"Large share of blame"

Press, Volume CXII, Issue 32862, 10 March 1972, Page 3

"Large share of blame"

(N.Z. Press Association) WELLINGTON, March 9. Management must take a large share of the blame for the vicious circle of strikes, rising costs and poor productivity, said the Governor of the Reserve Bank (Mr A. R. Low) to the National Development Conference. “There has been a failure to communicate effectively,” he said. “Too often communication consists of general moaning, or exhortation to work harder. Such exhortation is one of

the most useless things an employer can do. “He condemns himself for failure to achieve a positive response of loyalty and enthusiasm from his employees, and is counter-productive in that it merely arouses scorn and resentment in the people it is meant to stimulate.” Mr Low said that management must avoid a costplus mentality and not be running to the Government for help in every emergency. There must be persist-

ent self-criticism and search for lower prices, new and better organisation of the efforts of skilled staff, market research, elimination of waste, getting full use out of equipment, disposing of unprofitable buildings or machines or products or stock. Employers should not fool themselves about efficiency, he said. “They may own the best machines in the country and turn out a very good product but this does not in itself constitute optimum use of resources.”