Productive Workers
Productive workers factors responsible for Pakistan’s economic collapse include the abandonment of large multinational companies due to an unfavorable business environment and lack of foreign investment. Local entrepreneurs are also reluctant to set up production facilities.
In the 1960s, considered the golden age of the country’s industrialization, foreign companies established a manufacturing industry there. The companies already operating in the country have expanded their activities.
The organizations run at that time, such as Esso Corporation and ICI, achieved their production goals by working with full commitment. The productivity of native productive workers was comparable to that of their counterparts in other countries.
In 2000 as well, Pakistan’s labor productivity exceeded that of China and India. The decline began as productive workers in the other two countries improved their skills and their companies adopted advanced technologies.
Pakistan’s workforce lacks skills and a strong work ethic.
Employee productivity is calculated on the basis of production as a percentage of GDP. It is determined by dividing the latter by the total number of production hours. For example, if a country’s GDP is $100 billion and production hours are $4 billion, productivity is $25 per hour worked. A highly productive workers economy will be able to produce more goods or services with the same amount of resources, or the same amount of goods and services with fewer resources.
Compared to the labor force in developed countries, the Pakistani workforce lacks skills and has a strong work ethic. Increasing employee productivity in companies brings benefits: more profits for entrepreneurs; higher wages and better working conditions for productive workers and higher tax revenues for the government.
Due to the lack of trust between employers and employees, the former are reluctant to invest in the productivity of their workforce. Low wages and inadequate social benefits lead to both avoidance of responsibility and a long-term lack of commitment.
The corporate culture also influences the working environment and the behavior of the employees. The culture of the company has been formed over a long period of time, mainly thanks to the values and leadership style of the management.
In progressive organizations, senior managers set the standard for the job through their expertise, effective leadership, and commitment to achieving set goals. Employees see them as role models and reciprocate them with equal enthusiasm in order to achieve the expected level of performance.
On the other hand, public company executives generally only want to achieve a minimum goal. This behavior demoralizes employees, who ultimately disregard their leadership and develop a lethargic approach to their job responsibilities, negatively impacting overall productivity.
Among others, the following employer initiatives can improve employee productivity when management works together to achieve success.
- a) There are typically large gaps in the financial incentives that organizations offer to their top managers and lower-level employees. Since the ultimate responsibility for implementation lies with the former, it is entirely justified to grant them attractive salaries and allowances.However, for lower-level employees to participate fully in the success of the organization, monetary incentives should enable them to live comfortably. This factor has had a very positive impact on the employees at Exxon Productive Workers Chemical’s fertilizer plant in Daharki. Management in New Jersey was also surprised by the performance, which far exceeded expectations. Unlike other organizations, union activists performed their duties as did the rest of the workers.
b) Employees must be trained for the work in which they participate. Most mechanics and operators work with little experience and do not have the opportunity to improve their skills through additional training.Employers don’t seem to realize that by investing in the training and skills development of their employees, they will see greater returns through increased productivity. Productive workers in China and Europe stand out from their Pakistani counterparts in terms of efficiency because they are properly trained and certified for the job.
- c) In addition to education, access to technology and the ability to use it effectively is essential to productivity. In the absence of technology, only traditional tasks can be performed, but as the world moves towards new and sophisticated value-added products, technological expertise is essential.
Work productivity management is one of the most important elements of modern business management and indispensable to remaining in the game.