Why Indians do so badly in India: Frankel

[Sanjeev Sabhlok <sabhlok@almaak.usc.edu>]

'India must change its management practices' 
===========================================

>From Hindu:
http://www.webpage.com/hindu/daily/980409/02/0209000h.htm
 
Date: 09-04-1998 :: Pg: 15 :: Col: e 

By R. J. Rajendra Prasad 

HYDERABAD, April 8. 

There is nothing wrong with the Indian worker or Indian equipment, but
there is need to change management practices to help the worker to become
more productive. This was the theme of Prof. Ernst G. Frankel, Professor
of Engineering & Management, Sloan School of Management, who was in
Hyderabad to address a seminar organised by the Engineering Staff College
of India. 

In an interview to TheHindu, Prof Frankel, who worked as Consultant to
shipyards and shipping companies on fleet planning, ship acquisition and
ship investment, including to the Nava Sheva port in Mumbai, spoke of his
views on managing technological change.

Question: Do you agree with the view that the experience of Asian Tiger
economies cannot be replicated in India because of our special conditions?

Prof Frankel: I disagree. India is different in most respects from most
other countries, but its workforce is intelligent. I worked as a
Consultant for the Port Authority of Singapore where most of the workforce
is from India, and they seem to be doing very well. It is not the people,
it is not the equipment, but it is the management that is the problem. In
a Port, you employ cranes to load and unload ships, and operation of
cranes cost 190 dollars an hour. At Nava Sheva port, I saw the cranes
lying idle from 11.30 am to 1.30 pm and I asked why, and the reply I got
was that the workers require a lunch break.

I suggested that they should double the workforce and deploy two teams to
man the cranes. Again I found that the cranes were idle during lunch time,
because both teams were taking lunch break at the same time. You have to
create a different management climate to run these things.

I can assure you that 90 per cent of foreign trade is going to Sri Lanka
because of the manner in which these port operations are managed. Your
country is losing $ two billion of business just because of this problem.
The most common assessment is that India has a shortage of capital and
surplus of manpower while the West has a reverse scenario. 

How can we cope with increasing mechanisation of operations replacing
labour? 

I disagree again. India has sufficient capital and adequate access to
capital elsewhere to finance growth. India has still the World's highest
tariff structure. 

India has not opened its economy to the World. Indian management is
diffident to get involved. One of the important things is to change the
whole structure of Indian workforce.

In Singapore, the worker is a decision maker. Here in India, nobody trusts
a worker. Here a worker is motivated to take the first step, then he is
required to await instructions from the top as to the second step. If you
have to get the best from your worker, you have to trust them. You have to
make them feel that you are counting on them.

The change required in Indian situation is obviously in the overbearing
control of the bureaucracy. Nothing can be done in a situation where the
management itself becomes a stumbling block. Job training is recognised
world wide as a necessary input to progress and development. 

In India, capital is being used to build monuments instead of productive
assets. This attitude has to change. Primary education should be given
priority because illiterate people are difficult to employ. It does not
cost a fortune to provide basic education.

What do you suggest we do to bolster our economy? 

You have to remove all barriers for trade, welcome foreign capital and
help the Country to develop. Look at China. They have developed a small
island off the mainland called Bartem where they have provided
infrastructure, removed all barriers and invited the big players such as
General Electric and Casio to build their plants. 

There is another tiny island called Sohgo, 17 sq. kms. in extent, off
Shanghai. They have developed this island as well, with a single window
clearence for all infrastructure. India can plan to develop one of the
islands in the Indian ocean for this purpose, or just a place in the
mainland. 

The progress that Korea, Singapore, Hong Kong achieved and now what China
is planning to achieve is through this route of development.