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Principles and Practices of Management
PART - A
Management
Management is to create a team which accomplishes pre-determined goals with
more efficiently in a prescribed time period as planned/decided.
Now I would like to start Management as Art and afterwards I will write about
management as science and profession in detail.
Management as an Art
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4. Art is Personalized: Every person has different ways & means of performing
Art. Similarly every individual has different type of management, we categorize
them as Democratic, Autocratic, Patternistic, Beaurocratic etc.
Management as Science
Above rules also apply to the management as social science which consists of
history of management thought. Management as a subject developed over a
period of time. Generalizations in management e.g. “if you spend more money
on advertisement sales may go up”. “If you keep employees happy there may
not be any labour strikes”.
This word may happen/may not happen make management social science.
Management as a Profession
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1. Anybody can become a manager does not require any specific qualification or
definite period of learning.
3. These parent bodies can publish desirable code of conduct but that cannot be
enforced by law in management.
Management as Profession
At the outset, it must be made clear that professional manager is a mindset that
signifies:
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From the above you will clearly notice that “management is a combination of Art,
Science and Profession”.
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Q2. “Planning cannot eliminate risk, but minimize it”. Explain this
statement with reference to the limitations of planning. Also write a
note on the various strategies adopted by Indian companies to stay
ahead of competition.
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Indian corporates show the vibrate dreams of their leaders. The tractor of
Mahindra & Mahindra Company has declared the vision to be the world’s
biggest tractor manufacturers by 2003. Powerful visions if communicated
always produce powerful results. An organization without a vision is like a
ship without a rudder.
Statement of vision and mission are not just elements of future planning.
They also provide benchmarks for an historic view. Managers will find it
difficult to develop a future strategy for a business without correctly
articulating its vision and mission. Vision & mission must be combined with
corporate values so as to have the realization of the organizational goals.
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Degrees of Delegation
Clarifying the assignments is the initial steps for an effective delegation process.
There are two steps which clarifying the assignment has to follow.
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If the superior allows participating more, he will be much clear about the
knowledge & their skills that his subordinates excels in and it will be easier for
him to decide as to which part of authority should be delegated to him. On the
whole it will increase the employee motivation.
Due to this delegation in the organization it reduces the work load of superiors
permitting them to concentrate on key areas. It also helps subordinate to grow
& develop. Due to this delegation it helps in exercising effective control over the
activities of subordinates & also provides satisfaction to subordinates in terms of
recognition and this also results in prompt decision-making.
Problems in Delegation
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Ans.
(A)Delegation of Authority
Degrees of Delegation
Clarifying the assignments is the initial steps for an effective delegation process.
There are two steps which clarifying the assignment has to follow.
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If the superior allows participating more, he will be much clear about the
knowledge & their skills that his subordinates excels in and it will be easier for
him to decide as to which part of authority should be delegated to him. On the
whole it will increase the employee motivation.
Due to this delegation in the organization it reduces the work load of superiors
permitting them to concentrate on key areas. It also helps subordinate to grow
& develop. Due to this delegation it helps in exercising effective control over the
activities of subordinates & also provides satisfaction to subordinates in terms of
recognition and this also results in prompt decision-making.
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PART – B
Ans. Service is popularly defined as “The Art and Science of managing the
experiences and exceptions of others”. A service is intangible i.e., this is not a
physical transfer of goods, yet it provides satisfaction to the customer. Good
service makes the customer feel good. It is provided by people not by machines.
The key features of services are:
Now a days Service sector is contributing more than the half of the national
income. But its contribution to the employment generation has been less than
proportionate. The share of service sector has grown considerably in Gross
Domestic Product from 35% to 47% (approximately). The total employment has
also gone up but not in the proportion of market share as per the 1999-2000 RBI
report.
One out of two Indians earn his livelihood by providing services. This is because
services is the most diverse sector of the economy, consisting of neurosurgeons,
college professors and housemaids.
Though the services sector has expanded relentlessly in the past decade, three
related events of the 1990’s gave it a pre-eminence.
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Hence,
The growth of services sector is good, but the failure of the industry to grow is
bad. The reasons for the stunted industrial growth, like restrictive licensing
system, a closed economy, anti-employment laws etc do not exists for services.
For most hi-tech service industries, the two ingredients of are:
a. Labour
b. Knowledge
Both labour and knowledge is abundant in India. But this sector cannot keep
growing by itself. Services need efficient telecom, transport, roads and power as
much as industry and agriculture. The country has to invest more and better in
human resources. India has under invested in education. The quality of human
capital varies from world class computer professionals to complete illiterate.
The government's projections of the growth of GDP in 2002-2003 are being
revised by various government departments. Within two months of the start of
the new fiscal year (which occurs in April), the then finance minister Yashwant
Sinha had announced that GDP was likely to grow by 6 to 6.5 per cent this year.
This figure was always highly suspect, for it required agriculture to grow by 4.5
per cent, industry to grow by 5.5 per cent and the services sector to grow by 6.5
to 7.5 per cent.
A more conservative and far more respected set of estimates were those of the
Centre for Monitoring the Indian Economy (CMIE), which projected 4.1 per cent -
2 per cent in agriculture, 4 per cent in industry and 6 per cent in services.
However, the 6 per cent estimate had been cooked up by the Reserve bank of
India, no less. So it became the government's new mantra. This figure was
trotted out confidently by the prime minister.
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As income per capita rises, agriculture loses its primacy, giving way first to
a rise in the industrial sector, then to the rise in service sector.
The service sector produces “intangible” goods, some well known – government,
health, education and some quite new – modern communication, information &
business services tends to require relatively less natural capital and more human
capital than producing agricultural or industrial goods. As a result demand has
grown for more educated workers, prompting countries to invest more in
education – an overall benefit to their people. Another benefit of the growing
service sector is that by using fewer natural resources than agriculture or
industry, it puts less pressure on local, regional, and global environment.
Conserving natural capital & building up human capital may help global
development become more environmentally & social sustainable.
For example in the service sector, India's foreign equity caps are a
disincentive to foreign investment. Foreign insurance companies are eager to
enter India's virtually vacant market, but New Delhi requires them to form joint
ventures with local firms and limit their investment to 26 percent. Because of a
45-year government monopoly on insurance, only a few Indian firms are
experienced enough to enter a joint venture with an foreign insurance company.
Even fewer possess the financial wherewithal to provide the 74 percent
investment necessary to start a new business. If an agreement could be reached
to lift the foreign equity cap, more foreign investors would be able to enter the
market, providing better insurance coverage for Indians in the process.
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3. Finance and taxation (How to raise the required capital? Time factor and
break-even point, Accounting challenges, Taxation implications in terms of
budgetary provisions).
Looking at the earlier information in this section, it can be said that services
sector is our new economy consisting of Information Communicating and
Entertainment Companies or Technology Media and Telecommunication
Companies.
Though India has leapfrogged into services sector, its major contribution towards
our GDP suggests:
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Ans. “Retailing consists of those business activities, which are involved, in the sale of goods or
services to consumers for their personal, family or household use.” It is the final stage in the
distribution process for goods and services from manufacturers to final consumers
Retailing involves
- Interpreting needs of the consumers
- Developing good assortments of merchandise
- Presenting them in an effective manner so that consumers find it easy and attractive to buy.
Retailing differs from marketing in the sense that it refers to only those activities, which are
related to marketing goods and/or services to final consumers for personal, family or household
use. Whereas marketing, according to American Marketing Association, refers to "the process of
planning and executing the conception, pricing, promotion and distribution of ideas, goods and
services to create exchanges that satisfy individual and organizational objectives."
Organizational buyers purchase in order to perform a task or sell a product effectively, efficiently
and at a profit. They could be industrial buyers or intermediary buyers. Industrial buyers are
those who purchase goods and services to be used in or to aid manufacturing process.
Intermediary buyers are those (i.e. wholesalers and retailers) who buy merchandise for resale.
Retailers include street vendors, local supermarkets, department stores, restaurants, hotels,
barbershops, airlines and even bike and car showrooms. Still retailing may or may not involve the
use of a physical location. Mail and telephone orders, direct selling to consumers in their homes
and offices and vending machines - all fall within the purview of retailing. In addition to it,
retailing may or may not involve a "retailer." Manufacturers, importers, non-profit firms and
wholesalers are acting as retailers when they sell goods and/or services to final consumers.
Whatever the form of retailing, a retail marketing strategy defines the execution of the marketing
process and facilitation of customer satisfaction. This retail marketing strategy involves selecting
a retail target market (i.e. the carefully/exactly identified group of final consumers that a retailer
seeks to satisfy) and then implementing the corresponding retail marketing mix (i.e. a
combination of product, price, promotion and distribution strategies that will satisfy the retail
target market). The elements of the marketing mix encompass the facets shown in the table
below. The table depicts consumer service as the crux of the whole activity.
Even though India has well over 5 million retail outlets of all sizes and
styles (or non-styles), the country sorely lacks anything that can resemble
a retailing industry in the modern sense of the term. This presents
international retailing specialists with a great opportunity.
It was only in the year 2000 that the global management consultancy AT
Kearney put a figure to it: Rs. 400,000 crore (1 crore = 10 million) which
will increase to Rs. 800,000 crore by the year 2005 – an annual increase
of 20 per cent.
Retailing in India is thoroughly unorganized. There is no supply chain
management perspective. According to a survey b y AT Kearney, an
overwhelming proportion of the Rs. 400,000 crore retail market is
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The customers of the 21st century would expect to pick his/her own products from an array of
choices rather than asking the local kirana wallas to deliver a list of monthly groceries. Thus the
way of distribution of products has gained importance in the past decade.
What is the reason that big groups like Tata’s, ITC, Piramal Enterprises and S.Kumars
are putting huge amounts of money into retailing? The answer is very simple. Now,
just a couple large organized retailers are in the market whose turnover crosses Rs.
100 crore. And in this sector anything above 25 crore counts you as a major player.
Shopper's Stop: Shopper's Stop launched its Mumbai branch in 1991 with their men's
line soon followed by women's and children clothes. The concentration was on "one
room, one ambience, and one experience" and its success resulted in opening new
branches in Bangalore and Hyderabad. Cashing on in the current consumerist trend,
the shop not only offers products but also offers an avenue to channelize operations.
For customers who cannot afford a John Miller or Wendell Rodericks original once a
year moderately priced truck show is held at Shopper's Stop.
Organized retailing is not a bed of roses for the big players also. In addition to the advent of
Internet, various issues glare at retailing. Some of them are
Human Resource:
Big retail shops do not confine their target segments for employees to undergraduates. Shoppers
Stop broke the myth of MBAs not wanting to go into the retailing career. Cross Roads and
Spencer also hire MBAs to manage their chains. However there still exists a gap between the
supply and demand of professionals. Mr. Goenka, chairman RPG Group, hopes that one of the
greatest challenges facing modern retailing in India is the availability of trained personnel. In
order to address the problem RPG Group has set up a national retail Institute in Chennai, which,
offers a variety of courses in retail management for frontline, supervisory and managerial post.
Retaining the human resources is also a major challenge for these big retailers. The bigwigs like
Crossroads offer high compensation and create a cohesive environment that makes an employee
proud to be a part of such big retail chains.
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To establish a retail shop/ Mall, the real estate and the infrastructure are very vital. The
expenditure and availability on both the accounts do hinder the growth of the retail chain. The
land ceiling restrictions and other state restrictions on land use have prevented the growth of
efficient retailing in the cities. An average investment of about Rs. 5 crore is required to establish
a mall and that explains the rush of big companies into this business. Small and individual
retailers find it difficult to pour in that much of investment. In addition to the initial investment,
to combat e-tailing, expenditure has to be incurred on technological side. This makes the retail
projects less attractive for the individual players.
In India the concept of discount stores like Wall-Mart, at which genuine, defect free international
brands are available at 50% discount, is yet to catch on. Still, the major section of customers is
conservative and choosy and prefers to go to a known retail shop than opt for a discount store.
Very few discount stores like SM2, Mumbai are at present operational. Its reach is confined to
major cities. Breaking the conventional mindset of the Indian consumers that discount stores do
not sell inferior goods will take some time.
Penetration into the rural market is what big retailers have to concentrate on for growth.
Attracting rural markets will be different from that of the urban market. For example detergent
cakes are preferred to powder and coconut oil in bottle to sachets in the rural areas. The rural
consumer are different from the urban consumers as they are more price sensitive and their
quantity of consumption would be less as their share of wallet for shopping along with
entertainment is delineated. Food and agricultural inputs dominate the rural consumers list and
whatever is left would be used to fulfill aspiration needs. Customers in the rural area are not
urbanites without money. He has a distinct identity and value system. One more challenge in the
rural market is that shopping habits vary according to seasons. During harvest time, the spending
of a rural consumer increases compares to other times. However, penetration of television,
increasing literacy levels, mobility between rural and urban areas and telecommunication (STD
Services) have increased their awareness towards branded products and entertainment.
Customized retail shops would be a big success in the rural areas too if the right strategies are
adopted.
E-Tailing
The retailing community has accepted and realized the fact that the consumers want to choose
between the variety of brand and value for money is their topmost priority. The big retailers have
to deliver a consistent branded experience. Crossroads in Mumbai is an endeavor to achieve the
same, though its target segments the upper and upper middle class. Technology has made a
difference in retailing also. E-tailing (through internet) is considered to be eroding the store
retailing slowly. Is it the real picture? With the concept of B2C (Business to Consumer
Transactions over internet) coming up at a fast pace, an intimate two-way access is emerging
between the retailer and the customers. Customized products are offered to the customers. For
instance while one buys a book through Amazon.com, a synopsis of the book, its reviews, its
prominent readers and other books of the same author are some of the information provided to
the customers. Within minutes of placing an order, one gets a confirmation thus saving time and
satisfying the customer. The penetration level of the internet is increasing at a pace that the
reach would be equivalent to what television took about 40 years and that cable about 15 years.
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In online services and the web, the retailers seek out the customers unlike the traditional model
where the customer goes to the store and locates the product. The busy life-style of the
consumers in this hectic era, tilts the preference needle towards the online retail model.
However, B2C success depends on the behavioral and attitudinal changes in customers. First, the
customers have to be familiar with Internet and have to be informed about buying on the net.
Then, the customers have to build the mentality to trust the e-sellers and be convinced on the
products quality. The KSA customer 2000 study showed that only 1% have ever used net
shopping though 40% are aware of it. But 10% of the representatives do not trust the quality in
net shopping. This shows e-tailing (stand alone) has a long way to go in India.
The major advantage of the retailers in India is that, most of the products operate on the push
factor than pull factor. In order to popularize their products the manufacturers have to attract the
customers to feel the products, physical existence and this is enabled by the retailers.
Instead of viewing e-commerce as a threat for retailing the big retailers can embrace technology
and provide value added and personalized services to the customers. In the recent times,
companies like ARCHIES have used technology to their advertisement and increased their sales.
By promoting, Fathers day, mothers, sisters, friendship, valentines, and even egg and Love at
first sight days, Archies has been successful in pulling crowd in their galleries all over India.
The big retailers can learn the lesson from Archies. A recent KSA Technopark survey finding
showed that Apparels and Consumer durables occupy the top slot in priority for shopping in
India. Apparels and Consumer durables and for that matter even footwear are those products
which gives satisfaction when you feel it. How can the big retailers use technology in this?
Technology is so flexible that it can coexist with business anywhere. The big retailers have to
have their websites to combat the competition from e-tailing. For instance for clothing, the big
retailers can show the variety and design offered by them through the net. A virtual experience
can be provided and the customer can have n option whether to visit the shop or shop from
home. If the virtual round through the shop is irresistible, the customer will definitely come to the
shop for an experience at least. Thus, in this era of Information Technology store and retailers
have to become technology savvy to satisfy customer preferences. The consumer mercantile
activities grouped into three phases, pre-purchase preparation, purchase consummation and
post-purchase interaction have to be properly incorporated with technology. The model below
explains the activities in the three phases of mercantile procedures.
Comparison of shopping
and product selection
Placement of Order
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Receipt of Product
In the product/ service search, the retailers can give search for basic products and the brands
available with the retailer, the price and discounts if any. In case of customer specific information
like size and colours, the available colours size and a preview of the same can be displayed to
attract the customers.
Comparison of the prices between the products and unique features and attributes can make the
customer more informed and aware. The mode of receipt of money and the two-way
communication i.e. between the customer and retailer will ensure better customer service. This
will also ensure that the big retailers will not loose their customers who cannot visit their store
but would prefer goods from that particular retailer.
In case of purchase consummation, placement of order would be ensured if the customer were
satisfied with the product range. An immediate confirmation for order placement would also give
a sense of satisfaction to the customer. Proper dispatch of the product and acknowledgement of
the receipt of payment would involve the customer in the process and provide him a sense of
belonging.
The after sales service plays a vital role in customer satisfaction and loyalty. By providing the
details and clauses for return of products, if such a situation arises, and personalized greeting
cards to the customers would ensure a personal touch and would motivate the customers to refer
the store to his/ her friends to visit the shop.
Even though adopting e-tailing along with store retailing would involve larger investment and
expenditure, the big retailers have to do so in order to sustain the onslaught of technology. With
the customer, especially the upper class becoming more techno- savvy, the retailers need to
formulate such strategies to retain and expand its customer base.
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Ans. Since ancient times human race has been engaged in mass activities the
cause of which varied, to encourage the feeling of brotherhood, for recreation or
just for beer and skittles. These activities include entertainment in sports. All
these activities enhanced the feeling of brotherhood and sense of belongingness
in the society. A new sector has emerged in modern times that have taken care
of all these emotions and that sector is know to be as Event Management. An
event management company works on an event from is very conceptualization
and works till the execution of the same. Any mass gathering under the sun can
be considered as an event be it a birthday party or republic day parade. To
make it memorable one has to work on the details. To take care of all these
things and to perform them professionally even management companies come in
the picture.
According to Kotler “Events are the occurrences designed for marketing interests,
it is among one of the third generation non personal marketing tools”. Event
management companies involve themselves in the planning, organizing, and
execution of an event, which could include a product or a brand launch, an
exhibition, a concert or even a conference. Events are basically an extended
form of advertising, allowing brands to associate directly with the consumer.
Event is a form of interactive advertising.
In India in every city one can easily find hundreds of event management
companies. For example in Pune there are 215 big and small event management
companies operating with different specializations.
Most of the leading ad agencies in India also have a separate event section that
ad events, Vin event, Thompson Contact are the event management arms of
Lintas Mumbai, Vigennet, Ogilvy and mathers and HTA respectively.
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Even leading television channels have separate event sections that works for the
promotion for the programme aired by their network. For example ZEE
Television has ZEE events as a separate arm for its event programming.
1. Concerts.
2. Corporate events (Brand launch etc).
3. Celebrity management.
4. Television events (Awards nights like Filmfare, Channel[V] Music
Awards etc).
5. Exhibitions.
6. Sporting events.
7. Artist Management.
8. High profile weddings, Birthday parties.
9. Parties at Discos, Night Clubs.
10. Talent Bank.
11. Direct Sales promotions.
The various steps taken by an event management company during the events
are concept evaluation, concept building and to formulate the communication
strategy. For different events we need different professionals, talent bank,
technical back up and depending on the place one may require logistics and
liaisons with local companies also. For various sections handled by any event
management company skilled professionals are required. So this sector can
cater to a vast stratum of skilled professionals. Various departments of a
company are client servicing, creative, production, administration, logistics, and
talent bank. So people from different backgrounds can work in an event
management company, all they need to have is organizational skills i.e.,
intelligent creativity.
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New opportunities that are coming up are offers like one made by ZEE Television
Networks for the entire leading event management companies of India to work
with its event section to promote the programme aired on the network.
Leading advertising agencies in India also have separate event handling sections
that along with other instruments provide very good mix for integrated
marketing.
The live concert circuit is probably the fastest growing segment of the business.
As per the industry estimates, it has grown more than 200 % between 1995 and
1999. The last three years have witnessed a spate of International Artists
coming to India to perform in live events.
With Indian Films and film celebrities always being close to the heart of Indians,
wherever they may be located, there is a huge potential for the event
management industry to organize live shows abroad. The last few years have
seen a plethora of such shows in Countries like the US, UAE, UK and South
Africa, where there is a large non resident Indian presence.
These shows have evoked tremendous response not only from the Indians
settled there but also from Pakistanis, Sri-Lankan, and UAE residents. Shows
already organized in the US featuring leading film artists have been a complete
sell-out, with people craving for more. The UAE with a large concentration of
South Indian population has been a favourite stop over for South Indian Film
Artists who have always performed to a full house. Moreover, with the growing
expatriate population in countries like Australia, Canada and New Zealand, there
is a huge untapped potential for shows/events to be organized abroad with
Indian Cinema Actors.
Problems Faced
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B. Apart from the tax rates, the payment of entertainment tax also poses a
major problem to the organizers. Currently the tax has to be paid before the
tickets of the events are sold and the relevant department stamps the tickets for
the tax paid is lost, if the tickets remain unsold. The Government should only
levy tax on the exact number of tickets sold.
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Q.13 What are the problems faced by Indian Business families after
1991? (Beginning of liberation in India)
What is their strategic response for the same?
Ans. After 1991 in this complex age of new liberalized economy, such business
families also face common problems like
a. Transnational attack.
b. Stiff Competition.
c. Low Profiles.
d. Fickle Consumers.
e. Unproductive Labor.
f. Falling Share Values etc.
In spite of these, everyone of them has expanded its range of business activities.
This is so because
1. Splits like a clash between father and son or other members of the family
leading to division of the company e.g. the Birla Groups division into many
companies after the death of Mr. G.D.Birla.
2. Successful planning to get the right person at the right place after the
business pioneer retires or expires. The rules have changed after liberalization
and the successor needs to have the right qualification or the corporate needs to
outsource a person from outside the company, thus restricting the family’s
control on the business.
3. Lack of focus where the companies need to focus more on their areas of core
competence and selling of non-revenue generating companies. For e.g. Tata
selling TOMCO to HLL.
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8. Take Overs: Since most of the Indian Companies are neither technically nor
financially sound, they are always under the threat of takeovers.
1. Raising their capital state to a comfort zone so that the fears of take over
can be kept at bay: preliberalisation, many families were running the business
with a low capital state of 15 to 20% which made them vulnerable for takeovers,
post liberalization, families like Tatas, Ambanis, Singhanias have raised their
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2. Consolidation of business by selling of non viable and non care business such
as Raymonds sold their steel division to Thyssen of Germany and cement division
to Lafarge of France. Even Tata Steel sold their cement division to Lafarge to
concentrate on Steel business.
5. Joint Ventures and Tie Ups: With globalization and government rules and
regulations, moving ahead requires strategies like joint ventures, For e.g. Hero
and Honda of Japan, Bajaj having technical collaboration with Kawasaki of Japan
etc.
7. Understanding the realities that economies are moving from sellers market to
buyers market. Business families earlier took customers for granted. Post
liberalization, the consumer has wider choice of products. Business families have
adapted themselves to the new realities, and new product launch, customer
relationship management, reliable after sales service have become the
benchmarks of the new strategies.
8. Profit will not come from cornering licenses or Beaurocratic favours but by
being competitive at the market place: This realization has resulted into giving
weightage to the performance of managers over loyalty of managers towards
families.
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to take over. They begin at the grass-root level to gain experience. A senior
family member and trust professional manager acts as mentor for them. As soon
as they are ready to take over, they enter the board room with confidence.
In this entire shake up, some business families are emerged victorious and
others have disintegrated or lost out.
To conclude, it can be said that family owned business houses is an integral part
of Indian Business Families. At every stage of liberalization, they face problems
and challenges, but they are here to stay.
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Ability to stay open to feelings, both those that are pleasant and those
that are unpleasant.
Ability to reflectively engage or detach from an emotion depending upon
its judged informativeness or utility.
Ability to reflectively monitor emotions in relation to oneself and others,
such as recognizing how clear, typical, influential or reasonable they are.
Ability to manage emotion in oneself and others by moderating negative
emotions and enhancing pleasant ones, without repressing or
exaggerating information they may convey.
Emotional intelligence is defined as a person’s self-awareness, self-confidence,
self-control, commitment and integrity, and a person’s ability to communicate,
influence, initiate change and accept change. Studies have shown that emotional
intelligence impacts a leader’s ability to be effective. Three of the most important
aspects of emotional intelligence for a leader’s ability to make effective decisions
are self-awareness, communication and influence, and commitment and
integrity. Managers who do not develop their emotional intelligence have
difficulty in building good relationships with peers, subordinates, superiors and
clients.
Emotional intelligence
Emotional intelligence is a combination of competencies. These skills contribute
to a person’s ability to manage and monitor his or her own emotions, to correctly
gauge the emotional state of others and to influence opinions. Goleman
describes a model of five dimensions. Each area has its own set of behavioral
attributes as follows.
2. Self-awareness is the ability to recognize a feeling as it happens, to
accurately perform self-assessments and have self-confidence. It is the
keystone of emotional intelligence (Goleman, 1995).
3. Self-management or self-regulation is the ability to keep disruptive
emotions and impulses in check (self-control), maintain standards of
honesty and integrity (trustworthiness), take responsibility for one’s
performance (conscientiousness), handle change (adaptability), and be
comfortable with novel ideas and approaches (innovation).
4. Motivation is the emotional tendency guiding or facilitating the attainment
of goals. It consists of achievement drive (meeting a standard of
excellence), commitment (alignment of goals with the group or
organization), initiative (acting on opportunities), and optimism
(persistence reaching goals despite set backs).
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Effective Leadership
The term effective in this essay can be defined as (1) "getting the job done
through high quantity and quality standards of performance, and (2) getting the
job done through people, requiring their satisfaction and commitment".
Major Findings
Leaders who underestimated their leadership were positively linked to social self-
confidence while leaders who overestimated their abilities were negatively
related to sensitivity. The results also suggested "self-awareness may provide
individuals with greater perceived control over interpersonal events and
consequences in their life…transformational leaders who are self-aware possess
high levels of self-confidence and self-efficacy and provide orientation for
followers". The authors suggest that self-awareness may enable leaders to
understand the emotional implications of their own feelings and thoughts.
Managers who maintain accurate self-awareness have more attributes of
emotional intelligence and appear to be more effective to their superiors and
subordinates. Interviews of three senior executives revealed that "managers
‘who played the game’ according to established norms were looked upon
favorably by superiors in performance evaluations and promotion considerations.
However, those interviews also revealed that ‘fast-track’ candidates and the
‘darlings’ of senior management are often seen as self-serving, duplicitous and
uncaring by their subordinates". The high public self-consciousness aspect of
emotional intelligence may be useful for managers who are interested in success
(to maximize performance appraisal ratings), but "this does not guarantee high
ratings of transformational leadership and effectiveness by one’s subordinates".
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(2) Do you usually know what other people are feeling, even if they do not
say so?
(3) Does your awareness of what others are going through give you feelings
of compassion for them?
(4) Can you carry on doing the things you want to do under distressing
circumstances, so they do not control your life?
(5) When you are angry, can you still make your needs known in a way that
resolves rather than exacerbates the situation?
(6) Can you hang on to long-term goals, and avoid being too impulsive?
(7) Do you keep trying to achieve what you want, even when it seems
impossible and it is tempting to give up?
(8) Can you use your feelings to help you to reach decisions in your life?
People with high Emotional Intelligence will answer yes to these questions.
However, self-assessment can only measure well for people who are self-aware.
Therefore, the above test is only a good measure for those with the important
Emotional Intelligence quality of self-awareness. There are objective
psychometric instruments, but they are still in the development stage.
Emotions at work
Low emotional intelligence brings a plethora of negative emotions, like fear,
anger and hostility. These use up a lot of energy, lower morale, absenteeism,
apathy, and are an effective block to collaborative effort.
Emotions give us great energy. Negative emotions create negative energy and
positive emotions create positive energy. We all know the tight knot in the
stomach that comes with anger and resentment, and the primitive urges it brings
to wreak revenge, or at least discomfort, to the one we see as opposing us. We
also know the excitement of being involved in developing some project, be it an
ambitious new product, or winning a football match. It is obvious in the extremes
that emotions have a huge effect. They also have a steady, day to day effect.
There are insensitive managers who try to bulldoze their staff. They think that
steady criticism, backed by a loud voice and veiled threats of redundancy, will
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Principles and Practices of Management
The reasons for this behaviour stem from emotions. Being badly treated by the
manager rouses anger, antagonism, fear, desire to get your own back, and a
general feeling of ill will. The manager probably behaves like that because of
similar feelings, caused by past experiences or they are mimicking how their boss
behaves. The behaviour evokes bad reactions, which evoke bad behaviour. Once
emotionally unintelligent behaviour starts, it creates a downward spiral of low
morale, avoidance, and negative politics.
This situation is common, and the deleterious effects are obvious to anyone who
has been there. Good work is not compatible with knotted stomachs and anxious
looking over the shoulder. Yet managers are slow to realise the value of
emotional intelligence in the workplace.
This staid point of view does not seem valid when you see and feel inspiration. It
comes with a whoosh, seemingly from nowhere. Suddenly, one thought locks
into another, a new connection is made, and we feel what is pithily known as the
"Aha" experience. There is a rush of excitement as we see a dozen possibilities
all at once, and can not wait to try them out. We write feverishly in case we
forget, we rush into the next office to tell our colleagues. We phone up whoever
we think can help us expand the ideas. Nothing will stop us. That is when ideas
really develop. The careful step by step process gets ideas into action, but their
first development comes from that heady rush of adrenaline. The logic is there in
abundance, but it is fuelled by emotional fervour.
Emotions have a part to play. The emotionally intelligent are aware of this. They
are not constantly thinking about how they feel. They do not go to the extremes
of letting it all hang out, or hiding everything. They express what they feel when
appropriate, so that molehills do not grow into mountains. They listen and
empathize, but do not drown people with sympathy.
Sometimes there is a fine line between empathy and sympathy, between self-
awareness and self-obsession, between confronting uncomfortable differences
and nit picking. Part of emotional intelligence is making these judgments.
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Initial training starts people on the road to greater emotional intelligence. This
can rapidly add to the value of the organization’s emotional capital. It can bring
change that is more profound if it becomes part of an ongoing cultural
transformation programme, backed up by coaching, on-the-job learning,
participative processes and reinforcing of strong people oriented values and
vision.
Summary
To sum up, emotional intelligence is being able to harness emotions
effectively, so that they play a role in business success. It is not
emotionally intelligent to allow the heart to rule the head. It is no
better to allow the head to rule the heart. The heart and the head must
each play an intelligent role so that business relationships and business
projects can both improve, side by side.
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