Notes, projects, reference material etc

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"Leadership and Management"

Leadership and Management are crucial to individual and organizational success in today's challenging global environment. Leaders conceive and initiate strategies that create and sustain competitive differentiation and advantage. They continuously pursue and evaluate innovations that may lead to increased productivity, new business opportunities and markets, and new or expanded competitive advantage and differentiation. They direct and influence corporate activities and behaviors to develop an environment and processes that support and sustain these strategies. Leaders nourish responsibility and commitment throughout the organization by ensuring that all employees understand how they contribute to the company's success, and how their contributions will be recognized and rewarded. Corporate and government scandals have reinforced the importance of personal integrity and a high standard of business ethics among a leader's needed qualities.

Managers implement strategies in day-to-day operations. They establish processes and systems, create business rules and operating procedures, and monitor performance to maximize the efficient production of the company's products and services. They have the frontline responsibility for ensuring efficient and appropriate use of company resources, including equipment, employees and capital. They ensure that employees have the education, direction and resources needed to perform their tasks.

 

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LEADERSHIP
Concept Questions:

1. List five popular Indian industrial leaders who practice Indian management thoughts.
Ans: (1) Kumar Mangalam Birla,
(2) JRD Tata,
(3) S. P. Godrej,
(4) Rahul Bajaj,
(5) Chitale (Pune),
(6) Singhania,
(7) Kirloskar

2. Describe Indian styles of leadership.
Ans: Most of the present days industrial leaders have come from the illustrious families of industrialists like those of G. D. Birla and JRD Tata, Jamnalal Bajaj, etc. before independence the Indian industrialist were mostly working as the Managing Agents of the British Companies or were engaged in the trading of cotton, food-grains, oil, etc. Jamshedji Tata and Ghanashyam Das Birla were perhaps the first enlightened industrial leaders who dared to start industrial houses in British India, despite discouraging British policy of levying heavy excise and custom duties on Indian manufactured goods.
These industrialists started their industries from the scratch and against the desire of the British rulers. Labour was abundant but not duly trained. They had no work culture. The industrialist started not only training the local workers to handle the latest machines but even provided for their provident fund, medical treatment, housing and schooling of children, even before the labour law was enacted. Whatever standards or norms these industrialists had laid down became the foundation of the labour laws in the near future. These industrialists were also required to support the freedom struggle in every form.
Although the present generation of these industrial leaders is now ruling the industrial empire, they are playing a very important role in development of Indian economy. Since they belonged to the families of industrialists, they are bound to safeguard the family interests of their houses. Yet it would be injustice to brand them as traditional industrial managers, having no vision of the future. On the contrary, they have been revolutionizing the leadership styles. They are becoming more professional. They have sponsored the higher educational and management training facilities, employed management trainees in responsible positions. Some noteworthy Chief Executive Officers of their industries are not hailing from industrial houses.
In working environment also they have brought out several healthy practices. Considering the Indian Cultural characteristics, S.P.Godrej, e.g. stopped the use of animal fat in manufacture of soap long back. They have developed vase track of land in Mumbai into green belt of their own volition. They observed Indian cultural festivals and traditions of Puja of machines, and vehicles on Dassera, Diwali etc. and involve the family members in such events. They consider each individual worker as a member of the family. Workers’ participation at every possible level is being tries. The enlightened industrial houses do not find difficulties in labour problems, as some industrialist believe in transparency in the decision-making process and workers participation. They are developing continually learning environment. E.g. XLRI at Jamshedpur is a renowned training institute, which conduct surveys and promote studies in various problems and principles. A worker is taken a whole and treated with due respect. Some industrial leaders are trying to provide facilities for meditation and Yoga practices, sponsoring sports etc. Globalization and IT environment is posing a greatest challenge to the industrial leaders as well as labour. Involvement of labour in the decision making process is likely to increase due to cut throat competition in the near future.

3.Give examples of ‘born’ leaders and ‘made’ leaders.
Ans. Born leaders are those charismatic personalities whom people expect to lead. E.g. Pandit Jawaharlal Nehru was a born leader. A born leader does not necessarily mean a person born in the rich or privileged family and on whom the leadership develops through inheritance. Inheritance does help develop the leadership qualities. But some leaders are born with the charismatic qualities, such physical stature, fair skin, pleasing personality, intelligence etc. being born in the family of privileged people alone does not make a person a good leader. Some children of the privileged persons are seen to have spoiled their life.

4. Good and bad styles of Management
Ans. 1.Country Club Management: No regard for production. Only happiness of the people is considered important. People’s needs are satisfied, friendly, comfortable organization climate. Not suitable for production and productivity.
2.Weak Management: no concern for people or for the production. Minimum efforts spent for getting work done. Low morale.
3.Task Management: No concern for people but very high concern for production. Efficiency results from arranging work in such a way that human elements have little effect.
4. Average Management Functions: Adequate performance. Satisfactory level of morale.
5.Team Management: Work accomplishment. Committed people, interdependence, common tasks, trust, respect, high people concern and high production concern, ideal situation.











 Describe the role of Karta in Hindu Undivided Family(HUF)
The main economic activity in India is still agriculture and allied industry. Industrialization has not yet reached the peak of its development. 75% of the population is still living in the villages. One of the characteristics of the economy based predominantly on agriculture is “Joint Family”. Agriculture activity is labour intensive. It sustains large joint families. This still holds good in India, particularly in villages. Joint family is headed by the eldest member who is called ‘Karta’ of the family. He is the leader of the family and he takes all the important decisions pertaining to the family and individual family members. All the members in the family are dependent upon the karta of the family from financial point of view as well as personal and psychological point of view. In a joint family care of the children, aged, women, physically or mentally handicapped or sick members is taken. They can feel secure and happy in the joint family. A sense of discipline, culture, customs or traditions are developed in such Joint families, which are binding on all the members. While there are some good points about the joint not get the due importance or they may not get the opportunity to show their talent. By and large Joint families with an enlightened Karta can be most ideal phenomenon for self development and security. Karta holds the property and rights as a sort of trustee on behalf of the beneficiaries.
Industrial leaders in India have emulated some of the paternalistic qualities of karta in a Joint family system, in their industries. Workers are treated as the members of the family system of the industry. The Chief assumes the role of the karta for them and ensures that they feel secure and happy in the industrial environment. In some industries, even old employees are not ignored after their retirement. They are allowed to participate in the working of the company with less hazards and physical exertion. They are listened for their advice. As a karta of the family Industrial Leader is supposed to treat every person as a whole human being and potential God.
With the concept of Karta the concept of Trusteeship must be linked with. A Karta hold the property or business in the capacity of the trustee rather than as the lawful owner. He carries on the business of the family or a company for and on behalf of the beneficiaries. He has no doubt a right maintenance out of the property and remuneration. But his role is that of a trustee. In Business environment, CEO or the manager is supposed to exercise his powers so as to subserve the interests of the employees, families of the employees, retired employees, sick or old members of the organization, customers, investors, environment and also the community at large. With the authority of Karta he has also an obligation towards the beneficiaries. He is accountable to the beneficiaries for the decisions he make. This is the gandhian-concept. He had observed that all those who are enjoying the powers and wealth have a duty to hold and exercise the powers and wealth as trustees for the beneficiaries.
 Characteristics of some of the leading business industrialists in India -
Ans. Azim Hashim Premji, Chairman, Wipro
Being richest man in India, yet, Azim Premji can be characterised as a shy and reticent leader and a man of simple style and tastes.
He believes that successful organisations prepare for the future, and the customer is the key to his future. He has charted a clear vision for Wipro, and has tried to bring in human values other than those of integrity, innovation and value-for-money. Known for an almost fanatical obsession with excellence, he invests personal time in teaching and coaching future leaders of the corporation to achieve their potential
He is a visionary and succeeds in getting his basics right in a constantly changing and dynamic technology age. According to him, what is important is not one’s existing knowledge alone, but one’s ability to keep refreshing it dynamically
The success of Wipro can be accounted to his integrity, unshakable self-confidence, determination and effort to better global competition, relentless work towards achieving this and its ability to acquire world-class processes, develop world-class teams and attract world-class leadership.
Premji has been criticised by the media and people from time to time that the wealth he had created was not being shared enough. This, being a valid criticism, however, the number of crorepatis that Wipro has spawned would have one believe otherwise.
Azim Premji serves as a source of inspiration to many. For a person who studied engineering, is an alumnus of Stanford University, US, and joined Wipro in 1966 at the age of 21, Premji has traversed a long way.
He has transformed a company that sold edible oil into one which is working on the cutting edge of technology. And in the process, he has become a global-scale enterpreneur.
He’s a firm believer of an honest day’s work, though of course his workday stretches from 12 to 14 hours.
Azim Premji serves as inspiring for hundreds of techies – around the country and within the company – to strike out on their own.
Rahul Bajaj
Rahul Bajaj, Chairman of the Rs. 1902.38 crore two-wheeler major Bajaj Auto being a boxer during his college days still carries an aggressive attitude.
He is very vocal when it comes to the need for a level playing field for domestic enterprises. He believed that the government owed it to the domestic industry to offer enough time to put its house in order before forcing it to compete against global giants. Bajaj formed the Bombay Club in 1993 when liberalisation threw open the doors to foreign competition. Stung by brickbats, a year later, the club was reduced to a one-man show. This did not deter Bajaj who even today continues to be as vociferous as ever. This was a example of his strong mindedness.
Bajaj today is no longer involved in the day-to-day running of his company at Pimpri-Chinchwad in Pune. After a heart attach in 1994, that's been left to efficient managers and his two sons -- Rajeev and Sanjeev. However, his sons were not allowed to gatecrash into the boardroom but were put through the rigours of the shopfloor.

Even after delegating his work to his sons, Rahul Bajaj remains an autocratic leader by nature. Though, Bajaj is no longer involved in Bajaj Auto, yet decision-making by consensus is not his style and he continues to be the last word at Bajaj Auto.

He does consult other people's opinion in key matters and give them a fair hearing, But does not believe in taking a vote. He alone makes the decisions.

 Depending upon the structure of task-high or low-analyse what impact will it have on leadership?
A standard way of classifying leadership styles is based on the relative concern the leader places on the task to be performed vis-à-vis the people performing the task. A leader who places greater emphasis on task performance tends to exhibit the following behaviours”
1. Organising and defining the roles of group members
2. Explaining what activities each has to do and when, where and how tasks are to be accomplished
3. Establishing well-defined patterns of organisation, channels of communication and ways of task accomplishment.
A leader who places greater emphasis on people tries to gain their relationship by exhibiting such behaviours as:
1. Establishing channels of communication
2. Extending psychological support to them
3. Developing mutual trust
4. Developing empathy for them.
Depending on the task emphasis or people emphasis four combinations are possible as shown in the following diagram:

High High relationship and low task High task and high relationship

(Supporting style) (Participative style)
People
Emphasis

Low task and low relationship High task and low relationship
(Free-rein style) (Autocratic style)
Low Task emphasis
Low High
1. High task and low relationship: A high task and low relationship leader emphasises showing employees how to get the task accomplished and spends minimum time giving psychological support. This style may be effective where the employees are inexperienced with the work to be performed. It may also be well suited to situations where seasonal help is required. Seasonal employees may be unfamiliar with the task and require direct guidance on performing the work properly. A high task low relationship leader is not necessarily rude or discourteous. The leader simply takes the expedient route of focussing on work rather than people.
2. High task and high relationship: This leader spends considerable time showing people how to get work accomplished and providing them with psychological support. The high task and high relationship style is considered useful because it results in high productivity and personal satisfaction. A more critical look at this style would suggest that it works best in situations where people need an active and involved leader. When employees are lacking in self-confidence and technical skill, the high task and high relationship style is particularly effective.
3. High relationship and low task: A leader using the high relationship and low task style gives employees much encouragement and support but a minimum of guidance about the task accomplishment. In some situations employees need more psychological support rather than technical instructions.
4. Low relationship and low task: A leader using this style is neither here or there. It is essentially a free-rein style. Subordinates are given considerable latitude in performing their work. They are also given very little psychological support, encouragement and praise. They are therefore; free to run their own show. When subordinates are highly skilled and psychologically mature, this style can be effective.

Entrepreneurial leadership style
Entrepreneur is a person who converts an innovative idea into business. The word entrepreneur is generally associated with small-scale industry. What is an entrepreneurial leadership style? Based on both their personality characteristics, and the circumstances of operating a business, many entrepreneurs use a similar leadership style. The most notable features of this style are:
 Impatience and brusqueness towards employees because the entrepreneur is always busy.
 A heavy task orientation combined with a very direct approach in giving instructions to employees.
 A charismatic personality that inspires others to want to do business with him despite the impatience.
 A much stronger interest in dealing with customers than employees.
 A strong dislike for bureaucratic rules and regulations.
 Anxiety to consolidate business gains as quickly as possible

Role of Transformational leadership
In explaining the concept of transformational leadership, two styles of leadership are talked of, viz. transactional and transformational. Transactional leaders determine what subordinates need to do in order to achieve their own and organisational objectives, classify those requirements, and help subordinates become confident that they can reach their own objectives by expending the necessary efforts.
Transformational leadership implies a process where by an individual attempts to elevate his or her consciousness (chetana) so that various commonplace conflicts and dualities begin at a higher level of synthesis. Stated differently, transformational leadership attempts to change the whole organisation from one style or culture to another. Transformational leadership has the ultimate aim of raising the level of human conduct and ethical aspiration of both the leader and the led. The leader’s main thrust is to elevate, inspire and evangelise his followers (and himself/herself) to higher things in life.
The late JRD Tata is a fine example of a transformational leader. His qualities of the head and heart moved everybody who ever came into contact with him. If Tata group of companies stand distinct in our corporate world- in terms of profitability, professional management and social responsiveness- credit goes to the transformational leadership of JRD. Transformational leaders are characterised by their distinct skills. They are: anticipatory skills-foresight into a constantly changing environment; visionary skills-a process of persuasion and example by which a person or leadership induces a group to take action in accord with the leaders purposes or, more likely, the shared purposes of a larger group; value-congruence skills- the need of a corporate leader to be in touch with the employees needs in order to engage people on the basis of shared motives, values and goals, empowerment skills- the willingness to share power and to do so effectively; and self understanding- introspective or self understanding skills as well as frameworks within which leaders understand both their own needs and goals of those of their employees.
We need more transformational leaders for our economy. Our country is now thrown open for global competition. Foreign companies are entering our country in a large number. In order to maintain our dignity and to sustain our ethos and at the same time to accept what is good for our business we need more transformational leaders.



 Explain the role of leadership character in management.
It is said that one cannot do business with yesterday’s methods and be in business tomorrow. A manager has to develop good leadership qualities in order to take the company to the top. The style keeps changing as the situation with the types of people. Korean managers were able to do better compared to Japanese as they developed managerial leadership quality, which is flexible and open. This led to success of Koreans in America and even in India.
Management is a process of planning, organising, coordinating, directing and controlling the activities of others.
Leadership is the process of influencing for the purpose of achieving shared goals.
A successful manager is one who has both the qualities, of the leader and the manager, and who makes use of them discretely.
Leadership is a psychodrama in which a brilliant lonely person gains control of himself for controlling others. Managers and leaders are different kind of people. They differ in motivation, personal history and in how they think and act. An effective manager requires changing leadership styles but should have good verbal communication with good listening power, manage time and stress, managing individual decisions, recognizing defining and solving problems etc.
Leadership style should blend with managerial functions. Leadership inevitably requires using power to influence the thoughts and actions of other people. An effective manager gets the job done through high quantitative and qualitative standards of performance with satisfaction and high degree of commitment. A managerial culture emphasizes rationality and control. Manager has to achieve results so that people will continue to contribute to this organization. It takes neither genius nor heroism to be a manager, but persistence, tough mindedness, hard work, intelligence, analytical ability, tolerance and goodwill.




Today Manager’s role has undergone change. A mesh of managerial qualities with leadership ability will be the key to success of managers in today’s environment. We do not need managers only but Managerial Leaders.
 Does leadership style change according to the situation?
Leadership Style: Dynamic and effective leadership is considered by all to be one of the major requirements of successful management. Leadership, in simplest of terms, is the ability to persuade others to seek defined goals and objectives enthusiastically.
Leadership style is the pattern of behaviours used by the leader to influence the behaviour of others
Situational Leadership: Leadership style is generally talked in terms of two extremes – an autocratic (directive) and a democratic (supportive) style. Autocratic leaders used position power and their authority to get results while democratic leaders used personal resources (power) and involved others in participative problem solving and decision-making.
No One Best Style: Though some claim that there is one best style that maximizes productivity, satisfaction and growth in all situation, further research in the last several decades has clearly supported the view that there is no one best leadership style: Successful leaders are able to adapt there style to fill the requirements of the situation.
While the situational approach to leadership does make much sense, it is not very helpful to practicing managers, who have to make leadership decisions everyday. If "it all depends on the situation", they would like to know when to use what style.
A number of situational factors influence which leadership style will be appropriate in which situation. These factors include time frames, job and task demands, Organizational climate and the superiors’, peers’ and subordinates’ skills, values and expectations. If every time all these factors have to be analysed by the managers, it will result in, what is called paralysis by analysis, and consequent inaction.
The immediate key factor that a leader takes into account is the subordinates. In particular, the amount of direction and support a leader should provide depends on the Development Level that the subordinates show on a specific task, function or objective that the leader is attempting to accomplish through individual or group.
Development Level: Development Level is defined as the competence and commitment of the subordinates to perform a particular task.
When thinking about someone’s development level it becomes necessary to remember that people are not "fully developed" or "under developed". Development level is only a task specific concept. People tend to be at different levels of development depending on the specific task, function or objective they are assigned.
Matching Leadership Style to Development Level: In determining what style to use with what development level, leaders need to provide their people with what they cannot do for themselves. For example, s shop floor worker needs to be lead by direction, while a sales executive needs to be led differently. It all depends on the maturity of the person being lead.
Increasing Performance Potential Situational leadership as described so far, is helpful for a practicing manager trying to determine what leadership style to use with the follower in a particular situation, on a particular task. Leader not only diagnoses the development level of his followers but also has the responsibility to enable the subordinate to grow to increase this development level. This is done through training.
Conclusion
Effective managers know their subordinates well enough to flexibly manage ever-changing demands upon their organizations. As responsibilities and tasks are assigned to individuals and groups, Development level must be assessed. The manager should then vary his/her leadership style in response to the individual’s development level. It should be kept in mind that over time subordinates and subordinate groups develop their own pattern of behaviour and ways of operating, i.e. norms, customs, traditions etc. While a manager may use a specific style for the work group as a group, that manager may quite often have to behave differently with individual subordinates because they are at different levels of development.
It is this shifting forward and backward in style that makes situational leadership a truly developmental model for both managers and subordinates.

 Critically analyze the differences in the leadership styles of family managed Indian business organization and MNC’s in India
Indian work organizations can be classified into three pats which have some distinctive features and consequently the different leadership styles. Such classification may be (i) family-managed traditional organisations, (ii) professionally managed Indian organisations and foreign-owned organisations, [and (iii) public sector organisations.]

In family-managed traditional organisations, the most prevalent style is autocrativc. Sons and grandsons of the entrepreneurs are automatically promoted without any consideration to efficiency or overall suitability. Thus, there is management by inheritance or management by chromosomes with the result that these organisations are highly centralised in their organisation, a certain amount of the paternalistic attitude prevails. The proprietary character of business and large-scale participation of family members in it have made the attitude of the head of the business, who is also the head of the family, highly paternalistic. The same paternalistic attitude extends to the employees and have developed a set of values vis-a-vis his employees. At the initial stage, authoritarian style is more suitable which these organisations have followed. However, such style has also been inherited by successors without any change or modification.

On the other hand, there many organisations in the private sector owned by Indians or by multinationals who have appreciable degree of participation or democratic leadership. The reason is that multinationals do not bring only their technology but also the work culture which is more permissive and conducive towards the application of modern approach of management. As such, degree of participation is greater in such organisations.

The third categories of organisations are in public sector. Here, bureaucratic style is more prevalent owing to the work culture inherited by public sector managers. Initially, public sector organisations are manned by civil servants who brought a lot of bureaucratic culture with them. The net result is that the entire organisational processes are governed by bureaucratic model. Its implication is status differentials, class distinctions, and impersonal relationships with work against participative style.

Explain the importance of values in leadership. How leaders/managers should respond to human values.
Values shape and give significance to our lives. They are reflected in the priorities that we choose, the decisions we make and the actions we take. Values describe what the organization is about and give meaning to stake holders.

Leadership has to be built on a strong foundation of values. Values not only make success enduring, but also help in building strong, resilient organization that can stand up to any crisis along the way. Values need leaders to be absolutely transparent in whatever they do. Every action of the leader must stand public scrutiny. Values transmit trust, which is a very powerful cementing force for the organization in these changing times.

Successful leaders recognize that shared values increase commitment and productivity. Through shared values, visions and goals, each individual possesses an accurate view of the "larger picture" and understands what the organization as a whole is trying to accomplish. Explicit values provide organizations with an efficient way to build commitment, guide decision-making, align actions, increase potential capability, and achieve a state that unites members in effective performance.
Alignment of business vision, goals, strategies, policies and practice has always been key to the effectiveness and success of organizations. But traditional ways of achieving this do not provide the flexibility and responsiveness necessary for a customer-focused stance in a rapidly changing and unpredictable environment. Alignment now has to be achieved through a shared understanding of what is important to the organization, its employees, and its customers - that is through shared value priorities.
A basic set of values, which a leader must possess, are integrity, honesty, building and maintaining good relationships, trustworthiness and being there for one’s followers.
Leaders should maintain their own balance, and at the same time try to do good to others, be selfless and be so strong that they convince others of their strength, not through thoughtless or violent actions, but through their firmness dignity and inner strength. The leaders should cultivate real non-violence, which is the greatest strength and power of endurance that a man can attain. It means the greatest courage coupled with the greatest love. It also means total absence of hatred. Hatred is as bad as attachment. Anger is as bad as lust. Leaders should not try to elbow out others or sacrifice others for the sake of their self-interest, or in the interest of those who are dear to them. Leaders should have compassion and love for others. When a leader sees the self in all people and all people in the self, then he hates no one. This is the recurring theme in the Upanishads. When one realizes the self, one hates none. Anger, hatred, untruthfulness, greed unchastity or helpless dependence on others - these shift the center of gravity away from the essential integrity and create conflict and discord.
When it gets tough, like when there has to be cuts in salaries, etc., the leader should do just that - lead. They need to not only be the one who is rewarded the greatest when all is well, but they need to be the first to sacrifice. The extraordinary leader says, "I know many of you are concerned with the salary cuts. I am too. In the long run we will be healthy again but for the mean time, this is necessary. Understanding this, I want you to know that I am taking a 20 percent pay reduction myself. I want you to know that we are in this together." The extraordinary leader is the first to sacrifice and will be rewarded with the loyalty of his or her followers.
Panic is one of the basest of human emotions and no one is immune to it. The extraordinary leader, however, takes time out regularly to think the issues through so they can remain calm. They remind themselves that all is not lost and there will be another day. They remind themselves that being calm will enable them to make the best decisions - for themselves and for their followers. Panic only leads to disaster, while calm leads to victory.
Leaders forgive the mistakes of others. Indeed, a touchstone of a healthy and ‘moving’ organisation is forgiveness. This sense of tolerance and acknowledgement of our shared humanity is a spiritual quality, which good leaders possess.
Developing the values of patience and perseverance become essential for any leader. These values gain him respect even among competitors.
Research has shown that the ethical standards of an organization impact upon the efficiency of that organization. They affect staff job satisfaction, staff commitment to the organization, as well as turnover in and levels of stress experienced by staff. In short, the research findings support the argument that good ethics are good business.
Unethical practices result in loss of public confidence and tarnished reputations. Stress is an expensive and on-going problem. Research suggests that a poor ethical culture in an organization can contribute to work place stress.

Leaders inculcate values in their followers by:
a. Direct communication with staff through regular talks and discussions;
b. Supporting those discussions by their attendance and by reference to concrete examples of practices or circumstances that may be, or may be seen to be, unethical;
c. Discussing specific ethical issues that staff can relate to, rather than having a philosophical discussion about abstract values. The discussion of ethical issues should become a normal part of the manager’s job;
d. Communicating their own beliefs in the core ethical values of the organization through their own actions;
e. Putting in place systems that reward ethical behaviour and punish unethical behaviour. These must be applied so that they are seen to be actively rewarding desirable behaviour and not just punishing unethical behaviour;
f. Establishing guiding principles for appropriate behaviour. These should include, but not be limited to, a code of conduct that can help guide decisions in a diverse range of situations.

Explain the role of leadership character in management.
Leadership has been defined as “the capacity to translate vision into reality”. The importance of a leader cannot be overemphasised. Leadership is the process of committing a group of people to specific goals. Without leadership, an organisation would be like a ship without an anchor. A leader not only commits his followers to organisational goals, he also pools needed resources, guides and motivates subordinates to reach the goals.
When talking about leadership in the organisational context, one question that pops up in the mind is that are managers in the organisation the same as leaders? The line dividing the two terms is blurred. Managers and leaders are essentially different kinds of people. They differ in motivation, personal history and in how they think and act. Managers carry out the management functions assigned to them but leaders have much higher goals than simply managing the affairs of the company. They have a great vision and want to take their organisation to unbelievable heights with the able support of employees. It has been pointed out that “ management is doing things right, leadership is doing the right things. Managements efficiency lies in climbing the ladder of success, leadership determines whether the ladder is leaning against the right wall.”
To be really effective in the organisation and take it to greater heights, mangers should imbibe leadership qualities. They should adopt the following traits of effective leadership:
 They should observe and absorb
 They should learn how to listen to their subordinates
 They should welcome new ideas
 Time should be highly valued
 They should set regular goals
 Achievements should always be anticipated
 Their approach should be organised.
 They should be great motivators
Leader empowers people and gets the work done. Empowerment can lead to greater commitment, which goes much ahead of self-gain. This selfless approach leads to better productivity from people. Nehru, Lal Bahadur Shastri are good examples who empowered people. Computer revolution by Rajiv Gandhi is typical example of empowerment.

Examples of managers who are effective leaders are Verghese Kurien of AMUL, NR Narayanmurthy of Infosys KV Kamath of ICICI, Deepak Parekh of HDFC, Ashank Desai of Mastek etc. these leaders have taken their organisations to great success and proved that the sky is indeed the limit if you have the vision and commitment to succeed

 

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Indian Management Thoughts and Practice

• Concept Testing

1. Harmony with Environment
With the help of YOGA, meditation man (manager) tries to purify himself within, tries to eliminate dust of anxieties, stress, and depression from his mind and tries to achieve tranquility so that he can work in present and with more concentration and achieve his targets efficiently. Thus practicing these activities he truly and only concentrates on his body and his work, but at the same time man cannot ignore the environment he is living in. As he concentrates on himself to realize his targets, he has to get harmonize with the environment for the same. He has to get adjust with the people around him, his family, his home, his office environment, his boss, subordinates, nature around etc. So that it would have positive impact on his actions, his mind, ideas will flourish in harmonized environment. He could also maintain healthy and natural lifestyle. Locating and shaping spaces in harmony with both the physical and the spiritual environment is required to empower the harmonious interaction between person and place. Harmonizing with environment will result into getting along with people, so that managers will not face any oppositions in his work, and thus will not get any pressures, depression, stress, jealousy, anxiety, overwork which are route cause of all negative happenings.

2. Self Control

Self-control is the ability to make choices about how one behaves and acts rather than relying on impulses. Instead of acting on instinct or immediate impulse, individuals - with self-control pause and evaluate a situation and the consequences that may result from their behavior.
By exercising self-control, you can learn to make appropriate decisions and choose behaviors that will be more likely to have positive outcomes.
"Self-control is critical for getting along with other people. It's thinking before acting, like looking before crossing the street. Self-control prevents impulsive behavior that may have dangerous or negative consequences."

3. Dharma, Swadharma and Detachment
DHARMA: Dharma is the law of right living, the observance of which secures the double object of happiness in your own life and also the happiness in others life. It stands for all those ideals, purposes, influences, institutions, and the ways of life and conduct that shape the character and evolution of man both as an individual and as a member of the society. The openly spirit, righteousness (godliness), and fearlessness are the three divine elements of Dharma given explained below:
Dharma is spirit (or evolves from spirit) in Indian ethos. The inclusion of dharma is like rediscovering a vacant upstair room in one’s heat chamber. ‘Do right thing (‘Dharman Chara), do good, be good and the whole chamber of our heart shines with Light of Consciousness’. In dharma, not mere action but rightness is given great emphasis.
Dharma stresses fearlessness. Divine touch is enough to convert difficulties into opportunities. Of course one should know the truth about oneself. Dharma is the ‘inner law of one’s life’, the moment we are unconscious or ignore that inner law, our life is paralyzed. We feel isolated. Our degeneration is sure. No wonder we feel missing and incomplete. Dharma is ethics and spirituality combined. Follow your Dharma and it will protect you or stand by you. One has to comply with his own Dharma. Nobody has ever violated Dharma without ultimately courting disaster. Each one has his/ her own dharma.
Dharma Of Management/ Organization
Each organization and management is considered by Indian ethos as a living entity, having heart, soul and Dharma. The traits of dharma or integrity, e.g. Courage, self discipline, goodness, righteousness and all other essential and ethical values constitute the character of management / organization just as they are of the individual character. They must follow their own dharma (collective heart/soul), otherwise pay the price. A soul less company has no life. The spirit is the root or ultimate source of all values and character, which are the invaluable assets of the credibility and goodwill of individuals, organization and management.
SWADHARMA: Gita emphasizes that Swadharma (one’s duty based on one’s swabhava – inclination and aptitude – on the work that falls to one’s lot by virtue of one’s placement in society) should be carried on for the general welfare of society and as worship of Divine, as our offering to god. This call to work in the true Yajna spirit is an exhortation to support and actively co-operate in the Divine’s evolutionary design and to live with the mother earth, safeguarding her grand ecological balance.
results are an inevitable consequence of wrong Karma.

DETACHMENT: Detachment is the:
Ability to allow people, places, or things the freedom to be themselves. Giving another person "the space'' to be him or herself. Disengaging from an over-enmeshed or dependent relationship with people. Willingness to accept that you cannot change or control a person, place, or thing. Developing and maintaining of a safe, emotional distance from someone whom you have previously given a lot of power to affect your emotional outlook on life. Ability to maintain an emotional bond of love, concern, and caring without the negative results of rescuing, enabling, fixing, or controlling. Ability to exercise emotional self-protection and prevention so as not to experience greater emotional devastation from having hung on beyond a reasonable and rational point. Ability to allow people to be who they "really are'' rather than who you "want them to be.'' Ability to avoid being hurt, abused, taken advantage of by people who in the past have been overly dependent or enmeshed with you.

What are the negative effects not detaching?
If you are unable to detach from people, places, or things, then you:
Will have people, places, or things, which become over-dependent on you. Run the risk of being manipulated to do things for people, at places, or with things, which you do not really want to do. Can become an obsessive ``fix it'' who needs to fix everything you perceive to be imperfect.
Will most probably become powerless in the face of the demands of the people, places, or things that you have given the power to control you. Will be blind to the reality that the people, places, or things, which control you, are the uncontrollable and unchangeable you need to let go of if you are to become a fully healthy, coping individual. Might become caught up with your idealistic need to make everything perfect for people, places, or things important to you even if it means your own life becomes unhealthy. Run the risk of becoming out of control of yourself and experience greater low self-esteem as a result. Run the risk of losing your autonomy and independence and derive your value or worth solely from the unhealthy relationship you continue in with the unhealthy person, place, or thing.

4. Holistic approach to Personality
Ancient Greek and Indian wisdom and insight considered the human individual, a unique living entity having self-consciousness and human self a complex of body, mind, heart, intellect and spirit or soul. We have to pay equal attention to all the aspects of human personality and consider him as a whole or complete being, having practically unlimited potential energy and power to develop himself and acquire perfection so that he can enjoy all round internal and external harmony and progress. This is called holistic approach in self management and management of any enterprise as well.

5. Dharmic Leadership
Dharmic Leadership at Work
In business organisation Dharmic Leadership means the torchbearers as to the ethical practices to be followed by the subordinate. Dharmic leadership involves placing the satisfaction of employees as a key goal and developing company policies and processes around it. It involves creating an opportunity for employees to excel by taking the time to place the best people for the job.
Based on love and a desire to uplift the quality of life for all, such leadership fully empowers individuals. Employees have an opportunity to not merely pursue economic gain, but to also contribute meaningfully from the depths of their being to the organization’s success.
The new generations of leaders are not satisfied with wealth creation alone. The new leader is wealthy, balanced and wise. She is not a slave to technology but masters it to enhance the quality of life. She practices the fundamental formula:
The new leader seeks and promotes balance as a practical weapon to improve the bottom line, enhance material prosperity and increase the speed of innovation over the long haul. Creating an environment that promotes balance will result in more productive, fulfilling, loyal employees.
Our industry has several inspiring examples of leaders (and entrepreneurs) who have created great wealth and opportunity, but we do not have many visible examples of leaders who have done this with balance at a personal and organizational level. This doesn’t mean, however, there can’t or won’t be, soon. Already, there are many such visionaries in some not-yet-visible companies. For many long-suffering employees, it cannot be soon enough.

6. Concept Of DIVINITY
This Awareness wishes to promote the spherical concept of Divinity in which the entire sphere is filled with the Mind of God, the Consciousness of God, and It Is everywhere; that entities need only to open themselves to be One with God through surrendering to that vibration of frequency of the highest, and this Awareness sees this as being a much easier concept to grasp, eliminating much of the extreme struggle of climbing a pyramid, of climbing through the Ascended Masters, trying to work your way up to be One with God.
This Awareness indicates that many entities in the world do not have a clear understanding of their relationship with God, and many of these entities want to be helped by someone whom they feel is closer to God than they are, and they see these hierarchical beings as being above them, able to lift them, able to help them rise above their own status or stature to become a little better than they are, and this, for these entities, gives them hope, and they feel that they can improve, even if they cannot be One with God. They feel that this improvement is possible, and this is the extent of their belief.
Some entities cannot conceive of moving fast on the spiritual path. They are very grateful to have a priest or someone, a higher being, an Ascended Master that they can reach for to help them become better persons, and this Awareness indicates in this way, yes, they can benefit from this, but this Awareness also suggests that the Ascended Masters approach can become a burden and a hindrance compared to retraining the entity to think in a different way; not to think of climbing a ladder or climbing the rungs of spiritual development so much as giving oneself totally to the Divine Consciousness that is everywhere present.
If one can learn to surrender self to God, all the climbing, all the Ascended Masters, all the work of becoming a better person through your effort and struggle becomes meaningless. The total surrender itself is a single act that can be of great significance in reaching higher levels of spiritual energy and evolution.
This Awareness indicates that once one has totally surrendered to God, it is then only a matter of continuing your surrender so that you live in a state of surrendering to the Divine from moment to moment. You are constantly surrendered to the Divine.
This Awareness indicates there are some entities that cannot perceive of this action, and for them, the struggle is more real, and they may take the path of the hierarchical approach.

7. Concept Of MAN
DEPENDING UPON THE INSTRUMENTS OF EXPRESSIONS OF LIFE MAN IS DIVIDED AS FOLLOWS:
The Physical Man: Operates more at the gross level of the Body.
The Mental Man: Operates more at mind, thoughts and the emotional level. Right brain more pre- dominant.
The Intellectual Man: Operates more through logic, analysis and discrimination of apparent evidence. Left-brain more predominant.
The Spiritual Man: Operates at higher level of universal values.
Greater the integration between these personalities greater is the harmony in behavior and higher are the performance levels.
DEPENDING ON DIFFERENT LEVELS OF EVOLUTION OF CONCIOUSNESS:
Stone Man: A stone is totally unaware of the external world of circumstances because of minimum level of consciousness. You just exist. We should be aware of such state of existence which does takes place once in while.
Vegetable Man: Very low level of consciousness but nevertheless higher than in the Stone man. Able to look for your own nourishment needs without any movement.
Animal Man: Much higher level of consciousness signified by more developed instincts and ability to certain level of communication and procreate.
Man Man: Highest level of consciousness in stimulus and response not only with external but also very deeper levels of internal existence. Take off at higher level can take place only from this platform.

8. Concept Of KARMA
Karma means in Indian philosophy, a duty or Dharma in a given situation. Karma or action or work is very natural for the MAN. Only dead body is non-working. The purpose of work is to bring out divinity and to achieve growth and development. Moreover, all work/ karma are to manifest divinity, hence these must be pure, good, honest and sincere. Indian philosophy also teaches to perform every work without having any attachment to result, as one should understand that every action produces result and it is inherent in the action itself and is governed by the laws of nature and one does not know all the laws which contribute to the results but one know that THINGS function very systematically and in an organized manner in this universe according to these laws. You are free to act/work or not to work or how to work. You can plan, organize and build a good strategy to perform your work, but you cannot control the result. Hence, accept, that result comes from the laws of nature/GOD. This is also called the Vedantic View OF KARMA.
The GITA considers KARMA as DUTY or SADHNA. Action is to be performed by dedicating it to the SPIRIT (Divinity) within. And whatever result/fruit comes is to be accepted as the grace of GOD (PRASAD BUDHY) with equanimity of mind. The cultivation of PRASADHBUDDHI towards the results of actions/work is KARMA YOGA (the yogic science of doing work with samatwa or it is selfless work/service to others). Nishkama Karma (fruits of work) is the result of doing your duty with discipline and devotion without attachment to work and agency (egoistic pride) and without calculations of gain or loss. The fruit i.e. Karma Fala is given as Prasad from the Divine to develop the healthy attitude.
KARMA VADA is an ethico moral law of causation for regulating karma, which includes thoughts (manasa), words (vacha) and actions (karmana). Thus, even a thought wave of envy or hatred is karma, a cause, which will produce its inevitable consequences in one way or another at some later point in time. If some one knowingly cheats his organization for personal benefit, this too is Karma, a casual force, with its corresponding backlash.
It is only the right that leads to good results like perennial prosperity and the wrong.


9. Concept Of DHARMA
Dharma is the law of right living, the observance of which secures the double object of happiness in your own life and also the happiness in others life. It stands for all those ideals, purposes, influences, institutions, and the ways of life and conduct that shape the character and evolution of man both as an individual and as a member of the society. The openly spirit, righteousness (godliness), and fearlessness are the three divine elements of Dharma given explained below:
Dharma is spirit (or evolves from spirit) in Indian ethos. The inclusion of dharma is like rediscovering a vacant upstair room in one’s heat chamber. ‘Do right thing (‘Dharman Chara), do good, be good and the whole chamber of our heart shines with Light of Consciousness’. In dharma, not mere action but rightness is given great emphasis.
Dharma stresses fearlessness. Divine touch is enough to convert difficulties into opportunities. Of course one should know the truth about oneself. Dharma is the ‘inner law of one’s life’, the moment we are unconscious or ignore that inner law, our life is paralyzed. We feel isolated. Our degeneration is sure. No wonder we feel missing and incomplete. Dharma is ethics and spirituality combined. Follow your Dharma and it will protect you or stand by you. One has to comply with his own Dharma. Nobody has ever violated Dharma without ultimately courting disaster. Each one has his/ her own dharma.
Dharma Of Management/ Organization
Each organization and management is considered by Indian ethos as a living entity, having heart, soul and Dharma. The traits of dharma or integrity, e.g. Courage, self discipline, goodness, righteousness and all other essential and ethical values constitute the character of management / organization just as they are of the individual character. They must follow their own dharma (collective heart/soul), otherwise pay the price. A soul less company has no life. The spirit is the root or ultimate source of all values and character, which are the invaluable assets of the credibility and goodwill of individuals, organization and management.

10. Concept Of YOGA
There is a lot of talk about yoga, nowadays. It is becoming a fashion to talk of yoga and especially Integral Yoga. What does it ‘really correspond to in our head’ when we speak of yoga? For most, both in the West and the East, it is primarily Asanas – Hathayoga Asanas. For those who have read a bit the literature of yoga, make it their ‘final goal of life’. But Integral Yoga is not interested in these ambitions for power. Integral yoga is done for the sake of the Divine – primarily and ultimately. For the seeker of Integral Yoga, yoga is not the aim or goal of life – it is the only way to live, the true way of life.
Aim Integral yoga is ‘the conversion of the human soul into the divine soul and of natural life into divine living.’ Normally, the old yogas reject the lower nature, the outer nature, but Integral Yoga wants to transform the lower – a total transformation of our integral being into terms of God-existence.
Bhagvadgita defines YOGA (II 48) as evenness of mind, the tranquility of mental composure in facing all the pairs of opposites. Work is to be performed without having any kind of wrong imaginations, false expectations, and anxieties for the results and fears for the future. In all these preoccupations we lose the immediate valuable moments available to us to act and to strive efficiently and effectively to achieve the desired objectives- therefore it is said, Act established in equanimity abandoning attachment.

Just as an artist forgets everything-even himself while performing on his art, if manager forgets himself in work, that he performs, his mind is said to be in YOGA. He will not be anxious for the success or failure of his activity because he knows that to worry fro the results is to worry for the future and to live in future is not to live in present. It does not mean that one should not plan or think about future implications of current decisions. Instead it insists that do all things very sincerely well – in – advance but when you start to perform the work, concentrate fully on that work only. Therefore the LORD says in GITA that apply yourself to the devotion of action. The LORD has also defined YOGA in another way. He says YOGA is nothing but dexterity and skill in action performed with evenness of mind.

Harmony with environment
Harmony with environment is required to maintain a healthy, natural lifestyle, taking responsibility for and control of their health and their life through natural healing methods. Locating and shaping spaces in harmony with both the physical and the spiritual environment is required to empower the harmonious interaction between person and place. The colour and form (part of our environment) enriches the spirit and soul, it stimulates an environment that contributes to the health and well-being of the occupants. It's a home with a healthy indoor climate that allows the house to breath, and the mind and spirit to flourish in an environment as free as possible of chemicals. LIFE abhors silence. Its voice is not a cry; it is a song. In order to hear this song, one must listen to the life that is within and without. Life teaches harmony and brotherhood. Ultimately, the study of life is valuable if a human being acquires a profounder conviction in the fact of universal brotherhood. It is spiritual knowledge of the One Self and One Life within each and all that is the key to the mystery of life. In order to acquire spiritual knowledge one must look within and without.
With the help of YOGA, meditation man (manager) tries to purify himself within, tries to eliminate dust of anxieties, stress, depression from his mind and tries to achieve tranquility so that he can work in present and with more concentration and achieve his targets efficiently. Thus practicing these activities he truly and only concentrates on his body and his work, but at the same time man cannot ignore the environment he is living in. As he concentrates on himself to realize his targets, he has to get harmonize with the environment for the same. He has to get adjust with the people around him, his family, his home, his office environment, his boss, subordinates, nature around etc. It would mean making some quite fundamental changes in our attitudes towards each other, if we were really to think of ourselves as indispensable elements of nature. So that it would have positive impact on his actions. His mind, ideas will flourish in harmonized environment. He could also maintain healthy and natural lifestyle. Harmonizing with environment will result into getting along with people, so that managers will not face any oppositions in his work, and thus will not get any pressures, depression, stress, jealousy, anxiety, overwork which are route cause of all negative happenings.
Need for hour is for the intuitive leader who can gather personnel round a shared vision, which gives meaning to their work. Such a vision takes into account the inter-relationships every management decision is bound to have today not only with the immediate surroundings but also with the state of the world as a whole on account of the increasing globalisation of the economy and of communications. Such a leader will take into account not only the turbulence of the environment today, its unpredictability and uncertainty, but also the innate inertia of the organization which militates against its adjusting rapidly to the environmental changes. Therefore to adopt changes, in order to be in accord with surrounding, Harmony with Environment is necessary.

11. Concept Of ATTACHMENT
Attachment (RAGA) means wrong imagination, false expectations, daydreams about the results of action, fears for the result, etc. One should remember while performing an action that past is dead, future is yet unborn hence concentration on present fully can only bring out excellence in performance.


• Descriptive Questions

Q.1 “ Cultural background and value systems mould the personality of an individual”. Discuss with examples.
(And)
Q.3 “ Is there a conflict in the value system of east and west?” make a comparative study.
Modern psychology regards human mind as a cluster of various desires for sensual enjoyment call libido. All human actions, thought, purpose of life are attributed to libido. It becomes necessary to probe into unconscious or deepest inaccessible levels of unconscious in which are the repressed impulses or memories. Man cannot obtain knowledge of pure truth, not can lead he lead a purely exemplary or idealistic, noble and spotless life. Human mind cannot free itself from bindings of memory or gross lustful desires in the unconscious and sub conscious mind. At the root of man’s inculcation of righteousness and adherence to truth lie a reservoir of unknown mean, brute impulse. Idealism of righteousness is just a façade. They believe in suppression or admission. Not in annihilation. Human civilization is the outcome of wholesale repression or suppression. The fundamental postulates of Indian culture thoughts are different. We have three great moral conceptions: dharma (morals & law), runa (debt or social obligation towards Supreme being – the god), parents, language and to humanity. And purushartha – dharma, artha and kaam. We that the whole universe is the manifestation of the Supreme Being, which is permanent, all pervasive, without beginning and without end, present in the finest particle of the atoms and at the same time it encompasses the whole expanse of the universe. It is called by the name Brahman. Brahman means great.

Q.2 Discuss the impact of Indian Cultural heritage on the youth today?

There are many diverse definitions of culture. The Assembly of First Nations defines culture as the customs, history, values, and languages that make up the heritage of a person or people, and contribute to that person's or people's identity. A concept of culture must include specific reference points in the historical experiences of a people. The social sciences provide the categories of investigation.
One area for consideration is the relationship between a society and its environment. The society's economic lifestyles which are based upon resource development, whether it be hunting, trapping, fishing, mining or mineral development, is also a key consideration. Social structures and interactions affect education, family, and community roles of individual members of the society. These, shaped by the environment, often determine aspects of social life such as recreation, physical fitness, moral, and spiritual development. Respect for nature and the individual are requisites for a compassionate, tolerant, and healthy society.
When people interact with nature and each other, they use tools, higher level thinking skills and language. The Aboriginal peoples tend to perceive themselves in harmony with nature while Euro-Canadian peoples tend to see nature as a resource to be exploited for individual or collective gain. In modern times, the philosophies of Indigenous peoples have been applied to problems of waste and pollution, giving rise to environmental movements. The relationship between nature and humanity has become a matter of life or death.
Four main components of culture may be said to include people, technology and objects, relations, and institutions. A culturally sensitive curricula must respect these aspects of a society and present them accurately, avoiding the pitfalls of anthropological interpretation, bias, stereotyping, and racism.
A people's concept of themselves is the most valid form of group identity. Self-determination is a struggle crucial to all societies. How the society meets this challenge defines its cultural identity. The retention or loss of traditions, customs, ceremonies, and languages will determine the identity and culture of future generations.
The retention of traditional aspects of culture allows individuals and students to be aware of their ancestry, and the value and accomplishments of their race, community, and society. This historical and cultural awareness enhances the concept of self and social worth.
Collective action, whether in a society, community, or classroom influences the development of an individual's beliefs, actions, and social skills. Cultural and community interaction is therefore vital if students are to develop fully their potential. That potential strengthens and supplements all aspects of the culture of the student and the society in which the student interacts.
What the individual then creates (products), or changes (processes), alters the structure of society which may force evolutionary changes upon a culture. Technology is the product, and politics, law, philosophy, ethics, the arts, and religion are the processes of change. Cultures alter, depending upon how these products and processes impact upon the individual and society. Interaction with these processes and products may be positive or negative.
It is the function of education, whether it be natural, cultural, social, public or private, to ensure that interactions are positive and productive for the individual and society. Thus Indian culture had influenced Indian youth.

Q.4 “ For achieving behavioral change, the core values of individuals have to be addressed”. Discuss the statement in context of Indian organisations.

In Indian organisations individuals have forgotten their core values. The values of faithfulness, simplicity, etc. and the behaviour in organisations today is very materialistic, selfish. No one cares for others kind of attitude. People are hell bent on pulling each other’s legs. It’s a rat race and everyone wants to be ahead of the other, no matter what it costs. And today the need of the hour is a behavioral change in organisations. Individuals should themselves understand the way they should work and maintain harmony and efficiency at their work place.
Organisations themselves should take note of this deteriorating situation and try and achieve behavioral change in employees by addressing the core values of individuals. The organisations like Reliance, Tata, etc. can conduct sessions which will help the employees in changing their behaviour as also will help them in taking review of the follies in their behavioral pattern.


Q5 What critical aspects of the Indian ethos need to be imbibed by an international company seeking to set up business in India?

Meaning of Ethos: characteristic spirit of a community comes out of traditions, customs, beliefs etc not necessarily cognitive, but necessarily manifest in behaviour and thinking. Oxford English dictionary defines Ethos as “The characteristic spirit & beliefs of community/ people which distinguishes one culture from the other.” It is a part of the psyche of the people in the community. Ethos has nothing to do with ethics. Ethos may be behaviour that is not desirable, but it is behaviour that is normal, spontaneous, unplanned. It is the result of the lessons (beliefs, values) that have been stored in subconscious, from the variety of experiences from childhood onwards, discussions (criticizing or praising people or events) at home, epics & fables and folklore.
Indian Ethos: Actually it is difficult to define Indian Ethos because India is a multi-cultural, multi-ethnic, multi-religious. Behaviours differ considerably between metropolitan cities & villages, between north, south, east & west, according to different religious persuasions & a number of other factors that affect culture. Indian ethos are drawn from the Vedas, the Ramayana, Mahabharat, the Bhagvadgita & Upnishaad.
An international company wishing to set up a business firm in the Indian scenario should first understand Indian ethos. Because management & managing people is an integral part of any business. People behave & respond according to their ethos. Understanding ethos helps obtaining satisfactory responses from people. Responses become more positive if the practices are as per the ethos of the persons managed.
Thus the salient ideas & thoughts for Indian ethos in management that the intending company should keep in mind are as follows:
Atmano Mokshartham, Jagat hitaya cha.
All work is an opportunity for doing good to the world & thus gaining materially & spiritually in our lives.
Archyet dana manabhhyam.
Worship people not only with material things but also by showing respect to their ever-present divinity within.
Atmana Vindyate Viryam
Strength & inspiration for excelling in work comes from the Divine, God within, though prayer, holy readings & unselfish work.
Yogah karmasu kaushalam, Samatvam yoga uchyate.
He who works with calm & even mind achives the most.
Yadishi bhavana yasya siddhi bhavati tadrishi
As we think, so we succed, so we become. Attention to means ensures the end.
Parasparam bhavayantah shreyah param bhavapsyathah
By mutual co-operation, respect & and fellow feeling all of us will enjoy the highest good both material & spiritual.

Q.6 Good Managers should be emotionally stable: (Comment)

The rules of work are changing. We’re being judged by a new yardstick: not just by how smart we are, or by our training and expertise, but also by how well we handle ourselves and each other. This yardstick is increasingly applied in choosing who will be hired and who will not, who will be let go and who retained, who passed over and who promoted.
These rules have little to do with what we were told was important in school; academic abilities are largely irrelevant to this standard. The new measure takes for granted having enough intellectual ability and technical know-how to do our jobs; it focuses instead on personal qualities, such as initiative and empathy, adaptability and persuasiveness.
In a time with no guarantees of job security, when the very concept of ‘job’ is rapidly being replaced by ‘portable skills’, these are prime qualities that make us and keep us employable. Talked about loosely for decades under a variety of names, form ‘character’ and ‘personality’ to ‘soft skills’ and ‘competence’, there is at last a more precise understanding of these human talents, and a new name for them: “Emotional Intelligence”.
What exactly is this emotional intelligence? Actually speaking it is an art of handling one’s own emotions and influencing others’ emotions. Every job differs from the other. Thus emotional requirements for each job will naturally differ in their perspective. Thus being emotionally compatible with the job is what emotional intelligence means. Since for each job, requirements are different, there’s no standard for emotional intelligence. In this fast changing world, global village will soon become a reality. Competition is increasing and job security on the other hand is reducing. Similarly manpower is being cutback and therefore, burden of work per person has increased. In such a scenario, managing wide number of activities for the organization has become inevitable for managers. Alongside, they have to deal with customers of different preferences from throughout the world, employees coming from different regions, belonging to different nationalities, they have to follow regulations of various governments, satisfy shareholders from various countries etc. Thus now, there has been a integration of different ideologies, philosophies, cultures, religions and traditions at a single place: “Work Place”!
An individual working in such an environment has to be compatible with it, has to be flexible enough, understanding and empathetic, and should be able to handle stress that comes with such a dynamic milieu. Unless an individual is capable of all this, he can’t perform well. Ultimately, an individual employee’s performance affects the organization’s performance and this in turn impacts the organisational goals. Thus an individual should necessarily be emotionally compatible with the job.
At work place, emotional stability has got following implications:
Emotional stability does not mean merely being nice. At strategic moments it may demand not being nice, but rather for example bluntly confronting someone with an uncomfortable but consequential truth they are avoiding.
Emotional stability does not mean giving free rein to feelings. Rather it means managing feelings so that they are expressed appropriately and effectively, enabling people to work together smoothly toward their common goals.
Emotional stability is not fixed genetically. It seems to be largely learned and continues to develop throughout the life.
A survey of employers reveals that they are now looking for more ‘emotionally stable and intelligent people’ rather than ‘extremely intelligent’ people. The employers want their employees to possess following:

Listening and oral communication.
Adaptability and creative responses to setbacks and obstacles.
Personal management, confidence, motivation to work towards goals, a sense of wanting to develop one’s career and take pride in its accomplishments.
Group and interpersonal effectiveness, cooperativeness and teamwork, skills at negotiating disagreements.
Effectiveness in the organization, wanting to make a contribution, leadership potential.
If this list is followed closely, it is clear that academic excellence has now lesser importance as compared to the emotional stability and emotional intelligence. Thus, managers should be necessarily emotionally stable.

Q.7 What personality traits need to be developed by an effective manager?
AND
Q.8 Portray some of the personality traits in Indian context.

Personality is a complex, multidimensional construct & there is no simple definition of what personality is. However we can examine personality in terms of a set of relatively stable characteristics & tendencies that determine our thoughts, feelings, & behaviour & which has some continuity or consistency over time.
The word personality, as used in common parlance, has a different meaning than when used by psychologists. Personality is not external appearances or social images, but refers to the organised, permanent, subjectively perceived entity, which is at the heart of all experiences, the internal structure of the individual. It is reflected in the characteristic patterns of behaviour, responses to external stimuli, the way one affects others & so on.

In short we can define personality as sum total of an individual consisting:-
- Physical health
- Emotional Stability
- Intellectual ability
- Spiritual connectivity.

One of the ways of studying personality is to locate one's position on a number of dimensions known as personality traits
Following personality traits has to be followed by an individual to be known as an effective manager.

Western view of Personality traits:
- Passive personality
- Aggressive Personality
- Manipulative personality
- Assertive personality

In the Indian view, for managers to be effective the theoretical analysis of personality is not important. Infact, it is important to be aware that there is big range or variety of personality traits.
Apart from possessing the necessary skills & attributes, managers need to develop a high tolerance for ambiguity. Indian environment is highly volatile in which constant changes takes place in the in the internal & external environment of the organisation, & managers need to be able to handle situations as they come, without experiencing undue stresses. Thus, high tolerance of ambiguity is desired managerial trait.
With the highly competitive scenario, where many MNCs have stared knocking the Indian market, managers with good mix of achievement, affiliation 7 power needs will be successful in most situations since they will have the drive to get ahead in tough situations.
With increasing emphasis on communication, Extrovert managers will fit in their jobs &managers with internal locus of control will be better performers.
Moreover Indian view of personality being ethical in concept managers with good ethic values are likely to be effective than those who do not have them.
Thus, Holistic approach of personality from Indian perspective is probably more complete & enables every manager to be effective without intervention of an external specialist.

Q.9 Personality is the product of Heredity and Environment. Explain?

Personality is to man what perfume is to flower -- Charles M.Schwab- Ten commandents of success.

The word personality has an interesting derivation. It can be traced to the Latin word "per sona". The Latin term was used to denote the mask, worn by actors in ancient Greece and Rome. This Latin word is particularly relevant to the contemporary analysis of personality. Common usage of the word emphasis the role which the person displays to public.

What Is Personality?

1. A dynamic concept describing the growth and development of a person’s whole psychological system
a) Personality looks at some aggregate whole that is greater than the sum of the parts.

2. Gordon Allport
a) Personality—the dynamic organization within the individual of those psychophysical systems that determine his unique adjustments to his environment

3. Personality is the sum total of ways in which an individual reacts to and interacts with others.
a) It is most often described in terms of measurable traits that a person exhibits.

But the most meaningful would be to include both person and role. So personality is the characteristic pattern of behaviour (communication skill / ability, good interpersonal relation, etc) and modes of thinking that determine a person’s adjustment to the environment. Personality can also be described as how person affects others.
(Charisma) how an individual understand and views himself and his pattern of inner and outer measurable traits. In the process of development individual acquires distinctiveness and uniqueness which gives him identity which enables us to recognize him apart from others.
So personality is a sum total of different traits, which also includes external appearance, communication skills, interpersonal relations, sensitivity, emotionality and intelligence. Every person is in certain aspect.


Personality Determinants

An early argument

 Personality was the result of heredity or of environment.
 Personality appears to be a result of both influences.


 Heredity

1) Heredity refers to those factors that were determined at conception.
2) The heredity approach argues that the ultimate explanation of an individual’s personality is the molecular structure of the genes, located in the chromosomes.
3) Three different streams of research lend some credibility to the heredity argument.

(1) The genetic underpinnings of human behavior and temperament among young children
(a) Evidence demonstrates that traits such as shyness, fear, and distress are most likely caused by inherited genetic characteristics.
(2) The study of twins who were separated at birth
(a) Study of more than 100 sets of identical twins separated at birth and raised separately, but the researchers found a lot in common
(3) The consistency in job satisfaction over time and across situations
(a) Individual job satisfaction is remarkably stable over time. This is indicates that satisfaction is determined by something inherent in the person.

The impact of heredity on personality is very active but still unsettled area of understanding. The problem is that geneticist’s face a major obstacle is gathering information scientifically on human beings. Studies of twins, have proved newsworthy. For example, "Jim Twin " who were identical twins separated at berth, were both named Jim, by their adopted parents. Both of their first Wife were named Linda, second Wife Betty, both named their son James Allan, both had dogs named toy. Both were mediocore student, both suffered heart attack and they both started getting migraine headache of about the same duration in the same period of their lives. These cases of similarities of twins raised apart supported the position that heredity plays a major role in personality. Despite these unusual and interesting cases, a recent comprehensive review of research found that personality is more affected by environment than any other areas of human functioning but there are still questions to be answered. Heredity Vs environment debate is still alive and no definite conclusions are yet possible. But it is clear that physical attribute are largely attributed to heredity.


 Environment

a) Factors that exert pressures on our personality formation
 The culture in which we are raised
 Early conditioning
 Norms among our family
 Friends and social groups
b) The environment we are exposed to plays a substantial role in shaping our personalities.
c) Culture establishes the norms, attitudes, and values passed from one generation to the next and creates consistencies over time.
Man cannot be separated from his environment. His consciousness is inextricably linked with his surroundings, physical and social. He adapts himself to his social environment as well as his physical environment. Both environments affect his organic and mental development. Neither nature nor nurture is more important because they are both essential for the development of the human personality. The basic relativity of nature and nurture cannot be overlooked. Sentience imports for us to be conscious of something and that something, whether painful, pleasurable, or indifferent, comes within our experience. Some experiences are agreeable and some disagreeable; some are of our own seeking and some are thrust upon us. The character, quality, and trend of such experiences depend upon and are, to a great extent, determined by our birth, nationality, place, etc. - in short, by heredity and environment.

By far the most important part of the overall environment of man is the social environment. It differs from one nation to another, one period to another, one class to another, and its influences are outside the control of any one individual. The social system needs to be remodeled such that individual success does not conflict with communal welfare. This can be achieved by encouraging such social traits as altruism, readiness to cooperate, sympathetic enthusiasm, and so forth, instead of putting a premium on many anti-social traits such as egoism, cunning, and insensitivity to human misery.

All in all, differences among mankind are the outcome of nature and nurture, of heredity and environment. Some are sharp, some are dull. Nevertheless many apparently dull persons can be restored to normal intelligence by proper education, regular exercise of the mind, and facilities for wholesome association. The way to progress lies in a ceaseless effort to develop our knowledge and intelligence. Such development is possible only when the mind is kept steady and well-poised.

Thus, Heredity sets the parameters or outer limits, but an individual’s full potential will be determined by how well he or she adjusts to the demands and requirements of the environment.

Q.10 Distinguish between Role Personality and True Personality.

True personality and Role personality:

There are two types of personality associated with every individual, one is the true personality and the other is the role personality. The true personality of a person is his true behavior, his true thinking, his conscience and beliefs, his true mindset etc. it is that aspect of an individual, which never changes irrespective of the role, he/she
plays. Take for example, a person who is very rigid in his thinking and who is also very dominant. Such a person’s behavior would not change in whatever kind of
situation or circumstances he/ she is put in. These are the people who are born with a kind of personality, they live with that kind of a personality and they die with that kind of a personality. On the other hand there is something known as a role personality. Every individual has to play a varied number of roles during his/her life span. He may have to play the role of a son, a grandson, a brother, a friend, a husband, a student, a father, a manager, a colleague and several other roles. Every role demands
a specific kind of behavior. Having a same behavior in all the roles may be unacceptable and may be considered odd and vague. No matter what’s the true personality of an individual is, every individual must be willing to change and adopt his/her behavior and attitudes along with the role he/she play’s. A true personality may not be quite different from the role personality, mainly because the role personality evolves from a true personality. True personality is a source, which guides a person’s behavior in different roles. We see so many managers, all the managers perform the jobs which are more or less of the similar nature, such as planning, organizing, directing, controlling etc, but yet we see no two mangers completely alike. This is mainly because every person has a unique personality, which is unique only to him. There may be many people alike, but no two individuals would be the same. Thus in the case of managers even though their jobs are of the same nature, their true personalities are different, their approaches of work are different and their personal characteristics and backgrounds may be different. Every human being is gifted with a good intellect and it is with the use of this intellect by way of which an individual can decide what is good or bad for him. Similarly every individual also realizes what kind of behavior is expected in what role and he tries to behave accordingly. Role personality is like a dual personality. A person tends to be more acceptable when his behavior is in accordance with the group he/she belongs to or the role he / she play’s.
Take for example, that in a group of friends if a person tries to play the role of a father rather than a friend, then his behavior tend to be unacceptable to the group of friends. Thus every behavior should be in accordance with the role one performs. Another aspect of one’s personality is that many a times’ people have a different behavior towards the society and a different behavior at one’s home. The behavior towards one’s society may many a times be a kind of an artificial behavior, which is done with an intention to impress others. Such kind of a behavior is extremely dangerous because a person tends to behave against his true personality and thus many never derive a sense of satisfaction from his behavior. Thus to conclude we can say that the personality of an individual is a very complex phenomenon, which needs
to be dealt very carefully.

Q11. Is it possible in today’s world to integrate values and management?

Q12. How far is it important for managers to search for Inner Peace in the midst of “Hustle & bustle” of corporate life?

Q13. Is business Excellence possible without compromising on integrity, quality & economy/profitability?

Q14. Analyze the feasibility of appointing an “advisor on ethical matters” in a business firm?
(And)

Q.15. Critically analyse the benefits of ethical practices in management.
"What is ethics?" Simply put, ethics involves learning what is right or wrong, and then doing the right thing -- but "the right thing" is not nearly as straightforward as conveyed in a great deal of business ethics literature.
Values, which guide how we ought to behave, are considered moral values, e.g., values such as respect, honesty, fairness, responsibility, etc. Statements around how these values are applied are sometimes called moral or ethical principles.
What is "Business Ethics"? The concept has come to mean various things to various people, but generally it's coming to know what it right or wrong in the workplace and doing what's right -- this is in regard to effects of products/services and in relationships with stakeholders.

Business ethics is now a management discipline. Business ethics has come to be considered a management discipline, especially since the birth of the social responsibility movement in the 1960s. In that decade, social awareness movements raised expectations of businesses to use their massive financial and social influence to address social problems such as poverty, crime, environmental protection, equal rights, public health and improving education. An increasing number of people asserted that because businesses were making a profit from using our country's resources, these businesses owed it to our country to work to improve society. Many researchers, business schools and managers have recognized this broader constituency, and in their planning and operations have replaced the word "stockholder" with "stakeholder," meaning to include employees, customers, suppliers and the wider community.

The emergence of business ethics is similar to other management disciplines. For example, organizations realized that they needed to manage a more positive image to the public and so the recent discipline of public relations was born. Organizations realized they needed to better manage their human resources and so the recent discipline of human resources was born. As commerce became more complicated and dynamic, organizations realized they needed more guidance to ensure their dealings supported the common good and did not harm others -- and so business ethics was born.

Note that 90% of business schools now provide some form of training in business ethics. Today, ethics in the workplace can be managed through use of codes of ethics, codes of conduct, roles of ethicists and ethics committees, policies and procedures, procedures to resolve ethical dilemmas, ethics training, etc.



Golden Rule of Ethics

1. Everything you want others to do to you, you shall do to others.

2. Do not do to others that which you do not wish them to do to you.

3. Do not do anything to others that if done to you, would cause harm to you.

These are the basis of all human and moral values. They have universal application. These are the core values to change oneself first.

A manager and worker with moral and ethical values has a state of mind; equanimity. Such a person can mobilise his and other’s energy and help accomplish wonders.
Our effectiveness at work is tied to exercising intrinsic human values i.e. moral and ethical values. These human values support established business values such as service, communication, excellence, credibility, innovation, creativity, and co-ordination. The human values help self development.
Managerial functions such as direction, control, supervision and communication, integration and coordination are much easier. The human values also help good interpersonal interactions. They reduce conflicts and disputes. They enhance reputation and goodwill of the organization.

Values and Quality of work life.

Ethics and values must be an important part of management and work culture. Human harmony and happiness are the main objectives of any enterprise to justify its survival and progress. Any organization, which cares for its people, should not ignore any unhealthy development.



Human response Management
People constitute the greatest dynamic inputs in any organization. Development of people not in skills but also in moral, ethical and spiritual values now becomes the necessary end itself. Morality and rationality are combined at the same time in HRD.

Value Driven Management.
Ethical and moral values and moral character alone can accelerate the unfolding of person’s divinity. Such a person will have poise, wisdom, harmony and peace to manage effectively others and to assure quality of mind as well as enriched quality of work. Effectiveness in performance of managers and workers is a function of values and skills together. Values should be an integral part of corporate mission, objectives. They should be expressly mentioned in the mission document.
Let us note that success of Japan is based on values familiar to Indians, using spiritual education and practices e.g. concentration, meditation, lectures of spiritual leaders, mind stilling, intuition etc to neutralize the evil effects of reckless industralisation and to synthesise the human values into management and organization. Japan has combined spiritualism and materialism and adopted value driven holistic approach in management and organization. Let the global management adopt this.



Few benefits of ethical practices in management:

Ethics programs cultivate strong teamwork and productivity. Ethics programs align employee behaviors with those top priority ethical values preferred by leaders of the organization. Usually, an organization finds surprising disparity between its preferred values and the values actually reflected by behaviors in the workplace. Ongoing attention and dialogue regarding values in the workplace builds openness, integrity and community -- critical ingredients of strong teams in the workplace. Employees feel strong alignment between their values and those of the organization. They react with strong motivation and performance.

Ethics programs promote a strong public image. Attention to ethics is also strong public relations -- admittedly, managing ethics should not be done primarily for reasons of public relations. But, frankly, the fact that an organization regularly gives attention to its ethics can portray a strong positive to the public. People see those organizations as valuing people more than profit, as striving to operate with the utmost of integrity and honor. Aligning behavior with values is critical to effective marketing and public relations programs. Bob Dunn, President and CEO of San Francisco-based Business for Social Responsibility, puts it best: “Ethical values, consistently applied, are the cornerstones in building a commercially successful and socially responsible business.”

Overall benefits of ethics: Donaldson and Davis, in “Business Ethics? Yes, But What Can it Do for the Bottom Line explain that managing ethical values in the workplace legitimizes managerial actions, strengthens the coherence and balance of the organization’s culture, improves trust in relationships between individuals and groups, supports greater consistency in standards and qualities of products, and cultivates greater sensitivity to the impact of the enterprise’s values and messages.

Last - and most -- formal attention to ethics in the workplace is the right thing to do.


Q.16. What are hallmarks of a good strategy relating to the establishment of values? Link this to the recent cases like those of Enron and stock exchange scams in India.

The Honourable Union Finance Minister, Shri Yashwant Sinha, while inaugurating the 17th Annual Session of FICCI Ladies Organization (FLO), stressed the need to formulate and adhere to a set of strong corporate governance practices. He was addressing the august audience of leading businesswomen of FICCI on "The Emerging Need for Corporate Governance".
He said : "Today we need a pragmatic approach rather than a narrow doctrinaire approach to serve our needs. It is essential that we have high ethical standards of corporate governance, followed voluntarily, having community sanctions which will have much more effectiveness. Only then our endeavour at economic reforms and liberalization will fructify".
Finance Minister exhorted the business leaders to set up examples in corporate governance of high ethical standards, which will create better value for all the stakeholders and will lead to growth, which in effect will help the country to fight poverty and debilitating diseases. This alone, he felt, will enable the Government to justify the efforts at liberalization and bringing in economic reforms.
Enron, they say, is an example of the ethics of corporations and the free market. Commentators have told repeatedly that Enron's executives were motivated by "greed" and "selfishness."
Philosopher Harry Binswanger points out, the premise behind this statement is that lying, cheating and stealing is the best way to make money and be selfish -- and the fear of prison is the only disincentive for wholesale fraud and looting. Professor Binswanger goes on to point out that this statement reflects a whole approach to morality. To be principled and moral, in this view, means to sacrifice one's interests by, say, going into social work or taking a vow of poverty. The logical flip-side is that to be self-interested, to pursue wealth and happiness -- well, that requires no principles or morality at all, just a random, range-of-the-moment grab for whatever one can get one's hands on.
This is the predominant moral outlook today, especially on the left. Ironically, Enron seems to have implemented this view of morality to a T. To enrich themselves, Enron's executives lied to shareholders and cooked the books to produce fake profits, ignoring the company's long-term financial problems. The joke was on them, though, because it didn't work. They didn't make money; instead, they bankrupted their company and destroyed their own reputations. And they don't seem to have profited even in the short term.
A social institution, including a corporate entity, derives its legitimacy from its ability and desire to fulfill social needs. It is therefore, accountable to the society. No institution, however high and mighty it is, can ignore its responsibility towards the society from which it derives its strength and sustenance.
The recurring financial crises and the scams that rocked the nation in the recent past call for a sharper focus on corporate governance. The only way we can protect our interest and also those of the public at large is to build "firewalls" by putting in place the practices of good corporate governance.Corporate Governance has succeeded in attracting a good deal of public interest because of its importance for the economic health of corporations and the welfare of society.
According the Economist and Noble laureate Milton Friedman, Corporate Governance is to conduct the business in accordance with owner or shareholders’ desires, which generally will be to make as much money as possible, while conforming to the basic rules of the society embodied in law and local customs. This definition is based on the economic concept of market value maximization that underpins shareholder capitalism. Over a period of time the definition of Corporate Governance has been widened. It now encompasses the interests of not only the shareholders but also many stakeholders. J. Wolfensohn, President, World Bank as saying that "Corporate Governance is about promoting corporate fairness, transparency and accountability".
Corporate governance also includes in its ambit, the manner in which their boards of directors govern the business and affairs of individual institutions and their functional relationship with senior management.
Corporate governance is determined by how Organizations:
• Set corporate objectives (including generating economic returns to owners);
• Run the day-to-day operations of the business and;
• Consider the interests of recognised stakeholders i.e. employees, customers, suppliers, supervisors, governments and the community and
• Align corporate activities and behaviours with the expectation that organizations will operate in a safe and sound manner, and in compliance with applicable laws and regulations.

sound corporate governance should have, as its basis, the following strategies and techniques:
• The corporate values, codes of conduct and other standards of appropriate behaviour and the system used to ensure compliance with them;
• A well-articulated corporate strategy against which the success of the overall enterprise and the contribution of individuals can be measured;
• The clear assignment of responsibilities and decision-making authorities, incorporating an hierarchy of required approvals from individuals to the board of directors;
• Establishment of a mechanism for the interaction and cooperation among the board of directors, senior management and the auditors;
• Strong internal control systems, including internal and external audit functions, risk management functions independent of business lines, and other checks and balances;
• Special monitoring of risk exposures where conflicts of interest are likely to be particularly great, including business relationships with borrowers affiliated with the bank, large shareholders, senior management, or key decision-makers within the firm (e.g. traders);
• The financial and managerial incentives to act in an appropriate manner offered to senior management, business line management and employees in the form of compensation, promotion and other recognition; and
• Appropriate information flows internally and to the public.
For ensuring good corporate governance, the importance of overseeing the various aspects of the corporate functioning needs to be properly understood, appreciated and implemented.
Ethics and values in corporate governance
No discussion on public affairs will be complete without a reference to Ethics and Values. The quality of corporate governance is also determined by the manner in which top management, particularly the Board of Directors, allocates the financial resources of the company as between themselves and other interest groups such as employees, customers, government etc. The basic qualities invariably expected in this regard are trust, honesty, integrity, transparency and compliance with the laws of the land. There is an increasing body of public opinion that would expect a business enterprise not only to be a mere economic unit but also to be a good corporate citizen. For this, its corporate governance must be based on a genuine respect for Business Ethics and Values.
To quote the words of Benjamin Franklin
" A little neglect may breed great mischief… for the want of a nail, the shoe was lost; for the want of a shoe, the horse was lost and for want of a horse, the rider was lost and for want of a rider the war was lost"
Little drops of water make the mighty ocean. Little acts of neglect might cause major scams. It takes only a small hole to drown a big ship. Therein lies the secret of good corporate governance and the key to Corporate Excellence.

Q.17 Make a comparative study of values system practiced in Japan, China and America.
Value systems in Japan, China and America differ as follows:
A Japanese employee remains in a single organization, once he joins it. Actually, this happens because, in Japan, job security is valued most. On the other hand, in China, hire-fire policy works on rampant scale. Major sectors have state-owned players. China practises communism, hence equitable wages exist everywhere. Job-hopping is virtually non-existent because of similar opportunities. In America, job-hopping has become obvious. Employees keep on changing jobs in search of better avenues.
In Japan, workers play important role in decision-making, as in they are considered as owners of the organization. They practice various concepts like quality circles and help organization towards achievement of goals. Usually group-incentive schemes are common practice in the Japan. In China, state is the owner of all the channels of production. Employees have got nothing to do with the decision-making process. In the US, capitalism has resulted into private ownership. Employees are a part of decision-making process, but usually through individual incentive scheme.
Japanese believe in ‘Keiretsu’, the long-term relationships with their stakeholders, their suppliers. It is because of their social attachment that they collectively achieve success. In China, government maintains relationships with the stakeholders as per its communist ideology, while in the US, relationships exist on professional level, and suppliers are selected on the basis of cost-effectiveness and are changed for better bargains.
The above were some of the differences in Japanese, Chinese and American ideologies.

Q.18 Short Notes

a) Harmony with Environment.
With the help of YOGA, meditation man (manager) tries to purify himself within, tries to eliminate dust of anxieties, stress, depression from his mind and tries to achieve tranquility so that he can work in present and with more concentration and achieve his targets efficiently. Thus practicing these activities he truly and only concentrates on his body and his work, but at the same time man cannot ignore the environment he is living in. As he concentrates on himself to realize his targets, he has to get harmonize with the environment for the same. He has to get adjust with the people around him, his family, his home, his office environment, his boss, subordinates, nature around etc. So that it would have positive impact on his actions, his mind, ideas will flourish in harmonized environment. He could also maintain healthy and natural lifestyle. Locating and shaping spaces in harmony with both the physical and the spiritual environment is required to empower the harmonious interaction between person and place. Harmonizing with environment will result into getting along with people, so that managers will not face any oppositions in his work, and thus will not get any pressures, depression, stress, jealousy, anxiety, overwork which are route cause of all negative happenings.


b) Self Control
Self-control is the ability to make choices about how one behaves and acts rather than relying on impulses. Instead of acting on instinct or immediate impulse, individuals - with self-control pause and evaluate a situation and the consequences that may result from their behavior.

Wouldn't it be wonderful if you could control your behavior? You'd avoid over-eating, alcoholism, all bad habits, procrastination, being late, impulsive comments and purchases, sinful behavior, misplaced objects and papers, rushing at the last minute, etc. Instead, you'd have good health, a beautifully exercised body, excellent work habits, an organized life, success, good social graces, good mental health, healthy attitudes, and practically a guarantee of getting into heaven.
The truth is: you can't control all your behavior. We are all a little out of control. Some of us are seriously out of control. For example, some of us are ruining our lives and/or killing ourselves with food, drugs, alcohol, cigarettes, careless driving and other ways. Some of us are blowing off our school work or our jobs but still believing, even though it is very unrealistic, that we will "be successful." Some of us can't get or hold a job, or hold on to love, or properly care for our children, or manage a home and pay our debts. There is an enormous difference between the people who are out of control and those in control. It is important to understand the causes of behavior and how to change it. We could all gain better control.

Thus,
Self-control is a set of behaviors which:
1.Accepts the reality that the only thing in life which you can successfully change and control is yourself.
2.Keeps in check all self-destructive, addictive, obsessive, compulsive, irrational, and unacceptable behaviors.
3.Gives you a sense of personal mastery, autonomy, and competency over your own life.
4.Is under your control and power to direct and orchestrate with no need for interference or manipulation from others.
5.Makes you the master of your own destiny because it keeps in check those barriers and obstacles which are a threat to your overall success in life.
6.Is a middle ground between perfectionism and laxity in self care.
7.Results in your life having a balance and focus by helping you to cope with new challenges in life as they come.
8.Helps you to keep your over-emotional responses in check or moderation.
9.Helps you to open yourself up from nonfeeling or pulled-in emotions so that you can have a healthy emotional life.
10.Is the foundation for healthy coping and contributes to your accepting personal responsibility for your life.
11.Keeps your life in moderation, helping you to avoid extremes in any direction.
12.Is the focus of the efforts to let go of the uncontrollables and unchangeables in your life so that you can concentrate on yourself.
13.Eliminates the need for you to be manipulative, helpless, fixing others, intimidating, overdependent or a caretaker of others.
14.Helps you to be detached from others and to keep your relationships in a healthy balance of give and take.
15.Reflects your inner desire to grow up into a mature, responsible adult.


If you don't have the capacity to change yourself and your attitudes, then nothing around you can be changed.
-The Koran

Negative Effects of not gaining self control

§ Suffer the negative impact of your out of control behaviors such as alcoholism, chemical dependency, overeating, compulsive sex, addictive relationships, compulsive shopping, gambling, smoking, etc.
§ Become deeply depressed and despondent over your weakness and inability to get your life into "check'' or 'balance.''
§ End up convinced that there is no way you can get your life into balance because the amount of work, effort, energy, and resources needed are too great an investment just for you when there are so many other people, places, and things on which you could better focus attention.

§ Experience even lower self-esteem because of your inability to believe enough in your worth and value to take action to get your life into control.

§ Find it impossible to become detached from people, places, or things who are toxic or unhealthy for you.


c) Dharma, Swadharma and Detachment
DHARMA Dharma is the law of right living, the observance of which secures the double object of happiness in your own life and also the happiness in others life. It stands for all those ideals, purposes, influences, institutions, and the ways of life and conduct that shape the character and evolution of man both as an individual and as a member of the society. The openly spirit, righteousness (godliness), and fearlessness are the three divine elements of Dharma given explained below:
Dharma is spirit (or evolves from spirit) in Indian ethos. The inclusion of dharma is like rediscovering a vacant upstair room in one’s heat chamber. ‘Do right thing (‘Dharman Chara), do good, be good and the whole chamber of our heart shines with Light of Consciousness’. In dharma, not mere action but rightness is given great emphasis.
Dharma stresses fearlessness. Divine touch is enough to convert difficulties into opportunities. Of course one should know the truth about oneself. Dharma is the ‘inner law of one’s life’, the moment we are unconscious or ignore that inner law, our life is paralyzed. We feel isolated. Our degeneration is sure. No wonder we feel missing and incomplete. Dharma is ethics and spirituality combined. Follow your Dharma and it will protect you or stand by you. One has to comply with his own Dharma. Nobody has ever violated Dharma without ultimately courting disaster. Each one has his/ her own dharma.
Dharma Of Management/ Organization
Each organization and management is considered by Indian ethos as a living entity, having heart, soul and Dharma. The traits of dharma or integrity, e.g. Courage, self discipline, goodness, righteousness and all other essential and ethical values constitute the character of management / organization just as they are of the individual character. They must follow their own dharma (collective heart/soul), otherwise pay the price. A soul less company has no life. The spirit is the root or ultimate source of all values and character, which are the invaluable assets of the credibility and goodwill of individuals, organization and management.

SWADHARMA: Gita emphasizes that Swadharma (one’s duty based on one’s swabhava – inclination and aptitude – on the work that falls to one’s lot by virtue of one’s placement in society) should be carried on for the general welfare of society and as worship of Divine, as our offering to god. This call to work in the true Yajna spirit is an exhortation to support and actively co-operate in the Divine’s evolutionary design and to live with the mother earth, safeguarding her grand ecological balance. Results are an inevitable consequence of wrong Karma.

DETACHMENT:
Detachment is the:
Ability to allow people, places, or things the freedom to be themselves. Giving another person "the space'' to be him or herself. Disengaging from an over-enmeshed or dependent relationship with people. Willingness to accept that you cannot change or control a person, place, or thing. Developing and maintaining of a safe, emotional distance from someone whom you have previously given a lot of power to affect your emotional outlook on life. Ability to maintain an emotional bond of love, concern, and caring without the negative results of rescuing, enabling, fixing, or controlling. Ability to exercise emotional self-protection and prevention so as not to experience greater emotional devastation from having hung on beyond a reasonable and rational point. Ability to allow people to be who they "really are'' rather than who you "want them to be.'' Ability to avoid being hurt, abused, taken advantage of by people who in the past have been overly dependent or enmeshed with you.
What are the negative effects not detaching?
If you are unable to detach from people, places, or things, then you:
Will have people, places, or things which become over-dependent on you. Run the risk of being manipulated to do things for people, at places, or with things, which you do not really want to do. Can become an obsessive ``fix it'' who needs to fix everything you perceive to be imperfect.
Will most probably become powerless in the face of the demands of the people, places, or things whom you have given the power to control you. Will be blind to the reality that the people, places, or things, which control you, are the uncontrollable and unchangeable you need to let go of if you are to become a fully healthy, coping individual. Might become caught up with your idealistic need to make everything perfect for people, places, or things important to you even if it means your own life becomes unhealthy. Run the risk of becoming out of control of yourself and experience greater low self-esteem as a result. Run the risk of losing your autonomy and independence and derive your value or worth solely from the unhealthy relationship you continue in with the unhealthy person, place, or thing.

d) Holistic approach to personality

Ancient Greek and Indian wisdom and insight considered the human individual, a unique living entity having self-consciousness and human self a complex of body, mind, heart, intellect and spirit or soul. We have to pay equal attention to all the aspects of human personality and consider him as a whole or complete being, having practically unlimited potential energy and power to develop himself and acquire perfection so that he can enjoy all round internal and external harmony and progress. This is called holistic approach in self management and management of any enterprise as well.

 

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ENDOGENOUS VARIABLE AND EXOGENOUS VARIABLE: They are the observable variables and usually there are more variables than the number of equations in the model. Some of the variables are supposed to be determined by forces completely outside the model and their values are assumed to be given. Such variables area called “EXOGENOUS VARIABLES”. Variables like “government policy, population etc. are the example of exogenous variables. It is treated like a parameter in solving the equations of a model.
The variables whose values are determined by the system when parameters disturbances and exogenous variables are given are called “ENDOGENOUS VARIABLES”. Endogenous variables cannot affect the value of exogenous variables. Bu the values of exogenous variables influence the value of endogenous variables.
TYPE 1 ERROR: The decision to accept or reject the null hypothesis H0 is made on the basis of information supplied by the sample observations. It is possible the conclusion drawn on the basis of a particular sample may not be true in aspect of population. When the test procedure rejects a hypothesis when it ought to have been accepted, it is called “type 1 error”.
NULL HYPOTHESIS: It implies a neutral or non-committal attitude of the statistician in testing the hypothesis. It is a hypothesis of absence of relationship or absence of difference between sample static and population parameters.
b0 = 0 is the null hypothesis.
LEVEL OF SIGNIFICANCE: The validity of a hypothesis H0 is against the alternative hypothesis H1 is tested at a certain level. The LEVEL OF SIGNIFICANCE determines the confidence within which a statistician accepts a null hypothesis. 5% is the level of significance and 95% is the level of confidence.
R 2(R SQUARE) AND R2(R BAR SQUARE)
R SQUARE. IS THE MEASURE OF “GOODNESS OF FIT: IT MEASURES HOW WELL THE REGRESSION LINE FITS THE OBSERVED DATA. R2 lies between 0 and 1
I.e. 0<R2>1
WHEN THERE IS INCLUSION OF ADDITIONAL EXPLANATORY VARIABLES IN THE FUNCTION IT CAN NEVER REDUCE R2 AND WILL USUALLY INCREASE IT. TO CORRECT FOR THIS DEFECT, WE ADJUST R2 BY TAKING INTO ACCOUN THE DEGREE OF FREEDOM, WHICH CLEARLY DECREASE AS NEW INDEPENDENT VARIABLE, KNOWN AS (R BAR SQUARE). IT IS ALSO KNOWN AS “ LOSS OF DEGREE OF FREEDOM”.
TYPE 2 ERRORS: WHEN THE TEST LEADS TO ACCEPTANCE OF A FALSE HYPOTHESIS IT IS CALLED TYPE 2 ERRORS.
CRITICAL REGION
WHILE ACCEPTING OR REJECTING A NULL HYPOTHESIS AT A GIVEN LEVEL OF SIGNIFICANCE THE REGION OF REJECTION IS CALLED AS CRITICAL REGION WEHREAS THE OTHER REGION IS CALLED AS REGION OF ACCEPTANCE.
PROBLEM OF IDENTIFICATION: PROBLEM OF IDENTIFICATION IMPLIES OUT WHETHER NUMBERICAL ESTIMATES OF THE PARAMETERS OF TH ESTRUCTURAL EQUATION CAN BE OBTAINED FROM THE ESTIMATED REDUCED FORM OF COEFFICIENT. IF THIS IS POSSIBLE THEN WE SAY THAT TH EEQUATION IS IDENTIFIED. IDENTIFICATION PROBLEM ARISE ONLY FOR THOSE EQUATIONS, WHICH HAVE COEFFICIENTS WHICH HAVE TO BE ESTIMATED STATISTICALLY.
ORDER CONDITION: FOR AN EQUATION TO BE IDENTIFIED THE TOTAL NO. OF VARIABLES EXLUDED FROM IT BUT INCLUDED IN OTHER EQUATIONS OF THE MODEL MUST BE ATEAST AS GREAT AS THE NO OF EQUATIONS OF THE SYSTEM MINUS ONE.
RANK CONDITION: IN A SYSTEM OF G EQUATIONS ANY PARTICULAR EQUATION IS IDENTIFIED IF AND ONLY IF IT IS POSSIBLE TO CONSTRUCT ATLEAST ONE NON-ZERO DETERMINANT OF ORDER (G-1) FROM THE CO-EFFICIENT OF THE VARIABLES EXCLUDED FROM THAT PARTICULAR EQUATION BUT CONTAINED IN THE OTHER EQUATIONS OF THE MODEL.
STRUCTURAL FORM AND REDUCED FORM OF SIMULTANEOUS EQUATION MODEL: The equations appearing in a simultaneous equation model are called structural or behavioral equations. They describe the structure or behaviour of the economy or a producing firm in an econometric model. The parameters of these equations are called “structural parameters”. The number of such equations in a model is equal to the no. of endogenous or jointly dependent variables.
Reduced form equations are those equations, which express the endogenous variables only in terms of the predetermined variables and the stochastic disturbances. Reduced form equations can be obtained in 2 ways
Express the endogenous variables directly as functions of the predetermined variables.
Solve the structural system of endogenous variables in terms of predetermined variables, the structural parameters and disturbances.

 

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WHY DO YOU NEED AN ADVERTISING AGENCY?

An advertisers/manufacturers prime responsibility is to manufacture product/s, offer service/s etc.
Manufacturing/servicing in itself is specialized, complicated and often difficult process. Moreover the ‘Product/Service’ needs to withstand the competition day-in and day-out. Along with it the advertiser needs to spend considerable amount on Research & Development, innovation to stay in business. He needs to continuously upgrade the product/s, services to avoid stagnation, obsolescence.
All these are daunting tasks.
It requires controlling various activities at multiple levels i.e. drawing board, work-force, procurements, pricing, distribution network, supplies, sales, market feed-back, competition etc.
Advertising undoubtedly is an important part of the entire marketing operation and plays a very crucial role. However it is a highly specialized field. Moreover in today’s environment it forms the backbone of entire marketing activity.
Thus under these circumstances Advertiser is seldom (rarely) interested in setting and running a full-fledged advertising agency.

An independent organization, like advertising agency, employs highly skilled professionals and is experienced and exposed to variety of products right from consumer durables, semi-durables, perishables, industrial etc., products. An advertiser finds this rich experience invaluable. He often knows that it is practically impossible for him to employ such a large force of highly skilled and highly paid personnel in a single department. Besides employing such a large force for one or two products is uneconomical. He also realizes the fact that if employed, they (personnel) would soon reach a point of stagnation and creativity churned out would be mediocre.

The advertiser also needs to note another important commercial aspect. Media owners (Print, TV, Outdoors, Radio) offer discounts on Volume Business to the agency because agency in turn promises/places assured business with them. These benefits are often passed on by the agency to the advertisers. However, advertiser would be deprived of these benefits, if were to go alone.

Thus Advertiser/Manufacturer finds it prudent to hire the services of an Advertising Agency.

WHAT MAKES A GOOD AGENCY?

The answer is simple. “Good advertising is advertising that produces sustained results.” So a good ad agency is the one, which delivers those results. Stating the obvious does not unlock the key to the question.

Good advertising requires thought, innovation and precise execution by the ad agency that fully understands every aspect of marketing, marketing problems, advertising tasks, media, and design.
A good advertising should make your customer feel good about what they are buying from you and it makes your staff feel that they are working for a reputed, quality conscious organization.

A good advertising agency is the one, which helps clients concentrate on their (client’s) business and help them make money. To help clients achieve this advertising agency should meet the following criterion:
Consistency:
It should build a campaign on a sound product proposition. The consistency of the campaigns message should be retained in all the mediums of advertising. The last thing you want is different messages, different propositions in different mediums leaving the consumers confused leading ultimately to destroying your own market with your own money.
Creativity
A Creative team which believes “…that what you say is more important than how you say it”. The designed ad campaign should meet the primary objective of advertising. It is neither created to satisfy creative team’s quest to win awards nor is it created to pamper client’s ego but to win customers. Creative advertising should help coincide the selfish interest of the manufacturer with the interest of the society.
Media Relations
An excellent inter-personal relationship with media is a prime requisite for an agency to service clients. That is what ultimately counts in obtaining better space, better time and better discount deals with all the mediums.
Accounts Executive
Well read, well-informed, well-mannered, jovial, hard working go-getter is what clients expect of an Accounts Executive from their ad agency to service them. He is dependable and trustworthy. He should understand client’s marketing problems thoroughly to come out with practical solutions. Thus, in short ad function like a client’s partner in this particular venture.

In essence ad agency should be competent enough to take the total responsibility of client’s advertising communication problems and functions like an extended arm of its marketing set up.

EVALUATION OF AN ADVERTISING AGENCY
The most critical step in hiring an ad agency is the final agency evaluation. Most of this though undoubtedly related to interactive chemistry, there exist some specifics they do look for:

• Does the agency show enthusiasm for you and your business?
• Do they “get it”? They don’t necessarily have to have a long history of working in your specific category, but they need to demonstrate that they understand your business
• Who are their current clients and what kind of work are they producing for them?
• What do their current clients think of them? Check their references.
• Will they bring you new thinking and be willing to challenge some of your assumptions. (If you are looking for an agency to agree with you all the time, there is a fairly good chance that you wont accomplish your objective)
• Ask them who would be working on and responsible for your account within the agency.
• Lastly, discuss compensation. In most cases, if you’ve done a good job of explaining the assignment, it won’t vary all that much between the agencies.
CRITERIA AGAINST WHICH
CLIENTS CAN ASSESS AN ADVERTISING AGENCY.
Relevant criterion include:
• Size of the agency relative to the client.
• The agency’s location and accessibility.
• The agency’s ability to provide the type of advertising and allied services that the client is seeking.
• The extent to which the agency specializes in advertising in client’s market.
• The agency’s history and track record.
• The agency’s adaptability and compatibility with that of client’s team.
• The agency’s ability to manage itself and its client’s business efficiently and cost effectively
STAGES IN CLIENT-AGENCY RELATIONSHIP
In the advertising business, the life cycle of agency-client relationship has four stages:
Pre-relationship, Development, Maintenance, and Termination.
The Pre-relationship Stage: This is the stage where client and agency are yet to get into any official business agreement. Both may know each other by reputation, previous ads for other clients, social contacts or through referrals. Initial perception usually determines if an agency is invited to pitch the account. Then through presentation process, the agency tries to give the best impression it can because it is selling and the client is buying.

The Development Stage: Once the agency is hired/appointed the development stage begins. In this honeymoon period, the agency and the client are at the peak of their optimism and eager to develop a mutually understanding profitable relationship. Expectations are at their highest, and both the sides are mutually accommodating each other through many stages. During this period the rules of the relationship get established with greater degree of understanding and mutual consent. Several delicate issues, which may arise in future are resolved right in the beginning by drafting proper terms of agreement of business transactions. It helps a great deal in maintaining a lasting association.

The respective roles get set quickly, the true presentation of all the players are discovered, and agency’s first work/campaign gets presented. It’s a time when client awaits agency’s work with great expectation but judges it quite pragmatically. Agency in the process begins to understand client, organization’s culture and philosophy, its attitude to switch over to newer ideas or recommendations.

During this period it is vital that agency establishes an extremely cordial relationship with all the players from various departments of the client’s organization. Agency also needs to understand client’s attitude towards settling of its bills.

Maintenance Stage: This is maturity stage. The client and agency both have been living and growing together. Both have reached a smooth day-to-day working relationship. Unfortunately this also could be one of the most critical phases in relationships. Both start taking each other for granted. If both do not take corrective measures the maintenance stage tends to veer towards strain. If at this stage if the rift widens and both fail to resolve the differences it’s time to terminate the relationship on an amicable note.

It is not always that the differences that lead to separation. There could be many reasons other than just a rift or complacency to accelerate termination of business contracts.

Termination Stage: The termination of contract between the two could be any of the following reasons:
1. Client’s growth is faster than the agency’s and thus agency is incapable of giving the required services.
2. International alignment/collaboration may force client to change agency or vice-versa
3. Mergers & Takeovers either of clients or agencies
4. Management Changes
5. New product introduction by client or agency signing up bigger account in the same category of products
6. Brand failures. Incompetent servicing. Stagnant creativity. Poor strategy.
7. Uneconomical media buying reflecting in poor negotiation skills of the agency.
8. Payment disputes.

 

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Brand Management



Brand Management, as we know it today has everything to do with Fortune 500 multinational company Procter & Gamble . Who would’ve known that this small time company started in 1837 would change the world’s marketing understand. Yes Procter & Gamble with its McElroy Memo popularized the concept of brand management, and the world cannot thank them enough. But what exactly is brand management? Before we proceed to talk about brand management, lets understand brands and branding.

Understanding Brands

Before we proceed to understand brands, lets get a definition for brands. According to the Dictionary of Business and Management brand is "a name, sign, or symbol used to identify items or services of the seller(s) and to differentiate them from goods of competitors." From this definition we understand that a brand can be anything, a name, sign or any symbol that will help a customer to identify one product from another. Another person once said "a brand is a collection of perception in the mind of the consumer." This is so true because from this we know that all products are not brands. It also helps understand the fact that a brand is a person’s perception of the product or service in question. A good brand should have certain characteristics these are:

* Ability to be legally protected.
* Pronounceable.
* Memorable.
* Recognizable.
* Captures attention.
* Reflects on image of company.
* Can be differentiated from competition.

Understanding Brand Management

Brand management is a process of used in marketing, in fact it comes under one of the 4Ps of the marketing mix. This means that the brands of the company have to be managed so as to create a positive image about the brand and the company in the minds of the customers. This is a difficult task and one that has to be handled delicately. The other purpose of brand management is to build customer loyalty by means of creating an emotion bond between the customers and the brand itself. People in the company responsible for brand management are the brand managers who naturally must have an understanding of the market and customers. Brand managers are responsible for creating a promise through a particular brand; the promise could be healthy food and healthy lifestyle or something on those lines. For the brand to be successful and for brand management also to be successful, it is important that the promise is met and satisfied, else it is going to seriously damage the brand image. This is what brand management is all about.

Tips for Brand Management

Here are some tips that should help in brand management:

* Consistency – where brand management, brand building or branding is concerned there should always be consistency, and it should be consistent with the ideologies of the brand it self. People should be consistently be able to identify with the brand.
* Brand Equity – an important aspect of brand management is brand equity. This is the monetary value of the brand. Think of brand management as creating brand equity and making it grow.
* Be aware of other brands – one idea used in brand management is to use sub-brands, while this is good, you do not want to confuse the customer with too many brands under one brand name.
* Do not be sidelined by profits – most companies work in a manner where they employ different product managers, who have to work on target basis. It is important for them to make profits, but brand managers have to be careful so as to not get sidelined by the money and compromise the brand image.
* Be Dynamic – an important aspect of brand management is to avoid stagnation and to be continuously changing or dynamic. There is no place for stagnation in the corporate world or the marketing world. Brands should continuously do something new to keep things fresh and the customers interested.

 

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Advertising Definition
“Any paid form of non-personal presentation and promotion of ideas, goods or services through mass media such as newspapers, magazines, television or radio by an identified sponsor”
5 M's of Advertising –
1) Mission: What are the advertising objectives?
Advertising is one part of the promotional mix, and therefore advertising objectives will be set in line with overall Promotional and Marketing Objectives, which in turn will relate to the organisations' overall Corporate Objectives. In general, however, there are three main categories of advertising objectives a business might set itself in terms of whether it seeks to Inform, Persuade or Remind the target audience.
• Inform: Informative advertising, seeks to tell the market about the product, explain how the product works, provide information on pricing, and build awareness of both the product and the company. Such objectives are normally pursued at the launch of a new product, or re-launch / up-date of an existing product. Example is about Australian rugby player Jacko for energizing batteries.
• Persuade: Here objectives are to encourage the target audience to switch brands, make the purchase, and create a preference in the market for the product as opposed to its competition. Advertising of this nature is required in highly competitive markets, where a range of products compete directly with each other. In such circumstances businesses often seek to differentiate their product through Comparison Advertising – either directly or indirectly comparing its product to that of its competitors. Example is of Visa campaign called “Its everywhere where
you want to be” that showcases desirable locations and events that don’t accept the American card. Or even the ad of Airtel
• Remind Reminder Advertising, is used to maintain interest and awareness of a well established product in the market, often in the latter stages of its product life cycle. It is often used at the Point-of-Purchase to remind consumers of the Brand. Such advertising is used by the likes of Coca-Cola and other leading brands, to maintain their position in the market
• Reinforcement advertising aims to convince current purchasers that they made the right choice. Automobile ads often depict satisfied customers enjoying special features of their new car.
















2. Money: How much can be spent?
Having identified advertising objectives, the advertising budget must be set. Determining exactly how much a business should spend on advertising to achieve the desired level of sales, is more an art than a science. Commonly, the decision is based on past experience of expenditure on advertising, and the sales subsequently achieved. There are however a number of factors that can be considered in setting the advertising budget.
Factors influencing the setting of advertising Budgets
a) Product life cycle stage: New products in the 'Launch' stage of their Product Life Cycle, will normally require greater expenditure on advertising to create product awareness, and encourage consumers to trial the product. Whilst products that have reached 'Maturity' in their product life cycle, will often require smaller advertising budgets to achieve the level of sales required.
b) Competition: The number of competitors in the market, and their expenditure on advertising competing products, will influence a business to spend to a similar or higher degree.

c) Product Differentiation: A product very similar to other products on the market may require greater expenditure on advertising to differentiate it from its competitors
d) Advertising Frequency: The number of repetition needed to put across the brand message to consumers has an important impact on the advertising budget.
e) Product Substitutability: Brands in less well differentiated or commodity-like product classes (beer, Soft drinks, banks and airlines) require heavy advertising to establish a differential image.




3. Message: What message should be sent?
Advertising Message
An advertising campaign, no matter how much money is spent, no matter what media is used, will only be successful if the Message appeals to the target audience. Given the level of advertising which bombards the average consumer, a successful advertising message must stand out amongst the advertising clutter. Thus marketing professionals are required to be creative, imaginative and innovative in developing the advertising message, both in terms of What is said, and How it is said.
What is said...?
This is often referred to as the ‘Big Idea’, and will normally address the key benefits sought by the target audience, motivating the audience to pay attention. Given the constant search for new ways to appeal to target audiences, it is difficult to categorise the content of advertising messages which a business may send, below is an example
Gillette: The best a man can get
Is an example of a message which draws attention to the brand’s position as the market leader, and the emphasis it places on quality, reminding and reassuring the audience.
How it is said
These examples underline the fact that how things are said, is often just as important as what is said. Creating attention grabbing and memorable advertising is increasingly vital, given the amount of advertising clutter in the marketplace. As with message content, advertising is constantly generating new styles of advertising, to achieve this Sony recruited the services of David Lynch, a film director whose credits include ‘Twin Peaks’. Below we include examples of some of the more established message styles.

 Personality Symbol: Many businesses will use a ‘character’ be it an actual person, or animated character, to represent the product, or the company.
 Lifestyle: Here the advert will link the product with a particular lifestyle to which the target audience is thought to aspire
 Musical:Tunes can stick in the mind, and many adverts are built around a song or piece of music

In addition the tone of the advertisement will need to be established, which can be either positive or negative. The advert may therefore promote positive feelings of fun, contentment, and happiness or take on a more negative, somber, or even threatening tone. Unfortunately the reality of advertising is such that recent research has claimed that even the best planned, and executed advertisements may only be noticed by less than 50% of the audience, and only approximately 30% will actually recall the main message of the advert.










4. Media: What media should be used?
In addition to deciding upon the content, style and tone of the advertising message, the media through which the message will be communicated to the target audience must also be selected, be it television, newspaper, magazine, radio or other.
In order to select the most appropriate media, consideration should be given to the advantages and disadvantages of each of the available types of media..
Media planners make their choices by considering the following variables:
• Target Audience Media Habits: Radio and television are the most effective media for reaching teenagers
• Product Characteristics: Media types have different potential for demonstration, visualization, explanation, beleiveliability and color. Women’s dresses are best shown in color magazines and Kodak cameras are best demonstrated on television.
• Message Characteristics: Timeliness and information content will influence media choice. For e.g. an announcement for a major sale tomorrow will need a radio or television but a message containing more of technical data might require specialized magazines or mails.
• Cost: Television is very expensive while newspaper advertising is relatively inexpensive. What counts is cost per thousand exposures.






Below are commonly accepted advantages and disadvantages of each of the major media
Media Strengths and Weaknesses
a) Television:
Strengths:
• Dynamic attention getting media, combining visual, sound and animated stimulus
• Strong potential Impact & High market coverage
• Good at demonstrating products
• Enabling targeting through selection of viewing channels and slots between specific programmes
Weaknesses
• High level of initial expenditure required
• ‘Now you see it, Now you don’t’ media, in that commercials are on the screen and gone within seconds
• Poor at communicating lengthy technical information

b) Newspaper
Strength:
• The coffee table effect – advert can be referred back to several times
• Targeting is possible through profiling readership
• Good level of market coverage




Weaknesses
• Static media, not suitable for product demonstration
• Potential for poor reproduction, sometimes limited to black and white print
• Possibility of an individual advert being lost on a page of adverts
• Short-life span, i.e. todays newspapers become tomorrows rubbish
c) Radio
Strength
• Mass use of radio by audience, particularly in cars on the way to work and home
• High geographic and demographic reach
• Targeting is possible through selection of channel and programme
Weaknesses
• Audio communication only
• Now you hear it, Now you don’t
• Lower attention levels than television from the audience
d) Magazines
Strength
• High quality reproduction, of colour images
• Targeting is possible through specialist publications
• Coffee table effect – advert can be referred back to
• Good pass on readership

Weaknesses
• Static media, not suitable for product demonstration
• Control of the positioning of adverts is often under the control of magazine editor, rather than the sponsor
• Lengthy lead time between advert being placed and magazine being published
e) Outdoor
Strength
• High repeat exposure to advert
• Relatively low cost
• Low levels of competition, in terms of advertising clutter
Weaknesses
• Limited audience selectivity / targeting possible
• Static media, not suitable for product demonstrations
• Difficult to monitor effectiveness
• Potential for damage, via weather etc.







5. Measurement: How should the results be evaluated?
Measuring the results on a continuing basis can help to see that the ads keep business’s name before the public and play a role in increasing sales.
Planning is important. Before evaluating results, the first thing to do is to decide what purpose the ads should accomplish. Advertising is necessary today. Whether you have a small business or a large one, you must tell people who you are, what you sell, and where you are. You must tell them when they wish to hear or read about it. So you must place ads in newspaper, on radio, television and outdoor posters, or send out direct mail.
As a small business owner-manager, you know the money that you spend on advertising must return enough sales and profits in added business to justify the cost of the advertising. Small firms have neither enough time nor money to engage in complicated ad measurement methods. There are basically two methods they are as follows:
1) Communication Effect Research:
It seeks to determine whether an ad is communicating effectively. It can be done before an ad is put on newspaper or broadcasted. There are 3 methods
a. Consumer Feedback: Consumers are asked questions about the proposed advertisement. They respond to questions like this:
• What is the min message you get from this ad
• How does the ad make u feel?
• What works in the ad well and what works poorly?
And like his many more.
b. Portfolio Tests: in this consumer is shown number of ads and then asked to recall the all the ads and their contents. Recall level indicates the ad’s ability to stand out and to have its message understood and measured.
c. Laboratory test: In this equipments are there to measure physiological reactions like heartbeat, blood pressure, skin response to an ad or the consumer may be asked to turn on the knob which indicated their movement- movement liking towards the ads.
2) Sales Effect Research: What sales are generated through an ad? Advertising sales is much harder to measure then its communication effect. Sales are influenced by many factors such as features, price, availability as well as competitor’s actions. The sales effect is easier to measure in the direct selling and hardest to measure in corporate image-building. In this research the companies are interested to know whether they are overspending or under spending on advertising. Researches try to measure the sales impact by 2 ways
• Historical Approach: It involves correlating past sales to past advertising expenditure by using advanced statistical techniques.
• Experimental Data: Here the companies use an experimental design to measure advertising sales impact. For e.g. Information resources offers services called behavioral scan that provides marketers in United States with data about advertising effectiveness by tracking consumer purchases tied to specific advertising.

 

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• What is Brand Equity?
• Brand Equity & Market Share
• Brand Equity V/s In Market Performance (Case Studies)
• Measuring Brand Equity
• Increasing Brand Equity
• Building Brand Equity
• Managing Brand Equity
• Brand Image
• Importance of Brand Equity
• Laws of Brand Equity
• Benefits of Brand Equity
• Do’s & Don’ts of Brand Equity
• Conclusion
• Indian Brand Equity Foundation ( IBEF )

 

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All abt Brand Mgt

 

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COPY WRITING & Corporate Advertising

 

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Direct marketing case study on Domino’s Pizza & All about HLL

 

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Brand Valuation

 

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Promotion mix

 

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