Role of Organisational Efficiency in Improving Productivity : A Micro-Level Evidence from Indian Industry

This paper aims at evaluating the role of organisational efficiency in improving productivity, based on qualitiative, primary, firm-level data obtained from eight large scale manufacturing firms operating in different industries in India. The analysis shows that the effectiveness of organisational effort across firms is not proportional to their absolute organising effort and that the firms attain varying degrees of organisational efficiency irrespective of their type of ownership, private or public. Finally, the empirical evidence suggestS that it is the degree of organisational efficiency which matters first for improving productivity of firms and all other considerations, technological or others, automatically follow from it.