RELATIONSHIPS IN INDUSTRY

Press, Volume XCI, Issue 27603, 9 March 1955, Page 6

RELATIONSHIPS IN INDUSTRY

IMPROVEMENT HELD NECESSARY

ADDRESS TO ROTARY CONFERENCE

There was a need for better understanding of porkers by employers, said Mr R. D. Greenwood, of Wellington, in an address to the conference of the 40th Rotary District in Christchurch yesterday. Mr Greenwood was founder of the New Zealand Institute of Management. “As Rotarians, it should be a central principle of our vocational service creed that our larger job will be, first, that of deserving and then securing a favourable economic climate for our operations; and, second, that of deserving and then receiving favourable recognition for the over-all contribution we make as businessmen to the economic and social structure,’’ he said.

“There is an urgent need to make business come alive to all who work in it. Management is essentially a process of employee communication. So let us ensure, then, that this is effective, and that everyone know that the other man is thinking and why.’’ Mr Greenwood said that 40 years ago the population of New Zealand was mainly concerned with farming, and the economy was "the sum of many rather simple individual experiences.” Today, most of the population were wage-earners, and they found it difficult to keep pace with industrial changes.

“The tendency has been to place more emphasis on machines, materials, and methods, than upon the worker himself,” he said. "This is a challenging situation, for wage-earners form the real substance of our economic structure. This challenge is both serious and urgent. Industrial Changes "When this country was young and industries were small, the owner of a factory knew personally and intimately each of the small group of men who worked for him,” Mr Greenwood said. “All knew each other and their families, their problems and their ambitions. All understood the problems of business. There was a realisation that the merit and ability (and not mere indicators such as wage scales and penalty rates of pay) were the factors that introduced inequality. Most men differed considerably one from the other; if not in origin, then in aptitudes, skills, intellect, courage, and temperament. These characteristics were freely admitted by all. “But the larger the business grew, the less contact the individual workmen had with the owners of the factories in which they worked until in most cases, there was no contact at all.” Mr Greenwood said. “And then there came about a great process of levelling down with its inheritance of misunderstanding and prejudice. . . . “The survival of our free economic system depends upon informed public opinion, and in the business and professional world, Rotary is well placed to form the hard core of enlightened attitudes,” he said. “I believe we must engage in a sincere and enlightened attempt to give the people of New Zealand leadership on the causes and effects of low production, for instance. The whole problem jot employeremployee relationships can be approached in a new way if the ground of present controversy can be cleared in the way I am suggesting to you. The primary ned is to prepare people to function well, willingly and with understanding.”