Munich Personal RePEc Archive

Policy Design & Delivery: Undermanaged Human Resources as Determinants of India’s High Growth & Low Productivity

Sapovadia, Vrajlal and Patel, Sweta and Patel, Akash (2015): Policy Design & Delivery: Undermanaged Human Resources as Determinants of India’s High Growth & Low Productivity.

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India’s series of economic reforms since 1991 have accelerated economic growth but not productivity at same pace. Productivity in manufacturing sector in the last two decades remains stagnant, but nobody sincerely has bothered to measure and improve. There are several ways & means to measure productivity, defined differently by different scholars. It is a fact that even using same data, different methodology will give different numbers of productivity. But whatsoever methodology we use to measure productivity, India’s productivity is quite low compared to USA & other BRIC nations. As per world management survey, 1% increases of management score increases 6% productivity. Comparatively there is not much empirical study in India to understand employee efficiency. And hence there are no concentrated efforts to take remedial measures to make them more effective and efficient using study of health economics, human psychology, education, cognitive & non-cognitive capabilities and its effect on skill formation. India faces challenges of poor governance, corruption, slow decision making process, lack of accountability, low & obsolete management skill.

This research aims at investigating reasons of low productivity specifically in the manufacture sector due to human resource management of industry & the government. The industry to some extent look at their own human resources as part of employee performance management, but this research aims to investigate; does the government policy affect productivity? Indian business environment is said to be heavily influenced by various government interfere and red-tapism. A business has to pass through dozens of windows varies in one state to another. The government policies cobweb is cumbersome and puzzle. The government policy is what is inferred by the person who implements it. The policy is implemented through various stages and each stage has its own nuances. It is the people on ground that understands the policy and implement which determine the fate of the policy. The policy is framed at high level after detailed study of the relevant factors and with full knowledge. But on the ground those who are responsible to implement such policy at micro level hardly understand the rationale and have same self-drive to implement the policy. Corruption, lack of accountability, political influence and lack of managerial & leadership skill of the government employees adds hurdle in safe delivery of the policy.

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