Business

 

Bridging the gap between management and workers
By Naomi Gunasekara
Managers and employees in mildew-green shirts and beige cotton trousers stood in a queue carrying steel plates. It was lunchtime at Kuruvita Manchester Textile Mills Ltd and an employee or two removed cups from a row of steel cups hung on a nearby wall. Managers and workers were required to wash their own plates and cups labelled to match their registration numbers and they stood in line to wash their plates and hands before lunch.

Inspecting the finished product

Joining the Kuruvita team for a hearty meal in the small, homely lunchroom filled with the aroma of rice and curry, two Sunday Times journalists spoke to members of the Kuruvita Family over a delicious lunch. Following a management decision, the company has replaced business suits and overalls with beige trousers and mildew-green shirts to bridge the gap between managers and workers and increased profit and productivity significantly as a result.

Situated at Makandura in the Wayamba Industrial Zone, Kuruvita Manchester Textile Mills Ltd was not any other textile plant smelling of die and wet cloth with water splattered all over the plant. It is a high-tech textile plant that greets its visitors with two columns of scarlet rathmal beds and abundant greenery.

Work stoppages
Established in 1993 to die, bleach and finish imported gray fabric for the export market with a capacity of 450,000 yards a month, the plant has faced two illegal work stoppages resulting in losses running into millions of rupees. A member of Phoenix Ventures, it modernised in 1997 increasing its capacity to 1.5 million metres a month having successfully addressed the core issues behind the strike by way of relationship management.

According to General Manager, Anthony Mudalige, the work stoppages have been an eye-opener for the managers who enjoyed a number of privileges. "There was a wide gap between the management and shop-floor employees and we thought it was time to do something because stopping work for one day meant a loss of a million rupees."

With the management being blamed for the nine million rupee loss caused by the stoppage, managers have looked into the other drawbacks of the company like failure to make profit due to poor fabric realisation, low productivity, tied up working capital, high labour turnover, low attendance, unsatisfactory house-keeping and low morale of employees, before adopting the Kaizen method, a Japanese method of relationship management.

Kaizen focuses on continuous improvement involving both managers and workers. It is a 50-year-old concept in Japan, which saw immense growth in industry as a result of its introduction to the management process. Toyota was amongst the very first companies to implement it and today it seems to pervade our industrial life. "The Japanese economy was reeling after the attacks on Hiroshima and Nagasaki. But they made an impressive comeback within 30 years of the attack as one of the world's richest nations. This was possible because they worked as a team - not divided as white collar and blue collar workers," Mudalige said.

Japan's success
Japan's success in relationship management led to more and more countries adopting Japanese methods of relationship management. For instance Singapore started relationship management in 1982 and the US, which occupies first place in the Global Competitiveness Rankings introduced the concept in the late 1950s. Realising that today's workers want to be respected as individuals with rights and personal lives, Kuruvita Manchester Textile Mills Ltd has adopted more and more employee-oriented policies to create that aura of employee-friendliness through diverse programmes. One such programme is the programme launched to visit homes of sick employees and see how they can be helped. Another is the programme launched recently to aid employees to get their personal matters sorted out speedily. Under this programme the company requires employees who want help in attending to their personal matters like obtaining copies of deeds, duplicates for lost identity cards, etc, to come to the managers for help. "Going to government offices is time-consuming and the employees have to go on leave for days to get their work done. Their personal problems have a direct bearing on productivity and we stepped forward to minimise loses by introducing this programme."

The company's transformation from a company running at a loss to a company with a million-rupee turnover has been rapid after the introduction of concepts like 5S, Quality Circles and Kaizen to pervade every aspect of the plant. "All employees want managers to invite them to participate in workplace decisions and be transparent about loses and gains of the company. They want managers to be responsive and sensitive to their day to day problems," says Manager Administration and Finance, Lal Fonseka, who introduced Kaizen to the 'Kuruvita Family'.

However, putting these concepts through to the top management has been difficult because they had to sacrifice their air-conditioned lunchroom to eat with the workers. Moreover, their initial response to 5S has been "where do we find the time to do all these things when there are important matters to attend to?" Fonseka was summoned to explain how 5S could benefit the plant. "They thought it was absurd and failed to see the logic behind the concept." Arranging one's top drawer will enable one to save time because he/she would know where everything is. "You will save the time spent on calling and waiting for peons."

Kuruvita family
With its 438 members the 'Kuruvita Family' focuses on increased productivity. "Our focus is on making a bigger cake," says Fonseka who has explained the importance of increased productivity. "Increased productivity will entitle employees to have more of the earnings of the company because all stakeholders benefit from increased production." Sitting in air-conditioned rooms doesn't help increased production and field work has begun to play an important role in the day to day running of modern factories.

"Transparency is our strongest point. If our workers suspect anything they will build up resistance and the relationship will be broken. So we have to be absolutely transparent. We try to sort out our problems through communication and speak to the workers and treat them like our children." This change of attitude was what was most important, according to Fonseka. Once this was done, everything had fallen into place.

"We have looked at ways of bringing down our employees' cost of living by supplying vegetables from Dambulla at half-rate." Although the programme was well received, managers have discovered that towards the last two weeks of the month their employees found it difficult to purchase vegetables on cash. "So we introduced a credit system effective for the last two weeks of the month."

The company also has a medical policy which entitles employees to a sum of Rs. 35,000 in case of severe illness. The company bears the medical expenses of employees in cases where medicine is purchased on a prescription given by a specialist. "Now we have something to share with them. There is a request to give motor bicycles and 300 applications have been submitted. We are a bit sceptical because we don't want them to meet with accidents but our MD has agreed to give some bikes."

Employees chip in
All maintenance work from painting the factory to machinery maintenance is done by the employees who always use painted isles to move within the company and clean their areas of work after finishing their shifts. Cleaning is done three times a day and a camera system monitors the work of each and every employee. "Engaging supervisors to control workers lead to conflict and personal grudges. So we introduced the electronic card system to monitor the employees. Each time they enter the canteen, they have to stripe the card. This will record their time in and time out." Having achieved a lot within a short period of time, the path ahead for Kuruvita is not a rosy one. Although its workers benefit in many ways and are happy because they are well looked after, there seems to be a constant challenge to keep them motivated and disciplined.


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