By: Fakhra Sikander
Pakistan’s economy is on the verge of collapsing, caused by several different things. One of the significant challenges is the unfavourable business environment, which has led to the departure of major multinational corporations (MNCs) and a shortage of foreign investment. Even local entrepreneurs hesitate to establish manufacturing industries, further exacerbating the situation.
During the 1960s, foreign companies helped Pakistan become more industrialized by setting up manufacturing industries there. Established businesses expanded their operations, and organizations such as Esso Corporation and ICI were run professionally and efficiently, with employees working with the utmost dedication to achieve production targets. The productivity of local workers was on par with their counterparts in other countries. In 2000, Pakistan’s worker productivity was higher than that of China and India. But the decline started when people in the other two countries got better at their jobs and companies started using more modern technology. This worsened Pakistan’s economic problems, leading to its current state of potential collapse.
In Pakistan, there are a lot of people who don’t know how to work or have good work ethics.
By dividing the gross domestic product (GDP) by the total production hours, we can determine how productive a country’s economy is. For example, if a country’s GDP is $100 billion and its production hours are 4 billion, its productivity would be $25 per hour worked. A highly productive economy can do more with less. This means businesses can make more money, workers can make more money and work in better conditions, and the government can get more money from taxes.
Compared to the labour force in developed countries, Pakistan’s workforce lacks skills and strong work ethics, leading to lower productivity levels. Because business owners and workers don’t trust each other, entrepreneurs are reluctant to invest in their workers’ productivity. When workers don’t get enough money and benefits, they also don’t do their jobs well and don’t keep trying.
Company culture plays a significant role in shaping the work environment and employee behaviour. Over time, senior management’s values and leadership style have a big impact on an organization’s culture. In moving organizations, senior managers set high work standards by showing they are knowledgeable, good leaders, and committed to meeting goals. These managers set a good example for their employees, who work hard and give the expected output level.
On the other hand, senior managers in state-run businesses are often happy to meet just the bare minimum, which can bring down the morale of their workers. This behaviour can make people not respect leaders and be lazy about their jobs, which hurts productivity in the long run.
Employers can take several initiatives to improve workers’ productivity, provided the management makes a concerted effort to succeed. One of these plans is to close the huge gap between the financial incentives given to high-level managers and those given to lower-level workers. Senior managers are responsible for getting things done, but lower-level employees must be motivated to stay committed to the organization’s success. As was the case at the Exxon Chemical fertilizer plant in Daharki, they should be given money to ensure they are comfortable and healthy. Even the top people in the company in New Jersey were surprised by how much they got done. Notably, union officials also worked alongside other workers, unlike in some other organizations.
Training workers for the jobs they are doing is another essential thing to do to make workers more productive. Many mechanics and operators in Pakistan work with limited experience and do not receive opportunities for skills improvement. Employers need to realize that putting money into training and skill development can help them make more money by making their workers more productive. Workers in China and Europe are better at their jobs than their Pakistani counterparts because they are trained and certified.
Along with training, access to technology and the ability to use it effectively is also imperative for productivity. You can only do traditional tasks without technology, but you need to know about technology as the world moves toward new and challenging products with added value.
Effective management of work productivity is a key part of running a business in the 21st century and is needed to stay competitive in the market.
Read More: https://republicpolicy.com/the-transition-to-the-decarbonized-energy/