Tuesday, June 21, 2011

Possible causes of productivity problems in India (More of Kerala)

Macro Issues

Micro Issues

Economical

· Inflation / recession

· Excessive defense spending

· High Energy prices

· Subsidies to inefficiency

· Imbalanced wealth distribution

· Government too high a percentage of GNP

· Unhealthy ratio of export to import

· High technology cost

· Unaffordable cost of living

Agriculture & Industry

· Insufficient /ineffective research and development

· Exploitation of farmers

· Lack of developments in product quality

Governmental

· Inappropriate and impractical legislations

· Bureaucratic delays

· Enormous paper work

· Governmental waste

· Low government productivity

Societal

· Discrimination based on caste, religion and language

· Wasteful habits

· Dishonesty and corruption

· Frequent family conflicts

· Transition from joint family to nuclear family

· Increasing crime rates

· Unhealthy public habits

· Rioting tendency

· Lack of constructive politics, resorting to mud slinging

Education

· Irrelevant curriculum

· Not appropriately linked to career and occupation

· Lack of commitment and efforts from tutors

· Lack of facility and amenities

· Excessive thrust on criticisms and analysis

· Lacking creativeness, construction and synthesis

Health

· Undernourished / unhealthy diet

· Stress

  • Frequent incidence of epidemics

Labour force characteristics

· Low education standards

· Adversarial relations with private sector

· Poor work ethics

· Pilferage

· Tendency for strike and Unionism

· Insensitivity and indifference to the management

· Lack of loyalty to the organisation, business and occupation

Psychological

· Lack of motivation to achieve

· Low self esteem

· Improper communication styles

  • Irrational cognitions

Organisational

· Insufficient / Obsolete machines & plants

· Misfit staff

· Faulty structure

· Discouraging and oppressive culture

Business

· Ventures without mission, vision, strategy and resources

· Lack of understanding about market needs and market segment

· Unfair pricing

· Too much dependence on foreign technology & know how

· Short term focus

· Inappropriate risk taking

Management

· Inattention to operations

· Inattention to quality

· Excessive analytical management

· Resource wastages

· Inattention to human factors

· Excessive executive pay

· Lack of synergistic relation with vendors, suppliers and customers

· Attempt to dominate other management functions

· Adversarial attitude towards unions

· Excessive attention to legal issues and paperwork

· Resistance to change

Unions

· Insensitively asserting union rights

· Featherbedding (getting paid for services not performed)

· Rigid job classification

· Adversarial attitude towards management

· Pay greater than productivity

· Keeping output low deliberately

Employees

· Preference for leisure time

· Resistance to change

· No pride in workmanship

· Poor work ethics

· Focus on pay and wages than on work

· Improper utilization of wages earned

· Self centeredness and tendency to take bribe

· Unhealthy habits

· Attitudinal problems with work

· Laziness, negligence, indifference, arrogance

Productivity

  • Classical definition: Productivity is the ratio of output to input. Productivity means that more is produced with the same expenditure of resources.

  • According to Bernadine, H.J and Kane, J.S (1993) Performance appraisal: A contingency approach to system development and evaluation.

Effective performance (productivity related) at the individual or aggregated level can be defined according to six criteria.

The most effective employees or work units are those providing the highest possible quantity and quality of work at the lowest cost and in the most timely fashion, with a minimum of supervision and with a maximum of positive impact on co-workers, organisational units and the client/customer population.

  • Another conceptualization posits simply effectiveness and efficiency, with effectiveness defined as meeting or exceeding customer requirements and efficiency defined as meeting those requirements at the lowest cost possible.

Contributed by

Sasikanth R Prabhu (November,2002)

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