Mr. Sorabji is the General Manager (Production) at the Alfa Paste Company Ltd., based in Pune. His company produces pasting products like gums, adhesives, pastes etc. the company enjoys a good image in the market due to superior quality of its product. Last year, the company’s turnover was Rs. 120 crores, which is almost 40% of the total market turnover.


The company’s labor union is very strong and affiliated to a State-level political party. All the employees of the company are members of this union. 20% of these employees (having served the company more than 30 years) are very loyal, productive and cooperative. Other employees have deliberately lowered their productivity and have been only fighting for their due and undue rights. The company is yet to link productivity with wages. Hence, productivity is seriously getting neglected. Reduced productivity has now increased the cost of production and affected the company’s ultimate profitability.

Mr. Sorabji is seriously thinking on certain ways and means to improve group and individual productivity. He intends to convince the employees that improvement in productivity does not mean excess work for the employees. Productivity growth can also be proportionately rewarded, so that the efficient employees are adequately encouraged to maintain improved performance results.

Different practices, monetary and non-monetary incentives, training programmes, literature and discussions are to be carefully designed to improve productivity in the company. Qualitative aspects of productivity are also to be carefully looked into. Behavioural or attitudinal aspects of productivity improvement are to be taken into account, before introducing any particular method for improving productivity. Legal provisions of the labor lawas should also be studied in relation to compulsory maintenance of average productivity.

Any improvement in productivity is expressed to be permanent. The Indian work-philosophy should be of great advantage, to bring in such permanent growth in productivity. Innovative ideas, change in system and operations would also give good improvement in productivity.


Discuss various techniques for improving the individual and group productivity inside and outside the factory premises.


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