INDIAN ETHOS AND VALUES

INDIAN ETHOS AND VALUES




Syllabus

Module-1

Indian model of Management; Work ethos ; Indian heritage in Production and Consumption

Module -11

Indian insight to TQM; Teaching ethics; transcultural human values in management education
Module -111

Relevance of values in management; Need for values in Global change – Indian perspective ; Values for Managers
Module -1V

Holistic approach for managers in Decision making- Secular Vs Spiritual values in management- Science and human values – Ethical issues relates to globalization


Module -V

Indian Constitution- History, Fundamental rights, Unity in diversity.


UNIT 1

MANAGEMENT IN THE INDIAN CONTEXT

1.1 INTRODUCTION

In the Western world, civilization has come to a half. Why? They have won the whole world but lost their soul. It is because they have chosen to worship a false god, Mammon. The mad pursuit of wealth has made the Western society restless and soulless. The Time magazine writes that in Oxbridge student rooms and London suburbs, a depressing loss of idealism has invaded the society. After the death of communism, and the disappointments of the capitalists, a sense of philosophical bankruptcy has spread across the democratic world. Nahusha tells Yudhisthira in Bhagvad Gita

The man who gives in to lust,Anger, malice andGreed falls from the human levelto the animal

This is the brutalization of the human being which is causing such discontentment in the first world today and which the third world is so tragically aping.

According to Prof Guttosm Floistad of the University of Oslo in Norway, out of a population of four million in the country, as many as 700 commit suicide annually, 121 billion kroners worth of medicines mostly sedatives, are doled out, to tackle psychological disturbances arising out of interpersonal conflicts in the workplace, absenteeism, caused by poor interpersonal relations, is costing the State about 30 billion kroner. Road accidents are costing the State about 30 billion kroner annually, again caused by poor concentration on account of lack of internal stability stemming from workplace conflicts. The phenomenon of 70 per cent single parent families in oslo alone is destroying socio-cultural ties in the country, and people are locked up in self-defeating spiral of a frenzied pursuit of entertainment and frenetic materialism.

Ancient India was well aware of the psychological verity that sex, money and power are an interlinked trio, so that the pursuit of one inevitably immerses a person in the other two, en route to destruction.

The answer lies in building a sound value system as preached by Indian ethics. Western management scholars are turning to our Vedas, Upanishads and the Bhagvad Gita for answers to the angst pervading their civilization which their management practices have failed to resolve. We should seek to import those very theories and practices which they have discarded as failures. Scientific materialism, the gospel of the first world, as giving way to talk of the 'new paradigm business' which does not seek to exploit and gain advantage, but explore ways to find the purpose and meaning in work and life. The West has come to realize that the worship of reason with its basic characteristic of fragmentation has led to that very feature being reflected in the policy and to modem man being unable to see reality in its entirety. That money cannot be equated with happiness is a basic realization around which the new approach will have to be built. The basic problem of human resources is centered around values. While the ancient cultures which revolved round 'hedonomics', like Greece and Rome, are long gone, Indian culture is still alive with a heritage which is at once prescriptive yet impractical. The success of Japan is based on values similar to those of the to Indians.

There is disillusionment and frustration with the Western model of management which leads to confusion and chaos because it lacks consciousness and spirituality. Spiritual development is an essential part of total human development and Indian insights provide a unique and rich storehouse for such development.

1.2 INDIAN MODEL OF MANAGEMENT

The two most important tenets of the Indian model of management are human values and holism.

Human values refer to spiritual, ethical and moral values. Ethical and moral values point to what is considered right or wrong as per the tenets of society; spiritual values relate to matters of the spirit or religious beliefs. These values act as the base for thoughts, actions, skills and behaviour and shape good character. These values create a good man, a good manager and a good organization. They set good examples in society. Values satisfy the hunger of the soul and remove pollution from the minds of people.

The Indian model of management is based on holism, which means oneness or unity. Holism is wider than the systems approach to the Western model of management. A human being has soul, body, mind and intellect. There must be a harmonious development of these components of our personality because all parts are interconnected, interrelated and interdependent. Holism is unity-the absence of duality, hence the absence of conflict and disharmony. Thus, the Indian model of management is a value-driven holistic approach which is much better than the Western model of management.

The Western model of management is based on rationality while the Indian model is based on morality. One is a scientific model while the other is a spiritualistic one. If we make a comparative study of these two diametrically opposite models, we can easily see why the Indian model is better.

In the management milieu, what do we find in the Western model? According to Frank Kristol, a leading American intellectual, owing to the consequences of the unbridled pursuit of 'having more', independent of ethical and moral considerations, economic progress has been accompanied by an unforeseen tidal wave of social disintegration and moral disorientation. Whoever expected that the successful creation of a welfare state in an affluent economy would be accompanied by an incredible increase in criminality, so that the streets would be blanketed with fear? A sharp increase in teenage pregnancies, in drug addiction, in the creation of a dependent, self-destructive under class, fatal venereal disease like AIDS, two million abortions a year are all the resultant effects of a materialistic society.

In addition, 50 per cent of American children have a single parent, a step¬parent or no parent, which is seen as a major cause of the value-crisis. Instead of

Marshall McLuhan's global village, we seem to be living in a global megalopolis. Herbert Marshall McLuhan, a Canadian educator, philosopher and scholar had advocated the expression-' global village', where people are in touch with their in her selves instead of the materialistic world outside.

The root cause lies in ourselves, for it is we who have chosen to worship the materialistic world using power as the grease for the wheels of his juggernaut.

The prime need of the human race is to escape from worldly misery and attain eternal happiness. Indian philosophy shows how the goals are to be achieved. From the epic Mahabharata we learn that dharma resides in non-violence, impartiality, peace, gentleness, humility. These are the five cardinal virtues, the practice of which leads of the attainment of dharma: calmness of mind, self-control, moderation, forgiveness, yoga. Indian philosophy advocates that happiness and money cannot be equated. The basic problem of management should centre around values. This is the Indian model of management.

Western thought is largely materialistic. Explosive growth in scientific knowledge about the physical world has had an all-pervasive influence. Major social scientists viewed spirituality and religion as anachronistic. Marx called it the opium of the masses and Freud considered it an illusion.

Influenced by these ideas, mainstream psychology in the West has not provided a valid place for the spiritual dimension of man. Humanistic psychology went only so far as to define the concept of self-actualizing man, a concept that is not easy to separate from that of a spontaneous self-centred man. Existential psychology, more often than not, pushes man into a black hole of existential anxiety.

Western models of man and management are bound to prove inadequate in addressing the problems of modem society. Important concepts are available in Vedantic thought to enrich Western thought and to provide a holistic set of ideas for management and organizations. For those managers whose aim is to achieve the highest level of managerial and organizational effectiveness, Vedantic wisdom directs them along a road where the pursuit of excellence goes hand-in-hand with their own spiritual development. In the Western society, human values have been sacrificed at the altar of science and technology. Science engages splitting, breaking up, segmenting. When this consciousness underlying the scientific temper is extended by technology into the domain of our material existence, human consciousness suffers from increasing fragmentism.

Fragmentation of the human consciousness accelerated by science and technology is a prime cause of the widespread fall in the level of human values reflected in our lives. While it has raised agricultural productivity or increased human longevity, in a moral sense, it has destroyed human impulses for higher values such as simple living and high thinking. A thoroughly showy lifestyle offers no scope for piecing together our broken consciousness into its original state of wholeness.

While science and technology have so for accelerated splits within man and between man and mar., they have also grievously aggravated the man-nature split. In India, people worship nature. If nature is 'used' it is only for 'need', not' greed'. We have not thought of the negative consequences of high standards of living, consumerism and economic growth that are madly pursued in the West. In the rush for economic planning and growth, the true model of man has been completely lost sight of .At present, both developed and developing countries have come to realize that market mechanisms and market forces are the most important factors in their economic development. In India, we have launched a new liberal economic policy which uses liberalization, privatization and delicensing as the means of achieving quick economic and social development. This policy also welcomes foreign direct investment and multinational corporations to invest in India. .

It is against this background that organizations in all developed and developing countries are undergoing a thorough change. The change in the organizations, in many cases, is turbulent and is resulting in the total transformation of the organizations, leading to a break with the past.

The change would be so swift and so sweeping that it may overpower some of the organizations which are simply not prepared for it. Such a development could drastically affect the very survival of such organizations. In the future, competition among organizations is likely to be so intense and cut-throat that the weaker ones may just vanish from the market. The struggle may take place between financially-sound MNCs on the one hand and corporations in the developing countries on the other.

The only way that organizations all over the world can survive is by withstanding effectively the powerful onslaught of the forthcoming change. This would be possible if the organizations could transform themselves completely. Such a stupendous change would serve as an instrument for further development and growth.

What will be the nature and type of change that will confront the organizations in the 21st century? The change would occur as a result of advanced technology, computer applications, artificial intelligence, information explosion, biotechnology processes or genetic engineering.

Prospective scenario of the future organizations

Organizations in the 21st century and beyond would not suffer from 'obesity' and are bound to be flatter, slimmer and leaner than their present-day counterparts. Unduly long vertical power structures and designation-obsessed power hierarchy are going to be altered drastically and may disappear altogether. Organizational obesity can be reduced by decruitment of employees who have been inducted for the mere creation of jobs and not for their necessity in the organization. So-called' golden handshakes,' could turn into' empty handshakes' , thereby depriving organizations of the few really talented seniors while most of the mediocre and non-performing employees will stick on.

In future organizations, performance appraisal shall not merely be an exercise specifying the merit rating of the individual but will be extended to explore their potentialities for future development. Organizations in future are bound to be change¬s -sensitive but not change-resistant. At present, in most organizations, training is highly 'trainer centred'. Future organizations are likely to be 'learning organizations', i.e., they shall be 'trainee centred'. Human beings learn not only through formal training programmes but also through experimental learning on the job.

In the future, discipline in organizations will not involve punctuality or behaving properly but will encompass a firm commitment of an employee to the job and the profession. The so-called 'span of control' shall have to transform itself into a process of monitoring and guidance on the part of senior executive vis-a.-vis juniors. Interpersonal relations will not be marked with designations, but will be warm, reciprocal, informal, functional and more humane in nature. The communication channel in the 21st century organizations will not be a one-way traffic, i.e., :from top downwards but will become a two-way process.

The work culture in a future organization would involve an industrial relations based outlook and not an industrial disputes-based one. The relationship between the management and the unions shall not be based on the 'who wins' approach, but on a 'win-win' approach. Consequently, the so-called 'exclusive rights' of the management would have to be reinterpreted and acted upon for the overall benefit of the organization.

The overall management will be more participative in day-to-day activities than at present. In fact, reduction in the organizational obesity and delaying will help achieve this objective effectively. Workers' participation in management is sure to transform itself into a co-deteimination process.

In future, the process of decision-making at the top level is likely to become increasingly painful. Given the rapid and unpredictable changes in technology, markets,government policies, the senior executives shall face the fundamental question on whether to take a decision or not. In the course of the agonizing process, senior executives will experience tremendous stress. Such stress shall become second nature for executives.

Thus, in essence, the scenario of the future organizations would be:

. reduced obesity

. flattened hierarchy

. delayered power structures

. informal relations with two-way communication,

. discipline beyond mere timekeeping

. cut-throat competition among the corporations

. stress on zero-defect products

. quality conscious production

. emphasis on learning rather than training

. increasing necessity for creativity

. frequently and abruptly changing structures and priorities

. If such is the scenario of the future organization there is definitely something in the Indian ethos which would help them to tackle such changes and channelise them for their development.

The Indian ethos will prove to be of immense help as well as practical use to executives in job management in the post-modem organizations.

Relevance of the Indian ethos to future organizations

The Indian ethos is the result of the Hindu way of life. For a Hindu, the Indian life has four fundamental goals-dharma, artha, kama and moksha. To fulfill these goals, human life is divided into four stages-brahmacharya, grihastya, vanasprastha and sanyas. Each stage spans a specific period of an individual's life during which a particular goal dominates. For example, during grihastya the fulfillment of artha and kama goals predominate, whereas during sanyas, the quest for moksha dominates.

To achieve the above-mentioned goals of life, three fundamental ways have been suggested-karma (action), bhakti (devotion) andjnana (knowledge). The adoption by an individual of a particular marga depends on the degree and the level of his psychological and spiritual evolution, his individual volition (pravritti), his samaskara ( culture), vasana (passion) and on his gunas, namely salva (the illumining force), rajas (the kinetic force) or tamas (dark, obstructive force).

On the basis of the composition and predominance of the gun as for each individua~ his personality takes a shape. Based on his pravirtti, each individual adopts a particular marga that is suitable to his nature, which the Bhagavad Gita terms swadharma. Sometimes, incompatibility among the individuals and gunas could lead to adverse results. For example, if a person dominated by tamasic gunas adopts the jnana marga (path of knowledge) he will end up as a failure and become frustrated.

Therefore, the Gita insists that each individual select his career/job according to his gunas and parinathi (maturity) appears not only sound but also logical.

These insights are immensely valuable for the modem organization and its management.

According to the Upanishads, the realities of life and nature are constantly changing and nothing is absolutely permanent on this earth. Social systems change, economic systems change, organizations change and individuals change and energy changes its forms. The only fundamental reality in creation is change--constant change. Moreover, concepts such as truth and morality are in a constant flux. Lord Krishna asserted in the Bhagvad Gita that the man who does not realize the truth of flux and change is the most ignorant and foolish. He cannot face change bravely and naturally, so as to face it bravely and naturally. One should keep in mind that nothing is absolutely stable and permanent. Every modem-day executive has to realize this fundamental truth and prepare himself as well as his colleagues and the entire organization for the impending changes.

To know the true nature of reality in corporate organizations, each executive must have a clear insight into his own self, his own personality, his own individuality, and his own qualities. He must be aware of his pravirtti, gunas, attachments and aversions, prejudices and preferences, instincts and drives. He should act as a yogi an eternal ascetic.

In a tumultuously changing organization, only that individual can emerge as a successful executive who is deeply aware of his true self and his characteristics. When he attains this state, he can become a satvic (self-illumined and detached) and a sanyasi (one with the highest degree of control on oneself and one's emotions). Consequently, he can take decisions in a calm and dispassionate manner despite the turbulent change affecting the organization. For making critical decisions, especially during crisis, an executive needs a mind which possesses steadfastness and not fickleness. He also requires samadrishti, i.e., equanimity to view alike success and failure, praise and criticism, joy and sorrow and attachment and aversion. For attaining such a state of mind, the executive, like a yogi, has to transcend the duality of life and death. Such freedom from immediate conditioning (or stress situations) can be attained by an executive only if he performs his own actions in a detached manner and does not attach undue importance to the results and rewards. In other words, that individual is a true yogi who realizes that only action is in his control and not the rewards. The executive should not be unduly perturbed by or obsessed with the outcome of his actions, whether they lead to success or failure. One can achieve this condition if one engages in genuine nishkam karma. Could there be a better panacea than the approach through nishkam karma for an executive to manage effectively the ever-changing, turmoil-oriented and crisis-ridden organizations of the future?

When an executive succeeds in transforming himself through self-awareness into a nishkam karma yog~ his performance improves manifold, his tensions disappear, the stress of day-to-day life does not affect him adversely and his mental health and capacities to cope with change increase tremendously.

Therefore, the logical conclusion would be that a modem-day executive must be guided by a fundamentally different work ethic, i.e., action is a must, but with no attachment to and obsession with its result and reward as the Gita has declared.

Self-perception and Self-awareness

To perform nishkam karma an executive should introspect which would lead to true self-perception. Such self-perception helps him to carry out a deeper exploration into his motivations and their sources and the resultant actions. In this connection, the Upanishads observe that real perception is above your perception. ,An executive who has developed a deep sense of self-perception and a deep insight into the realities of organizational functioning, will acquire tremendous strength as well as resilience which will greatly boost his performance.

The perceptive executive does not suffer from 'tunnel vision' or from professional arrogance driven by specialized knowledge, skill and talent. Moreover, true perception into changing realities ensures that the executive remains constantly creative and innovative and accepts that all organizations are in a state of constant movement and subject to continuous change. He does not get upset by any change, however sweeping it may be. The individual has his own potential so as to be able to withstand all kinds of pressures. Within the individual, there is no self-conflict.

The Indian ethos was and is characterized by a pluralistic; creative and altruistic view of life which can be extrapolated to organizations. The Indian ethos strongly believes in the concept of summum bonum. Indian thinkers had asserted that everything is bound to change and man has to adapt to such changes and transform themselves into futurists, if they have to survive and succeed in managing their lives and in fact, protecting civilization at large. The Indian ethos empowers individuals and organizations to prepare themselves for the forthcoming tremendous changes so as to utilize them for the optimum benefit of all mankind.

The East and the West-plain living and high thinking: A study in contrast

To highlight the contrast between the Eastern and Western philosophies, Rudyard Kipling had said, 'the East is East and the West is West, the twain shall never meet' .

Western civilization is materialistic or hedonistic and the eastern or Indian civilisation is spiritualistic and holistic. Swami Vivekananda had said that the voice of Asia has been the voice of religion. The voice of Europe is the voice of politics. The essence of the Indian way of living is simple living and high thinking. It is the disregard of this principle which is the root cause of all the evils manifested in our environment. The Eastern people are dreamers. They want to go beyond the present. The present is nothing to them. But to Western materialist people, the present is everything. Western philosophy has, at all times, consistently adopted 'success' as the goal of human life, while the Eastern philosophy insists on perfection as the goal of human life. Not only aims differ, lifestyles also differ. Perfection is spiritual and value-centred while success is materialistic and production-centred.

The Western materialistic philosophy is self-defeating. If one consumes everything in the present, it will conflict with sustainable development. If we use all our resources now, nothing will be left for the future generations.

Most of the saints of the East lead a plain life because high living means materialistic living. Gautam Buddha left the throne to embrace the life of a mendicant and to search for the real meaning of life.

Indian thinking is basically spiritualistic because Indian saints know that the body and soul are two different entities. The soul is immortal while the body is subject to death and decay. Indians concentrate on the development of the soul or moral development and do not attach any importance to physical living. They have realized that the more they are materialistic, the more they are further from God or Life Divine. They prefer to live a plain life so that they can give more energy and thought to the development of spiritualism.

Indians are eager to develop the human faculties so that they can realize the real meaning of life and the purpose of their existence on earth. They do not care for the transient and temporary living on earth-they search for the eternal life of truth, beauty and goodness. Hence, neither materialism nor high living is consistent with the Indian way of living. High thinking and plain living has become the motto of Indian way of living.

Western materialistic culture aims at attaining a high standard of living. To achieve a high standard of living we need more and variety of goods and services. Western society is running at a high speed to reach what Prof. W. W. Rostow has called the 'High Mass Consumption Society'. There is competition, tension and restlessness. But Indian life is based on cooperation, contentment and mental peace.

Modem science and technology are the fruits of the tree of knowledge of good and evil. They are not evil in themselves but they become evil when they are separated from spiritualism. Science is the worst form of knowledge-the knowledge of the material world through reason. Dr Albert Einstein has aptly pointed out that we should not worship intellect. Intellect may be powerful but has no personality. It can only serve, not lead. It may have a sharp eye for methods and tools but is blind to ends and values. Indian philosophy is, as Swami Vivekananda said, man-making philosophy. Here, mind is more important than material, ethics is more important than economics.

Management presupposes the existence of man. No man, no management, no production. The president of a multinational corporation once remarked, 'I do not manufacture automobiles. 1 build only men because my men build these things. ‘This is exactly the Indian approach-the objective is not to produce more goods but more good men. The race for production and distribution has brought forth a lust for profit all round. Ends rule supreme, means are discounted. Hence, management has been reduced to a handmaid of profiteering. This phenomenon is found in abundance in the West, especially in the US, which has surpassed the world both in materialism and management.

In Western management, the worker is all, man stands nowhere. He is treated like a hired commodity which is paid for and rewarded as long as it is serviceable. The moment he ceases to be such, he stands discredited and is promptly replaced. The workforce resort to underhand pressures to dupe the management. Conflicts are common, violence is rampant, absenteeism is the rule and strikes and breakdowns are daily occurrences. Naturally production is lost, unemployment is rampant and society suffers. The materialistic management has done more harm than good. The capitalist has grown richer, man has been reduced to a wage-earner and society has been placed at the mercy of a materialist management.

Indian philosophy and its way of living lays emphasis on: (i) Moral development, (ii) Development of character, and (iii) Refinement of human values. Rationalism of the West leads to material success while spiritualism of the East leads to perfection on earth.

As Sri Aurobindo said, 'Moral development makes an individual a complete human living-a total man and not an economic man. '

Indian perspective on the stress-related problems in corporate word

The period from 1900 to the present stands apart from every other period in human history as one of incredible change. Philosophers and scientists have given various names to this period. Peter Drucker has called it the Age of Discontinuity, John Galbraith has called it the Age of Uncertainty, Alvin Toffler called it the Age of Future Shock and Karl Albrecht, the Age of Anxiety.

A strange new disease has found its way into the lives of people of the industrialized nations of the world. The symptoms range from minor discomfort to death, from headache to heart attack, from indigestion to stroke, from fatigue to high blood pressure. This is the stressful life of man-both family and corporate life is full of stress. Stress is caused by a stimulus which may be either physical or psychological. Positive stress is called eustress, such as getting a promotion or getting married. Negative stress is called distress, such as a bad news, unreasonable demand, or demotion.

Symptoms: Stress is a condition of strain of one's emotions, thought processes and physical condition. When it is excessive, it can threaten one's ability to cope with the environment. Stress indicates the pressures people feel in corporate life. As a result of these pressures, employees develop various symptoms of stress that harms their job performance. People who are stressed may become nervous, easily provoked to anger and unable to relax. They may be uncooperative or take alcohol excessively. Stress also leads to physical disorders because the internal body system changes to cope with stress. Some physical disorders are stomach ulcer, heart disease, and kidney troubles. Stress may affect any employee, whether he is an elderly manager or a young worker. .

Causes: Conditions which cause stress are called stressors. According to one report, major sources of stress relate to the job and the family. The former include being fired. The latter include divorce, death of a child or wife. Another cause of stress is frustration. It is the result of a motivation being blocked to prevent one from reaching a goal.

Stress can be either helpful or harmful to job performance. A stress performance model shows the relationship between stress and job performance. When there is no stress, job challenges are absent and performance tends to be low. As stress increases, performance increases as stress helps a person to mobilise resources to meet job requirements. Ultimately stress reaches a plateau that corresponds with a person's top performance capability. At this point additional stress tends to produce no improvement of performance. Finally, if stress becomes too heavy, performance will decline and if it increases to a breaking point, performance comes down to zero.

Environmental factors: Our lives are changing rapidly. The five significant areas of change are as follows:

. From rural living to urban living

. From stationary to mobile

. From self-sufficiency to over consumption

. From isolated to inter-connected



. From physically active to sedentary

With the rapid development of technology, transportation and emergence of big corporations as well as the concentration of large manufacturing operations in the cities, a steady migration is bringing more and more people to the cities.

The city dweller is usually confined to a small plot of territory with the essentials carefully condensed into his living quarters. In some ways, the typical city apartment is reminiscent of the ancient cave. Living in the presence of large numbers of people induces a relatively high level of alertness in the city dweller. Crime and violence are frequently on the mind of the city dweller. Old cities generally have fairly large slum areas which breed crime and anti-social behaviour as well as continued poverty. The entire setting of the city demands a much higher level of alertness than the quiet, rural setting in which challenging events come less often and with much less severity. The urban environment seems to induce a much higher normal level of stress in the city dweller than that experienced by the rural person. Although most city dwellers seem to have learned to live in the city environment, nevertheless, it has been taking a gradual toll on their health and well-being.

Second, modem urban people have become mobicentric. The auto and jet plane have extended the reach of all people and have cut them loose from their places of birth; large numbers of people travel about the country and on vacations. They change jobs much more frequently than ever before. The typical professional person in India changes jobs twice or thrice in life. A typical Indian family changes home two or three times in life.

The typical pattern of early the 20th century was to be born in a community, grow up there and grow old there. The typical late 20th century style is to be born in one place, to grow up in a different place, be educated some place else, to move from place to place as part of one's career and to get married, divorced and remarried.

While, the typical citizen of the early 20th century worked within a 10 to 15 mile radius of his home. Indians of the 1990s and of the present century work within a 50 to 100 mile radius and commute a long distance each day. Commuting to : and from one's workplace has become a part of a worker's lifestyle nowadays.

The primary form of anxiety arising from the new mobicentric lifestyle is the loss of a sense of performance. Too high a rate of change for a person produces the physical stress in his body and leads to a decline in his emotional well-being, degradation of physical health and a general decline in the quality of life. Too much change destroys the feeling of stability and causes chronic anxiety.


Third, people have become consumers. In the early 20th century majority of families grew at least some of their food, raised animals and made some of their own necessities. But by the 1980s the usual urban and semi-urban family had become almost wholly dependent on a small number of farms and on factories for the goods they consumed.

Fourth, interconnectedness has done more to change the lives, values, aspirations and habits of modem people than any other factor. And it has perhaps added the most to the increasing stress load than any other factor.

Whereas the citizen of the early 20th century got most of the news from local gossip channels and the town newspapers and his main interest was to know what was happening in his own community, the citizen of the present century is literally deluged with information about the community, the state, the country and the world. An event taking place in one part of the country can be known within minutes in all other parts of the country.

The fifth important change factor, the shift from a physically active lifestyle to a sedentary one, more or less sums up the above stated factors. Not many highly educated people work hard for a living any more. Fifty per cent of the workforce is now engaged in knowledge work-production processing and handling of information. The fraction of the workforce engaged in heavy physical labour is steadily declining, as automation, robot and new machineries are being put to use. Instead of spending twelve hours a day on his job a modem industrial worker now spends about eight hours a day at work.

The list of diseases that medical researchers now recognize as being caused by stress are many. The ulcer is regarded as a mark of high pressure living. Medical research has now linked heart attack with stress. In the US, over ten million people each year have heart attacks. Over half of them die immediately or within a few hours. For most people, the period of convalescence following the heart attack changes them into permanent patients. Their tempo of life slows down and they tend to engage in fewer activities and often become less assertive and less enthusiastic.

Cancer may have a stress-derived component. In the US, over 300,000 people die from cancer each year. In India, the number of cancer patients is placed at 1.5 to 2.0 million every year. Another disease clearly linked to stress is hypertension or high blood pressure. Although other factors such as smoking and drinking and being overweight surely playa part, many researchers now believe that stress is the primary cause of hypertension. This disorder kills 60,000 people a year in the US. More city dwellers seem to have it than rural people. Men suffer from it more than women. Elevated blood pressure seems to be connected with elevated levels of anger, frustration and other emotions that the individual feels incapable of expressing.

Three main categories of sudden stress are:

(i) A traumatic disruption of a relationship with a loved one

(ii) A situation of physical danger, struggle or attack

(iii) Extreme sense of failure, defeat, disappointment, humiliation and loss of self-esteem

The most popular forms of escape from stress are:

. drinking liquor

. overeating

. smoking

. using heavy drugs

. using sleeping pills

For those who are lacking in maturity and social adjustment, chronic stress can lead to antisocial behaviour or even violent crime.

Still other people who have been stressed choose insanity as a means of escape. They go crazy in trying to drop out of the stressful micro-world in which they have been living. At the extremes of maladjustment and misery, suicide provides the ultimate means of stress reduction. Suicide rates go up in times of economic crisis or extreme social turmoil. In the US about 25,000 people commit suicide every year.

How to reduce stress: There are several ways to reduce stress. Counselling is one such way. Counselling is discussion of a problem with a view to helping the employee cope with it better. Counselling seeks to improve the employee's mental health by the release of emotional tension which is also known as emotional catharsis. People will get an emotional release from their frustrations and other problems whenever they have an opportunity to tell someone about them.

Another way to reduce stress is meditation. Meditation involves quiet, concentrated inner thought in order to rest the body physically and emotionally. It helps remove a person from a stressful world temporarily.

Indian perspective: The Indian ways of managing stress are

. Self-introspection

. Brain stilling

. Meditation

We have to embark upon self-study, self-analysis and self criticism to locate areas of friction, tension and disharmony. We should prepare a balance sheet of our strengths and weaknesses. Our mind may identify weak spots. By regular instrospection we can find a solution to our problems. Introspection involves self-examination of one's own thoughts, feelings and sensations. Constant practice or sadhana helps us to discard unwanted traits and cultivate good values to purify our mind and heart.
In the West, managers resort to brainstorming to solve difficult problems. The Indian insight advocates a better alternative in the form of brain stilling. For taking a rational decision, a silent mind is a much more effective way to get a sound and lasting solution to all management problems and relieve tension which cause stress. Brain stilling or meditative silence is the most reliable method to discover solutions to difficulties and problems which cannot be tackled by reason.

Lastly, a dynamic meditation is one that transforms lower consciousness into higher consciousness. It opens the third eye of wisdom through insight. One may mediate to open oneself to the Divine Force, to receive its guidance to discover the points to be transformed. Meditation helps to solve your complex managerial problems demanding higher consciousness.

Beneath our lower consciousness, we have our true inner being, the centre of consciousness. Through meditation, with a silent and calm mind, we are able to connect with our higher consciousness, and refer the problems of our life to it. When our mind is open and receptive to this higher consciousness, we receive information in the form of intuitions guiding us to form our right decisions and to solve difficulties which create stress or distress in mind. This is called the consciousness approach to management. The management and workers must have absolute faith in the Supreme Being's infInite powers.

1.3 WORK ETHICS: NATURE AND SCOPE

Nature of ethics

Ethics deals with ideals. Hence, ethics is said to be a normative science. What, then, is a normative science? A normative science seeks to determine norms, ideals, standards or values. It is generally recognized that there are three ideals of human life, vie, truth, beauty and goodness. They correspond to three aspects of 9ur experience¬ thinking, feeling and willing. Logic deals with the ideal of truth and tries to determine the general conditions involved in the pursuit of truth. Aesthetics is called the normative science of beauty. Ethics is concerned with the ideal of Good. These sciences are concerned with the standards of value, rather than with the simple apprehension and analysis of what exists or occurs.

Ethics is not a natural or positive science like physics and chemistry. A positive science studies facts as they are or occur. It collects data from experience and tries to explain them by reference to natural laws. The laws of positive sciences are descriptive laws, they state how things occur and are not concerned with laying down principles on how they ought to occur. Ethics is not primarily concerned with conduct as a fact or an event in space and time, something done here and now, following from circumstances in the past and succeeded by certain results in the future. It is concerned with judgment upon conduct, the judgment that such and such conduct is right or wrong. .(John Henry Muirhead- The Elements of Ethics). Ethics is concerned not with human conduct as it is but as it ought to be. It passes judgments’ of value upon human actions with reference to the moral ideal. While the judgments’ of a positive science are judgments’ off act, i.e., judgments regarding facts and events as they are or occur and state the laws governing them, the judgments of normative science, like ethics, are judgements of value stating whether a particular conduct is in conformity with the moral ideal or the ideal of goodness. Moral judgements are not descriptive but prescriptive i.e., they state what we ought to do, not what we actually do. They evaluate our conduct as right or wrong.

Postulates of ethics

Hence, ethics is a science which deals with the ideals involved in human conduct. It deals with the standards of rightness and wrongness, good and evil involved in conduct. It is a normative or regulative science of conduct. It should be noted that all types of behaviours or conduct of men do not come under the purview of ethics; for example, an office employee is going to a bank to deposit a large sum of money that belongs to his office, and on the way he is shot at by certain miscreants, is slightly wounded and the money is snatched from him by those miscreants. In this case, the office employee should not be held morally responsible for the loss of money, for his conduct is not the result of his free will. The money was snatched from him against his will by brute force. Any conduct which is not done by a person of his own free will is not judged to be the subject matter of ethics. Such a conduct is neither good nor bad. But if, in the course of police enquiry, it is found that the office employee was in league with the miscreants who shot at and slightly injured him, he should surely be held responsible for his deed and be punished for it. Hence, freedom of will of the agent or doer is a fundamental postulate or presupposition of morality. An action done by the free will of an agent is the expression of the nature of character of that person and is not something that occurs involuntarily or accidentally. Such events that do not follow from the free will of the does, do not form the subject matter of moral judgements. For this reason, reflex actions, instinctive actions, ideo-motor actions, accidents, etc., cannot be said to be morally right or wrong. A man fleeing from a dangerous animal is following an instinct of self-preservation. He cannot be blamed for the flight. Similarly, when we withdraw our hand on touching a very hot object, our action is an instance of reflex action that occurs automatically and involuntarily. An ideo-motor action is one in which action follows from the very idea of it. A spectator watching a footballer about to kick a ball into the net, may sometimes kick the man standing in front of him. He had no intention of kicking him. His act of kicking followed impulsively from the idea of kicking. It did not follow from any conscious decision on the part of the man. Hence, the conduct does not fall within the purview of moral judgement. The same is the case with accidents, e.g., breaking one's leg as a result of slipping on a banana skin. Only deeds done by the free will of an agent form the subject matter of moral judgement. Hence, freedom of will is the most fundamental presupposition of the postulates of ethics.

But there are other important considerations as well. Suppose, a boy of eight sets fire to a hut and causes considerable loss of property. Would he be punished for his deed? He would certainly be scolded by his elders and even given a few slaps, but he would not be legally prosecuted and jailed. The reason is that in an eight-year-old boy, the rational faculty is not fully developed to distinguish good from bad. The same holds true for mentally retarded persons. The second postulate of ethics is, therefore, reason. Only persons with a properly developed rational faculty, i.e., with the power of distinguishing good from bad are to be held responsible for their voluntary actions. Acts of other persons do not come under the scope of moral judgement.

The third postulate or presupposition behind moral judgement is personality ¬that is, the unity and continuity of the mental life of a person. We all believe that a man should enjoy the benefits of his good deeds or suffer the consequences of his bad deeds. But the consequences of actions come after the deeds are done. Sometimes, there is a considerable time gap between an action and its result. I plant a tree which may produce fruits after a few years. But my personality, in spite of many changes, does remain fundamentally the same, and it is I who enjoy the fruits of my action. But if, for some reason, my personality undergoes a profound change, if for example, it is replaced by an altogether different personality, my original personality may be said to be non-existent and I cannot enjoy the result, good or bad, of my act. If a man commits a crime and during the course of his trial, is found to be insane, he is not punished for his crime. Instead of being sent to jail, he is sent to a mental asylum and is deprived of his personal freedom and civic rights. Ethics holds that the doer of a deed must suffer its consequences. For this, the personality of the agent must remain the same. In case of serious mental illnesses like dual personality and alternating personality, the unity and continuity of the agent's mental life is seriously impaired and he can no longer be said to be the same person. Hence, he is not held morally responsible for his act.

Thus, to pass moral judgement on a conduct, ethics requires that the agent must:

1. Perform the deed out of his own free will and not be compelled to do it by some overwhelming force

2. Be in possession of a fully developed rational faculty which can help him distinguish right from wrong, good from bad

3. Not lose his normal personality, i.e., he must have a unified and continuous mental life

An action which fulfills the preceding criteria comes under the scope of moral judgement. All other acts are to be regarded as non-moral, i.e., not coming under the scope of moral judgement.

It should be noted, however, that apart from voluntary actions, habitual actions also come under the scope of moral judgement. A smoker tries hard to give up smoking, but he does not succeed. He is sincere in his efforts. So, how can he be held morally responsible for his habit? Is this not a medical and psychological problem? Certainly, giving up addiction to smoking, drinking, etc., sometimes requires prolonged medical and psychological treatment. But the man has not become an addict overnight or as consequence of a reflex action. It was by repeated exercise of his free will that he became addicted to such a habit. Habitual actions, being voluntary in origin, come under the scope of moral judgement.

In this connection, it is necessary for us to have clear ideas about the terms 'moral' 'immoral' and 'non-moral'. We generally believe that murder, theft, arson, etc., are immoral acts while charity and benevolence are moral acts. In fact, both these types of acts are moral because they come under the scope of moral judgement. Deeds like murder, etc., are bad moral conducts while love and charity are good moral conducts. Immoral acts do not mean acts beyond the scope of moral judgement. Instinctive actions, reflex actions, ideo-motor actions, etc., are termed non-moral because they are not performed voluntarily by the agent. Such acts are morally neither good nor bad. We cannot blame a man for immediately withdrawing his hand if it comes in contact with an electric current, nor for feeling hungry, thirsty or sleepy.

We thus understand that voluntary actions of persons in full possession of rational faculty and with a unified and continuous mental history are the subject matter of moral judgement. But when we praise or blame a man for his conduct, what aspect of his conduct do we judge? A voluntary action is not a simple event. It has three stages¬ the mental stage, the physical or bodily stage and the external stage of consequences.



Scope of ethics

Since ethics is the normative science of conduct, i.e., its function is to judge the moral worth of conduct with reference to a norm or ideal or standard, the scope of ethics is very wide. Ethics covers virtually all aspects of life for there is no conduct which is totally free from moral considerations. As a science of conduct, it is concerned with the ideal or standard to which our conduct should conform. Hence, ethics enquires into the nature of the springs of action or impetus, the forces that impel men to action, motives, intentions, nature of voluntary and non-voluntary actions, etc. Being a normative science, ethics is more concerned with the ideal to which our conduct should conform. It is the task of ethics to determine the nature of right, good, duty and virtue. Philosophical questions like that of the freedom of will also come within the scope of ethics. If it is found that in the ultimate analysis, men are determined totally in their behaviour by external physical forces, then human conduct will become a fact like any other natural fact and event, and the question of passing moral judgement on human conduct will not arise. Thus, ethics will cease to exist as a normative science.

Since we believe in the freedom of will and hold that men are not mere automata, their conduct is meaningful and aims at realizing some higher end or ideal, ethical considerations will enter into all aspects of our life. Hence, ethics is closely related to many other sciences. Politics is allied with ethics, for both of them aim at the good of the people. But there is also a great difference between the two. While politics aims at public utility and welfare, ethics aims at moral welfare or the realization of the highest good or ideal. Political laws are enforced by external physical forces, by threat of punishment. Ethical principles are self-imposed.

Ethics lays down the ideal of highest good and judges our conduct in the light of that ideal. Economics, which aims at ensuring economic welfare of the people, too is closely related to ethics. Economics is no longer considered as the science of wealth but of welfare, which is not a fact but an ideal. The concept of welfare is a broad one and economics tries to ensure only one type of welfare, viz., material welfare that may be ensured by economic goods and services.

1.4 BUSINESS ETHICS

Business may be defined as a human activity centered on producing or acquiring wealth via buying and selling goods. Business ethics and values are important for the successful development of a business organization. Ethics in business refers to a code of standard by which one can determine what is wrong and what is right for the business enterprise. Fairness, integrity, committing to agreements, broad-mindedness, considerateness, importance to human esteem and self-respect and many such principles determine business ethics.

Business ethics, generally, deals with what is right or wrong in the business. According to Wallace and Pekel, 'attention to business ethics is necessary during times of fundamental change as the moral values that were not taken seriously are strongly questioned at that time'. It is business ethics that enables the leaders and employees to act in times of crisis and confusion in the business. Business ethics is a method of dealing with unclear business problems.



Unethical problems in a business

. Managerial misbehaviour: Managerial misbehaviour includes illegal and unethical practices involved in the management of an organization.

. Moral mazes: Another broad area of business ethics is that of the 'moral mazes of management'. It includes ethical problems such as conflicts of interest, misconduct of contracts and agreements and the illegal use of resources. Business ethics has become a management discipline after the birth of the Social Responsibility Movement in 1960. This movement helped solve various social problems such as poverty, crime and illiteracy by using the finance from business class people.

To develop better relationships among people within an organization, the field of human resources emerged. As the complexity in the field of commerce has been increasing day by day, so has the need to simplify trade in an organization. The process of simplifying the commerce within an organization ensures better trading between the partners. With the growing need of simplifying trade, there emerges the discipline of business ethics. Business ethics is managed by following the ethical code and the code of conduct as set by an organization.

Myths regarding business ethics

Business ethics maintains moral values and ensures that the behaviour of employees is aligned with these values. Still, there are certain myths regarding business ethics, which are as follows:

(i) Business ethics is a matter of belief than management.

(H) Organizations believe that their employees are ethical so they are not required to pay attention to business ethics. According to Wallace, ethical conflicts arise in the following situations:

(a) When there exist significant value conflicts among differing interests of employees.

(b) When other alternatives are equally acceptable.

(c) When there are significant effects on the 'stakeholders' of an organization.

(d) According to Kirrane, people consider honesty and courtesy as the only business ethics. But when complex ethical problems come into play, most people realize that it is difficult to apply ethical principles in real life situations.

(Hi) Business ethics constitutes the principles propounded by philosophers and theologians. Many people believe that business ethics is a theoretical debate or a religion. It is believed that business ethics has little to do with the day-to-day problems of the organization. However, ethics is a management discipline that requires a planned approach and several management programmes. These programmes have an impact on other areas of management as well.

(iv) Business ethics only states the obvious do-good situations. Many people believe that ethics represents the values that a person should naturally aspire to have and, therefore, establishing codes of ethics is unnecessary. However, importance should be given to the ethical values of an organization. For example, it is obvious that all should be honest. If the employees of an organization are dishonest then honesty should be listed in the code of ethics of that organization

Code of ethics changes with the change in the society and the needs of an organization.

(v) Business ethics is an opinion. Many people believe that stress and confusion may inspire good people to behave unethically. Managing ethics in an organization includes helping each other in remaining ethical and working together through perpusing and hectic ethical dilemmas.

(vi) Business ethics is the new trend. Many people believe that business ethics is a recent phenomenon and has recently gained attention. However, it is an old phenomenon that has received importance now.

(vii) Business ethics is unmanageable by an organization. Actually, ethics is not directly 'managed' by an organization, but the behaviour of the team leader has a strong moral influence on the employees. The objectives of an organization such as maximizing profit and minimizing costs also have a strong impact on the ethics of an organization. Even the laws, regulations and rules have a good impact on the ethical values of the employees and hence minimize the harm to the business. But still, some believe that business ethics cannot be managed by an organization.

(viii) Business ethics is a social responsibility. Many people believe that ethics is social responsibility that does not deal with practical matters. Madsen and Shafritz define business ethics as an application of ethics to the corporate world. It helps in determining business dealing responsibilities and also identifies significant business and social issues.

(ix) Business ethics is not required if the organization is not in trouble with the law. People believe that unethical persons can operate within the limits of law. For example, withholding information from superiors and constantly complaining about others. However, flouting the law often starts with unethical behaviour that has gone unchecked.

(x) Business ethics has little practical significance in a business. Business ethics helps identify and prioritize the values to guide the behaviour of employees in an organization and establish associated policies and procedures for ensuring that a certain behaviour is followed.

Benefits of business ethics

The various benefits of managing ethics in a business are as follows:

. Business ethics helps in improving society by establishing government agencies,unions, laws and regulations in society.

. Business ethics helps an organization maintain ethical values during times of crisis. Business ethics programmes guide leaders about the right or wrong ways of dealing with complex dilemmas and how they should act during that time.

. Business ethics helps employees behave according to the ethical values that are preferred by the top management of an organization. An organization finds unexpected disparities between the preferred values and those reflected in the behaviour of the employees. Employees feel a strong relationship between their values and those of the organization. Ethical values induce teamwork and increase the efficiency of the employees.

. Ethics supports employee growth. When an employee pays attention to ethics, then it induces confidence among the employees to deal with reality and face both good and bad circumstances. Bennett, in his article 'Unethical Behaviour, Stress Appear Linked', explained that the more an employee is emotionally healthy, the more ethical they are.

. Ethics have become legal instruments. Nowadays, there are a number of lawsuits with regard to personnel matters and the influence of the services of the organization on the customers and investors. Major ethical principles applied in the organization are the laws that are made by the government. A greater attention on ethical issues on the part of the government ensures highly ethical policies and procedures in the workplace. For example, an employee is subject to breach of contract on non-compliance of the terms and conditions of the contract.

. Business ethics helps to avoid criminal acts 'of omission' and it also helps in lowering the fines. Ethics helps in ascertaining the violation of ethical issues and helps in rectifying the violation that is committed by the organization. The guidelines set by an organization about ethical values helps to lower fines. For example, an organization that has knowingly violated a contract is considered to have committed a criminal act and the organization is subject to penalty.

. Business ethics helps to identify and manage the values associated with quality management, strategic management and diversity management. For managing these values, ethical programmes record the values, develop policies and procedures and then provide training to the employees on these policies and procedures. These ethical programmes manage certain values of quality management, such as reliability, performance, measurement and feedback. Similarly, these programmes also manage various strategic values, such as reducing cost and increasing market share. Ethics also executes diversity programmes that distinguish and apply values of the diverse management.

. Business ethics helps in building a strong and positive public image of an organization. Ethical values enable an organization to increase their goodwill in the market. Those organizations that value their customers have a positive influence in the market. Ethical values are the milestones that enable the establishing of a successful and socially responsible business.

. Business ethics strengthens organizational culture. Ethical values improve relationships between an organization and its customers. They strengthen the organization by ensuring consistency in the standard and quality of the product.

. Business ethics makes sure that the right activities are performed in an organization.

1.5 WORK ETHOS

Work ethos or work culture refers to certain norms of behaviour governing the conduct of workers involved in a work situation to achieve certain desired objectives. of other words, work culture is the involvement of a workman with work. The degree of his involvement impacts his performance; whether he gives high or low productivity, high or low quality.



Work ethos will be different at different levels:

1.. At the basic level, it is about discipline, i.e., maintaining punctuality, coming to work on time, behaving properly with superiors, colleagues and subordinates and not wasting time during working hours.

2. At the top level, it is about commitment and accountability, to feel responsible for the task assigned to him.

3. Protecting the interests of the organization. No employee should make any adverse comments about the organization in public.

4. To perform one's jobs with devotion. The worker should contribute his best to the organization. Every man should work like a master and not like a slave, as Swami Vivekananda said.

Good work culture means the worker is fully absorbed in the work and has a high morale. On the other hand, poor work culture results in high rate of wastage, poor quality, low productivity and low morale. Work culture is also concerned with a worker's loyalty and sense of belonging to the organization. An employee is involved in an organization with 4 Ps, i.e., pay, prospect, promotion and performance. An ethical value system dictates that through performance an employee should receive pay, prospect and promotion. A sense of be longing and ideal work ethos will develop an attitude in work situations on the following lines:

(i) I am blessed to be in this situation because, compared to millions of unemployed in the country, I have the opportunity to work in this position and enjoy relatively greater benefits and a better working environment.

(ii) For whatever the organization has given me and done for me, I am grateful and whatever I do in return can never adequately compensate for them.

(iii) While it is my duty to help my subordinates and peers in enabling them to do their best for the overall welfare of the organization, it is not my business to sit in judgement over their actions, nor to take on the responsibility of reforming them to conform to what I think is right.

(iv) The law of karma ensures a perfect balance between what I give to others and what I receive from them, no matter whether it is a mere thought! action/ attitude, favorable or unfavorable, material or non-material. So there is no reason for me to feel depressed when people, things and events do not respond favorably to what I have done or feel elated when my expectations come true.

(v) All those who work with me are essentially different forms of my own true self, therefore I cannot injure others without in effect injuring my own self nor can I help them without in effect helping myself.

(vi) If another person shows a negative attitude towards me, the real cause for that lies in myself and not in that person. It is infinitely more fruitful to undergo introspection to find and root out the negative actions to thoughts negative actions to attitudes in my conduct.

(vii) No person comes into my life, no things come into my possession and no event occurs in my life unless I deserve it, in one way or the other. Instead of cursing God for being cruel to me, it is always desirable to find out the cause for it. It will invariably be deep within me in the form of thoughts and actions to attitudes. I shall try to see what lesson it has for my growth and development.

(viii) If I discharge my duties properly, my rights will be fulfilled, sooner or later. It is the divine law. It is the law of karma. It is the time-tested and confirmed theory of retribution and reward.

The seven factors responsible for poor work culture in an organization are:

1. Lack of commitment

2. Lack of discipline

3. Poor working conditions

4. Outside political interference

5. High rate of absenteeism

6. Lack of recognition of merit by management

7. Decline of general moral standards

Steps taken by management to improve work culture

1. Wages should be linked to productivity

2. Attendance bonus should be introduced

3. In organizations, the standing order copy should be given to every employee

4. Reward should be given to efficient workers

5. A prayer should be introduced to boost the morale of workers

1.6 INDIAN HERITAGE IN PRODUCTION AND CONSUMPTION

In early days, the Indian economy completely depended on agriculture. People produced only what was required for them to consume. The concepts of sale or exchange of goods did not exist simply because there was no need for them to. However, as years rolled by, the needs of the people kept on increasing and so did the production. People started to focus on the production of various items of luxury and daily use. As a result, they were not able to spend time and had no skills to produce other items of their use. Nevertheless, they were able to manufacture surplus goods more proficiently. Consequently, a system evolved wherein surplus items could be exchanged (or bartered) with the items of need. This process ushered the beginning of trade.

It is widely believed that India has developed a great deal in the modem times, particularly after independence, in the areas of trade and industry. Pt. Jawaharlal Nehru often referred to factories and industries as 'temples of modem India'. The extent of industrial growth in India can simply be measured by the fact that almost all goods of use are being manufactured indigenously. This, in no way implies, that there was no growth and development in these areas in the past. In fact, India has a very prosperous legacy in trade and commerce.

The beginning of India's journey in the field of trade and commerce dated far back to 5000 BC. History evidently proved that planned cites existed in India during those days and Indian fabric, jewellery and perfumes were admired by people all over the world. Currency was being used by Indian traders for the purpose of conducting business. There used to be federations to guard the interests of dealers, artisans and manufacturers. This is a clear indication of the manner in which complex development of trade and commerce occurred in ancient India. Other than a strong network of domestic trade routes, India also had established trade relations with the Arabs and the Central and South East Asian countries. India had been in the business of producing a numerous articles from metals and alloys like brass and copper. Idols, vessels, ornaments and decorative articles were some of the products falling in this category. A number of items were exported as well as imported to and from different countries across the world. It is also well known that the British initially came to India as traders, then they established their rule here. There are a number of ways which trace India's contribution to the world of trade and business. The numerical system of calculation used even globally had been developed in India. The concept of joint family and division of labour in business evolved here, which are widely functional even today. The modem methodology of customer-centric business has been a vital component of the Indian business culture since a long time. Thus, it can be concluded that India has a rich heritage in trade and commerce which has contributed to its growth globally.

Consumption of goods or consumerism has proven ties with the West. However, it is safe to conclude, that consumption takes place all over habitable land. Ancient civilizations like Egypt, Babylon and ancient Rome have had royal families, noblemen, and the aft1uent business classes who reveled in buying, using and hoarding luxury items, far beyond the realm of basic necessity. In the 19th century, the industrial revolution stressed primarily on production of goods, both for everyday necessity as well as luxury goods. During this period, mining, oil, steel, transportation networks, communications, industrial cities, etc., developed tremendously. The working class toiled long hours to produce goods for the consumption of the rich. In return, they were paid whatever little the industry owners chose to pay them. Industrialists like Henry Ford and Frederick Winslow Taylor incorporated the concept of assembly-line production that reduced costs and ensured maximum production possible.

The industrial revolution brought about an astounding turn in the history of consumerism. The assembly-line production ensured an outstanding amount of goods at the lowest possible prices. Thus began the era of mass consumption or consumerism. Thorstein Veblen, the 20th century sociologist and economist, coined the term 'conspicuous consumption' to mark the dramatic turn of events in Europe. He proposed that this unusual practice of buying unnecessary goods is a form of display of one's wealth and status.

The 21st century marks the arrival of materialism, somehow correlated with the buying of excessive and expensive technical gadgets. People, worldwide, were shifting away from spiritualism, frugality and simple living. Businesses realized that most of their clients were wealthy showoffs, and this helped them to promote new products. There was a complete lifestyle change experienced mostly at the upper levels of the social order. The middle class started aping the rich in order to create a sense of awe and admiration in the minds of friends and relatives. The reign of the era of instant gratification had begun.

In recent years, economic growth has given opportunities to people to spend lavishly. Metropolis cities and towns have begun to experience a spate of malls and chains of high end stores being opened. There is a definite upward trend in spending money on luxury items.

Challenges for MBA Students

Challenges for MBA Students



Lack of soft skills, entrepreneurial skills and leadership skills are the three problems, at present, that the Indian youth have to do battle with. This article dwells at length on these issues and also focuses on the differences between leaders and managers. In the end, it calls upon the youth to face whatever challenges come their way squarely and soar like the eagle.

Indian youth are strikingly more optimistic about their own future and also about the future of society. The general picture in other countries is that young people tend to be personal optimists but societal pessimists.

-- Mats Lindgren,

CEO and Founder of Kairos Future Group

When one of the richest persons in the world, Mr. Laxmi Niwas Mittal was asked what regret he had in life, he replied that he regretted not having an MBA. He is the only Indian who leads in a particular sector globally i.e., steel sector. He has achieved success in life and accumulated a lot of wealth; ;yet, he still rues not doing MBA.

MBA is one of the most sought after qualifications in India. After completing graduation students prefer to go in for an MBA because it offers a wide range of opportunities. Engineering graduates are also opting for this degree as it widens their mental faculties as well as provides faster career growth. As a result, we find mushrooming B-Schools in India. In this context, it is essential to pursue and find out the significance and importance of this qualification. Let us also look at the various prospects and problems involving the Indian youth in this regard.

Importance of MBA

Engineers are technically competent in their trade and can excel in that specific. But it takes them in only one direction. When they are armed with this powerful degree called MBA they can not only work as engineers but also as managers. In short, they turn out to be technocrats as well as full-fledged professionals. Acquiring management qualification acts as a value addition in their career. They can work as engineers as well as managers and it paves the way for fast career growth. Besides, it inculcates entrepreneurial skills and enhances the ability to stretch their imagination levels. It is not just the case of engineers, but even doctors and other professionally qualified people are opting for this course. The advantage of management education is that any graduate can opt for this course, as it is basically management-oriented involving very little technical orientation. This itself is reason enough for any graduate to pursue this course.

With the growing population and economy more industries are bound to crop up and there would be need for more managers and leaders across the country. Therefore, there is growing importance and significance attached to this qualification.

Problems for Youth

Indian youth are plagued by lack of soft skills, entrepreneurial skills and leadership skills, which is a major cause for concern. We do not have the problem of unemployment yet. We have the problem of unemployability as the freshers after passing out do not have requisite skills and abilities to match up with the industry demands, discipline, standards and expectations. In this context, let us briefly dwell on the subject of soft skills.

Soft skills are the non-domain skills that include various skills such as communication skills, presentation skills, team-building skills and business etiquette. People should know how to deal with clients, customers and suppliers, and should know how to behave with their subordinates, peers and superiors. People are good at their domain knowledge; i.e., the area in which they are qualified and that becomes the technical knowledge, which is also known as hard skills. It is rightly said that people rise because of their hard skills, but fall due to their lack of soft skills. The present educational system encourages more of technical and domain knowledge and less of non-domain knowledge, thus resulting in unemployability.

The second problem for youth is lack of encouragement towards entrepreneurial skills. Entrepreneurship is the process of setting up an own business venture, which involves a lot of risks and returns. It is not a cakewalk. It requires energy and efforts aplenty. It takes active involvement round the clock because it involves having a business idea, mobilizing resources, proper execution skills and managing both internal and external forces and factors so as to pursue the passion of entrepreneurship.

Although Indian youth are interested in taking risks, their parents dissuade and prevent them from taking those risks. The parents want their children to get secure jobs and earn a steady and decent income. They also want their old age to be properly secured. In many western countries, there are social security measures where the government takes care of their senior citizens. There are old age homes, unemployment insurance and many other forms of protection as these countries are already developed. Since India is still a developing nation we cannot afford to provide social security measures to the citizens. Therefore, parents discourage their children from becoming entrepreneurs as there is a lot of risk involved. In the past, the Indian economy was a mixed economy and it did not encourage entrepreneurship. Ever since the economy opened up, the climate has become conducive for encouraging entrepreneurial skills among the youth.

The third problem for the Indian youth is lack of leadership qualities. Small countries with tiny populations have produced leaders in various disciplines and it is very unfortunate that India with a billion plus population could not produce global leaders in proportion to the population.

The present educational and economic environment is not encouraging leadership qualities. In some cases, there is a dearth of talent. And in some cases, there is talent, which is not tapped enough to develop leaders. We do not have sufficient training institutes that encourage leadership traits.

Industry Expectations

The industry looks for `plug-and-play' recruits most of the time. They want the recruited employees to be on their toes right from day one. They want the freshers to be industry-ready so that they can be productive and useful as soon as they join without wasting much time in their training. However, this is not the scenario. Lot of jobs are available and the industry is not getting competent manpower. There are a few traits that the industry expects freshers to have. These are: learnabilty (the ability and capability to learn new tools and techniques), absorbability (the ability to grasp and understand new tasks), suitability (looking for the right peg to fit in the hole—nobody would like to have a round peg in a square hole, or a square peg in a round hole), capability (the ability to execute the challenging tasks at ease is another trait expected from the industry), and other skills such as adaptability, flexibility, assertiveness, team spirit, communication, leadership skills and last, but not the least, the passion to learn and grow. To put it succinctly, they look for the right mindset, tool set and skill set.

Infosys, the Indian IT giant, started a program titled `Campus Connect' where the faculties of various institutions would be shortlisted, selected and called for soft skills workshops. It is a kind of Corporate Social Responsibility (CSR). The faculties are trained free of cost who, in turn, would train the faculties in their respective institutions. And the faculties provide training to the students on soft skills and other skills that are needed for the students to get placed in the industry. Likewise, many IT companies are taking the initiative in this regard. It is an indication that everyone is realizing the importance and significance of employability skills and its results would be felt in the near future. It is like a ripple effect.

Challenges

Students work hard in an attempt to climb the ladder to success only to realize that the ladder has been placed on the wrong side of the wall. It indicates that the youth lack sense of direction, guidance and counseling. They set the goals because of parental or peer influence or sometimes because of the herd instinct. In the long run, it does not give them any satisfaction, on the contrary, resulting in frustration and fatigue. While planning for their career the youth should look for four As—Aptitude, Attitude, Abilities and Awareness. When their career is planned this way, they can easily accomplish their goals and career aspirations.

Because of growing technology, the business environment has become highly challenging and, as a result, the employees have to deliver their best to meet the rising demands of the consumers. During this process, if any employee fell short of expectations he would be given the pink slip. There is a lot of risk involved even in employment. The youth should learn to perform well or else be prepared to perish. It is a case of `do or die', where non-performing and inefficient employees are shown the door. There is more need for smart work rather than hard work.

Leaders and Managers

Management is doing things right; leadership is doing the right things.

-- Peter Drucker

There is a vast difference between leaders and managers. Let us look at some differences between the two. Managers are efficient while leaders are effective. Managers climb the ladder whereas leaders place the ladder on the right side of the wall. Managers are the machinery while leaders are the visionaries. Leaders know what to do, whereas managers know how to do. Managers put in hard work whereas leaders put in smart work. To put it in a nutshell, if managers are the actors leaders are the directors. However, since a few years, there has been growing emphasis on managerial leaders, which is a combination of managerial and leadership qualities and, of course, the combination of hard work and smart work.

Overseas Indians

Indians are doing extraordinarily well across the seas because of various reasons. Laxmi Niwas Mittal has achieved excellence by becoming a worldwide leader in the steel sector and also one of the top five richest people in the world. Pepsi Chief, Indra Nooyi, is one of the most powerful women in the world, a symbol of success, and a guiding and motivating model for Indian women managers. They could do it because of several reasons such as more opportunities overseas and also probably because they have moved from the comfort zone to the effective zone. Renowned Motivational Guru Zig Zigler Zig said, "97% of the people live in the comfort zone and only 3% of the people live in the effective zone. And success comes to the people who live in the effective zone." Successful people keep shifting their orbits and reinvent themselves as per the changing conditions and scenario.

Conclusion

To sum up, Indian youth definitely have an exciting future and a promising career with an MBA degree. By improving and developing soft skills, entrepreneurial skills and leadership qualities they can definitely leave a mark behind.

Message

Education and character are two sides of the same coin. When you have these two, you can succeed in any part of the world. Never complain like the duck, but soar like the eagle, as the eagle symbolizes leadership

MBA Ist Semester Question Paper 2008

G 6566 (Pages: 2) Reg. No.................................


Name.....................................

M.B.A. DEGREE EXAMINATION, FEBRUARY 2008

First Semester

BUSINESS COMMUNICATION

Time : Three Hours Maximum : 60 Marks

Section A

Answer all questions. Each question carries 3 marks.

I. Briefly explain the different elements of the communication process with the help of a model.

II. Enumerate the characteristics of a good speech.

III. In business, where would you use written communication in preference to oral communication ?

IV. Distinguish between Interoffice and Intra office communication used in business.

V. Explain the difference between hearing and listening.

(5 x 3 = 15 marks)

Section B

Answer all questions. Each question carries 5 marks.

VI. "Communicators should take an audience-centred approach to communication"—Comment.

Or

What is meant by media of communication ? Broadly discuss the relative merits and demerits of the different communication media.

VII. What are the different forms of oral communication ? How can oral communication be made effective ?

': Or

What important points should a chairman of a meeting keep in mind in order to run the meeting smoothly and successfully.

] VIII. What is meant by "direct" and "indirect" form of organisation in business letters ? Explain the circumstances under which you would use these two forms.

Or

How are visuals important in report writing ? Explain the different forms of .visuals used, indicating where you would use each type.

IX. Discuss how the different formal and informal communication channels are used in an organisation.

Office order asking the employees not to use the office telephone for personal purposes.

Turn over



2 G6566

X. Briefly discuss the changes brought about in the field of communication by the recent advances in electronics and information technology.

Or

What is meant by "body language" ? Explain how body language can influence the meaning of the message that is verbally conveyed.

(5 x 5 = 25 marks) Section C Compulsory question.

XI. Your company's baby food is facing stiff competition from a rival product introduced in Tamilnadu recently. You have been asked to visit the State and investigate the matter. Prepare a short report containing your findings to be submitted to the Chairman. Assume any data required.

(20 marks)




BHARATA MATA INSTITUTE OF MANAGEMENT, THRIKKAKARA





M.B.A. INTERNAL EXAMINATION, AUGUST 2009



First Semester



BUSINESS COMMUNICATION
Time: 1/2 hrs Maximum: 30 Marks


Answer all questions.

All questions carry equal marks.


1. (a) What are the objectives of downward communication in an organization? Explain

how such communication can be made more effective.



Or

(b) Enumerate the characteristics of a good speech. What should be the determining

factors in the use of visual aids in oral report?





2. (a) State the advantages and disadvantages of oral communication. You have to appear

for a Job interview. What would you do to ensure good performance?



Or

(b) Distinguish between Public Speaking and Business Presentations. How will you

make your oral presentation effective?





3. (a) Discuss the different style of speeches. What are the important barriers associated

with “cultural factors” in communication?



Or

(b) “ Communicators should take an audience-centred approach to communication”-

Comment.







(3x10=30Marks







1570

(Pages: 2)





M.B.A. DEGREE EXAMINATION, FEBRUARY 2008

First Semester

ECONOMICS FOR MANAGEMENT

: Three Hours Maximum : 60 Marks

Section A

Answer any five questions. Each question carries 3 marks.

1. What is Managerial Economics ?

2. Distinguish between GNP and GDP.

3. What is fiscal policy ?

4. Distinguish money market and capital market.

5. Define Elasticity of demand.

6. What is non-price competition ?

7. What do you mean by equilibrium of a firm ?

8. What are 'opportunity costs' ? Give two examples.

(5 x 3 = 15 marks)

Section B

Answer all questions. Each question carries 5 marks.

9. How is the national income analysis useful for managerial decision-making ?

Or

10. Briefly describe the various steps taken by the Government in controlling inflation in India.

11. Describe the various methods adopted to connect an adverse balance of payment position.

Or

12. What are the external factors affecting money supply of a country ?

13. Explain the features of Indian money market.

Or

14. Describe the important functions of a Commercial Bank in India.

Turn over

15. "Long run price elasticity is greater than short run elasticity" — Explain.

Or

16. What are the conditions for successful price discrimination by a monopolist ?

17. Define production function and explain iso-quants and iso-cost curves with examples.

Or

18. Explain the managerial uses of Break even analysis in decision-making.

(5 x 5 = 25 marks)

Section C

Compulsory question. It carries 20 marks.

19. Maruti Udyog Limited

Maruti Udyog Limited is a classic example of monopoly in spare parts, servicing, repairs etc. Along with its authorised dealers, the MUL is looting the Maruti vehicle users.

Often one has to change the clutch plate twice in six months and pay Rs.3,567. Maruti Udyog charges the price of clutch at imported cost while clutch plate is actually made by Clutch Auto. Pvt. Ltd. at Faridabad.

The replacement of a silencer costs Rs. 800. The costs of spare parts and repairs by any reckoning is three to four times compared to Ambassador or Fiat.

A random sample indicates that every eighth car has faulty clutch. In the context of defective parts and exorbitant cost of repairs, saving in fuel in Maruti as compared to other makes is of little consequence.

Maruti vehicle users are in a dilemma. They cannot get spare parts or get their cars repaired except through Maruti Udyog or through its authorised dealers. But both charge fantastic amounts and do not give guarantee even for a day. Maruti Udyog is thus callous to the genuine grievances of its customers.

Questions:

(a) Define a monopoly. State the main features of a monopoly.

(b) Why is Maruti Udyog called a monopoly ? Does it enjoy monopoly in car manufacture ?

(c) In what ways does a customer suffer because of Maruti's monopoly.

(d) What is the way out ?

[Hint: A Maruti Users' Association may be formed to consider legal actions under MRTP Act or Consumer Protection Act.]

(20 marks











6567

(Pages: 3)





M.B.A. DEGREE EXAMINATION, FEBRUARY 2008

First Semester

BUSINESS AND ETHICAL VALUES

: Three Hours

Maximum : 60 Marks

Section A

Answer all questions. Each question carries 3 marks.





(5 x 3 = 15 marks)

1. What is ethics ?

2. Define capitalism.

3. What are the types of ethical dilemmas ?

4. What is ethical leadership ?

5. Explain social audit

Section B

Answer all questions. Each question carries 5 marks.

6. (a) Describe nature of ethics.

O (b) Explain the various universal monal principles.

7. (a) Discuss various motives to indulge in unfair practices in marketing functions.

Or (b) Bring out salient features of ethical issues in chine.

8. (a) Discuss dilemmas in modern business in general management and policy areas.

Or (b) What is layoff and bring out its ethical and unethical aspects.

9. (a) Explain how manager as a leader influences business ethics in a company.

Or (b) Explain how ethical value system can be built up in MNC.

Turn over

10. (a) Explain how technology is used and misused in relation to ethical issues.

Or

(b) Write an essay on corporate governance initiative in India.

(5 x 5 = 25 marks)

Section C

Compulsory Question.

This question carries 20 marks.

Answer the question given at the end of the case.

11. ON SETTING STANDARDS

Special steel company limited (SSCL) is a reputed company and specializes in alloy steel manufacturing in Nagpur. The company turnover is 650 crores in last fiscal and has quality reputation in the market. Since it entered market in mid 70's. It exported materials worth Rs. 69 crore. Growth rate of the company is 11% and SSCL is looking forward for brown field expansion of its capacities. SSCL markets its products at competitive prices in all industrial towns in India. The exports are handled from its head office in Nagpur and export division in Mumbai. The domestic marketing is divided in 4 Zones, North with its office in Delhi, South Zonal Office in Chennai. Similarly Eastern Zonal Office, Kolkatta. Mumbai is Western Zonal Office and also in addition handled exports and imports activities.

The company by practice has established good ethical standards. The standards were by the chairman of the SSCL Aravind Jain. The company executives were known for their integrity and hard work and thus taking the company to growth path. Chairman of SSCL was assisted by Board of Directors and Company Secretary. The functional and full time directors were in the area of Finance, Production, Marketing, HRD and Project. Director marketing and Director Project used to go on tours frequently to Delhi, Kolkatta, Chennai and Mumbai and to overseas on their work. The tour frequencies were almost weekly. Regular co-ordination and follow up of activities were done in department and Zonal meetings.

Last Saturday Aravind Jain was following news item on Star News. He was shocked to see news flash that the Marketing Director K. Ram of SSCL was alledged for molestation of a lady employee serving in his office in Mumbai. The Mumbai police were looking for Ram for arresting and further action. Ram was in Delhi on Saturday. Jain Telephone imemdiately . Zonal Manager in SSCL Mumbai and Delhi, so that he can get first hand information, He was angry that he should get his company information through TV news.

The Zonal Manager Delhi informed that he was not aware of any Mumbai incident. The Zonal Manager Mumbai was not available in his house in Mulund (a suburb of Mumbai). Even after 2 days there was not news or whereabouts of the Mumbai Zonal Manager. TV news on 3rd Day gave that Mumbai police were searching the absconding K. Ram, Marketing Director of SSCL.

Newspapers and weekly business magazines published news articles on the subject. A business weekly gave a story with photographs of K. Ram and the lady employee giving their side of the story.

Ram aged 54, is a marketing wiz-kid and considered good in exports and international

negotiations. Son of Ram was in UK as a software engineer, Ram's story gave that the lady

employee, a secretary in Mumbai office, did come to his five star hotel room and went away.

The TV story was made up by Competitor Company to tarnish SSCL image. The lady employee

contended that she was called by Ram along with Zonal Manager for official work to the hotel.

In the hotel room Ram molested her telling that she will be promoted as officer shortly. The

I lady ran and lodges FIR in police station. The lady was middle aged and has a son going tohigh school.

The next week TV news said "Ram, Director of SSCL surrenders to Mumbai police. Police took him to custody and produced in Magistrate Court. The court granted bail to Ram."

Questions:

1 Discuss the ethical issues of the company involved in this case.

2 What are reactions on the issue from different stake holders of SSCL ?

3 (a) What actions you suggest that Jain should take immediately ? and (b) Policy decisions to stop such recurrences.

(1 x 20 = 20 marks)











F 6570 (Pages: 2) Reg. No.

Name.....

M.B.A. DEGREE EXAMINATION, FEBRUARY 2008

First Semester

ECONOMICS FOR MANAGEMENT

Time : Three Hours Maximum : 60 Mark

Section A

Answer any five questions. Each question carries 3 marks.

1. What is Managerial Economics ?

2. Distinguish between GNP and GDP.

3. What is fiscal policy ?

4. Distinguish money market and capital market.

5. Define Elasticity of demand.

6. What is non-price competition ?

7. What do you mean by equilibrium of a firm ?

8. What are 'opportunity costs' ? Give two examples.

(5 x 3 = 15 marks

Section B

Answer all questions. Each question carries 5 marks.

9. How is the national income analysis useful for managerial decision-making ?

Or

10. Briefly describe the various steps taken by the Government in controlling inflation in India.

11. Describe the various methods adopted to connect an adverse balance of payment position.

Or

12. What are the external factors affecting money supply of a country ?

13. Explain the features of Indian money market.

Or

14. Describe the important functions of a Commercial Bank in India.

Turn over



15. "Long run price elasticity is greater than short run elasticity" - Explain.

Or

16. What are the conditions for successful price discrimination by a monopolist ?

17. Define production function and explain iso-quants and iso-cost curves with examples.

Or

18. Explain the managerial uses of Break even analysis in decision-making.

(5x5 = 25 marks)

Section C

Compulsory question. It carries 20 marks.

19. Maruti Udyog Limited

Maruti Udyog Limited is a classic example of monopoly in spare parts, servicing, repairs etc. Along with its authorised dealers, the MUL is looting the Maruti vehicle users.

Often one has to change the clutch plate twice in six months and pay Rs.3,567. Maruti Udyog charges the price of clutch at imported cost while clutch plate is actually made by Clutch Auto. Pvt. Ltd. at Faridabad.

The replacement of a silencer costs Rs. 800. The costs of spare parts and repairs by any reckoning is three to four times compared to Ambassador or Fiat.

A random sample indicates that every eighth car has faulty clutch. In the context of defective parts and exorbitant cost of repairs, saving in fuel in Maruti as compared to other makes is of little consequence.

Maruti vehicle users are in a dilemma. They cannot get spare parts or get their cars repaired except through Maruti Udyog or through its authorised dealers. But both charge fantastic amounts and do not give guarantee even for a day. Maruti Udyog is thus callous to the genuine grievances of its customers.

Questions:

(a) Define a monopoly. State the main features of a monopoly.

(b) Why is Maruti Udyog called a monopoly ? Does it enjoy monopoly in car manufacture ?

(c) In what ways does a customer suffer because of Maruti's monopoly.

(d) What is the way out ?

[Hint: A Maruti Users' Association may be formed to consider legal actions under MRTP Act or Consumer Protection Act.]

(20 marks)