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Productivity Bargaining quality, continual pressures on the management when there is drop in the earnings due to non-availability of raw

materials, and breakdown of machines. Taking these precautions, payment by results system' can be introduced through collective agreement to generate high level of productivity from the employees. Care should be taken to avoid setting payment levels which are extra~agant and which might provoke resentment from the employees employed in neighbouring industries or from the employees working iri the same organisation not covered by the incentive system of payment. 7. Spread-over of Wage Increase: Whenever large increases are justified, they should be spread over a period of time or alternatively, they should be in the form of non-recurring lump sum payment. Higher increases given might raise expectation for future increases, which cannot be fulfilled depending upon the capacity and. market conditions. 8. Mobility of Worker and Job Enlargement: Labour productivity can also be increased by increasing the amount of flexibility, mobility and interchangeability between the .various categories of workers. Workers should agree for transfer from task to task as the flow of work changes. If such transfers require operators to work in higher paid jobs or even in a lower paid job, they should be willing to do so. Job enlargement should be introduced for increasing labour versatility and flexibility. 9. Other Economic Issues: Productivity can be increased by working intensively, working in a better organised way and increasing or introducing capital equipment. Plant and machinery should be used intensively to raise productivity. Labour can also be substituted by capital equipment and old and outdated machinery by new and modern machines to increase efficiency. Increase in efficiency depends upon management's success in maximising utilisation oflabour on new plant and equipment and making the employees work in a systematic and organised way. There is always resistance from employees to "change." To bring about "changes" for attaining higher productivity, co-operation of the employees will be necessary, which can be achieved only through collective agreement 10. Technology: We are a part of global economy which is moving fast in the direction of high technology. In the 21st century there will be enormous change in the current technology with which we produce goods and services. The improvements in technology will not only become inevitable but they will form the basis of rapid economic development. We do not have enough foreign exchange to import advance technology or automatic machines to improve our productivity. We cannot earn enough 143