Set to overcome obstacles like a cyclical weather phenomenon, sliding prices, low exports etc, there is an urgent need to address factors that can be improved upon to increase the overall productivity of the commodity.

One such method is by developing responsive control systems through estate performance agreement (EPA) systems -- a concept developed and studied by M Panduranga Vithal, professor at the Indian Institute of Plantation Management, Bangalore.

Keeping in mind the need for improving the performance of the industry, it is essential to apprise tea estate managers on the latest developments and techniques of modern management.

"Essentially, the major thrust of the programme is on measures that would help improve performance at the estate level by optimal utilisation of people, land and managerial time, Vithal told The FinancialExpress.

According to Vithal, estate performance system is expected to smoothen the relationship between estates and the respective corporate houses.

It was emphasised that managers at the estate level should concentrate on short-term and long-term sustainability of productivity and profitability. With changes on the economic front, continuing with a traditional management system will lead to a strategic failure cost, he said.

"Estates happen to be the core operating units and there is a need to strengthen the human value chain by increased managerial responsiveness. The dimensions of this system are two fold: that the estate and its management would work for more production and better quality at the lowest possible cost and that such performance should be ensured for the future", contended Vithal.

The rationale for the EPA is based on the premise that estate performance is essentially influenced by three main groups of factors viz weather, labour and resource support by the corporate office.These are seen as facilitating factors.

Explaining the idea, the management professor said that the estates are not justified for low and poor performance because of bad weather, usual labour problems or on account of non-arrival of or delay in the promised resource support from the corporate office. While weather is unpredictable, preparedness for a bad weather ensures minimisation of crop loss, he said.

Moreover, in case of a sudden crunch of resources in the economic environment (say pressure from suppliers, increase in taxes etc), the promised resource support by the corporate office may not be forthcoming. The office must try to achieve the best within the resources already made available. "The range of target values from excellent to poor provides an opportunity to the estate to turn out better performance even when the above facilitating factors are not able to extend full co-operation. This will be a great learning experience to the estates for better management even when the conditions are notconducive", said Vithal.

"In short, better performance on a continuing basis is required, while reducing the `dependency (on the corporate office) syndrome', and by accepting more responsibility on a clearly specified set of performance indicators and target values", he added.

This is expected to reduce the burden on managerial time of the corporate office which happens to be the most vital and costly resource. The corporate office on the other hand can concentrate on new areas of growth and development and find ways in strengthening its market share.

Estate management systems would hence help in churning out the best performance in a company, felt Vithal.