Managerial Communication for Productive Employee Relations in Indian Micro and Small-Scale Industries

Abstract

Small Scale Industries in the Indian economy are important cogs in the wheel, as they contribute significantly to industrial GDP. They account for most of the organized labour employment and form crucial links in logistics and supply chain systems in the Indian industry. In recent years particularly during the COVID-19 pandemic, many of these units across the nation were unable to cope with the economic downturn and were forced to close. The path to economic recovery is complex, with many dimensions like market dynamics, investment, and policy instruments impacting each other. One of these factors is the labour component - unavailability of skilled labour, inflexible labour laws, low retention rates and high labour costs are some of the major labour-related issues that obstruct the growth of this sector. This paper discusses some of the chronic issues in labour management in Micro, Small and Medium Enterprises in India and their communication challenges. It explores ways to make the Industrial Relations climate proactive and effective for these Units by adopting strategic and participatory communication. Concepts like teamwork, motivation, free communication, and mutual trust are established requirements for the growth and development of any organization. But they are difficult to achieve in an MSME because of unique challenges like literacy, size, and socioeconomic background of the unorganized workforce. It is worth exploring whether strategic communication approaches can be used to improve efficiency and the work environment of unorganized labour groups. Once a basic model of an open communication system is established in this sector, labour relations may turn out to be a strength of the Micro, Small and Medium Enterprises (MSME) sector rather than a challenge.

Keywords: Strategic Communication, Employee Relations, Indian MSME Sector, Challenges of MSME

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