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Dr Gift Mugano

Zimbabwe, in its 2015 National Competitiveness Report, noted that productivity per unit of labour was very low, that is, more than five times lower than South Africa. Low productivity was significantly truncated in the agricultural sector with a paltry figure of US$422 per worker whereas in South Africa is in the region of $12000 per unit of labour. Productivity is closely linked with national competitiveness. In other words, a highly productive country is a highly competitive country.

The Government of Zimbabwe in its wisdom, through the Ministry of Labour, initiated the process for the establishment of the National Productivity Institute whose mandate is inter–alia work on improving national productivity. This is already ongoing work. In order to rally the Government in this thrust, this article borrows lessons from Slovakia on how it worked on its National Productivity Programme.

In 2002, the Slovak government approved the National Productivity and Competitiveness Improvement Programme. Its implementation was seen as crucial, particularly given Slovakia’s impending EU accession in 2004. The Slovak Productivity Centre has played a significant role in Programme’s preparation and implementation, as have the social partners.

In May 2004, the Slovak Republic decided join the European Union, but noted that it still had much to do to ensure long-term competitiveness. In particular need of development are the economy and human resources. Productivity is regarded as a key factor in human resource development and improving economic growth in a competitive environment.

Improving productivity is seen as requiring both an adequate conceptual approach and positive incentives to inculcate the right attitude in employees and employers regarding new working practices. To this end, a number of initiatives were launched to identify methods and instruments to improve Slovak competitiveness. The Slovak Productivity Centre (SPC), which was established at Zilina Technical University in 1997, initiated and co-ordinates these activities.

National Programme drawn up

SPC defined a new approach to productivity as follows: “the secret of improving productivity and the competitiveness of the Slovak economy is the development of a national drive, based on social partnership and cooperation.” The strategic aims of such a programme to improve productivity are described as follows:

a universal approach towards improving living standards;

a broad framework for solving economic problems;

a concept for developing competitiveness in Slovak society as a whole;

a “cultural” approach emphasising to citizens their own interest in improving productivity; and

an integrated approach incorporating labour, capital, materials, science and technology, management and policy-making.

The following measures are regarded by SPC as essential if Slovakia is to thrive in the EU, not to mention the global economy:

analysis, follow-up, assessment and improvement of productivity at all levels — local, sectoral, regional and national;

emphasis on the long-term improvement of productivity and competitiveness;

organisation of a productivity drive in terms of a cooperative network of individuals, enterprises, organisations and institutions;

support for research and development, mainly in industrial companies;

support for training and education directed towards productivity, quality, innovation, creativity, enterprise and competitiveness;

creation of a database of the best domestic and foreign approaches to improving productivity; and

encouraging the best businesspeople and academic specialists to cooperate with SPC.

This approach has provided the framework for a National Productivity and Competitiveness Improvement Programme. Representatives of different economic sectors and the social partners participated in elaborating this National Programme, while the Brussels-based European Association of National Productivity Centres — a European body that facilitates the exchange of information and cooperation among national productivity organisations — also provided assistance. The EANPC president and general secrSPC SLCP.

A seminar on the importance of productivity and social partnership, organised in February 2002 at the Slovak Ministry of Labour, Social Affairs and the Family in Bratislava, was of considerable interest for productivity specialists, while the Minister, the chief of the International Labour Organisation (ILO) management development department and the head of the European Commission delegation in Bratislava also participated.

The seminar focused on improving productivity in Slovakia through innovation, as well as a number of other factors, including social partnership (well-functioning social dialogue is one of the key criteria for EU accession). Social partnership is regarded as important not only for productivity and competitiveness, but also for education, occupational health and safety and so on. On the basis of this work, the Minister of Labour, Social Affairs and the Family submitted the National Productivity and Competitiveness Improvement Programme to the Government, which approved it on September 4, 2002.

The National Programme was officially announced at the fifth National Productivity Forum held in Zilina, where it was well received, and a declaration concerning active participation in its implementation was issued by employers’ organisations, trade unions, state administrative bodies, regional authorities and the Slovak Chamber of Commerce and Industry. The aim of the National Programme is to create a positive environment for long-term productivity and competitiveness in Slovakia.

Goals and tasks

The National Programme covers all sectors of the economy. Its main goal is to facilitate reform of productivity management at company level. The National Programme is to be supported by the state administration and local government executive and monitoring bodies, as well as by company managements, trade union organisations and employees.

Successful implementation of such an ambitious programme was possible because all economic actors pull together. Improving productivity and competitiveness was set as a strategic goal for the Slovak economy and society as a whole. Productivity improvements should facilitate the selection of strategic sectors to play a key role in increasing competitiveness, so strengthening the Slovak economy. Implementation of the National Programme is crucial, and the government was expected to do the following:

create appropriate economic conditions for improving enterprise productivity and competitiveness;

start an awareness-raising campaign concerning the importance of improving productivity and competitiveness among companies;

establish priorities, including short- and long-term objectives;

promote implementation of the National Programme through the tripartite Economic and Social Concertation Council (ESCC) and regional tripartite bodies;

support the national productivity and competitiveness campaign through various media, including audio-visual tools and publications; and

obtain foreign assistance in the implementation of the National Programme and related enterprise-level programmes.

In accordance with the National Programme, and in collaboration with both public and business institutions, the government supported the development of all components of productivity in order to secure sustainable economic growth. The programme means of the following nine main measures, listed under six “pillars”:

National economic growth

Increased productivity and competitiveness. The aim is to create appropriate organisational, technical and financial conditions for the adoption of productivity tools which have been successful in other countries.

Quality and innovation

Higher-quality products and services, the goal is systematic co-ordination of a National Quality Programme with the National Productivity and Competitiveness Improvement Programme.

Innovation and technological development, the goal is the coordination of productivity and competitiveness programmes with other research programmes aimed at research and technological development and innovation transfer.

Employment growth and human resource development

Employment growth, the aim is to create new jobs via productivity improvements. Effective management and development of human resources, the main objective is to improve labour force qualifications and skills through lifelong learning. The key focus will be dissemination of an understanding of productivity in line with the Further Education Act 1997 (No. 386. Special attention was paid to disadvantaged groups and regions.

Labour and environmental

protection

Higher levels of ‘labour organisation’ and occupational health and safety, the goal is to harmonise the National Programme with company programmes aiming to improve productivity in management, occupational health and safety, and workforce motivation.

Social partnership

Well-functioning social partnership as a precondition for productivity improvements. The creation of appropriate conditions and tools for the implementation of both government and company productivity programmes was based on social partnership.

Further education and increased productivity awareness

Consolidated thinking,the National Programme seeks to raise the awareness of the whole nation, via education, concerning the importance of productivity and the need to improve it.

Implementation of the

National Programme

Because of the cross cutting issues around productivity, a Coordination Council for the National Productivity and Competitiveness Improvement Programme was established to implement the programme. The membership of the Coordination Council comprises representatives of the Ministry of Construction and Regional Development, the Ministry of Transport, Posts and Telecommunications, the Ministry of Agriculture, the Ministry of Education, the Confederation of Trade Unions of the Slovak Republic, the Confederation of Industry Associations of the Slovak Republic and SPC.

The Co-ordination Council from time to time asked other institutions to cooperate, according to need. The Council acts as an advisory body to the Minister of Labour, Social Affairs and the Family, who chairs its sessions.

Wide-ranging and intensive cooperation with similar foreign institutions, such as ESCC, was being developed. Long-term co-operation continued with the Japan Productivity Centre (JPC) within the framework of which a Japanese expert, Isao Matsuda, was attached to SPC for two years. Other Japanese experts visited SPC during the last three years. The Japanese side also assisted the further training of Slovak experts by providing them with scholarship opportunities in Japan. The EU’s national productivity centres are also provided help, including financial resources.

I found this case study quite appealing. The major striking factors are:

The approach was inclusive — all relevant stakeholders were involved in its establishment;

The mandate of the National Productivity Programme was clearly articulated;

There was a clear implementation structure which was institutionalised;

The Government created awareness and national buy in;

The Government investment in education of participants and the institution itself by sharing knowledge with those with best practices;

There was high level of knowledge management and dissemination.

The Slovak Government was able to address various cross cutting areas related to productivity.

Dr Mugano is an Economic Advisor, Author and Expert in Trade and Competitiveness. He is a Research Associate of Nelson Mandela Metropolitan University. Feedback: +263 772 541 209 or [email protected]