Understanding the crucial productivity factor
Friday, 7 November 2008
Saiful Haque
BANGLADESH is a country blessed with a large workforce, known for its diligence. However, in today's world, economic progress does not depend only on a large number of willing workers, although this can be an advantage in lowering production costs. Only having an abundance of workers does not guarantee competitiveness, specially in the export-oriented industries. Bangladeshi entrepreneurs need to increase the 'productivity' of their workers to survive competition and retain market shares in the competitive international market. Quality output from trained workers translates into more competitiveness.
Our entrepreneurs, specially in the readymade garments (RMG) must adequately give importance to this key factor. The authorities concerned recently urged the enterprises in the country's textile sector to become more competitive by mainly making the work-force more productive in every sense.
The workers in India and China, in some cases, produce more and better quality apparels in less of time. This should alert the Bangladeshi readymade garments (RMG) entrepreneurs and the workers alike. It is not for nothing that that RMG industries in those countries became more competitive by producing more and higher quality products in less of time. This has been possible because the operators of the RMG industries in these countries took pains to improve the productivity of their workers.
It seems that Bangladeshi entrepreneurs in general are lagging behind in both understanding the productivity issues and training up their workers adequately to these ends.
On their part, the workers do also need to appreciate the imperatives for enhancing their productivity. The employers will try to provide the best possible remuneration for the efficient and productive workforce.
All concerned do need to keep it in mind that low wage costs, in nominal terms, do not mean gains in trade efficiency. The wage structure has to be considered in the light of workers' productivity. That makes a rational economic sense.
BANGLADESH is a country blessed with a large workforce, known for its diligence. However, in today's world, economic progress does not depend only on a large number of willing workers, although this can be an advantage in lowering production costs. Only having an abundance of workers does not guarantee competitiveness, specially in the export-oriented industries. Bangladeshi entrepreneurs need to increase the 'productivity' of their workers to survive competition and retain market shares in the competitive international market. Quality output from trained workers translates into more competitiveness.
Our entrepreneurs, specially in the readymade garments (RMG) must adequately give importance to this key factor. The authorities concerned recently urged the enterprises in the country's textile sector to become more competitive by mainly making the work-force more productive in every sense.
The workers in India and China, in some cases, produce more and better quality apparels in less of time. This should alert the Bangladeshi readymade garments (RMG) entrepreneurs and the workers alike. It is not for nothing that that RMG industries in those countries became more competitive by producing more and higher quality products in less of time. This has been possible because the operators of the RMG industries in these countries took pains to improve the productivity of their workers.
It seems that Bangladeshi entrepreneurs in general are lagging behind in both understanding the productivity issues and training up their workers adequately to these ends.
On their part, the workers do also need to appreciate the imperatives for enhancing their productivity. The employers will try to provide the best possible remuneration for the efficient and productive workforce.
All concerned do need to keep it in mind that low wage costs, in nominal terms, do not mean gains in trade efficiency. The wage structure has to be considered in the light of workers' productivity. That makes a rational economic sense.