Committment

2

Productivity - "Product" Of The Brain By The

Brawn

3 An Unjustified Action

4 'Go-Slow' Agitation

5 Do Not Rock The Boat

6 The Nightmare Year

7 The Nineteen Eighty

8 Birbal & Badshah

9 Unusual Pay-Packets!

10 Return of the Prodigal

11 The New Industrial Relations

12 Collective Bargaining

13 Information-Sharing

14 Will we be Able to Save Our Jobs?

15 Ahi-Ravana/ Mahi-Ravana

16 Escalator-Culture

17 Pull Together To Survive

18 Scala-Mobile Escalator

19 Not By Hope Alone

20 Gujral Strikes Again

21 A Shop-Representative Speaks.....

22 Kamath & Kirloskar

23 The Language of Cowards

24 Steel/ Textile/ Sugar/ Rice

25 The Future-Shock

26 Begin with Yourself

27 A Swallow Does Not A Summer Make

28 From Today I Will Do The Following

29 Secrets of Efficiency

30 Competition Does Not Give A Damn

31 Will Free Imports Kill Us?

32 Absenteeism

33 Learn Your Lesson

34 Who Will Buy the PSUs

35 Get Rid of the Dead-Wood!

36 KTL VS. KCL

37 Productivity And Unemployment

38 Flogging A Dying Horse

39 ECD VS. ECD

40 Economy (Co-Operation) Drive

41 Economy (Co-Operation) Drive-II

42 The New Alphabet

43 A Country Fights Back

44 Hiroshima - We Remember

45 Ideas or Rumours?

46 Not Alone

47 Point of No-Return?

48 No Escape In the Sky!

49 The Good Times/ The Bad Times

50 Afraid In The Dark

51 Catch Them Doing Something Right

52 Conservation Of Electric Power

53 Keeping Score

54 Why Remain Anonymous?

55 The Loyal Way To Modernisation

56 Sunrise In The West! - Part I

57 I Do

58 Sunrise In The West! - Part II

59 Sunrise In The West! - Part III

60 Sunrise In The West! - Part IV

61 Sun Rise in the West - Part V

62 Freedom At Midnight

63 Down & Out?

64 Sunrise In The West! - Part VI

65 Sunrise In The West? No In The Middle East!

66 A "No - Win" Situation

67 Keeping Score-II

68 Introducing-The Capitalist Employees

69 The End Of Corporate Loyalty?

70 Giving Bonus The American Way

71 Giving Bonus The American Way - Part II

72 ALLWYN of Hyderabad

73 Britan Works O.K.

74 A Common Dining Hall?

75 The Magic Formula

76 My Job/ Your Job

77 Congratulations, Mr. Ikeuchi!

78 Sprit of Wa

79 Attitudes Cannot Be Bought

80 A Duty_Free Import?

81 Roti, Kapada, Makan

82 Suggestion-Scheme

83 Keeping Score - III

84 The Loyal Way To Modernisation

85

Human Resource Management - Philosophy &

Practice Of Konosuke Matsushita

86 Resurrection At General Motors

PLEASE, REAFFIRM YOUR COMMITMENT

September 11, 1979

W – 1

To:

Dear friends,

In joint discussions between the Management and Bharatiya Kamgar Sena Union

representatives held during last few months immediately following the wage settlement,

both the parties have expressed their firm commitment to increase productivity, to keep

our products competitive.

During the review it was found that the productivity increases, as stipulated in the

Settlement, have not taken place in large areas of operations although these should

have been achieved within three months of the Settlement.

This has become an area of major concern and we have jointly drawn up action plan to

identify specific productivity targets and make efforts to achieve them.

It is recognised that the targeted increases in Labour Productivity can mainly come

from the collective efforts of all the workmen and the Supervisory staff.

It is agreed to implement the following with immediate effect:

1. Maximum utilisation of working time on the machines/ jobs thereby eliminating

unproductive time.

2. Full cooperation in ensuring adherence to specified work timings and maintaining

discipline.

3. Cooperation in implementing agreed job-classification as provided in the recent

Settlement.

4. For areas already covered by productivity indices, efforts at individual level to

increase the Productivity indices to the level as per the Settlement.

5. For areas with no Productivity Indices coverage, increase, the Productivity level by

25 points over the December 78 performance level.

6. Holding of structured 3-tiered meetings at

- Shop floor level

- Unit level

- Powai level

on a regular basis, to review and improve productive performance.

The BKS Union has reaffirmed its concern for the need to raise productivity and has

'agreed to extend full cooperation in the matter. This can be achieved only with the

positive attitudes, the recognition of the motto 'Productivity or Perish and the wholehearted

acceptance that productivity is the concern of every individual employee.

We are convinced that this is the major way to ensure sustained and successful

operations, resulting in growth of the company in which all of us have. joint stake.

We are sure, as in the past, all the employees will rise to the occasion, with an all-out

effort to achieve higher levels of Productivity and not allow individual problems to

interfere with the attainment of the common goals.

H.C. PAREKH

PRODUCTIVITY - PRODUCT OF THE BRAIN BY THE BRAWN

November 1979

W-2

To:

Article Published in Powai Pageant

Someone said recently that productivity is yet another name for hard work. The

definition is elegant for its simplicity. It is a simple statement of an otherwise complex

subject. It is also a brief statement. It has, therefore, both the key attributes of

mathematics - simplicity and brevity.

Looking beyond this simple definition, the word 'productive' makes us think of the

manner in which this hard work-or effort-was applied.Was all that hard work effective?

The cause and effect relationship is brought into picture. Obviously, effort is the

"cause". But was the effort "effective"? Did it produce the desired result? Or did it

produce any result at all?

Now we see the light! No matter how "hard" the effort, it is no good - not productive -

unless it produces certain "effects" - the results.

Long before man invented the circle, he used square wheels on stone-age carts. You

can imagine the effect? (Those who drive on Bombay roads do not have to stretch their

imaginations). It called for applying a lot of effort but did not take one very far! It

also took a long time to get anywhere. Although time was not important, the effort

was, so when the stone-age cart Mark II, with circular wheels was test-marketed, it was

an instant success!

Someone had finally hit the key - how to multiply muscle power by brainpower - the

"product" of the brain by the brawn. From this "product" came "productivity". This

then is the more involved definition of productivity. Life on earth was never going to be

the same again! Let us look at the change the definition underwent.

From,

we moved into

effect =F (effort)

(i.e. effect is a function of effort)

effect = F (effort x brain)

So we learned how to enhance the effect for the same given effort through application of

intelligence. Alternatively, for the same given effect, we could use much less effort,

using mental skills.

Productivity, therefore, means using both body and mind simultaneously, for easier

attainment of a given end-result.

Although there is a limit 'beyond which the body cannot be prodded to greater effort,

there does not seem to be any such limit to mental powers. When the two are

multiplied, the results can be fantastic. The history of mankind has proved this again &

again. Depressingly, more often than not, this multiplication has been used for the self

rather than for the benefit of mankind.

In so far as productivity means producing more for the same effort or producing the

same quantity for less effort, no one would have any quarrel. This was particularly so

when it concerned one's own efforts to gain an individual advantage. Such a

situation, however, did not last beyond the days of the caveman who hunted alone for

food.

For an end objective, (in this case food - shall we say survival?) - co-operative effort

emerged as early as the caveman-hunter era. Co-operative effort was synergetic and

certainly more productive. The co-operative effort was problem-solving in so much as

it was an answer (solution) to the question of survival. Co-operation also improved the

chances of attaining the desired solution.

One does not know for sure, but at this stage one or more of the following things

happened:

1. Some persons with a greater sense of survival desired greater (than equal) share of

the end-result.

2. Some persons with greater mental or greater physical abilities desired a greater

share - a share out of proportion to their physical effort contribution.(This was a couple

of million years before man stopped working for himself and started working for the

Income Tax Department;).

Anyway, we see here at once, the roots of Marx-Lenin's class struggle as also Lord

Mahavira's Asteya principle of desirability of minimum wants. As long as an

individual desired to take more out of the Society than what he was prepared to give

to the society by way of his effort, no societal wealth could be created. In such a

situation an individual could amass wealth only at the cost of impoverishment of

some other individuals, the sum total remaining the same.

It is only when every member of the society gave more to it than what he took away,

could societal wealth increase. Create more, consume less. Contribute more,

distribute less. This, then is the principle of the Wealth of Nations.

Now you will notice the relevance of the earlier remarks. Productivity became a dirty

word only when it became synonymous with exploitation of the efforts of the others to

gain personal advantage for a few. This was particularly so in a cooperative venture like

an industrial organisation where necessary persons of varying physical and mental

skills must work together towards a common goal.

Even in an indealistic situation where nobody took advantage of nobody, the question of

establishing an equation (or rather an inequation - mathematically speaking.' ) between

the contributions of thousands of employees, each possessing an unique combination of

physical and mental skills, remains intractable. Although some norms of overall

Corporate Productivity can be established for a given venture and could prove to be a

useful yardstick if used consistently, the enormous complexity of a modern business

venture renders all but impossible any attempt at measuring an individual's contribution to

that overall productivity gain.

Any overall productivity index tends to mix up the effect of several resource inputs in the

denominator of the simplified formula.

Productivity = Output

The same is true of the selection of any numerator, such as sales, cost of production,

profit, etc. Therefore, the only true measure of labour productivity can be equated as

Labour productivity = Physical output

Labour manhours

The foregoing equation is particularly true for a diversified operation, considering

that, at macro-level, no single index can be found which can isolate labour

productivity, it appears inescapable that all the manufacturing units must establish

work standards in terms of the standard hours for the production to be achieved. The

ratio of the standard hours to the actual hours would then indicate an individual's or a

group's performance index or productivity level. Output as measured by the number of

physical units for a given unit of time is something which is easily understood by all

concerned. This brings us back to where we started, namely hard work - for what is

hard work other than doing more in the same period of time?

H.C. PAREKH

AN UNJUSTIFIED ACTION

November 28, 1979

W-3

To:

Dear Friends,

It is reported that the Bharatiya Kamgar Sena at a Gate Meeting held on Friday, the

23rd November 1979, directed the workers to resort to 'Go slow' in work to secure the

demands of reinstatement of 8 workers, full wages for the period of suspension of

operations & subsequent strike, additional ex-gratia bonus, etc. in response to this

direction, workers, particularly key personnel, have started absenting from work, work to

rule, go slow, refusing overtime etc. Which have disrupted the essential services in

canteen, transport etc. The shop floor workers have also slowed down their performance in

work and are resorting to sporadic work stoppages under the pretext of non-availability

of canteen services on time.

Employees are aware that the issue of reinstatement of 8 workers has been referred to

industrial Tribunal for its adjudication and the issue of payment of full wages for the

period of suspension of operations and strike is before the Arbitrator in accordance with

the Settlement dated March 17, 1978. In this Settlement the Union/workmen have

categorically agreed not to resort to strike, go slow tactics and any other type of

agitation on these two issues and that they shall cooperate with the Management in

maintaining discipline and improving production and productivity.

The actions on the part of workmen, described above, amount to serious misconducts

under the Standing Orders, and illegal strike/unfair labour practices in contravention of

the provisions of the industrial Disputes Act and Maharashtra Recognition of

Trade Unions & prevention of Unfair Labour Practices Act. These acts are also in breach

of the terms of the binding Settlements dated March 17, 1978 and January 12, 1979.

All workers are hereby advised not to indulge in such indisciplined and illegal acts

and to restore normalcy forthwith.

Although, the issues/demands raised by the BKS Union are subjudice, it would have

been more natural for the Union to discuss these matters with the Management across

the table in a peaceful and congenial working atmosphere, rather than resorting to

unjustified direct action.

H.C. PAREKH

GO-SLOW AGITATION

November 30,1979

W-4

To:

Dear Friends

Whom does it hurt?

In our Notice dt. 28th instant I had explained to the workmen that their agitation for

reinstatement of 8 workers is both unfair and unjust. We had also advised the workmen

to immediately withdraw their action of 'Go-slow' which can only hurt their own interest in

the long term.

Despite this advice, the 'go-slow' is continuing. Apparently better counsel has not

prevailed. This is a matter of regret and considerable concern. Already the transport

and the canteen services are disorganised and the workmen are suffering. If production

losses pile-up, the workmen cannot expect to remain unaffected. The Management shall

not remain an idle spectator should this 'go-slow' agitation continue.

We once again appeal to the workmen to withdraw the agitation at once and adopt

democratic methods for settling their grievances, if any.

For nearly 18 months, the Union has delayed the court-proceedings in the matter of 8

workmen. It has taken the Union almost 18 months to file their Statement of claim before

the Court, in October'79. All along, the Management has shown anxiety to expedite the

case.

For those of you, who are not completely aware of the undertaking given by the Union,

not to agitate on any of the issues covered by the Settlement dated 17.3.1978, the same

is reproduced alongside.

We look forward to your cooperation in the withdrawal of the agitation and in the restoration

of normalcy.

H.C. PAREKH

DO NOT ROCK THE BOAT

December 10, 1979

W-5

To:

Dear Co-traveller

POWAI WORKS is like a boat. You are aware that this boat has not been sailing

smoothly of late. Some people are trying to drill holes in it, little realizing that if the

boat goes down, they go down too ! - perhaps before the boat goes down !! What else is

'go-slow' agitation?

Over the years, our boat has sprung a few small leaks and we should all be busy bailing out

water and sealing these leaks - not drilling holes!! Future of 7,000 people (and of their

families) is at stake. A few persons (whose own futures do not ride the boat) are taking

dangerous liberties with the future of 7,000 workmen. Can this be allowed?

To agitate peacefully and democratically for a 'just' cause, is the birth right of the

working class. No enlightened Management will deny that, and L&T Management has

repeatedly demonstrated that it is an enlightened Management.

But, is the present 'go-slow' for a ' just ' cause?

At a considerable sacrifice to the L&T workmen, the BKS Union got the Management to

agree to refer the cases of 8 workmen to the Labour Court. NOW the workmen are

being asked to make further sacrifices. For what? Was the earlier sacrifice all in vain?

You be the judge.

Our Management ''has a reputation of honouring an understanding, if it was given. The

one and only understanding is the agreement signed by the Union and the

Management on 17.3.1978. Management has every intention of honouring the same. It is

hoped that the educated and intelligent workmen of L&T will also uphold this democratic

tradition and honour the agreement by immediately withdrawing the - GO-SLOW

agitation, before this disease spreads like plague and consumes our futures !!

H.C. PAREKH

THE NIGHTMARE YEAR

December 16, 1979

W-6

To:

Dear friends

The year 1979 is drawing to a close.

It has been a bad year so far. What little is left does not appear all that cheerful. The

future looks as bleak as a Hindi film does around interval! (except that in the case of a

Hindi film, your eight-year old can predict 'The HAPPY End' rather accurately !)

We have seen some bad years before. What is so special about 1979?

FIRST:

The Management and the Union signed a 4-year Agreement in January 1979, that gave

an average wage-rise of over Rs 200 per month to the workmen, resulting in a recurring

annual expenditure of Rs 125 lakhs. Then there was the one-time lump sum payment of

Rs 90 lakhs.

Now there is nothing basically 'wrong' in such a big wage-increase, if it were to be

neutralised by a corresponding improvement in the labour-productivity as incorporated

in the Agreement. Not only labour-productivity remained at the same level throughout the

year, it went down in some shops !!

This is what makes 1979, a 'bad' year !

SECOND

The labour-cost further kept on rising throughout the year. The maximum DA which was

Rs 1145 in January rose to Rs 1305 in November - a rise of Rs 160 so far.' D.A. rise alone

has cost the Company around Rs 90 lakhs during the course of the year.

With one more month to go, 1979, might yet break the previous record !!

THIRD:

Most of the raw materials and components are costing us today, between 25% to 50%

more than what these cost us 11 months ago. Shortages of raw materials caused loss

of production and termination of—'Temporaries' .—And—this—could happen again and

again !!

Isn't this 'bad' enough?

FOURTH:

A company needs borrowed money to run the business. When labour-cost and

materials-cost go up sharply, we need more money. And the borrowed money itself

has become more 'expensive ' because banks increased the rates of interest.

How bad can one get?

FIFTH :

Most of our business is a 'Fixed price' business. Today, we are executing orders which

were booked by us 12/18 months ago at 'firm prices'. With all costs rising sharply, our

'margins ' are shrinking fast.

This is what makes 1979 a bad year.

SIXTH :

Maharashtra is going through one of the worst POWER CUTS, ranging from 35% to 55%

(and 100% for 5 days in May 1979). We have survived so far, on our own generated

power - which costs us 6 times as much. But if diesel supplies go down further, (current

stock is just enough for 7 days) the first to be affected would be the Company's transport.

Can we take anything at all for 'granted'?

FINALLY:

1979 began with all outstanding issues between the Union and the Management peacefully

settled. 7,000 people of Powai paid a heavy price in 1977 and thought that the worst

year in L&T's history had come and gone.

Apparently some people have thought otherwise and would like to make 1979 THE

WORST YEAR I The 'Go-slow' agitation is crowning the nightmare of 1979.

At a time when we should all be unitedly fighting the 'evil' forces of the ECONOMY, through

higher production, do we have to make matters worse, by inflicting wounds on ourselves

by resorting to 'Go-slow'?

When you go home today, ask your eight-year old what he thinks 1980 would be like -

for us and for our families.

H.C. PAREKH

THE NINETEEN EIGHTY

January 1, 1980

W-7

To:

Dear friends

A very happy new year to you all. To your families just as much.

Raj Kapoor, in his film "Boot-Polish" sings "What is it that you hold in your hands, little

children?"

And the children sing back "Our future is what we hold in our hands; we have the fate at

our command".

We all wish, our children could say the same. That is in our hands.

Only we, the people of Powai, could make it possible for our children to face the future with

confidence and courage.

Let us, therefore resolve, on this New Year day, to work together for an everlasting

"Peace in Powai".

With more than 7,000 souls at work, Powai is perhaps the largest "Industrial

Democracy" in Bombay. Differences of opinions (on how best to resolve problems) are

an essential feature of a healthy democracy.

We must not allow our differences to disturb the Peace in the year of Jesus Christ -

1980. We owe this to our children.

We hold their futures in our hands.

H.C. PAREKH

BIRBAL & BADSHAH

January 25, 1980

W-8

To:

Dear friends

One day, Badshah asked Birbal, "How many of my people are honest?".

Birbal replied, 'None'. A shocked Badshah challenged Birbal to prove it.

Next day, Birbal drained the royal swimming pool and sent an announcer around the town.

people were ordered to bring a glass-full of milk and empty it in the swimming pool,

during the night hours.

When morning came, Birbal took Badshah to the swimming pool. it was full of clean

sparkling water!

La-hol-walla-Khuvvat! - Explain this at once, Birbal. All through the night, I saw by

moon-light, people streaming in with glasses of milk in their hands! ".

Jahan-Panah, people did come - but with glasses full of water. Each one thought,

when thousands of others were going to pour milk in the pool, what difference could

his ONE glass of water make?".

(Unfortunately, 'the story does not say what the Badshah did to make his people honest'.).

Powai is not ancient Delhi and we do not need a Birbal to tell us what happens to

"PRODUCTIVITY" When each one of us think "well - what difference does it make to the

total production, if just one little myself produces less than expected, when thousands of

others are working so hard?".

We know what would happen. Our children would have no milk - but plenty of water to

swim in!!

- work hard

- be honest

- prove Birbal to be wrong !

H.C. PAREKH

UNUSUAL PAY-PACKETS!

March 24, 1980

W-9

To:

Dear friends,

Did you notice anything unusual about this month's pay-packet?

For most of you, of course, it must have been heavier than ever before, due to

- D.A. having gone up (C.P.I, is up 48 points over December' 79

- Overtime wages at 20% of normal wages (3.2 % in December' 79)

However, that is not what I meant when I said "unusual".

I meant the "Productivity Slogan" on the face of the paypacket. The "Creative"

amongst us participated in the "Slogan Contest". Now one slogan will appear on each

month's pay-packet. But surely there are more than 12 creative employees in the

company!

And here is their chance to make the pay-packet most unusual.

"Productivity Message" Contest

1. Within 30 days of the appearance of a slogan on the pay-packet, send in your

"Productivity Message" on the same subject/theme as the slogan, in fact, the slogan

should be the title of your message.

2. The message should highlight the importance of that subject/theme to the

overall productivity of the company. To support your theme, the message may

highlight the "good" work being carried out by employees in distant corners of

the company and be inspirational to the readers.

3. Message should be typed/legibly handwritten and not more than 200 words in

length.

4. Message could be in English/Marathi/Hindi.

5. The author's name must not appear anywhere on the message itself. Send a

separate covering letter. The contest is open only to the Bombay based employees of

L&T TENGL & EWAC.

6. Message should be sent to Mr. C.M. Srivastava (Industrial Engg. Dept.)

7. A panel of judges will evaluate the messages received and select the best for

printing (with the Author's name) and enclosing with the pay-packet 2/3 months

later.

8. The best message will be awarded a prize of Rs. 200/-.

9. Once an author's message has been adjudged best and awarded the prize, the

author will not be eligible for another award/publication for the following 12 months.

However, if his/her another message gets adjudged "best", once again, the same

will receive a 'complimentary' award of Rs. 50/- and the message displayed on

the notice-boards. In such an event, the next-best message will get the RS. 200/-

award and publication with the pay-packet.

The race is on !

The authors of L&T arise !!

H.C. PAREKH

RETURN OF THE PRODIGAL

December 25, 1980

W-10

To:

Dear friends

The Bible speaks of a father and his two sons.

When the sons grew up to become adults, the father gave each an equal share of his

wealth. There was also some fatherly advice on how to make the wealth multiply by

working hard.

It so happened that the younger son did not quite heed the advice. He was a happy-golucky

type of a man and avoided work whenever he could get away with it.

Now that he had money in his hands, to spend as he wished, the younger son left home

and started visiting places of pleasure. He squandered away all his money and soon

started begging for food. Half-starving, he now realized the good advice of his father but

felt too ashamed to go back to him.

Finally, one day he overcame his remorse and returned home. The overjoyed father

ordered music and feast to celebrate the event.

When the hard-working elder son returned home from the farm and learned of his father's

orders, he was very unhappy and refused to take part in the family reunion. Here he

was, toiling away under the blazing sun to preserve and multiply the family-wealth and

whose home-coming is being celebrated? - the good-for-nothing vagabond!

It was now the father's task to explain that whereas he had greater respect for the elder

one and valuad his work, he loved both sons equally. The rejoicing was to mark the

return of the prodigal to the family-fold and to the family tradition of hardwork and respect

for the elders. No matter how far he may wander, a child that returns home by evening is

not to be considered "Lost".'

On this X-mas day, I wonder if the story has any relevance to our own times and to our

own lives !

H.C. PAREKH

THE NEW INDUSTRIAL RELATIONS

June 8, 1981

W- 11

To:

Dear friends

"Industrial Relations" are the two most inaligned words of English language these days.

Thousands of learned people, all around the world, are writing millions of mostly not-solearned

words about IR.

As far as I can see, industrial Relations are really "Human Relations in an industrial

Situation". And there are any number of situations where humans get together and

transact business (using human relations) such as:

- Medical Situations

- Legal Situations

- Religious Situations

- Family Situations, etc. etc.

But we do not hear much talk of:

Medical Relations, or

Legal Relations etc.

Why is that so?

Simply because, in those situations, the relations involved/ invoked are basically treated

as "Human Relations" and tackled as such.

Also because, in most such cases, the relationship is between two individuals, viz:

- A Doctor and a patient

- A Lawyer and a client

- A Priest and a parishioner

- A Father and a son.

But when it comes to an industrial situation, the picture suddenly changes !

Here, all kinds of "third-parties" get involved. And for some of these, their

very existence depends upon getting "involved" !

These "third" parties are :

- The Labour Commissioner

- The Labour Courts

- The Labour/Management Lawyers

- The Labour/Personnel Professionals

- The Union Professionals

- The "Advisors"

- The Government, etc.etc.

The list is endless.

So what should be essentially a "person-to-person" affair has been turned into a "public

affair"! The attitude of the "third" parties is, "How dare you settle the issue all by

yourself just the two of you?"

Coming to think of it, left to themselves, the worker and the supervisor are incompetent

to "mess-up" the matter -they need "third" party help to do this.' I

Thank God, "third" parties have, as yet, not discovered how each one of us manages

his/her "person-to-person" relationship after working hours!

I enclose herewith first part of an article on "The New Industrial Relations".

Although there are those "omnipresent" third-parties in the article, the message,

essentially is to get back to the "Human Relations" - on a person-to-person basis.

I hope those of you who believe in "Miya Bibi Rajee, to Kya Karega Kazi" and waited to

practice it, would be able to renew their faith through this article, in any case, please

feel completely free to share your views with me - in writing or across the table.

H.C. PAREKH

COLLECTIVE BARGAINING

2 Nov 1982

W- 12

To:

Dear Friends

S.R. Mohandas does not like the word "Bargaining".

According to him it implies, "barring-the-gain" of the opponent and

an "adversary" relationship. He prefers to call it "Collective Negotiating" - you negotiate a

difficult terrain, jointly, to reach a common goal.

SRM also tells us that in collectively negotiated wage settlements, there is no place for

"give and take". It has to be only "take and take". Union "takes" (away !) the wages from

the Management and the Management must master the art (or science) of

"taking" (extracting) the work from the workmen !

So "take-and-take"! Extort if you like! This is the central theme of his article enclosed.

Another wrtie-up (enclosed), which I thought would interest you, is

on the wage negotiations currently taking place 15,000 km. away - in the

American steel industry. We are far removed from the Scene but the subject is quite

relevant.

Is there a common thread running through the two write-ups? I do not think, SRM,

anywhere in his article, is preaching the kind of "tough" stand being practiced by the

American Steel Industry.' The toughness is in a mess due to many reasons - one of which is

high labor-cost as compared to the Japanese.

But then SRM neither precludes tough-methods, if situation so

demands. On the other hand we also find that some managers in the

American Steel industry believe that a lasting solution to the

problems faced by the industry cannot be found in arm-twisting

techniques but only in worker participation and involvement in the problem-solving

exercises - in other words, in "decision-taking" processes.

The blind-spot is "give and take" - perhaps even "take and take". How do we get across to

the employees that we must all "make" before anyone can "take"?

H.C. PAREKH

INFORMATION-SHARING

January 24, 1983

W-13

To:

Dear friends,

We neither have a structured forum nor a systematic effort to share information with our

employees. Well, not quite:

We have, over the years, tried to share information about events through the pages of:

L&T Newsletter Powai Pageant etc.

Productivity-committee meetings (both Powai-level and Unit-level) have been an

useful forum during the last 3-1/2 years for sharing some information about:

Productivity

production-targets

costs

Demand

Shop-loading

Methods-changes

Raw-material problems

Absenteeism

Employee-attitudes etc. etc.

But this is not a comprehensive list of subjects.

And all over Powai, there are thousands of employees who do not get to participate in

these meetings.

And honestly-speaking, I myself do not have a clear idea about:

"What is it that employees would like to know?"

If I did, I could write a book with a title (lifted from where-you know. ):

"All that you always wanted to know about ... but never dared to ask."

Perhaps not all that employees want to know - but may be almost-all!

But by the time, I figure it all out, I may be due to retire, so I decided not to wait.

So this is the first of a series of bulletins, I have decided to release for your

information. In turn, you may wish to share this information with your colleagues. Please

feel free, there is nothing confidential about the data.

You may turn around and ask:

"Then why not send the bulletin to all the employees?"

I asked myself:

"Shall I send this bulletin to all the employees, just because the contents

are not confidential and just because it costs so little to print and distribute?"

And the answer was, "No".'

I do not know whether all employees are interested in this information. No point sending

it to those who will throw it in the garbage-can, perhaps, even without reading.

On the other hand, if You feel that groups of employees working under you may be

interested in this information, phone Mr. D'cunha (Ext: 598) for an over-head projector

and the slides. He can even assist you in making a "Slide-presentation" and in

answering questions.

In this first bulletin, I enclose some charts regarding:

"Skill-wise population-mix Trends".

The charts are fairly self-explanatory.

Almost across the groups, the percentage of US/SSB/ population is decreasing and

the percentage of SSA/SB/SA/HS population is increasing, over the last 4 years.

Many questions come to my mind:

1. Will this trend continue? If yes, at what rate? What will be the percentages after,

say 4 years?

2. Is this trend disturbing? Are we getting "top-heavy"? Do we need so many people

(%) in the SB/SA/HS category?

3. For each manufacturing group:

- the "products" dictate the manufacturing processes

- the "processes" dictate the "skills"

- the "skills" dictate the "range" in each "trade".

4. If new products, added by us over the years, required us to use, more

or less the same manufacturing processes (machinery, equipment,

methods, tooling, layout, material handling etc.), then the logical

conclusions would be that:

• the types of "skills" and

• the "mix" of skills

required by us, should also remain more or less the same.

What has, then caused, these ratios to be disturbed?

5. In the years to come what would our "people-mix" (skill-mix) look

like?

I am sure some of you have questions not listed above (I hope some of you' also have

answers'.).

Whatever, write it down and handover to the concerned manager from your area, who

is connected with the "charter -of-demand" negotiations.

And if you have any suggestions on "information-sharing", send me a small note.

With regards.

H.C. PAREKH

WILL WE BE ABLE TO SAVE OUR JOBS?

June 18, 1984

W – 14

To:

Dear Friends,

Mr. Sethna (GM - Gr.II) has written to me (see enclosed note). Mr. Sethna is a man

of few words and normally he prefers to say those few words face to face - and

without mincing I

He could have simply walked into my room and said those few words.

But he chose to write. That could mean two things:

ONE - His message is not meant for me alone but for all 10,000 odd people in the

Company.

TWO - The message is grave.

And what is the message ?

Simply stated, it says,

"If we don't take serious notice, get-up and fight back like hell, the flood of international

competition which is about to submerge Gr.II, may drown the rest of Powai as well, before

long !"

In a recent letter to the shop representatives, I have narrated how the Rising Sun

(Japan) is about to wipe-out the American Car industry - and how American Workers

are fighting back like hell 'to save jobs'. Borrow this letter from your Shop Rep. and read

it.

Then compare the situation in Group II with the American car Industry and ask:

Will we be able to save our jobs ?

In the past, when we were literally driven out by the competition from the

manufacuture of drilling a chinery (Madh) and packaging machinery, we somehow saved

the jobs of some 400 employees - redeploying them in other units which did not need

them - even though this meant lowering the productivity of those units and increasing

their costs. And one such unit was Group II !

And next time when the catastrophe strikes, what shall we do? or better yet, is there

anything that we can do NOW to prevent the occurrence of "NEXT TIME"?

We can certainly do something (provided it is very soon) to prevent the "NEXT TIME "

We can increase our productivity

Produce faster by working harder

Thereby reduce costs

Challenge Japan

Get orders

Keep busy

Save jobs

H. C. PAREKH

AHI-RAVANA/MAHI-RAVANA

July 4, 1984

W – 15

To:

Dear Friends,

In my last-note to you, I talked about the " Enemy -from-Out -side" viz. the Competition.

Today I wish to speak about a more dangerous enemy

enemy is "indiscipline and inefficiency" .—

- "The Enemy Within". This

What makes this enemy deadly is that most of the time it is "invisible". It is hidden

deep-down inside each one of us -like cancer. And you cannot fight too well something

which you cannot see. And more so if you do not WISH TO SEE'. ? ! ?

So this enemy has a ready-made friend in each one of us -ready to hide it, ready to

protect it.

And it has deceived many of us into believing that it is our friend.

That is what makes it more deadly - an enemy disguised as a friend !

This is what Coal India Chairman, Mr. Gujral found out (see the story given below).

To know how Mr. Gujral went about searching for this enemy and how he managed to

chop-off the nails and teeth of the enemy, when and where he found them, please read

this story.

Mr. Gujral will be the first one to admit that enemy of Indiscipline and Inefficiency, is

far from finished, it is quite capable of growing new nails and teeth'. Remember the story

of Ahi-Ravana and Mahi-Ravana from Ramayana ? From every drop of their blood was

born a new Ahi-Ravana/Mahi-Ravana. In modern times, we call them "indiscipline" and

"inefficiency" !

In case you do not know (and wish to know) how Lord Rama ultimately killed these

demons, please do write to me. On the other hand, I am eager to learn from you how to

'tackle' the modern Ahi/Mahi Ravanas. So please do write to me.

As far as our own situation at Powai is concerned, the demon may SEEM tiny when

compared with the Coal India demon.

But let us remember that demon is a demon - no matter how tiny. And one of its magic

abilities is to appear tiny - to deceive us in looking at it from the wrong end of a

binocular. No wonder, to most of us in Powai, it appears so small and so far - almost a

harmless insect!

Let us face it.

Indiscipline and Inefficiency are never very far - they are all the time lurking around us.

And their small size is a small consolation!.' A microscopic virus can kill an element.

So the message is clear. Kill the demon, before it kills you!!

And the message is not meant for any particular section of employees. Here there is no

question of any one trying to teach a "lesson" to anybody else. The enemy resides inside

each one of us. So let us pick-out our own Ahi—Ravana/ Mahi-Ravana and engage it in

a hand-to-hand fight !!

A never ending fight ?

Perhaps.

H. C. PAREKH

ESCALATOR - CULTURE

July 16, 1984

W-16

To:

Dear Friends

A few days back I was going through the shops and talking to the Shop-Representatives

and the Shop-Supervisors about the pressing need to raise the productivity.

"Let us all work harder - and smarter", I was telling them.

At one shop, the Unit Manager proudly introduced to me the Shop-Representitive and

added, "This shop has an enviable record of improving the labour-productivity, both

after the 1979 Agreement and the 1984 Agreement. On both occasions, the workmen

have exceeded their productivity-targets".

I heartily congratulated the Shop-Representative for such an exemplary performance. I

said I was very happy to hear about this.

It was the Shop-Representative's turn to say something.

He said, ut we are very unhappy".

When I composed myself, I asked.

"What for ?"

He said, "We are not getting promotion to a higher grade".

I did not argue much (shop-floor is not an ideal place to argue), but I asked him to

carefully study the "job classifications" which have been recently revised under the new

Agreement.

Whether the workmen of that shop (or for that matter, any worker anywhere in Powai),

deserve to be promoted to the next higher grade depends upon three things:

1.Whether a higher grade exists in that particular "trade/ job", in a given area.

2. Whether a particular worker has already acquired suffic ient proficiency in the specific

"skills/capabilities" described in the job-classification of that higher grade.

3. Whether, in his shop, there is so much work of the higher classification that, for

atleast 6 hours out of 8 hours, he can be expected to be doing such higher classification

work.

Higher productivity (doing more in less time) must not be confused with higher "skills".

Everybody is capable of giving higher productivity. TO produce more (in less time)

is not merely a moral responsibility of all who are beneficiaries of the recent

Settlement. It is equally a matter of saving our jobs - our very existence as a company.

On the other hand everyone is not capable to acquire higher skills and very often, higher

"skills" are just not needed to perform certain tasks. So the "grade" simply has to stop

there.

Unfortunately, some of us do not understand this difference whereas some others do not

WANT to understand'. If you have any doubt about my statement, please read-on the

following article of Bakul Tripathi.

Whether as an individual or as a company, if we want to get ahead of others, let us get rid

of the "mental escalators!

H.C. PAREKH

PULL TOGETHER TO SURVIVE

August 7, 1984

W-17

To:

Dear Friends

In the following article you will read about the 10 best factories of America.

Somewhere in this article, the above mentioned words ("pull together to survive"-)

appear. I think this is the main message of this article - and for all of us in Powai, a

badly-needed message.

Can you locate these words ? If you can, write to me and tell me the paragraph in

which these appear.

Do you think there are other messages in this article which, we, in Powai, ought to follow

? Please send me before 30th August 1984, a 200-word write-up (English, Hindi, or

Marathi) on what, according to you, are the messages and how we can adopt the same in

Powai.

The best write-up will be published in Powai pageant. I thought of announcing a cash

prize of Rs.200/- for the best write-up. Then, when I looked at the following tabulation,

I realized that an L&T employee cannot be motivated any longer with a prize of

Rs.200/- !!

MONTHLY PAY PACKET

GRADE Min. Max. GRADE Min Max

Rs/month Rs/month Rs/month Rs/month

US 1619 2368 TA I 2792 3605

SSB 1624 2589 H.V. Driver 1893 3108

SSA 1637 2909 Clerk III 2211 3654

SB 1892 3144 Clerk I 3122 3978

SA 2134 3342 Steno B 2511 3679

HS 2553 3552 Sr. Steno 3432 3978

(Monthly pay packet excludes bonus and ex-gratia)

From the following article, can you find out what motivates American employees (all

employees) ? - and will it work equally well in India ?

H.C. PAREKH

SCALA - MOBILE ESCALATOR

August 16, 1984

W-18

To:

Dear Friends

In Brazil they call it "indexation"

In America they call it COLA, (cost of Living Adjustment)

In Italy they call it Scala-Mobile Escalator.

In India we call it D.A. (Dearness Allowance)

But everywhere, it means the same thing to the employees. Whenever inflation pushes

up prices in the market, some index published by the Government will also rise.

(In India, we call it Consumer Price index-C.P.I).

Whenever C.P.I, goes up, D.A. goes up, putting more money in the hands of an employee.

The idea is that even though the prices may have gone up, with the extra D.A. in his

hands, he can continue to purchase the same quantity of articles as before.

Rising prices raise the cost of living.

So the experts thought, "Let us put more money in the hands of an employee-to take

care of the rising prices - to neutralise the cost-of-living rise."

Fine idea!

In fact, originally this is an Indian ideal

We, in India, introduced it 40 years ago.

Americans and Italians introduced it only a few years ago.

Italians call it "Scala-mobile escalator". Seems like they borrowed the idea from—our—

own—escalator-culture (remember Bakul Tripathi?).

Except that they seem to have discovered something within 5 years (1979-1984) which

we have still not discovered after 40 years! Or do not wish to discover.'

And that is,

Everytime D.A. goes up, cost of production also goes up .'

And if cost-of-production goes up, selling-prices must also go up. (We were forced to

raise the selling prices of our Switchgear Standard products a few days ago).

If we do not raise our selling prices, our profits will go down.

But nobody likes profits to go down

- neither the shareholders nor the employees.

So what is the problem ? Just keep raising the selling prices, whenever costs go up.

But the Italians are thinking.

"No that won't work. If we wish to sell fertilizer plants in India, our selling prices must be

lower than the selling prices of the Japanese manufacturers (who last month gave a YEN 6

billion loan to India, to buy a fertilizer plant from Japan) and our selling-prices must be

lower than those of an Indian company called L&T. But we cannot force L&T to raise its

selling prices. All that we can do is to reduce our costs, by slowing down the scalamobile

escalator.—Down with D.A. !"

If our Mr. V.G. Desai (Divisional Manager - Chemical Divn.) could hear the Italians

thinking, he would jump-up and say, "very dangerous thinking!"

He means "dangerous" for us - for L&T! (VGD, let me assure you, has no love lost for

the Italian workmen'.) And with all the affection he has for our own employees he

keeps gazing at the following chart.

And he wonders, 1. How the Italians (even Japanese) would love to get a copy of this

chart ?

Does Indian Industry have the "Italian Option" (of stopping or slowing down the D.A.) ?

If not,

3. Can people of Powai, possibly increase their productivity quickly enough to

neutralize the following increases in the wages ?

Increase/ Employee

Rs ./Month

A. Jan. 1979 Settlement (Average) 200

B. D.A. Increase (Jan. 1979-July 1984) 475 to 1114

C. Apri1 1984 Settlement (Average) 550

TOTAL 1225 to 1864

How shall we respond to these questions ?

H.C. PAREKH

NOT BY HOPE ALONE

(nor by crackers'.)

August 23, 1984

W-19

To:

Dear Friends

So finally the bonus (and ex-gratia) has been settled! At the highest, a workman

get as much as Rs.4,500/-, Rs.360 more than last-year.

will

So, one question is over.

But months after the bonus amount is received and "digested", there is one more

question which will remain unanswered.

To know what is that question, look at the following chart:

In 1981-82, Company's profitability was 10.6% (for 1981-82 maximum bonus + exgratia

paid was Rs.4,140).

In 1982-83, Company's profitability came down to 8.2%. Even then, we settled for a

higher bonus/ex-gratia of Rs.4,500 !

Logically we should have settled for less!

So, I turn to hope - hope that the recent trend of increasing productivity all over.

Powai, will continue far enough and high enough into the future to once again take us to

the top of Mount Kailash ! (see chart)

As the weeks and the months pass, the question that will keep coming-up again and

again is,

"Can we live by hope alone ? Will we once again reach the top of Mount Kailash just

because we have a few optimists among us ? can we reach a high level of productivity

and profitability by just WISHING ?"

If the answer is that none of this will happen just because of hope, what else must be

done ?

H.C. PAREKH

Gujral Strikes Again

August 31, 1984

W-20

To:

Dear Friends

Sometime back I sent you an article titled "Gujral Gamble".

Here is another. This time it is not about Gujral but by Gujral. Although Gujral has

called it "industrial Sickness", I was tempted to call it,

"GUJRAL STRIKES AGAIN";

And this time he strikes at the managements of Public Sector Units - for allowing

themselves to be "hijacked by land-based Guerillas who hold industries to ransom

to enforce their own selfish demands".

The message is loud and clear.

freedom of speech and constitutional dissent - YES

minority trying to paralyse and throttle production - NO

As far as Powai is concerned, we have no major outstanding bargainable issues. The only

remaining issue is:

"How to increase Productivity?"

But productivity is not a bargainable issue and anyone trying to hijack productivity

must be dealt with accordingly. We cannot allow productivity to be held at ransom.

Our next-door neighbour Swami Chinmayanandji would tell us:

("Grihitiva Kesheshu Mrutyunam Dharmarn Aachareta")

"Practise Religion as though Death has got hold of you by your hair".

And our religion today is to push productivity and discipline to the highest possible

level.

H.C. PAREKH

A SHOP-REPRESENTATIVE SPEAKS…..

Sept. 15, 1984

W-21

To:

Dear Friends

In one of my recent letters, I requested you to write to me your views on,

" What will motivate L&T employees ? "

(to co-operate for survival)

I reproduce below a letter received from a Shop-Representative. He has requested me not

to publish his name ! That only goes to show that we have a long way to go before we

trust each other enough to be able to speak frankly and without fear.

And why should there be any fear ? Of course if I hurt others (even their feelings) I

have reason to fear that they will hurt me.

But I can be nice and polite and gentle and still disagree with others. As employees of

L&T, we all have our views on how the organisation should be managed. And our views

may differ. But can we not express our differences without being nasty and feeling

bitter ? After all the company is not the private property of an individual or a group of

individuals!

On the other hand 40,000 odd share-holders, 12,000 odd employees and 10,000 odd

suppliers have COMMON INTEREST in the survival and growth of the company. And no

one - absolutely no one - can be allowed to hurt the company, no matter what are his

views or grievances !

And in the matter of improving inter-personal relations, I agree with most of (but not all)

what you have to say, Mr. Shop-Representative. May I request you to take the lead

and start the revolution by setting a personal example to others ?

I hear many voices in the distance. Please come forward, identify yourself and speakup

- whatever your views - politely, constructively.

Respected General Manager,

We received your bulletin - " Detroit faces the rising sun". I remained spell-bound to see

the guts of Americans, particularly of Marvin Craig, efforts taken by him to save the

industry, his ambition to surpass Japan, and his fight with the Management to achieve it.

I was glad to find out that persons who strive hard and work selflessly for the prosperity

of their company and ultimately of the country, still exist in this 'Kaliyug'. Sir, it can be

possible in any factory, in any country. There is no need of a miracle for this. Then you

will ask me, "What is needed for it?" I am trying to express my stray thoughts in this

letter.

Really speaking now-a-days, man's attitude towards "work" has changed. There are

very few persons who practice the famous saying "Work is Worship". Actually,

helping each other, awareness to others' agony, and faith in God are the corner

stones of Indian culture. If we use this strength, we can surpass not only Japan but

also any other power in the world. To achieve this, we must "act" instead of sending

letters, telling stories to others, or making speeches in public meetings.

Everyone must love his company as he loves his home. The feeling that duty means

"two punches and one lunch" existing amongst workers-must be driven out. He must

protect company's property as if it is his own. He must take joys and sorrows of the

company as his own. He must consider company's prosperity as his own. But for this

everyone of us must work hard, atleast for eight hours.

But how is it possible ?

I think, to achieve this, the atmosphere in the company must change, in the following

way :-

1. A worker should not feel that he is serving somebody for the sake of money.

2. interest in work must be created in him. 3. He should be motivated to do more work in

less time. 4. He should not have any worry except his work.

5. There should be no such questions as who works and who gets the work done.

But there is a snag in this. That is the 'confrontation' between the management

and workers. Management means officials. The officials should not think that they

are the owners and the workers are their slaves. On the contrary, they should think that

we all are equal partners in the endeavour. (It is necessary to have the fraternal feeling

instead of that of 'thief and police' or 'landlord and farmer').

The same question arises here. How is it possible ? For this, officials must observe the

following norms :-

1. To behave with workers

2. Instead of being partial they should treat all workers equally.

3. To encourage them by praising them on appropriate occasions.

4. To promote workers instead of bringing-in outsiders.

5. To counsel them about their shortfalls instead of taking disciplinary actions against

them.

6. To win them by showing concern and affection, instead of adopting coercive

methods.

7. To explain to a worker about his prospects.

8. To convince a worker that he is not a servant but an important asset of the

company.

9. To acquaint himself with worker's family background and remove his worries.

10. The officials should keep in mind that they are responsible for worker's future.

Take the example of our own company. It is urgently needed here that there should be

good relations between workers and management. For this the officials must take an

initiative, because they are more educated and cultured than the workers. What else

does a worker need, if he gets encouragement, praise and sympathy from his superiors

? If a workman gets these things which are easily available, he will definitely respect

and obey his superiors. They cannot expect good work from him unless a worker is

encouraged and rewarded for his good deeds from time to time. Everyone must take

care of the "ego" of others and must diffuse tensions of all sorts.

I talked to some officials regarding this. They think that it is too late to improve the

relations. I can also understand that it is not an easy tasks. But at the same time it is

not impossible to keep away everybody's ego. If old officials cannot improve these

relations, I would like to make a suggestion to the management.

They should transfer all the officials to different departments. So that these officials will

be new to workers working there. They will be free from biases and prejudices and

hence more objective.

What else does a worker need ? The workers will reciprocate officials' concern provided

the latter behave affectionately towards them, be friendly with them, respect them and

reward them on proper occasions.

To conclude, I can say that what you say "increase productivity", by letters or

by speeches is not enough. For this purpose, drastic measures as suggested above will

only help.

After all,. I am an ordinary workman, illiterate in comparison with you. Whatever came

to my mind, I wrote. See how far you like it. I am sure it is not difficult to

implement my suggestions provided you read them thoroughly,, brood over them and

accept them.

As General Manager (Powai), you are the top most official here, and you alone can do

what I have suggested. So please do not delay action (this is a request rather than an

order). Take the decision quickly, so that our company would prosper and everyone would

proudly say that "this is my company".

I could dare say this only because I could sense your concern for the company. You

always seem to be doing something or the other for the company and to some extent

you also meet with success.

I wish you greater success in your efforts and stop. I would be glad to know your views on

this.

H. C. PAREKH

Kamath and Kirloskar

September 30, 1984

W - 22

To:

Dear Friends

What is common between Kamath and Kirloskar?

Someone may say "both have names starting with K".

But that is not all. '

There is a lot more common between Mr. M.V. Kamath (Ex-editor of Illustrated

Weekly) who once addressed Powai Pageant correspondents and Mr. Chandrakant

Kirloskar - an eminent industrialist from Maharashtra.

For one thing :Both of them firmly believe that for industries to survive and grow, cooperation

between the employees and the management is inevitable.

For second thing : Both of them believe, with identical passion, that we, in India, can

learn a lot from Japan in this matter.

For third thing : Both of them believe, with equal concern, that time is running out on

us. If we do not act fast to patch up our differences, pretty soon there will be no

industry left in India, to provide jobs either to the managers or to the workers.' In the

following article, I present to you the thoughts of Mr. Kamath. In subsequent articles, I

will be presenting to you the thoughts of Mr. Kirloskar.

It is quite possible that many of you will agree with their thoughts.

But would it suffice, just to agree? Or, shall we translate some of these thoughts into

ACTION?

And if yes. How?

H.C. PAREKH

THE LANGUAGE OF COWARDS

November 11, 1984

W - 23

To:

Dear Friends

Indiraji is no more - physically. I suppose she will be remembered for many years to

come.

How many? Ten years, a hundred years, a thousand years?

Perhaps,

We do occasionally remember, great persons who lived a hundred or a thousand years

ago.

And on such occasions, we do even garland their images -photographs or statues.

Speeches are made. Their virtues are remembered, people are told to follow their path.

And no sooner the ceremony is over, everybody hurries home (surely you don't expect

people to WORK on a day like that'. ).

Anyway everbody alive, heaves a sigh of relief! Thank goodness, the birthanniversary

and the death-anniversary comes only once-a-year !

That leaves us clean 364 days to go about doing exactly whatever we have been

doing ! - including indulging in violence.

Because Violence is O.K. ! - as long as it is carried out to celebrate the memories of your

chosen hero - whether he was

- a religious saint

- a political big-wig

- a social reformer or

- a trade union leader.

Jesus Christ might have said, "Father, forgive them for they know not what they are

doing." But ours is merely a land of

- Buddha;

- Mahavir and

- Gandhi !

Ours is not the land of Jesus Christ!

So it is alright with us! A few people, here and there -what does it matter? After all

when we are about to forget, why someone died 2000 years ago or 2 years ago, we need

a new martyr to celebrate his death anniversary and to remind us to hurry home! - of

course grief-stricken!

So the vicious circle goes on and on.

No one stops to ask, 'How come violence has failed to solve the problems of the world?

- or for that matter, the problems of a community or even a company!"

This is because violence is the language of the uneducated and the cowards.

This is because people who resort to violence are indirectly admitting "defeat" - an

admission that they are incapable of changing the opponent by argument and logic and

discussion and reasoning - if necessary even by

- Sacrifice

- forgiveness and

- Love.

As far as I am .concerned, I would say,

"We cannot solve problems of the world or even India - but while trying to solve our own

small problems at Powai, let us remember not to use the language of "defeat". In this

factory (Nehru called it "Temples of new India"), let no one speak of violence - ever".

H.C. PAREKH

STEEL/ TEXTILE/ SUGAR/ RICE

BUSINESS INDIA

December 18, 1984

W - 24

To:

Dear Friends

I recently came across the following piece of information in 'Business India' - (November

1984).

"An Indian industrial worker has to work more than twelve times as long as his U.S.

counterpart to earn enough to buy the same basket of food, according to a survey

published in Geneva.

A U.S. factory employee can earn enough to buy a kilo of meat, a litre of milk,

500 grams of bread, plus fish, butter, potatoes, sugar and oranges in one hour 50

minutes - but his Indian equivalent has to work 22 hours 38 minutes to buy the same

things".

Is this not terrible? - that L&T-ites at Powai, have to work so much longer than the

American workers, to buy the same quantity?

Have you ever wondered why?

I will tell you why!

This is because Indian workers who are producing these things are very inefficient

and unproductive I They are taking too much time to produce the milk and the meat

and the bread and the sugar and all those other things'. They are not working fast

enough and smart enough! So naturally their cost of production is high - making their

products expensive.'

And to be able to buy these expensive products, we need more money. And to earn more

money we need to work longer than our American friends.

So far we talked about our having to work longer - but what about others who buy L&T

products?

Do they also have to work longer to buy our switchgear and our cement plants and our

dairy equipment because these are very expensive?

And why are these very expensive? Because we take too many hours to produce these?

Perhaps we will never know, because there is hardly an L&T product which is purchased

by the common man on the street (except perhaps our MK Starter which is bought by

the Indian farmer for his pumping set).

And the industrialist who purchases our equipment does not have to "complain" to us

about our high cost. He has an option to buy it from other companies - at a lesser cost!

Would you like to know the productivity of the Indian Worker? Here area few examples :

1. STEEL In our steel-factories, one worker is able to manufacture 60 'tons of

steel in one year.

in Japan, one worker produces 200 tons of steel in the same time!

2. TEXTILE One Indian worker produces 3 tons of textile (cloth) in one year.

A Japanese worker produces 10 tons of cloth in one year!

3. SUGAR An Indian worker produces 24 tons of sugar in a year.

An American? 430 tons!

4. RICE in India, one hectare produces 1870 kgs of rice.

In Korea one hectare produces 6780 kgs.

And these are 2/3 years old figures!

No wonder Mr. Chandrakant Kirloskar is worried!

At one place in the following article he writes,

"In Japan, 125 men manufacture 20,000 pumps and here in India (in

Kirloskar's own factory at Devas) as many as 750 persons manufacture only 10,000

pumps. What a contrast?"

So when it comes to manufacturing pumps, the Japanese are 12 times more productive

than us !

To find out why, please read the following article.

H.C. PAREKH

THE FUTURE

- SHOCK

December 28, 1984

W - 25

To:

Dear Friends

Last week one worker asked me, "Sir, for 1983-84, when will the "Balance-sheet" be

released? We are anxiously awaiting to know the company's performance".

I replied that, I could not tell him for sure but I expected it to be published by March 1985.

"But, why the anxiety?", I asked.

He was frank.

"Sir, I remember your circular on Mount Kailash and I am worried whether our

profitability in 1983-84 will be better or worse than in 1982-83".

So here was one person who remembered a 4-month old circular'. I hope he is not

the only one and that there are many others who remember this circular.

But more than that, I hope those thousands of employees who might have forgotten the

circular, are all working very hard right now to ensure that 1984-85 turns out to be a

bright year for profitability.

There is nothing.' that we can do now as far as 1983-84 is concerned. The past

cannot be changed. Whatever has happened has happened and we will all know when

the figures are published.

But the future is for us to make - through our own internal cooperation, harmony and

hard-work.

And after reading the following articles, if you think we should, somehow, try to avoid the

future facing,

Vulcan-Laval

Dunlop and

General Motors,

write to me and tell me How somehow?

H.C. PAREKH

BEGIN WITH YOURSELF

January 21, 1985

W - 26

To:

Dear friends

In August, I circulated to you a write-up on "America's Best Managed Factories." I also

requested you to find out whether the article contained any messages that we ought to

follow at Powai. I promised to publish the best write-up in Powai Pageant, thinking that

I will be flooded with write-ups from hundreds of our employees.

It has so happened that I have received only 6 write-ups !I should make my task easy to

select one best out of these.

But then I thought, "why not print all the six write-ups in my letter to all employees and

let them decide which one is the best? - something I could not have done, if there were

50 responses."

So read - on and decide for yourself.

As far as the "authors" are concerned, I would only say,

"Go all out and implement in your work-place those messages which you think we

should all follow at Powai. Make a beginning with yourself to bring about a change in

your surroundings. "

H.C. PAREKH

A SWALLOW DOES NOT A SUMMER MAKE

FEBRUARY 7, 1985

W - 27

To:

Dear Friends

That is how they say it in America.

But in India, we could say,

"A Bulbul does not a Basant make".

Even in Bombay, we are in the middle of a winter. The nights are so cold that my

thoughts turn to the poor who sleep on the foot-path.

In the middle of this cold winter-night, if I were to hear a Bulbul sing outside my window,

could I confidently say that Basant-rutu is around the corner ?

Obviously no !

Just one solitary Bulbul cannot mean that Basant-rutu has arrived ! The Bulbul must

have lost its way !

For Basant to arrive truely, we need many more Bulbuls -not

have come perhaps by an accident/chance !

only one who might

The same may be true of our profitability for the year 1983-84 !

Yes, the figures are finally published to end your anxiety" ?

Let us once again turn to our "Mount Kailash" and see what happened in

1983-84

Bravo !

Our profitability has improved by 0.3% in 1983-84 over the previous year.

Time for rejoicing ? Time to jump with happiness ?

Perhaps not yet !. Perhaps the winter is still not over. Perhaps this Bulbul has lost its

way .! Perhaps Basant is still far away!

How far ?

That is upto us !

In nature we cannot order the winter to "hurry-up and get out". It takes its own time.

But in a business-enterprise like ours, we can come out of the winter FAST - through our

own efforts. If we work hard (and smart) all the time, we can enjoy a Basant-weather all

the time !

So let us not waste time in celebrating, 0.3% rise in profitability I

Let us ask of ourselves,

"What must 7000 people at Powai do during the current year (of which 4 months have

already gone I ) to ensure that

our profitability rises by 3.0% in 1984 - 85?

If a direct worker of Kelvinator company in Delhi can increase his output from 8

refrigerators to 14 refrigerators/month in 5 years, (an increase of 75% in

producitvity!) why cannot we ?

And to think that the average wage of our SSA worker is more than double the wages

(including incentive bonus) earned by a Kelvinator worker !

And if anyone thinks that Kelvinator company may be using

more modern machinery

superior plant layout

better working conditions

greater mechanisation/automation

compared to our factories at Powai, then let him go and ask

Mr. R.B. Bhambhani

Mr. H.M. Daga

Mr. P.W. Karnataki

Mr. C.T. Nakhate

Mr. D.M. Shinde

(PGW)

(PSW)

(PGW)

(PTL) BKS

(PSW) Union

and they will tell you that Kelvinator has

a 24 year-old factory building

a very crowded shop-floor

15/20 year old power-presses -

Poor ventilation

very little mechanization

And yet they have managed to bring about a fantastic increase in their productivity.

How ?

If someone wants to suggest that it is because of their production-incentive scheme.

he is RIGHT !

The earnings in Kelvinator are linked to group and individual performance. The

employees have to

produce

earn

FIRST

LATER

Much the same way as in the case of the agreement in Premier Automobiles Ltd. (PAL) in

Bombay - just 2 months before we signed our own agreement.

PAL workers agreed to FIRST raise car production from 75/day to 100/day.

PAL Management agreed to grant Rs. 250 per month to each worker THEREAFTER - but

only as long as car production remained 100/day ! For a 33% increase in productivity .'

And if you do not take into account this incentive of Rs. 250 per month (which can go up

and down with the production and will be a ZERO at 75 cars/day), the rest of the

comparison between L&T and premier Automobiles looks like the following:

MINIMUM WAGE

(ALL COMPUTATIONS AT CPI 2513)

LARSEN & TOUBRO LIMITED

PREMIER AUTOMOBILES LIMITED

Before

Settlement

After

Settlement

Increase Before

Settlement

After

Settlement

increase

BASIC

D. A.

MONTHLY ALLOW.

46.80

868.26

191.00

55.90

911.89

591.50

9.10

43.63

400.50

287

435

183

287

435

543

-

-

360

TOTAL 1106.06 1559.29 453.23 905 1265 360

MAXIMUM WAGE

(ALL COMPUTATIONS AT CPI 2513)

LARSEN & TOUBRO LIMITED

PREMIER AUTOMOBILES LIMITED

Before

Settlement

After

Settlement

Increase

Before

Settlement

After

Settlement

increase

BASIC D. A.

MONTHLY ALLOW.

426.40

2097.98

228.00

465.66

2106.89

745.50

39.26

8.91

517.50

759

435

163

759

435

735

-

-

567

TOTAL 2752.38 3318.05 565.67 1357 1929 567

PAL workmen also agreed to,

u

a large number of casual and contract workers to be retrenched

u a large number of workers working on truck-assembly line to be shifted to the carassembly

line.

And although you may not have friends in Delhi who can tell you what is happening at

Kelvinator, I am sure you have friends here in Bombay who are working in Premier factory

and who can confirm or contradict my statements.

And if you do find out, how much actually the Premier car production has gone up

since signing of the agreement, please do let me know ! All I know is that the Maruti

car company (Suzuki-Japan collaboration) in Delhi

produced - 10,000 cars last year, plans

against management target of 20,000 !)

- 21,000 cars in current year (union's target

expects - 40,000 cars during next year !

And Maruti have a total of 1900 employees (top - to bottom) at present.

You may also tell this to your friends working in Premier ! Maruti employees do not wish to

keep this a TOP - SECRET !

They want employees all over India to know this !

And those L&T-ites who went and saw Maruti factory would be failing in their duty if

they do not tell you what they saw and heard at Maruti !

H.C.PAREKH

FROM TODAY I WILL DO THE FOLLOWING

February 28, 1985

W-28

To:

Dear Friends,

Almost 2 months ago, I presented to you PART-1 of an article written by Shri Chandrakant

Kirloskar.

Today I present to you PART-II - the concluding part.

In this part, Mr. Kirloskar asks, "Why have we fallen behind the advanced countries ?"

Is it because,

we are fatalist by nature?

Instead of getting rid of our 10,000 year old social caste-system, we have

extended it further into the fields of education and industry?

we always look-up to either America or Japan for answers to all our problems

and have nothing in our own civilization and culture to provide such answers?

Instead of being result-oriented we have become procedureoriented?

(operation successful but the patient died ! )

Mr. Kirloskar has provided some answers (to his own questions) in the-following

article. If you too have some answers, please do write to me soon, because time is

running out !

But while suggesting solutions, try the following approach :

"Dear Mr. Parekh,

From today, I will do the following :

1.________________________

2.__________________________

H.C.PAREKH

SECRETS OF EFFICIENCY

February 28, 1985

W-28

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

Speech Delivered By H.C. Parekh On The Occasion Of Swami Chinmayanandaji's Talk On

March 8, 1985.

H.C. Parekh

COMPETITION DOES NOT GIVE A DAMN

April 8, 1985

W-30

To:

Dear Friends,

Can you lock yourself "out" of your own house - even when you are holding the "key" in

your own hands ?

This is what seems to have happened at IIL (International Instruments Ltd.) Bangalore,

one year ago.

The owner of the company Mr. Krishnan apparently believed in the Gandhian concept of

"Trusteeship". So he made all workers share-holders of the company. He must have

thought,

"... if the workers own the Company (even partially), surely they would work very hard and

keep it competitive"

But that did not happen!

The workers paid themselves the highest wages (for the instrument industry) - you

see, they "owned" the company!

Material plus labour - cost added upto 81%. Many departments became uneconomical -

sick.

So when the Management decided to close down these departments (I suppose, to

save the rest of the Company!), the workers went on a "sit-down" strike!

That is what I call, "locking yourself out of your own house." it is, like punishing one's

own self!

But let me tell you one thing. Competition does not give a damn whether you own the

company or you are a paid employee'. If you cannot compete, you are simply finished!

And much as I would like L&T-ites to think that it is the society - the Nation - which

ultimately owns this company, all that philosophical talk of "ownership" is completely

meaningless unless we are productive - enough to face the competition and sell our

products in the market.

And most unfortunately, when we are facing severe competition in Switchboards,

Dairy-products, Chemical plants and many other products, I find some employees

raising petty, selfish issues and obstructing productivity! I hope they will read this

article and cooperate with the Management in making ourselves competitive. No

company -not even L&T - is beyond the threat of competition.

Educating employees and persuading them to give-up unproductive practices are

important responsibilities of management.

But then no one can save a person who wants to lock himself out of his own home!

H.C. PAREKH

WILL FREE IMPORT KILL US? / FREE MARKET

April 26, 1985

W-31

To:

Dear Friends

In the enclosed article you will read that

1. Political leaders of Europe are adopting "free-market" policies (free imports and

exports).

2. European governments are reducing administrative expenses.

3. They are drastically reducing labour-wage increases.

In our own country, we see similar actions being taken by the new government of Rajiv

Gandhi, e.g.

The new export-import policy announced by the Government on 12th April will permit

liberal (in many cases without any licence!) import of raw materials required to increase

production. So that will help manufacturers like L&T. But the policy will also allow liberal

import of fully manufactured items from abroad -such as fertilizer plants, chemical plants

etc. That would help users, and that would also mean L&T will have to compete with

foreign manufacturers who are hungry for orders.!

This may mean that L&T may not get a single order out of the six giant fertilizer plants

which are to come-up in North India during next 4/5 years'. The orders may go to a

European or Japanese manufacturer under the New Import Policy!

Can we afford to lose orders worth Rs.80 - 100 crores in the next 5 years?

Obviously the answer is

"we cannot afford".'

On the other hand, our wages/salary have been climbing rapidly at an average of

Rs.250 per month per employee

EACH YEAR!

Proportion (percentage) of manpower cost to our total output at Powai is rising so fast

that many of our product-lines may have to be closed down very soon!

If you have any doubt, see the following chart:

If you do not understand or have any doubts, ask the nearest production manager or

personnel officer and he will explain to you.

We have 3 methods to survive:

METHOD I

: Do not allow manpower costs to rise

(i.e. a freeze on wages & salaries)

but increase OUTPUT.

METHOD II

: If we cannot increase OUTPUT

then reduce MANPOWER-COST (by

accepting a cut in wages/salaries)

All over Europe and America, Managements

and Unions are adopting Methods I & II

(See enclosed Article)

method III

: Allow Manpower cost to rise but,

Somehow ensure that OUTPUT per employee

rises at a

faster rate. That means much higher

employee productivity - and NOW!

I am sure all of us (myself included) at Powai

would like to adopt this method - if only we

can make it work.'

And although employee productivity has gone up between 5% - 20% in different shops

in Powai during the last 10 months, apparently this increase is not ENOUGH to

offset the rising manpower costs.!

The chart is all too clear. We can ignore it at our own risk!

There is a limit to how much of our increasing costs we can pass-on to our customers

in the form of increased selling -prices.

And I have a feeling that in April 1985 we have reached that limit at Powai!

Before our customers run away to our competitors and before we start losing orders, let

us do some serious thinking.

Q. How can we increase our output rapidly ?

Q. How can we decrease our Manpower cost ?

Q. How can we decrease our manpower itself ?

By not replacing "separations"? By offering "Voluntary Retirement" to those who

are incapable of improving productivity ? And suppose some of those

"incapable" persons do not accept Voluntary Retirement, then what do we do ?

Those who do not wish to experience "Europe" in Powai, please raise your hands !!

H.C. PAREKH

ABSENTEEISM

June 7, 1985

W – 32

To:

Dear Friends

Whenever we talk of improving our productivity, we are also forced to talk about

absenteeism.

First thing we have. to do to improve productivity is to remain present at work. All of

you know by now that Output

Productivity =

Effort

But if we are absent from our work-place, how can we possibly make any effort ?

It is only when we are physically present at our work-place that we can think of

Working (at all! )

Working harder (as an individual)

Working smarter (efficiently)

Working as a team (effectively)

After subtracting

52 Weekly offs and 8 Paid holidays "60"

from 365 days of the year, we can maximum work for 305 days in a year.

But, once-in-a-while, we,

get sick

have guests at home

wish to relax with our family on a vacation

for which we take,

Sick Leave (SL)

Casual Leave (CL)

Privilege Leave (PL) resp.

And since some of these things are likely to happen sometime or other, to all of us, the

Union and the Management have disucssed and fixed certain "Maximum Limits" for

different types of leave that an employee may legitimately take during the course of a

calendar year.

As long as actual leave taken by an employee is within these maximum limits, he (or she)

does not lose wages.

These limits are shown below:

1. SL * DR/15 Mr/15

CL 8 10

PL 27 30

Max. Total 50 55

(* 9 days for those covered under ESI)

2. Now if an employee were to remain absent from work, to the full extent of these

permissible limits, he would be left in a year with

255 Working days (for DR)

250 Working days (for MR)

3. During 1984, the average employee strength at Powai was

DR Employees 3713

MR Employees 1120

Total 4833

4. So multiplying, .we had the possibility of available man-days as follows:

3713 x 255 = 9,46,815 Man days (DR)

1120 x 250 = 2,80,000 Man days (MR)

Total = 12,26,815 Man days

This is 2,47,250 man days less than the maximum available mandays of (305 x

4833) = 14,74,065.

Thus the company stands to loose 2,47,250 mandays if everybody took every kind of

leave to the full extent.

However, not all of us:

u fall sick for 15 days in a year

u have guests for 8/10 days in a year

u go out on vacation 27/30 days in a year.

So not all 2,47,250 man days are lost due to PL, SL, CL.

But just as many. employees do NOT use up their full quota of various kinds of leave,

there are a few others who even exceed their quota.

Of course, they do not get wages for this "extra/excess" days of leave. In some

cases, the Foreman/Supervisor may have authorised this extra/excess leave, if it was

applied for in advance and if he was satisfied that it was genuinely needed. But there are

many cases where such absence is "unauthorised loss of pay (ULOP)".

The table below indicates the colossal number of mandays lost due to authorised and

unauthorised loss of pay leave in the financial years 1982-83 and 1983-84.

For the company, it is a small consolation that it did not have to pay wages for such

authorised/unauthorised "loss of pay leave/absence". Compare the figures of wages lost

by workmen (due to loss of pay leave/absence) with the production loss due to this

kind of leave/absence, for the last two years.

Year

Mandays lost due to unauthorised

absence & authorised loss of

pay leave

Wages lost by

Loss of Production

workmen (Rs.in Crores) (Rs.in Crores )

82-83 46994 0.27 4.9

83-84 44950 0.33 4.7

You will also notice from the above table that in 1982-83, loss of 46,994 mandays due

to loss of pay leave/absence resulted in wage loss of Rs.27 lacs, whereas a lesser

number of mandays due to loss of pay leave/absence (i.e. 44,950) resulted in much

higher wage loss (Rs.33 lacs) in 1983-84.

This reflects the increasing cost per employee per day. But then that is another major

subject which I have already been writing about and more on this may be saved for future

bulletins.

H.C. PAREKH

LEARN YOUR LESSON

October 2, 1985

W-33

To:

Dear Mr.

The way you drove the car yesterday while returning from Lonavala was bad. On one

ocassion, while overtaking a truck, we narrowly missed being over-run by an oncoming

truck. This was a case of very poor judgement. But for the forgiving nature of the

Lord, the company would have lost a Vice-president, a General Manager, a Deputy

General Manager and a normally-good driver!

When God has forgiven you, I do not wish to give you a charge-sheet and conduct a

trial. But you must learn your lesson and for that I am asking Transport Manager not

to assign you anymore driving duty for Senior Managers. As far as you are concerned,

please remember that all lives (which you may drive) are equally precious!

God bless you.!

H.C. PAREKH

WHO WILL BUY THE PSUS

December 6, 1985

W-34

To:

Dear Friends,

What is Common Between

a) Refrigerator industry

b) Central Govt. Staff Strength

c) Tamil Nadu Electricity Board Agreement with Union ?

Apparently nothing - except that the following reports appeared on a newspaper on the

same day !

What difficulties are being faced by refrigerator manufacturers ? To name a few:

Rising Material/Component Costs

Rising Labour Costs

Heavy Taxes (excise etc.)

Fierce competition (entry of voltas)

Slack demand.

The report says Kelvinator is carrying a stock of ONE LAKH refrigerators valued at Rs.30

crores!

This is despite reports that Kelvinator has not raised its selling prices during last 5 years

- and this is despite the fact that Kelvinator employees raised their productivity by 75%

in the same 5 years (from 8 refrigerators per employee per month to 14

refrigerators per employee per month) (See my Circular of .7.2.85).

Amongst the ''products that we make at Powai, do we have any which will endup

like refrigerators with profit margin of only 0.8 to 0.5 percent ?

In my February circular, I had also mentioned about the productivity of Maruti -

employees.

Last month, while in Delhi, I got the latest figures about Maruti from one of their senior

executives.

S.No. Country/Company/World Average Cars assembled per

employee in one year

1 Premier Automobile/

1.9

Hindustan Motors

2 World Average 19

3 Maruti Udyog 25

4 Nissan (Japan) 40

The news-report on "Central Govt. Staff Strength" speaks of

Winding up departments/sections

Reducing Staff Weeding-out inefficient, unwanted corrupt employees

Recruitment freeze of last 3 years

10% reduction in staff strength Sub-contracting/Leasing out

Surrendering unfilled posts

Handing over loss-making units to private sector

But if a private-sector unit starts making loss, who shall it hand-over itself to ?

To Govt. ?

No chancel ! The Government is not likely to make that mistake again!

And as far as other private-sector companies are concerned, there are a few willing to

take over a "Sick" unit. And if ever someone is ready, his first condition is,

"Get rid of all your existing employees before I take over".

And in case you have not heard. National Rayon had a 18 month strike/lockout in 1984-

85. They reopened in May 1985, but are back in trouble once again. And this time it

looks like "terminal" illness'. Their chief executive Mr. R.P. Kedia is reported to have said

(Fin Exp. Oct.17) that

it took National Rayon 30 years to build up a reserve of Rs.27 crores.

it has taken 3 years of employee agitation to reduce it to ZERO;

And further east in Durgapur, The Alloy Steel Plant (ASP) of Central Govt. has accumulated

a loss of over Rs.ll7 crores! With manpower numbering 7400 and

earning an average of Rs.35,000 per year (highest amongst SAIL plants), direct

manpower-cost alone comes to Rs.26 crores/year! And from October 3, they

have "stopped working"'. (This assumes that they were "working" earlier!!)

Mr. Nayak, a Senior Executive of that Company has appealed to the employees in the

following words.

"In view of disturbing financial position of the Company, such a plant would have to be

closed down but, this was not done because it is still hoped that the plant would recover

by the determined and united efforts of all of us ... Any industry has to make internal

efforts to counteract adverse external conditions in order to survive ... Total manpower

should not be further increased. This is a necessity for the survival of ASP ... It is wellknown

that overmanning led to reduction of efficiency of individuals as well as groups of

people".

Turning to the agreement signed between Tamil Nadu Electricity

Board (TNEB) and the unions, we find that the staff strength will be reduced as follows:

Field staff ... 19300

Revenue staff ... 3610

Stores Staff ... 150

Total : 23060

But will someone explain the meaning of,

"The Post of Helper ... has been abolished but 18250 helpers now in employment will

not lose their jobs as 26700 posts are lying vacant because of no recruitment to

this cadre since 1974."

I have asked for details, but I suppose they know what they are talking!

Whichever way you look, the message is clear. it is no more

"Produce or Perish" It is,

"Produce productively or perish"

In the context of Powai Works, this reads, "Produce more with less people or perish"

And we do not have to go very far to understand why I am making such a statement.

In the seventeen months,

up as follows:

D.A. (Rs./month)

(since we signed our 4-year agreement), the D.A. has gone

Increase

April 84 Sept. 85 (Rs./month)

Min. D.A. 906 1021 115

Max. D.A. 2160 2436 276

After we allow for,

Service increment of April 1984

Normal increment of April 1984

Normal increment of April 1985

wages, at Powai, have gone-up as follows:

TOTAL WAGES (RS./MONTH)

AT MIDPOINT OF THE GRADE

Month Clerk I Steno A TA I HS SB SSA

April '84 3366 3253 3251 3208 2530 2246

Sept. '85 3728 3643 3635 3585 2987 2629

Net )

increase )

per month)

362 390 384 377 457 383

Wages include Basic, DA, HRA, LTA, SPL Allowance, Medical Allowance and Conveyance

Allowance.

And what is expected to happen to our manpower strength at Powai ?

Let us see

Retirements in

Calendar year 1986

Net Additions planned

during budget-year 85-86

1. Sup/Of f/Cov. 14 36

2. M.R. (Unionised) 14 21

3. D.R. (Unionised) 14 21

Total 42 78

(* excludes all types of Trainees)

What I do not know for sure is,

"While calculating net additions whether replacements for persons retiring are included or

excluded".

And I suppose, it would be a safe guess that

"Department-heads will certainly ask for replacements of employee separations due to

death/resignation/termination".

What will this do to us? This rising manpower and galloping wages ? If there is

very little we can do to stop wages from rising, let us at least bring-down manpower!

And let us do this before some of our products sink below the minimum profitability-line,

taking some of us with them!

It is time to stop saying "this is not my job".

Tomorrow there may be no job!

H.C. PAREKH

GET RID OF THE DEAD-WOOD!

December 23, 1985

W-35

To:

Dear Friends

Only a few days back I wrote to you regarding the problems being faced by

- Refrigerator industry

- Alloy Steel Plant – Durgapur

Thereafter I came across a write-up about ASP in a news paper - reproduced below:

It reads

"ASP management has given an assurance (to the Union?) not to declare any worker

surplus...."

This I do not understand.!

Due to changing technology/methods or due to lack of orders or due to any reason whatso-ever,

if people become surplus, one has to simply declare them as "surplus"!

The facts cannot be changed! even if you were to hide your face in the sands like an

ostrich! I Facts remain facts!

On the other hand I can understand very well that a management gives an assurance

to such surplus employees that although they are surplus, they will not be retrenched.

But if any company has to carry such "Dead-Wood" on its shoulders, it goes without

saying that the remaining workforce has to become even more productive than before.

Unless, of course, that organisation decides to get rid of the "Dead-Wood" as it seems to

be happening in the Andhra Pradesh (read following article).

In this Vikram Samvat 2042, it looks as if even in "Ram (Rao) Rajya", it has

become a matter of "survival-of-the-fittest" and consigning dead-wood to the

flames!

I don't think it can be any different proposition in "Shiv(Rao) Rajya" !

H.C. PAREKH

KTL VS. KCL

January 31, 1986

W-36

To:

Dear Friends

KTL stands for Kirloskar Tractor Limited, and KCL stands for Kirloskar Cummins Limited.

And, when I wrote KTL Vs. KCL, my intention was not to make it sound like "Australia

Vs. India", but I do like to read about corporate matches (since you cannot see them on

T.V.).

After reading the enclosed articles, you may discover more mis-matches than I could -

and if you do, please write to me.

In KTL article, I discovered mis-match between:

Size of market Vs. licenced capacity

Licenced capacity Vs. installed capacity

Installed capacity Vs. actual production

Actual production Vs. inventory level

Market demand (35 H.P.) Vs. product made (75 H.P.)

Competitor's price Vs. KTL's price

Competitor's material cost (75%) Vs. KTL's material cost (85%)

The only item in which KTL scored over its competitors was "salaries and related

expenses" which, in their case, were only 7%, as against 8% of other reputed

tractor manufacturers. (I have not revealed this figure for L&T's Powai Works).

But, apparently' it did not help KTL - holding just one card of Ace. For remaining alive, in

a "dog-eat-dog" type of competition, a company needs, besides an "Ekka", several

other cards of "Raja" and "Rani" and "Gulam". It is never enough to have just one

"Ekka". And it seems that this is what KCL (Kirloskar Cummins Limited) is also

discovering:

KCL's "Ekkas" seem to be their

- share of the diesel engine market (45%) and

- fast rising employee productivity.

See following table.

Year No. of employees No.of engines

manufactured

Engine per employee

1973-74 1,865 2,206 1.2

1983-84 1,865 6,400 3.4

Therefore, rise in productivity = 28.3%

And, Arun Kirloskar says,, "we are, perhaps, the only diesel engine manufacturing company

which has not raised prices for the past four years, despite escalations in the prices of

basic inputs. Rather, we have successfully absorbed the increases in input prices by

improving productivity".

So, on one hand, we have KCL which, because of its high productivity (this is my firm

belief), is able to sell 22% of its production abroad (including to U.S.A), and on the

other hand, we have KTL which finds it difficult to sell its tractors even within India - with a

1.8% share of the market.

And, if the top Manager of the "most profitable company in the private sector in 1983"

(Economic Times) worries that,

"At this rate, engineering companies, such as KCL, may not see the 21st century",

What, may we expect to happen to us?

H.C. PAREKH

PRODUCTIVITY AND UNEMPLOYMENT

February 12, 1986

W-37

To:

Dear Friends

Does increasing productivity increase unemployment? Let's look at the fundamental

definition of Productivity.

Productivity is equal to Output

manpower

Let us take an example of our famous MK-1 starter.

In 1979-80, we used to take 167 manhours for final assembly of 1,000 nos. MK-1 starters.

Today, we take 133.8 manhours for final assembly of the same number of MK-1 starters.

1979 productivity is equal to 1,000 starters = 5.98

167 manhours

1985 productivity is equal to 1,000 starters = 7.49

133.8 manhours

That means with one manhour, we are able to assemble 7.47 starters in 1985 as

compared with 5.98 in 1979.

Therefore, rise in Productivity = 24.8%

During the same period, (1979-85) the wages of the Assembly Worker (working in MK1-

Final Assembly) went up by 282%!!!

But CPI Index went up by only 179% in the same period.

So you have seen that Productivity - increase, means "doing same with less manhours".

That means, we require less men than before (to produce the same quantity).

That means, "surplus" people.

That means, unemployment!

Seems so simple! Some people (the surplus-ones) must lose their job !!

By now, you are itching to ask!

"If that is so, why the hell must we increase productivity?

- If that means throwing some people on the roads?"

The answer is equally simple.

If we do not throw some of our people on the road, the competitors will throw all of us

on the road !!

If our productivity does not increase (even at the cost of a few jobs), our cost will keep

going up and we cannot sell our products in the market.

And, if we cannot sell our products, we do not need anybody.

- the Managers

- the Engineers

- the Accountants

- the Stenographers

- the Store-keepers

- the Workmen

- the whole lot !!

And this is what seems to be happening in Europe & elsewhere right now. To give you an

example, please see the chart below showing number of employees shed by 8

reputed companies.

Name of Company

Employees shed or proposed to be

shed (Nos.)

1. AT & T's information System Division 24,000

2. Ford Motor Co. 10,000

3. Union Carbide Corpn. 4,000

4. C B S 2,000

5. Motorola Semi-Convertor Group 9,200

6. Du Pont 11,200

7. Kodak 9% of its workforce

8. Warner-Lamber Co. 21,000

Source : Fortune (international) Magazine October 28, 1985

Compared to America, and Japan, the European productivity continues to be low.

Hardly a day passes without some European factory closing down (because they

cannot sell their expensive products), throwing hundreds of employees on the road.

This is especially true of the European Automobile Industry. This is why I have made some

notes from a recent article in TIME magazine, which I am reproducing below. Now, I

would like you to answer the question,

"How come, Europe, whose productivity has remained static/stagnant over the last

8/10 years, has a rising level of unemployment, whereas America, which has increased

its productivity has created 18,00,000 new jobs during the same period?"

Did you say, " ... increased productivity means losing jobs?"

H.C. PAREKH

FLOGGING A DYING HORSE

February 28, 1986

W-38

To:

Dear Friends

The correct idiom is "flogging a dead horse" but there is every possiblity that the horse

(Scooters India) is dead by now.

This is because the enclosed article about SIL is almost 18 months old.

And as of Dec. 31, 1985, we have such 93,282 dying (or dead?) horses in our

country. These are known as "sick units". What I do not know is whether the above

mentioned figure includes public-sector (Govt. owned) sick-units or not. Most of these

are sick in fact VERY SICK. if you wish to know how "sick", here are some "temperaturereadings".

No. Govt. unit Loss in last 3

years (Rs. CRORES)

1. Engineering Projects India Ltd. (EPI) 90.0

2. Hindustan Steelworks Const. Ltd. (HSCL) 67.0

3. Cycle Corporation of India Ltd. (CCIL) 8.8

4. Scooters India Ltd. (SIL) 50.0

5. Tanneries & Footwear Corp. of India Ltd. (TAFCO) 53.0

I understand that the Govt. is planning to wind-up (close-down) the first 3 units

and merge the remaining 2 units with some successful public or private sector company.

From the "Dying Horse" article, we find that neither Bajaj nor HMT wants to even touch

Scooters India!

And no wonder I A similar company in America would perhaps employ 500 persons

whereas Scooters India has employed 3500 persons'. Reminds me of Bombay Municipality!

if BMC can sack (terminate/retrench) half of its employees, productivity would go up

FOUR TIMES! (If you do not believe me, next time stop and count the number of persons

pretending to dig a hole for a faulty telephone cable !).

And talking surplus labour (?) HSCL has 12000! (See following article)

How long before some of us muster enough courage to ask

"Am I my brother's keeper?"

H.C. PAREKH

ECD Vs. ECD

July 13, 1986

W-39

To:

Dear Friends

If this title sounds like India vs. England that means you have been watching TV.

But test-cricket is being played in far away England and is normally entertaining.

Whereas,

ECD Vs. ECD is going to be played right on our home-ground (that is, Powai) and it is

going to be a grim battle for survival.

Now if you are curious what is this all about, let me explain.

You have already heard about the first ECD - Which stands for Employee Convertible

Debenture.

Last year. Government of India announced a Scheme under which a Company may offer

such debentures to its employees. Under this Scheme, an employee may deposit every

year, either Rs. 500 or Rs. 1000 or Rs. 2000. At the end of the 5th year, the total amount

is converted into company's shares (at a fixed price decided by the Govt.). The

employee cannot sell such shares to anyone for the next 2 years.

The whole idea is to make an employee feel that if the company prospers, his

investment also grows. So it is in his self-interest to see that the company prospers.

But how can an employee help the company to prosper ?

I will come to that a little later, but first let me complete the story of the first ECD.

On 27th March of this year, L&T, our company, became the first Indian company to

request the existing share-holders for permission to allot 500,000 shares to the employees

I am not surprised that the share-holders approved this proposal without any

discussion. It only shows their great faith in L&T's Corporate Management. They firmly

believe that whatever proposal Corporate Management wish to implement, will

definitely make the company grow and prosper.

But what did surprise me - somewhat - is the fact that our Management thought of this

proposal in the first place - and having thought, they decided to implement it. On the

face of it, there was no need.

Issue of ECD (Employee Convertible Debenture = Shares) was neither a collective

bargaining issue nor a requirement under any law !

But then there was no need to be surprised. After 27 years in L&T, I should know better !

In whatever they decide - and do - L&T Management has always kept in mind the longterm

interest of its employees !

And that brings us to the second ECD.

And this ECD stands for Economy (Co- operation) Drive !

And so that there is no doubt in anyone's mind, let me say this at the very outset,

"This decision to launch an Economy (Co-operation) Drive is also in the long-term interest

of the employees".

And if in the process, some short-term benefits have to be sacrificed - then these have to

be sacrificed !

This ECD was launched by our Chairman on 5th June when he told a group of General

Managers,

" For some years now, our costs have been rising, the competition growing, our

margins are shrinking and our profitability (ratio of Profit-before-tax to Sales)

continuously declining. We must reverse these trends. We must fight, like hell to

- cut costs

- improve capacity utilisation

- increase employee-productivity

- eliminate waste

- increase market-share

- work harder/work smarter,

On 2nd July, at Powai, Chairman conveyed this message to a larger group of managers

and their commitment was sought.

On 5th July, Chairman spoke to managers at Madras and on 10th July to our managers at

Delhi.

More meetings are planned, both in Bombay and at other L&T locations, during the next

few weeks.

Managers, everywhere, are being asked to give their suggestions for cutting costs

and improving productivity.

But clearly that is not enough ! When it comes to managing productivity-improvement,

every employee is a manager !

And that is why "Co-operation" is the middle-name of this second ECD - Economy (Cooperation)

Drive !

So it is. ECD vs. ECD.

As I said earlier, it is going to be a tough fight - and it must be fought in every place

where an L&T employee works. And it must be fought with grim determination. We must

make it a "no-nonsense" fight.

For the last 6 years, I have been sending these letters to you - pointing out the

dangers on the horizon. Now, the danger is at our door-step!.' It is time to dig in our

feet and fight back.

We must fight,

- Lethargy

- Absenteeism

- Lack of discipline

- Complacency

- Unproductive (or obstructive) employee-practices

- Wasteful work-practices, etc.

But we cannot fight these things, if we keep fighting amongst ourselves.

It is high time we forget our differences - if we have any. It is high time we forget our

narrow, selfish, individual interests and, in whatever we say and do, first ask,

"What is in the best interest of L&T ?".

More than 40 years ago, Netaji Subhas Bose had told his soldiers,

"Give me your blood and I shall give you freedom"

Today our Chairman seem to be saying

"Give the company your ECD and the company will give you ECD".

I am sure we will not be found lacking !

H.C. PAREKH

ECONOMY (CO-OPERATION) DRIVE

July 21, 1986

W-40

To:

Dear Friends

All recruitment stopped

Decision

Stop giving Calendars/Diaries

No more gift-articles

No more greeting-cards (our good wishes are

always with them ! )

VPs/GMs to travel by Economy-class

Aimed at

- Better utilisation of existing

manpower (employee-productivity

must go up ! )

- Reduce Cost

- Reduce Cost

- Reduce Cost

- Reduce Cost

10% cut in car-mileage of Covenanted Staff - Reduce Cost

Cut down use of

- Reduce Cost

Stationery

Telex/Telephone

Hired cars/office cars

In Canteen

- Increase employee-

Eliminate Overtime

Eliminate Wastage

Reduce variety/frequency

Substitute expensive items (without

reducing quality)

- productivity

- Reduce Cost

If you must travel, use transit-houses (instead

of hotels)

Reduce Seminars/Conferences

- Reduce Cost

- Reduce Cost

Stop/Reduce purchase of "indirect

or supportive Capital Assets"

Stop purchase of photocopying machines

Substitute (proposed) magnetic card

attendance equipment with cheaper electromechanical

equipment

Use "Standard" furniture

Use cheaper quality of paper in all

- Reduce interest-burden (less money

to be borrowed from banks)

- Reduce interest-burden

- Reduce interest-burden on borrowed

funds

- Reduce Cost

- Reduce Cost

publications

printed forms

stationery

Cut down copies of newspapers/magazines

Postpone aerial photo of Powai

Switch-off fans/lights/ air-conditioners when

not required

Postpone IR study-visits to other companies

Reduce lunches hosted at Lunch cottage

Reduce water consumption by throttling

Apply only one coat of paint to buildings (in

place of two)

- Reduce Cost

- Reduce Cost

- Reduce Cost

- Reduce Cost

- Reduce Cost

- Reduce Cost

- Reduce Cost

This list is not the "end" - the battle has only begun !

In the meantime I welcome suggestions from employees on

Cost-reduction (without sacrificing desired quality ! - very important)

Productivity improvement.

And I request Supervisors and Managers to encourage employees to come up to them and

share their suggestions - so that the same are implemented even before they reach me

'And I request managers to tell me what they have implemented successfully in their areas

- so that I can give these wide publicity through my letters. May be others can do

likewise.

"Therefore, with determination, get up and fight - 0 Arjun" (Gita).

H.C. PAREKH

Economy (Co-Operation) Drive

July 28, 1986

W-41

To:

Dear Friends

While I am waiting to be flooded with suggestions - and decisions - I took the

opportunity to explain the "why" and "how" of the economy drive to the Works

Committee - on 13th July.

WHY ?

A. Our profitability has been declining continuously for the past few years.

HOW ?

By increasing all-round productivity, of all resources and inputs.

"Productvity is a Many-Splendoured Thing"

TARGET

1. Profitability (PBT ) = TO go up to 15%

Sales (from 7.7% in 84-85)

2. Wage Bill_________(Powai + Madh) = TO COme down to 15%

Stores crediting(at Sales (from 26.0% in 84-85

Value ) - (Powai + Madh)

I have distributed some charts/data to members of the Works Committee. If he does

not volunteer to share this information with you, go and ask him (during lunchbreak-surely

you do not wish to waste one minute of your "productive-time" !).

If you do not know who represents your department/section on the Works-Committee,,

ask your Foreman/Supervisor.

In the meantime, I have already shown, to some 50/60 foremen/ supervisors, a film

called,

"PEOPLE & PRODUCTIVITY: WE LEARN FROM THE JAPANESE".

I will be showing it to the rest within the next 4 weeks.

An in case you are willing to stay-back after working hours in order to see this film, just

phone cynthia/Manju on extn. no. 497 and give your name, P.S. NO., and cost-cent

re/ department. As soon as I have received 20 names, I am willing to show this film

to you personally and discuss with you what we can learn from the Japanese.

H.C. PAREKH

P:S: In view of the Economy Drive, I am not sending individual copies. If you

chance to read this on the Notice-Board, please tell others.

THE NEW ALPHABET

July 31, 1986

W-42

To:

Dear Friends

In department 2305 (Press Shop on the ground floor of Switchgear East), Mr. Dilip

Shinde and his 85 co-workers are learning a new alphabet.

It goes A, B, C .........

Except that, here :

A = ALWAYS

B = BETTER .

C = CO-OPERATION.

Who is teaching them this new alphabet ?

May be Mr. R.S. Nehra - the Shop Manager - who, himself, may have learnt this new

alphabet from the film,

"People & Productivity: We learn from the Japanese".

Or may be Dilip learnt it when he visited MARUTI car factory alongwith me, a couple of

years ago.

It is not important who learnt it and when. What is important is that they are

practising it I Following note from Mr. Nehra is the proof :

" Dear Mr. Parekh,

Press Shop - Powai East, Dept. 2305 have achieved

higher labour productivity of 87% which is higher

than budget of 86.25% fixed in 1984 agreement.

It is consistently higher in the last 3 weeks.

This is for your information.

R.S. Nehra

(20.7.86)

Congratulations, Dilip

Congratulations, Nehra

and convey my congratulations to all your colleagues.

You are showing the way to the rest of us in Powai

his soldiers while conquering Sinh-gadh !

- like Tanaji Malusare showed to

"Where one man can go, a hundred can go and where a hundred can go, a thousand can

follow".

Even when you build a building, you first build the ground floor and then the first floor

and then the second floor.

So, I am not surprised that in the Switchgear-East factory, the ground-floor is FIRST.

But then the first floor can become second .' - and a group of 13 workmen from the

.second floor can become the "lucky" third if they too practice the new alphabet. Last

week, I met them and asked them to go beyond A, B, C, and learn D, E.

D = Double

E = Effort

In the meantime, I am waiting for some more letters.

H.C. PAREKH

P:S: In view of the Economy Drive, I am not sending individual copies. If you


A COUNTRY FIGHTS BACK

August 3, 1986

W-43

To:

Dear Friends

Bob Hawke became Prime-Minister of Australia in March 1983. Until 1980, he was head

of "Australian Council of Trade Unions". That makes him a strong labour-leader.

Before Bob became Prime-Minister, Australian economy was in a bad shape.

Unemployment was close to 10% and inflation had crossed 11%

But within 2 years of Bob taking over the Govt, economy started growing by 5% every

year, inflation came down to 5% and unemployment dropped below 8%, the budget

deficit came down from $ 6 billions to $ 3.5 billion.

But things started getting bad again in 1985.

Unemployment again went upto 7.8%

Inflation climbed back to 9.2%

Export deficit rose by 14%

So Bob has decided that his country must fight back - and he is telling his countrymen,

"As a consequence, we have, for the time being, to accept reduced

standard of living and, permanently increased standard of-effort".

Although Bob runs the risk of becoming unpopular (especially with his trade-union

friends) he has taken the following decisions :

1. In place of two big wage increases every year, the workers will get only one wage

increase this year - and that too a small 2.3% I

2. An appeal to the Directors and Senior Managers not to raise their own salaries.

3. income-tax to continue at present level. Reduction promised in September to be

postponed.

4. public services (such as transport, hospitals, education, etc) will be reduced.

5. To get their benefits, unemployed persons will have to clean streets and parks.

6. imports will be reduced.

We don't know from where Bob got these ideas. One possibility is that he got

these from Prime-Minister Lee of Singapore.

Lee announced a freeze on wages a few months ago, in his tiny country. Singapore is a

small country - about the size of Andheri + Vile-Parle + Santacruz ! Well, may be you

can add Goregaon !!

But it's exports are more than the exports of the whole of India I Singapore's economy

was growing by 12% - 15% each year for the last 15 years (against 4% - 5% growth

of our economy). But 1985 turned out to be a bad - very bad-year for Singapore too.

There was no growth in economy I - a round 0 (zero) % !

But Prime Minister Lee is a tough man. He has ruled Singapore with an iron-hand for

the last 25 years. He begins each day by running 4 kms. And he keeps his 40 lakh

countrymen running for survival. Because, like Japan, Singapore has no natural

resources and therefore it must import all raw materials, process them and export

finished products.

What Singapore adds to the imported raw-materials is its own labour - the labour of 40

lakh citizens. And if this labour becomes expensive, Singapore is doomed !

So Lee has ordered one-year wage-freeze.

Fighting for survival is never sweet - it is always bitter.

And what works for a country also works for a company.

If we don't implement a few tough decisions right away, we too may not be far from a

wage-freeze !

What are these decisions ?

- Stop all overtime, everywhere.

Do you know how much we spend on overtime every year ?

in Powai - Rs. 48 lakhs

in Canteen - RS. 27. lakhs

Rs. 75 lakhs

To this if we add the overtime wages of

- Madh/Tengl/Ewac/City Offices,

I am sure the figure could add-up to Rs. 85 lakhs/year.

Let us get rid of this evil completely in 1986-87.

All that we have to do is to make sure that we do not waste those 20-30 minutes during

change of shift! - and we save Rs. 85 lakhs per year !!

As simple as that ! Unless some employees want to make it tough !

H.C. PAREKH

P:S:

In view of the Economy Drive, I am not sending individual copies. If you get a


HIROSHIMA (We Remember)

August 6, 1986

W-44

To:

Dear Friends

At 10 minutes after 10 o'clock in the morning on this day, fortytwo

years ago, an atom-bomb fell on Hiroshima.

1,25,000 persons died immediately. They were lucky. Thousands of others

who survived suffered horrible diseases for many years. Those who are still living today,

will pray for world-peace, at the Hiroshima Memorial.

An atomic explosion is very powerful. It has the capacity to destroy a whole city in few

seconds. And today's atom-bombs are 1000 times more powerful than the bomb which

fell on Hiroshima !

But the power of atom can also be used for peaceful and productive purposes - such

as for generating electricity in a power station. How does an atom-bomb (or a peaceful

atomic explosion) work ?

In simple language, one atom is hit by another and breaks-up into smaller pieces -

say 10 pieces. Now these 10 pieces fly-out and hit 10 other atoms and break each of

them into 10 pieces. So we get 100 (10 X 10) pieces. These 100 pieces hit

another 100- atoms, and break them up into 100

X 100 = 10,000 pieces. This goes on and on. It is called a chain-reaction - •' like a

chain-smoker who lights his next cigarette with the first cigarette ', He needs only one

match-stick - at the beginning of the day.

Right now, at Powai, we too are about to see (and feel) a very powerful chainreaction.

In response to my call for ideas on Economy-Drive, suggestions are

exploding all around me !

So far I have received suggestions from :

NAME

1. M R MADNANI PTL

2. Y R BOGHANI PSW - 2125

3. A J HARDE PSW - SWS

4. V D KAMBLE PSW - 2324

5. S S MANJESHWAR PSW -2174

6. M FARGOSE. PSW - 2324

7. A J OZA PSW - SDP

8. K S GHEGADMAL PSW - 2326

DEPT.

9. S A MANNAN PSW - 2308

10. C D'SOUZA PEW - 3222

11. R K SRIVASTAVA PEW - PUR

12. A JOSHI PDE - CM

13. J DOKE SHIPPING

14. C BARRETTO PMC

15. J D DHEKLE PMA

I have personally acknowledged each sender and I am already talking to all the concerned

people whether these suggestions can save us money (and how much) and

what problems we may face (if any) in implementation. There are so many that it is not

possible to reproduce them here. In course of time, I may publish some which are

of common-interest to the whole of Powai .

In the meantime, I am excitedly looking forward to feel the vibrations of thousands

of peaceful explosions all around me.

Long live Peace - Long live Hiroshima.

H.C. PAREKH

P:S: In view of the Economy Drive, I am not sending individual copies. If you get a


IDEAS OR RUMOURS?

August 10, 1986

W-45

To:

Dear Friends

Ideas ............. Yes

Rumours ............. No

A few days back a worker met me and said,

"Sir, is it true .that company is going to stop the long-service award as part of

the economy-drive? We are hearing all kinds of rumours".

I asked him,

"What other rumours have you been hearing?

"Sir there all all kinds of rumours - such as,

- Company is going to stop the sports-club, cancel annual social gathering, stop the picnic

assistance, reduce worker-education classes and so many things like that".

For a few seconds, I tried to read his mind. I wondered,

- Has this worker really heard these things from someone else?

- These 'are his own "Ideas" and he is trying to only find out what are my

views on these subjects?

There was only one way to find out - by asking him.

"Are these your ideas or have you really heard these from

somebody?"

"Sir, I swear in my mother's name, I heard these from Mr. XYZ.

I slowly walked away wondering whether these were the ideas of Mr. XYZ or whether he

too had heard these from Mr.ABC! "

If people have ideas on economy-drive, why don't they come and tell me or send me a

note? - as 23 employees have already done? - even if it means saying "farewell to welfare!"

First thing I will do is to immediately acknowledge that I have received your thoughts.

Then I will try to calculate the money it will save - which is very difficult to estimate in

some cases. But in any case, I will discuss the idea with several people

individually and in groups. And if we decide to implement your idea, will you want me to

tell everyone that it was your idea ?

Or do you prefer to remain anonymous and do not wish people to know that it was your

idea because it is likely to be an "unpopular" idea and because some employees may

even dislike you for suggesting that?

And is that why you start a rumour - by telling someone else - hoping that somehow it will

finally reach me and may even get implemented - without anyone knowing that it was

your idea?

If you do not want people to know that such-and-such was your idea, we will keep your

name a secret. But why start a rumour?

One thing is clear. And if it is not clear to some, let me make it clear.

Economy drive will require making sacrifices - all kinds of sacrificies.

And obviously people affected by such actions may not like it. It is natural to feel that

way.

But whereas I can appreciate that some people will feel unhappy at the withdrawal of

facilities and benefits, I don't think anyone of us will appreciate that the company's

profitability should continue to remain at its present low level !

This is not the time to feel disgruntled. This is not the time to behave like cowards.

This is not the time for mischief (even innocent).

This is time for Sacrifices.

This is time for Hard-work.

This is time for ideas - brave ideas.

H.C. PAREKH



NOT ALONE

August 20, 1986

W-46

To:

Dear Friends

We are not alone.

When it comes to cutting costs and raising productivity, we have got company.

And who are they ?

It is an interesting list comprising

125 mills of National Textile Corporation (NTC)

Hindustran Machine Tools (HMT)

Heavy Engineering Corporation (HEC)

Bharat Heavy Electricals Ltd. (BHEL)

Bharat Heavy Plates & Vessels (BHPV)

Burn Standard Company (BSC)

And what are they trying (especially things which we have not tried yet !) ?

Central Govt. has told General Managers of 125 textile mills that after April 1987,

Government will not reimburse their cash losses.

And what are NTC's problems ?

1. Low Productivity

2. Low Output

3. High wages (34% - 207% of output value)

4. Excess Manpower (20% - 25% of workforce)

5. Lack of discipline

How do they propose to solve these problems?

Economy Drive

Cut non-productive expenditure

Recruitment freeze

No promotion

No revision of wages

No replacement against retirement (550 in last 2 years)

Greater delegation of authority to GMs

Introduce new blended fabrics Introduce staple and blended yarn

Suspended 3 senior executives and a General Manager !

If all of this sounds drastic, just remember that during the last 3 years, these mills have

incurred losses totaling Rs. 717 crores !

That is yours (and mine) tax-money !

As far as the steps proposed to be taken by the others is concerened, we are told that :-

HMT will .

raise export percentage from 12.4% to 20% (including tractors & watches)

modify existing products

introduce new products

do more project-consultancy etc.

save 2.5% of turnover (sales) during 86-87 & 87-88 (we are ourselves aiming at

about 1.5% in 86-87).

HEC will reduce costs by Rs. 10 crores in the current year through

saving energy (power)

reducing inventory from 7.3 months' stock to 5.2 months' stock

reduce wastage

upgrade technology

stop fresh recruitment

reduce surplus workforce

BHPV will try to

save Rs. 50 lakhs every year by installing word- processors & microcomputers

increase capacity utilisation from 66% to 75%

reduce working capital need

improve material handling

The newspaper does not tell us about the plans of BHEL -whereas

SC lists the following problems (but no solutions .')

Lack of professional managers

inadequate funds for modernisation

high age of shop-floor management and of all things,

Low pay-scales ! (I wish we had that problem !)

But whereas problems cannot be borrowed (these are our own creation), solutions can

be borrowed. I would like to hear from you which of these solutions we should

try in our company.

H.C. PAREKH



POINT OF NO-RETURN ?

August 24, 1986

W-47

To:

Dear Friends

Is the American Steel Industry about to disappear from the scene ? perhaps not -

atleast not in the near future. But it could very well happen within 15 years - before

the arrival of the 21st century ! May be it is in the final act of a 3-act drama.

One company - LTV - has already applied for "bankruptcy protection". This means,

the banks cannot recover its loans and the company can retrench all employees - without

paying any compensation I

But the company about which I want to talk to you today is a company called USX - the

largest steel-maker in America -which will soon become the smallest - or may not even

make any steel before long I

THE USX STORY (SOURCE: BUSINESS WEEK: 18.8.86)

At one time, USX was known as "U.S. Steel" - the largest steel manufacturer in the

world. Chairman is David Roderick. The company had a steel-making capacity of 379 lakh

tons of steel.

From 1978, USX started reducing its capacity, In the last 8 years it reduced it to 262

lakh tons. It closed down 20 factories and retrenched 27,000 workers.

During the next 4 years (1986-1990), USX is planning to close down another 4 factories,

retrench another 7,444 employees and bring down capacity to 165 lakh tons of steel.

So USX will be bringing down

capacity by 57%

employee strength by 38%

But what is the reason behind all this chopping and chipping ?

If you want a one-word answer, it is "COMPETITION".

If you want a two-word answer, it is "COMPETITION & HIGH LABOUR-COSTS".

To give you a better idea -

In the steel industry, world-wide, surplus capacity is 2000 lakh tons of steel.

This means fierce competition. American steel makers are finding it difficult to sell steel at

$ 400 per ton.

American labour-costs are 33% higher than the Japanese labour-costs and

700% higher than the South Korean labour-costs !

So what can USX do ?

USX has started sub-contracting in a big way and reduced its own labour-force.

This has helped it to boost productivity. Earlier USX spent 10.8 man-hours

to produce one ton of steel. Now it spends only 4 man-hours (its own man-hours)

to make one ton of steel.

But this has not .helped - not enough.

Chairman Roderick says only 2 things can help -

Wage and Benefit cut (he has submitted a formal demand to the Union on July

29th).

Company's right to assign jobs and fundamentally reorganise work

crews with no union interference.

He calls these his "last ditch attempts to restore profitability".

The Union has responded by going on strike from 1st August -their first strike since 1959.

The question is, "Did the management fail to make the employees - and the union - see

the dark clouds on the horizon before reaching the point of no-return ?" or

Like any good, Australian ostrich, the union - and the workmen - hid their face under

the sand to ignore the storm ?

As far as Powai-works of L&T is concerned, I do not wish to sound like a pessimist but

atleast, I do not wish to be accused of the single biggest managerial failure - the

failure to share the facts of life with the employees.

H.C. PAREKH



NO ESCAPE IN THE SKY !

August 29, 1986

W-48

To:

Dear Friends

If you have problems on earths can you run-away in the sky to escape? Perhaps.

you have problems in the sky, where can you run for an escape ?

But if

Sometime back, I wrote to you regarding the loss-making publicsector

(Govt) companies which are trying to cut costs. But because the Govt.

owns these companies ( and the public owns the Govt? ), they can never become

bankrupt !

They can go on making losses forever ! - as long as you and I keep paying taxes.

But a "private-sector" company (owned by share-holders) cannot afford to make a

loss. It cannot even afford a lower profit ! -whether it is L&T or Eastern Airlines of America.

What is happening to Eastern Airlines ?

- 12% drop in income despite 5% increase in capacity

- Fierce competition from other airlines

- Loss during Jan/Feb/March 1986 - Rs. 144 crores

- Loss during April/May/June 1986 - Rs. 57 crores

- Forced to cancel 5% of daily flights due to MAINTENANCE BACKLOG.

After reading this, any wonder that "Texas Air" (another airline company) purchased

Eastern Airline ?

Although taken over by "Texas Air", Eastern Airline is fighting a bitter battle of survival.

Chief Executive Joseph Leonard has issued following orders :

1. Freeze all expansion-plans

2. cut operating costs by Rs. 130 crores within one year

3. Senior managers to cut expenses

4. Cancel Miami - London flight

5. From Charlotte city, cut 41 flights (out of 53)

6. Sell-off many Boeing 727 airplanes

7. Lay-off (send home temporarily) surplus employees

8. Within 3 months, cut fuel-bill by Rs. 100 crores (already achieved)

9. For 4600 pilots, flight attendants and non-contract workers, cut pay and benefits by

20% (already done).

When International Association of Machinist - IAM (the Labour-Union), refused to agree

for a similar 20% cut in the wages of the 12,000 workers, the management had no choice

but to sell the company to "Texas Air" !

And this has forced Joseph Leonard to write to all employees,

"We may have to consider, however reluctantly, a period of consolidation or even

retrenchment ".

What Joseph is trying to tell his co-workers is that,

When a company is fighting for survival, there are no sides such as the Union and

the Management (and the supervisors and officers ! ). There is no escape from

the sky ! "

H.C. PAREKH

P.S. : In view of the Economy Drive, I am not sending individual copies, if you get

a chance to read this on the Notice Board, please tell others.

The Good Times / The Bad Times

September 5, 1986

W-49

To:

Dear Friends

Sometime back, I wrote to you regarding Prime Minister Bob Hawke of Australia

and President Lee of Singapore - how both are trying to improve the economy of their

respective countries and, in the process, taking some unpopular decisions - (most

effective medicines are bitter .! )

Going through my old newspaper cuttings, I came across some of these decisions which I

think, are equally relevant to our own country in 1986.

Singapore enjoyed an annual growth rate of more than 10% in 1970S and early

1980s - but registered an unprecedented 2% negative growth in 1985.

Opening the parliament on February 21, 1986, President Lee said,

"Last year's recession marked the end of an era of high growth and relatively easy

progress for Singapore. My government has taken some steps to reduce businesscosts

and restore competitiveness. I urge the—people—to—react—to this

adversity cohesively and decisively ".

Finance Minister Dr. Richar Hu announced,

"About 130,000 public servants in Singapore will not be paid this year's increase in the

National Wage Council Salary in view of the current economic hardship".

(Now compare this with the announcement of our Finance Minister Mr. V.P. Singh on 21st

August 1986, that class B, C & D govt. employees will get new pay-scales announced

by the 4th Pay-Commission from October 1986 I )

And how did the Labour Union of Singapore react ?

Example no. 1

"How can we ask for a salary-increase when we fully understand that the country's

economy is in bad shape ?

- Mr. S. Kandaswamy General Secretary

Amalgamated Union of Public Employees (AUPE)

Example no. 2

"About 10,000 employees at 44 firms in the industrial and business sectors have

agreed to accept yearly wage-rise of about 4% instead of usual 6.5% ".

Union Official

Singapore Manual & Mercantile Workers' Union

And an August 20th report .from the Australian city of Canberra says that Finance Minister

Paul Keating is cutting U.S. dollars 1.9 billion (Rs. 2337 crores) from Govt. spending on

Welfare

Health

Education

Defence and

Foreign Aid.

Keating says there will be ZERO real growth in government spending and Prime

Minister Bob Hawke (one time trade-union leader) adds,

"I am prepared to risk election-defeat to achieve a budget which is appropriate to our

economic decline. This is our greatest crisis since World-War-II ".

In size, Thailand is much bigger than Singapore but much smaller than Australia.

Thailand is sandwiched between the economic crisis of the two countries .'

So

A report from Thailand says,

" Labour unions in the automobile industry have agreed to a reduction in wages so as to

avoid the possible laying off of workers, according to a source in

the International Metal Workers Federation.

The unions, the source said, were very much concerned about the

worsening situation in the local automobile industry as it would affect the

employment of thousands of people working in this and other related industries. "He—

said—several companies—have—already—reduced—workers ' wages by about 20-25%

with the agreement from the unions so as to save workers' jobs ".

And in INDIA ?

According to an expert's estimate, the proposals contained in the 4th Pay Commission

Report will cost the Govt. Rs. 17,000 crores during 1986-1990 .!

This is only for the Central Govt. employees.

But suppose similar pay-scales are granted to

the State govt. employees ?

the public-sector employees ?

the private-sector employees ?

As per EMF report, as far as international competitiveness ,is concerned, India is second

- from the bottom '. Only Mexico is worse than us II But at this rate how long before

we replace Mexico ?

How long before the wind. of self-sacrifice from Australia, Thailand and Singapore

reaches the shores of India ?

H.C. PAREKH

P.S. : In view of the Economy Drive, I am not sending individual copies. If you

get a chance to read this on the Notice Board, please tell others.

AFRAID IN THE DARK

September 12, 1986

W-50

To:

Dear Friends

In the middle of the night, a Guru asked his Chela to go and get him some medicinal-herbs

from the jungle as he was having a high-fever. The Chela got up from his sleep,

went out of the hut but returned within a minute.

"What happened ?" - the Guru asked.

Chela said,

"I am afraid, it is very dark outside".

"But who are you afraid of ?" Guru asked, "Is there anyone out there ?".

"No, there is no one there - it is very lonely - that is why I am afraid".

The Guru was suprised !

"I agree it is very lonely outside. But that is no reason to feel afraid. How can you say

there is no one there ? YOU are there - unless you confess that

you are afraid of yourself ! "

I don't know whether the darkness in the Chela's mind disappeared with the "Light of

knowledge" of Guru's words.

But I know one or two things :

ONE

Many people from all over Powai have written to me regarding the need to switch-off

the tube-lights in the shops and the offices when employees go out for lunch or after the

working-hours.

TWO

Last week, I asked the Union-Committee members to get me some medicines. I was

telling the Union Committee :

1980-81 1984-85

Profitability (PBT/SALES) 14.0% 7.7%

Manpower cost

Stores-crediting

19.4% 26.0%

ELEMENT JAN '79 JAN '86 INCREASE

(Index)

a. C.P. I. 1447 2922 202

b. Maximum D.A. Rs. 1035 Rs. 2472 239

c. Minimum D.A Rs. 503 Rs. 1145 228

d. Monthly Wage Bill (DR)

(Powai + Madh)

Rs. 38.75

lakhs

Rs. 99.02

lakhs

256

e. Workmen strength (DR) 3937 nos 3790 nos -96

f. Average Wage (DR)

d - e

Rs. 984 Rs. 2613 265

9. Stores-crediting (S.V.)

(Powai + Madh)

Rs. 59.8 crores

(78 - 79)

Rs. 127.1

crores

(84 - 85)

213

While calculating monthly wage bill, I have not added

I was telling them,

- Bonus + Ex-gratia

- LTA

"In seven years, consumer price index has gone from 100 to 202, but average wages of

a worker has gone up from 100 to 265 I You are getting more than 100% neutralisation

for rise in cost-of-living I And if cost-of-living includes cost of food (whether eaten

at home or in canteen), it is only natural that you pay Rs. 2.37 for a standard

Vegetarian Thali (now sold for Rs. 0.65) - and a similar price-increase for all other food

items.

If we include Bonus, ex-gratia, LTA, etc. the average wage has perhaps gone-up THREE

TIMES in just seven years I In all fairness, canteen sellingprices

must be revised upwards. There was even an agreed formula in the 1973

Agreement. So, please go out, tell the employees and bring back the badly needed

medicine - the price increase ".

After a moment of silence, the Union Office-bearers said,

"Sir, sorry, but we cannot agree for a price-increase nor can we ask our members".

That is when I realised what the Guru was saying. Although I do not claim to

be anybody's Guru, it was obvious to me that the Union Officebearers

had identified themselves with the Chela !

The people we are afraid of most are our own people - our own selves, when the darkness

of ignorance surrounds us.

Will someone switch-on the tube-light please, before it is too late !

H.C. PAREKH

P:S: In view of the Economy Drive, I am not sending individual copies. If you get

a chance to read this on the Notice-Board, please tell others.

Catch Them Doing Something Right

September 23, 1986

W-51

To:

Dear Friends

A few days back, a shop-representative came and asked me,

"Sir, is it true that last night you came to Powai around 11.30 p.m. and caught

some employees playing cards during working-hours?"

The suddenness of the question did surprise me but I managed to reply,

"No, I did not suprise anyone last night - but since you asked, do people often play

cards during the second-shift?"

I was not prepared for what I heard next :

"It is not often in second-shift : it is often in the third-shift! If only managers paid

surprise-visits at night, they would know what is going on - and they would be able to

catch the culprits".

I have been thinking ever-since. How many employees come in third shift? May be

245 out of our 7332 employees. Then there are 305 working-nights in a year. Even if I

wanted to, how many nights can I make a surprise-visit to Powai? May be 10 in a

year? And how many dishonest (time-stealer) thieves will I manage to catch? May be 5 -

may be 10?

But on the other hand, is it not more likely that for every one dishonest employee doing

something wrong in the middle of the night, there are

perhaps 100 honest employees doing something right during the broad day-light of the

day-shift ?

So why not concentrate on "catching them doing something right"? - and telling the

rest of Powai about them ? This way, may be more and more employees will feel motivated

to do more and more right things I And very soon the wrong "acts" will disappear !

I got just such an opportunity recently when I received a note from Mr. C.S. Martin

of Switchgear Prototype Shop. Reproduced below is what Martin had to tell me :

"Dear

Mr. Parekh, 19.8.86

Sub: E C D

In response to your call for suggestions on the above subject, my feedback to you is

as follows :

1. We, the 25 from the prototype Shop (PSW 21-13) had our first meeting

on ECD On 18.7.86 wherein we discussed

the need for ECD based on circulars issued by the management,

and from the word go after a few probing questions by all regarding the genuineness

of ECD it was decided to give full co-operation.

2. Though our output is not easily quantifiable being a development department,

I can assure you that the extra efforts our boys are putting in will definitely result

in atleast 10 to 20% more output and better quality of prototype.

3. Suggestions regarding productivity improvement that came forth during the

discussions are as follows :-

Previously one TA was handling Tool Stores, Machine Maintenance, Planning of

material. Vendor follow-up, etc. and Stores activity was taking up most of

his time - hence it was decided that each Fitter will take the tools from

the open cupboard and keep it back after use. This has resulted in better

machine maintenance, planning, etc.

Work tables and Chargehand tables in the department were rearranged to bring in

maximum efficiency.

Everybody agreed to give full co-operation to each other in order to increase

productivity and quality of work in the department.

4. Lastly, as a feedback to you on ECD we felt that this should have been done long

back. i,e, E C D.

Personally speaking and in my own opinion I feel that cutting down on Overtime,

reducing varieties in the canteen, like serving only one type of soup, stopping of sweet

dish or even reducing varieties of vegetables is a good idea, but I still wonder whether it

was really necessary to stop Mutton dish which is the main dish for us non vegetarians are

we saving substantial amount on his item instead we should strive to increase

productivity at all levels. The pressure must be felt right from the everybody

top from JGM, DGM, Managers and others down the line who are responsible for

Production in one way or the other should come right down on the shop-floor and spend

a few minutes everyday and show their interest and concern for productivity and I am

very sure that with the co-operative atmosphere prevailing in Powai our Productivity

will far exceed our expectations.

The following personnel from Prototype Shop would like to see the film "Productivity -

We learn from the Japanese " any day after 15.45 hours but preferably on Friday.

With best regards,

C.S. Martin

Congratulations Martin - and congratulations to your 25 colleagues! - for allowing me

to catch you doing something right.

H.C. PAREKH

P:S: And for this reason, I have decided to ignore the following anonymous note

received on 22/8/86.

"H C P

Reguest you to personally make a surprise visit to Stage III - 1st floor Mezzanine Pantry

- PSW East, between 7.40 am to

8.10 am and see for yourself the number of union representatives collected inside

the room and having a merry time everyday. I am not disclosing my name for

obvious reasons. "

NOTE: In view of the Economy Drive, I am not sending individual copies.


If you

CONSERVATION OF ELECTRIC POWER

October 22, 1986

W-52

To:

Dear Friends

I have received a large number of suggestions on the above subject.

Keeping in view the long list of suggestions on the above issue, I felt it was better to

issue this explanatory note.

Out of the above suggestions, a majority are regarding general lighting in

offices/shops viz-a-viz :

(a) Switching off lights during lunch timings

(b) Removing a certain number of tubelights from the fittings.

(c)

Segregation of light circuits.

Before taking up this issue, I give below a table which shows the electric

consumption of various electrical appliances, including light fittings :

Description Wattage Consumption per

hour

Cost of

Energy (Rs. )

1. .2 ft. tubelight 29 W 0.029 Kwh 0.0348

2. 4 ft. tubelight 52 W 0.052 Kwh 0.0624

3. Window A.C. Unit 1250 W 1.250 Kwh 1.5000

4. 1 HP Motor 746 W 0.746 Kwh 0.8950

5. 250 W HPMV Lamp 295 W 0.295 Kwh 0.3540

6. 400 W HPMV Lamp 453 W 0.453 Kwh 0.5440

7. 1000 W HPMV Lamp 1098 W 1.098 Kwh 1.3180

8. 250 W HPMV Lamp 324 W 0.324 Kwh 0.3890

From the above table, it is quite clear that I No. of 4 ft.

tubelight consumes 0.052 Kwh power in one hour whereas consumption of

other high wattage lamps/workshop machines/ window A.C. units etc. is very high

in equivalent period of time considering cost of Kwh unit as Rs. 1.20.

As regards suggestions to switch off lights during lunch timings, tea breaks, etc.,

we would like to say that it is the moral duty of all of us to ensure

that lights/fans/window A.C. units etc. are switched off whenever not required - provided

this does not disturb others. This can be achieved only with the co-operation of one and

all. As regards other suggestions mentioned above, we would like to mention that the

lighting in the offices/shops is designed for general illumination level when the

electrification work was originally carried out. Subsequently, the layouts, the user,

the requirement might have changed and, hence, it may happen that lighting in some of

the areas may be higher than the minimum required level. It may vary from place to

place and from person to person depending upon the type of work that is being done by

different occupants.

In some of the office areas, the natural light that may be available may

be adequate for the user and the concerned users may jointly request

PEL Department to remove unwanted tubelights or starters so as to save electrical

consumption.

Since electrical saving in the office lighting areas is marginal, any alterations in the

switches, cables and relocation of fittings etc. will be much more costlier and, hence,

the same is not desirable. Nevertheless,it will be

worthwhile to remove starters and/or tubes from such fittings, for which PEL

Department may be contacted.

Suggestions are always welcome - for, their basic purpose is to check on wastage -

big or small - and achieve savings. However, it will be more beneficial for both -

the suggester and the organisation - if ways and means are suggested to check on major

wastage areas.

May I, therefore, request all the readers to come forward

with their valuable suggestions which can help the organisation in saving costly

energy wastage!

Regards,

H.C.Parekh



KEEPING SCORE

October 27, 1986

W-53

To:

Dear Friends

The season of cricket-tests have just begun and in the months to come, test-scores 'will

be discussed in Powai, from the start of a match till the end.

There will be excitement everywhere - all throughout the day. All of us will identify

ourselves with the Indian team and monitor their progress. We will feel happy, if they are

doing well and feel unhappy if they are losing the game.

All this is very natural - very human.

Then, how come we forget it when it comes to playing another game called "Economy

Drive"? In fact, in this game, we ourselves are the players .'

If our team has a target, a goal — then someone must keep score. But what good is

a 'score' which is kept secret ? Then no one is excited - no one is motivated - and no

one is cheering nobody I And players don't like to play if nobody is cheering them.

So today, I wish to cheer the PGM Group.

Under Economy Drive, it had set some target for SAVINGS during the 4 months of

June-September 1986. And here is the SCORE - CARD :

SAVING (RS. - lakhs)

TARGET

ACTUAL

1. Material Cost 3.60 2.13

2. Overtime 1.40 2.71

3. Power conservation 1.45 1.13

4. Travelling/Conveyance 0.47 1.90

5. Economising on Purchases - 0.14

6. Other Expenses 0.26 0.51

TOTAL 7.18 8.52

We also deferred purchase of electrical fittings worth

Rs. 0.87 lakhs.

There was also a saving of Rs. 0.96 lakhs due to reduction in usage of hiredcars

(contributed by all groups).

My CONGRATULATIONS to all those who worked for these savings !

In the meantime, we in PGM, have set for ourselves, a target of saving Rs. 56

lakhs during the current year. And with your co-operation we should be able to exceed

that.

I seek your co-operation in :

reducing all wastages in the consumption of :

water

electricity

stationery

canteen food, etc.

handling canteen crockeries with more care to reduce breakages

improving efficiency at all levels by working harder to reduce cost.

I am quite sure that other groups too have done well in their drive for economy. As far as

PGM group is concerned, I will let you know the score sometime in Jan 1987 - for the first

quarter of 1986-1987.

Mount Kailash - of our Profitability - is somewhere in the

Himalayas. Out of the 68 drivers who have entered the Himalayan Car Rally this

week, only 20/25 will complete it successfully after a tough ride of 2840 KM.

Will we reach the destination in our "drive" ?

H.C. PAREKH

P:S: In view of the Economy Drive, I am not sending individual copies. If you get

a chance to read this on the Notice-Board, please tell others.

WHY REMAIN ANONYMOUS?

November 10, 1986

W-54

To:

Dear Friends

Why do alcoholics wish to remain anonymous (unknown to others) ?

I suppose this is because

they know they have got a bad habit

they feel guilty about it

they wish to hide this fact from others

but perhaps the most important reason could be

they do not wish to be influenced by others (in getting rid of the habit ?)

From time-to-time, I keep getting anonymous letters. Some

are not worth printing but some do contain useful suggestions - and that is when I

wonder,

Those employees - who have such useful suggestions to make -why don't they mention

their names ? Why do they choose to remain anonymous ?

In fact some of these letters end as follows, "I am choosing to remain anonymous for

obvious reasons".

Dear Friends : If you are making a good suggestion, I do not understand your "obvious"

reason :

Unless the reason is that you, yourself know that your complaint is really not true

or that your suggestion is really not practical,

and therefore you do not wish to be influenced (?) by the reality/the truth I (which you

achieve by not giving your name )

Let us look at the following anonymous letter which I received a few weeks ago.

"HCP

This is to bring to your notice that whenever we go to the PAC Dept. for any clearance

i.e. Travel, Telephone Bill, Motor Car Mileage Claim etc., we do not get the clearance

immediately or even on the same day. We are asked to come the next day or

after two days. This is may be due to clearance clerk being heavily loaded.

But because of this we are losing lot of man-hours.

man-

We hereby request you to please look into this matter and save valuable

hours. This may contribute to the Economic Drive.

Thanks

Yours sincerely,

An employee "

I sent it to Mr. Deosthalee whose reply I reproduce below :

"We normally clear the papers on the same or next day depending on

the volume. Staff members need not come to PAC for collecting the papers. Papers

can be sent to them in mail and they can get payment from the nearest cashier, if

there are specific cases of delays we can sort them out personally. "

But if the sender reads this reply and is not satisfied with it, what will he do ? Send

another anonymous letter ?

And then what do I do? Send out another circular ?

How long can we keep playing this game ? In fact, we should

not be playing this game at all. Those who wish to influence others must give

their names and be willing to enter into a face-to-face dialogue. Others too, must get an

opportunity to influence them I Otherwise the game is unfair - and that is why I

normally do not reply anonymous letters.

If we are honest in our intentions, we need not fear.

If our "beliefs" are based on concrete facts, we need not fear. If we are willing to trust

our co-employees, we need not fear.

H.C. PAREKH

P.S. In view of the Economy Drive, I am not sending individual copies. If you get a

chance to read this on the notice board, please tell others.

THE LOYAL WAY TO MODERNISATION

November 16, 1986

W-55

To:

Dear Friends

This write-up appeared in the Financial Express a few weeks ago (26-9-86).

While we are all busy celebrating November 1986 as

"QUALITY MAINTENANCE & IMPROVEMENT MONTH" ,

I am wondering what the employees of 80-year old Loyal Textile Mill must be doing :

May be nothing special !

From the following write-up, it seems to me that Quality & Productivity have become a

part and parcel of their. lives -so they do not need a reminder ; None of us would be

around when L&T is 80 years old. The question that we need to ask ourselves is :

"Can we do something today to make 'Quality & Productivity' a part of our Work-life so

that L&T-ites of the year 2023 A.D. do not need a reminder ?"

H.C. PAREKH

SUN RISES IN THE WEST ! PART-I

November 17, 1986

W-56

To:

Dear Friends

As children, we learned in Geography that the sun rises in

the East. It first rises in Japan, then in India, thereafter in Europe and finally

in America.

Europeans are waking-up when we are almost ready for lunch ! They are behind us by 4-

5 hours. We are ahead of them.

But not when it comes to creating jobs.

When it comes to creating new jobs, the sun rises in the West!

I did not believe myself until I read an article

"Europe starts to create Jobs" - (Fortune - July 7, 1986).

It is a good article, but it is difficult to understand.

So I decided to 'rewrite it in simple words which you can understand.

With lots of figures, the article tries to prove the following points:

POINT NO. 1

Using their collective-bargaining power. Unions manage to get big wage-increases for

workers, year-after-year. They also manage to get narrow, rigid jobclassification

("This-is-not-my-job" type of work-rules).

POINT NO. 2

Companies' costs keep rising (due to ever-increasing employee-cost). So

their product-cost rise, forcing them to raise selling-prices. In the

meantime, productivity keeps at same level - or even drops - due to rigid jobclassification.

This pushes-up product-cost still higher.

In the meantime, competitors are doing something smart (we will talk about this soon),

to push-up their productivity -and keep their costs down. A high-cost company starts

losing orders. Sales and production goes down but costs remain high.

And if you think this is true of Europe but not in India, I

quote from Shri Rajiv Gandhi's inaugural address at the National

Conference on 'Productivity in New Delhi on October 29, 1986.

"I was told by an industrialist from Bombay the other day that the lowest

paid unskilled employee in his industry gets Rs. 2300/- a month. The demand is to

double the salary and reduce the working days by 100 days a year so that 25% more

people can be employed. The result is that he is going to shut down his factory

in Bombay and move out into a district where such demands don't come about".

The unions must be more responsible, they must work for the rights of the workers

but the rights of the workers must be linked with the increased productivity and

efficiency of the worker".

POINT NO. 3.

Company's profitability (profits as a percentage of sale) goes down - (as in our

own case. Do you recollect my circular on Economy (Co-operation) Drive - ECD - 3 of

July 28, 1986, showing L&T's falling profitability and rising wage bill ?). Sometimes

even profit amount goes down.

POINT NO. 4.

Companies start one or all of the following actions :

(a) Stop further recruitment (as in our case).

(b) Lay-off or retrench employees (if law permits).

(c) Encourage employees for early retirement (voluntary).

(d) Stop or reduce sub-contracting (to keep own employees busy, produce components

at a much higher cost as compared to buying from outside. Although this is alright for

a short time, if this is continued for long, it further pushes-up the product-cost!).

(e) Start an Economy-Drive (as in our case).

(f) Invest, whatever little profits are there, in more

and more automatic machinery which can work with less number of operators.

(g) Start new factories in remote locations where labour-costs are low.

(h) And if nothing works, close down or sell off the factory (if law permits).

(i) And finally - in a country like ours - if law does not

permit you to close down the factory, let the government take it over and run it

for ever (using tax payers' money) at a loss !

(Some of these points are mine - not mentioned in FORTUNE article).

POINT NO. 5.

With factories stopping recruitment or retrenching or

closing down. Union's influence reduces. Less and less employees want to become

members of Unions. Realising that economy is slowing down and unemployment is rising,

the Government and the unions get worried.

So Government passes laws which makes it easier for companies to "hire-and-fire" -

hire workers when business is good and fire (lay off or retrench) when business is bad.

Adjust employee-strength according to business-condition.

Unions also become more reasonable and agree to remove rigid jobclassification

and introduce flexible and liberal work-rules.

POINT NO. 6.

Wage-increases granted are less than the inflation-rate (i.e. the rate at which

prices are rising in the market). Wage-increase does not 100% neutralise the rising

prices. This means decrease in the purchasing power of the workers.

POINT NO. 7

Decrease in labour-cost, brings down product-cost. Companies can keep the

selling-prices constant for longer periods.

If at the same time, labour-productivity also goes up, a company can afford

to actually reduce its selling prices .' This can bring more orders.

POINT NO. 8

If a company (or a country) can manage for 5/7 years,

(a) to keep wage-increase below the inflation-rate

(b) to improve productivity by 5% each year, then there can be so many orders

that it can afford to,

( i) expand existing factories;

( ii) put-up new factories;

(iii) increase employment;

(iv) share its prosperity with employees.

Now if all of above-stated points sound so much like fairy-tale, please do

challenge me to prove it with facts and figures! Even if you don't, I will share

with you some harsh facts of today's industrial life in the second part of this circular next

week.

H.C. PAREKH

I DO

November 24, 1986

W-57

To:

Dear Friends

On the 8th of this month, the Bombay Chamber of commerce &

Industry had organised a Workshop. As Chairman of the Industrial Relations Sub-

Committee of the Chamber, I was responsible for giving the Workshop,

a very intimidating title

Industrial Relations

The Brighter Side"

Success stories in Productivity

thru' employee participation.

Three companies presented their "stories".

1. L&T - presented by Mr. Nakhate and myself

2. B.A.S.F. presented by Mr.D'Cunha (Gen.Secy.of their Union) &

Mr. Shirali (Manager).

3. Philips presented by Mr. Guha - Manager - Corp. Industrial Relations

L&T story (almost entirely Powai Story) was presented with the help of about 50

slides. In case you wish to hear this story from me(since it is unlikely that you will read it

in a newspaper!), do let me know. If I receive 15/20 requests, I would be happy

to organise a presentation.

But what I want to tell you is about the question-answer session. There were many

questions regarding "productivity clauses" and "productivitylinked"agreements.

Almost everyone present seemed to believe that incorporating such

"clauses" and "formula" in the agreements (with the Unions) was a must. There was

no other way of getting improvement in productivity. For each worker (or a class of

workers) the agreement must stipulate

What he will do

When he will do

How he will do

Apparently the participants felt that the worker behaviour must be defined as accurately

as possible, In return for wages, the agreement should provide what the workers shall

do. The contract should enable the supervisors to remind the worker what precisely is

expected of him.

I could not disagree more, so I said,

At a Christian marriage, the girl is asked, "Do you take this man as your husband?"

and the girl says 'I do'. Then the man is asked "Do you take this woman as your

wife?" and the man says 'I do'. At that the priest says "I pronounce you Man and Wife".

That is all !

No need to affix your signatures (in the presence of

witnesses) to long, legally worded statement on a stamp-paper which reads -

WHEREBY

the party of the first part (that is the wife) shall

WHEREBY

the party of the second part (that is the

husband) shall

maintain the house in good condition by

undertaking operations such as cleaning

arranging things, etc. if required by

doing such lower category jobs (in the

absence of the maid-servant) as dusting,

mopping, washing (with or without

soap)etc.

arrange for such income (earned

or unearned) as deemed

necessary and sufficient by the

members of the family from time

to time.

look-after the family by purchasing or

arranging to be purchased all items of

household requirements, such as

vegetables, provisions, cereals, textbooks

for the children, mops/ dusters for

the operations described in the

preceding paragraphs, etc. etc.

manage admission in

the Govt Engg. College for a son

who got 65% marks in the

12th std.at second attempt.

in the temporary absence of the husband

act (without demanding an acting

allowance) in such higher category jobs

as may be deemed necessary by the

children, such as

handling cash

doing children's homework

paying electricity bills -

filling-in "share application forms"

act as one-man grievancecommision

and give a patient

hearing (with or without listening)

to the grievances (real or

imaginary) of the members of the

family (not excluding the parttime

maid-servant) and appear to

be sympathising with the

complainant not-withstanding the

logic of the issue involved.

entertain guests(with or without a smiling

face)

nurse husband's aged parents (with or

without words of appreciation).

represent the family at all the

social get-togethers which no

other member of the family is

willing to attend.

Do any of the considered part Job

responsibility by any other member of

the family whether explicitly expressed or

otherwise.

to signify concurrence with the

white-lies being dished-out by the

wife to all and sundry regarding

the alleged artistic

accomplishment of child-prodigy

daughter, not-with-stand-ing the

fact that her only accomplishment

is to sign the canvas painted by

her art-teacher for a measly

Rs.500/- p.m.

None of these:

All that the priest says,

"I pronounce you Man and Wife".

All that is needed to make the relationship work, - 24 hours a day, 365 days of the year,

for may be 30, 40 or 50 years! No Contract, nothing in writing in an everchanging

relationship. Only one simple implied understanding.

"Together we shall grow and be happy - and for that, the individual members 'will make

all the sacrifices necessary to keep the family together.

But then I read an article by Mr. Ramaswamy

"What Managements Bargain for?" (Business India - November 3 - 16, 1986).

Ramaswamy writes,

"Aggressive bargaining - particulary by the multinationals -has helped

many managements to push back labour's demands and extract impressive gains from

their Unions".

I am not so sure!

May be we are not yet ready to abolish job-classifications (our own 1984 agreement has

82 pages of it !) but it is time NOW for the employees of Powai ( and their leaders) to do

some serious soul-searching and ask of themselves,

Of all the things, do I need a "book" to tell me what is my job?

No matter how honest and dignified, shall I refuse a task simply because it

is not described against my "trade" in the yellow-book?

Through such refusals shall I force the Management to write-dwon 500 pages of

Job-classification?

Through such refusals shall I make the company "sick" and still myself remain healthy?

Today, have I earned every minute of my salary/wages? or that I have

been a thief, stealing time which belongs to the Company for

doing any productive work?

And it is time NOW for the supervisors of the employees to ask of themselves,

Where have I failed in my leadership qualities to motivate my sub-ordinates to

do any work given to them without bothering to look at the yellow-book?

How come I don't need a yellow-book at home to get my wife and children to do

things- which they are doing naturally?

Do I presonally go out and help when my subordinates need it? - even if it means

dirtying my hands and clothes?

Do I genuinely believe in "Dignity-of-Labour" or is it meant only for my

subordinates?

I am told we have, in our country, nearly 50 labour-laws -perhaps highest anywhere in

the world. But when it comes to the Industrial Relation health of our country, it seems the

"Law of inverse Proportions", operates!

No wonder we have turned our country into a paradise for the vested interests of

Labour Legislators

Labour Lawyers

Labour Leaders

Labour Managers

H.C. PAREKH

SUN RISES IN THE WEST (PART II )

November 28, 1986

W-58

To

Dear Friends

In Part I of this circular, I had mentioned that the European unions used their

muscle-power (of collective bargaining - or blackmailing?) to obtain annual wage

increases which were higher than the inflation rate. This means there was more than

100% neutralization.

Which means, in real terms, the purchasing power of Pound or DeutcheMark or Franc or

Lira (like our "rupee" these are European currencies) actually went up as far as

the workers were concerned.

This Fact (No.1) can be easily seen from the following graph:

Since L&T is an enlightened company, it has been "copying" Europe sincerely in this

matter! If you are not already aware, take a look at the following graph:

In fact this is one item in which we are ahead of Europe & America:

And this is not all : What about the INDIRECT labour cost? - Such as

Provident Fund

Gratuity

Welfare -(Transport/Medical/Canteen, etc.)

Leave ? ?

In this case let us compare ourselves with the British I After-all they ruled over India for

150 years and made sure that we got some of their worst habits!

And all this time Unions kept pressing the managements for higher and higher wages -

especially in the "unskilled" category; These "school-kids" were twisting the tail of the

Unions:

And to see "how", look at the following graph:

To understand let us take the example of L&T.

1975 1985

1.

2.

Highly-Skilled Wages Unskilled

Wages

Rs. 690.00 Rs. 296.00 Rs. 2,307.00 Rs.

1,407.00

1/2 Ratio HS/Us 2.33 1.64

This means US Wages rose at a much faster rate, but the wages of HS

category rose comparatively slower. So the "gap" reduced. Will this

gap someday disappear altogether?

Anyway what happened ?

The "US" workers priced themselves out of the market .' No

one wanted them and more and more became "unemployed (Job-less)", In my

next circular I will show to you, how the employment situation got worse, due to

rapidly rising wages.

H.C. PAREKH

SUN RISES IN THE WEST —(PART IV)

December 15, 1986

W-60

To:

Dear Friends

To improve employment

situation, the French Government finally did something!

In January 1986, it passed a law,

which gave companies right to introduce flexible working hours, if they would

reduce average work-week from 39 hours to 38 hours!

So in one stroke, French Government expects to achieve TWO results,

RESULT NO. 6

Increase employment opportunity by decreasing working hours.

RESULT No. 7

Increase productivity

of labour-force by giving managements flexibility.

French Company MERLIN-GERIN did not lose time.

It rescheduled work-time.

It introduced round-the-clock, six-days-a-week, working in factory.

1984 —> 62 Hours/Week.

1986 —> 102 Hours/week

French Government also found out something else!

Hundreds 'of Companies were applying for "laying-off" workers - because they had

no work to give to their workers.

But In 13% of the cases, the labour-inspector was refusing permission (in

Bombay,' what is this percentage? Will the Labour Commissioner, please enlighten!).

So, The Government passed a new law and removed the power of the labour-inspector to

refuse lay-off!

The Germans were red in the face! The French had taken the lead !!

Not to be out-foxed, the German Government sprang a surprise. It passed a new law,

Which allows .companies to hire workers on "Contract"

of upto 18 months. When contract ends, companies can lay-off the workers !!

How did the GERMAN Industry react?

Here are two examples:

( a ) West German Metal Industry reduced work-week from an average of 40

hours/week to 38.5 hours/week without reducing pay!

( b ) German car-manufacturer VOLKSWAGEN,

In 1982/83, froze recruitment for 18 months

In 1984/85, hired 19000 workers.

In 1986, plans to add 10000 workers.

RESULT NO. 8

19 European (OECD) countries are expected to create 800,000 jobs in 19861 -

best performance since 1979.

Question ;

How did this reversal become possible?

Answer :

Through a realisation on the part of the workmen - and the Unions - that if JOBS are to

be saved, two things must happen :

( I ) Restrictive Work-Rules/Practices must go

Example

Amalgamated Union of Engineering Workers (AUEW) has 10 lakh members in Britain.

For creating a mere 500 jobs, it recently agreed to NISSAN MOTOR CO. (of Japan) - who

wants to start a factory in Britain - to wipe-out restrictive work-rules.

This is the same Union, which prevented closing of BRITISH LEYLAND -

a car company - and saved thousands of- jobs, by co-operating with the

Management

and removing restrictive work-rules (rigid job-classifications).

And before I go on to tell you what is the SECOND thing that must happen in order to

create jobs, I would like you to take a look at some of the restrictive work-practices

existing in our own POWAI FACTORY right now !!

1. Getting ready to leave as early as an hour before actual closing time.

2. Breaking for lunch earlier than the scheduled time and leaving the place of work for

canteen earlier.

3. Collecting of funds for different purposes during working hours.

4. Spending time for planning and purchase of material for pujas, felicitations, etc.

5. Punching cards before changing into uniforms.

6. Tendency to waste time at the start and end of the shift and also before and after

tea/lunch recess.

7. Extended tea breaks.

8. Visiting dispensaries for very minor non-industrial ailments which can be treated during

non-working hours.

9. Employees gathering in groups and chit-chatting for long durations.

10. "This is not my job" attitude.

Those of you who think the list is incomplete, please do write to me!

H. C. PAREKH

P.S. In view of the economy drive I am not sending individual copies. If you get a

chance to read this on the Notice Board, do tell others.

SUN RISES IN THE WEST —(PART V)

December 27, 1986

W-61

To:

Dear Friends

While I an) waiting for the list of our restrictive work-practices to grow, I

promised to tell you what is the SECOND THING that must happen for creating jobs.

And that happens to be "Wage-increases" will have to be less than the inflation-rate.

Example

In France, FORD MOTOR CO. was giving wage-increases as high as 10% during 1980-84.

Last 2 years, it is giving no more than 4%!

Example

Current average inflation-rate in Europe is 6%.

Expected rise in manufacturing pay in 1986 is 5.75%.

All wages are now increasing roughly in line with prices!

Example

According to Mr. Larry Mishel, an American Researcher, there had been

an average 13% decline in wages since 1973 when adjusted for inflation.

RESULT NO. 9

Adjusted for inflation, wage-cost of manufacturing a single unit

of product declined by 0.3% from 1982 to 1985 !! - bringing back ability

to compete with the world.

Writing in Economic Times of December 4, 1986, ("America Worries

Over lost Competitiveness"), Jayshree Sengupta gives us following information:

IN 1985 JAPAN AMERICA

1. Average Annual Work-Hours 2100 1800

2. Paid Annual Vacation (Days) 14.6 19.6

3. Vacation Enjoyed (Days) 8.2 19.6

4. Increase in Hourly Factory Output 5.6% 2.2%

But coming back to the question,

"Why is America succeeding in creating jobs ?"

Let us look at the following chart from Business Week (Sept.22, 1986)/

Compensation pains for all Private Industry Workers

From the chart shown above, can we conclude that,

Lower Wages —> Lower Product cost —> More Demand

More jobs <— Factory Expansion <—

And while we are on the subject of wages, let us see what is happening 18000 Kms. away

from America In POWAI !

Annual Average Wage * Bill per DR Employee (Powai + Madh)

Percentage Increase Over Previous Year *Basic +D.A. + Payroll Related Allowances

I know that some of you will immediately jump to the conclusion and say,

"That is why we are losing jobs in Powai. Look at the following chart"

DR - Employee Strength at Powai

Let me assure you that there are other reasons as well, the most important being

that no industry is allowed to expand within the Greater Bombay.

But of-course, fast-rising wages continue to be the main concern - not only for L&T

but for almost all the leading engineering companies of Bombay, as you can see

from the following chart :

Total Emoluments - 1985 (Over 1983 = 100)

And if you want to know what is happening to the profitability of these

companies, keep looking at the Notice Board for my next circular.

H. C. PAREKH

FREEDOM AT MIDNIGHT

January 1, 1987

W-62

To:

Dear Friends

This is the title of a famous book written by Mr. Lapierre.

It tells the history of our country's freedom-struggle and the role played by such eminent

persons like Mahatma Gandhi, Jawaharlal Nehru, Sardar Patel, etc. etc.

It tells how the sacrifices (of even life) made by thousands of Indian Patriots finally led

to our country becoming an independent nation on the midnight of August 14, 1947.

This was nearly 40 years ago - and a large number of our Powai-employees were not

even born by that time.

So I can understand that they neither know nor appreciate why thousands sacrificed their

lives for this freedom.!

But is that the reason, why some of them have taken to a different kind of FREEDON AT

MIDNIGHT ?

A few days back, a couple of foremen made a "surprise-visit" of a department at night.

And what did they find ?

7 workmen' were playing cards.

2 workmen were sitting in the cloa -room

1 worker was sleeping in the cloak-room.

All during working-hours !

But there were also 10 other self-disciplined workmen who were continuing to work at

their work-place ! - In the same department .!

And then there were 500 other workmen all over Powai in that second-shift who

were also working - and trying to earn their bread honestly.'

Apparently the 7+2+1

workmen had found a new, young-generation meaning of

"Freedon at Midnight" !

I am not going to reveal the names of these workmen or the name of their department,

but your friends will tell you when you are eating in the canteen or travelling in the bus.

By now, some of you must be itching to ask me,

"What was the department-supervisor doing all this time ?"

But some or you will never ask me this question !

Because you were asking me a different question when I met you at the last

Worker Education Class, or at the Lonavala Shibir on Dec. 20, 1986. You were

asking me,

"Sir, why do we need so many shop-supervisors ? Our worker-strength is coming

down but shop-supervisor strength is going up. Are they making any contribution to

production?"

Although I knew the answer, I told you to raise this question with your Managers.

But now you know the answer !

We don't need them .full-time for production.

But we do need them for policing !

That night, the shop-supervisor had left the shop on some urgent work - so

in fact, there was no one to do the policing.

So what happens ?

Promptly, 10 out of 20 workmen stop working !

No wonder, during the 3 year period (April 81 - April 84),

whereas worker-strength went up by only 23 persons (3676 ——> 3699)

the shop-supervisor strength went up by 43 persons ! (291 —> 334)

which means,

In 1981, we needed one supervisor to supervise 12.60 workers

In 1984, we needed one supervisor to supervise 11.07 workers.

If only employees would keep working for the eighthours

whether anybody is watching or not, we could manage with half the number of

Shop-Supervisor—!!

And if 160 supervisors could be spared from the shops, they could do much

more productive work like,

Planning production

Getting materials/components

Designing tools

Making process-sheets

Conducting method-studies

Selecting machineries

Laying-down assembly-lines, etc.

Let me tell you one thing in case you don't know.

No shop-supervisor likes (let alone enjoy !) to waste his time looking for missing-fromthe-workplace

workmen in the toilets and cloak-rooms !

If anything, they hate such work ! It is an unpleasant work. But if it is forced onto

them, the will do it.

The purpose of this letter is not to find fault with certain individuals. For that,

management has the normal methods of show-cause, charge-sheet, domestic-inquiry,

punishment, etc.

The purpose is to find fault with our behavior and our attitudes. Will

we behave properly only when someone is watching us from behind or, from above ?

If that helps, I would like to remind all my colleagues -whether working in shops

or offices, whether in first shift, second shift or third shift, that if they are to lookaround,

they will find nearby somewhere, a picture of the God, watching them from

above !

And if you will listen carefully (even without closing your eyes ! ) you will hear Him say

"Work is Worship and I am Watching YOU all the time !"

H.C. PAREKH

DOWN & OUT ?

January 8, 1987

W-63

To:

Dear Friends

In a boxing match when you get

(Umpire) counts,

knocked down by your opponent, the Referee

" One, Two,. Three, Four .......... "

If you cannot manage to get-up your legs by the time he counts "TEN", you are out.

So you are down and out !

You have lost the game. You are the LOSER !

But boxing is, after all a Sport.

It is very different in real life.

You can fight another game tomorrow - and try to WIN.

When you are being attacked by

Competition from outside

Rising-costs from inside,

there may not be another chance ! There may not be another game !

If in a business, you are down and out, you may have to quit the game forever !

You may have to retire permanently !

You may be wondering, why all this sermon on a Thursday morning - especially

when X-Mas has come and gone !

Simple enough.

Along with thousands of you, I read in the newspapers yesterday, our company's

results for the year 85-86.

I felt like on the floor of the boxing-ring and the umpire counting

Fourteen-point-zero

Ten-point-four

Eight-point-zero

Eight-point-one

Seven-point-seven

Six-point-seven

Ominous sounds.

In case your tube-light is still flickering, look at the following chart :

Is the Sun of Competition melting-away Mount Kailash ?

Or is the River of Rising Costs eroding the mountain ?

Two years ago, when our 83-84 profitability went up by O.I (zero-pointone)

percent (from 8.0 to 8.1), I sent you a circular saying

" A Bulbul does not a Basant make " (February 7, 1985)

It was too early to rejoice. True enough, the happiness was short-lived.

Our profitability once again went

down ( to 7.7% ) in 84-85

down ( to 6.7% ) in 85-86

Can anything be WORSE than this ?

Yes - slowing down of Productivity-Growth can be worse .!

Because, whereas we may not have much control over the company's

overall profitability due to many external factors

which are beyond our control, we, certainly have full control on our own

working harder

working smarter

So whom can be blame (except ourselves ?) for the following ?

You will see that the productivity of Powai employees went-up by a small 0.4 (zero-pointfour)

percent during 1985-86.

And during the same period of 12 months our Average Salary/ Wage per unionised

employee in Bombay city went up by 9%.

(Wage/Salary :

Includes: BASIC + DA + ALL ALLOWANCES

Excludes: BONUS + EG + LTA )

W-63 (iii)

I am reminded of the speech Shri Ramakant More (General Secretary -

BKS) made at Lonavala - Shibir of Shop Representatives on 20th December 1986.

He said , "Whereas no Union can ask its members to accept a reduction in wages,

it is absolutely essential that every employee works hard for the full 8 hours of the

day in a disciplined manner and gives maximum possible output.

Translated in my language, he seemed to be saying,

"If you want to survive, if you want to stop the count-down of declining profitability, getup

and fight like hell before the game is over."

H. C. PAREKH

P.S.

In view of the Economy Drive, I am not sending individual copies. If you get a

chance to read this on the Notice Boards, please tell others.

SUN RISES IN THE WEST (Part VI)

January 22, 1987

W-64

To:

Dear Friends

The imaginary dateline that divides "To-day" from "Tomorrow" passes in the Pacific Ocean.

Look-up any good map of the world. You will find that when the island

of TONGA is getting ready to welcome Monday morning, a few hundred Kilometers in

the East, the residents of SAMOA island decide to lie in bed for another half-anhour

because it is a beautiful Sunday morning!

So that is as far west as the sun can rise I No farther. For our purpose, let the sun, this

time rise in the city of DETROIT - the car-capital of America.

Some 30 years ago (in 1956), I spent one summer-vacation in

Detroit, working as a draftsman, in a company called Massay-Ferguson Ltd. It was a

temporary job. Many American companies hire college-students for a short period of 2/3

months during their summer vacation and I was one of the lucky ones.

But perhaps it. was more than mere luck.

From 1948 to 1955, for nearly 7 years, I had spent all of my vacations in the repairgarage

of my brother in Rajkot. He was a dealer of Ferguson tractors and 35 years ago,

farmers did not know how to use a tractor nor did the mechanics know how to repair

one. So there were plenty of tractors to be repaired and many-a-times I was in

the garage well-beyond the midnight trying to find fault in the hydraulic system. In

those 6/7 years, I learnt a lot about Ferguson Tractors' - and may be that is why I got the

job in Detroit.

With very few friends, all I could do on the long week-ends (Saturday and Sunday were

weekly-off days) was to walk for many miles on the Grand River Avenue - a straight road

that perhaps stretches for 10/15 km. And with thousands of second-hand cars (which

appeared brand-new to me!) for sale on both the siaes of this road, Detroit made a

deep impression on me. It was truly the industrial-capital of America just as Bombay is

the industrial capital of India. Detroit was the power-house of the American Economy.

When Detroit sneezed, America caught cold! Almighty Detroit fought (and won) all

major battles of American economic Mahabharata!.And 30 years later, in 1986, Detroit

is living thru the 'Mahabharata once again - except that this time it is a different

episode.

Those of you who have read Mahabharata well, know that, after defeating the

Kaurava-army, Arjun became very proud and considered himself an "Almighty". So

Lord Krishna decided to teach him a lesson. He asked Arjun to escort a group of

"Gopis" thru' the jungle and provide them protection. Half-way through the jungle, a

small number of ordinary robbers challenged Arjuna who at-once readied his famous bow

"Gandiva" and started shooting arrows in the direction of the robbers. Disregarding

the arrows, the robbers attacked, captured Arjuna, tied-up his hands and feet and ranaway

with the Gopis !

So Tulsidasji was inspired to write,

"Kabe Arjun Luntio, Wohi Dhanush Wohi Ban"

In Detroit too, the mightiest of the mighty is licking dust

at the feet of ordinary robbers! The Mighty General Motors!! The car

(manufacturing) King of America!

And you dont have to guess "how" I will tell you,

(1 ) GM Profits

( 2 ) GM's Market Share

1983 - $ 5.5 billions

1986 (est.) - $ 0 (zero) (Trying very hard to avoid a "loss")

During the last 7 years, GM has lost its marketshare from 46% to 42%.

So What does GM do ?

( 1 ) On Nov. 6, 1986, GM announced plans to shut down 11 factories during the

next 18 months, reducing capacity to 70%.

( 2 ) GM plans to cut its salaried work-force (office-staff) by 25% and reduce its

fixed cost by Rs. 6,500 crores ($ 5 billion) every year. GM will also retrench

29000 workers (about 4% of work force ).

( 3 ) Reduce price of a car by $ 1500.

(a few days ago Premier Automobile reduced price of PADMINI model by

Rs.6500/- calling it "ECONOMY MODEL". I believe 4 hub-caps have been

removed and the metal bumpers are substituted by moulded bumpers!)

( 4 ) Sell cars on "hire-purchase" with interest-rate of 0%-2.9%.

(I am told you can drive-away a PADMINI car by paying Rs. 24000/- now and rest

in easy installments - no more waiting 7 years or paying Rs. 30,000/- "ON" money!)

And since the customers are getting tough with GM, GM is getting tough

with the Union! (GM stands for General Motors - not General Manager!).

UNION HAS A ROLE TO PLAY :

United Auto Worker (UAW) is the Labour-Union of GM.

UAW has agreed to reduce the number of assembly-line job classification from 140 to 2!

UAW also agreed to adopt a team approach which will put 6 to 12 workers in charge of a

production area, and try out a 4-day work-week (3 unpaid weekly-off) on one shift!.

Five years ago when Chrysler Car Company (also in Detroit) was about to close-down,

UAW (it is the same Union for all American Car companies) accepted a wage-cut

from $ 12/hour to $ 8/hr ! - 33% reduction.

THE FATSO !

But with fat labour-costs, the mighty Detroit has become flabby! It is not in a fighting

shape!.

Look at 1986 Wages in Car-industry:

That makes American-cars expensive, very expensive!

And the profits are shrinking

At $ 96.4 billion annual sales (1985), General Motors is World's largest industrial

company.

And although

its market-share is shrinking

its capacity is shrinking (closing down old factories),

its profits are shrinking,

it is installing $ 20 billion worth

of automatic machinery to

reduce costs/car

remain competitive

So that it can survive!

The sun may, afterall rise on the West coast of Lake Erie where Detroit is situated!

H. C. PAREKH

SUN RISES IN THE WEST ?

NO-IN THE MIDDLE EAST ! (Part VII)

January 28, 1987

W-65

To:

Dear Friends

Perhaps you know that the biggest share-holders (therefore, owners ?) of L&T are the

Financial Institutions like,

UTI (Unit Trust of India)

LIC (Life Insurance Corporation)

Between them, I believe, they hold more than 35% of L&T shares and they nominate

members on our Board of Directors. The Board takes policy-decisions and guides the

destiny of the company.

Now, if BKS (Bharatiya Kamgar Sena) were to be the largest share-holder of

L&T, what kind of policy-decisions would they take with respect to L&T's

Future operations ?

Current Operations ?

I do not know !

I will not even guess !!

But I do know about a large trade-union federation (like our INTUC - AITUC, etc.) of

Israel and the kind of decision it is taking in a company it OWNS. !!

The Federation : HISTADRUT

Membership : 12 lakhs workers

Group of Companies : KOOR INDUSTRIES

"owned" by this Union

KOOR SIZE :

KOOR is the largest manufacturing industry in the Middle-East, with 250 subsidiaries and

offices in 40 countires.

1985 Revenue : Rs. 3120.00 Crores

1985 Profit : Rs. 22.75 Crores

KOOR PRODUCTS :

Ammunition/Mortars

Electronic Products

Antibiotic Drugs

Mayonnaise (like butter)

Pilotless Airplanes !

KOOR COMPENSATION :

20% higher than other Israel companies

One month bonus

KOOR WELFARE

1. Subsidised meal

2. Discount consumer co-operative stores

3. Loans (to members) for, child care college tuition

KOOR ACTIONS :

When KOOR's profitability started going down, what did the owner-Union do ?

They did the same thing that capitalist-management do anywhere else in the World !

They hired a professional (M.B.A. - Business graduate) Manager -

Mr. MEIR AMIT to set things right ! AMIT took following actions, fully supported by the

Top Management -sorry. Top Union !

1. Closed money-losing motor-factory.

2. Cement Factory

(a)—Reduced manpower from 900 to 600 (33% less)

(b) Increased production from 300,000 Tons to 700,000 Tons ( + 233%)

3. Added new products in -

(a) electronics (b) metals (c) chemicals

4. Tripled (3 times) employment in 9 years's time.

5. Located new-plants in unpopulated parts of Israel

6. What happened at the Subsidiary companies of KOOR ?

Name of

Subsidiary : Company

SOLTAH

TAD IRAN

Product Munition (Bullets/ Bombs) Electronic Products

Sale

1983 : Rs.l66.4 Crores

1985 : RS.102.7 "

1985: Rs. 742.3 crores

Growth Rate 1980-1982 : + 20 %

1983-1985 : + 5 %

ACTION Lay-off 20 % 2000 workers Lay-off 8% of 12600

workers

KOOR PHILOSOPHY :

1. President AMIT said,

"I am not a Welfare department of HISTADRUT" (the Labour Union who is the

owner of KOOR).

2. When Union-leaders objected to manpower reduction, AMIT replied,

"I am a good socialist, and I am in favour of even (uniform) spread of wealth. But

first you have to have something to spread ! To spread "nothing" evenly

(uniformly) is no-big deal".

3. Next President GAVISH said,

"We are in a business that must make profit. First comes profit, then welfare".

4. Not to be left out. Chairman BLUEMENTHAL adds,

"For us Profit-making is the measuring-rod that tells us whether we are on the right

track". Our main aim is to create jobs. To do that we have to survive .in the free

market. Jobs should take precedence over earnings". And because Union is the sole owner

of KOOR, you would think that they will announce a big dividend, for the shareholders

(that is, for themselves). Afterall, who is

to stop them ?

No way !

KOOR management's (I mean Union's) policy is -

NO DIVIDENDS - NEVER !

Typical case of

When a lover gets married and becomes a husband, he ceases to be a lover '."

Moral of the story (for the Government of India ?)

Do not be in a hurry to put a worker on the Board of Directors.

Let "Worker-participation-in-Management" begin where it should - on the shop-floor.

H. C. PAREKH

A " NO - WIN " SITUATION

JANUARY 31, 1987

W – 66

To:

Dear Friends

A no-win situation is one in which no side wins. If anything, both sides end-up losing!

The natural question that comes to the mind is,

"Why, and how, do people get Into such situations In the first place ? And having got Into

it, how can they come out of it, without losing the shirt ?"

There Is no simple, straight-forward answer. But one thing Is certain. No matter what the

outcone, as lonq as one party feels that It has WON and the other party is made-tofeel

that It has LOST , there can be no lasting peace ! The side Which has

apparently lost, has a strong urge

- to get-even

- to teach a lesson

- to more-than-make-up for the loss.

So the losing party waits for Its turn ! At the opportune time It strikes - and the game is

played all over again.

It reminds me of the children's game of SEE-SAW !

It may be fun for the children, but for the adults - especially If the adults happen to. be the

Managers and the Union-Leaders - It could be a nerve-wrecking game.

And if you are forced to play It again and again, the tensions could prove fatal. And

the gains, for either side, are. In any case temporary - like the few seconds when you are

high-up in the air on a SEE-SAW .!

But very few managers and trade-union leaders understand this - and still fewer are willing

to give it up !

Sometime back I wrote to you (August 24, 1986) regarding the possibility of a strike

at USX - America's largest steel-maker. The Strike finally did take place when

21,000 workers walked out In August 1986.

Today, after more than 23 weeks (nearly 6 months). It Is the longest strike In the

company's history.

Business Week magazine ( 19 - 1 - 1987) gives us the following details about the

situation :

I s s u e

The competition (domestic and foreign) is literally driving USX out of the steel-business.

Ten years ago USX company was known as U.S. Steel company and

only one business ( 100%) which was

it had

- making steel

Today steel-making Is only 30% of Its business.

By 1990 ( In another 4.years), steel-making will become only 15% - 20% of Its business !

I cannot help making a comparison. In our own L&T, would you like

to know how "share" of Powai In our total production (excluding ECC & Kansbahal Works)

is shrinking ?

REASON?

USX Management thinks that rapidly-rising labour-wages makes It uncompetitive. So It

wants USW (the labour-union) to agree to more than

10% reduction in wages !

USX MANAGEMENT STRATEGY

2. Play it cool. Show no-hurry to settle the Issue - although the company is losing a

revenue of Rs. 130 crores each month ! (The company is expected to lose Rs. 1500

crores by the time a

Settlement is reached).

WHY THIS ATTITUDE ?

a. With falling prices of steel, the loss you make, the less is the "operating loss".

b. Unemployment benefits begin to expire this month for 19000 workers (out of 21,000)

who are on strike.

WHAT CAN MANAGEMENT GAIN ?

We know what the company is losing. Approx. Rs. 130 crores each month.

But If the management WINS, what can it expect to gain ?

If the Union agrees to $ 2/hour reduction in wages, the company will save Rs. 110

crores per year.

HOW TO COME OUT OF THIS MESS ?

Finally the management and the Union have agreed to appoint an outside mediator

(Mr. Garrett). He is 75 years old and for 36 years, he has specialised in settling disputes

between managements and Unions !

It is expected that he will make,

- the management agree to reduce subcontractinq

- the Union agree to accept a wage-cut of $ 2/hour.

(I think we should start paying ourselves a "consultation-Fee" How often It happens that

what the Union and the management could have easily settled amongst themselves, they

never do - until they appoint an outsider, and pay him a huge consultation-fee so

that he may tell us to do what we already knew was the only way out ! )

Local Union leader, Donald Conn says his workers are willing to reduce wages by $ 2 per

hour. He says," The Issue is not the money. But we cannot go back If our Jobs are taken

by outside contractors".

IN THE MEANTIME

Arthur Garrison (Machinist) says "Things will net tight ". In 23 weeks he has exhausted his

saving of $ 4000. Govt. was paying him $ 129 every week for last 23 weeks

as "unemployment benefit" which will stop by end of January.

(No such. security for striking workers in India. Our Government does not have money to

pay even the WAGES of lakhs of surplus workers In the Public sector companies so it is

trying to got rid of them by Voluntary Retirement Scheme ! )

But Arthur will get $ 60 per week from the Union Strike Fund. (Most Indian Unions have

no strike-funds. How can they help the workers when the workers are so selfish ? Indian

workers only want to exploit the Unions ! Although, in many large engineering companies

of Bombay - Including our L&T - worker's wages have gone up TEN TIMES In last 15

years, the Union fees have remained same - at Rs. 12/- per year 2 Elsewhere In the

world. Union fees are almost 2.5% of wages. In case of Powai, this would mean Rs.

2.5.lakhs/month or Rs. 30. lakhs each year).

In India Unions dare not make any demands on the workers. The Union will pet

thrown dut the next day !

But it is a totally different story when it comes to making Impossible demands on the

company. At that time the attitude is "Whose father, what goes ?" Unless the Indian

workers change this attitude, - and fast - they will have no "chance" to go on a strike -

because there will be no Jobs - from which to go on a strike !

H. C. PAREKH

KEEPING SCORE-II (BRAVO P-PACK 1)

W - 67

February 4, 1987

To:

Dear Friends

Productivity has many faces - like the famous TRIMURTI at the Elephanta Caves or like

Lord Dattatreya.

But whereas the ancient gods have only three-faces, the modern goddess of Productivity

has as many as SIX faces I So the modern factory-worshipper has many more choices

compared to his great-grand-father.

Let us look at these faces :

One of these faces Is MANPOWER.

But ho one wants to worship an ugly face. Everybody wants to worship a

beautiful face.

Before you start making "faces" at this statement, let me hurry and explain

that what I mean is not superficial beauty (or ugliness) but the INNER

beauty - the beauty of an individual's character.

In a factory situation,. Inner beauty of our manpower shows-up In many

different ways, such as

- Intelligence

- Skills

- Behaviour, etc.-

It is not easy (or sometimes oven possible) for everybody to acquire a high

Intelligence or a high skill, even after many years of training in an ITI or a

college. That Is why for everyone there is a LIMIT to which he can

rise/progress.

And as long as we keep making the same products and keep on using the

same manufacturing -processes, we cannot even provide opportunity to our

employees to acquire higher skills - even if they have a high Intelligence.

But today, this is not really what I wish to speak to you about. I want to tell

you about the "BEHAVIOUR".

When It comes to Improving one's behaviour, sky is the limit for everybody!

Batter behaviour means a more beautiful (Inner) face

worshipping.

- a face worth

And that is the reason, today I wish to worship the face of P -PACK manpower

!

Through their Improved behaviour they have brought beauty to their faces.

What "Improved" behaviour" ?

They have m ade themselves more available for work.

They have brought down. their absenteeism drastically within 2 years !

1984 absenteeism - 11.3 %

1986 absenteeism - 8.4%

a reduction of 2.9% point

Bravo P-PACK - Congratulations !

You were practically behind everybody (except for Canteen). Now you are

No.3 In the race. Keep -up so that you may next year become No.1.

Let us see how many "man -days" we could save in these 2 years.

Considering that Powai works for 305 days in a year, th is saving amounts to,

18128 / 305 += 59.4 Men

But surely we have not reached the limit of improvements when we are still

losing 97551 mandays each year !

That is almost equal to 320 men !

The sixth-face of the Goddess of Productivity is still a bit ug ly.

In 1987, let us bring-out our better behaviour and make It a bit more

beautiful !

H. C. PAREKH

INTRODUCING-THE CAPITALIST EMPLOYEES

February 25, 1987

W68

To:

Dear Friends

What would you do If your company was making losses year after year or It's profitability

was declining year after year ?

While you are thinking for an answer, I will tell you what, at least, one

company did.

The company is Jaipur Metals & Electricals Limited (JMEL).

BACKGROUND

1. Started ................ 1943

2. Promoter ................ Kamani Group

3. Location ................ Jaipur

4. Product ................ Domestic Electric Power

5. Collaborator ................ Japanese

6. No.of Employees ................ 1300

7. Profitability ................ Good (Till 1971-72)

The Headache (?)

1. Severe competition.

2. Rapid rise In manufacturing expanses.

3. Accumulated losses of Rs.74 lakhs (upto 1976-77).

Self-Prescribed "ANACIN"

Got Itself declared as a "Relief Undertaking" (to avoid legal action from Creditors/Suppliers).

Temporary RELIEF

1980-82 Profits .................... Rs.8.4 lakhs.

But If you have TYPHOID, taking self-prescribed Anacin does not help !

Things got worse and losses in 1981-82 went-up to Rs.580-6 lakhs!

Enter the DOCTOR

Government appoints Mr. Kavadia as a Director of the Company.

The DIAGNOSIS

Mr. Kayadia diagnosed the disease as follows :

• High manufacturing costs

• Expanded Wage-structure

• Improper Methodology of working

• LOW PRODUCTIVITY

(In our own Powai context, does this all sound very familiar ?)

THE MEDICINE

The Government of Rajasthan was expecting the patient to die (the closure).

But Mr.Kavadia thought that with some pretty strong medicines the patient could still be

revived !

So Mr.Kavadia did some plain-speaking (polite but blunt) to the patients - 1500 of them -

all the employees of the company.

Then he administered the following medicine :

a) Stopped free lunch

b) Cut-off Government benefits & subsidies

c) Retrenched 500 employees.

d) Increased number of working hours per day.

e) Stopped, all overtime.

f) Froze wages for 5 years !

g) Froze Increments for 5 years !

h) Linked future wage-increases with productivity.

But alongwith all the bitter medicine, he also gave them some,

TONIC

20% share In profit of the organisation to the employees. In the form of equity-shares !

Share-holding

Before 23.06.1986

* The shares are held by an employees co-operative society and cannot ' be sold In the

open market. When an employee resigns or retires, his share In the society

is transferred to other employees. So the share-holding remains Intact.

Kavadia says,

"The main reason for the success of the organisation is not that the employees are now

participating in the management of the"affairs of the company. The main reason seems to

be the employees' stake in the stake of the company. There is a feeling

of ownership amongst the employees and that seems to have a much better effect than

all the talk of low productivity and economic crisis.

I offered to employees a choice between,

1) A bright future by surrendering a few privileges for a short time

2) Complete closure without any compensation.

The employees chose the first alternative and they are proud of having made the right

choice at the opportune time".

FUTURE

Seems quite bright. Management felt confident to introduce new products like

• Cadmium - Copper wire (for Defence)

• Aluminium Alloy conductors (for Railways)

• Sllverised Brass strips (planned)

MORAL OF THE STORY

In order to become profitable once aqain, must companies necessarily go through cancerlike

sickness and bitter medicine (or even surgery - operation) or

Can they actually take advance action of offering tonic to its employees in the form of

"shares" to prevent the sickness ?

Friends :

I am not sure that it is such a simple issue.

I am not sure that giving shares to our employees, by Itself, will help; us to get rid of all

our problems. (Remember KOOR INDUSTRY of Israel ?)

In our own case at Powai, I am not sure that TONIC alone will work.

To cure ourselves of our "high manufacturing costs", I am afraid some bitter medicine may

have become Inevitable, and If our ECONOMY DRIVE does not prove to bo a strong enough

medicine, we must soon think of other !

H. C.PAREKH

THE END OF CORPORATE LOYALTY?

17 Mar 1987

W 69

To:

Dear Friends

De-massing

Down-sizing

Re-structuring.

To 5,00,000 white-collar workers who left their companies during last 2

years, these words mean,

"You are fired (lost your Job)"

In troubled American Companies, these Staff reductions are often needed to

SURVIVE - But healthy companies are doing it too !

Why?

To get expenses in line with foreign rivals.

But is this (staff reductions) posing a threat to employees' feeling of Loyalty

to their companies ?

Apparently in America it does. In a Business Week/Harris Poll of middle

managers, 65% said,

"Salaried empl oyees are less loyal to their companies now than they were

10 years ago".

Of course, who does not want a loyal work -force?

George McCul lough. Vice President, Employee Relations - EXXON Corp.,

looks at staff reductions differently, when he says,

"There will be fewer people to run the business, so they will be' busy. And

when they are busy, they will be happy".

So EXXON went ahead and cut Its work -force by 17%!

For EXXON, in a

dog-eat-dog type of competition, company -loyalty was a luxury they can no

longer afford!

But is it possible, that, a work -force, demoralised by uncertainty, could hurt

them even

worse in future?

But before you worry about the future, you have to survive the present. And

that is why DU-PONT made 11,200 employees leave "Voluntarily" (by making

a one-time payment of $125 million) but made a recur ring annual saving of

$230 million (after -tax!).

And DU-PONT is not alone. During last 18 months, 300 companies have

slimmed down in America.

But the fortunate part is that the "retiring" employees do not hold grudges

against their companies. They unde rstand that the managements had no

choice but to cut costs in the face of,

Severe foreign competition

De-regulation (i.e. Increased domestic competition)

Technological changes

Recession (lack of demand).

DU-PONT Chairman HECKERT recently told employees,

"We now have several thousand more employees than Jobs. That

Is far too

many to handle through attrition. To help DU -PONT's

competitive position,

the number of layers of managament is - being reduced and unnecessary

tasks are being eliminated".

But not all employees see eye -to-eye with the management. A 20 year old

(service) EXXON employee says,

"We "used to be a community..... Now it is clear (that) there Is only one

Important group the shareholders".

And If an employee Is not asked to leave, he will most likely be asked to

Take up a new Job.

Go to another city

Accept a salary-cut/salary-freeze.

Agree for demotion

But any of these (options) is better than being fired (lose Job) as the

following 1,28,076 Americans found out!

Losing Job is a bad thing that can happen to a wage-earner.

But a wage-earner does not realise -that the man on the road Without a Job

is WORSE OFF!

A few months ago I had an opportunity to meet Mr.Edmond Ayoub who Is -

the Chief Economist of one of the biggest Labour -Union of America - the USW

(United Steel Workers of America).

Ayoub sounded desperate - and angry.

Desperate because

American Steel Industry Is operating below 40% capacity

1,25,000 Steel workers are unemployed.

Angry because

Cheap labour of Japan, Korea and Taiwan is producing CHEAP steel, dumping

it in America and in his own words,

"Successfully exporting their unemployment to our (American) shores"

But Ayoub did not like it when I as ked him,

"At $100/day wages, your American workers had enough money to buy a car,

a house and cake for eating. And now 1.25 lakh of these workers have lost

Jobs,

We have, perhaps, 125 lakh workers who do not have even a loaf

of dry

bread to eat and who would be only too happy to work hard for 8 hours a

day - for Just ONE dollar/day.

Is there good-enough reason to deny them their ONE dollar?

Will the high-wage Island of Bombay city end -up being Pittsburgh - the one

time steel capital of the World?

H. C. PAREKH

Giving Bonus The American Way

March 31, 1987

W – 70

To:

Dear Friends

The Idea of giving bonus to employees is catching-up in America (may be they imported it

from India!).

But as true Americans would do with anything, they have improved upon it!

( 1 ) Workers must first accept a wage-cut of 25%!

( 2 ) Then workers must keep the LABOUR COST at 10% of sales.

( 3 ) And If the workers, succeed in achieving both, then they would

get a bonus as follows :

If the Labour-cost as % of sales

Bonus will be equal to

( a ) Remain at Target level of 10.0% 1.0% of Sales

( b ) Go down to 9.5%

1.5% of Sales

(Better than target)

( c ) Go up to 11.0%

0.5% of Sales

(Poorer than target)

At this stage, I cannot help reminding you all that our own

Manpower cost______ = 28.1% (1985-86)

Powai + Madh Output

And I cannot help feeling that there is an URGENT NEED to Import this vital

managerial KNOW-HOW from America to save our Industries!

That is right. The Industry that started this_new system in America was about to be wiped

out.

The company Is called A&P.

They are in the business of selling,

· food articles (grocery/vegetables)

· milk products

· soft drinks

· small household Items.

They do not manufacture anything. They Just sell (like our Bania and the

Bhajiwala). But even they face severe competition in their business.

So severe that,

DESPERATE ACTION

· In 8 years, the company had to close down 70% of its stores!

· The company made losses for 4 years continuously!

· Worker morale became very low.

In desperation the company Introduced the earlier-mentioned BONUS-SCHEME on

experimental basis in 60 stores after negotiating It with UFCW (the Labour-Union).

( I ) EFFECT ON WAGES

( 2 ) EFFECT ON LABOUR COSTS

( 4 ) EFFECT ON EXPANSION

Purchased 65 loss-making Food-stores from a competitor (BATES INC.) on

condition that UFCW (Labour-Union) would accept Bonus-Incentive!

( 5 ) EFFECT ON PROFITS (OPERATING)

UNION STARTED IT ALL!

It seems the whole idea came from the, Union! In 1981, when A&P closed down 81 stores

(In America they don't need Gov+.permission), the UFCW (the labour-Union) purchased 6

of those stores which are still employee-owned!

This gave an Idea 'to the Management. Why not link BONUS to LABOUR-COST? This would

be a true profit-sharing.

A&P Chairman, James Wood says,

"The Idea of people getting a piece of what they are trying to achieve, has

always appealed to me enormously".

WHAT DOES THE UNION THINK?

"This (scheme) involves putting part of our wages at risk - something we would not

ordinarily volunteer to do,

but, Intense competition and mergers In the retail food business have spread Labour

concessions (wage-reductions) to many stores. If this continues, the A&P profit

sharing scheme may, one day, become an Industry-standard".

ANY LESSONS FOR US AT POWAI?

Plenty. How long can we carry-on the way we are doing?

*Manpower cost Includes :

All monthly cash payments + Co.'s contribution to PF, ESIS + Bonus + Ex-

Gratia + LTA + Medical reimbursement + Cost of Canteen, Dispensary, Transport & Welfare

facilities

After studying these charts, I wonder whether we need to travel halfway around the world

to America In search of know-how on wages and bonuses!Much nearer home, we know how

bitter medicine has brought back health to Jaipur Metal & Electricals Limited!

Question is, "Shall we display the courage or close our eyes like an Ostrich and bury our

head In the sands?"

H. C. PAREKH

GIVING BONUS-THE AMERICAN WAY (PART II )

April 08, 1987

W71

To:

Dear Friends

A few days ago I told you about the bonus-system of A&P Food Stores In America.

it was a simple, efficient system. The lower the employee (manpower) costs, the higher the

bonus. It Is very much like the family-planning drive of our Government. With a fixed

family-income. If you have a small family, each member of the family gets a larger share

of that Income. If you have a very large family, everybody gets a very small piece of the

cake!

This is the basic economic principle.

Whereas one can try and stop adding members to the family (prevent future births),

what about the children who are already born? You cannot sell them off - or send them to

an orphanage! They are there and they must be looked after.

It is the same thing with a company. It can stop recruiting further employees (as we

are trying), but what about its existing employees? It has to look after them.

So whether it is a family or a Company, answer is the same.

It must Increase its Income. It must generate more profits which can be used to look-after

its large family - even if it means a small piece to everybody.

To motivate its employees to work harder to Increase the company's profits (and

profitability) one American Company has tried a novel approach.

The Company : Commodore International Ltd.

Product

: Computers.

ProbIem : Two years of declining sales and a year of substantial losses threatened the

company's survival.

Solution? : Chief Executive Rattigan introduced an unusual bonus- plan. Each

employee will receive a bonus equal to 1% of his (or her) annual salary for

each point Commodore's stock (share-price) has gone above 6 1/2 (the August 15, 1986,

closing price) by March 31, 1987. A five-point gain will mean a 5% bonus, and so on.

Results : By March 02, 1987, the stock had already jumped to 14!

This means all employee? will get 71/2 bonus (14 - 61/2).

But there is nothing "free" in this world.

As Julle Andrew sang in the film "Sound of Music",

"Nothing comes from Nothing

Nothing ever could -

Sometimes In my childhood

I must have done something good".

the employees had to pay a "price" for this bonus.

The Price

· Wage Freeze Massive

· Lay-off (Retrenchment)

· Increased Work-load.

These days, when Commodore employees enter the lunch-room, the first thing they look-up

is a large blackboard showing a graph of Commodore's dally share-price.

These days Commodore-employees have a better appetite! With massive retrencheach

has to do the work of two!

The Business Week (March 16, 1987) story does not tell , us,, what would happen to

Commodore-employees If the share-price went below 6 ½ !

We are not concerned, since we are quite unlikely to link employee-bonus with L&T's shareprice.

But from NOW ON, you should certainly be Interested in keeping-track of L&T's share-price.

A few days back, L&T employees have already received an offer from the

Management for Right Convertible Debentures worth Rs. 2.1 crores

And the 23rd March Annual General Meeting of the share-holders passed a resolution to

offer to L&T Employees, Employee Convertible Debentures (stock option scheme) worth Rs.

2.5 crores (Approximately)

That makes a total of Rs .4.6 crores.' So from next year onwards, you wilI no more be

concerned with Bonus alone -you will also be concerned with the Dividends - and

with future Issues of bonus-shares.

So from now on, you must ask

· Will my bonus-demand neutralise my prospects for bonus-shares?

· Can I take away with another hand what I am giving myself with the first hand?

· Should I allow short-term gains to upset my long-term benefits?

In our country, we do not need the Commodore-plan; India already has a BONUS-

ACT, which may give employees 18% bonus even if a company's share-price may have

come down by 80%!

H. C.PAREKH

ALLWYN LIMITED / INDIAN METHOD

April 15, 1987

W – 72

To:

Dear Friends

In the last 2 circulars I told you about the novel methods being adopted by some American

companies when It comes to "Sharing-Prosperity".

Now, Financial Express of April 3, 1987, has reported an INDIAN-METHOD, which

I thought I should share with you (this is the right time!).

The Company

ALLWYN LIMITED – HYDERABAD

Products

Refrigerators

Buses

Wrist watches

Steel furniture

Production

August 1986 - March 1987 (8 months)

Number

Rs. Crores % Increase over

previous year

Refrigerators Buses

Wrist Watches Steel

Furniture

56,711

737

5,00,000

22.27

3.30

16.72

1.78

+ 36 %

+ 73 %

+ 9.5 %

Total Production 44.07 + 41 %

Total Sa1es 43.49 + 53%

No. of Employees ...... 7500

Despite such FANTASTIC Increase in "employee-productivity", why is the company worried?

In fact what can be the problem when Mr.R.P.Agarwal - Managing Director

has the following to say? "The Company has had the distinction of forty-five years

of strikeless productive days - a rich heritage".

Well, the customer does not care! He cannot be bothered with how good (or bad)

Industrial-relations you have!

At I that he CARES for is your selling-price, and of course,

the quality of your .products

- the after-sales service

- the easy availability of spare-parts

- the speedy delivery

And if he is not happy with one or more of these, he can (and will) create problems for you

- big problem!

ALLWYN's PROBLEM NO. 2 . ...

1985-86 Sale .......... Rs. 86.820 crores

1985-86 Net profit ....... Rs. 0.296 crores

THE SOLUTION ? Recently, the company entered Into a 3-year agreement with-the

union. In this agreement. It has offered to pay each employee, Rs.300 as L.T.A.

If, and when ther net-profit earned by the company touches Rs.5 crores!

THE POINT? The Prosperity (the good-days) and The Adversity (the bad -days)

of a company depends upon the combined performance of all of its employees.

And If employees are eager to share the prosperity, they must also be equally prepared to

share the adversity! People who are unwilling to make a sacrifice during the bad-days, do

not deserve a share In happiness during the good-days!

H. C. PAREKH

BRITAIN WORKS O.K.

October 1, 1980

W-73

To:

Dear Readers

What makes a country "work"? - or, for that matter, what makes a Company or any

other Institution "work"?

At the cost of "over-simplifying", I would say, it is the "Character" of the people and the

"Ideals" they uphold.

"Britain Works O.K." is a book about the British working class (Managers included!) and

their struggle for a "better tomorrow". This "drama in real life" has powerful

characters (both from Union and Management) who semm to be locked in a grim battle

of apparently conflicting "ideals" -until some one turns around and asks in each scene -

'What is right?'

rather than

'Who is right?'

As soon as both the parties made a sincere attempt to answer

the question truthfully and honestly, the "apparent"

conflict gave way to an unifying understanding - a commonness of purpose.

The deep impression the book made on me had to be shared with all of you. So, we got

it translated in Marathi. One or two chapters will appear at a time - since there is so

much to absorb !

Those who wish to share their views/offer their comments on what they have absorbed,

are welcome to write to me.

H.C. PAREKH

A COMMON DINING HALL

May 1, 1981

W – 74

To:

Dear Readers

Although the first chapter of BRITAIN WORKS O.K. came out a day before Mahatma

Gandhi's birthday last year, it did contain the theme which Mahatma kept on asking

his countrymen throughout his life time i.e. What is right?'/ rather than /Who is right?'

During the last 7 months, this publication aroused considerable interest amongst

L&T-ites. in the February issue we published the comments which we received from a

'well wisher' who wanted all of us to be less selfish and make sacrifices for the good

of the company and the community.

In this issue, we reproduce a letter from another 'well wisher'. While he has made

certain comments, he has also raised some questions. Although the well-wisher has

chosen to remain anonymous (I do not understand why), I feel I owe him an answer.

Whereas, a common dining hall and common food could bring

Managers/Supervisors and Workmen together (this is a strictly personal opinion) it

is not the only thing that brings people closer to each other. It is true, that in a family,

all members share the same food - but then, a family is also one of the few

remaining institutions where one member does not make 'demands' on another

member! It is an institution that is built on everlasting mutual love, an

intense individual desire to sacrifice in the larger interest of the Unit and an

everlasting respect for the elders. Let us work together to make L&T such a family

first! As regards obtaining a sense of achievement and satisfaction in one's own work is

concerned, I do not think there is any limitation imposed by division of labour. No

matter, how small a task, the satisfaction one derives comes from doing it well

today and trying to do it even better tomorrow! Although I do not know what is the

task performed by the 'well wisher', I cannot imagine the task to be useless and not

contributing to the well-being of the Society in which we live.

As far as participation by all levels of workmen is concerned, I entirely agree

with the 'well wisher' that the participation in our productivity drive must not remain

restricted to the office bearers of the Union and the shop representatives but must

ultimately spread to each and every employee of the Compan

As far as implementing the many suggestions which I receive in all sorts of forums, I have

only this to say. Changes do not occur overnight, and the changes of attitude are most

often the slowest and the need for a change in attitudes is not limited to any particular

group of employees. Next time we have a problem, let each one of us ask ourselves 'what

is right'? before taking a stand which is against the interest of the community at large.

H.C. PAREKH

THE MAGIC FORMULA

October 1, 1981

W-75

To:

Dear Friends

Japan is called the "LAND OF THE RISING SUN" although strictly speaking it is

the Soviet Russia which greets the new day every morning !

But Japan has already overtaken Russia to become the second largest economy in the

World - next only to America. Many experts believe that Japan

will soon bypass America to become the strongest industrial society in the world.

What Is The Secret Of Japan's Success? Almost Every Country Is Trying To Find Out If

There Is Some "Magic Formula" Which The Japanese Seem To Have Mastered. From All

Over The World, Dozens Of Delegations Have Gone To Japan In Search Of This "Magic

Formula". What They Have Found Out Is That There Is No Single Simple Formula! But

One Thing Has Become Clear - That The Japanese People Think Of Their Country

First. Then They Think About Their Company And On Some Rare Occasions, When A

Japanese Thinks About Himself, He Almost Feels "Guilty" To Be So Selfish

And that makes Japan work.

Last year when I reproduced "Britain Works — O.K." many of you responded, welcoming

the serial.

This time .our focus is on Japan. I am happy to

reproduce 'here, a despatch from Tokyo by Peter Hazeihurst titled.

"WHEN JAPANESE WORKERS GO ON STRIKE"

If Anyone Has Any Comments, Please Do Feel Free To Write To Me. I, For One,

Believe That Excellence At Powai Can Only Come Out Of A Responsible

And Participative Dialogue Amongst All Sections Of Employees.

H.C. PAREKH

MY JOB/ YOUR JOB

December 1, 1981

W-76

To

Dear Friends

In my last communication, I said that a Japanese thinks of his company first

before he thinks about himself. The article by Peter Hazeihurst, highlighted this

attitude by describing the behaviour of Japanese workers when they agitate for a

demand.

In this issue, David Clutterbuck (Associate Editor International Management) tells

us about the Japanese workers' "involvement".

When I read:

"WHAT MAKES JAPANESE CAR MANUFACTURERS SO PRODUCTIVE?"

I could appreciate what the Japanese are trying to achieve with all of their robots and

automation and their computers and so forth.

What amazed me most was the willingness and the readiness with which the Japanese

workers involved themselves in the task of raising productivity. Apparently they

have not heard such phrases as "My job" and "Your Job"'. I have a

feeling that if the Japanese were to read our "Job Classifications" in the YELLOW

BOOK, they will be equally amazed.!!

Shall we try to .pick up the leaf out of their "Book"? With best wishes,

H.C. PAREKH

CONGRATULATIONS, MR. IKEUCHI!

February 15, 1982

W-77

To:

Dear Friends

For over 2 months I could not write to you - but I can assure you that the

Japanese were working and working very hard .'

In this article, Mr. Ikeuchi, General Superintendent

of IHI, provides answers to a West German team which went to Yokohama to learn

about the Japanese SECRET OF SUCCESS.

But once again we find that it is not what they do but how they do which is most

educative. All along the emphasis is on VOLUNTARY activities by small workgroups.

There is simply no compulsion of any kind from anybody ! The British may

have coined the phrase "WORK IS WORSHIP", but we find that it is the Japanese who

have put it into practice by their positive attitudes.

Congratulations, Mr. Ikeuchi!

H.C. PAREKH

SPRIT OF WA

April 5, 1982

W-78

To:

Dear Friends

Last article dated 15th February, brought an anonymous admonishing letter which I

reproduce below (translated by me):

"Sir, Your "goal" is only to "expect" from the workmen, not to find out what they

want and what they don't want. You are talking-down to the workmenfor

example, you have financially enabled the Supervisors/Officers to educate

their children. Their children should go to better schools and our children

should go to municipal schools. Till such time you cannot abolish this difference,

there is no use your publishing thousands of such articles. First improve

your behaviour - then "expect" from the workmen.

- A Worker"

From the fact that our friend has chosen to remain anonymous, I get a feeling that

we still have a long way to go before we have an atmosphere of "openness and trust" at

Powai. On my part, all I can say is that, the sentiments expressed above are

perfectly "human" and could have been expressed openly and freely

without any fear. In such matters, it is quite possible for us to "disagree" but as long

as there is a willingness to listen and a constructive approach, fear. of "disagreement"

need not bother us.

As far as the.- education expense reimbursement scheme is concerned, let me assure

our friend that some good news is on the way for the non-supervisory employees ! I do

hope, he will read the following article very carefully and then come back (in person, I

hope) and tell me how we can foster the "Spirit of Wa" in our very own L&T'.

H.C. PAREKH

ATTITUDES CANNOT BE BOUGHT

October 1982

W-79

To

Dear Friends

Mr. K.S. Vaidya (PGW 33.26) is obviously an alert reader of newspapers. He sent

me this article on Japan with the following comments, which I have quoted below:

"I am sending an article for your reading. If you find it suitable, I request you

to make arrangments in such a way that all the workers can read it. Thank you."

Dear Mr. Vaidya, this article is not only readable, but it also depicts accurately the

attitudes of the Japanese worker and the Management. By writing this article, its author,

Mr Ramesh Mantri, has done a great service to the readers of "Swaraja" and by bringing

it to my notice, you have done an even greater service.

An unending debate can be held on how "Japan Works O.K." or for that

matter why everything works O.K. in any other country. But whether we ourselves

make everything work O.K. or not will depend on our own attitudes.

— Our attitue towards the SOCIETY.

— Our attitue towards the ORGANISATION.

— Our attitue towards WORK.

— Our attitue towards our COLLEAGUES.

— Our attitue towards SUPERIORS.

And technology and know-how can be bought from abroad by paying for it

but these ATTITUDES cannot be bought. They have to emerge from within ourselves :

— From our culture

— From our heritage

— From our faith

— From our feelings about right and wrong

H.C. PAREKH

A DUTY-FREE IMPORT?

March 26, 1987

W – 80

To:

Dear Colleague

Not only employees of Group II but all of us at Powai are upset that the

Government of India, for the past 2 years, have been permitting Import of complete

fertilizer plants - without payment of any Import duty. At one time this duty used to be

45% of the plant value. (In the latest budget It is proposed to once again. Impose

a 15% duty on Imported fertilizer plants).

So the European and the Korean manufacturers are suddenly flooding the Indian market,

literally driving us out of the business. When the Indian Industry protested to the

Government, the reply given was,

"How long can we protect you with a high Import-duty? Now you are grown-up and should

behave like one! You must face International competition. You must fight your own battle.

High Import-duty pushes-up project-cost, which pushes-up product-cost which, in turn,

makes our economy a high-cost economy.

We (the Government - and finally the people of India) end-up-subsidising your high-cost

fertilizer plants, then the high cost fertilizers, and finally the hlgh-'cost food-grains.

This has got to stop - so no more Import duty".

The Government has a point (even If we have 5 counter-points!).

The fact remains that the Koreans are low-cost producers, because their productivity is

so high. Take a look at the fol lowing chart :

VALUE OF GOODS PRODUCED BY AVERAGE AMERICAN WORKER

Could it be because their managers work much longer-hours?

We are not sure.

But one thing seems certain.

Their managers do work smarter.

Some examples :

Korean Managers encourage face to face meetings between management and workers.

At Samsung, managers and workers exchange Ideas freely on the plant floor or In the lunch

room - there Is a common lunch room.

Workers are given freedom at work.

If a Korean worker has an Idea, he says it - the free and encouraging environment enables

him to do so (In the case of Americans, even If they have a good Idea, they follow

Instructions!).

A worker of Samsung International Inc. (U.S.A.) says,

You can voice your opinion here. I once spoke up to a manager. I would have been fired

anywhere else, but It was O.K. There's no union here either, but we get all the benefits we

need".

President Lee of Samsung (U.S.A.) says,

We prefer the consensus style. If a worker Is buying a house or getting a divorce, we

get the company lawyer".

The current Korean Investment of $ 200 million In U.S.A. is expected to rise to $ 5000

million within the next 4 years!

And alongwith this the Koreans are also exporting to U.S.A. their management style.

And the American Govt. has decided not to charge any Import-duty on this!

H. C. PAREKH

ROTI, KAPADA, MAKAN

5 th , March 1987

W – 81

To:

Dear friends

Roti, Kapada, Makan

" Why does the company not giving Makans (Houses)- or at least housing-loans to the

employees?"

" Why was Powai-East land converted from "Housing-Project" to " Factory-Project?"

During the last 2 months alone, employees (and even their wives!) have asked me theseand

similar-questions on the following ocassions :

My group-meetings with Shop-Reps

Meeting with all the Shop-Reps

a. at Lonavala - 20 th Dec 86

b. at Powai - 16 th Feb 87

Worker Education classes (everyone of these for last 5 years)

Meeting with Union Jt. Sec 5/2/87)

Meeting with wives of Officers (11-01-87)

Works Committee Meetings (Several)

I have answered :

1. It is beyond the Company's financial capacity to either provide houses (or housing

loans ) A small flat of 350 Sq. ft, today costs upward of Rs. 2 lakhs. Not everyone is

satisfied to move into such a small flat. Some want 500, 700 or 1000 Sq. ft.-

depending upon whether he is

· a shop - floor worker

· an Office worker

· a Supervisor

· a Manager

So we can take an average of 500 Sq. ft. at Rs. 600 per Sq. ft, this works out Rs. 3 Lakh

each And out of our (7200) employees at Powai + Madh + City offices in Bombay, I am sure

at least 50% (half) would like to avail of such a facility. That makes ,

3600 Flats x Rs. 3 Lakh each = Rs 10800 Lakhs.

That is Rs. 108 Crores !

And even if this amount was spread over TEN years, it would mean Rs. 10/11 Crores each

year! From where can company find such money ?

From where can we find even Rs. 5 Crores per year, if we spread-out the burden over 20

years ?

2. Who (Which group of employees) should get the "loans"? (assuming money was

available-which would be of course wrong to assume! )

H. C.PAREKH

SUGGESTION-SCHEME

February 11, 1987

W – 82

To:

Dear Colleague

A few days back I had a meeting with about 15 shop-representatives from various

departments all over Powai.

Amongst the many things that we discussed, one was regarding employee-suggestions.

Whereas the shop-reps, agreed that not all suggestions can be implemented or

rewarded, the general feeling was as follows :

(1) The feedback needs to be speeded-up.

(2) The "Rejection-Reply" should be worded positively, encouragingIy.

(3) Foremen/Dept.Heads should take more Interest In understanding the suggestion and

the logic behind the rejection and they should take pains to explain this logic to the

suggester so that he is convinced.

As far as I can see, this point is VERY IMPORTANT. The suggestion-committee Itself

felt very strongly In favour of this during its last meeting.

Every person feels that his suggestion is most brilliant and worth a Nobel-prize ! He derives

greatest satisfaction in seeing it get implemented. This satisfaction, quite often is even far

more important to him than the monetary reward.

This is not difficult to understand. If we do a bit of Introspection.

All of us, throughout our working-life of 20, 30 or 40 years keep on suggesting ''changes",

whether those changes pertain to

- Information Systems (rules, procedures, etc.)

- Physical Systems (manufacturing methods, storage, etc.)

- People (recruitment, skills, training, organisation, etc.)

- Policies (rewards, punishments, etc.)

- Attitudes (love, hate, etc.)-

We make these"suggestions" (except that we do not consciously call them

"suggestions" in dozens of encounters with our colleagues everyday -for perhaps 10,000

days of our working-life.

All of these, add-up to perhaps 100,000 or if you are very prolific, to may be

a MILLION suggestions during the course of A lifetime !

But how many of these get accepted ?

And of those that do get accepted, how many finally get Implemented ?

Perhaps an Infinitesimal fraction.

But despite these enormous odds (against our suggestions getting accepted), we do

not get frustrated and give up making suggestions.

Why ?

Again not very difficult to see.

In a dialogue, a discussion, a group-meeting, others are quick to respond with counterarguments

and counter-logic.

There are more arguments (from the suggester's side) and still more counter-arguments.

The whole process Is very personal, live, open and transparent. You can see the feelings

and touch the emotions.

And therefore, you understand. And when you understand, you do not resist - nor do you

feel frustrated.

Perhaps you may even get a smalI satisfaction out of having been given the opportunity to

Influence the thinking of the others.

If nothing else, you get a feeling of having "participated" in the process. To most of us this

feeling, by Itself is a great motivator - the feeling of having been "seen-and-heard".

And so we keep-on making a hundred suggestions, day after day, for ten-thousand days '

But none of this life-drama is present when you send your suggestion, through a piece of

paper and receive a "response" after a few months. on another piece of cyctostyled paper !

No Joy, no tears, no heart-burning, no exaltations, no voices, no emotions, no feelings !

Just some black dots on a white paper delivered through "mail" !

Now we are going to change these wordings and make them sound much more

encouraging.

Suggestion-Scheme co-ordinators (Modh - Gr.lI, SVR - Group III, Solkhan-Gr-.IV, Saharia -

EWAC, Sethi - PGM) will also attach the details of the suggestion itself and the details

of the "reasons-for-non-acceptance" to the reply so that you have a little better

understanding of the whole matter.

But that may not be enough !

It is one thing to be able to convince a suggester regarding the "non-acceptance" but It is

an altogether different thing to keep him motivated so that he keeps sending more and

more suggestions.

And that is where you come into the picture.

You - and you alone - can bridge the gap (the communication-gap) between the seemingly

Impersonal suggestion-committee on one side and the person sitting in front of you, on the

other side.

That's Right !

- No more "dellvery-thru-Mall".

- No more mere "handlng-over" the letter. You must make him sit down comfortably

and tell him,

"I did not know that you had sent in this suggestion. Seems like a good

suggestion. But of course, you know that the Suggestion- committee has to look Into

each and every aspect, not the least

of which is ....................................................……………………………………………………….

………………………………………………………………………………………….

Next time you have a clever Idea, why don't you come to me first. May be I can help

you to make the necessary sketches and the calculation of savings. I am sure, one of

these days, you are bound to come-up with a brilliant Idea and win a big prize - so why

not look around and keep asking,

"Is there a better way of doing this ?"

A major objective for any supervisor (whether he be a first -line supervisor or a General

Manager) is to bring out the "creative talent" which lies hidden amongst his

subordinates/colleagues. And "suggestions" received from your departmont/section Is a

pretty good Indicator of how well you are meeting that objective.

Let this be your PRIME OBJECTIVE in 1987.

H. C. PAREKH

KEEPING SCORE – III

2 February,1987

W – 83

To:

Dear friends

A few days back I congratulated all of you for bringing down the absenteeism in Powai.

Then I looked up my old circular of June 7, 1985 on the same subject and felt that I should

separate out and tell you more about

"The Man-days lost due to unauthorised absence and authorised loss of pay (LOP) leave".

The following figures should impress upon you the need or some drastic action.

First let us look at the total man-days (unionised employees) available

Unionised Manpower Data

No.

DR MR Days

Total

No.

(Lakh)

Min.

avail.

Days

Min.

avail.

days

Mandays

Mandays

1982 3744 256 958464 1161 251 291411 12.5

1983 3734 256 955904 1108 251 278108 12.4

1984 3713 255 946815 1120 250 280000 12.3

1985 3664 255 934320 1129 250 282250 12.2

1986 3595 255 916725 1119 250 279750 12.0

This assumes that every Unionised employee will utilize his/her authorised leave-quota to

the full.

And the leave quota is currently.

DR

MR

SL 15 15

CL 8 10

PL 27 30

Max. Tot 27 55

Now let us look at the man-days lost due to unauthorised (very bad!) absence and

authorised loss-of-pay leave.

CONCLUSION :

How much did these (DR) workman lose by way

Wages* lost due to UA leave & LOP(DR)

*Wages(average) = Basic + DA + Spl.all + HRA

excludes : Conv allowances + Medical allowances, Work allowances, Bonus, LTA. etc.

And how much production did the Company lose because of this UA "Dandi" of the "DR"

Workmen?

H. C. PAREKH


November 16, 1986

W – 84

To:

Dear Friends

This write-up appeared in the Financial Express a few weeks ago (26-9-86).

While we are all busy celebrating November 1986 as

"QUALITY MAINTENANCE & IMPROVEMENT MONTH" ,

I am wondering what the employees of 80-year old Loyal Textile Mill must be doing !

May be nothing special !

From the following write-up. It seams to me that QUALITY & PRODUCTIVITY have become a

part and parcel of their lives - so they do not need a reminder .' None of us would be around

when L&T is 80 years old. The question that we need to ask ourselves is :

"Can we do something today to make 'Quality & Productivity' a part of our Work-life so that

L&T-ltes of the year 2023 A.D. do not need a reminder ? "


KOVILAPATTI (TN) - FE - DATED 25.9.86

The 80-year old Loyal Textiles Mills Ltd. located here is one among the few units of

textile industry that has adopted modernisation and upgradation of technology.

These mills show how a combination of latest technology, active involvement of labour and

a professional management team could re-write the history of the Industry.

Its modernisation commenced in 1975. They ploughed back Rs. 2 to 3 crores every year

for modernisation. Now it is one of the vibrant units of the industry in the south.

Loyal has many firsts to its credit. It was the first in the country to install an air jet weaving

loom, just one year after the technology was introduced for commercial weaving in the

world markets. It has the capacity to weave cloth at three to four times the speed

(PRODUCTIVITY) of automatic looms. The company has a plan to install 100 more

machines in a year's time.

Loyal, for the first time in early seventies, introduced, one hundred percent tandem carding

which eliminates the yarn defects and inproves the fabrics and QUALITY. It also has

the largest number of 1480 rotors of open-end, which like air jet weaving involves

spinning yarn without a spindle.

The company is proud of installing a multiphase weaving machine, for the first time in

the entire South East Asian region.

Though It costs heavily (Rs. 15 lakhs each), multi-phase technology has unique features

like low energy consumption., high speed and capacity to weave fabrics of wide widths. The

simultaneous operation of about 17 shuttles against one shuttle In conventional

weaving make the machines highly PRODUCTIVE without consuming extra energy. The

company plans to acquire 15 machines. A multi-phase machine produces 1500 metres of

cloth a day. The company will shortly introduce polyester-cotton mixed plain suitings.

The company is claimed to bo enjoying cordial Industrial relations. The system of

scientifically determined work-norms and work assignments are already in vague. Labour

oriented defects_are negligible (QUALITY). There is a constant stress on training and retraining

of workforce. Adoption of modern techniques has not cut into job opportunities.

The strength has gone up from 800 to 1400 over a decade.

Exports totalled Rs. 4.5 crores last year. The Company's share capital was Rs. 79.14

lakhs and reserves and surplus Rs. 822.08 lakhs in 1985. It has been paying 15 per cent

dividend.

According to Dr. Tiagrajan - Managing Director ,

"Kolvilapatti Hills will contribute Rs. 80 crores out of Rs. 100 crores.

I hope the Managements and the Unions of Bombay's Textile Industry will Learn -_a -

Loyal- Lesson !

H. C. PAREKH

P.S.: In view of the Economy Drive, I am not sending individual copies. If you get a

chance to read this on the Notice Board, please tell others.

HUMAN RESOURCE MANAGEMENT - PHILOSOPHY &

PRACTICE OF KONOSUKE MATSUSHITA

November 18, 1986

W – 85

To:

Dear Colleagues

On 10th & 11th, October, 1986, I attended a PHP Seminar on,

PHP lnstitute was founded by Konasuke Matsushita and stands for Peace, Harmony,

Prosperity.

At the age of 92 years, Konosuke himself still takes keen Interest in the working of the

Institute ! He does not have much time or energy now for directing the operations of the

Yen 5 Trillion (Rs.4,190 Crores) Matsushita empire, employing over 1,00,000

employees world-wide in 178 companies - an empire which he started as a small company

68 years ago !

But Konosuke's Human Resource Development philosophy still pervades the

entire organisation. One member of Matsushita organisation is located in Baroda and known

as Lakhanpal National Limited (LNL). Erploying around 700 persons, LNL was set up in

19/3 to manufacture dry-cell-batteries, under the brand name "NOVINO".

In the October Seminar, Mr. Ono, the Joint Managing Director of LNL read a paper

describing how LNL has set-about transplanting the Matsushita Philosophy on the Indian soil

- and in a limited manner proving that, "Human nature is same all around the world and

what motivates a Japanese worker also - and equally - motivates an Indian Worker".

If you wish to find out "what", please read the enclosed paper of Mr.

Ono.

Encl:

APPLICATION OF K.MATSUSEITA'S MANAGEMENT PHILOSOPHY

ON HUMAN RESOURCE DEVELOPMENT IN INDIA

Hajime Ono

Joint Managing Director

Lakhanpal National Ltd.

Firstly, I would like to thank XAL Human Growth Centre and the PHP, for having given

this opportunity to speak before you.

BRIEF HISTORY

I would like to begin by briefly discussing about our Company's growth since its

Inception. Our company, Lakhanpal National Limited, started production of dry cell

batteries in July 1973 at Baroda. It was in the year 1969, that our late Prime Minister,

Mrs. Indira Gandhi, visited Japan. While there she visited the Head Office and one of the

factories of Matsushita Electric Industrial Company Limited and also met its founder

Mr. Konosuke Matsushita. She was greatly Impressed by Mr. Matsushita's business

principles and his philosophy during her visit there. It was her enthusiasm that prompted

Mr. Konosuke Matsushita to provide technical assistance and cooperation In India.

It was in the year 1971, when late Mr. D.D. Lakhanpal (founder of Murphy India Limited)

obtained an industrial licence for manufacturing dry cell batteries. He was In the process of

evaluating various prospective partners to get the technical assistance, when he came

across M/s Matsushita Electric Industrial Company Limited (MEI) of Japan. The late Mr.

D.D. Lakhanpal very much appreciated the business philosophy of MEI, and in return MEI

also thought highly of his ideas and thoughts as an Industrialist.

The project was conceived at the time of Bangladesh War, when long spells of blackouts In

the country led to an acute shortage of dry cell batteries, and turned battery markets Into a

sellers paradise. This temporary boom was reflected In the project report, envisaging 100%

capacity utilisation in 3 years time. But it was too optimistic to be true. Very soon the war

boom was over and we faced stiff competition In the existing market. Factory construction

at Baroda finally began in August 1972.

'NOVINO' — An Unknown Trade Mark

During that time in India It was not possible to register 'National' as a

trademark. Moreover, use of foreign trademarks was also not allowed. Under

circumstances, the company decided to use 'NOVINO' as its trademark.

Another company of MEI in India, i.e. M/s Indo National Limited, also started under similar

circumstances. In other countries MEI established factories as joint

venture or wholly-owned subsidiaries, sometime after products had already been marketed

in those countries under the 'National' label. Thus there was already a strong market

channel and brand awareness existing in those countries. In India, however, due to severe

restrictions on the importation of electric goods, 'National' products were not normally

available In the market place, although many people In urban areas knew

about 'National' and 'Panasonic' products since these were available as smuggled

goods. Yet we could not take advantage of these well known brand names and had to start

with an unknown and new brand name 'NOVINO'.

Duster — An Important Tool for a Salesman

Other than the installation team, four people were dispatched from MEI-Japan for a period

of 2-4 years. One of these persons was responsible for market development. This sales

engineer went to all parts of the country and visited shops personally, explaining the finer

points of our product. During his shop to shop visits, he would introduce himself first and

then start service. He would first try to 'sell' himself Instead of the product, cleaning the

counters in shops and rearranging products for better display. This act of courtesy and

service to the retailer set an example for the Indian Staff Members who

always accompanied him. Even today he is remembered fondly by all concerned. For sales

people this is the most effective and essential part of Personnel training. It is said that our

salesmen's most important tool is a 'Duster'.

Quick Implementation of the Project

The factory started commercial production and put the first consignment on the market

within a year of the stone laying ceremony, i.e. In August 1972, a remarkable achievement

which gained the respect of everyone In the community.

Initial Difficulties But No 'Lay Off'

Even though production started smoothly, sales did not expand according to the planned

projections. We had to face the giants of the Industry of that time, many of whom had a

large market share and a long history in the marketing of dry cell batteries.

Moreover, the oil crisis caused a dramatic downturn in the world economy In the year

1974. The battery Industry in India also had to face a very tough time. Consumption of

batteries declined constantly for a period of 3 years, and. It took nearly 5 years to return to

1973 levels.

In May 1974, we produced only 30,000 pcs., a scant 2-hours worth of production.

The future looked bleak and uncertain, but we knew we had to think of ways to avoid

layoffs, as layoffs would affect the employees and their families most adversely. Despite

the scorching heat in the month of May, everyone went all out to do what they could

to improve the situation. Our female employees carried 2 boxes of batteries, weighing

about 5 kgs. each from house to house in town to sell them. Routes were organised dally In

different parts of the town. On the other hand, our male employees, worked hard on the

open space in the factory premises. They levelled off the uneven ground, laid down a lawn

and constructed a guard room at the factory entrance.

During those difficult days, our people had to bear up under pressures from the outside

community as well. Our factory is situated at N.H. No. 8 and while our people were digging

or levelling land, passerby made taunting and sometimes abusive remarks. But such

remarks were Ignored by our employees who all continued to work as a team, with no

distinction of-class or status. We discovered an immense joy in pooling our efforts to

complete— these tasks inspite of the hardships. This was a most valuable learning

experience for all of us.

If my memory serves me well, it was' in May 1973 that our machines were Installed. May

being the hottest month, it was hard to cope with heat at first. During the first 3-6 months

six people came from Japan to install the machines and to teach and train our staff

members. They took the lead In doing the actual work and spared no effort to educate our

people. The majority of our people in charge of various functional areas today are those

who worked along with the Installation team during those days. I still remember clearly the

greasy black hands and uniforms of these people after a day's hard work.

Language Barrier

One of the problems we faced at that time was that the installation team could converse

in Japanese only a language which was not understood by local staff members. This made

communication very difficult. Moreover, this also created many misunderstandings with the

local staff members. The Japanese installation team applied all its energy to discover ways

to make the job easier and to impart the basic knowledge of dry cell manufacture to

everyone. They concentrated on this even after returning home, which was usually always

after 8 or 9 at night. Their nights were always utilised for planning job for the next day.

Indian Industrial Culture —

A Different Experience

Before we came to India, we were told that people in India want to return to their homes

immediately after work. During my visit to India before the start of Lakhanpal National

Limited I was myself very much surprised to see employees In other factories assembled at

the gate, waiting for the siren to sound so they could go hone.

We were also told that In many industries the persons in charge of manufacturing even

hesitate to personally go to the shop-floors. However, In Lakhanpal National our experience

was different. Whenever It was necessary our people worked overtime, even overnight,

without problems erupting between supervisory personnel and shop-floor workers.

Self Discipline

The responsibility for the discipline of employees in any company rests, I believe, with the

management team.

Since Its Inception our Company has put a lot of emphasis on discipline. In my opinion the

first aspect of discipline is punctuality. In our factory, the first shift and the general shift

begin at 8 o'clock in the morning. Only in rare instances is a person late for work. Most of

our people in the managerial cadre, come at least 20 minutes before the starting time.This

sort of practice, develops an eagerness among the employees to follow the example of their

seniors to work with discipline. Referring back to my earlier talk about developing the lawn

on the factory grounds by our own employees, I would like to emphasise that this was

possible only because the supervisors themselves took a great Interest in these tasks and

set an example for the others by taking the lead in doing the actual work.

During those days, even our staff members in the office, took the lead in

doing the cleaning. They always looked after their own work space and kept it clean by

themselves. Even the chief executive of our factory used a

broom, to clean his work space. Today with the increase in common space, janitorlal service

is provided but the spirit of looking after one's own work space remains.

We at Lakhanpal National Limited do not believe that cleaning Is a low cadre

job and hence. should be performed only by a particular segment of society. We strongly

believe that cleanliness is necessary to ensure good quality and efficiency. It is hence very

important that every one cleans his own machine and his own working area. This creates a

feeling of pride In one's job, one's tools, one's work place, and the company as a whole.

In our factory today, the operators on the shop floor all clean their own machines and work

places Even in our office; we do not have 'menials ', whose only job is to carry files

and documents around. The staff members themselves do these tasks. Even seniors and

supervisors go around to deliver papers and files whenever necessary.

This system helps to improve communication within various departments and also enhances

one's understanding and knowledge regarding the working of other supporting

departments. Moreover, we do not have separate cubicles in our offices for

Managers. Every one works in the open office without invidious distinctions based on status

or type of work.

This helps to achieve better co-ordination and understanding amongst various

departments because every one is familiar with conditions In all parts of the

company

When an employee makes a mistake, except those of a very confidential or sensitive

nature, he is corrected by his superior in the open office in the presence of his

colleagues. This system helps all the other members In the office to be careful and avoid

similar mistakes, thus serving as a method of indirect instruction.

Management by All Employees

Our company, since its beginning, has professed to have a system of

full participatory management or "management by all employees." This, however, docs not

mean that an employee is free to say anything he likes to the managment. He must act and

think within the framework of the declared direction and policy of management.

There Is little merit in merely criticising a particular decision or a duty one has to perform In

his organisation, and less in simply reporting that a problem exists. Criticism and reporting

must be combined with suggestions to solve problems to be meaningful. But for this to

happen. It Is very important that everyone In the organisation be aware of current

conditions in the company and the business environment. Regular 'Manager

meetings', 'Engineer meetings' etc. provide our senior executives with opportunities to get a

clear grasp of the status of corporate operations.

Morning Assembly

Another feature of our company is the daily morning assembly which begins with recitation

of the seven corporate objectives by all employees in unison.

Through the morning assembly each employee reaffirms his commitment to the company

and Its objectives before each day's work. This morning assembly also becomes a. forum

for communication, where different views are exchanged and one gets to know about the

activities of other sections or departments. Since any Individual employee can come

forward In the assembly and speak, the sense of community and solidarity is enchanced.

Furthermore, the monthly production and sales results along with plans for the coming

month are also announced In the morning assembly. 'This helps to

improve communication since all employees come to know about the company's

performance in production and sales well before the Annual Report is published.

In many business circles It is said that details of corporate performance are privileged

information, and should not be disclosed to the work force. But according to our policy, an

employee, being part of the management, has to know the company's record and future

plans, for our policy of "Management by All Employees" to be effective.—Without making

available this kind of information, It would be meaningless to speak of

"Full Participatory Management".—

Policy Announcements

Every year, on the 26th of January, we announce the Company's new annual policy to all

employees. Details of the year's target with regard to production, sales, efficiency and

other areas are made known to the employees. A review of the previous year is also

announced.

It is after the annual policy announcement that each department prepares its own plan in

the light of the general policy. The company does not believe in keeping secrets from its

own employees.

This policy announcement day coincides with Company Day, when employees who have

served the company for long periods and those bearing good records in attendance during

the previous year are commended and presented momentos.

Novino Family

In our Company, we often use the word 'Family'. Once, our employees even formed 'Novino

Family Union' and hence the word "FAMILY" is very much familiar to all of us

at Lakhanpal National Limited.

How would one define a family ?

We understand that a family means a group of people bound together by relations of

unquestioned trust and confidence, like the relation shared between parents with their own

children or a child with his own brother or sister. Similarly, management has, or should

have this trusting relationship with its own employees. That Is what we mean by a

corporate family. Now when we emphasise trust and treat our employees like family

members, how could we keep any secrets from them? Hence even sensitive information

like the latest production and sales figures is disclosed to all employees.

It is due to this relationship that we do not suspect our employee going out of the factory

premises after day's work and hence, we do not have a "body-check" system at the factory

gate. We have yet to come across incidents of employee taking away factory property even

though the practice of free passage has been inexistence for the last 14 years.

Neither do we have the time-card scheme, wherein an employee records the time he

reports for work. We have a system where one simply places his card into an "in box" for

his department. This too has not created any problems for us.

Our company has adopted several control systems, not for the sake of taking precaution

against error but to ensure the maximum utilisation of all social assets — people, money

and many other things - which are entrusted to It by society. To give an example, in each

phase of the productions process our operators keep records, and check the quantity of raw

materials and components to be used as well as the finished products and the unused raw

materials and components at the end of a work cycle. Every month a physical inventory

check is conducted by the Accounts Department which immediately prepares a full

report. The inventory check, therefore, should be seen as a way of making the fullest use

of resources entrusted to the company from society, by clearly stating the results of the

previous month's activity and providing necessary information for an action plan for the

next month ; and not as a system for preventing mischiefs on the part of employees.

Due to such practices, presently our material loss is less 0.5%, and efficiency, over 90%

Q.C. Circles — Suggestion Schemes

Recently, there has been a boom in schemes for promoting employee suggestions

and Q.C. Clicles. In our company this year we are working on 23 circles, some of which

operate in non-production departments, such as the Personnel, Accounts, etc. As for

suggestions, we received on an average of 3.2 suggestions per employee last year. The

most important factor in the success of all these activities is top management's zeal, active

participation and encouragement to employees.

Success In developing Q.C. Circles or suggestion schemes cannot be achieved through mere

imitation of form. Instituting structures and procedures without securing employee

cooperation may actually make the employees lose their enthusiasm for their work.

Because our activity in these fields is in its Initial stages, I feel that, Instead of

asking employees for immediate results, we should strive for still

greater participation by employees, and make sure they have the active

support and encouragement of To? Management. This alone will lead

to ""Full Participatory' management and the benefits thereof.

Communication with Our Employees' Families

Another important aspect of communication is with our employees' families. We have a

house journal — 'NOVINO DARSHAN' — which is published and circulated to all employees

once every quarter. This helps In regularly communicating information about the activities

and performance of the company to the family members of our employees. In addition, the

company organises a cultural programme and the sports meet once every year In which all

employees participate and enjoy together with their families.

Due to a lack of space it is not possible for us to invite as many people as we would like, but

nonetheless around 3000 persons normally attend these functions every year.

Home Visits

Sometimes we find that an employee is forced to take a long leave from work because he

has taken ill or because there has been an unexpected calanity In his home. In these

circumstances, his superior makes 'it a point to visit the employee's house to meet with and

to cheer up him and his family. Except when I have very tight schedule, I also go along on

such visits. There Is no rule In our company with regard to this system. Our senior

executive and managers arrange these visits voluntarily as they consider an employee a

part of 'NOVINO FAMILY'. This system helps In developing a much better understanding

between management and the work force.

There are no barriers separating employees according to grade or rank, and maximum

effort is made to see that there is free and frank communication among all the members of

the 'NOVINO FAMILY'.

Open Door Policy

I am the only one who has a private office, but even so my door Is always open to all. Our

canteen, the bath rooms, etc. are for the use of everyone. There is no special place

reserved for the special few. All employees, including myself eat the same lunch In the

same canteen.

In our factory all employees from the top executives to the lowest rank of employees, male

and female, wear uniforms.

During the early days, many of our employees, particularly females had many reservations

about wearing the uniforms. But now the situation has changed. Even though changing

rooms are provided in the factory, it is a common site now to see employees coming to and

returning from the factory In their uniforms.

When all employees wear a uniform identical in quality and design they have a greater

sense of equality and mutual understanding.

Of course there has to be a clear cut distinction between people with respect to their

responsibilities in the organisation, but there cannot be any sort of distinctions made

among them as far as their humanity is concerned. This is a fundamental principle of our

corporate philosophy and management style. One example in this regard is the yearly picnic

which is organised among our departments. All employees go to a particular picnic place,

use the same transport, sing and play together and share the same food. In short, every

one enjoys the festivities together and without discrimination.

This helps in strengthening the relations between the members of our "NOVINO

FAMILY'. Without a strong bond of truly human relationships, people tend to become stiff

and unable to cooperate with the natural flexibility needed to produce good results.

Our ultimate aim is that all of us should work together until our retirement to create a bright

and fulfilling place to work that we can proudly bequeath to the coming generation.

National Service Through Industry

Our first corporate objective Is 'National Service through Industry'. This does not mean that

our sole concern is to increase sales. Our primary goal is to have our work recognised by

society. If society accepts our work we are sure to receive a reward from it in the form of

reasonable profit.

In turn, this profit allows us to show our gratitude and make a positive contribution to our

society. We are proud to pay our fair share of taxes, for this Is one way which we can

demonstrate our gratitude to the society in which we operate. Moreover, we believe in

doing our best to contribute to the society in other ways. You all must be aware of last

year's drought in several parts of India. The management was approached by our

employees, stockholders and distributors who asked us to help the people affected. We

then decided to supply water to the drought-stricken citizens from late March until

monsoon set in. We did this because we are members of this society, and because we

realise that for a society to prosper each member must be willing to help others in time of

need.

What I want to stress here is that timing is also very important. Of course, huge sum

of money and other articles are required in order to help those in drought-effected

areas. But main point Is to get them as much help as possible in the time of their greatest

need. Realising that after the rain start it would be of no use to carry water to those areas,

we undertook to do what we could to supply water to them.

We didn't undertake this action because of any reward, but were gratified . beyond all

expectations by the enthusiastic appreciation it received.

Employees Training

In our company we emphasise "on-the-job-training" for the new employee. However,

because of a dramatic increase in business around the year 1979, the number of employees

too Increased sharply. Accordingly we felt that 'OJT' alone would not be sufficient and that

we must have a more systematic and organised training system. With this in mind, we are

planning to establish a full-fledged training centre for the employees. When a new

employee is recruited in our company, his Initiation is conducted by the Chief Executive

himself, who personally Informs him about the company policy. Another avenue for the

employee training is 'Off-the-Job Training'. Opportunities for such training are made

available on an average once a month.

Our promotion policy is to encourage promotions from within the organisation. Once an

employee is identified for promotion, he has to select a project theme on which he is to

work throughout the year.

During the course of the year, he makes two or three interim presentations to a team of

Senior Executives to get further suggestion and guidance. After the final presentation, if he

is judged suitable, he is promoted to the next grade.We call this scheme the 'Self-

Development Scheme.—

The important aspect of the 'Self-Development 'Scheme' Is that it requires the employees to

Identify a problem In his own area of work, analyse it In detail and make their best efforts

to solve the problem by taking a systematic approach. In order to achieve his goal within

the prescribed time

limit, the candidate has to make an all-out effort. The candidate who

successfully completes this course develops a special capability to tackle any problem in a

very systematic way.

In the early days, since our total strength was less, it was possible for our senior executives

and managers to train the subordinates directly under them. However, now with the

expansion of our business the work force has increased and we are also dealing with much

higher number of outsiders. Thus direct communications between our managers and nonsupervisory

personnel has declined.

From the point of view of personal development. It Is not enough for an employee to just

pass through the 'Self-Development Scheme'. We also feel it important to emphasise the

development of the individual as a human being.

This we want to achieve by establishing our own 'training centre' and conducting several

educational programmes.

Thus far I have spoken to you about our daily activities and training facilities. I hope this

will serve as a fruitful basis for discussion. We realise that many improvements could be

made in our programmes and their Implementation, and would welcome any suggestions

you might have.

Our slogan this year is 'Create the future by strong follow up'. A plan may be excellent but

until and unless it is followed up with perserverance it will not achieve its goal. In fact the

leader of the organisation or section that should have strongest drive to 'follow up' and see

that plans are implemented.

In conclusion, I would like to extend my sincere thanks to all of you for your patient

attention to my description of our experience at 'Lakhanpal National '.

Thank you

Basic Business Principle Of Lakhanpal National Limited:

To Recognise Our Responsibilities As Industrialists, To Foster Progress And To Promote The

General Welfare Of Society, And To Devote Ourselves To The Further Development Of World

Culture.

Basic Creed Of Employees - Lakhanpal National Limited

Progress And Development Can Be Realised Only Through The Combined Efforts And Co-

Operation Of Each Member Of Our Company. Each Of Us, Therefore, Shall Keep This Idea

Constantly In Mind As We Devote Ourselves To The Continuous Improvement Of Our

Company.

*************

Seven Objectives Of Lakhanpal National Limited

1. National Service Through Industry

2. Fairness

3. Harmony And Co-Operation

4. Struggle For Betterment

5. Courtesy And Humility

6. Adjustment And Assimilation

7. Gratitude

Company's Song

*************

India's Prosperity Through New Industry

We Strive For Production, Work With Energy,

All The Races Live Together Working Side By Side,

Like A Perpetual Fountain We Produce Constantly,

To Develop Country's Industry We Work In Good Harmony, Aim Is Progress Through Co-

Operation

Harmony And Sincerity, Lakhanpal National

**************

H. C. Parekh

RESURRECTION AT GENERAL MOTORS

NOVEMBER 19, 1986

W – 86

To:

Dear Colleague

The Holy Bible tells us Christ returned from the Dead. No eyewitnesses are left but to

millions of faithful around the world, the legend Is true. They believe it to be true.

Resurrection is return of the Life. More than six years ago (Mar .1980), I had an

opportunity to present to a meeting of Policy Review Committee (PRC), our own

Briefly, it comprised ;

"Project Resurrection".

- A lean, trim fighting force (Recruitment Freeze)

- Getting rid of the Dead-wood

- Inculcating a high-degree of discipline at all levels of organisation

- Bringing back the dynamism and the entrepreneurial spirit.

We did introduce a recruitment freeze in 1981 for a period of 18 months and once again we

have imposed a freeze from July this year. But in the intervening period, manpower at

Powai did go up substantially -mostly in the Supervisory" cadre :

As far as

- Deadwood

- Discipline and

Is concerned, there may be a lot to learn from the enclosed article regarding General Motors

(FORTUNE - 10.11.86).

"G.M. is tougher than you think"

If there are similarities in the situations facing our own L&T and G.M. - then these are not

mere coincidences. In their own countries, all relatively large companies face

the same malise of

- paper-pushing bureaucrats

- customer-hating technocrats

So I am not surprised that last year G.M.announced a plan

force by one fourth_ before 1990 !

to trim the managerial work.-

Next in line are 130,000 white-collar workers. And when it comes to shedding

excess fat, G.M, is in good company - with the United Nations (U.N.) - which is planning to

make a 15% reduction in Its staff of 11,423 and reduce the number of assistant and undersecretary

generals from 30 to 60!.

Hearer home, Gujarat Govt. nationalised 12 ''sick" textile mills - and promptly decided to

let 6 of these die a natural death! Of the 21,000 workers rendered surplus, 11,000 got jobs

in the "surviving" 6 mills and 10,000 opted for "Voluntary Retirement'. Not to

be Ieft out, Central Govt. has dispensed with 36,521 workers ( till Sept. 1986) of the N.T.C.

( out of 230,000) under the labour rationalisation scheme in 120-odd textile mills. But

the lesson that G.M. is learning - the hard way, perhaps, - is that "surviving" is not

enough ! A company has got to revive - get resurrected. In the 20th century however,

must ". company wait till its competitors hang it from the cross before it thinks of

"resurrecting" ltself ?

And if there are any happy-go-lucky complacents anongst us, I request them to study the

following picture of our slackening productivity -drive :

H. C. PAREKH

COMMUNICATING WITH GOVERNMENT

INDEX

Sr. No.

TITLE

1 Industrial Relations Perspective

Communicating with Government

INDUSTRIAL RELATIONS PERSPECTIVE

September 4, 1981

To:

Dear Mr. Government,

We are happy that we got an opportunity to discuss with you and your colleagues on

27 th August 1981, the matter of deteriorating Industrial Relations Climate in our country

with special reference to the city of Bombay.

As made out in our letters of 11 th August and suring our discussions, the Ministry of Labour

has decided to ‘conduct an in-depth study of growing violence’. We have ourselves had a

limited experience of violence, but the seeds of violence are likely to be present in any

organisations. I would therefore, like to record my views on the presence of such seeds.

My thoughts have been illustrated in the enclosed paper.

I have also summarised the conclusions of the situations in the end of the above said paper.

I hope, you would find the information useful for your study. I would be happy to hear your

views on my paper. I would also like to receive a copy of your final report as and when

ready.

As far as I can determine violence in industrial situations have occurred due to the following

reasons:

1. Apparent conflict of interest between the workmen and the management.

2. Inter-Union rivalry for the power to control the workmen and to be in a position to

bargain with the management.

First, we must examine what are the interests of the workmen and the interest of the

management. Then, we may examine, if these interests are conflicting in nature. Obviously,

the management wants the company to grow and remain profitable. I suppose, this is also

what the workers want and therefore, there is no conflict here.

The conflict starts on the issue of the employees share of prosperity of the company. The

question that has remained unresolved so far is:

What is the respective contribution of the labour and the management in the prosperity of

the company.

Then, there are others who also have a share in the prosperity of the company, i.e.

The share-holders, the society and the consumers.

Through intricate laws of sales-tax, on excise, octroi, corporate taxes, etc. the government

representing the societyhas already determined its own share. In most of the companies

neither the workmen nor the management consider it necessary for the company to go

beyond these statutory obligations and share its prosperity with the community or the

society at large in terms of health care, education, rural development etc. This is largely a

voluntary effort on the part of a few enlightened organisations. Even in this case, how much

to share with the society, is largely an unilateral management decision where workers do

not have much to say.

As regards the society and the shareholders, there has not been much dis-agreement

between the workmen, management and the government. They are being rewarded

according to fairly established traditions for the risk capital they made available for running

the organisation.

The consumers, by and large, are a forgotten lot. A very few managements (and none of

the Unions) have bothered to protect the interest of the consumer. Under highly protective

market conditions, most of the managements have been able to sell whatever they produce

of whatever quality and at whatever cost. In their unholy anxiety not to allow an uit to turn

‘sick’, the givt. Has encouraged inefficiency. Such units, when made to dole out huge wage

increase under pressure from the unions, have merrily passed on the burden to the

consumer through increase product prices. The Indian consumer has not yet learned to

protest and the Union and the Management have not yet learned to care!

If we now examine the workers aspirations (interest) we may find some clues to the causes

of the conflict. The worker aspirations can broadly be divided as:

i) physical needs

ii) mental needs

physical needs themselves have two components – i.e. the short-term and the long-term.

The short-term physical needs primarily centre around earning the cost of living for onself

and one’s family. This would include food, clothing, shelter, education, entertainment etc.

These needs manifest themselves in demands for better wages and higher bonus.

For the employee himself, the short-term needs at the place of work are better working

conditions.

The long-term physical needs comprise of:

i) improved standard of living

ii) retirement benefits

Whereas, there can be no dis-agreement on the rights of the workmen to unite and bargain

collectively with the management, the fulfillment of the physical needs, the question to be

asked is:

- can a group of individuals be allowed to take mote out of society than what they give to

the society?

- If this is allowed to happen, wealth cannot be created. It is only when each section of the

society gives more to the society than what it takes away, can the societal wealth increase?

Under any other conditions, only some can live a better life at the cost of impoverishment of

the lives of many others.

From the foregoing, it has become clear that any increase in the wealth of the society

directly depends upon similar increases in the individual and the collective productivity.

What, therefore, a group may be allowed to take out from the Society should be determined

exclusively from the increase in productivity of that particular group over a period of time.

For the share in the prosperity brought about through increased productivity, must always

be after the productivity increase has taken place and not before. This is the crucial

principle of sharing the prosperity of an organisation by the people involved.

Whereas, productivity-based collective bargaining has become an essential feature all over

the industrialised world, this has been sadly lacking in our country.

On the one hand, there are thousands of small-scale manufacturing organisations

employing 10/ 20 workmen where gain of all the productivity is cornered by the owner

manager. On the other hand there are hundreds of medium and large scale organisations

employing between few hundreds to few thousands workmen where the Unions have been

able to extract wage increase far in access of any increase in the labour productivity and

sometimes, even when the labour productivity has actually fallen! And all of this, under the

threat of strike and closing down the organisation. These are the ‘high-wage islands’ where

exploitation of reverse kind is taking place!

One can apportion some of the blames for this sad situation to the Management; to the

Government – the management for having given in under such threats and the Government

for having failed to protect the management against such unreasonable demands.

The system of dearness allowance to neutralize the rising cost of living was first introduced

in our country more than 40 years ago. The DA system has taken deep roots in our country

and has become an inseparable part of the compensation structure; but, does it have to be

element of compensation plans even for completely new undertakings coming up in

backward areas of the country with no traditions if industrial employment? Can we not

encourage these units to do away with the DA system and instead have an annual wage

increase directly linked with the actual increase in the physical productivity of the work force

during the preceding year?

As far as the existing manufacturing units are concerned, the least, we could do is to ensure

that the long-term wage agreements which are negotiated once in 3/ 4 years are strictly

based on physical productivity improvements achieved during the preceding period. I have

particularly chosen to express productivity I terms of ‘physical output per person’ so as not

to be mislead by the improvements in ‘sales turnover per person’. This is because any

number of companies have managed to substantially raise sales turnover by simply

increasing the selling prices of their products even when the real physical productivity of the

organisation continued to decline.

To implement the proposal outlined by me above, the Government should ask each

manufacturing unit to submit for consideration by the Government as well as the Union, its

proposal for the measurement of physical productivity of the unit and the proposed linkage

of the future long-term wage increases with the improvements in the productivity of its

work force. To my mind, it is unimportant whether the Government and the Union accepts

the management proposal in toto. What is important is for all the parties concerned to

accept the principle of ‘creation of wealth before sharing the same’. It is only thro’ such a

scheme that we would be able to come out of the vicious circle of the wages and the prices

chasing each other.

In a country where once upon a time ‘work and worship’ that situation today is that

workmen want to have more and more wages for working less and less. This erosion of

work ethics is the most serious matter before the nation today. If productivity linked wage

increases and restore some of the work ethics, we would have won a major battle against

inflation. If our trade and industry have to survive in the world arena against fierce

international competition, we must be willing to reward efficiency and stop worrying about

the inefficient units which have to close down. This is because our responsibility as a nation,

does not end with worrying about the present work force. We must necessarily worry about

the millions of able bodied jobless persons who cannot even secure one square meal per

day. What kind of social justice is that where an unskilled worker getting Rs. 800 per month

is allowed to agitate militantly for a wage increase of Rs. 200/- p.m. whereas, for every one

such person employed, there are 100 outside the factory gate who cannot get a job even for

Rs. 200 p.m.

As far as the mental needs of the workmen are concerned, these are primarily in relation to

the job satisfaction and the status participation in the process of management brings. So

far, this aspect has not become an issue of collective bargaining – not at least in our

country. Managements should however, ignore this at their own peril! If managements do

not come forward with satisfactory schemes of worker participation, time will come soon

when these items also become matters of collective bargaining. At the same time, I strongly

believe that this is not a matter that should be legislated and I would earnestly request the

Government to keep away from framing any laws in this regard. A genuine desire for

allowing worker participation in the process of management should come voluntarily from

the Managements and arising out of fundamental conviction.

I enclose herewith:

Some slides on the subject which illustrate my own concept of how this model should

be built and implemented.

We may discuss this in some more detail should you so desire.

The foregoing are my thoughts on the subject of ‘collective bargaining’

As far as ‘Go-slow’ is concerned, I agree that it is worse than a strike. Given a willingness

on the part of the state Labour Commissioner, it should not be difficult for him to establish

whether a management’s complaint of go-slow is valid or not. All that he needs is to request

the management to furnish daily/ weekly production recored, of six months preceding the

period of go-slow and compare the same with similar figures for the period of go-slow. The

Union may be allowed to cross examine the management in the presence of Labour

Commissioner with regard to such other inputs as availability of raw materials, electricity,

manpower, machinery etc. The outputs for both the periods should be of course, in the

physical unit only. Once the Labour Commissioner is satisfied that a go-slow has actually

taken place, he should be empowered to direct the Union and the workmen concerned to

step up the output to an average of the monthly output of the preceding six months and

simultaneously authorise the management for a pro-rata reduction of wages for a period of

the go-slow, till such time the normal production is restored. I do agree that the solution

may not be as simple as I have tried to make out. However, given a desire on the part of

the Government to get rid of cancerous disease which the life of many an industry, it should

be possible to find a more acceptable solution.

In closing, I would only like to add that sooner the Unions, the Managements and the

Government realise that ever-increasing labour legislation is not the solution to the problem

of strained industrial relations, the better it would be for all concerned. Possibly, we already

have more labour laws on our statutes than any other country in the world! If labour laws

by themselves could ensure harmonious industrial relations, our industrial society should be

the object of envy for the rest of the world! What we find in reality is actually the opposite.

All these laws have incessantly talked about the ‘rights’ of the workmen and how to protect

these rights. If we must have one more law, it is high time, it is about ‘the duties’ of the

workmen.

Whereas, all of the foregoing are my strictly personal views, we at L&T have tried to move

in the direction indicated therein. Over the years, we have had a strong internal Union of

educated workmen.

Under the constructive guidance of Bharatiya Kamgar Sena lead by Shri Dattaji Salvi, the

worker-leader have been responsive to some of the thoughts expressed earlier.

I also enclose herewith:

a) a write-up from our internal house journal – Powai Pageant

b) translation of an interview with Mr. Dattaji Salvi which appeared in Mumbai Sakal

dt. 7.8.81.

The Sun Rises In The West / Opinion

Introduction

Opinion re : “The Sun Rises in the West”

Even at the best of times, communicating, effectively is a difficult task. Whereas most

managements are willing to spend huge sums of money for public relations and advertising

– which is communicating with the external world – they are quite reluctant to spend time

or energy talking to their own employees.

Whatever little “talking with” that takes place, is done during times of trouble, such as a

strike or a lock-out or a go-slow.

I am therefore happy that the Chamber decided to bring out this monograph consisting of a

few selected employer-employee communications regularly being sent out by

Mr. H. C. Parekh in the past 7 years, to 7,000 employees of the company he works for.

I do hope this will encourage some managers to initiate an on-going dialogue with the

employees of their companies.

Mr. N. M. Desai

President

Bombay Chamber of

Commerce & Industry

February 10, 1987


A word about this book

This publication is very unusual in the sense that, for the first time, a compilation of

messages from a General Manager to his staff-supervisory as well as unionised workforce -

has been made, and this will perhaps be considered unconventional for a Chamber.

However, in the pages that follow are contained excerpts from circulars and other such

material which highlights a manager’s attempts to try to establish a continuous wave-length

with those working in his organisation. It was felt that this effort deserves to be bought to

the notice of members and others who have been greatly concerned with the imperative

need to evolve a healthy human relationship in a mechanical environment. The ideas and

observations contained in these articles are Mr. Parekh’s and in bringing out this book the

Chamber has merely tried to act as a vehicle of information dissemination, notwithstanding

the fact that these messages were initially intended for the workforce in a single member

company.

B. P. Gunaji

Secretary

Bombay Chamber of Commerce & Industry

February 1987


Author’s Preface

Indian companies love to complain about the intransigence of their workers. How many

managements realise that lack of communicating with their employees could be the root

cause?

If this nation has to find a way out of the atmosphere of confrontation prevailing in the

industrial relations climate, a few hometruths will have to be understood. These include

- new forms of co-operation will be required

- steady blurring of classic employer/ employee relationship

- talking to employees (in a paternalistic manner) mostly when there is a crisis of

some kind will just not do.

Time is running out and a revolutionary process of “attitude change” has to be introduced.

Governmental legislation on the cards will give employees more say in the participative

process. Do we want to wait for this? Why have a situation where management is

“SUSPECT” and where workers are “WARY”? Why wait for a confrontational situation, be it a

strike, lockout, go-slow, suspension of operation, or closure?

Managers will have to do some direct and plain talking to the employees not only on

bargainable issues but on ALL issues which affect the company and

therefore everyone working in it. We have to do this day-in and day-out; when the going is

bad and when it is good.

This monograph comprises a select list of articles (both in MARATHI & ENGLISH) which I

have issued to our employees over the last seven years. The message which I have tried to

convey is ,

“The traditional role of the union (using collective bargaining power) to get wage increases

and turning a myopic eye to the company’s problems, does not help. If company’s

profitability and productivity both go down, both, the management and the unions are faced

with a series of unpleasant options. Actual case studies from all over the world serve to

bring out the need for taking employees into confidence at the earliest. This should not be a

‘fad’ but a continuous process.”

H. C. PAREKH

General Manager (Powai)

Larsen & Toubro Limited

February, 1987

A. Industrialists/ Executive

Naval H. Tata

Dear Mr. Gunjali,

Many thanks for your kind thought in sending me a copy of the Chamber’s Monograph

entitled ‘The Sun Rises in the West’.

I just had a glance at a few pages of the book and find that an attempt like this has not

come a day too soon. I am glad that someone is thinking about such soul-searching

exercise, in order to make our people conscious of our defaults in the direction. I shall

certainly peruse it with interest in due course.

With kind regards,

Naval H. Tata

Tata Sons

April 7 1987

Century Rayon

My dear Mr. Parekh,

I am in receipt of your booklet The Sun Rise in the West. The publication of this monograph

is laudable and would prove to be a good vehicle for communication with the employees. I

particularly found your treatise on “Workers Participation in Management”, “Cost

Reduction”, “Creating More Job” and “Productivity” very interesting and useful. I would

suggest that such booklets should be published in Marathi and Hindi languages also.

I am retaining this booklet for use in our Library.

Thanking you very much for sending this booklet and with warm regards,

Durgesh Chandra

Joint President (works)

Century Rayon

29 April 1987

The Premier Construction Company Ltd

Dear Mr. Parekh,

“The Sun rises in the West” – Monograph is ‘fantastic’ right from the title till the last line!

Hearty congratulations to you and compliments to Bombay Chamber.

It is very well written, short and with substantiating examples and figures; thus makes it

convincing.

Would it be possible to have Marathi copy of the same ?

Would your permit some organisation to publish it in Marathi and Hindi?

Once again I appreciate your contribution to the field of I.R. through the above publication

and other activities.

Kind regards.

Arvind R. Doshi

Managing Director

The Premier Construction Company Ltd

20 th April, 1987

Hindustan Motors Limited

Dear Mr. Parekh,

Thank you very much for your recent letter. I am most appreciative of your wishes.

I am pleased to know of your new assignment as General Manager (Planning &

Development). I am sure, you will achieve continuing success in this strategic position at

L&T. Concurrently, I must sincerely compliment you for your innovative and highly

successful initiatives in the key area of employee-employer relationship. The booklet “The

Rises in the West” is a fine illustrative example of this approach.

I shall look forward to meeting you when next in Bombay.

V.R. Sinha

Executive Vice-President

Hindustan Motors Limited

27 th May, 1987

Kelvinator of India Ltd.

Dear Mr. Parekh,

I am in receipt of your booklet entitled “The Sun rises in the West”. I find the booklet very

interesting. It would be a nice idea to have all your circulars in a book form so that many

readers would benefit from your vast experience in the field of management.

With kind regards,

G. C. Narang

Chief Works Executive

Kelvinator of India Ltd.

19th May, 1987

Guest Keen Williams Limited

Dear Parekh Sir,

Thank you for letter of 20 th April together with a copy of “The Sun Rises in the West”.

The booklet is very good and thought provoking.

With kind regards & best wishes.

P.R. Bapat

Guest Keen Williams Limited

14 th May 1987

Ambalal Sarabhai Enterprises Limited

Dear Hemandrabhai,

I am very thankful for sending me your booklet – “The Sun Rises In the West”.

The compilation is unusual and very interesting. You have exposed a new dimension. I

personally feel you should bring out a Marathi, Hindi and a Gujarati publication as it could

be very valuable in areas where industrial relations is one of the major area of management

concentration.

With best regards,

M.N. Parikh

Ambalal Sarabhai Enterprises Limited

May 26, 1987

Dalal Engineering Pvt. Ltd.

Dear Mr. Parekh,

Sub : ‘The sun rises in the west’

Let me at the same time thank you for sending me a copy of the above booklet as also

congratulate you on the imaginative and praise worthy work done by you. I am sure that

your efforts will certainly help to change the thinking of L&T workmen. Apart from the fact

that your approach would be generally useful as a means of effective communication with

the rank and file, I find the carefully collected data of great interest.

In the reprinting which I am sure will be required, may I suggest that some of the

abbreviations (e.g. US on page 8, DR on pages 17 and 39 and ECD on page 55) be

elaborated through an asterisk for the ready reference of outside readers. The inadvertent

omission of date on page 30 can also be looked into. About your query on Marathi version, I

feel it would be better to get the feedback from workers themselves other than from people

like us. Presumably, L&T workmen all know English. I am not personally sure whether

circulation of this booklet to workman of other companies would prove productive. Perhaps,

it may do only for the leading companies where again, most workmen know English. To my

kind, the booklet would be most useful for educating management on the other. As regards

workers, perhaps it may be useful only to a limited extent because of the natural suspicion

of workers representative in regard to such matters. However, the only way of finding out is

trying out in practice and I am sure that some friends will make the attempt and give

feedback to you.

With renewed congratulations and hopes for similar imaginative material from you side in

the future.

Nalin Dalal

Dalal Engineering Pvt. Ltd.

April 28, 1987

National Organic Chemical Industries Limited

Dear Mr. Gunaji,

This has reference to your letter GC-416 LAB/IND/SSAI-494 dated 9 th April 1987 and I

would like to say that I have immensely enjoyed reading Mr. H.C. Parekh’s book, “The Sun

Rises in the West – A Managerial Viewpoint”. Please convey my congratulations to Mr.

Parekh on having dealt so effectively and entertainingly with a difficult subject. May I also

add that Bombay Chamber has performed valuable service in bringing about wider

readership of these excellent articles.

Enclosed is the Questionnaire sent with the above referred letter.

With kind regards,

R.V. Adarkar

National Organic Chemical Industries Limited

April 29, 1987

Indian Rayon & Inds. Ltd.

My dear Mr. Parekh,

I have read your monograph, THE SUN RISES IN THE WEST. It is highly informative and

inspiring.

If you happen to come to Fort side, I request you to kindly meet me. We can have lunch

together. Kindly inform me or my secretary on telephone No. 202 6023 or 202 3946 to say

when I could expect the pleasure.

With kindest regards,

B.L. Shah

Director

Indian Rayon & Inds. Ltd.

May 14, 1987

Special Executive Magistrate

Dear Shri Parekh

The Sun Rises in the West

I have now perused your above book. It makes indeed very interesting reading and some of

the examples that you have cited really go home.

You have put in a lot of effort preparing this book, but I am sure, it has been really

worthwhile.

Mohan Patel

Patel Extrusion Ltd.

Special Executive Magistrate

19th August, 1987

Jyoti Limited

My Dear Mr. Parekh

I am in receipt of your Circular letter dated 20 th April, 1987 along with a copy of your

booklet “The sun Rises in the West”. Thank you for sending this to me.

I have gone through the booklet hurriedly and I must say that the ideas presented are very

good. I would like to give this booklet to Personnel Managers of several of our associate

companies. I therefore request you to send me six copies if it is possible.

Nanubhai Amin

Chairman

Jyoti Limited

22nd May, 1987

D. K. Sheth

Dear Sir,

I read your Book “ The Sun Rises in the West” and very much pleased. I am a student of

Cost Accountancy & your Book gave me a good knowledge to think in the direction of

production & productivity.

Your said book was given to me by our General Manager Mr. J. H. Shroff who was a General

Manager of GKW Screws & Fastner division at Bhandup.

On page 14 you have given a list of 10. I would like to add some more.

1) Going to toilet very often & waste more time.

2) Wasting more time for Break Fast.

3) To run behind the Supervisiors to tell the faults lying with Production facilities &

not to try to overcome the same.

4) To get involved in other matters say social or welfare activities.

5) Giving excuses for opposite shifts.

I may be wrong in pointing out the above points.

If you are writing any other book on the same subject will be definitely welcome by the

readers.

D. K. Sheth

21st May, 1987

B HR Managers

Simens Ltd.

Dear Mr. Parekh,

Thank you for sending me your booklet “The Sun Rises in the West”. Your efforts at direct

communication with unionized work force and supervisory staff in very simple language

must have enabled the L & T Management to establish better understanding on the

corporate goals. You are very right that time is running out and its incumbent on

Managements to initiate the revolutionary process of changing attitudes to make

organizations viable and successful in the turbulent time that is ahead of us.

I compliment you for producing this monograph for Bombay Chambers of Commerce. You

deserve all credit for the initiative taken by you for your company in starting so meaningful

a process of communication and also producing this booklet for BCCI

Will you please arrange to send six copies for us.

S. D. Pandit

Simens Ltd.

28th April, 1987

Phillips India

Dear Sir,

As desired, we enclose our opinion with regard to your Questionnaire Ref. 87.

Questionnaire Ref :- 87

ABOUT THIS BOOKLET :

1. Relevance of subject Excellent

2. Quality of contents Moderate

3. Lucidity of presentation Moderate

4. Clarity of thought Moderate

5. Size of the book Just Right

6. Get-up of the Cover Poor

7. Size of Print Just Right

8. Neatness Good

9. Overall Readability Good

Yours Faithfully,

D. P. Guha

Manager

Phillips India

28 th April, 1987

Cyanamid India Ltd.

Dear Mr. Parekh,

Let me congratulate you on bringing out an excellent material in the booklet “The sun Rises

In the West”.

Communication to the employees at all times is a point which you have stressed once again.

After reading the entire book, one feels that you should not have stopped at the last episode

“Catch them doing something Right” and I consider this as a success wherein readers feel

that something extra is still missing from the Author.

S. B. Karmarkar

Manager ( Personnel & Administration)

Cyanamid India Ltd.

16th April, 1987

Premier Automobiles Ltd.

Dear Mr. Parekh

Talking - IT - Over

Kindly accept my thanks for sending me a copy of your booklet titled “The Sun Rises in the

West” and accept my congratulations.

You have done humane services to the managers in the Industrial Relations Area and hope

that in future also you will continue doing the same.

The book is very interesting, so I am sending the same to our Managing Director Shri J. M.

Vakil.

As majority of the workers and worker’s representatives in Maharashtra State is Marathi

speaking, it will definitely be a welcome suggestion to bring out Marathi version of the book

and as soon as it is ready kindly send me a copy.

If this is a priced publication, please let me know the cost

some copies.

as I am interested in buying

Wishing you good luck.

R. P. Medhekar

G M ( Industrial Relations)

Premier Automobiles Ltd.

28th April

Stanrose

Dear Sir,

Please refer to your circular No. GC-416 LAB/IND/SSAI-494, dated 9 th April 1987, sending

therewith a copy of monograph titled as above, for perusal and comments.

The monograph brings out succinctly the importance of and role played by “communication”

in developing workforce particularly in a big organistion. These are practical lessons and not

theoretical discussions found in text books. The only doubt which lurks in my mind is

whether some of the communications were not beyond the comprehension of the unionized

staff. If, however, a good section of such staff is educated and/or knowledgeable, the

purpose will be served. Congratulations to Mr. H. C. Parekh and Bombay Chamber of

Commerce and Industry. I forward herewith my comments in the prescribe form.

P. M. Mantri

General Manager ( Personnel)

Stanrose

28th April, 1987

Tata Engineering and Locomotive Company

Dear Mr. Parekh

I have gone through your booklet “ the Sun Rises in the West”.

It does make a very interesting reading. It would not be a bad idea to publish this

information in a book form. As regards bringing out its Marathi version, I wonder what has

been the feedback to all of your circulars which you have included in the booklet. It

appears that the circulars were issued in English and as such they may not have reached

the rank and file.

I find that you have included circulars right form 84 to 87. thus, during the period of 3

years, you must have had some feedback from the employees. Based on that only one can

decide whether you should published it in Marathi also, The point at issue is how much

credibility management enjoys with the employees. In the absence of reasonable degree of

credibility, such information is more likely to be misinterpreted than be accepted in its true

spirit. I admire your style of writing circulars which is most appealing.

V. D. Mehrunkar

Dy. General Manager (HR)

Tata Engineering and Locomotive Company

18th May, 1987

Shakti Insulated Wires Private Ltd.

Dear Sir,

Your book “THE SUN RISES IN THE WEST” published by Mr. B. P. Gunaji of Bombay

Chambers of Commerce & Industry was read by me with interest.

I compliment you for the same and will you please let me know whether Marathi publication

of this book is available as I am interested in circulating it among my workmen.

In case your articles are coming out periodically, I will be glad if you put me on your list of

circulation.

I have been trying to telephone you since a week but in vain.

Thanking you,

Yours truly

Mrs. FJ JHAVERI

Sr. Personnel Executive

Shakti Insulated Wires Private Ltd.

14 th May, 1987

C Professional Bodies/ Trade Bodies/ Educational Institutes

Indo-American Chamber of Commerce

My dear Gunaji,

Sub : The Sun Rises in the West – A Managerial Viewpoint By H. C. Parekh.

Thank you for your letter I/220/1416 dated April 13, 1987, forwarding a copy of your

monograph.

The monograph appears to be an excellent publication and after going through it I am

returning your questionnaire duly completed.

Once again many thanks for remembering to send us the copy.

With kind regards,

Yours sincerely,

Frank V. D’souza

Indo-American Chamber of Commerce

23 th April, 1987

Confederation of Engineering Industry

Dear Mr. Gunaji,

Thank you very much for sending me a copy of the monograph by Mr. H. C. Parekh on the

above subject. I did have the opportunity of going through this monograph in detail and

may I offer my comments for whatever it is worth.

As a manager, one never does have control of more than a part of the communication

process. Paradoxically, the part to which we have direct access diminishes as we rise in the

organization.

Subordinates will begin to tell you only what they think you wish to hear, your policies will

probably be amended somewhere within the sub culture and eventually will loose access to

the ‘grapevine’.

Mr. H. C. Parekh, in this monograph has proved this wrong. He has cleverly used the

labyrinthine nature of communication which can be exploited to earn more consent for ones

policies and affect the faster distribution of ones messages. The sooner we start talking to

each other, the sooner we can stop talking at each other. In one word the monograph is

‘excellent’. I only wonder why it was titled “The Sun Rises in the West”.

Best regards,

Your’s sincerely

Mohan Murti

Regional Director

Confederation of Engineering Industry

22 nd April, 1987

The Employer’ Federation of India

Dear Sir,,

“The Sun Rises in the West – A Managerial Viewpoint”

The Bombay Chamber of Commerce & Industry, a constituent of the Federation, has

brought out a Monograph entitled : “ The Sun Rises in the West – A Managerial Viewpoint”.

The publication has been written by Mr. H. C. Parekh, General Manager – Powai Works,

Larsen & Toubro Limited, Bombay.

The book is a compilation of messages from a General Manager to his staff which endeavors

to fill the information gap between management and workers.

The publication is priced at Rs. 20/- per copy. Members desirous of purchasing the above

Monograph may directly obtain the same from

Bombay Chamber of Commerce & Industry

Mackinnon Mackenzie Building,

Ballard Estate,

Mumbai – 400 038.

V. B. Mahatme

Secretary

The Employer’ Federation of India

20th April, 1987

PHD Chamber of Commerce & Industry

Dear Shri Gunaji,

We acknowledge with thanks receipt of your letter No. 1/220/1416 dated 13 April 1987,

alongwith a copy of an excellent monograph titled “The Sun Rises in the West”.

I have read the book with great interest and strongly feel that a good start has been made

by your Chamber as the dissemination of this sort of information would help in bringing

together the management and the workers. I feel the need of the hour is to generate the

feeling of oneness between the employer and the employees as the prevailing tendency of

confrontation between the two would not be advantageous to either side. I must appreciate

Shri. Parekh’s excellent way in which he has penned down the imperative necessity of

establishing harmoneous relations between the two important segments, on which depends

the growth and prosperity of any organisation. It is indeed an educative pamphlet and I

trust shall be widely read.

M. L. Nandrajog

Secretary General

PHD Chamber of Commerce & Industry

3 rd June, 1987

The Bombay Millowners Association

Dear Shri B. P. Gunaji,

Sub : The Sun Rises in the West – A Managerial Viewpoint by H. C. Parekh

I have received your letter No.J/220/1416 dated 13 th April, 1987, along with the copy of the

above monograph.

It is a ‘communication’ which builds up understanding which helps to effective action for

achieving the set goals. It is indeed an excellent publication on this vital aspect of

communicating effectively. I am thankful to you for sending a copy of the monograph.

Yours faithfully

M. S. Sanikop

Secretary

The Bombay Millowners Association

21 st April, 1987

National Productivity Council

Dear Shri Parekh,

Please accept my hearty congratulations on your book “The Sun Rises in the West” which

has been published by Bombay Chamber of Commerce & Industry.

I would like to convey you that this booklet is an excellent one and I have started informing

about this publication to all the personnel from industry. I once again state that this

excellent publication which has been written by you.

With kind regards,

Yours sincerely

M. K. Bobde

Regional Director

National Productivity Council

28 th May, 1987

Indian Institute of Management

Dear Mr.Parekh :

Thank you very much for a copy of the booklet “ The Sun Rises in the West”.

I have glanced through the book and found it

congratulations and best wishes

extremely useful. Please accept my

N. R. Sheth

Director

Indian Institute of Management

22nd May, 1987

Shri Ram Center for Industrial Relations & Human Resources

Dear Mr. Parekh,

Thank you very much for your kind letter of April 20, 1987 with which you have sent to me

a copy of your booklet entitled “The Sun Rises in the West”.

I have read the booklet cover to cover and have found it quite interesting. The booklet is full

of important facts presented in a lively but quite forcefull manner. The message is loud and

clear : Employees (particularly their TU representatives must recognise the fact that higher

productivity is the only way to avoid industrial sickness, which hurts not only industry but

also the workers in the long run.

You are indeed on a sure footing in pursuing the above line of reasoning. None of us from

the academic world and certainly and no one from the ranks of management can disagree

with either your facts or your interpretation of those facts. The larger volume that you have

in mind will probably contain more of the same or similar facts. I am sure that book too will

be just as interesting as the present booklet, at least for those who agree with its message

as I do.

The only drawback I see is this : The message of your letters reflects the stance of

management and there is no attempt to highlight the point of view of labour. While you are

perfectly justified to take this stance for communicating with you employees, such an

approach in a book (which is meant for a wider population) is likely to limit its readership.

You may, therefore, like to identify the segment of the reading public and then address the

book to that segment.

Once again I thank you for sending to me a copy of your booklet. May I take this

opportunity to inform you that my latest book bases on research study of 51 Indian

organisations has recently been published by the Sri Ram Centre. The enclosed brochure

will give more details about the book.

With kind regards,

Dr. Baldev R. Sharma

Professor of Industrial Relations

Shri Ram Center for Industrial Relations & Human Resources

13 th May, 1987

Corporate Management Services

Dear Mr.Gunaji,

I must thank you for sparing considerable time during my visit to your office on 9 th of last

month.

I have since gone through the excellent publication of the Chamber : The Sun Rises in the

West – The Managerial Viewpoint by H. C. Parekh. It is indeed an excellent compilation of

Mr. Parekh’s letters to his staff. It is a splendid example in persuasive communication

between managers and workforce. In fact, Mr. Parekh seems to be a model chief of a vital

area in an industrial organisation, namely, Human resource. I must say, these circulars are

highly instructive in that they explain in simple lucid language the importance of enhancing

productivity to keep costs and prices low and to increase earning and employment.

I must congratulate you and the Bombay Chamber for bringing out these circulars to the

attention of managers in other organizations. By this publication, the Bombay Chamber has

provided an impetus for undertaking similar efforts in other organizations in order to keep

the staff and workforce informed and willing to contribute their best for their organizations

P. Srinivasan

Corporate Management Services

5th May, 1987

D Authors

M. K. Rustomji

Dear Mr. Parekh,

Very many thanks for your kindness in sending me your book ‘The Sun Rises in the West”,

which I have just seen on my return from a long lecture tour in northern India.

I am going to look forward very much to reading your book. I am sure – like all the things

you do – this book will also be of a very high standard.

It was a very great pleasure for me to have met you in the U. S. Club the other day, with

some of the other officers of L&T. May I again congratulate you on your initiative for taking

your officers out of their usual environment to discuss matters concerning their work and

their organization.

Again many thanks for your kindness in sending me your book ‘The Sun Rises in the West’.

Yours sincerely,

M. K. Rustomji

27 th April, 1987

Author - "L&T Story"

Dear Heman,

Thank you for sending me the note and the reflections that you have shared with your

colleagues and I need hardly say how interesting the enclosures are. I have not yet quite

decided in what form I should explicate the specific adventures in which you have been

engaged over the years in L&T. The format of the book as it emerges makes me feel that

your part in L&T should be woven in an out of the narrative scattered across the book. This

would have the advantage of putting these vital inputs in the context of the whole. On the

other hand I am also torn with the need to fulfill my own enthusiasm for this unique

contribution by making it a separate chapter exclusively handling the philosophy of

participation. I can well believe that the spirit of this approach which you have objectified

and made into policy must have been inherent in L&T over its history because of the style of

work of its first partners. But I find I am somewhat hobbled in writing a separate chapter on

account of not having a historical run down of its evolution. I have the facts but do not

possess the cementing tissues. I don’t know how to get it. If I can get it I would put it as a

separate chapter in the book. Otherwise it would be prominent but not quite so emphasised

as I would like it to be.

With highest regards and best wishes.

Raghava R. Menon

Author - "L&T Story"

23 rd July, 1987

E Government

Minister of state for Education

Dear Shri Parekh,

Received your booklet “The Sun Rises in the West” along with your letter dated

20 th April,1987.

I will send my views hereafter. It would be better to bring out the Marathi-version.

With kind regards

Sincerely yours,

Hasmukh Patel

Minister of state for Education.

26 th May,1987

Industries, Energy and Labour Dept.

Dear Shri Gunaji,

I am in receipt of your letter dated 13 th April, 1987, enclosing a copy of book “The Sun Rises

in the West” by H. C. Parekh.

I have glanced through the book and I find that it is an interesting exercise in industrial

communication.

With regards,

Yours sincerely,

S. G. Kale

Secretary (Industries)

Industries, Energy and Labour Dept.

22 nd April, 1987

F Misc

D.D. Bhutda

Respected Sir,

I congratulate you on compiling a nice booklet. I want to purchase the booklet. But as the

address for getting the booklet has not been published. I therefore, request you to inform

me the address for getting such a nice booklet i.e. “The Sun Rises in the West – Managerial

vice point” or if possible please sent it by VPP at the above address.

Thanking you,

D.D. Bhutda

14 th April, 1987

Indian Forest Service

Dear Sir,

During a course at Maharastra Institute of Development Administration Pune, I had privilege

to go through the aforesaid monograph and found it quite useful.

It would be my pleasure to have the copy of the same.

Thanking you,

Akshey K. Bisaria

Indian Forest Service

15.10.1987

Mineral Exploration Corporation Limited

Dear Mr. Parekh,

I am indeed highly thankful to you for forwarding a copy of your book “The Sun Rises in the

West”. I found it so interesting that I went through it in one go.

I rarely read a book the second time. But for the first time, I went through this publication

once more, yesterday evening.

I immensely liked its simplicity, lucidity and directness of approach. To put my comments in

as few a words as possible, it is simply that –

“I wish I had done it”

With warm regards,

N.C. SHEKAR

Chief Geologist

Mineral Exploration Corporation Limited

2 nd April, 1990

G

Press – Report

TIMES OF INDIA

Book on communication with employees

The Bombay Chambers of Commerce and Industry has published a booklet entitled “The sun

rises in the west – the managerial viewpoint ” discussing how best could the relations be

established between the management and employees in an industry. The 56-page booklet,

priced Rs.20, is in the form of a monograph consisting of a few selected employer-employee

communications sent out by Mr. H.C. Parekh, general manager (Powai), Larsen & Toubro, in

the past seven years.

It is felt that those who are in need of evolving a healthy human relationship in a

mechanical environment could benefit from the compiled communications in this book

highlighting the manager’s attempts to try to establish a continuous wave-length with those

working in his organisatoin.

TIMES OF INDIA

Date of opinion letter : 13.4.1987

Closing Remarks

Dear Readers:

While going through this book, you would have noticed that the central theme of my

dialogue with L&T employees was :

Ø How to increase Productivity [ in terms of physical output per man-hour, at

constant prices ]

Ø How to reduce costs of Inputs [ Manpower – Materials – Machines – Money –

Management etc ]

Within these, my focus was on reduction of “ Manpower Costs “ [ wages – salaries ]

I even suggested changing the traditional / ingrained , concept of ,” 100 % Neutralization of

the rise in the Cost of Living “ through linkage of DA ( dearness allowance ) with ever-rising

CPI ( consumer price index ) – month after month

But, where I could not succeed in convincing the Unionized employees of the logic behind

this concept, L&T did implement it when it came to its very Senior employees ( charity

begins at home ) !

The following “ Salary Growth Data “ of a group of retired Deputy General Managers /

General Managers of L&T,( exchanged among themselves many years after their

retirements, around year 2005 ), would convince you.

Much as I would have liked to share such data with all the employees at Powai Works as a

part of my drive to “ Share Company data transparently to all employees “ , I could not

since I did not have access to such data in 1982 !

But ( ironically ? ), Union Leaders had access to all of these data since their members

worked in L&T’s Central Personnel Department !

If you are a HR Manager, you may want to install such a software in your MIS (

Management Information System ) which displays such graphs on your dashboard, for each

group of your employees ( Unionized – supervisory – Officer – Manager – General Managers

etc ), on a continuous basis

That is relatively easy part

Far more difficult would be to convince your MD / CEO / Chairperson that trying to hide data

from Union does not work . On the contrary, it produces distrust !

With regards,

Hemen Parekh

www.hemenparekh.in

27 March 2021

First Image : Tabulation ( Annual Average Salary Increase During Service )

ANNUAL AVERAGE SALARY INCREASE DURING SERVICE

Name

Year

of

joining

Start salary

(Rs./Month)

(A)

Year of

Retirement

Salary at the

time of

Retirement

(Rs./Month)

(B)

Difference

(Rs.)

(B-A)

Length of

Service

(Years)

(C)

Average

Salary

Growth

(Rs)

(B-A)/C

WD 1972 2500 1996 19250 16750 24 698

NK 1956 350 1995 17700 17350 39 445

SP 1977 3000 1995 13270 10270 18 570

SM 1971 1600 1994 16900 15300 23 665

DM - ? - 11555 - 22 -

KB 1971 2700 1992 10300 7600 21 362

CH 1948 135 1991 7700 7565 43 176

HP 1959 625 1990 9985 9360 31 302

AD 1972 2500 1989 6000 3500 17 206

FV 1965 1400 1988 7500 6100 23 265

Second Image : Graph ( Annual Average Salary Increase During Service )

Third Image : Graph ( Salary Growth over Service Period )

List of some popular blogs on www.hemenparekh.in [ From May 2017 to March 2021 ]

Srl

No

1

2

Blog Title

Thanks Supreme Court for hearing my PIL

Summary of E-Mails to Cabinet Ministers > SELF EMPLOYMENT / GIG

ECONOMY

No of

Views

102

219

3

Small Steps for Small Firms ? Not enough

270

4 Supreme Court is Angry : and rightly so ! 224

5

6

7

8

9

10

11

12

Elon Musk : We offer a GREEN CARPET

Co-WIN 2.0 : Taking Shape

A Battery Breakthrough ?

Congratulations, L&T,

How about “ Sandbox for Mobile Voting “ ?

Voting and Vaccination : Compare and Contrast

Fastest Finger First ?

GAFA ( aka Monopoly V 2.0 ? )

250

228

240

382

192

245

181

186

13

A Greed-Ship named Facebook 195

14

15

Dear Shri Goyalji : How about a Solar Cooker ?

Rationing of Covid Vaccine ?

158

281

16

17

18

A Case of Conflicting Concerns

Unlocking Lockdown : Calibrated – Gradual

Mobiles for Tracking Corona Movements ?

198

210

212

19 231

20

21

22

23

24

25

26

27

28

29

30

31

Marriage of Technologies to contain Corona ? Yes !

MAD goes to Mandi

Congratulations, Shri Surjit Bhallaji,

Disruption : The New Survival Strategy

Ready to revolutionize Retail [ 3R ] ?

Data becomes an Air Molecule : Free to travel anywhere

Microdot Technology : A solution in search of a problem ?

Cash Deposit Machine [ ATR = ATM V 2.0 ]

Health Data Vault

The Biggest , FREE , Desalination Plant : Sun + Sea

Who is afraid of the Big Bad Wolf ( aka LIBRA ) ?

Thanks , Shri Piyush Goyalji

207

329

250

173

160

188

168

118

232

172

168

218

32 Needed : a Service Liability Act 343

33

34

34

35

36

37

38

39

40

41

42

43

44

45

46

NITI V 2.0 : a Concept Note

Traffic Congestion ? Finally, a solution in sight ?

Who needs Fulfillment Centres [ FC ] ? Not Reliance Retail

Census 2021 : an Unprecedented Opportunity

India’s Population Census Form

Simple Summary of Sankalp

Far ? A long way to Run ?

RERA : a case of UnReal Estate / UnReliable Builders ?

E- Bus : without ETA [ Expected Time of Arrival ] ?

Pigovian Tax for Polluters ?

100 % verification of VVPAT ? No problem !

Of Electoral Bondage ?

Water above our heads

VVPAT ? How about EVBAT ?

The Future of TV Viewing ?

215

215

242

286

196

184

181

232

202

384

224

195

251

233

622

47 What will win the War ? 191

48

49

50

51

52

53

54

55

56

57

58

59

60

61

62

Bulk Data Sharing / Selling Policy ?

A Grass-Root Revolution

Mobility on the Move - Finally

Innovating in Negotiating ?

FAME II > FAME III > FAME IV

A Home for Ram

In China : It is “ Comply or Quit “

Digital Dividend from Demographic Data [ 4 D ]

SARAL

Influence farmers and win Votes ?

Organizing the Unorganized

Data is the New Oil

Weave a Wondrous World [ W3 ]

Who watches the Watchmen ?

National Clean Air Tax ? – a Pigovian tax ?

277

255

484

444

233

167

223

1202

863

198

282

262

209

230

191

63 Dark Side of Democracy 415

64

65

66

67

68

69

70

71

72

73

74

75

76

77

78

Astonishing Estonia

Thank You Madam Maneka Gandhiji

Will China rule the Sky ?

Transport : an Integrated Logistic Plan ?

Only Answer : a Statutory Warning

Making Water from Air ?

Internet Bill of Rights

Justice delayed is Justice Denied

MA = DA x 4,000,000 ?

Data Privacy Law : a Pandora’s Box ?

#EV #ElectricVehicles #EESL #WetLease

Parekh’s Law of #Privacy ?

#Aadhar #Privacy #DataProtectionLaw #Surveillance

#BPO #IBPS #DigitalIndia #LiFi #WiFi

#WiFi #LiFi #Broadband #Internet

187

198

258

858

308

508

468

590

268

515

614

401

477

484

474

79 Scam ? #EESL #NDA #BJP #MNRE 559

80

81

82

83

84

85

86

87

88

89

90

91

92

93

Artificial Intelligence to fix MP / MLA Salary ?

NaMo’s Achilles heel ?

Car Grave-Yard of World ?

Let Us go Dutch !

Aadhar Fact : Privacy Fiction ?

EV juice from Alu-Air Battery ?

PRIVACY : A Lost Battle

Black Money : Solution at last

Data Protection without Data Privacy ?

Miracle of Self Employment

Over-qualified : Under-Skilled : Un-Employable ?

Electoral Bonds for Transparency ?

Bitcoin : Illegal in India

What is holding back ?

469

622

426

543

553

511

1030

979

708

321

425

671

807

702

94 7 Pillars of Data Protection Law 514

95

A Swarm-O-Drone is born

500

96 #UrbanTransport #FasTag #Pollution 777

97

98

99

100

To Buy or not to Buy ?

Privacy For Sale

2024 ! – V 2.0 of Orwellian 1984 ?

From ELON to ION

519

664

599

1079

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