Title: Productivity improvement

Mr$.$ Arun Mathur is the General Manager at Diamond Textiles based at

Ahmedabad. The company produces terry towels. The company enjoys a good

image in the market due to superior quality of its products. Last year the

turnover of the company was $120$ crores which is almost $40\%$ of the market

turnover.

The company$$s labour union is very strong and is affiliated to state level political

party. All the employees of the company are members of this union. $20\%$ of

these employees having served the company for more than $30$ years. The

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 being neglected. The reduced

productivity has now increased the cost of production and affected the

company$$s profitability.

Mr$.$ Arun Mathur is seriously thinking on certain ways and means to improve the

individual productivity. He tends to convince the employees that improvement in

productivity does not mean excess work for employees. Productivity growth can

also be proportionately rewarded so that 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. Behavioural or attitudinal aspects of productivity

improvement are to be taken in to account. Legal provisions of the labour law

also need to be studied in relation to compulsory maintenance of average

productivity.

Questions:

$1.$ Discuss various techniques, which can help Mr$.$ Aru Mathur?

$2.$ Mr$.$ Kumar, Personnel Manager, is fancy about the idea of outsourcing.

Discuss advantages and disadvantages?