Increase in Productivity Movement in

India: Reasons and Objectives

Increase in Productivity Movement in India: Reasons and Objectives!

The productivity movement has been on in India for a long time. With a view to increasing
productivity of different segments of the economy, the Government of India has been making
systematic efforts especially since independence. There is no denying the fact that various
developed countries of the world viz., U.S.A, U.S.S.R. and Japan etc., owe their present
status to increased productivity.

Ours is a developing economy. In order to achieve the desired targets of production and to
ensure proper allocation and utilisation of available resources, productivity plays an
indispensable role. There are many other reasons emphasizing the necessity of increased
productivity in India.

These reasons are:

(a) To ensure higher living standards to people.

(b) To increase per capita income.

(c) To decrease production costs.

(d) To increase exports.

(e) To ensure overall development and prosperity of the economy.

(f) To help in increasing labour efficiency.

First systematic attempt after independence for improving productivity was made by Dr.
Krish Pennathur, an International Productivity Adviser and the late Russel Currie of the
United Kingdom. They established a new discipline termed as ‘work study’, whose main aim
was to improve productivity.

Work study cells became an integal part of the establishments of army based workshops since
1955. The defence services and ordnance factories took early initiative and lead in adopting
productivity techniques. The industries in India were slower in adopting productivity
measures.

On the invitation of the Govt, first International Labour Organisation Productivity Mission
came to India in 1952. The second mission came in 1054. Both the missions examined the
working of some of the textile units of Bombay and Ahmedabad and Engineering units of
Calcutta.

On the basis of the studies the missions pointed out that if workers in India are given proper
supervision, it can improve their functioning even if they are not properly trained and
equipped with productivity improvement methods and techniques.
The missions further emphasised the necessity of forming National Productivity Centre in the
country. The Government accepted the recommendations and constituted a National
Productivity Centre under the Ministry of Labour.

Another systematic attempt in the way of improving productivity was to send certain
delegations in the foreign countries to study productivity techniques prevalent in those
countries. One of such delegations was sent under the leadership of Dr. Vikram Sarabhai in
October, 1956 to Japan.

The delegation submitted its report in 1957 recommending the establishment of National
Productivity Council represented by the representatives of employers, employees, technical
experts, consultants, researchers and the Government Later in 1957, a seminar under the
chairmanship of the Minister for Industries at that time, was organised to study the problems
relating to productivity. The seminar was organised on the recommendations of Dr. Vikram
Sarabhai.

The most important landmark in the history of productivity movement in India is the
establishment of National Productivity Council. The council was established in January, 1958
and was registered under the Societies Registration Act in February, 1959. The council is an
independent autonomous organisation having sixty as the maximum number of members
comprising eleven from employers, employees and Government.

The remaining members comprise technicians, researchers, consultants and consumers. The
first meeting of the council was held on 22nd March, 1958 and certain important decisions
were taken in that meeting. The objectives of the council were clearly laid down.

The objectives are:

1. To create and develop the concept of productivity consciousness among the people in the
country.

2. To make arrangements for training of managers at every level of management.

3. To undertake research with regard to various production processes.

4. To make arrangements for the services of experts on the requisition of local productivity
councils.

5. To send delegations to developed countries to collect and study information with regard to
increased productivity .

6. To invite experts on productivity from other countries to make use of their expert
knowledge and services.

7. To impart various productivity services with a view to having maximum utilisation of

available sources viz., men, money, materials and machines.

8. To ensure higher and better living standards to the people.

9. To conduct various seminars on different subjects relating to productivity.

10. To create a positive productivity atmosphere in the country by developing harmonious
employer—employee relations.

The main objective with which the national Productivity Council was formed is to make
productivity a way of life in the economy. National Productivity Council also helps in the
formation of local productivity councils. There are forty nine local productivity councils. The
main office of MPC is at Delhi and there are nine regional Directorates at Ahmedabad,
Bangalore, Bom.bay, Calcutta, Chandigarh, Gauhati, Kanpur, Madras and Mew Delhi.

A committee called Productivity Survey committee was constituted in March, 1958 to review
the progress of productivity movement in India. This committee was established by National
Productivity Council.

During the Five Year Plans also systematic efforts were made by the Govt., of India to raise
productivity. It was especially after first year plan during 1954-55 when a productivity team
from the ILO (International Labour Organisation) came to India to study productivity
problems.

Certain important institutions viz., Central Statistical Organisation, Indian Technical Institute,
various research institutes operating in different universities and National Sample Survey
etc., are rendering valuable help for increasing productivity. At the same time, certain
international organisations viz. International Labour Organisation, Asian Productivity
Organisation etc., is also rendering valuable services for increasing productivity.

The years of 1966 and 1982 were celebrated as Productivity Years in India and the motto was
‘Grow more, consume Jess, waste not’. In order to popularise the significance and necessity
of productivity various seminars and meetings were organised.

In the words of Shri A.N. Saxena, Director-General, National Productivity Council, “The
year 1982 was observed as the productivity year. I can only say that in the last 25 years, there
is a visible change. Earlier people asked ‘what is productivity’, now they want to know how
they can achieve higher productivity and what they can do. Secondly, considering the very
fact that the Prime Minister and the country have recognised the importance of productivity
and the year 1982 declared as the Productivity Year—I think NPC can claim to have made a
modest contribution to this high achievement and high recognition.”

It may be pointed out here that though there is need for a sustained effort to improve
productivity through proper utilisation of resources and there is need for caution too. We
cannot follow the examples of the U.S.A. or U.K. blindly for their efforts are on conserving
manpower.

India faces no labour shortage; what we require is trained personnel and a “productivity”
which generates employment. We can go in for semi-mechanisation, but more importantly
the emphasis should be on better utilisation of existing plant and materials, saving on fuel,
power and industrial gas.

Another aspect that must be borne in mind is that working harder or faster does not yield high
productivity, for there is the risk of errors and, moreover, the aim is to reduce exertion. Early
education and training in the importance of productivity and its role in a healthy society will
form the infrastructure for future development. A critical evaluation system would be the
right step for productivity.