The Edge by IILM Institute for Higher Education

Editorial

Edge E

The

Editorial Board Mrs. Malvika Rai Dr. P. Malarvizhi Mr. George Skaria Shipra Jain (Editorial Assistance)

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Published by IILM Institute for Higher Education 69, Sector 53, Gurgaon-122003 Phone: 0124 - 6675621, 011 - 40934365 Email: edge@iilm.edu

ntrepreneurship is a multi-faceted phenomenon and extends beyond mere creation of business. Entrepreneurs in developing countries contribute substantially to the economic and social progress of the nation. Many of the successful global businesses of today would have begun as relatively small entrepreneurial ventures, at some point of time. India needs more entrepreneurs to propell the economy to its next level of growth and development. To improve and escalate the entrepreneurial spirit and ventures in India, there is an urgent need for the government, educational institutions and society, to collectively play a vital role. India's education system is designed largely to train students as "employees" but not as "entrepreneurs". Entrepreneurship education is about encouraging creative thinking and promoting a strong sense of self-worth and accountability. It is time for India to nurture a new generation of innovators. A survey by the Entrepreneurship Development Institute of India indicates that a large majority of young graduating students lack confidence and functional knowledge to set up a new business. India's entrepreneurial base could be marginally increased, if proper training can be facilitated for those with high entrepreneurial potentials. In the current globalised era, entrepreneurial enterprises are viewed as important sources of innovation, employment and productivity growth. Setting up of a new entrepreneurial venture in India is costly in terms of time required and cost involved. A research study by Ashish Gupta, in his article 'Starting up is not easy', points out that it takes five days to start a business in the United States and just two days in Australia. Whereas, in India, it takes as long as 89 days, and in comparison to Pakistan, Nepal, and Bangladesh, it would require 24, 21, and 35 days respectively. Too many rules and regulations involving exorbitant paper work in India are widely quoted as the causes of such delays. It is time for the Government of India to actively promote entrepreneurship in every possible way. Globally, consensus is reached by business community, educationists and political leaders on the need for a talented entrepreneural workforce, which our current educational system fails to provide. Entrepreneurship education will help youth to build sustainable communities of future through risk taking, innovation and creative thinking. Are we equipped to build a global entrepreneural village by marshaling needed resources, to shape up a future generation of entrepreneurs? Dr. P. Malarvizhi Professor, Accounting & Finance, IILM

Edge

The

Gain Knowledge Beyond Education

Contents IN-HOUSE MAGAZINE FOR LIMITEd CIRCULATION

The Making of A Special Day

On The Threshold of A New Life Journey

A Year of High Velocity Leadership Development

Developing Strategic Thinking and Enhancing Leadership Capabilities

PG Certification: Learning & Teaching in Higher Education by Prof Peter Morgan

Emerging Challenges for Businesses in the Global Political Environment: A Review

30 34 38

The Crude Shock Is The Social ‘NET’ Working? Utilising One’s Imagination and Creativity: The Power of Inner Vision

Higher FDI In Retail: To Be Or Not To Be?

Beyond the Budget: Credibility Rooted in Reality?

Rewarding for Performance: Monetary or Non-Monetary?

Quality Management in Family-Owned Manufacturing Firms

50 53 61

Book Review Campus News Alumni Lunch@ IILM Graduate School of Management 3

Gain Knowledge Beyond Education “Miles to go before I sleep...”

~ Robert Frost

he IILM’s Founder’s Day Lecture was delivered by Professor Najeeb Jung, Vice Chancellor, Jamia Millia Islamia on the 3rd of April 2012 at the Lodhi Road Campus. The lecture began with the lighting of the ceremonial lamp by Ms. Malvika Rai, Chairperson, Ms. Sapna Popli, Director and Prof. Jung. Ms. Sapna Popli, in her welcome address, introduced Prof. Jung as a person who commands deep respect from students, faculty and the government alike; a person who has won over the hearts of his students and faculty by being a part of them. Prof. Jung spoke on "Conflict Conundrum: Distance, Difference and Inclusion."

He began his lecture by defining conflict. In his lecture he cited various examples to illustrate where a conflict comes from. In his thought-provoking speech he questioned the Indian government’s governance policy. The conflict arises when the government becomes insensitive to people and their plight. He brought to the audience’s imagination, a picture of an overcrowded home, located barely 5 kms away from the Parliament. He strikingly described the living conditions of these people surviving on minimal wages and unhealthy food. The conflict, he said, arises when the report published by the Planning Commission states that Rs. 29 a day is sufficient for the survival of a common man. Prof. Jung, in his address, highlighted the issues of neglect

and sufferance; sensitivities that the government lacked in the fourth largest economy in the world. He brought to notice the mindsets of young generation in Kashmir and those living in one of the seven sisters in north-east. He outlined the government’s injustice towards aadivasis and how Naxalism was revived due to governance issues ignited by the state. Further, he added that conflicts are growing with increasing competition. The focus, today, is on control. The more one controls, the more one becomes powerful. As resources become scarce, the broad perspective of altruistic life would turn extinct. He however ended his talk on a positive note. He said that there is hope. Wisdom will come from knowledge that goes beyond education. By transcending the barrier from education to knowledge one can alter the life and nature of a young mind. The young today must come out of the shadow of cast and fatalism; and learn to share than compete. Also, we must challenge compromise of governance and demonstrate governance like that of Ashok, Akbar and even Nehru. Prof. Jung quoted many authors in his lecture to elaborate his perspectives.

Mrs. Malvika Rai lighting the lamp with Prof. Najeeb Jung at IILM Founder's Day

The occasion was concluded with the launch of IILM’s new Journal, ‘IILM Management Review’ by Prof. Najeeb Jung.

Prof. Najeeb Jung at IILM, Lodhi Road

Conflict Conundrum: Distance, Difference and Inclusion Lecture by Prof. Najeeb Jung

am deeply honoured to have been asked by Mr Anil Rai and IILM to speak before this august audience this afternoon. My initial reaction was to wriggle out of this invitation since I do not consider myself suitable enough for such an occasion and indeed for such a lecture. But my dear friend Anil’s persuasive power had done the damage. I thought long and hard and then came up with this subject “Conflict Conundrum: Distance, Difference and Inclusion”. There are conflicts around us nationally and internationally and they arrive from differences and issues of inclusion and exclusion of some or other members of society. Today the struggle for the human being is to attain happiness and the mode adopted is economic prosperity. Therefore, governments are expected to deliver just and fair administration, ensure law and order and equal

treatment of all citizens irrespective of their religion or caste or sex or sexual preferences. Government must provide us the basic wherewithal to live a life of decency and also provide us an opportunity to enhance our quality of life. The normal interpretation of this would mean economic prosperity, adequate opportunities for education, good health care, a clean environment etc. All of the above are possible through the process of governance. In many of the Scandinavian countries, some European countries as well as the North Americas and Australia, governments tend to convert effective governance into a function that provides greater happiness to their citizens. So as the human species evolves the ultimate desire is to find happiness – whether physical (in terms of physical comfort), mental or spiritual. For cen-

In many of the Scandinavian countries, some European countries as well as the North Americas and Australia, governments tend to convert effective governance into a function that provides greater happiness to their citizens

turies, philosopher kings have endeavoured to find the process through which positive and sensitive governance can provide the ideal form of existence for its citizens. In the second century in ancient Rome, Emperor Marcus Aurelius was the epitome of such efforts when he was a King by day and a philosopher by night. After Kalinga, the great Ashoka underwent the same metamorphosis to be repeated centuries later by Akbar in his experiment with the Din-e-Ilahi, and much closer to our time in the form of philosophical guidance by Mahatma Gandhi to Jawaharlal Nehru, although Gandhi did not live to guide Nehru through a spiritual governing process. In the context of what I had said before, I am restricting this talk to issues pertaining to conflicts, differences and inclusion within our own country. For the past 63 years, successive governments have, in theory, been committed to the finest principle of good governance and enhancing the life of the citizens of India. Commencing with the framing of the Constitution, that represented a break from the past, the Preamble of the Constitution set out the aims and aspiration of the people of India. The Preamble, a seminal statement to the emancipation of human spirit states: “We, the people of India have solemnly resolved to constitute India into a sovereign, socialist, secular, democratic republic, and to secure all its citizens justice, social, economic and political; liberty of thought, expression, belief, and worship; equality of status and all opportunity;

and to promote among them all, fraternity, assuring the dignity of the individual and the unity and integrity of the nation”. It is not for me to judge the intent of any of the governments that have functioned in independent India but I do believe that successive governments have tried, to provide decent livelihood to all citizens. But then I ask: Why have governments failed to provide basic amenities? And at this stage I do not even refer to the psychological state of those who live in subminimal conditions. The point that I am referring to is that the best of governments are failing to deliver good governance and after a period of time tend to shut their eyes to acute conditions of deprivation and poverty, to the extent that they begin to believe that Rs.29/a day is adequate to sustain a family. Through this lecture I draw your attention to some places that are forgotten or to those citizens who react thanks to exigencies of neglect, and are forced into situations where they break laws and risk the wrath of government, the police and the army. Two years ago, the Parliament passed the historic Women’s Right to Representation Bill. It had taken 14 years for the bill to reach this stage and the drama that was enacted in Parliament was an envy of any good playwright. There was snatching and tearing of papers, a feigned attempt at attacking the Chairman’s podium, protesting and lying on the floor of the house, marshals evicting esteemed

members of the house of `elders’, stage managed protests and interviews with TV channels. I was reminded of Nehru’s famous speech of a soul long suppressed finding utterance as my thoughts turned to the ordinary woman in the walled city of Delhi where I grew up. She wakes up at 4.30 a.m. with the magical sound of water falling from taps that are dry for the rest of the day in the upper reaches of Shahjehan’s old `Bhojala pahadi’. The taps turn off in half an hour. Today, this once imperial city is near unfit for human habitation. The houses are long past their structural life and the mohallas are unimaginably over-populated. A house that was home to the family of perhaps four or five in the 1950s now houses three times that number. The men are uneducated and spend their lives as rickshaw pullers, factory labourers and kabaadis. Physically draining regimen and terrible nutrition leaves them incapable of any real work as early as when they are in their forties. The escalating price of a basic diet – vegetables, even dal – makes it unaffordable. Staple diet is coarse wheat, coarse rice and buffalo meat. The food is cooked in the fat of the buffalo itself. This dreadful unbalanced diet leads to obesity, heart disease and other ills that follow in the train of bad food, too much or too little physical exertion and the lack of ventilated homes and fresh air. The consequences are disastrous for women. Ailing, uneducated, sullen men hang around the house. Of the two rooms in the average dwelling, the men have the first right of rest. So even on a summer afternoon in Delhi

when the temperature tops 40 degrees Celsius, the only place for women to stretch their legs is atop the roof. These women move directly from childhood to womanhood. There’s no pleasurable adolescence, no carefree teen years to be nostalgic about. Married off young, they relive their mother’s hardships in new homes. Young girls married in their teens are old women by the time they reach their thirties. Multiple pregnancies, unhealthy food and unhelpful men lead to raised cholesterol levels, creaking joints, and hypertension. No one speaks for them. There is no politician, no civil servant, no social worker, no NGO, who is not aware of the terrible lot of these poor women. I look on helplessly and quote Sahir: madad chaahti hai ye hawwaa ki beti yashodaa ki ham-jins raadhaa ki beti payambar ki ummat zulaikhaa ki beti zaraa mulk ke raahbaron ko bulaao ye kuuche ye galiyaan ye manzar dikhaao jinheN naaz hai hind par unako laao jinhe naaz hai hind par vo kahaan hain? 2010 was a difficult year for Kashmir. Over a hundred youth were killed by police or army bullets. It brought to mind Shaikh Abdullah’s favorite couplet: “Jis Khaak ke zamir main ho aatish-e-chinaar Mumkin nahin ke sard ho wo khaak-e-arjumand” (The dust that has in its conscience the fire of Chinaar trees,

Prof. Najeeb Jung delivering his lecture at IILM, Lodhi Road

That dust, celestial dust, will never become cold). Having smouldered intermittently for the past 25 years, the chinaar burnt with the youth in Kashmir playing David to India’s Goliath. The televised scenes of young men slinging stones at uniformed men evoke memories of the Palestinian Intifada and presented a disquieting parallel for any Indian. Over the past 60 years, India adopted an ostrich-like approach denying the existence of the truth that emotionally Kashmir was rarely with it. Commencing with the arrest of Sheikh Abdullah in 1953, the systematic `management’ of successive elections, the heavy presence of the Indian army, the absence of real development and the lacklustre performance of Kashmir politicians presented an amalgam that lay at the root of the disturbances of 2010. Unfortunately, perceptions outside Kashmir have always been different. The flawed development paradigm implied food and grain subsidies make rest of the India think that it is a

pampered state treated with kid gloves and it’s loyalty has been suspect. Over the past six decades, no government sensitised mainland India to the unique situation of Kashmir. There is no sensitisation to affirmative action and no dissemination of information that if there is Article 370 in Kashmir, there is also Article 371A for Nagaland, 371B for Assam, 371C for Manipur, 371D for Andhra Pradesh, 371F for Sikkim and 371H for Arunachal Pradesh. Here there has been a question of trust. With the exception of Sheikh Abdullah, a succession of comprador Chief Ministers have played the game of compromise and pleasing New Delhi. There has hardly been a Chief Minister who has governed with the sincerity that Kashmir required. Throughout our youth, we have seen Kashmiri coolies carrying our loads in hill stations in far off stations as Delhi, Bhopal and Nagpur. Today, we protest at the Bihar farm labour working at farms in Punjab or as taxi drivers in Mumbai. We never spared a thought for the

Kashmiri young men who stayed away from homes for months far from their cool valley on the plains of northern and western India to eke out a miserly living. Over a hundred thousand Kashmiris who have been rendered homeless from insurgency have not been resettled and are reverting to militancy, petty crime and some even to prostitution. Lack of effort to resettle pundits in other parts of India or to encourage the Kashmiri Muslims to invite back the pundits to the valley shames us all. Mass graves in Kupwara remind us of Srebrenica and Bosnia. These graves belong to people unaccounted for and thousands remain missing. The mass rape in Konan Puspara in 1991 still goes unpunished. Even children are arrested under the Public Security Act and thrust into jail with criminals and radicals. What will this generation grow up to be? This is the sensitivity that I speak of as indeed the failure of governance to address issues germane to life. Let’s move on to another burning issue: that of Naxalism in large parts of eastern India.

The incarceration of Binayak Sen reminded me of the sophist philosopher Thrasymachus’s definition of justice in Plato’s Republic. Challenged by Socrates to define justice he says: “I proclaim that might is right, and justice is in the interest of the stronger…. The different forms of government make laws, democratic, aristocratic, or autocratic, with a view to their respective interests; and these laws, so made by them to serve their interests, they deliver to their subjects as ‘justice’, and punish as ‘unjust’ anyone who transgresses them.” This is the nature of justice meted out to Binayak Sen who spent a lifetime working among the adivasis of Chhattisgarh. Not many living in cities are fully aware of the harsh life in these areas. The fact remains that adivasis who are the original habitants of the forests are steadily been ousted from their habitat. With their beliefs and culture repeatedly challenged, they are left with three stark choices. One, to fall in line, grab some peripheral reservations in jobs offered by the state, learn to tolerate the perpetual harassment and exploitation

of their women and watch their culture being destroyed in the name of development. Two, seek shelter deeper into the forests, and wait for the forest guards and rangers, aided by insensitive revenue officials, to slowly catch up and destroy their huts, crops and drive them away again. Or, three, stand up and protest against state oppression. Over the past century, the adivasis of India living in a wide arc spreading across the north east, 24 Parganas, parts of Bihar, Jharkhand, Chattisgarh, Madhya Pradesh and Andhra Pradesh have been sacrificed to the cause of development. Each time a steel city sprang up starting from Jamshedpur to Durgapur to Rourkela and Bhilai, local residents lost a great deal. Lands of the adivasis were acquired at a pittance. Some of the able-bodied became factory workers, the majority of men and women lost out. Adivasis who lived in the forests and protected the flora and fauna for centuries were told that the land and forest belonged to the state. Resistance has been ruthlessly crushed, a perpetual reminder of their social backwardness, feeble political voice and inability to be heard. Local government officials and petty contractors steeped in corruption and insensitive to local cultural traditions have presided over the interior hinterlands and deprived these areas of even basic infrastructure like roads, drinking water, schools, small irrigation facilities or markets where local produce can be sold.

Audience interacting with the speaker on Founder’s Day

Is it not strange that a state which allows a Phoolan Devi to be a member of the Lok Sabha, negotiates truces and offers am-

nesty to dacoits and terrorists to buy peace, fails to try the accused in communal riots, is unable to prevent gender or caste atrocities, is inept at combating corruption within politics, industry, civil service and indeed the judiciary – endeavours to shut out voices that speak in favour of preserving local culture, protecting the rights of the tiller, protest against exploitation, corruption and lack of basic infrastructure? How is it that this land of the Budha, Mahavira and Gandhi now turns a blind eye and deaf ear to the thousands of farmers who commit suicide in Maharashtra, Andhra Pradesh and Madhya Pradesh? Allama Iqbal once said: “Jis khet se dehkan ko mayyassar nahi roti, Us khet ke har gosha-e-gandum ko jalaa do” (burn every stalk of grain from the fields that cannot provide food to the tiller). Naxalism is a shrill alarm and an indication of sheer poor administration and a complete lack of sensitivity. Here again I quote a statement of the Director General of Chattisgarh Police.

humanity. With increasing competition, civilization is more and more faced with the cruel reality of the “controllers” wanting to grab more and more. In a way this is becoming an unspoken principle for the precipitation and perpetuation of power. If you have something, get more of it. Rather than share with anyone distant, first share with your nearest family, then with your closest relatives and friends, then perhaps your mohalla or your village and so on. But as resources become scarce, and competition grows, the broad principles for an altruistically-oriented life are becoming somewhat extinct. In the early thirties, a halfbaked philosopher, Ayn Rand introduced the concept called Objectivism to Americans. This was the theoretical arm of Capitalism, when she championed Capitalism to such an extreme that sharing of anything became a sin. An unfortunate victim of the rough treatment to the welloff under the Soviet revolution, Rand became a somewhat demented champion of all that is selfish and wrong with Capitalism. But while she lost some of her popularity in her lifetime she

was rarely intellectually demolished till she mercifully ended up clinically sick. What then is the solution? If sensitivity were to slowly die among us how will the poor or the weak, the old and the infirm, live a life of pride and equality? Can we as a species raise the bar of what is acceptable to society? What can possibly be the process of raising intellectual levels that can sensitise us and give us a greater sense of justice and fairness. Today the stronger nations can pulverize any country that is not in agreement to its worldwide perceptions. All it takes is a Colin Powell with his formidable military pedigree or a young Tony Blair’s address to the British people to legitimise the destruction of Iraq. The World remains apprehensive to the idea of nuclear weapons with Iran. Let us never forget they had similar apprehension on India’s nuclear programme. Why can't the mighty Western powers accept the same maturity from an Iran, India or even Pakistan when it comes to nuclear weaponry as it accepts from other western nations. Who first

“Dalit movements, women’s empowerment movements, human rights movements, environmental protection movements” are all suspect because Naxalites want to penetrate and hijack “movements not linked with CPI (Moists).” Are these statements acceptable coming from the seniormost echelons of civil administration? The issue that I endeavour to draw your attention to concerns

Prof. Najeeb Jung and Mrs. Malvika Rai launching the new journal, IILM Management Review

used the napalm bombs on human beings? Have we forgotten the picture of the young girl feeling the killing fields of My Lie in Vietnam fleeing brutal American onslaught. Let us not erase the memories of Abu Graib and the Guantanamo bay so easily? The question that worries me is that is our civilization now condemned to such irrational actions. I have no intention of making this lecture into a source of answer for potentially impossible questions, but I certainly once again draw your attention back to our own country because here, with our cultural and spiritual strength, there is still hope. I believe that this most distinguished audience has heard of a book by the world famous critic on philosophical work, Will Durant. His most popular book has been the “Story of Philosophy” in which he has written about and commented on the works of a number of philosophers starting from Socrates and ending with Gandhi. But there is another relatively less known work of his called the “Pleasures of Philosophy”. In this he laments that while there is so much emphasis in teaching maths and the sciences, the mother of knowledge, philosophy, is rarely taught and here lies the crux of the problem. With the best of students going for the study of sciences, the social sciences have really taken a back seat. The best brains sit in research labs, while the administration is managed by the second run and the dregs are thrust into power. They have the money, the muscle and their own caste and community behind them.

The panacea for evolved thinking does not lie in the blind pursuit of religion, or the strong preservation of culture. It cannot lie in dogma nor in pure scientific progress and mathematics. True evolution of the human being comes from ‘knowledge’. And knowledge is the handmaiden of introspection, of attempts to understand the ‘nizam’ around us, of an appreciation of the miracle of this ‘qayanat’, this magnificent world that deserves more than we are giving it. So the question before us, simply in the context of India, is ‘whether we are even trying to bequeath our children with knowledge, this word ‘knowledge’ goes beyond the meaning of the term ‘education’. And this is where we falter. The entire education system today is oriented towards ‘educating’ our future generations, not making them seekers of knowledge. Can we educate our young to perceive the swiftness with which things will vanish away: their bodies in the world of space, and their remembrance in the world of time. Can we open to our youth that in a nutshell the body is as coursing waters, all that is of soul as dreams and vapours, life a warfare, a brief sojourning in an alien land, and after repute, oblivion. A life of nature is what they must be taught to live, for in nature their shall be kindness and benevolence. This youth will lead us to deliverance. We will be able to build an India with semblance of idealism. We must challenge compromise that is the first principle of Governance today. We must invoke a rare sensitivity towards our citizens, a rare respect that unfortunately has been taken away by centuries of

caste dominance, feudalism and faulty education systems. As Dr. Amartya Sen has said, it is important to understand the long tradition of accepted heterodoxy in India that at all points of time we have given space to all religions – Budhism, Jainism, Agnosticism and Atheism and allowed them to compete with each other and in many ways transform themselves in now what we called Hinduism (a much later term). With the passing of centuries and in the wake of a number of thinking rulers, sawants, sufis and bhakts, we have evolved into a uniquely secular society. We celebrate celebrations of diversity in Kalidas’s Meghdutam (the cloud messenger), which applauds the beauty of variety of human custom and behaviour. A similar commitment to accepting and exalting diversity comes in the prose and poetry of Amir Khusrau in the 14th Century, to the rich culture of non-sectarian religions poetry drawing on Bhakti belief of Hinduism and the Sufi tradition of Islam. Therefore, secularism is part of our great inheritance. We must now transcend religion and cast and region and instill a firm belief in the young of India in a nation that can govern with strength and confidence, exhibit governance on similar ideological terms as that of Ashok, Akbar, Dara Shikoh and Jawaharlal Nehru. I am sure these were the thoughts which went through Nehru’s mind in the last few years prior to his demise when he repeatedly quoted Robert Frost “The woods are lovely, dark and deep. But I have promises to keep, And miles to go before I sleep.”

The Making Of A Special Day IILM Graduate School of Management celebrates its 17th Annual Convocation

he 17th convocation ceremony of IILM Graduate School of Management Business was held on May 2nd 2012. Students who had successfully completed their Post Graduate Diploma in Management, Retail Management, International Business and Financial Services (2009-11) were awarded diplomas. Shri. Digvijaya Singh, General Secretary, All India Congress Committee, was the Chief Guest for the ceremony. Shri. Singh lit the ceremonial lamp after the academic procession was seated on the stage. Dr. Meena Bhatia, Director, IILM Graduate School of Management sought the permission from the chief guest to declare the convocation open. Dr. Meena Bhatia welcomed the graduates. Thereafter, she introduced the chief guest and highlighted Shri. Singh’s extensive contribution to the Indian politics. Shri. Digvijaya Singh received his early education in Daly College, Indore. An engineering graduate from Govindram Saksesaria Technology Institute, Indore, Shri. Digvijaya Singh joined active politics in 1971. Gifted with outstanding organising skills, he became the President of Raghogarh Municipal Committee at a young age of 22. He distinguished himself in this capacity for three years before making it to the Board of Directors of Guna District Cooperative Bank. Shri. Singh was elected to the Lok Sabha from

Rajgarh constituency in 1984. He has held the post of Madhya Pradesh Congress Committee President twice. Shri. Digvijaya Singh took over as the Chief Minister of Madhya Pradesh on December 7, 1993. Shri. Singh after being re-elected for the Vidhan Sabha took oath as the Chief Minister on December 1, 1998 for the second term. He continued as Chief Minister till December, 2003. He was made a Member of the Congress Working Committee in February, 2004 and General Secretary, All India Congress Committee, New Delhi in the same year and continues in the above position. Dr. Meena Bhatia took the graduating students and the audience through the journey at IILM Graduate School of Management, more specifically in the last two years. She said, “IILM, as an academic institution believes in constantly auditing its systems and processes and thus re-inventing itself in tune with the dynamic characteristics of the environment. It continuously strives to improve in all its facets. Starting from a batch of 60 students in 1993, IILM today has grown with 5 campuses and programs catering to about 1500 students each year. She also mentioned our endeavors in school education. Besides schools in Delhi, Chandigarh, Jaipur & Lucknow, IILM has been running a school by the name of ‘Banyan Tree School’ in Jagdishpur since 2007. Currently, over 800 stu-

What I gathered today, is that you have studied subjects as diverse as they could be, which is the crux of what management is. A good manager must have the widest possible knowledge and at the same time ultimately focus on specialisation. Today after the Postgraduate diploma, you would be venturing in your journey of life and starting an absolutely new chapter of your life out of the school and college. - Shri. Digvijaya Singh

Shri Digvijaya Singh

dents are studying there. The aim is to provide the best quality education in English medium to these students at a minimal fee of Rs. 500/- per month. We also run afternoon schools for economically weaker children free of cost. In our Delhi school we have over 300 children.” With the above overview, Dr. Bhatia said: Today marks an important day in your lives and a significant milestone in your life’s journey. It is a moment of pride for you as much as it is for your faculty members, parents and those who had any part in shaping your life so far. Here, I would like to mention the great opportunities which will define the future of India. Beyond the churning and struggle against corruption, the big picture of social and economic transformation of our country is emerging. PWC report predicts India as the fastest-growing economy, given its younger demographic and lower base. The famous Goldman Sachs report predicts that India along with China and USA will be the three top economies of the world by 2050. You will work

Postgraduate students and Faculty members at IGSM Annual Convocation 2012

in the next 40 years in the phase where our economic growth and social change will be highest and fastest. In this growth phase, some of you will climb your way to the top of Fortune 500 companies, while others will have created them. Some will be charismatic political leaders while a number of you will choose to dedicate your lives to helping others through social work or by bringing up a family. In whatever you do, you will all face challenges - after all this is what makes life exciting - but I am sure you have been trained here to overcome them. The post graduate program in management is our main stream program that pre-

Dr. Kulwant Rai Silver Medal awarded to Mr. Girish Balakrishnan topper of PGDM-Finance

pares students for individual enterprise and careers in business & management. Close to 200 students are graduating today from IILM Graduate School of Management in postgraduate program in Management, Financial services, International Business & Retail management. Our aim is to maximize the learning value-add in the time that the student spends with us. The curriculum is bench-marked with the best schools in India and across the world but also updated constantly with the feedback from the industry. A pro-active board of governors that meets three times a year to review the program structure, course con-

Dr. Kulwant Rai Silver Medal awarded to Ms. Nisha Jain topper of PGDM-Marketing

tent and delivery gives us continued feedback in this area. Dr Bhatia said: “I am proud to mention that IILM is amongst the very few institutions in India that have been accorded MBA equivalence for its Post Graduate Diploma in Business Management by Association of Indian Universities (AIU). The IILM diploma is recognized across the world for employment, higher education and research opportunities. That brings me to our primary reason for being here today…. the graduating students. Today marks an important day in your lives and a significant milestone in your life’s journey. It is a moment of pride for you as much as it is for

your faculty members, parents and those who had any part in shaping your life so far. India, currently boasting the fourthlargest economy in the world in terms of purchasing power parity (PPP), will become the largest by 2050, according to the 2012 edition of The Wealth Report released in March 2012. According to the report, by 2050, the Indian economy is expected to be worth $85.97 trillion while China’s GDP would stand at $80.02 trillion. This shall lead to growing opportunities in the existing sectors and also there shall be many innovative sectors with plethora of opportunities. You will work in the next 40 years in the phase

Dr. Kulwant Rai Silver Medal awarded to Ms. Deepali Srivastava topper of academic and extra-curricular activities

where our economic growth and social change will be highest and fastest. This phase will also bring lot of challenges; the biggest challenge is the challenge of change. Indeed, only those of us will survive and succeed, who will be able to anticipate the change and also exploit the change. And those who do this will one day lead the change. In Tony Robbins words “The secret of success is learning how to use pain and pleasure instead of having pain and pleasure use you. If you do that, you're in control of your life. If you don't, life controls you”. You all must be eager to climb the corporate ladder, to be a vice president in five years, and a CEO in ten. Are these the right objectives? The fact is when young, we think we will be happy if we achieve a lot - we want fame and fortune, and as rapidly as possible. Yet as the ‘Bhagwad Gita’ tells us, the goal itself is of limited utility, it is the process that matters. If you do not enjoy the job you are doing, if you do not feel you are a productive and contributing member of society, rapid promotion or increasing fame will simply not be enough

Dr. Kulwant Rai Silver Medal awarded to Mr. Varun Tandon topper of PGDM-Human Resources

compensation. If you do not like going to work every day, the fact that you are driven to it in the best car of the world is not going to make it any more pleasant.” She ended her speech by remembering the words of Gurudev Rabindranath Tagore, which sums up old age idols of our country: “Where the mind is without fear and the head is held high; Where knowledge is free; Where the world has not been broken up into fragments By narrow domestic walls; Where words come out from the depth of truth; Where tireless striving stretches its arms towards perfection; Where the clear stream of reason has not lost its way Into the dreary desert sand of dead habit; Where the mind is led forward by thee Into everwidening thought and action Into that heaven of freedom, my Father, let my country awake.”

Quiet joy: Graduating students of IGSM 2012

“Where the mind is without fear and the head is held high; Where knowledge is free; Where the world has not been broken up into fragments by narrow domestic walls; Where words come out from the depth of truth; Where tireless striving stretches its arms towards perfection; Where the clear stream of reason has not lost its way into the dreary desert sand of dead habit” -Rabindranath Tagore

Prof. S.P Ketkar, Dean, PGP then announced the award of the diplomas to the students. Prof. Ketkar announced the award of the diploma in absentia to students who could not attend the convocation or receive the diploma in person. Prof. Ketkar also announced the recipients of the Gold and Silver medals instituted for overall academic excellence and securing first positions in the various fields of specializations. The recipient of the “Dr. Kulwant Rai Gold Medal” for securing the first position at the PGDM was awarded to Nisha Jain. “Dr. Kulwant Rai Silver Medal” was awarded to toppers from PGDM-Marketing, Finance, Human Resources, International Business, Financial Services and Retail Management specialization. The recipients were Nisha Jain, Girish Balakrishnan, Varun Tandon, Vishakha, Chandni Khandelwal and Pankaj Singh respectively. “Dr. Kulwant Rai

Silver medal for academic and extra-curricular activities in PG Programmes, 2012” was awarded to Deepali Srivastava. More than 200 students were awarded post graduate diploma in management. After awarding the diplomas to the students, Dr. Meena Bhatia requested the Chief Guest Shri. Digvijay Singh to deliver his convocation address. After the convocation address the convocation was declared closed by Dr. Bhatia. As a leader in management education, IILM's dignified graduation ceremony is a unique opportunity for its students. Address by Shri. Digvijaya Singh

Convert Adversities Into Opportunities Shri. Digvijay Singh at the outset greeted the Chairperson, the Director, the Dean, distinguished guests, all the faculty members and the students of IILM. He said, “I am grateful for having been invited to the Graduation ceremony of the class of 2012, of IILM Graduate School of Management. IILM provides quality higher education and best quality school education at a minimal fee to the lower middle class, which is the need of the hour. I would like to congratulate all of you on this day who have received the post graduate diploma in management. What I gathered today, is that you have studied subjects as diverse as they could be, which is the crux of what management is. A good manager must have the widest possible knowledge and at the same time ultimately focus in specialisation. Today after the

Ms. Nisha Jain who secured the first position at the PGDM at IILM GSM, 2012, being awarded the Dr. Kulwant Rai Gold Medal by Shri. Digvijaya Singh

To me the mantra of “Manu-Smriti” has been the guiding principle of management. What it says is this: there is no letter from which the mantra does not begin, there is no vegetation which does not have a medicinal value, and there is no person who does not have some quality. It is incumbent upon the person who is leading to utilise the services of a person in a particular field -Shri. Digvijaya Singh

PG diploma, you would be venturing in your journey of life and starting an absolutely new chapter of your life out of the school and college. Some of you may go into research, industry or start your own venture. We all can take inspiration from Bill Gates. He never completed his graduation when he started Microsoft. When Harvard wanted to give him a doctorate degree, he was the only person to receive a doctorate who was not even a Graduate. Education leads you on to what you want to do in life, but this is not the ultimate. I don’t want to sermonise, but I would like to make it a more interactive session. I am a great believer of time management and would like to confine my speech to about ten to twelve minutes. To me the mantra of “ManuSmriti” has been the guiding principle of management. What it says is this: there is no letter from which the mantra does not begin, there is no vegetation

which does not have a medicinal value, and there is no person who does not have some quality. It is incumbent upon the person who is leading to utilise the services of a person in a particular field. A good leader has to be a team player. We are excellent individuals as a nation but what I feel is that we lack team spirit. In my own experience I have seen that until and unless we build up a team we cannot really succeed. You must know the people you are working with, their specialisations, and each individual’s capacity. To draft the particular person in that particular field is the art of management. The fact remains that when you have now begun a new chapter in your life, the graph of life never remains horizontal; it a series of peaks and bottoms. It is a question of how you deal with situations of adversity and opportunities. I have seen in my life that all successful people have the ability to convert a situation of ad-

versity into opportunity. This is the key to success. As the saying goes “As the going gets tough, the tough get the going”. There is no person in the world that has not faced adversity. It is a question of how you take up that challenge to go ahead. I have always said that a person of your age must look around. There is a wealth of knowledge all around. Every day new theories are being put through internet and through other connections. You all have access which people in my generation and school never had. This is an opportunity for you to go ahead and go past the achievement of your parents. As Dr. Meena Bhatia rightly pointed out, the next two decades are the decades of opportunity for India. Until 1980s, we were far ahead in the field of research as compared to China. In the last two decades China has gone past us. At the same time we have had our own set of prob-

Shri. Digvijaya Singh signing his caricature as Mrs. Malvika Rai looks on at the Graduation ceremony of IGSM 2012

lems. The command and control of China cannot be enforced in a democratic country like ours. Of course, we have gone to an extent that people have started looking up to be India. I am always intrigued by surveys conducted by S&P. In a country which registers more than 6 per cent growth in a period of recession, India is downgraded while those countries which are going through a recession and have a growth rate of 1 or 1.5 per cent are graded AAA. Lets us not get affected by the grading of these Moody’s and S&Ps. We are here because of our own strengths. The basic strength of the country is the basic strength of the deep base of the pyramid. We are a country which has been known for its entrepreneurship. We were a country which has been contributing two centuries back to almost 30 per cent of the world’s GDP. Through years of subjugation, we have been left behind. Now we are coming back on our own and I am absolutely certain that with the entrepreneurship, wisdom and the drive of our country we can forge ahead. It is only a question of opportunity and you are the lucky few who have been given this opportunity to be in the best management school and I am sure you will do well. With this I would like to conclude and wish you all a very happy journey throughout your life.” Shri. Digvijaya Singh concluded his speech and left the session open for question and answers. At the end of the ceremony, Dr. Meena Bhatia declared the convocation closed and the “National Anthem” was played. Overall, the Graduation ceremony was a resounding success.

Prof. Yavar Ehsan, Director, IILM College of Management Studies at the opening of Graduation Ceremony

On The Threshold of A New Life Journey Celebrations and Instrospection Marked The 2012 Convocation at the IILM College of Management Studies

he Convocation Award Ceremony is one of the most significant phases of longstanding academic journey for IILM College of Management Studies. Graduation is a day which marks the commencement of a new phase in the lives of students to build on their learning and knowledge that paves the way for their entire career. The 4th Convocation ceremony of the IILM College of Management Studies for the Class of 2012 was held on May 9, 2012 at IILM Lodhi Road, New Delhi. Students of the Post Graduate Diploma in Management & International Business were awarded diplo-

“Graduation is a day which marks the commencement of a new phase in the lives of students to build on their learning and knowledge that paves the way for their entire career” -Prof. Yavar Ehsan

mas on this occasion. Shri. K. N. Memani, Chairman, KNM Advisory Services Pvt Ltd and former Chairman, Ernst & Young in India graced the occasion as the Chief Guest. As the academic procession reached the dais, the guest of event Mr. Memani and Chairperson Mrs. Malvika Rai lighted the ceremonial lamp to goddess Saraswati, which was immediately followed by Saraswati Vandana. The ceremony commenced after welcoming of the Chief Guest and Chairperson of IILM Group by Director of the College of Management Studies, followed by a

On top of the world

short speech, highlighting the mission & vision of IILM. IILM has redefined itself as a business school and taken concrete actions towards implementing its vision 2015 which is to be “A leader in values-based management education and businessfocused research. At the centre of its vision is “The Student” and our endeavour is to provide an “exceptional student experience”. The Director added that 'Our aim is to maximise the learning value-add in the time that the students spend with us'. Our curriculum is benchmarked with the best B-schools in India and across the world and is

Ms Davishi Verma, PGDM topper

Ms Heena Gupta, PGDM- IB topper

continuously updated with the feedback from the industry and as per the requirement of growing demand of the industry. He briefed the audience on the latest developments within College of Management Studies and commented on the challenges which lie ahead in the economic environment of the globe and highlighted the career path of the chief guest in his profession. He said that, “IILM as an academic institution believes in auditing its systems and processes constantly, and thus reinventing itself in tune with the dynamic characteristics of the environment. IILM continuously

Ms Versha Lohlta, the best student in Extra Curricular Activities

Crown of glory

strives to improve in all its facets. Starting from a batch of 60 students in 1993, IILM today has grown with five campuses and programmes catering to about more than 1500 students each year and preparing the manager for fulfilling the demand of corporate sectors over the globe. Dr. Himanshu Mohan, Dean, IILM College of Management Studies then announced the award of the diplomas to the successful students followed by announcement of the award of diploma in absentia to students who could not attend the convocation or receive the diploma

Ms Uma Gupta, Marketing area topper

in person. Dr. Himanshu Mohan also announced the recipients of theÂ Award of Dr. Kulwant Rai Gold and Silver Medals.Â Gold and Silver medals instituted for overall academic excellence and securing first positions in the various fields of specialisations. Dr. Kulwant Rai Silver Medal for securing first position in Marketing/Finance/ Human Resource Management specialisations in the post graduate diploma in Management 2012 was awarded to Ms. Uma, Ms. Davishi Verma & Ms. Puja Jaiswal respectively. Dr. Kulwant Rai Silver medal for academic and co-curricular activities in PG Programmes, 2012

Ms Pooja Jaiswal, Human Resource area topper

Mr. K N Memani signing his caricature at the convocation

was awarded to Varsha Lohlta. Dr. Kulwant Rai Silver medal for overall PG Programmes, 2012 was awarded to Davishi Verma. Dr. Kulwant Rai Gold Medal for securing the first position at the PG Programme 2012 was given to Heena Gupta. More than 140 students were award Post Graduate Diploma in Management.

Excerpts From The Speech of Chief Guest 'Expoit Opportunities beyond Just Jobs' It is a great honour to be here with you for your Convocation, because I am always happy to be with youngsters and learn from them and I know the family of the promoters of IILM, especially its Founder, the late Dr. Kulwant Rai. I thank Anil, Malvika and the management of IILM for inviting me today. As you move out of the comforts and cares of the Institute into the sometimes tumultous world to shape a life and career of your own, I would like to take this opportunity to speak to you for a short while on the potential opportunities that lie ahead, how to interpret the contours of the Indian economy that are emerging and are more impor-

tantly, on a few lessons that I learnt from life as I built my own career. All of you are very young and there is a wide generation gap between you and me, but I feel that some of life's lessons are timeless and therefore might still hold relevance for you today.

My life lessons First, in life you must be prepared to take a few calculated and calibrated risks. Second, merely being a manager and performing leadership and managerial tasks as per your job is not enough if you want to make big strides in your career. Even if you are in a pure professional working environment, you need to bring in elements of entrepreneurship to your job and career. You need to think and act like an entrepreneur even if you are a manager in a company. Being a manager can take you this far in your career and no more. Combine managerial acumen with entrepreneurship and you will be able to become a leader above the rest in today's competitive world. Third, you need to have the ability to carry yourself with confidence, whether the chips

are down or up. For youngster like you, it is important to realise that you will face tough moments in life, but it would be wise to remember to continue to act with confidence. Finally, along with building friendships, nurturing family relationships and interests outside your professional life are important.

Next Moves As you step into new world, I wish you all the best. And as you plan the next moves in your career ahead,Â I would like to suggest that jobs in good companies should not be your only focus and destination. There are a wide range of opportunities beyond just jobs. Those of you have an entrepreneurial attitude should look at setting up innovative ventures.Â Money, today is available but not necessarily as in the last few years, only for great ideas. If you can demonstrate a track record of deliverability and good people management skills, there are enough number of people in India and Overseas, who could back you. Finally, for those of you, who may be the young generation leaders from business families, working for a period of time in the early part of your career outside the family business will be humbling and enriching. Not only will this help you gain a different perspective of the business world and opportunities outside your family business, it could also help you build humanity, something that cannot be overemphasised for a truly satisfying life and career. I wish all of you, dear students, the very best of best.

Mr. K. N. Memani delivering the Convocation address at IILM

Thank You.

A Year of High Velocity Leadership Development Executive Education at IILM

hile the undergraduate and post graduate programmes in management have formed the core of IILM's education platform, executive education offerings have made major strides in the past few years. In particular, the last one year has been very satisfying. IILM aims to become a major provider of corporate learning and development services. Executive Education Programmes are academic programmes that are aimed at working professionals or entrepreneurs. In the current scenario, the speed with which organisations need to revise strategies, launch new products and services, continues to accelerate. To cope with and grow in continuously changing markets, one key resource every successful organisation needs are effective leaders, who have the required band width, can spot new opportunities and implement the new strategies. Updating the knowledge base and competency of working professionals translates into high demand of Executive Education programmes. IILM offers Executive Education Programmes in five distinct platforms taking into account the different requirements of executive education participants. - Advanced Management Programme - Customized Programmes for Corporates

Prof John G. Shulman with participants at IILM Advanced Management Program

- Management Development Programmes/Workshops

domains who naturally deliver an outstanding experience.

- Programmes for IAS/IPS officers

Renowned faculty for IILM 2011-12 AMP Modules included:

- Part Time Executive Diploma in Management

Dr Shashi Tharoor, conducted the session on Global Political Environment. This three day module provided AMP participants an exceptional exposure and understanding of the political and economic realities of the world.

IILM Advanced Management Programme The Advanced Management Programme from IILM Institute for Higher Education offers latest knowledge and best practices in various aspects of management. IILM AMP comprises of twenty modules spread over 18 months. Each Module of IILM Advanced Management Programme is taught by world class faculty, drawn from worldâ&#x20AC;&#x2122;s top business schools or persons of eminence. IILM AMP provides exposure to top-notch educators with inspiring expertise in their respective

Dr Catherine Thomas, Graduate School of Business, Columbia University conducted the session on Managerial Economics. The session covered the broad principles of cost analysis, demand/ supply analysis and pricing strategy. Dr Scott J Armstrong, Wharton School, University of Pennsylvania conducted the session on Persuading Customers, Clients,

Employees and Others. The primary objective of the module was to share knowledge about persuasion. Dr John G Shulman, Harvard Law School conducted the session on The Art of Negotiation. The key objective of this module was to help participants develop knowledge, skills and attitudes required to be successful in modern business negotiating situations. Dr Priya Raghubir, Stern School of Management, New York University conducted the session on Customer Management. It covered concepts on understanding consumer behavior to develop marketing strategies. Dr R Narayanswamy, IIM Bangalore conducted the session on Accounting for Decision Making. This course enabled the participants to develop an ability to understand various financial statements and to analyze and interpret the data contained in these statements for improved decision-making. Prof Sankaran Manikutty, IIM Ahmedabad conducted the session on Transition from Functional Head to CEO and Managing Change. Prof Prodip Kumar Sett, IIM Calcutta conducted the session

on Business Transformation Role of HR Policy and Strategy. The session covered topics on 7-S model, balanced scorecard methodology, managing strategy implementation and business transformation. Dr Robert Wright, Wright Institute Chicago conducted the session on Transformational Leadership: Facilitating Personal and Organizational Evolution. Dr Vishal Talwar, London School of Economics conducted the session on Strategic Marketing in Global Context. This 3 day programme augmented strategic thinking about the evolving marketing landscape that is being shaped beyond recognition by the changing nature of customers, competition, markets and technologies.

focus on developing individuals within the context of building their organizationâ&#x20AC;&#x2122;s capability to address real world challenges and achieve specific business objectives. IILM Executive education partners with Corporates to create Programmes and Workshops that best suits their objectives, business outcomes, and budget. Customised executive education programmes can be used as a business lever to implement the companyâ&#x20AC;&#x2122;s strategy. Contents for these programmes are developed after detailed discussions with the concerned organization. The programme Design focuses on two key questions:

IILM Management Development Programmes & Workshops

Prof Chris Booth, Sheffield Hallam University conducted the session on Execution and Getting Things Done. The key benefits of this AMP were an understanding of how to set priorities, the approaches that drive improvement and how to use those in various areas of an organisation.

These are short duration (one to three days) programmes covering new tools and cutting edge thinking in various management functions. IILM MDPs are open enrollment programmes, attended by professionals from diverse range of industries and businesses.

IILM Customised Programmes for Corporates

These MDP are designed keeping in view the ever changing demands on business/professional executives. These

IILM customised programmes

Prof Rakesh Chaudhary, IILM Faculty with Mrs Shekhar, Secretary General PHD Chamber of Commerce and Industry along with other participants during an MDP conducted by IILM faculty members

Programmes help participants get exposure to the latest tools, techniques and skills spanning different areas of management such as Marketing, Finance, Operations, Information technology, General Management, HRM and Organization Behaviour. IILM has been conducting some of these Programmes in partnership PHD Chamber of Commerce and Industry and CII Northern Regional Office. During the academic year 2011 -12, IILM faculty members conducted 23 Management Development Programmes. MDPs by IILM faculty cover all key management functions.

IILM Special Programmes for IAS and IPS Officers In coordination with Department of Personnel and Training, Government of India, IILM has been conducting Special Programmes for IAS and IPS Officers for the past few years. The last one on “ Public Policy and Management” for senior IAS officers was conducted at IILM Lodhi Road campus from 6th February 2012 to 10th February 2012. This programme comprised of four modules. The First Module dealt with Concepts of Public Policy which included issues on impact of changing global context and basics of public policy making. The Second Module dealt with formulation of public policy which explored the role of politicians/bureaucrats, judiciary, civil society groups, and media in public policy making. The Third Module dealt with important challenging policy issues viz. Trade and FDI, Environment, Social Sector Policies,

E-Governance, Public Service Delivery and interface of Government with Parliament. The Fourth Module looked into Implementation and Review of public policy by exploring issues like Result Frame Document, Unique Identification Project (Aadhar) and Right to Information. Faculty included eminent public policy experts and academicians, like Mr Prabhat Kumar, former Cabinet Secretary ; Dr V. K. Agnihotri, Secretary General, Rajya Sabha; Mr B.S.Baswan, formerly Secretary Government of India; Justice (Retd.) J.D. Kapoor, High Court of Delhi; Dr Didar Singh, Adviser, Ministry of Overseas Indian Affairs. The academicians who addressed the participants included Prof. Avanish Kumar, Prof. Vijaya Katti, Prof. Sapna Popli, Prof. P.Malarvizhi, Prof Rakesh Chaudhry and Prof. Sudhir Naib of IILM. The programme was attended by twenty four senior IAS officers (1984 batch onwards) holding positions of Principal Secretary/ Secretary/Commissioner/Managing Director/Chief Vigilance Officer/Chief Electoral Officer etc. The participants came from Union Government Ministries/ Departments, and State Gov-

ernments of Andhra Pradesh, Assam, Andaman Nicobar Islands, Bihar, J&K, Maharashtra, Meghalaya, Nagaland, Odisha, Rajastan, Tamil Nadu, Tripura. One participant was Minister Economic and Commercial from Indian Embassy in Japan. The Programme Advisor was Mr K.R. Nair, Former Secretary Government of India, and presently Advisor (Training), IILM.

IILM Part Time Executive Diploma in Management IILM Part Time Executive Diploma in Management provides highly motivated professionals (who did not have the opportunity of a formal business education) the benefit of pursuing a Course in Management on a schedule that requires minimal time away from the workplace, allowing them to keep both their education and career on track without missing any potential opportunities along the way. Participants develop new ways to think about their decisions, their businesses, their personal impact, and themselves. This programme provides flexibility to participants to complete the Programme in two years to three years time period.

IPS Training on “Human Resource Management-Issues Relating to Selection of Appropriate Personnel for Police” February 13th to 17th, 2012

ADVaNCED MaNaGEMENT PROGRaM

Developing Strategic Thinking and Enhancing Leadership Capabilities AMP 11th Module on Strategic Marketing in Global Context The 11th AMP Module on Strategic Marketing in Global Context was conducted by Dr Vishal Talwar of London School of Economics at Lodhi Road campus on 6th, 7th, and 8th January 2012. This intensive 3 day module augmented participantsâ&#x20AC;&#x2122; strategic thinking about the evolving marketing landscape that is being shaped beyond recognition by the changing nature of customers, competition, and technologies. The various sessions covered: Turning customer input into innovation, The Politics & Business of Globalization, Going International - The Cultural Variable, Adaptation Vs Standardisation, Experiences of Emerging Market Multinationals Going Global, and Focusing on Value Addition and Building Brands.

Dr. Vishal Talwar along with participants at 11th AMP Module at IILM, Lodhi Road

The last session also discussed the marketing best practices from around the developed and emerging world and incorporate these inputs in participantsâ&#x20AC;&#x2122; specific contexts. The module was highly appreciated by the corporate participants and faculty members.

Prof P.K. Sett along with participants at 12th AMP Module at IILM, Lodhi Road

AMP 12th Module on Business Transformation The 12th AMP Module on "Business Transformation - Role of HR Policy and Strategy" was conducted by Prof. P.K. Sett, Professor Human Resource Management IIM, Calcutta at LR

Prof. S. Manikutty wilh participants at 13th AMP Module at IILM, Lodhi Road

campus on 24th and 25th February 2012. The module saw enthusiastic participation by faculty members and other participants who gained valuable inputs from Prof. Sett. The Module started with a focus on Organisational Alignment: Linking HR to business vision and strategy, in which he spoke about Performance as a function of Ability and Effort. The next area of

Prof. P.K. Sett

discussion was HRM: A Systems’ Perspective : Understanding the organization in terms of input, processing and output, and how HRM channelizes the inputs, the transformation of energies within the system, processing, and the resulting product or service - the output. Prof. Sett conducted the module in a highly interactive mode, relying heavily on case based discussions. The case studies used made it easy to understand and relate to managerial situations while the additional readings helped to gain a deeper insight into the concepts being discussed. The module was well structured and the delivery of the content was very lucid.

AMP 13th Module on Transition from Functional Head to CEO and Managing Change The 13th AMP Module on “Transition from Functional Head to CEO and Managing Change" was conducted by Professor S Manikutty, Professor of Business Policy IIM, Ahmedabad, on 20th and 21st April at our Lodhi Road campus. This Module was attended by over forty participants comprising of IILM faculty members, alumni and senior functionaries from our corporate partners. The Module discussed all key aspects of a CEO role with various sessions focusing on : CEO and the Roles - An Overview , Transition to a CEO, CEO in the Middle, GM as a mentor of people, CEO supporting entrepreneurship and innovation and CEO as the Manager of Change. The quality of lectures and case handling by the Module facilitator was appreciated. Participants’ inputs, esp. experience sharing by senior officers of IBM made this Module a memorable learning experience.

PG Certification: Learning & Teaching in Higher Education by Prof. Peter Morgan

he Ninth Module of PG Certification on 'Learning and Teaching in Higher Education' was conducted on February 16, 2012 at IILM Lodhi Road Campus by Prof. Peter Morgan from University of Bradford. Dr. Morgan has had a long association with Bradford both as a student and as a faculty. He has been actively involved in student engagement activities at Bradford. During the session, Prof Morgan has shared his experience of teaching and learning with the participants and also provided valuable inputs individually to the participants on their teaching styles. The main objectives of the session were:

ing – Prof. Morgan discussed, with the help of VARK, the different learning styles of individuals and how to follow different approaches of teaching on the basis of the same. • Deliver a competent and well-constructed teaching session – Prof. Morgan gave an opportunity to a few participants to present a brief lecture during the session and thus, gave some valuable feedback on how to upgrade their teaching practice. • Understand why assessment can be problematic – Assessment can surely be a problematic area if not handled properly. Prof. Morgan talked

• Describe the context within which we as a school and as lecturers operate – He discussed how a lecture should be delivered in order to provide maximum learning to the students. He also guided the participants with the various methodology and pedagogy available for teaching effectively. • Identify good teaching and assessment practice–Assessment is very closely related to teaching and learning practice. Prof. Morgan discussed with the help of Bloom’s Taxonomy that how proper assessment can play a major role in the student’s learning. • Describe different approaches to Teaching and Learn-

Prof Peter Morgan with IILM alumni

about these problems and also guided on various ways for overcoming the same. • Identify areas for personal development - The session overall resulted in the introspection for the participants about their own teaching styles and assessment techniques, thus, providing a self-analysis for identifying the areas for personal development. The participants gained a lot of useful techniques of better teaching and learning in the higher education. They appreciated the enthusiasm and energy of Prof. Morgan, wherein he involved the participants through the interactive and informative session.

POLITICaL ECONOMY

Emerging Challenges for Businesses in the Global Political Environment: A Review

Rajkishan Nair Associate Professor, Economics IGSM, Greater Noida

he increasing relevance of global political environment is articulated in this article in three phases. Phase I, sets the background for the discussion which by showing how macro environment, (in the larger geopolitical context), impacts decision-making at the micro level. Phase II discusses the implications of changing geopolitical scenario for the global business environment. This section tries to put in place a possible framework for comprehending the constantly evolving global political environment. Phase III sums up the discussion with the help of two personal narratives spaced by a period of 16 years.

Phase I : A Tiny Reel of History (Geopolitics) as I Experienced It The year man landed on the moon, I was born in the capital district of Kerala, Trivandrum, almost the southern tip of the country. I grew up in the University Campus of the University of Kerala, all 600 acres of forest

and ethereal natural beauty. The Campus was bordered by settlement of colonies which served as the major sources of labour supply for agricultural activities in the adjoining three Panchayats. They also supplied labour for most of the construction work in the University Campus throughout the 1970s. The first major impact of migration to the Gulf from Kerala was experienced in terms of the acute shortage of labour for agricultural operations. The inflow of remittances from the Gulf countries led to increase in land price and triggered a spate of residential construction activity in the region which led to a drastic shift in the occupational structure of work force in Kerala. There was a large scale conversion of agricultural land for nonagricultural purposes, mainly for residential construction. Large majority of former agricultural labourers shifted to construction work and subsequently migrated to the Gulf as skilled construction workers. Shortage of labour for agricultural activities also led to an increase in agricultural wages, which was a phenomenon experienced all over the state. During 1987-88 the state government laid the foundation stone for one of the first Technoparks in the country. Around this time an event of significant ramifications on the geopolitical environment was triggered through the invasion of Kuwait by Iraq. This led to

the oil crisis of 1991, which sent oil prices sky rocketing. India’s already bad balance of payment (BOP) position worsened, and the country was on the verge of defaulting her international commitments, which forced the country to go for immediate borrowing from the IMF and the subsequent acceptance of IMF condition in the form of implementing economic reforms. And the rest is history!! By the time the State was commemorating the 500th anniversary of Vasco da Gama’s landing at Kappad at Calicut in 1498, Kerala as a whole had witnessed some unique and fundamental economic and demographic trends. Currently the share of service sector in SDP is steadily increasing while that of agriculture has gone down. Now Kerala is known as the ‘mini-Gulf’ of India as against agrarian economy as it was in the past. All the afore mentioned events and processes at the regional (micro) level are, in one way or other, consequences of geo-political events discussed. It is in this context that I intend to discuss the larger issue of challenges facing Indian companies in the era of globalization.

Phase II: Emerging Challenges for Businesses in the Global Political Environment: A Quest for a Framework The context in which global business is operating is increasingly being made complex by

three major factors, namely, globalisation, hyper-competition between multinational enterprises and proliferation of nonstate stakeholders. In the process of searching for a possible framework for businesses to comprehend the geopolitical environment, we come across two other frameworks. The first one is International Business Environment [IBE]. According to Guisinger, IBE may be disaggregated into eight components, as ECLIPTER: econography, (economic geography and demography), culture, legal systems, income levels, political risks, tax regimes, exchange rates and restrictions. The second one, is termed the Meta-environment and includes multilateral institutions like WTO and IMF and the regional economic groupings. However, the geopolitical environment is not so tangible and is more implicit and subtle. A

deliberate consideration of the geopolitical context leads countries to enter into bilateral and multilateral agreements, join regional economic groupings, and form economic groupings and informal alliances. This in turn impacts a country’s political and economic policy framework and business regulations and restrictions. Geopolitical environment thus shapes the global business environment.

Global Challenges Before Indian Businesses Indian economy and businesses have come a long way, since independence. The economic reforms of 1991 have fueled the growth of Indian businesses from primarily inward looking small entities to truly global companies, both in terms of scale and the quality of the goods or services traded. It must be kept in mind that the Indian Multinationals are still in an embryonic stage in spite of the

following encouraging performances: • Indian foreign investment in the financial year ending 313-07 was greater than foreign investment by Indian companies in 58 years between 1947 and 2005. • In the year 2007 alone, Indian companies were involved in mergers and acquisitions worth $60 billion. • Indians are second only to American’s as employers of Britons. Tata alone employed 50,000 in UK in 2008. • Mahindra & Mahindra is one of the top three tractor manufacturers in the world with plants in Australia, China, and the US. • Reliance Industries Limited is the world’s largest producer of polyester fiber and yarn, fourth largest producer of paraxylene and sixth largest

producer glycol.

monoethylene

• Bharti Airtel, the largest mobile operator in the country with more than 10 crore subscribers (Hindu daily,16-52009) is among the top ten leading wireless companies in the world. It is time for Indian multinationals to comprehend the global political environment, and to anticipate in the glorious uncertainties of a volatile world. Future of the world lies in India and China. To what extent India is capable of successfully handling its political equations with China could be one of the most important geopolitical determinants of political and economic trajectory of the 21st century. Indian businesses should be competent to understand the opportunities and threats existing and evolving in the emerging markets of the world. Another major challenge companies could face, especially in the Middle East, parts of Africa and Latin America, could be in terms of, enabling themselves to operate in economies undergoing the pangs of transition from autocratic regimes to more democratic and transparent systems. I feel this is one of the major and newer challenges that global businesses all over the world are going to face.

Phase III In 1984, during my matriculation I watched the English movie, The Karate Kid-I (I had to travel 14 kilometers by bus to the capital city to watch it). The movie is pictured in suburban California, in the early 1980s. California (USA) was still

a dreamland. The movie talks about an American teenager – Danielson - being mentored in martial arts by a Japanese war veteran, Miyagi, who had migrated to the US years ago. It subtly represented the geopolitical cross-section of the world at that time. “The movie offered some subtle moralizing on U.S. conflicts of the past half-century: Miyagi was not just any Japanese immigrant, but a World War II hero who had fought against his native land on America’s behalf. Meanwhile, the bullies who antagonized Daniel were trained by a Vietnam veteran whose merciless approach to martial arts contrasted with Miyagi’s karate-as-life-lesson approach. A corny device, but also laden with overtones of “Vietnam bad, World War II good”. (Washington Post, 27 June, 2010). Cutback to 2010. I watched the 2010 Karate Kid remake, watched it in the class room along with my students, as part

of a course on the geopolitical environment. This version is set in downtown Beijing. The central character is a boy from Detroit, whose mother has been transferred …. “by an unnamed car company from a failing factory in Michigan to a presumably thriving one in China”. The movie tries to depict China as the future, through the eyes of the boy, Dre Parker. As opposed to his impression of China from western encyclopedias as a city of tradition and horse borne men, Parker is flabbergasted by the sparkling Olympic village, the cute and smart women, lot of parks, lot of sports, and almost everyone with a hobby. In this movie also the boy protagonist comes across Japanese martial arts instructorHan, played by Jackie Chan- now settled in China. The script is loud and clear: the reflection of the current geopolitical reality of the modern world ...... Japan Out, America Down and China on the Rise.

OIL PRICE

The Crude Shock

S Vandana Mehrotra Associate Professor Finance & Accounting IILM, Gurgaon

imilar to the tremors felt by Japan in the aftermath of the latest tsunami and massive earthquake, the Indian economy has suffered from the tremors of the 'oil price shock' felt by the entire world in the recent past. The price of oil has always had an unnerving ability to blow up not just the world economy but more importantly, our economy, and the spark has always been provided by the Middle East. Painful reminders of the havoc created by the oil crises earlier are the Arab oil embargo of 1973, the Iranian revolution in 1978-79 and Saddam Hussein’s invasion of Kuwait in 1990. India, being a net importer of oil gets negatively af-

fected by the rise in oil prices, as increased oil prices drive up the rate of inflation and slow down the economic growth. Today, we are again on the brink of an oil crisis as its price steadily goes up. There are good reasons to worry. The Middle East and north Africa produce more than one-third of the world’s oil. Libya’s turmoil can quickly disrupt oil supply. Its oil output has halved, as foreign workers flee. The spread of unrest across the region threatens wider disruption. The price of Brent crude jumped 15 per cent as Libya’s violence flared up, reaching $120 a barrel on February 24th.

This is enough to jeopardise the growth of any growing economy. There are typically two big risks: a serious supply disruption and dearer oil fuelling inflation. Let us now compare our past to the present and assess how India is positioned today to meet the oil price challenge.

Macro-economic situation in 1991 During the 1980s, India witnessed a rise in its fiscal deficit which worsened through the decade. In order to finance this deficit, the Government resorted to borrowing. The consequent interest liability exerted a further upward pressure on the deficit. With macro-economic imbalances worsening through the decade, the Gulf War of 1991 was the last straw that precipitated a balance of payments crisis. In terms of macro-economic imbalances, in 1990-91, India's current account deficit had touched 3 per cent of its gross domestic product (GDP). Besides, the foreign exchange reserves

During the 1980s, India witnessed a rise in its fiscal deficit which worsened through the decade. In order to finance this deficit, the Government resorted to borrowing

now at a record high at $ 302.59billion driven by a healthy increase in foreign currency assets. As per RBI, going by the robust export performance, Current Account Deficit for 2010-11 is estimated to be lower than earlier expected (3%), at around 2.5 per cent of GDP. RBI has however, raised certain concerns in its Third Quarter Review of Monetary Policy 2010-11, which may impact the growth of our economy in view of the prevailing oil crisis. Inflation

had dipped to less than $1 billion (adequate for less than a month's imports), the external debt service ratio was 35 per cent, and the annual rate of inflation had ballooned to 17 per cent.

... and in 2011-12 In contrast, the macro-economic conditions in 2010-11 are largely favourable but certain areas of concern still remain. The foreign exchange reserves are

After a slight moderation in January, headline WPI inflation reversed in February 2011 accompanied by a sharp increase in non-food manufactured products inflation. In its Third Quarter Review, the Reserve Bank had projected year-on-year WPI inflation for March 2011 at 7 per cent. However, further upside risks have stemmed from high international crude prices, their impact on freely priced petroleum products, the increase in administered coal prices and pick-up in non-food manufactured product prices. The March 2011 WPI inflation is now estimated to be higher - around 8 per cent. Current Account Deficit While the CAD this year has been financed comfortably by the RBI, it would be necessary for the Government to focus on the quality of capital inflows with greater emphasis on attracting long-term components, including foreign direct investment (FDI), so as to enhance the sustainability of the balance of payments (BoP) over the medium-term.

Fiscal Deficit While the budgeted level of fiscal deficit for 2011-12 gives some comfort on the demand front, a potential increase in the subsidies on petroleum products and fertilizers as a result of high crude prices could put pressure on expenditure. Investment climate Continuing uncertainty about energy and commodity prices may vitiate the investment climate, posing a threat to the current growth trajectory. In particular, the weak performance of capital goods in the IIP suggests that investment momentum may be slowing down. The RBI has stated that the underlying inflationary pressures have accentuated, even as risks to growth are emerging. Rising global commodity prices, particularly oil, are a major contributor to both developments. As domestic fuel prices are yet to adjust fully to global prices, risks to inflation remain clearly on the upside. Impact of Oil Keeping in view the concerns raised by RBI, the impact of price rise needs to be examined thoroughly.

Continuing uncertainty about energy and commodity prices may vitiate the investment climate, posing a threat to the current growth trajectory

may not hold as the $105/barrel figure is conservative given the demand pressures that will arise once Japan is back on its feet and the global economy powers ahead. The last time India had a current-account deficit of over 3 per cent was during the crisis of 1991, when the government was close to defaulting on its external debt.

2. Import Bill

1. Twin Deficit By one estimate, a $1 increase in crude oil price (per barrel) increases the country’s trade deficit by $800 million and leads to under-recoveries on the part of oil marketing companies to the tune of $700 million. Unless a substantial fraction of these costs are passed on to the consumers, the danger of the much-talkedabout “twin deficit”— the current account deficit (CAD) and the fiscal deficit— getting out of hand is very real. If oil prices persist around $105/barrel, CAD could touch 3 per cent of the gross domestic product. This assumption

Although exports have been growing at a faster pace than imports in recent months on the back of a pickup in global recovery, the rising prices of commodities, especially crude oil, are likely to swell India’s import bill in the coming months. India imports almost 75 per cent of the oil it uses. India’s oil imports grew by 7.8 per cent to $ 7.85 billion in January 2011, taking the import bill during April-January, 2010-11, to $ 79.95 billion.

3. Subsidy Bill For 2011-12, the finance ministry has estimated Rs 23,640 crore in oil subsidy, lower than the Rs 38,386 crore for current fiscal. The government will be required to fork out more money in case the prices rise continues. For a nation which imports two-

thirds of its crude oil requirement through imports, spurt in rates may spell bad news as the government will have to make a tough choice between shelling out more subsidy and passing the rise to consumers.

4. Inflation In the event of a continued rise in crude prices, the current level of inflation in India at 7 per cent would climb up, given that domestic oil prices are now linked directly to global prices. Currently, the oil group has a weight of 14.96 per cent in the domestic price index, and hence a 1 per cent increase in oil prices would push up the index by 0.14 per cent, on a direct and indirect basis.

5. Industry The aviation sector would be hit the hardest by any increase in oil prices. The rise in prices would also lead to an increase in cost of all manufactured goods.

6. Interest rates In case the current level of annual inflation is pushed beyond 7 per cent by an increase in oil prices, there would be upward pressure on the interest rates. Also, notwithstanding the comfortable $ 302.59 billion

foreign exchange reserves, any disturbances in the forex market can find its echo in the money market (that is, the interest rates may be pushed up by the Reserve Bank of India). RBI has recently increased repo and reverse repo by 25 bps. Finance minister Pranab Mukherjee apprehended that rising oil prices following political turmoil in the Middle-East will have serious policy implications but expressed optimism of dealing with the situation. “Fragility of recovery of world economy, uncertainty created because of political unrest in Middle-East and North Africa have serious implications for Indian policymakers,” Mukherjee told reporters. Though he refrained from describing the volatility in crude oil prices as “explosive”, the minister said it was “deepening the uncertainty” in the global economic recovery. The finance minister, however, exuded the confidence that the government in consultations with the Reserve Bank of India (RBI) will be able to deal with the challenging situation arising out of oil crisis coupled with fragile global economic recovery. “I assure you, in consultation with RBI, that like we overcame the financial crisis

of the mid-1980s, I am confident that we will be able to face the challenges of the future,” Mr. Mukherjee said. The Finance Minister's words are very comforting but it is as yet too early to assess the macroeconomic consequences of the natural disaster in Japan. As normalcy is restored, expenditure on reconstruction may provide a boost to the economy. However, substitution of thermal for nuclear energy in Japan may exert further pressure on petroleum prices. In conclusion, we can say that the 1991 oil shock transformed our economy. Perhaps, the 2011 oil shock will do the same but at a much lesser cost to the nation.

References 1. Mid-Quarter Monetary Policy Review by RBI: March 2011 dated 17th March 2011 2. Oil and the economy : The 2011 oil shock The Economic 3. Gulf War II: India may not take a direct hit by Soumya Kanti Ghosh Tuesday, Apr 08, 2003 Business Line 4. Live Mint Posted: Sat, Mar 5 2011. 2:52 PM IST, Economy and Politics “Oil price crisis to have serious policy implications: Pranab”

SOCIaL MEDIa

Is The Social ‘NET’ Working? E

very one really wants to be socially networked? Is the social 'net' working'?

Aparna Kaushik Assistant Professor, OB/HR IILM, Gurgaon

All of a sudden we have one more media in our life, “the social media”. Were we not social enough that we really required a new medium to channelise or foster our social relationships? Were we not communicative enough that social media revolutionised our communication? Are we creating our extended self through social networking sites or is it the need of the hour that we are 'socially' compelled for? We may or may not agree. But social media, no doubt, has redefined some old paradigms within the life, be it the relationships, professional connects or career aspects. Defined by Boyd and Ellison (2007), social networking sites are the online media that allow people to connect and communicate by creating

a profile (private/public/semipublic), allow to create online connects with other people and view these relationships. Facebook, Twitter and LinkedIn are some of the more popular social network sites. The 'social connect' phenomenon is contagious which eventually resulted in around 135 million users on LinkedIn and 800 million users (worldwide) on Facebook till November 2011, respectively.

My 'Social-Identity'? Social media has given an opportunity to people to create a new social identity. Is it an extended self, an idealised self or the mask that people want everyone else to identify? This is something which needs to be explored. Facebook, LinkedIn and Twitter have given a 'celebrity' status to each user. A sense of accep-

tance, belongingness and affiliation are reinforced by counting down the number of friends in the friends list, or by the number of followers or number of likes on the status message. The powerful online identity is not only luring the youth but the elderly people are also extensively making use of the medium to interact with their friends, colleagues and relatives. Blogs and social networking sites have become a phenomenon in every one's life. Not only are knowledge, hobbies and interests disclosed, but so are the relationship status, political and religious views. Social media usage is not only limited to the sharing of thoughts and opinions or creating a self celebrity status but corporates are also using it for promotions, endorsements and for product launches. Organisations are increasing the brand awareness through the optimal use of social networking platforms. They are also promoting their products, people as well as their organisational culture to reap the maximum advantage. So it is not only 'we the people' who have created a social identity but corporates are also making their presence felt.

A New 'Online' Culture? Is the social media leading us towards a new 'online' culture? Is this culture different from the 'offline' culture? What was there in breakfast today morning? A bad scolding from the Boss? My new iPhone.... What is your relationship status? My Love Story ... Intimate relationships ...are also being unfolded on public platforms.

Posts like these are evident on the social network sites. Is it a culture of transparency, honesty and confession? Or are they a result of provocations? The advent of social media in the lives of the people has infact laid out many questions and opportunities. What motivates people to use such a medium? I believe it is a sense of anonymity derived through the online medium which in turn causes irresistibility among users to get noticed. Another argument suggests that the “busy schedules of people” makes them reunite through internet. The work-life balance is somewhere missing which any how compels the individual to interact at times through the web. The alternative viewpoint is that it is being considered as a medium which is bridging the distance in social and emotional relationships. It could be a response to the condition of loneliness, an attempt to rebuild connections is somewhere the motivating factor for the people to extensively use social media. Also, a missing face to face connect generates a false sense of security that allow people to act on their impulses and post something which they later regret.

Is the social media the most “provocative” medium? No doubt, social networking sites are the most lucrative mediums considered to speak your heart and mind out. A lot of self control is required while tweeting or responding to the messages on the social media. It is also viewed that people are no longer hesitant in bringing out the private egos in public space.

The Social 'Support' and 'News' A successful communication requires a 360 degree orientation. Facebook and Twitter helps individuals to voice their opinion. Generating support for social causes and for different movements is very common. The Anti-Corruption Movement by Anna Hazare turned out to be a great success because of media like Facebook and Twitter. The use of Facebook to rally political support got a huge boost

Social media usage is not only limited to the sharing of thoughts and opinions or creating a self-celebrity status but corporates are also using it for promotions, endorsements and product launches

when President Obama relied on it during his candidacy to get his message out. Similarly, in India, different political parties like the Samajwadi Party have started creating its online presence to reach the masses. Politicians who are not reaping the advantage of being socially net-worked are supposed to be lagging behind the curve. Is the Rath Yatra an effective medium of communication to reach within the masses? Be it the â&#x20AC;&#x2DC;Breaking Newsâ&#x20AC;&#x2122; like Osama Bin Laden's killing or the birth of Aishwarya Rai Bachchan's baby, social networking is undoubtedly working.

Breach of My Privacy? Breach of privacy has been a concern for some people while being on social network sites. People disclose too much on these sites and the after effects of such acts are still unknown. The threat to security has always

been a major concern with this medium. Facebook, LinkedIn and Twitter have security settings available for the users. But since it is still an evolving concept, a threat to security is something that still haunts the users. Recently, Facebook was threatened with legal action in Germany as its face-recognition software tends to violate privacy laws. The software recognises the users in each picture and stores the biometric facial profiles of users which can be subjected to considerable abuse. Till recently, no consent was taken by the Facebook from the users to store his/her biometric facial profiles. Another incident quotes the same when Facebook went wrong. The proof of identity was demanded even from the venerable author Salman Rushdie by Facebook as it de-activated his account and then turned him into Ahmed Rushdie, which is how he is identified on his passport. Quotes Mr. Rushie, â&#x20AC;&#x153;Amazing. Two days ago, FB deactivated my page saying they didn't believe I was me. I had to send a photo of my passport page. THEN... they said yes, I

Social media is evolving and no doubt is the fastest growing platform. It has provided the opportunity to the employers to look forward to job candidates on social networking sites

was me, but insisted I use the name Ahmed which appears before Salman on my passport and which I have never used. NOW... They have reactivated my FB page as "Ahmed Rushdie," inspite of the world knowing me as Salman. Morons. @markZukerberg? Are you listening?" He wrote. (The Economic Times, Nov 15, 2011).

My Career? Social media is evolving and no doubt the fastest growing platform. It has provided the opportunity to the employers to look forward to job candidates on social networking sites. Corporates are also widening their horizon to attract talent and guide their recruitment and selection decisions through social network sites and also do the referral checks. LinkedIn is one of the sites that is dedicated only to this aspect. Large number of professionals are registered with the site which enables recruiters and candidates to create a connect and meets the employers need to locate the best talent available from among those who are not active job seekers. Mr. Ajo Joseph, Senior Research Associate with Tran search India is into the recruitment profile and is extensively using social networking sites for searching talents across nations. When asked about the effectiveness of the medium in the recruitment process he said that he heavily relies on LinkedIn for searching the right candidate and building his professional network. He considers sites like LinkedIn, Facebook and Bluesteps very helpful for international recruitments. Ajo also said that Linkedin helps

to hunt senior executives easily and make a connect with them directly as they aren't available on job portals and are difficult to find on other sources. According to him, it is a very effective means because most of the high profile people are very active on LinkedIn. Social media serves the following advantage to the recruiters: • Helps establish a direct connect with the person and in increasing the reach to the available talent pool. • Some defined/undefined parameters of the available talent pool can be mapped. • Helps build a professional network as sources like job portals like Naukri.com are often just one time usage sources. Companies like SMIR recruits about 95 per cent of their re-

source needs through LinkedIn. Even Nokia is trying to pipeline its talent pool through social networking sites. Students can also make the use of social network sites to become more desirable in the eyes of the employers and make themselves more visible by outlining their professional views on these sites. Students should look for job postings into their respective specialisation areas, searching the company groups they are interested to work with and try and connect with people who could probably help them out to get a job. The participation of students in group discussions on LinkedIn forums and groups would help them to highlight their intellectual capital and increase their visibility to the potential recruiters. Facebook and LinkedIn are being used effectively by corporates to conduct the referral checks and students could make them more

desirable by highlighting their employability skills. The security and privacy is anyhow the topmost concern for the organisations as well as the recruitment professionals. However, whether people are ensuring their true identities on such platforms or not is one of the issues that would definitely require to be addressed in the near future. Clearly, whether people's online identity have any implications on the organisation's recruitment efforts is something which is still unexplored. In conclusion, one can say that the social networking concept is still in the nascent stage but has the potential to redefine human equations.

References • Facebook (2011). Factsheet. http://www.facebook.com/ press/info.php?statistics [Accessed 22/11/2011] • Facebook (2011). Factsheet. http://www.facebook.com/ press/info.php?factshee t [Accessed 22/11/2011 ] • boyd, d.m., & Ellison, N.B (2007). Social Network sites: Definition, history and scholarship. Journal of Computer Mediated Communication, 13(1), article 11. http://jcmc. indiana.edu/vol13/issue1/ boyd.ellison.html [ Accessed 22/11/2011 ] • Facebook facial recognition software violates privacy laws, says Germany, http://www.guardian.co.uk/ technology/2011/aug/03/ facebook-facial-recognitionprivacy-germany [Accessed 26/11/2011]

INNOVaTION

Utilising Oneâ&#x20AC;&#x2122;s Imagination and Creativity: The Power of Inner Vision think more deeply about things they observed day to day. Imagination can be defined as artistic, dreamy, fanciful, fictive, ingenious, original, poetic...Anyone being imaginative can enjoy life at all events-all it takes is the mindset of a freedom of mind.

Dr. Sujata Shahi Professor, OB/HR IILM, Gurgaon

"Imagination is more important than knowledge. For, knowledge is limited to all we now know and understand, while imagination embraces the entire world, and all there will ever be to know and understand." - Albert Einstein

he creation of innovative ideas or utilising oneâ&#x20AC;&#x2122;s imagination is no longer the secret of just a few educated and successful men and women. It is available to everyone, and history proves it. A boy who worked in a meat market and sold candy, soda water, and magazines on a train, in his spare time, increased his ability to think up new ideas that brought success and fame. That boy was Thomas Edison. Samuel F. Morse was a portrait painter: he invented the telegraph. Great ideas have generally come from people who were working in unrelated fields of endeavour. Their success was based on a personal decision to

Imagination is an effort of the mind to develop a discourse that had previously been known, a development of a concept of what is already there by the help of our reason, to develop results from new thinking. Imagination, which can also be called inner vision, is a gift that has many positive applications, but more than often, it is not well developed or correctly used. Few people possess the ability to control what enters their minds. They let their mind and imaginations do as they please, and let any stray thought or mental image appear on the screen of their inner vision. This lack of control leads to lack of control over their lives. What then is imagination, the inner vision? It is the ability to see in one's mind mental images of something that exists, and also the ability to imagine objects, situations or circumstances that do not exist now. Imagination is not only visualising mental images. It is possible to visualise using all the five senses. You can visualise a sound, taste, smell or a sensation. Some people talk about the power of imagination. That the ability to form images of scenes, objects, and people, when consciously cultivated, enables us

to accomplish more in real life. That it is the primary power behind creativity, manifesting desires, and creating a better life. It may also be the primary power behind poor relationships (we imagine, incorrectly, what the other person is feeling and thinking), lack of creativity (we imagine we have none), and a poorer life (we imagine failure, therefore try nothing). The role of imagination in the achievement of success is not something that should be underestimated. While there are many dubious claims made about the power of imagination – especially in the ‘new age’ competitive industry, where it is often said that ‘thoughts are things’ – the rational-minded individual should not respond to such unreasonable claims by automatically dismissing the use of imagination altogether. The fact is that our imagination can play a large part in helping us to dominate our life more effectively. All we have to do is learn to use it rationally. Imagine a Better Future: The first way to use our imagination in a rational manner is by imagining a better future for our self and our loved ones. Imagine how life could be if we achieved a higher level of success in our career. Imagine how our relationships could improve if we worked on them more diligently. Imagine how we could make our living environment more comfortable and appealing. By imagining such possibilities we can inspire our self to raise our standards, take our goals more seriously and turn them into reality. Creativity refers to the phenomenon whereby a person cre-

ates something new (a product, a solution, a work of art, a novel, a joke, etc.) that has some kind of value. What counts as "new" may be in reference to the individual creator, or to the society or domain within which the novelty occurs. What counts as "valuable" is similarly defined in a variety of ways. Think Creatively: The rational use of the imagination is designed to help think more creatively, and is particularly useful when we are trying to solve problems or develop new initiatives from scratch. The process is simple: give our self permission to imagine every approach you can come up with, no matter how silly or bizarre its might seem. Such unfettered inner brainstorming can be very useful, as even silly ideas can often lead to more practical if you give yourself time to consider them. Imagination and creativity share a very intimate relationship and their correlation is just like that of a stick-shift car’s mechanism; the car cannot function without the clutch and the gas pedal working in harmony; you change the gears only when you time the push and the pull to precision. Why is creative imagination important in business? In some industries, imagination is essential to success. Designers, writers, photographers, illustrators and others need constant creativity and ingenuity to stay ahead of the competition. Without it, they and their businesses fall flat. Imagination is one of the most important things a business owner can have, and the

Imagination and creativity share a very intimate relationship and their correlation is just like that of a stick-shift car’s mechanism; the car cannot function without the clutch and the gas pedal working in harmony; you change the gears only when you time the push and the pull to precision

Imagination also helps business owners see possibilities for growth and expansion. Many businesses don’t grow simply because their owners don’t see how they could. Entrepreneurs see their businesses for what they are, and then imagine what they could eventually become

benefits go beyond dreaming up new ventures. Successful business owners are also imaginative in problem solving. They see multiple solutions to a problem, even when some may not be obvious, and their creative solutions usually generate better outcomes than would be possible otherwise. Creative entrepreneurs know that a little bit of imagination goes a long way in improving how a business runs every day. Imaginative business owners find ways to do more with less. Imagination might inspire a business owner to redistribute tasks among under worked employees instead of hiring more people, or to cover several issues in one meeting to reduce time spent in the conference room. Ingenuity saves time and money as you find more economical ways to perform everyday tasks. Imagination also helps business owners see possibilities for growth and expansion. Many businesses don’t grow simply because their owners don’t see

how they could. Entrepreneurs see their businesses for what they are, and then imagine what they could eventually become. It’s this imagination that helps businesses like Facebook grow. Facebook was initially created exclusively for college students but has expanded to include a worldwide community of millions. Lack of understanding the power of creative imagination is responsible for the suffering, incompetence, difficulties, failures and unhappiness people experience. For some reason, most people are inclined to think in a negative way. They do not expect success. They expect the worst, and when they fail, they believe that fate is against them. This attitude can be changed, and then life will improve accordingly. Understanding how to use your imagination correctly, and putting this knowledge into practice, for your own and others' benefit, will put you on the golden path to success, satisfaction and happiness. No matter how great our ideas are or how little competition we have, we will be challenged in our niche and a successful business model will be copied. New thinkers are constantly searching out ways to create success and cannibalising their ideas and methods is one way your competition can speed up their success and lower both the cost of entry into your field and the length of the industry learning curve. "At its core, I believe creativity comes from using one's imagination to dream up possibilities that are explored without fear of failure."

ECONOMY

Beyond the Budget: Credibility Rooted in Reality?

t's been a few months after the Union Budget 2012-13, but its impact is still being felt across the economy. For, it touches upon important issues of inclusive growth, investments and consolidation which if implemented, can take India to the next pinnacle of growth. It is unrealistic to believe that a Union budget announcement by the finance minister can redeem all the ills of the economy. However, considering the conflicts and the compromises that go into the Budget-making exercise, it is completely justified to say that this was a good Budget in difficult times. Contrary to last year’s more aspirational budget, this year’s budget was anchored in India’s political and macro economic reality and was presented in the context of 6.9 per cent GDP growth for the fiscal. FM’s core focus on domestic demand, private investment, infrastructure and governance reflects in his measures that they could provide a boost to financial savings, capital markets, infrastructure and hence the development of “Bharat”. There was positive news for small savers who are likely to benefit from various proposals, including tax exemption on savings bank interest up to Rs. 10,000 and the Rajiv Gandhi Equity Savings Scheme allowing 50 per cent tax deduction for investments up to Rs. 50,000. The exemption of Rs.

10,000 on savings bank interest effectively means that retail individuals could earn up to 10 per cent (pre-tax) on their savings account balances as some banks are offering high interest rates on these accounts. Such a significant move will not only stimulate small savings by offering an excellent risk-free return, but also help attract savings into bank deposits, thereby stimulating low-cost deposit growth and, consequently, lending. Further, reduction in the securities transaction tax and allowing qualified institutional foreign investors to invest in domestic corporate bonds are steps that will not only deepen the corporate bond market but also help in reducing financial and transactional costs.

Nidhi Piplani Faculty Associate-Economics IILM, Lodhi Road

With the aim to accelerate the process of Financial Inclusion, FM targeted the enrolment of 20 crore persons under the UID mission with a budgetary allocation to complete an additional 40 crore enrolments coupled with the creation of a central KYC depository. This, it was hoped, will enable reduction in KYC transactional cost which would bring a significantly higher number of unbanked and underbanked population into mainstream banking. There was also major relief to key sectors like power and aviation by allowing external commercial borrowing to partfinance rupee debt for working capital requirements. In addition,

but the service tax collection accounts for only 10.5 per cent of gross tax revenue. Hence, the increase in service tax by 2 to 12 per cent is completely justified. It is indeed heartening to note that the FM has assured a return to the Fiscal Responsibility and Budgetary Management path by budgeting for a 5.1 per cent fiscal deficit ratio in 201213, considering a sharp fiscal slippage in the preceding year. This has been possible due to an eclectic mix of measures aimed at efficient expenditure management and diversified revenue augmentation. This will not only curb the supply-side inflationary pressures in the longer run but also greatly help in improving the future growth potential of our Indian economy.

road infrastructure will benefit from grant of access to external commercial borrowing for capital expenditure requirements. Moreover, the doubling of taxfree infrastructure bonds limit to Rs. 60,000 crore is a significant boost for infrastructure funding with a resultant multiplier effect. Extending the tax exemption under Section 80IA for infrastructure projects will result in further investment in this sector. The Budget took a positive step by reducing the withholding tax on interest payment on ECBs of stressed infrastructure sectors from 20% to 5%. A similar deduction should also be extended to commercial banks raising ECBs in India. Similarly, affordable housing has rightfully been

given priority. Opening the ECB window for low-cost affordable housing projects, enhancing the Rural Housing Fund by Rs. 1,000 crore and continuation of the 1% interest subvention scheme on housing loans will give a boost to the housing sector. In order to put more money in the hands of the common man, the tax exemption limit has been increased to Rs. 2 lakh. The FM desisted from increasing corporate taxes, despite pressures to enhance revenues. It was expected that the services tax net would be significantly widened and finally the negative list would be introduced. The services sector is the economy's growth engine contributing close to 60 per cent of GDP,

Given the adverse macroeconomic conditions and constraints imposed by the coalition democracy, the finance minister has sought to address multifarious domestic challenges, from revival of investment sentiment, stimulatory domestic demand by incentivizing low-and-medium income groups, debottlenecking supply-side infrastructure constraints in agriculture, coal and power sectors and by facilitating an efficient delivery mechanism for subsidies. It is crucial to recognize that the Budget announcement is not the only vehicle via which the government undertakes reforms and any other measures. The FM has well managed the conflicting goals while presenting the Budget. Though, the markets may have expressed their disappointment, but for the corporates and the â&#x20AC;&#x153;aam aadmiâ&#x20AC;?, the Budget is justifiably a realistic and modest one.

RETaILING

Higher FDI In Retail: To Be Or Not To Be?

he Union Cabinet last year braved the Opposition from within and outside to seek foreign retailers to own a 51 per cent stake in the multi-brand retail sector, paving the way for global groups such as Walmart, Carrefour and Tesco to open supermarkets in India. While a final go-ahead did not come about, the Government had said that it will reopen the case at the opportune political moment: it is also seeking to allow 100 per cent FDI in single-brand retail, a decision that will encourage companies such as Sweden's homeware firm Ikea and clothing retailers Gap and H&M to set up shop. IKEA, in fact, in recent weeks has already put in an application, albeit with a number of pre-conditions. Until now, foreign firms are allowed 51 per cent in single-brand retail, while 100 per cent is allowed in backend cash-and-carry operations that serve wholesalers. The entire political opposition to allowing overseas investment in retail is focused on the assumed plight of traders and small merchants in India. But how about consumers who outnumber sellers by many multiples? And what about farmers, the bulk of India's population? The idea of organised retail is to get quality goods to buyers at reasonable prices. To do that, retailers employ technology, storage and logistics to cut overhead costs, run lean inventories and minimise waste.

If small businesses can't keep up, they deserve to fold. Experience, however, shows that indigenous businesses can hold their own against foreign brands. McDonald's has had to adopt local ways, making aloo tikki burgers and offering free home delivery. Rivals like Haldiram's have not only held their own, but prospered at the same time. Despite its size and growth, India's retail sector is messy, unorganised and goes largely untaxed. In China, for example, organised retail comprises around 25 per cent of total retail; despite the profusion of malls, India's share is a paltry 6.5 per cent. It can rise without mass extinction of traders.

Dr.Deepti Wadera Associate Professor-Marketing IILM, Gurgaon

The most important aspect in this debate is the impact that big investments and new technologies will make on one vital sector: food and groceries. These are largely products from the farm, where productivity is dismal and the pressure of population high. Food and grocery make up 67 per cent of India's retail sales, but only 2 per cent of this market is organised. Companies like Walmart know this and it is no surprise that the US giant has set itself a target of increasing farm incomes by 20 per cent each year from the time it enters the market. It hopes to have a network of 35,000 farmers supplying fresh veggies and grains to it by 2015. This is necessary to break the monopoly of the mandi bosses who now suppress farmers'

prices to drive up the incomes of traders. If organised retail can eliminate the middlemen in the farm-to-fork chain, it will boost the incomes of quite a few other Indians - about 650 million -- who depend on farming for a living. That is no small gain. Steadily growing farm incomes and productivity can revolutionise India, raise health, education and environmental standards, and make growth truly inclusive. The consumer is not king, apparently. The hullabaloo over easing foreign investment norms in multi-brand retail is centred on the notional loss to a fraction of traders in the country and the consumer has been passed over. A comparison of potential gainers and losers in the government's move to open up the

country's $ 450 billion (over 20 lakh crore) retail segment to foreign direct investment (FDI) reveals that while a section of 40 million traders are likely to be affected by competition from organised modern retail, about 122 million consumers stand to benefit from it. Some experts say that the FDI debate underplays the importance of consumers in an economy. "We must not forget that consumers are the most important part of our economy today. They will also be the biggest gainers from FDI in retail, thereby benefiting the entire country," said Akash Gupt, executive director at PWC. As per the 2011 census, consumers in the 53 most populated cities of the country add up to over 122 million. In contrast, the numbers of people connected with retailing in the country is about 40 million, according to several estimates. In big cities, the number of people working in the retail sector is likely to be lot less. Buyers are expected to benefit the most from the increased competition in the retail industry in terms of prices and quality. "Competition will push prices down and improve quality of products," Gupt said. Despite the apparent benefit to consumers, some political parties and state chief ministers have come out strongly against the government move. Eleven states have said that they will not allow supermarket chains to set up shop. The Opposition could restrict access for foreign retailers such as Walmart and Tesco to only about 25 big cities. Clearly, we have not heard the last on this issue.

COMPENsaTION

ewarding has been a topic of close scrutiny and incessant debate in management. Time and again novel ways of rewarding are introduced with the intention of reinforcing the desired behavior. A large body of literature exists and elaborates the relevance of monetary rewards and illustrates the possible, if not definite, influence on performance. Organizations have consequently adapted in varying ratios the concept of â&#x20AC;&#x2DC;variable payâ&#x20AC;&#x2122; with the hope of enhancing employee productivity. Unfortunately, we continue to practice what has been out of preachings of the great theorists since long time. Role of money is said to be critical in the 'movement' (forced effort); its impact on 'motivation' is nevertheless debatable. Frederick Herzberg was one of the first social scientists to

have pointed the weaknesses of monetary rewards in motivating performance. These rewards are said to have an 'escalating zero point'; that is the minimal amount of money that satisfies an individual keeps on increasing. As soon as a sedan is offered as a perk, the minimal requirement for satisfaction moves from a small car to a bigger segment. Moreover the correlation between money and happiness has also been found to be insignificant (Myers and Diener 1996 in Sachau 2007) Infact any amount of money beyond $75000 per year is not said to give any incremental happiness. "More money does not necessarily buy more happiness, but less money is associated with emotional pain," (Rowley 2010) Even if one were to turn blind eye on theories, enough evidences from real life warrant an enquiry into employee recognition and its conse-

Dr. Pragya Sonawane Assistant Professor, OB/HR IILM, Gurgaon

quences. The increased emphasis on balancing the work life of employees across the globe has demanded a significant amount of focus on the rewarding styles of the organizations. A need has been created for innovative ways to reward so that a balance is maintained between the work life and family life of millions of individuals comprising the workforce. Change is inevitable in every part of life and as such a shift of focus from the traditional monetary rewards to non-monetary rewards is indisputable. From a general enquiry into job attitudes and organizational climate, more focused efforts are now being made into the area of rewards and recognition.

Another area which most companies miss out on while designing their R&R policy, is the element of ‘emotional connect'. While it is important to reward the employee, it is more important how we reward him/her

In a recent article in TOI, Ascent, MD and CEO of Edenerd India was quoted saying, “Another area, which most companies miss out on while designing their R&R policy, is the element of ‘emotional connect'. While it is important to reward the employee, it is more important how we reward him/her." (Times of India, Ascent, 20th March, 2012) This 'emotional connect' is what distinguishes the non-financial rewards from the traditional ones. These rewards are said to have separability (do not become part of pay-check), have memory value (is remembered fondly) and trophy value (is shown to peers and family) (Jeffrey 2004). One of the multiple benefits of non-monetary rewards is its capacity of coping stress. A ‘stress-free’ workplace is among the top priorities of most corporates. It is a perpetual quest towards seeking a balanced worklife for millions of people joining the workforce. A novel way of coping stress could be the exten-

sion of non-monetary rewards in this realm. It is noticed that people generally do not indulge into luxuries that they enjoy and can well afford. However, as a reward such opportunities are rarely missed. Quality time with one’s family at a Five-Star hotel or a company sponsored picnic can be among the most cherished moments of an employee’s family. In fact, some organisations initiate tie-ups with exotic hotels and spas in an attempt to please their employees and thereby retain talent. (See Times of India, India Inc offers exotic deals to retain talent, p.15, Pune, July11 2007). These rewards serve the dual purpose of making employees ‘taste luxury’, which itself is motivating (Hume, Smith and McCulloch 1849 cited in Marshall 2000), and also rejuvenates them from the taxing daily schedules. Another significant function served by such rewards is nurturing the ‘feeling of delight’ at work place. The ever-demanding targets cannot be attained with the sole hope of an incentive. One needs encouragement throughout to make the entire journey pleasant. Organisations need to recognize the fact that the impact of monetary rewards is ephemeral while that of non-monetary rewards is far-reaching. An acknowledgement of one’s efforts may not be worth a month’s salary, but it sure has the potential to please the person for days to come. A well-designed rewards and recognition program has the ability to instill passion in the employees and make the entire performance journey, an enjoyable celebration. If initiated and carried forward with the right impetus, these rewards have the capacity

to cure various malaises in the system. With changing times, foreign multinational organizations have strengthened the focus on the potential of non-monetary recognition in delivering performance; Pepsi, HUL, Coke are a few organisations which go overboard with R&R initiatives. Pepsi Ring of Honour, Nestle IDEA reward, Passion to Win and YCMAD (You can make a difference) are some of the examples of recognition platforms used in industry. Indian organizations however lack far behind when it comes to appreciating their talent. The phenomenon of rewarding through non-financial rewards is viewed skeptically by top management. Limited budgets are assigned for such reward programs and the management focus is also deficient. The reason perhaps is the lukewarm response of employees towards such initiatives. Intermittent programs without a definite plan fail to capture employees’ vote and are perceived as mere ‘add-ons’. Moreover, since these programs are not linked to the ‘goal sheet’, the precision of impact on performance is not apparent. This defeats the organisation’s objective of promoting such rewards any further; organisations fail to see that the problem is not in the ‘concept’ but in the ‘program design’. In the present age of hypercompetition, it is however imperative for corporates to do more than sporadic efforts in the field of rewards and recognition. It is to be realized that such rewards can do more than just motivating employees and have enough potential to be utilised towards organisational effectiveness.

The benefits of non-monetary rewards are various; however, the likelihood of their success depends largely on the management’s inclination towards them. People at the top echelons of the organisation have to be sensitive towards such initiatives and need to incorporate them readily. It is to be realized that the impact of such rewards cannot be captured quantitatively in strict ‘material’ terms; the repercussions have to be felt subjectively. One needs to have an eye for acknowledging the subtle differences that such a reward program implicates and which has sweeping consequences. More than reinforcing desired behaviours, a non-monetary reward can resurrect an employee’s faith in the organisation.

References Jeffrey Scott, 2004, retrieved on 12th December 2005, from http:// www.incentivecentral.net/The_Benefits_of_Tangible_Non-Monetary_ Incentives.465.0.html#474 Copyright with The SITE Foundation Marshall M.G., 2000, Luxury, Economic Development and Work Motivation: David Hume, Adam Smith and J. R. McCulloch, History of Political Economy 32.3 (2000) 631-648, Copyright © 2000 by Duke University Press. Rowley Laura, 2010, Finance Search, http://julianhartrealestate. com/2011/05/18/how-muchmoney-do-you-need-to-be-satisfied-by-laura-rowley/ Retrieved on 9th June 2011 Sachau Daniel A. 2007, Resurrecting the Motivation-Hygiene Theory: Herzberg and the Positive Psychology Movement, Human Resource Development Review, Vol.6, No.4, pp.377-393, DOI: 10.1177/1534484307307546, Downloaded from http://hrd.sagepub.com on April 27, 2009

In the present age of hyper-competition, it is however imperative for corporates to do more than sporadic efforts in the field of rewards and recognition. It is to be realised that such rewards can do more than just motivating employees

FaMILY BUsINEss

Quality Management in Family-Owned Manufacturing Firms er. In small firms these members hold senior positions.

Habiba Abbasi Assistant Professor, Operations IILM, Gurgaon

The participation of the family members as owners of the business can strengthen the company as these members are loyal and dedicated for their business but if family members hold senior positions it can create a unique problem as dynamics of family system and business system are often not in balance. Thus the business faces the problem as the interest of the family member may not align with interest of the business..

e all speak about the importance of quality in our work, organisation and wish that it become a norm at all levels so that the entire society can be benefited.But in doing so, we often ignore the most important fact that quality cannot be thought of without active participation of the people at all levels of the organisation. We keep on innovating new techniques to enhance the quality of the product without realising to prevent production of defective products at the first place.

Family-owned Manufacturing Firm In a family-owned firm two or more members for the regulatory body are drawn from the owning family. Family members in family-owned firms are involved in the functioning of the business in some way or the oth-

Quality in Family-owned Manufacturing Firm Every business organisation has a unique set of challenges and problems. The family business is no different. Many of these problems exist in corporate business environments, but can be exaggerated in a family business. Family business go through various stages of growth and development over time. Many of these challenges will be found once the second and subsequent generations enter the business. A famous saying about family-owned business in Mexico is “Father, founder of the company, son rich, and grandson poor”. The founder works and builds a business, the son takes it over and is poorly prepared to manage and make it grow but enjoys the wealth, and the grandson inherits a dead business and an empty bank account.

Quality Management Challenges Faced by Family Businesses Following is a list of possible quality management related issues faced typically faced by family owned businesses. Either one or more of these issues may be faced by various family-owned businesses. • Absence of clear quality policies and business norms for family members. Quality control decisions are made informally and are different for different projects without utilising a uniform policy. • Lack of independent opinions and diversity on how to improve quality control owing to limitation of resources. • Lack of written strategy and quality control policies. No documented plan or long term planning. • No clear-cut role carted for quality control. One person may be doing several tasks without clear definition of responsibilities. • Lack of talent. Hiring family members who are not qualified or lack the skills and abilities for the organisation. Inability to fire them when it is clear they are not working out. • Lack of specific training related to quality control and improvements Training should provide specific information that are related to the goals,

expectations and obligations of the position. • Control is centralised and influenced by tradition instead of good quality management practices. • Older family members try to preserve the status quo and resist change. This is especially with regard to resistance to ideas and changes proposed by the younger generation. • Communication problems. Provoked by role confusion, emotions (envy, fear, anger), political divisions or other relationship problems. • Decisions are made day-today in response to problems. No long-term planning or strategic planning. • Each family member has a different vision of the business and different goals. • Control of operations. Difficult to control other members of the family. Lack of participation in the day-to-day work and supervision required.

Improving Quality Management in Family Owned Businesses The following aspects could be considered to improve the quality within a small familyowned organisation: Owner Involvement: The owner has the ultimate responsibility for quality. While establishing strategies for quality, top management must institute programmes to improve quality; guide, direct, and motivate managers and workers; and set an example by being involved in quality initiatives. Clarify Vi-

sion, Mission and Values; develop training and communication process to ensure all staff members are aware of Vision, Mission and Values.

Performance Management: Setting expectations, creating job descriptions that support the vision and holding staff accountable.

Identify Critical Success Factors (CSF) such as: Financial Performance, Customer Satisfaction, Process Improvement, Market Share. Develop Measures and Metrics to Track CSF Data

Resurvey: After a period of time (12-18 months), resurvey key customers to see if scores have improved. Customer needs and expectations change over time so being in-tune to changing needs and expectations is critical to long-term success.

Identify Key Customer Groups: They include; Customers, Employees, Suppliers, Vendors, Volunteers to better concentrate on specific issue related to each group and improve work process. Solicit Feedback: Solicit feedback from each customer group in an effort to identify what is important to them. Organizations often make the mistake of thinking they know what is important to customers and ask the wrong survey questions. This feedback is obtained through customer focus groups. Develop Survey Tool: Develop survey tool based on feedback of what is important to customers. Survey Each Customer Group: Survey each customer group to get baseline data on customers’ perception of current practice. Develop Improvement Plan: Develop improvement plan based on customer feedback for each group. Improvement plan includes SMART goals with assignments to specific staff for follow through. Staff Training/Development: Evolve comprehensive training and retraining programs related to work processes and quality management.

Final Thoughts: Successful quality initiatives require ongoing Senior Leadership sponsorship and support through structure, process and staff transitions. Designated resources are also critical in supporting these endeavors. Quality Assurance: Quality assurance is responsible for gathering and analyzing data on problems and working with operations to solve problems.

Conclusion From the above, it can be concluded that quality is really an issue in family-owned organisations as the interests of individuals are not aligned, but consequences of poor quality can be reduced by identifying the problems and taking a correct remedial action to improve the quality as discussed in the above sections.

References 1. Operations Management by William Stevenson. 2. http://en.wikipedia.org/wiki/ Family_business 3. h t t p : / / l e e i w a n . w o r d p r e s s . com/2006/08/17/20-challengesfaced-by-a-family-owned-business

Production and Operations Management

“P

roduction and Operations Management” by Ajay K Garg is a new book on the aforementioned theme itself and explains the concepts of Operation management with respect to Indian context. As the author says in the preface, “The main objective of the book is to provide the understanding of the concepts of Production and Operations Management, with practical and applied approach. The book while preserving the salient features of a standard text book, aims at being as student-friendly as possible. It is an attempt towards bridging the gap between theory and practice and is an outcome of innovative ideas emerging out of theoretical studies and practical academic as well as industrial exposure.” This is an important contribution to relate concepts and principles to real life industrial examples in both Indian as well as International context and the author should be congratulated for that. The book is divided into 7 major sections namely Strategy to Manage Business Dynamics, Product and Process Design and Development, Strategy Issue in Production and Operation Management, Medium and Short Range Planning Issues, Managing and Maintaining the Supply Chain, Quality Imperative for Production Excellence and Work Improvement Techniques. The book covers all the topics, which are normally taught in Production and Operation classes in management schools in India.

Book review Reviewed by Habiba Abbasi & Rajkumari Mittal IILM Institute for Higher Education, Gurgaon

Production and Operations Management Authors: Ajay K Garg Publisher: Tata Mc Graw Hill Pages: 855 pages ISBN: 978-0-07-107792-7

The book is written in a text book mode with features like recapitulation, objective as well as descriptive questions, numerical problems, references, key terms, cases, hints and answers. Though the number of numerical problem at the end of the chapters can be increased and be made more varied.

The book suffers from a few major shortcomings. The first and the foremost is the organisation of the book. Most of the production and operations management books follow the pattern as Design, Operations and Improvements of operations paradigm. The author has followed the similar paradigm but the choice of topics within the major headings seems inappropriate; for example Quality, Statistical Quality Control Methods should be under Product and Process Design and development not as separate section named Quality Imperatives and Production Excellence. Lastly the author says that at the end of each chapter there are review questions and numerical problems along with their hints and answers but in all the chapters of the book the author hasn’t given any hint or answer for numerical problems. For example, on pages 656–657, 542–543 and so on. Moreover, for practical topics like Project Management, Inventory Management and Just in time, Quality Control and Facility Layout the author has included one to two numerical problems for practice of students. In this context it should be remembered that researchers treat these as important topics. In all it can be said that the author has made an important and original contribution in teaching of Production and Operations Management to Indian students and we will be greatly benefitted from the efforts.

Enterprise Resource Planning: A Managerial Perspective

nformation systems have come a long way from their silo-based fragmented versions to enterprise-wide integrated application suites. The most pioneering among them are Enterprise Resource Planning systems, or ERP systems. ERP systems which have revolutionised the way organisations view information systems. These systems are enterprise applications which integrate all functional areas of an organisation, thus resulting in enterprise integration, operational efficiency and information fluidity. Given the organisational potential of ERP systems, it has become imperative for all budding and practicing managers to acquaint themselves with ERP systems and the issues related to their development and deployment. The book by D.P. Goyal, is a welcome addition to the already available literature on ERP. The book is very well organised in five sections which take the reader through the conceptual underpinnings of ERP to factors of more operational relevance. The sections take the readers through introduction to ERP systems, establishing need analysis for ERP systems, ERP system development and lifecycle, implementation and postimplementation issues related to ERP. Each chapter includes Indian cases of contextual relevance. The choice of organisations in the cases spreads across various different sectors. These “Indian”

Book review Reviewed by Vandana Srivastava IILM Institute for Higher Education, Lodhi Road Enterprise Resource Planning – A Managerial Perspective Authors: Dr. D.P. Goyal Publisher: Tata Mc Graw Hill Pages: XVII+365 pages

cases make the book immensely suitable for Indian readership. Today, ERP is no longer restricted to within organisational boundaries. The book brings out the “extended” role of ERP systems along with an insightful discussion on ERP and e-commerce. Along with a discussion on the various ERP architecture, the text also dwells upon contemporary architectures such as Client server, distributed and SOA. Various models for ERP deployment such as SaaS, Hosted ERP and ERP-on-demand have also been introduced. However, this description is very restricted. Since the potential ERP market has already moved from large organisations to Small and Medium Enterprises (SMEs), a more detailed understanding of these models is required in today’s context. The highlight of the book is the comprehensive list of major ERP vendors and ERP packages which gives insights into how the ERP industry has evolved, opening several alternatives for organizations. While most ERP

books generally focus on the major ERP vendors such as SAP, Baan, Oracle and Microsoft only, the list can be an excellent reference for managers. At this stage, inclusion of some of the more popular Open Source ERP systems and vendors providing ERP on the cloud would have added more value, as these act as excellent sand-box environments for new and small ERP users wanting to play safe. The biggest challenge in any ERP implementation is the ERP project management. The various sections of the books together give an excellent overview of ERP project management and other related issues. ERP projects are often plagued by scope-creep, which has been well brought out in this book. While most books on ERP focus more on pre-implementation activities, the postimplementation activities are equally important for success of ERP systems. The book does justice to post-implementation phase of ERP projects. It also includes a very good description of ERP related change management strategies across the entire ERP life-cycle. While ERP systems bring about information integration and fluidity, they also bring in several risks which need consideration. A more in-depth discussion on security management and strategies for designing “fail-safe” and “fail-soft” ERP deployments should have been included.

Macroeconomic Essentials: Understanding Economics in the News

anagement students often find financial newspapers incomprehensible, to say the least and avoidable at the worst. They are not able to relate their classroom learning with real life examples. The book “Macroeconomic Essentials: Understanding Economics in the News“ by Peter E. Kennedy, specifically tries to address this challenge and makes an honest attempt to help the students understand and interpret macroeconomic news in the pink papers, news channels, forums, blogs and magazines. Third chapter onwards, Prof. Kennedy has extensively used “Media Illustrations” at the end of each chapter, wherein he illustrates relevant news clippings and links them to the economic concepts discussed in the chapter. Related to these news items, pertinent questions have been raised and their answers provided, which shows the practical orientation of the book. Does excess money really affect spending? What is the Foreign Exchange Market? Why are Bond prices never equal to their face value? What is multiplier? What is the effective exchange rate? These are some of the questions addressed by the author under each chapter under appropriately titled boxes “Curiosity”. The book also poses few questions at the end of each chapter. They are in the form of - fill in the

Book review Reviewed by rakhi singh IILM Institute for Higher Education, Gurgaon

blanks, True/False, complete the clipping, explain the concept etc. These questions help students to assess their understanding of practical aspects of the macroeconomic concepts. Normally, we read news items which predominantly deal with economic numbers moving up or down. These are accompanied by commentaries explaining, praising or condemning government policies. This book helps in interpreting these types of news segments.

Title Macroeconomic Essentials Understanding Economic in the News Authors: Peter F Kennedy Publisher: PHI Pages: 466 pages ISBN: 978-81-203-4486-0

The book is clearly aimed at students newly initiated to Economics and is not meant for the expert proponents of the subject. The intellectual curiosity of the more advanced learners may not be fully addressed by the book

The book is concise, lucid and very well written in eminently readable style. It is not extensive in terms of coverage of topics and focuses on important topics in macroeconomics viz GDP, Inflation, Monetary Policy, Inflation, Real-versus-Nominal Interest Rates, The Balance of Payments, Stagflation, Policy in an Open Economy, Purchasing Power Parity etc. The easy to understand style and simple style make it a must for every student of management. The book is clearly aimed at students newly initiated to Economics and is not meant for the expert proponents of the subject. The intellectual curiosity of the more advanced learners may not be fully addressed by the book. The more evolved readers will find the lack of focus on important topics and landmark events viz ISLM, Economic Crisis etc as a drawback of the book.

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Campus NeWs

Industry Visit to Mother Dairy

he IILM Business Engagement Team organised an industry visit to the Mother Dairy plant at Patparganj, New Delhi for five days. 150 students from the Greater Noida and Gurgaon campus were part of this visit. The students were briefed about the operation of milk industry in India, company profile of Mother Dairy, procurement of milk and hygiene maintained at the point of milking the animal, benefits to the farmers, the stages through which milk is processed â&#x20AC;&#x201C;clarification ,standardization, homogenization and pasteurization, benefits of milk and milk products, ice-cream manufacturing process etc. The students had a detailed interactive session wherein they were given a detailed explanation about the Marketing Strategies, Distribution Strategies and the Channels used and HR practices followed. The students were taken for a physical tour around the plant. During the visit of the plant, the students were first taken to the unit where the milk is processed in four stages of clarification, standardization, homogenization and pasteurization. An important learning experience for the students was demonstration of how milk is adulterated and how adulteration is detected. This is absolutely necessary to maintain the standard and safety of the product consumed by the children, old and everyone on faith of purity. At the end of the visit, students had a delicious treat of varieties of flavoured milk and ice-cream!!

Bangalore Industrial Trip

he enriching experience of Bangalore Industrial trip was scheduled from 15th March - 18th March 2012 with 12 Undergraduate students from IILM. On first day, the students visited IIM Bangalore which included campus tour followed by interaction with students and staff of IIM â&#x20AC;&#x201C; B, knowing about their culture, curriculum and placement of the institute . To acquaint students with supply chain management, a visit to Karnataka Soap Factory was organised on the second day of the tour. Karnataka Soap Factory is the largest factory in India for making sandal soaps and has a campus spread over 345 acres. On the third day the Mysore Campus of a well known IT company - Infosys was visited which was a great learning experience and the most appreciated visit by the students. Infosys employees hosted Spark Programme for the students. The programme was designed to expose students to current trends in IT industry and explain them about planning and execution of projects through various fun based activities. The programme also highlighted Infosys story and Infosys experience which was shared by the employees through vidIILM Undergraduate students with faculty members at IIM Bangalore eos and presentations.

Campus NeWs

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Industry Visit to Bisleri

Industry Visit to Lilliput

ndustry Visit to Bisleri was organized for Lodhi Road & Gurgaon campus students on 23rd Feb and 24th Feb, 2012. Overall, around 70 students participated in the visit. It turned out to be a wonderful experience for the students to closely discover how the mineral water bottles are manufactured with due consideration to the environmental concerns. What makes this brand distinct from other brands is the double ionization of the water before it reaches the end consumer and the plastic recycling policy to make toys, pillow fillings,mattresses etc. The visit began with the new Bisleri Ad launched by the brand and clippings from movies to explain the vision and mission of the leader. Then the students were acquainted with the Bisleriâ&#x20AC;&#x2122;s achievements so far, newly launched brands and initiatives to ensure sustainabilty. The students were given a practical exposure at the manufacturing unit .The students displayed keen interest to understand the process, and the session ended with an interaction and resolution of studentsâ&#x20AC;&#x2122; queries by the Production Manager.

Undergraduate students from Lodhi Road participated in the visit. Officials provided a detailed presentation about plans of setting up localised manufacturing units and sourcing bases across different regions in India and at international locations. Overall, it turned out be an exciting and intellectually stimulating experience for the undergraduates.

Industry Visit to Parle-G

ILM organised an Industrial visit to Parle-G, Neemarana which is the biggest Biscuit manufacturing unit in Asia. Students had a great experience and learned how the popular Biscuits are manufactured under most hygienic conditions by modern automatic processing machinery. Students were taken through the production unit in detail starting from mixing of raw materials till packaging of the products. They were explained about the range of Parle Products and were exposed to the facts pertinent to the company history, about the founders, number of units in India, certification, numerous national and international achievements and many more.

IILM Postgraduate students with faculty members at Parle-G factory, Neemrana

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Campus NeWs

Personality Development Workshops

series of Workshops were conducted from February to April 2012 for undergraduate students of IILM. The first workshop was on Cake making and Cake decoration. It was a 3 hour session by Ms. Sharmila Sen Gupta, an expert in Cake making with training experience in the past. A number of dance workshops were also held. Students learned Hip-Hop and Jazz dance forms. Furthermore, a Grooming Workshop was held wherein participants were taught various grooming techniques. Students posed as models for instructors and make-up artists thereby demonstrating the various ways in improving one’s presentation. The session was very interesting and the participants greatly enjoyed themselves.

Make up artist from Kryolan, demonstrating on IILM student

Blood Donation Camp

thnos–The Human Resource Club and Sunshine Social Service Club of IILM organized a Blood Donation Camp on 29th March,2012 in collaboration with Indian Red Cross Society. There were 35 donors in one day and all donors received a Donor Card, Donor Badge and their blood analysis reports were e-mailed from Red Cross Society. IILM students during the blood donation camp

Confluence

he IILM Lodhi Road Cultural Club successfully organised Confluence – an inter campus theatre competition on 4th April 2012. Various plays reflecting different messages were showcased to educate the audience yet entertain them. The Gurgaon Postgraduate Team was declared the winner. The team portrayed issues of female foeticide and corruption through their skit. Shivangi Sharma, Postgraduate from Lodhi Road was declared as best actor. Her team conveyed the crucial message of population control

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Resume Writing Workshop and Effective Interviews

his session held on 3rd April 2012, was one of the first few of a series of career workshops held for Undergraduate students. Students learnt how to crack summer internship and final placement interviews such as knowing the appropriate answers to respective standard questions. Furthermore, students discovered the importance of effective CV writing and the apt profile. Notably, the initiative stems from a new over-arching agenda designed to enhance the Undergraduate ‘student experience’.

Career Counselling

n addition to advice provided to Undergraduate students regarding summer school global experiences at universities such as LSE, Berkeley, Grenoble and Leeds, the career counselling workshop held on 10th April 2012 provided the much needed long-term guidance to Undergraduate students regarding their future. Issues discussed involved where and when to apply for higher studies, both in India and abroad. Experts provided information about what exams to appear for such as the GRE and GMAT. The workshop proved to be extremely fruitful as students cleared many of their doubts/queries and were encouraged to plan for their higher studies.

Art of Living and Yoga Workshops

s part of the Indian Culture and Human Values' initiative Power Yoga and Art of Living workshops were conducted at IILM Lodhi Road on 4th April 2012 onwards. These workshops proved extremely helpful for students as they learnt how to be positive in life through meditation via “breathe and mind management.”

A view of “Art of Living” session at IILM, Lodhi Road

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Marketing Relay Race

he Marketing Relay Race organised by IILM Lodhi Road Marketing club was a concept that involved incorporating marketing activities on an interactive platform of a Relay Race. The event witnessed a lot of enthusiasm from Postgraduate and Undergraduate students. The unique idea was a successful attempt at understanding brand management. PG students bagged the first prize and UBS 1 students were declared as runner-up.

Inter-Campus Basket Ball Match

ed by the Sports Club, the competition was held between the Postgraduate and Undergraduate students of Lodhi Road, Gurgaon, Noida campus. There was a tough competition between the teams, and the grand finale on 1st March 2012 was won by the enthusiastic Undergraduate Lodhi Road players. The two days of excitement came to an end by bringing students across the campus together and providing them with memories to cherish.

IILM students during the Basket Ball match

Mock Parliament

ILM Quiz & Debating Club conducted an event Mock Parliament on 11th April 2012 at the Lodhi Road campus. The theme was decoding the Budget 2012-13. Participants brought forth and analysed crucial issues such as: the ever increasing subsidy burden; the inability of the ruling party to control the fiscal deficit under control; the appropriateness of various alternatives in containing fiscal deficit, various scams, and so on. As the group discussion progressed from one topic to the other, the interaction became more insightful, highly energetic. Teams put their best foot forward by expressing their opinions and point of view in a very effective manner The experience of the participants helped them learn practically about what democracy is and how to make the best use of it thereby fulfilling the objective for organising such an event.

IILM students during a discussion at the Mock Parliament event

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Vocational Trainings by ICHHA

he NGO club of IILM, ICHHA â&#x20AC;&#x201C; IILM Community Harboring Hopes for All organised a vocational training for the nearby slum children on 22nd September, 2011. The underprivileged children were taught to make paper bags and baskets using old used newspaper. The main objective of the event was to teach these children to enhance their creative skills which would not be just pure fun but also be useful for them in their future, maybe they could sell it. This training enhanced their craft skills and also they utilized their leisure time in an effective way.

Ladies from slum during training session on making potli bags

Second vocational training was conducted on 15th February 2012 for slum women where they were taught to make products like potli bags, scarves etc. from old sarees. The event excited both women and young girls as they liked the potlis which were made creative with decorative stars and ghunghroos. The ladies were quick learners and were happy to put these things to their personal uses. "Every woman on this planet has an intense desire to look beautiful." With this thought in mind, ICHHA organised a Vocational Training on Grooming for Slum Women on 17th March 2012. The basic objective of this training was to educate the ladies and girls on the importance of cleanliness, hygiene and beauty tips. It was made sure that all the tips taught to women would help them source materials from their own kitchens. The training began with early morning exercises and tips to be healthy, followed by remedies to remove tanning. Then, the ladies were also educated on preparing and applying face packs for instant glow followed by training on hair-dos. The audience seemed to be very enthusiastic and also participative when it came to trying face packs and applying techniques of unwanted hair removal. ICHHA feels great to share dreams with those slum women and making them smile. After the huge success of Vocational Training on Grooming for Slum Women, Training on Grooming for Roshini Rai School Teachers were conducted on 26th March 2012. The teachers were imparted tips on beauty, personal hygiene and physical fitness. The trainers for all these trainings was our students from post graduate batch and they made sure that the material used in their trainings would easily be available in our homes and kitchen and were not expensive to buy. The teachers of Roshini school were satisfied with the training imparted which was evident in the feedback taken and they also did make notes of the tips discussed during the whole session. ICHHA plans to come up with many more such events in the near future.

Vaibhav Gupta, IILM student with children during a session on making paper bags

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Pioneer 2012-13 IILM Business Plan Competition

ILM Annual B-Plan competitionâ&#x20AC;&#x201C;PIONEER 201213, is an initiative of IILM Knowledge center with an aim to develop and promote entrepreneurial attitude among students. The business plan aims to provide an integrative learning experience for the participating students. The competition is open for Post Graduate and Undergraduate students of IILM ,across all campuses. The competition is designed to cultivate new business ventures off the ground rather than enhance existing business setup. With this objective PIONEER 201213 was started on February 20th, 2012 where in the business venture focussed on product / service development.

Winning Team :Ms. Reetika Gupta, Mr. Sagar Gupta, Mr. Siddhant Barpanda, Ms. Tripti

31 teams underwent the tough battle of initial screening round , after which 12 finalists team presented their proposals to our panel of Industry experts comprising of 1) Mr Harbinder Narula, Vice President, Superangels of India and Director, Mansai Media Services Pvt. Ltd 2) Mr Subhashish Bhattacharya, Director, Vriksh Consulting 3) Mr Amit Gupta, Manager, Smart Cube The Competition witnessed a strong entrepreneurial spirit among the students ,which was apparent through their innovative and socially minded ideas.

Ist Runner up : Mr. Abinash Sahu, Mr. Animesh Chattopadhay, Mr. Srijan Virmani, Mr. Snigdhadeb Kundu

The winning team was IILMGurgaon Team - Roll n Squeeze with participants Reetika Gupta, Sagar Gupta, Siddhant Barpanda, Tripti. The concept aimed at making sachets user friendly. The product was a device primarily used to squeeze the maximum

possible contents of a sachet containing either liquid or semifluids e.g. shampoos, ketchups, face cream tubes, toothpaste tubes, medicinal ointments etc. They were awarded with a cash prize of Rs 15,000/- and a certificate of appreciation.

AcademicAchievement Prof. Sudhir Naib Conducted a two day workshop on “Right to Information” for the participants of the Postgraduate Programme in Public Policy at MDI, Gurgaon on 16 & 17 January 2012. The workshop was attended by 19 senior Government/Public Sector executives. Conducted a workshop on “RTI in participant countries: Opportunities and Challenges” on 31 January 2012 at the Commonwealth Regional Programme on Right to Information for Asia Region in collaboration with Commonwealth Secretariat, London hosted by ISTM, Department of Personnel & Training, Government of India. Conducted a one day MDP on 3 November 2011 on “Values in Administration: Indian Insights” for senior officers of the Union and State Governments at ISTM, Department of Personnel & Training, Government of India. Conducted two workshops as part of half-a-day workshop on 'Right to Information' for Public Information Officers and Appellate Authorities of the Government of India on 22 November and 24 November 2011.

Prof Sudhir Naib and Prof B. Bhattacharyya Wrote a Research Brief on “Mandatory CSR: Desirability and Implementability”, published by IILM Knowledge Centre. The Research Brief was circulated in January 2012 to a large number of academicians and apex industrial associations.

Ms Rakhi Singh and Dr. Garimella Sai Ramani Conducted a one day MDP on “ The Art of Negotiation” on 17th February 2012 at Bhopal.

Dr. Deepti Wadera Published a research paper titled“ Brands to Consumers:An Insight into Consumer's Relationship with Brands” in IBR, Volume 2, Issue 1, March 2012, a quarterly refereed Journal of International Forum Of Researchers Students and Academician IBR (IFRSA Business Review) .

Ms Shivani Khurana and Ms Aparna Kaushik Conducted a one day MDP on " Selecting The Right Person Through Psychometric Assessment" on 15 February 2012, at Hotel Sarovar Portico, Lucknow.

Ms Rachna Madaan, Ms Sandhya Prakash , Ms Ranjani Matta and Mr Balwinder Singh Conducted a one day MDP on Project Appraisal and Funds Planning for SMEs at the PHD Chamber on 6th March 2012

Dr. Sujata Shahi and Ms Aparna Kaushik Conducted a session on "Innovation for Driving the Competitive Edge" for the Senior Management (Deputy General Managers and Assistant General Managers) at the 86th Strategic Management Programme at BHEL's Human Resource Development Institute, Noida on 17 April 2012.

Alumni Lunch@ IILM Graduate School of Management

he vision of IILM has the student at the centre and all Alumni of IILM are an extension of that vision. An Alumnus of an organisation is the true ambassadors that represents the organisation in every way. Through their achievements and laurels, they take forward the name of the institution. Taking this thought forward, the Alumni Lunch was organised on Feb 12thÂ 2012. The event saw participation from recent batches of IILM Graduate School of Management Campus. The event was a wonderful opportunity to interact and catch up with the lives of our Alumni and to learn and share their corporate experiences and achievements. 23 alumni from the batches of 2006-08, 2007-09 and 2008-10, attended the lunch. Alumni always look forward to meet their faculty members and interact with them. It is a moment of nostalgia for them to meet the mentors and share their details with each one of them. The event started with a warm welcome. All alumni had to register their name at the registration desk and submitted their visiting card for a lucky draw. A small networking session took place where old faculty members met the alumnus and new members and manag-

ers introduced to them. The basic ideology behind this event was to show them the huge amount of infrastructural development that took place after they left and let them know about the future development that is on the go. The Alumni were addressed by Dr. Meena Bhatia which was followed by some performances which were prepared by the current students of IILM for the guests of the day. A scintillating dance performance and a much more tremendous play was conducted by the students of IILM Graduate School of Management and was appreciated by the alumni as well as the faculty members. Certificates were

awarded to all the participants. After the performance, the construction site was shown to the alumni and they were happy with such commendable initiatives of the college. A lucky Draw was conducted in which the winners were gifted IILM merchandise by Dr. Meena Bhatia as a memento. After the lunch, a Cricket match took place between the alumni and the rest of the members. The Alumni enjoyed the day and thanked us for inviting them for the event and also expressed their keenness to participate in the guest lectures and AMP Program.

Dr. Meena Bhatia interacting with the Alumni

Alumni playing cricket at IGSM Alumni Lunch

LETTERS To the editor Thank you for sending me a copy of the latest issue of The Edge. As usual, it makes interesting reading. However, this issue is a special one, as it is a tribute to revered Sri Kulwant Raiji, a person for whom I had great respect and regard. It is a good to see pictures of his smiling face and his elegant demeanour. We do miss him! With kindest regards to both of you: Vidyaji joins me in conveying our Sai Ram to Mrs. Kulwant Raiji. V. Srinivasan All India President, Sri Sathya Sai Seva Organisation

The Art of Innovation

nnovation is the creation of better or more effective products, processes, services, technologies, or ideas that are readily available to markets, governments, and society. Innovation differs from invention in that innovation refers to the use of a better and, as a result, novel idea or method, whereas invention refers more directly to the creation of the idea or method itself. Innovation differs from improvement in that innovation refers to the notion of doing something different rather than doing the same thing better. If someone comes up with a new hammer that does what our existing hammers do, then that is a design change and design is an ‘art’. When someone creates a new kind of hammer, however, such as a ‘nail gun’ or a new method for hammering, then we can distinguish that as innovation. Innovation takes place at different levels from modest improvements on an existing product or process to dramatic and even historically significant breakthroughs in how we

"The enterprise that does not innovate inevitably ages and declines. And in a period of rapid change such as the present… the decline will be fast."

relate to the world. In all cases, the capacity to innovate will be a function of our commitments, what we want to accomplish and our relationship with the circumstances we perceive we are in. If we are resisting or coping, we see no innovation and whatever change we generate will be as a reaction to the circumstances and part of the process by which those circumstances persist. When we are responding or choosing we are in a position to innovate and will do so naturally and consistently as a function of what we observe to be possible or what we observe is missing in our perspective of the world. Change based on this view is likely to be an improvement on what already exists. When we are bringing forth or creating we are not only in a position to innovate but are predisposed to do so. Further, in these ways of relating to circumstances, we have few if any limitations on what we can imagine and generate. We are likely to be generating breakthroughs or even creating entirely new spheres of possibility.

"Innovation is not the product of logical thought, although the result is tied to logical structure. " Albert Einstein

Peter F. Drucker

"Somewhere out there is a bullet with your company's name on it. Somewhere out there is a competitor, unborn and unknown, that will render your strategy obsolete. You can't dodge the bullet – you're going to have to shoot first. You're going to have to out-innovate the innovators." Gary Hamel

"Innovation is the process of turning ideas into manufacturable and marketable form."

"If you’re not failing every now and again, it’s a sign you’re not doing anything very innovative." Woody Allen

"Just as energy is the basis of life itself and ideas the source of innovation, so is innovation the vital spark of all human change, improvement and progress." Ted Levitt

Watts Humprey

"Creativity is thinking up new things. Innovation is doing new things."

"The innovation point is the pivotal moment when talented and motivated people seek the opportunity to act on their ideas and dreams."

Theodore Levitt

W. Arthur Porter

"You have all the reason in the world to achieve your grandest dreams. Imagination plus innovation equals realisation."

"Innovation distinguishes between a leader and a follower." Steve Jobs

Denis Waitley

"The world leaders in innovation and creativity will also be world leaders in everything else."

"Some men look at things the way they are and ask why? I dream of things that are not and ask why not?"

Harold R. McAlindon

Robert Kennedy

"Cutting the deficit by gutting our investments in innovation and education is like lightening an overloaded airplane by removing its engine. It may make you feel like you're flying high at first, but it won't take long before you feel the impact." Barack Obama

Conceptualised and Compiled by Diksha Saxena, PGP 2012-14

Institute for Higher Education

Anil Kulwant Raii Group