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Commitment of top management to productivity pre-condition for dev
Productivity Improvement enables enterprises to acquire competitive edge and generate surpluses to make contribution to social development and economic self sufficiency, reports UNB.
This was viewed in a con-lerence-cum workshop on "Productivity Consultancy' at a local hotel yesterday, organ ised by Productivity Services Wing (PSWI of Bangladesh Employers Association (BEA)
Speakers said productivity drive at the national, sectoral and enterprise levels, and genuine commitment of the top management toward productivity growth are prerequisites for rapid economic de velopment of a country.
SpealAng on productivity status in Bangladesh. Dr Hafiz GA Siddiqui said the average productivity is low which is partly reflected in the growth rates of both GDP and per capita GDP
Dr Siddiqui. Professor and Academic dean of North South University, said the GDP growth rate during 1985-93 had averaged at hardly more than four per cent which is less than that of Nepal. India. Pakistan. Bhutan and many other developing countries.
"It is true that labour cost is relatively low in Bangladesh. But It is equally true that labour productivity Is also low To say productivity is low is to admit that cost of production Is high.' Dr Siddiqui said.
He said tliere arc many factors that contribute to the productivity growth. A major source of producUvity is technological innovation complemented by improved human capital embodied In skilled labour.
The capacity utilization, man machine-technology ra turns. the level of education and training ol the supervisors managers and entrepreneurs, employer-employee relations, and exogenous factors like efficiency of transport system, power supply government bureaucracy. etc may directly or indfrecUy affect productivity, he wMBVk
Dr Siddiqui sild mismatch Iretween wage and productivity adversely affected Bangladesh's external competitiveness and its ability to implement its export-oriented growth strategy
Referring to a survey on seven public sector units. Dr Siddiqui said in many cases wages had been rising at a much faster rate than productivity sinct 1985.
According to the World Bank, the low labour productivity in public sector could be traced in three reasons. First, past hiring policies have led to excessive increase in the size of the labour force, and hence a decline in output per worker.
Secondly, poor manage-’ ment practices have often resulted in an inefficient use of human resources. Thirdly, ageing capital stock, outdated
technology and shortage of raw material and spare parts lower productivity the World Bank wnd
National Project Director of PSW ol BEA Habibullah Khan. UNDP Assistant Resident Re presentatlve Richard Dictus, BEA Member SA Azim. (LO Director Johannes Lokollo ^nd Professor of Economics of No rth South University Dr Salah-uddin Ahmed were among others who also spoke at the conference.
ILO Director Johannes Lokollo said productivity improvement is not only an 1m-portapt long-term acuoq for the success U organisations and individuals but iqafSU'h M tai programme for national de vefopment.
Productivity is not only an
economic or technical Issue but also an individual s state of mind Improving public aware lies* among managers and small entrepreneurs Is a must to enhance productivity. Loko llo added
piloting from a report of the Rome Conference. Dr Salah uddin Ahmed said productivity is above all. an altitude of mind. It seeks to continually Improve what already exists
Productivity la based on conviction that one can do things better today than yesterday. and better tomorrow than today. Further, it requires never-ending efforts to adapt economic activities to ehang i ng conditions, and apply new theories and methods. It ia a firm belief in the progress of human Ix-ing^ he added