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CONTENTS
EDITOR Gp Capt R Vijayakumar ﴾Retd﴿, VSM
READERSHIP OUTREACH Gp Capt Dr R Venkataraman ﴾Retd﴿
Sundar R Vakeeswari M DESIGN D Rajaram, Tayub Refai MADRAS MANAGEMENT ASSOCIATION Management Center, New No.240 Pathari Road, ﴾Off Anna Salai﴿, Chennai 600 006 Ph:044‐2829 1133 / Email:mma@mmachennai.org | mandate@mmachennai.org | www.facebook.com/mmachennai
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EDITORIAL
Gp Capt R Vijayakumar (Retd), VSM
If only AI can solve all these issues…
T
his year’s Management Students’ Convention will focus on the promises and perils of Machine Intelligence.
Picture a computer that could finish this sentence, use a snatch of melody to compose music, and solve problems… A bit like human. The “Foundation Model”
Mr C V Subba Rao, Managing Director, Sanmar Shipping Ltd., has been our President during
that can do these things represents a breakthrough in
2021 ‐22. He has been a great
Artificial Intelligence. For years it has been said that AI-
source of inspiration and
powered automation poses a threat to people in
support to us towards achieving
repetitive, routine jobs; and that artists, writers and
our objective. Personally, it has
programmers were safer. The Foundation Model challenges that assumption. When handled well, AI can complement humanity rather than usurp our role in the
been a unique privilege to be part of his team. I thank him for
plant. This year’s Management Students’ Convention
his unstinted support in all our
scheduled on Tuesday, 27th September 2022 at IIT
endeavours.
Research Park, will focus on issues such as these and much more. Suggest that you block your diary and visit us on that day. BUSINESS MANDATE
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Time to Stop the Exodus!
Life is not governed by what you have but what you
The number of people giving up Indian citizenship in recent years may not be large enough yet for any alarm, but it is nudging us to think about the tax burden on the high net worth individuals. Our policymakers must not overlook the power of personal incentives in a globalised world. The best way to contain the possibility of emigrations turning into a full-blown exodus may lie in reducing any outbound motivations. Moderation in taxes should top the agenda.
Some
factors seem beyond our control, such as the weakness of the Indian passport in getting us entry to the richest countries. Of course, diplomatic efforts need a boost and some pre-emptive actions need to be taken in the interest of our nation.
are. With all the things money can buy, wellness is an aspect that one has to aspire and strive for. We must invest in elevating one’s quality of life. From ancient practices to modern sciences, a focus towards wellness spans
across
history.
Holistic
wellness
is
an
amalgamation of various conscious lifestyle choices —from eating healthy to caring for yourself and your loved ones, to planning vacations that allow you to break from the daily humdrum of routine life. In this context, MMA is organizing a wellness conclave in partnership with Aura Holistic Wellness Center on Saturday, 13 August 2022, from 09.30 am to 01.00 pm at the MMA Management Centre. Participation is by invitation only. Click to view.
Health Services at School
A Competitive India & Inflation The world today traverses a very challenging journey: Global inflation, geo-political tensions and severe economic stress are undermining growth and stability. The concerted efforts of RBI and the Union government to contain inflation appear to be having some impact, albeit marginally. However, a separation of signals from noise suggests that Indian economy will do better than many expect. Notwithstanding, the global headwinds, the promise of the India story is still intact
Children across the country are back in their classrooms after a prolonged closure due to the pandemic. While there has been some discourse on learning recovery, there is an urgent need to factor in the health needs of school children. Though school-age children have a relatively low sickness rate, they do have age-specific health needs that are linked to unhealthy dietary habits, irregular sleep, lack of physical activity, dental and eye problems, etc.
and the economy is poised to remain one of the fastest
The health, knowledge and lifestyle acquired in the
growing in the world. Still, we cannot de-couple
school going age also play in adulthood, shaping their
ourselves from these issues and be unmindful of the
behaviour for the rest of their lives. In this context, the
opportunities around. I strongly believe that India is
MMA-ACSYS CSR latest initiative focusses on children’s
perfectly poised today to ride a multi-year trend of high
skill development through computer tab-based learning,
growth.
entrepreneurship development, and caring for one’s health among others.
Your Path to Wellness “Health is a state of body; wellness is state of being” - J. Stanford. 6
AUG 2022
In addition, a talk on “Creating a World Class Higher Education System in India” by Dr K V Ramani, Founder and Chancellor, Sai University, dealt in depth
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about the issues faced by education institutes, children,
new Managing Committee consisting of experienced
tutors and parents. This is our cover story. Read and
professionals and new entrants with a vast corporate
watch the talk published in this issue.
background would immensely contribute to take MMA to greater heights. I will be failing in my duty if I do not
State of State Finance
place on record of the great support extended by Mr C
State governments are confronting various fiscal risks
V Subba Rao, Managing Director, Sanmar Shipping Ltd.,
—particularly heavy debt—observed the latest RBI
who has been our President during 2021-22. He has been
bulletin. The centre too recently red flagged states high
a great source of inspiration and support to us towards
off-budget borrowings and escalating power dues. Many
achieving our objective. Personally, it has been a unique
states
privilege to be part of his team. I thank him for his
have
not
implemented
or
have
poorly
implemented much needed economic reforms especially in terms of service charges for public utilities electricity. Welfare-enhancing schemes are important too, and the poorest of the poor should be taken care of. However,
unstinted support in all our endeavours.
Har Ghar Tiranga: Hoist the National Flag in your home
a rising trend in providing freebies has eaten into the
Har Ghar Tiranga is a campaign under the aegis of
expenditure pie. In this context, MMA is organising a
Azadi Ka Amrit Mahotsav to encourage people to bring
discussion on the theme “Fears of Global Recession and
the Tiranga home, to mark the 75th year of India’s
Impact on India” at 06.00 pm on Friday, 26th August
Independence. Our relationship with the flag has always
2022 at MMA Management Centre.
been more formal and institutional than personal. Bringing the flag home collectively as a nation in the 75th
The Ageless Wisdom
year of Independence thus becomes symbolic as not only
Thirukkural written by Thiruvalluvar enjoys a special
an act of personal connection to the Tiranga but also as
place among Tamils for over two millennia. “The Ageless
an embodiment of our commitment to nation building.
Wisdom - Management Lessons from Thirukkural” is
The idea behind the initiative is to invoke the feeling of
a talk by Dr Prabhakaran delivered recently at MMA. The
patriotism in the hearts of the people and to promote
talk opened the eyes of every listener to the rich panoply
awareness about the National Flag. I invite the members
of Valluvar’s
and their applicability to
to participate and mark this momentous occasion—you
different aspects of life and management. An article on
are requested to hoist the flag in your home from 13th
the theme of the lecture is published in this issue with
to 15th August 2022 and be privileged and honoured.
thoughts
embedded video. Please read on and watch the lecture in Tamil.
As always we would be happy to hear your views, comments and suggestions.
A change of guard...
Stay safe and stay healthy!
We will take forward our vision guided and supported by the new Managing Committee headed by the President, Mr Suresh Raman, Vice President & Regional Head, Tata Consultancy Services, Chennai. The BUSINESS MANDATE
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Mr K V Ramani, founder and chancellor of Sai University, is one of the pioneers who led the efforts to bring India’s information technology sector to global prominence. He co‐founded the National Association of Software and Service Companies ﴾NASSCOM﴿ to assist the growth and development of the IT sector in India.
I
am not an academician, but I am fortunate to say
Now, 35 years later, India is acknowledged as a
that I am qualified to talk on higher education
technology leader worldwide. Investors in software
based on my recent experience in the last few years
companies abroad insist on having India connections
as Founder-Chancellor of Sai University. I have an
as a precondition to their funding. The software
outside view of the higher education sector and so, I
industry has moved from zero to $150 Bn in exports
can talk about the system more easily than an insider.
now. Our Prime Minister wants us to increase the
The problems in higher education are not welldefined. It is a multi-dimensional problem. We are trying to offer solutions which are not perfect. Why is our higher education system not up to global
exports to $300 Bn in the next three to four years. Health care is another example. Thirty years ago, if you had a problem with the heart and if you had money, you went to the US for treatment. If you didn't have the
standards? Not even one person from India—working in India—has won a Nobel Prize. Indians have won Nobel Prizes after going out of India. Why are they are
We have the CBSE, State Board,
not able to achieve when they are in India? We are not
ICSE and multiple other systems
in the international league in higher education. What is
of schooling. When they come
so special about education?
into higher education, it is very
We have done it in the IT sector and I am proud to say that. I started my IT company in 1985. We often
difficult to evaluate which system is better.
had clients telling us, "Where is software in India? We only heard of cows and saints on the roads of India." BUSINESS MANDATE
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money, you had to pray to God. There was no quality
develop their skills, to either become academicians,
treatment in India. Now, Indian health care is a global
researchers, entrepreneurs or career professionals?
leader. We have a large activity of medical tourism
What are we doing at significant scale to make that
happening in India because we have the same quality
happen? In my opinion, we are not.
of doctors as the developed world, the same equipment and better nursing care and all at a cost of one fourth of what you would spend in the UK.
The quantity is a problem because we have several Boards of Examination. The raw material is the 12th standard or the school final. We have the CBSE, State
Another sector is biotech. During Covid, India was
Board, ICSE and multiple other systems of schooling.
able to produce two or three vaccines ourselves without
When they come into higher education, it is very
any international assistance and that protected all of
difficult to evaluate which system is better.
us. So my question is, why have we not done it in education?
school final exam and trying to get University or higher
Quantity Problem
education admission is about 2 crores. How are we
Fundamentally, higher education is a quantity problem. We have the largest number of youth in the world because of the demographic dividend of the Asian population, but what are we doing about it? What are we doing to them with education opportunities to 11
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Each year, the number of students passing the
giving admission to these 2 crore students into institutions of higher education? We have diploma programs, ITI, certificate programs for electrician plumber, carpenter and so on. These are skill-based programs and there is nothing wrong with them. People have a need to get into them. We also have
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undergraduate education, postgraduate education or a
We make marks as the most
PhD doctoral program. Whatever it may be, there has
important determinant factor
to be a career path for these 2 crore people each year
for higher education. Not the
but we don't have. The dimension becomes more
talent or desire of the student
complex because we have multiple languages.
or the infrastructure and faculty
If you take Tamil Nadu, Andhra or Karnataka,
of the institution.
roughly 14 lakh students graduate each year from schools, trying to get college admission. There is a mad rush of every student and parent. Admissions for an academic year start almost one year in advance, even though students haven't got their final marks. They are admitted based on 10th standard or in some cases, 11th standard marks. We don't have a mechanism to find out how many students will need admissions to higher education. The number of UGC approved universities in the country is 1441. There are four kinds of Universities—Central, State, Deemed and Private. We have more than 36,000 colleges as per UGC data. All of these are not able to accommodate the 2 crore students passing out of schools. But, rough numbers indicate that 50% drop out for skill based programs or to take up some jobs due to family circumstances. Out of the balance 1 crore students, there is a mad rush to
students missed the eleventh standard syllabus completely. Now they have introduced 11th standard board exam in Tamil Nadu to prevent this problem.
The Quality Problem What started out as a quantity problem has now become a quality problem. Why is it a quality problem? Because the students who get admission into the top universities or colleges must have high cut-off scores, in excess of 90 or 95 percent and clear some admission tests. We make marks as the most important determinant factor for higher education. Not the talent or desire of the student or the infrastructure and faculty of the institution.
get into universities and colleges as every student and
If the student is getting 100%, then they don't need
parent likes to have minimum two or three admissions.
the teacher at all. The challenge for a teacher is taking
There are so many tests. Each student, when they do
an unpolished stone and converting it into a diamond.
the school final, spends more time preparing for this
It's taking an average student and making the best of
admission test.
that student to come out. That is the most satisfying
The system is so bad, especially in some pockets. Let me give you an anecdote. In Namakkal region, they had the highest percentage of passes in twelfth standard consistently for the last several years. Later it was found out that during the eleventh standard, they taught 12th standard subjects and didn't teach eleventh subjects at all. When they moved to twelfth, they kept on revising and taking practices tests. In this, the
part of this noble profession called teaching. Many of our boys and girls, right from 10th standard start preparing for JEE and Advanced JEE to get into IIT. If they don't get it, they have to go to Tier 2 institutions where there are some other tests. Rich parents and parents who have reason to borrow money, send their children abroad. If they go abroad for PG, we can understand. The fact is, every year 3.5 lakh students leave India for higher education abroad, mostly for
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undergraduate
classes.
At
any
point
of
time,
It's a serious situation. Those
approximately 14 lakh Indian origin students study
students, when they are 24 or
abroad.
25, finish their PG, start working and repaying their loans. They
An Economic Problem
start despising India and
Look at the economic side of it. Each student pays
complain about Indian systems.
approximately Rs.25 lakhs per year for tuition and Rs. 5 lakhs per year for housing expenses. At Rs.30 lakhs per year for a four-year program, they spend Rs.1.2 crores—plus or minus—depending on the city and the
roughly $50 Bn, financing institutions in foreign
university. So we are talking about 14 lakh students,
countries and their faculty? This is a pathetic situation.
each spending Rs.30 lakh each year, for the duration
Not all of parents are rich. They borrow money for their
of the program. In other words, India is sending a large
children's study abroad. Many countries conduct
number of students abroad. These students finance
education camps in schools in cities and even towns,
their education abroad because they believe they don't
offering spot admission to students in the eleventh
have the institutions of their choice here. According to
standard. When they finish 12th, they can go to
a report in The Business Standard dated 25th of
Australia or New Zealand or UK or USA. So effectively,
September last year, by the year 2024, Indians will be
we finance the higher education sector internationally
spending
international
from Indian parents. These students, after doing 4
education. Just imagine! That's half of foreign exchange
years of UG, naturally want to do a PG specialization
the entire IT Industry is earning.
for two more years, after which the parents tell the
$80
billion
annually
on
Now, it has become a finance problem. Why are the students and their parents in this country spending
students to stay back and work for a few years. The foreign countries also encourage the students to stay back, giving various visas like internship visa, work
The fundamental issue is that we failed to provide that opportunity for the students here to study, to give admission to institutions of learning of the same quality that they will get abroad...
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We had great institutions and
visa, temporary visas, etc.
we have not really upgraded to
Social Problem
the extent as required for the
Now look at the psychological impact. You're
population and for fixing the
throwing kids—17- or 18-year-olds who are not even
quantity and the quality
adults. When they graduate from school at that age,
problem.
parents transplant them to another society. They have to live with alien society members, adjust to the societal living, cook for themselves, do their own laundry, manage their own housekeeping and they have to keep
or unfortunately, our government in the initial years
contacting their social circles, family and friends here
focused on literacy than on education. Literacy is very
India. If they're sick, they take a first aid kit and then
essential but that alone is not enough. We had to get
they call the family doctor. After all that, they're
away from the Macaulay system of education of the
expected to study also. It's a serious situation. Those
British, which was for producing clerks for the British
students, when they are 24 or 25, finish their PG, start
government. We had to get our system to produce
working and repaying their loans. They start despising
scientists, engineers, doctors, researchers, teachers and
India and complain about Indian systems. They become
politicians. We had great institutions and we have not
alien to us. We talk about brain drain. Who put them
really upgraded to the extent as required for the
out in the first place? We did. We sent them out in their
population and for fixing the quantity and the quality
formative years to a society where they had to live away
problem. Education was a state subject initially. Then
from their parents, siblings, friends and families. They
it became a concurrent subject. Now, it is again moving
have to go through all the hardship and by 6 to 8 years’
to a central subject.
time, they are completely disconnected from this
problem, the government came up with the new
society. Of course, as a ritual, they'll come once a year,
education policy. It is an extremely good policy
spend a month here and go back. But they say, 'Oh no.
prepared by Prof Kasturi Rangan, who is a very
I can't settle back in India.' The fundamental issue is
accomplished person. You don't have to do skill
that we failed to provide that opportunity for the
development separately, diploma separately and so on.
students here to study, to give admission to institutions
You can enter and exit at any time. If you do one year,
of learning of the same quality that they will get abroad,
you get a certificate program; if you do two years, you
enough number of seats to solve the quantity problem
can
and to solve the quality problem, the money problem
undergraduate degree and so on. It’s a brilliant design.
and lastly the management problem.
But then, it is not immediately accepted by the whole
get
a
diploma;
Recognising the management
three
years,
you
get
an
country and there's tremendous opposition to it.
Management Problem
Because we're pushing down something from the top,
Who has to solve this problem? We immediately say
it does not have grassroots acceptance. If you change
it is a government problem. No doubt, it is the duty of
the policy, unless you convince people that what you
the government to provide education. But fortunately
do is for their own good and the good of the institution
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and that it is going to be win-win for all, there'll always
Even one institute from India
be opposition. We failed to take the students, parents
does not figure in the top 100
and state governments in policy implementation; we
institutes of these rankings,
are still struggling with it. Therefore, it has now become
which are globally tested and
a management problem.
well recognised. Our eminent
The Data Problem
IITs come between 125 and 150.
Let's come back to the quality problem. The government has recognized that we need to have a national level quality certification. The UGC has worked
scenario. Under the Indian laws, an education
out a system of ranking and come out with very good
institution by definition has to be non-profit. It has to
schemes and excellent programs. But to implement the
be run by a society or a trust or a non-profit company
system, you need to have minimum five years data
that can be a parent—institutions must run below that.
before you can get accredited. Creating data for 4-5
But we have innovative, smart entrepreneurs in this
years is a challenge because many of our institutions
country with brilliant minds and creative geniuses who
have not documented what they might be doing and
can always find a way of beating the system. They
do not have the systems to collect data and present it
exploit the loopholes in the system and make
to NAAC or NIRF for ranking. That is a huge challenge;
humongous amount of money from higher education.
a management problem.
Many of them are family-run businesses.
Lastly, with all these challenges, higher education
The parents who need a seat for their son or
has become a huge enterprise. When you have a quality
daughter who have not scored 98% or more, pay
problem and finance problem, some entrepreneurs
capitation
come in and see how they can make a quick buck in the
recommendation from people of influence and get
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and
other
fees
with
or
without
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admission. As a result, the system is deteriorating. So
A university will have a
you can see that it is a combination of failure on
department of health sciences
various fronts—quantity, quality, economic, social,
which requires it to run a
financial, infrastructure and management. If you see
minimum of 300 bed hospital.
that $80 billion are going abroad for 14 lakh students,
This combo will lead to a huge
you can imagine what would be the size of the
societal transformation.
enterprise in India for 1 crore people. What will be the turnover of this industry? Nobody knows. As they are non-profit, they don't have to declare their profits. There is no tax. We have a whole tax-free economy
are run by Government of India funding, which is tax-
running in higher education sector and there's a huge
payers' money. Some of our private universities figure
amount of money being made not only by institutions
around 700. It is sad that a country which can excel at
of higher learning but also by institutions who provide
global level in IT, Healthcare and Biotech cannot do that
training to join these institutions like training institutes
in higher education. The best of our institutes do not
and certification institutes. We have thousands of
provide talent as the industry wants them. They have
institutes mushrooming. According to a study done by
to go through a six month to two year internship to
a large hiring company, there are about one lakh
understand how the business works and how they can
vacancies in data science jobs now. Data science is an
apply their knowledge in the work place.
improved method adapted from what we called statistics. The shortage of data scientists is growing at
The Solution: University + Hospital
60% a year. Most of our higher education institutions
The simple solution lies in changing the product
have just added a subject or course in data science
itself. At the national level, we have more than 700
without getting to the essence of it. The discipline is
districts. It costs 750 to 1000 crore to set up a good,
forgotten. The father of data science in India is Prof
internationally comparable university. If Australia, New
Mahalanobis, who founded the Indian Statistical
Zealand or Denmark can do it, why can't we? We must
Institute (ISI) in Kolkata. Even the ISI has not adapted
set up one such university in each district. It can be
to data science. We just live in pockets of isolation.
public or private. Today, higher education is there mainly in Tier-1 and Tier-2 cities.
How We Fare in International Rankings Some of the Indian rankings by private agencies are part of a new business enterprise and we cannot rely on
them.
Higher
educational
institutions
are
internationally ranked by Times International Ranking and QS International Ranking. Even one institute from India does not figure in the top 100 institutes of these rankings, which are globally tested and well recognised. Our eminent IITs come between 125 and 150. These
In each district, there must also be one world-class hospital with 300 beds. The university and hospital must be interconnected. A university will have a department of health sciences which requires it to run a minimum of 300 bed hospital. This combo will lead to a huge societal transformation. The student will aspire to join that university. They can be closer to home and spend less money, without borrowing crores of rupees. They will get good education in their own
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districts. Denmark is a country of 7 million and it
designed our curriculum in such a manner that in the
boasts of 3 to 4 international universities. So why can’t
first semester, students don't study any subjects. All
we do it? The hospitals will provide medicare to the
of them study critical thinking, analytical thinking,
people in the districts, and people don't need to travel
logical thinking, tech skills and communication /
to faraway cities for treatment. Simultaneously, we can
presentation skills. They become one homogenous
see the transformation happening in academics and
group after coming from heterogeneous backgrounds.
healthcare.
The classroom becomes a cohesive group. They are going to be together for 3 or 4 years and doing projects
Sai University and Liberal Education
together and it is important that they communicate
We have created Sai University in OMR, Chennai.
with each other. In the second semester, there are three
Our vision is to be the first international university in
schools—School of Arts and Sciences, School of
India. Within ten years, we want to be in the Top 100
Computer and Data Science and School of Law. The
rankings of Times and QS. Other rankings will come as
students are given a bouquet of 15 subjects as a
by-products. We have already bought 100 acres of land.
preliminary course. A student can choose any 8
We are recognised by UGC. Sai University offers liberal
subjects of their choice. In year 2, they do a Major and
education across arts, science, technology and law. Next
two Minors. The combination is left to the students.
year, we will add a Business School with a BBA, B.Com
For example, a student can study Economics Major and
and MBA. In the following year, we will start a 300 bed
Computer Science and Law as Minors. No university in
hospital and followed by that, we will offer health
India offers a program like this. Our teachings are
sciences that can include fitness, nursing and so on. In
based on concepts of cognitive learning. SAI University
the conventional universities, if you opt for a stream,
is largely modelled on Stanford.
they give you a combo and you don't have a choice. In liberal education, students are free to choose their subjects. Even in the US, only some universities offer liberal education. Harvard University has a Business School and a Law School. A student in one cannot sign up for a course in the other. A simultaneous degree in law and management is not possible.
The proof of the pudding is when the student decides what courses he or she wants to do, based on their understanding of the courses. We had a robotics competition and the team that won was from the School of Arts and Science, not the Computer and Data Science students. So in conclusion, if you open students’ minds, free
What is Liberal Education?
their knowledge and let them to decide what they want
Today, parents decide the courses for their
to do and give them the opportunities in this country,
children. At the UG entry level, our focus is on marks.
by building institutions of eminence in India, then we
At UG exit level, our focus is on placement, salary and
can talk of higher education in India being at global
job. But in liberal education, we provide a wider base
levels. We cannot do this without changing the
of key concepts of knowledge to the students. The
foundations. I hope SAI University will set an example
students can decide what they want to do and which
for others to follow, so they too can adapt to an
one they want to pursue. In Sai University, we have
international model of learning.
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Mr C K Ranganathan, President, AIMA and CMD, CavinKare, spoke on the occasion of the MMA 66th Annual General Meeting. His talk covered the changing landscape in business and workplace, and what corporates should do to adapt to the situation.
W
e have had a series of challenges and
global environment is not rosy at all and we need to
disruptions. First, it came in the form of
factor in this. The consumer behaviour has changed
Covid.
It is still there but is no more
significantly. Who would have thought that a 55-year-
threatening the way it used to be. Next, the war
old woman who studied up to 6th or 7th standard,
situation was threatening us and it seems to be
having a mobile just to speak to her friends and
somewhat settling down. The latest one is inflation
relatives, would now be shopping online? Because of
around the world and I think we are in a situation of
Corona and the way she has been educated by her
stagflation. India, as of now, is looking well but the very
grandchildren, she is making better use of online and
high inflation rate is a cause of worry. We had
social media.
unprecedented oil price rise, including that of vegetable oil, but it has started coming down. This should make the economy to come back fast. I am quite optimistic about the future but our western world is catching up with inflation. We can't say that India is not going to be affected by this as we are an import-dependent economy.
The FMCG companies are all dancing to the customer’s tunes. For so many years, it was difficult to create a paperless office. But Corona suddenly made life simpler and easier with a lot of automation. But automation brings in a lot of issues as we go forward and which we need to be prepared for. The consumer behavioural change is the prime thing that dictates a
Change in Consumer Behaviour
series of behavioural changes to the industry and which
Though there are a lot of positives within India, the
needs to be critically and closely looked at.
BUSINESS MANDATE
fountainhead of excellence
22 AUG 2022
Will Robots Take My Job?
at how to ensure that our team members are
Automation is very good and interesting but it poses a big risk and a challenge particularly in the white collar segment. What was good in the past does not work well now. Suddenly you are required to learn a new skillset because machines are eating into the jobs that people were doing. There is a website called ‘willrobotstakemyjob.com.’ I constantly see that and check at least once in 45 days or two months to see which jobs are eaten away by machines. You type in a job on that website, say accountant, and it will say you are doomed and that 97% automation has been achieved. We need to know the levels of automation being done in each job. What is being done elsewhere is going to catch up with us very fast. We need to be aware and take cognizance of that. So that is a worry for us.
destruction happening because of digitization. The other thing is that automation calls for upskilling of our own people. For some of the requirements, people are not even ready and they are not able to upskill, however much efforts they put. That is going to be more and more pronounced as we go forward. Mark my words. Over the next four to five years’ time, you will be compelled by competition and if you don't change, you will be outsmarted by competition. We have to be competitive to stay alive in business. We need to change along with others.
Selecting the Right People There
are
two
important
requirements
for
develop their people substantially and put in the right
I am sure that a lot of leaders will definitely look 23
processes. We need to handle the employment
organizations to survive in the future. One, they must
Skilling Your Team
AUG 2022
continuously educated to manage the automation
efforts. Two, the ability of the employees who join an organisation is also important. Our interviewing
BUSINESS MANDATE
fountainhead of excellence
My belief is that the value of an
techniques and selection of people have substantially
enterprise grows
changed in the last two years and it is definitely
disproportionality to the value
yielding results. We are able to see the change that we
it adds to its own stakeholders
have brought in. We have always been hiring for attitudes and I'm sure it's the case with everybody. We
and more so, to its own
are now looking at their ability and agility to learn,
employees.
unlearn and relearn, as the world is changing very fast and change in behaviour is a crucial aspect. The future is going to demand a far higher amount of changes. We have to adapt to the new environment and new technologies. And the skillset we need to validate is if adaptability quotient is high or low.
the topics. ‘Learn, absorb and apply’ is our message. There was a lot of resistance initially but now the employees have taken a liking to it, as their knowledge and along with it, their market value is also going up. The results are very good and it has led to a
Invest in Yourself
phenomenal change. While we develop people, we will
Fundamentally, we learn by reading, seeing, listening and by all such combinations. The level of comprehension by individuals varies. Today, we need fast learners who can comprehend and apply it back. We are asking consciously our own colleagues, 'Now that you have learnt something, tell us, how you are going to apply that learning.' We have a program called IIY—Invest in Yourself. Already, 40% of our functions have embraced it. Our endeavour is to make it to near 100% in the next two years’ time. We have been telling
be also losing some. But what if you don't develop people and they stay on? That's a worse thing for the company. It is important that we look at that. Therefore, there is a responsibility for the company to develop its own people, to be ready for facing the onslaught of the digitization that's happening and the change
in
technologies.
The
professionals
and
employees are also equally responsible to learn fast and let go of the obsolete technologies. There will be a new turbulence because of this.
people to upgrade but it was not happening. Now we
Companies who learn fast and who are able to
have given a dedicated one hour slot during office
make their people learn fast will go a long way. My
hours and the subject is clearly predefined. We say that
belief is that the value of an enterprise grows
you have to read or see YouTube channels or whatever.
disproportionality to the value it adds to its own
We specify the subjects and ask the employees to
stakeholders and more so, to its own employees. The
familiarise, come back and make a presentation to their
vice versa is also true. The value of an individual grows
own colleagues. Every Friday is dedicated for that. It is
disproportionately to that of the value that he or she
not only about the learning but also about how am I
adds to the organization. This value will redefine the
going to apply the learning. What's the selection
changing and turbulent environment.
process for the subject? We choose the topics based on their utility to the company. We must be able to apply the concepts learnt immediately and that must be beneficial to the company. That's our crux of selecting
The pandemic may go off; the Ukraine war will go off and the inflation will settle down but the digitization which was started some time ago will go on and will give us lot of pains if we don't change.
BUSINESS MANDATE
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24 AUG 2022
25
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BUSINESS MANDATE
fountainhead of excellence
Dr Sujatha Narayan, Senior Vice President and Region Leader, India Region, Wabtec Corporation, was the Guest of Honour at the MMA 66th Annual General Meeting. She spoke on the turnaround of Wabtec in the most trying times.
I
shall share with you, some thoughts which are intuitive and experiential in what it takes to lead a company successfully in India. I would like to start
by rewinding to December of 2016. At that point, I was running a business which was a part of 3M. It sold graphics, cleaning and architectural materials to a very wide segment of customers—banks, institutional owners and others.
The Three Pillars If you look at the railway industry today, almost everybody is a mechanical or an electrical engineer. I have a Ph.D. in Polymer Science and all my work so far was in polymers and chemicals. I couldn’t think of a single large company with a woman CEO. I had no ‘Railways’ background. I am going to elaborate on the answer that I gave in that interview. Leading a company
I got a call from a company called Faiveley Transport, which had just been bought by Wabtec
holistically as a leader, CEO, MD, GM or a business unit head is focussed around three pillars:
Corporation, one of the world's oldest railway
• The setting of the strategy
companies, building components for trains and
• Ensuring execution excellence of the strategy
locomotives. It was for a Managing Director’s job and that sounded interesting. In the interview, I was asked by the hiring manager, “You've got a great track record with 3M, but how will you fit as a Managing Director
through the day-to-day business • Taking care of the people
Setting the Strategy
for a company in the Railways? How do you think you
It is the singular responsibility of the leader to set
can lead this company?” At that time, it was a hundred
the strategy. This is one space that has absolutely no
million dollar company, with about 800 employees.
room for delegation. Your managers who run the day-
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to-day activity of the business do not have the time. They deliver the numbers and customer satisfaction that you need to generate the financials, for existence as a company that makes profits. You have the luxury of having the helicopter view of the entire business, the industry, the customer, and looking into the future and building the strategy. When I became a new MD, I kept my mouth shut for at least two months. I spent these months to learn from everybody that I could, especially the people who reported to me and the people who reported to them. Humility is one of the most basic competencies that a strong leader has.
Customers and Sales Team Matter a Lot My recommendation is, spend tons of time with your customers and your sales people. Both of them talk a lot and so you will have a lot of learning from them. Many people make the mistake of spending a lot of time inside the company. What worked for me is that I visited every single customer along with my sales team, from different levels of the organization, to get a holistic perspective. Spend time with your engineers. They are the ones who understand your technology and your products. Spend time with old-timers. They will tell you about failed experiments, so you can save time
It is extremely critical to spend the initial months learning, and then every day after that, even if you've been a CEO of a company for 10 years. With the kind of VUCA world that we live in, learning is really the key
not trying those again and in doing experiments that could potentially succeed.
The Power of Communication
and you have to understand your business, industry,
Once you build the strategy, then—communicate,
customers and their needs and your value proposition
communicate and communicate. This is one thing that
in the industry. You must have the intelligence to
a lot of leaders keep close to their chest but I think it's
explain and understand what is happening to the future
extremely important to communicate the strategy of
of that industry. That's how you build a strategy.
the organization to all the employees. Not only does
27
AUG 2022
BUSINESS MANDATE
fountainhead of excellence
that drive performance and buy-in but also increases
If you are always in the midst
employee engagement and motivation for them to stay
of execution, then something is
with the company. To give an example, we have created
wrong with your organization,
a billion-dollar vision for Wabtec in India, which is
because, as the leader of the
about a half a billion dollar today. We hope to become
organization, you don't want to
a billion dollar in three to five years. In every single
be in the day‐to‐day execution.
town hall that I conduct and in every meeting that I go to, I talk about the billion-dollar plan. Today, I can bet that if you go and talk to any Wabtec India employee and ask them about the future of Wabtec, they will
Rope in the Experts
mention the billion dollar plan and that's what they are
When I joined Faiveley Transport, which was then
rallying around. I see a tremendous amount of buy-in
a Wabtec company, I kept getting escalations from the
from the organization.
team, from customers and from employees about our
Execution—Managing by Gaps
manufacturing. They kept saying that they were not able to deliver to customers’ requirements. Our on time
Your job as a leader is to ensure execution
delivery was very low. Employees were leaving because
excellence. If you are always in the midst of execution,
they could not take the customer pressure. When we
then something is wrong with your organization,
looked into this, the problem was very clear. We had a
because, as the leader of the organization, you don't
market that had a very high demand. This is India and
want to be in the day-to-day execution. People believe
we are excited about how fast it grows. Then we had
in different ways of running a business and this is my
suppliers who were smaller companies and they were
personal philosophy. I strongly believe in the principle
not as organized as we would like them to be. We did
of ‘managing by gaps.’ I spent a lot of time creating a
not have a great supply chain planning process. This is
landscape of how every department was operating and
when I brought in a consultant –Deloitte—and with
how their leaders and teams were. I put them in red,
their
yellow and green buckets. I left the green ones alone
transformation program. This set the stage for the
as they knew what they were doing. They were
company doubling in sales and many more times in
delivering results and doing the right things and I didn't
profitability. This was the keystone of my success.
support,
we
ran
a
huge
supply
chain
spend time with them. The yellow were people who were progressing and the departments that showed real gaps. When I joined the company, this is where I spent most of my time. There is a thought that we must address our ‘Pareto,’ and that the largest and most profitable businesses should get most of your attention. That is not how I operate, as I don't believe in micromanaging or rocking the boat of things that are already doing well.
We often hear that consultants just come and tell you what to do, make pretty Power Points and charge a lot of money. From my experience, working with the right consultants has helped us a lot. We brought subject matter and external experts—not only Deloitte but also others—in different areas like customer centricity and reliability and even in our operations. You cannot have every single expertise within your
BUSINESS MANDATE
fountainhead of excellence
28 AUG 2022
company. We brought in an external company and
on fixing the gaps that we have and ensuring that other
drove customer centricity with an obsession. In every
parts of the business don't break with a very strong
meeting, we talked about customers all the time. Why
governance process.
did we do this? My observation was that people were working for the P&L. It was all about delivering sales
Managing People
and profits. Not a single person was talking about
Every time I have a job, I feel like my team is my
customer needs. I had to reprogram their DNA for them
family. That doesn't mean you are going to protect
to understand that the reason they have a pay-cheque
them at any cost. You have to take care of performance
is because they have a customer who's willing to pay
issues just like you take care of a child that is not
for their products. So we ran this thematically. Every
performing well in school, by addressing the child,
year, in the last five years, we would pick a theme
giving resources and helping the child to do it. But one
which represented a gap in the organisation and we
of my observations is—and this is not just in India or
would run it holistically.
in the companies I have worked—that across the world,
At this point, people may ask, “If you're focused around managing by gaps, then what about the large pieces that are working and how do you make sure that they don't tank?” That's where governance comes in. I use the Hoshin-Kanri methodology but there are a number of techniques by which you can monitor the performance of the business to ensure that things don't go wrong. So in summary on the execution piece, I spend a large portion of my leadership time focusing
even the fundamentals are not in place. We have got companies who pride themselves in their HR processes. But
fundamentals
like
clarity
of
29
and
responsibilities, setting up objectives in the beginning of the year, these objectives and goals being SMART– that is specific, measurable, actionable, responsible and time-bound—periodic development
review
discussions,
processes,
strong
rewards
career and
recognition and strong employment engagement activity are not really being done by the people who
Communication has been a big part of how we've driven success, communicating good news and bad ones.
AUG 2022
roles
BUSINESS MANDATE
fountainhead of excellence
should do it; it is not the top leadership but every
leadership team. These leaders ran projects to drive
people manager in the company. That is where the
themes like customer centricity, reliability and
lacunae is, and one has to spend an extraordinary
competitiveness.
amount of time systematising this in the organization, so that this process is well in place. Communication has been a big part of how we've driven success, communicating good news and bad ones. When we have
Now I have taken it down to three levels. We are trying to pull more and more of our leaders and our employees into the execution of our billion dollar plan.
a bad quarter or when we lose an order, we talk about
In 2019, I was in the US talking to our CEO and he
it openly so that organization and every single
asked me, “You're a half a billion dollar company. What
employee will understand the challenges and what their
stops you from being a billion dollar company in five
role can be. I often hear how inspiring it is for them,
years from now?” That's a big, scary goal but I said,
not only to be part of the success, but also to listen
“Why not?” Wabtec is in the largest rail transportation
about the failures and resolve within oneself on how
market in the world. This is a company that has
we can turn it into a success the next time.
invested very significantly for the last two decades. I have three million square feet of operational footprint
Reward Teams and Build Leadership
and close to 3,000 employees. Why can't we do it right?
The other common issue that many of us as business leaders face is department politics. There's a
Leveraging Three Pillars
fantastic book by Patrick Lencioni called The Silos,
We built the strategy of how we will get there by
Politics and Turf Wars. The way I address this is to
leveraging the three pillars—one is the large and
drive all our initiatives, cross-functionally. We do not
growing market. The second is the low operational
have public awards for individuals but only for teams,
costs and the third is the high engineering talent. We
especially cross-functional teams. This makes people
presented this to our investors at the global investor
stop blaming each other. A management philosophy
meet and got buy-in from the board. We came back to
is developing in the new age companies where they
India and pulled in this leadership pyramid. 110 people
don't have departments.
sat together and tried to figure out how we are going
They just have groups of skills that work on various projects. The other concept that I am experimenting
to move towards our 1Bn$ goal. Out of this came 14 work streams.
with is a concept of leadership pyramid. One of the
Each of these work streams is driven by our leaders
mistakes we make when we are a small company is that
and cross-functional teams. We had a little bit of a delay
the proprietor calls all the shots and runs the company.
because of two years of Covid. We went back and
But as you begin to scale and get larger, you need more
presented it to our global community on how we will
and more of your leadership involved in running the
get there. The nitty-gritties didn't come from me. All I
company. So the first experiment I did when I was the
did was to set a vision and get people excited about it
MD of Faiveley Transport, was to create an operating
but the leaders and the team came up with ideas. Now
council which had myself and my direct reports. Then
I am going to present it to the board of the company.
I created a layer of another 40 leaders called the senior BUSINESS MANDATE
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AUG 2022
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fountainhead of excellence
Dr Adrian Haack, Director, India Office of the Konrad‐Adenauer‐ Stiftung, was the Guest of Honour at the MMA 66th Annual General Meeting.
I
t is a great pleasure for me to attend MMA’s Annual
not believe that. I believe that after the pandemic, a
General Meeting and Awards Ceremony—my first
new era of world trade will begin. For the past three
official conference—as Director of the India Office
decades, China has been like a magnet that has
of the Konrad Adenauer Foundation. Our partnership
attracted capital, production and resources. China
dates back to 1989. We say in Germany that
copied what could be copied. It has flooded the entire
‘Management is like a bicycle. You need to move
world with its products. The Indian government has
forward, otherwise you will fall off.’ The world has been
already drawn the right conclusions and has become
experiencing a pandemic for the last few years. This
more independent from China. This lesson has now
pandemic is perhaps the only event in all of human
been understood in Europe also.
history that we have ‘all’ experienced. We were prisoners in the Corona pandemic. We can only hope
Don’t Get Walled In
that this time is now behind us. We've all seen
But we shouldn't make the mistake of walling
globalization take a break, travel becoming impossible,
ourselves in. It's one thing to protect yourself from
supply chains getting broken and how vulnerable we
Chinese dumping, and it's another to be generally
are when we depend on China. We've all seen China
closed to the world. The KAS is the foundation of
trying to cover up its role in the pandemic. There are
market economy. This is our story, our heritage and
many people in Europe and also in India who say that
our DNA. After the Second World War, Konrad
globalization has had its day; global trade was a
Adenauer and Charles De Gaulle started European
mistake and that national markets are the future. I do
integration. They believed that a common market
BUSINESS MANDATE
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32 AUG 2022
should help rebuild the continent after the war and
businessman told me that it doesn't work in Asia and
prevent new wars. This project was a model of success.
India wants to protect itself from Chinese dumping.
The European Union is now a fully integrated single
‘When you join a common market, the Chinese products
market that works great. Train from Munich to Madrid
will be simply relabelled there.’ He's probably right. But
is like from Delhi to Chennai. In economic terms,
why do we think in terms of continents? Digitization
Europe is one country. Polish car seats and Italian
and modern logistics have brought us closer together.
windows make the globally popular German cars
Why don't we try to implement simple FTAs? Then we
competitive.
can build trust and we can expand the agreements. The
The countries of the European Union are the most important trading partners for the German economy. In short, the European Union is the basis for prosperity in Germany. Free trade is the basis of German companies. The last 70 years have shown that free trade can be a win-win business. It's not that some European countries have advantages and others have disadvantages. Some are more successful than others, but all are successful. All states that have joined the European market have benefited from this. Look at Poland, for example. Since its accession in 2004, the country has had rapid development. An Indian 33
AUG 2022
EU started with the steel sector. At that time, there were just six states. More and more states followed. Coal, agriculture and other industries followed. What can prevent the fact that in 2050 there will be a common market from Los Angeles to Berlin to Seoul to Sydney to Chennai?
Cognac Shows the Way Konrad Adenauer did not have the idea for the European market. It was a Frenchman named Jean Monnet. His father was a cognac dealer. He sent his son to Germany to sell his alcohol there. Monnet knew that the Germans drink even more than the French. He
BUSINESS MANDATE
fountainhead of excellence
became very successful and found a lot of loyal
Free trade is the basis of
customers. Then the First World War broke out and the
German companies. The last 70
business stopped. He resumed trading after the war.
years have shown that free
Even the Second World War could not harm his idea.
trade can be a win‐win
The fact that Monnet failed twice because of two world
business. It's not that some
wars shows us that every idea has its time. The world will not grow together tomorrow or the day after. But
European countries have
it will and become small, closer and even more
advantages and others have
interdependent. In Europe, 500 million well paying
disadvantages.
customers are waiting for your products. Most of them don't know about it yet, but that's exactly what a good businessman can change.
BUSINESS MANDATE
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34 AUG 2022
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Talk by A Rajarajan, Director, Satish Dhawan Space Centre ﴾SHAR﴿, Sriharikota, played a pivotal role in developing many innovative technologies for the development of various satellite and launch vehicle structures for ISRO's programs. He delivered the keynote address at the 9th Dr K C G Verghese Endowment Lecture.
F
or ISRO, space is about a scientific pursuit for
application and strategic communication. Earlier
applications with a lot of common sense and a
government used to do everything. Today, there are so
little bit of engineering; and that should lead to
many players. The private players should come forward
socio-economic development. Earlier R&D used to be
to making a communication satellite or an earth
done at ISRO. Now, it has gone to academic institutions,
observation satellite. The strategic areas can be taken
including for disruptive technologies.
care of by the government. For private needs, the
In any R&D environment, there has to be an organisational set-up. Each lab should have a goal and should come out with meaningful innovations. The management should be able to provide a technology. It should lead to a development of a product and a process to realise the objective of the utility. There should be scope to commercialise the technology that comes up in the process. Institutions that want to work on satellite development must take note of these factors.
customer needs to fund the project. For example, we are launching a satellite for Tata Play and the fund comes from them, including the launch and other related costs.
Invention and Innovation The institutions must be able to harness the result of an invention or an innovation. Both invention and innovation should yield a product or service, with the available resources and within the given timeframe. The product or service must provide a competitive edge.
In ISRO, the funding comes from the government and we can use it only for national needs like strategic
Feedback should be obtained from the market on the product and service and should be used in future R&D.
BUSINESS MANDATE
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Why Satellite?
customer is and what application they need. Let us look
• It is cost effective as compared to terrestrial
at some customers and their applications:
systems. Thousands of watch towers can be
• For AIR, the application is radio broadcasting.
replaced by one satellite.
• For AAI, the application is landing of flights.
• Independent of the distance, communication
• For IMD, it is weather monitoring.
links can be maintained. That is why, BSNL is
• Hospitals need telemedicine using which they
able to provide communication in remote
can provide the best treatment from remote.
areas.
• Banking sector needs VSAT for their ATM
• It covers a vast area. We have ease of configuring a network-state to state, nation to
network. • There are civilian and strategic requirements
nation or even continent to continent. • We
can
get
a
space-based
including navigation solutions.
reference,
• The Ministry of Earth Sciences must know
accurately. We can even give a reference for the earth in the solar system.
where the oceans are warming up. • Tata
• Accessibility in every vantage point, using which, for example, we can predict where a
Sun
Network
need
DTH
• Doordarshan is a national need. For the right and factual information, we depend on it.
• The coverage of landmarks and which are not
• Digital India is connecting all parts of India
even our own.
through network connectivity, so we can communicate with people even in inaccessible
What is the application?
areas during times of disaster. We can also
To configure a satellite, we must know who our 37
or
connectivity.
flash flood is going to occur.
AUG 2022
Sky
BUSINESS MANDATE
digitally
fountainhead of excellence
map
the
entire
India
for
the
resources including manpower. This calls for huge inputs.
Different applications call for completely different
97% of the revenue is from the data that we get -not
configurations. This makes the
from the space vehicle or the satellite. Therefore it is
industry become wary, because
important how we well we can leverage the data for various applications and commercialise that. In fact,
the investment made for one
the biggest revenue is made by those who don't own
satellite may not be useful in
even a single satellite or a launch vehicle, similar to the
the making of another satellite.
Ola model. With so much of applications, the world is wide open for anyone who wants to enter this space.
The milestones
develop the technology?
The major milestones in a satellite project are
3. What is the performance required and the specifications?
• defining
4. What are the regulatory aspects?
• configuring • getting approvals
These should help decide the payload configuration
• procurements and making
and for that payload, a suitable satellite system. The
• subsystem testing
satellite system can vary from being rudimentary to
• system level testing
advanced,
• shipping to the launch site
sophisticated it should be. There is no point in
• preparing for launch
spending highly on a payload for a satellite system that
• in-orbit testing
is going to be in space only for six months. Then the
• handing over to operations, if everything is
four questions that need to be asked are: For what?
successful.
depending
on
life
span
and
how
How long? Why am I doing this? What is the service that
• finally, decommissioning. As a responsible person, we need to decommission the satellite from its orbit once its useful life period is over. Otherwise, we will add to the menace of space debris. Also, that orbit will be required for some other satellite.
I will be able to provide? Depending on the satellite and its weight, the launch vehicle will be decided. The weight of a satellite may vary from 1 kg to 10 tons. There are many launch vehicles available commercially.
Reflectance‐ The Core Principle
Defining the need There are four aspects of defining a need of a
Reflectance is the chief property by which all earth observation satellites work. It may be 300 kms or 600
satellite:
kms away from the earth. It observes the earth's
1. Who needs the services? 2. Do we have the technology or should we buy it from within India or from another country or
reflectance
through
different
wavelengths
and
percentage of frequency. The reflectance from land,
BUSINESS MANDATE
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38 AUG 2022
soil, vegetation, water, buildings, forests and roads
The solar panel systems produce solar power but
happen at different wavelengths. There is a slight
this must be regulated and supplied. Each payload
refractance from the atmosphere. Earth observation
requires a certain power, at a certain voltage level. The
satellite picks up these wavelengths, which are different
instrumentation and digital system helps in collection
for different objects and accordingly deciphers the
of the data that we require. It must be able to
objects and various features. This is one critical area
communicate the data between the payloads, between
where technology and science come together.
the spacecrafts, earth to spacecraft and between the
Just like an Amitabh Bachan conveys different messages in different images of different ads, each image gives a different information. The depth, the canvas, the resolution and the information differ for different images. That is why we need high resolution, multi-spectral and hyper spectral imaging systems. Even a book in one language in the hands of a student can be picked up by a satellite, translated in the boy's native language and delivered to him through an App.
The Subsystems
ground stations. All should be linked in a proper manner. There are different sensors to sense the temperature, wind, position, etc. The control system keeps the satellite in control.
The Design Elements The structure has to be designed using modelling. The satellite gets exposed to radiation from both the sun and the earth. Electrostatic charge has to be accounted for in the design. The sensors should be correctly positioned, so that the satellite can be oriented
The factors of the satellite system that need to be worked out are the mass, power requirement, volume, cost, integration, reliability and time frame. How well you are able to transmit and receive and the quality of
in the right position, 24 X 7 for 365 days for over several years. Finally, everything must be put in the launch vehicle and launched. For assembly and integration, we need mechanical faculty, electronic faculty and ground checkout faculty.
the data help us deciding the payload. Humans are like satellites. We observe and communicate data. To do this, humans should have a sound body. Similarly, structurally, the satellite should be very stable, to keep everything in position. Depending on the outside temperature, we take some measures to keep our body temperature under control. The thermal control system of the satellite takes care of this need. We need a good deployment area. There has to be a propulsion system to propel the satellite into the orbit. The components should be able
The layout needs to be designed keeping into account the mechanical, electrical and environmental factors. For instance, the heat generating elements should compensate the cold areas. The rocket is subjected to severe vibration and the components should withstand this vibration. For 15 years, the satellite will be in space and during that period, the technology should not become obsolete. Special requirements, if any, must also be taken into account (e.g.: coded / encrypted communication for secrecy).
withstand temperatures from -180 to +180 degree C.
There must be one nodal agency to coordinate
We need pyrotechnic devices. The antennas should be
everything. In our case, the payload is developed by the
in place.
Space Application Centre in Ahmedabad. Vikram
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Sarabhai Space Centre (VSSC) takes care of the antenna subsystem and provides the launch vehicle, which is opt for the particular application.
In the last two models, we are open to all the industries. Already, the reforms are in place. The challenges:
The supply management consists of analysing the requirements against available options, working out budgets and fund flow, establishing a business model, management of obsolescence, working a way through purchase procedures, managing transfer of technology, acceptance criteria, maintaining an inventory and planning ahead for the next cycle.
We have many challenges in the satellite project and some of them are: • Scheduling and optimisation • Managing multiple objectives of the satellite and the payload. Managing this requires multifaceted expertise. • Prioritising and managing the project, when
ISRO’s Different Models
there are many other competing projects.
In ISRO, we started with the manpower supply model. In the second model, we provide the design and drawings and the industry makes it.
• Technology management • The matrix management of people reporting to different people, for different responsibilities • The availability, maturity and management of
In the third model, we provide the specifications and the industry designs and provides the products.
people • Concurrent
engineering,
which
is
very
There are many integrators in places like Bangalore,
important in a spacecraft. We have nearly a
Hyderabad and Chennai. There are experts in the
dozen disciplines, where everybody should
components. Some may be an expert in landing gear
know what is happening in the other areas and
and we can take it from them. This model also was
how we should interface. One change, in one
successfully established. In the fourth model, the
area, will impact all the other areas and the
industry comes to ISRO and develops the products and
integrator should manage this change.
services within ISRO. They can use ISRO's facilities and
• It takes roughly 18 months to develop the
don't need to invest. They can learn the technology and
system. In the meanwhile, we must see if there
multiply that. This too has been tried out successfully.
has been a disruptive technology and do a
The fifth model is making the satellite by ISRO. In the
mid-course correction.
sixth
model,
we
give
the
complete
end-to-end
specifications and configurations of the satellite and launch vehicle and the industry makes it and gives to us. This is what we are presently approaching.
The timeframe for the project, roughly is: • 12 months for planning
In the next model, we will provide the specifications for the satellite and the launch vehicle. Both will be made by the industry and will be launched from a convenient place. It could be even sea.
The Timeframe
• 14 months to identify all the packages for the subsystems • 9 months for hardware activity • 3 months for testing
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• 24 months for making the complete system
ready.
We need to create multiple leaders and achievers. We must retain the highly skilled
here will be overlaps between the different stages. There must be communication between the ideator, the
manpower and motivate
configurator, the implementer, the solution provider
everyone.
and the integrator. Different applications call for completely different configurations. This makes the industry become wary, because the investment made for one satellite may not be useful in the making of another satellite. Recently, we launched 14 satellites, all of which were different from one another. Managing the uniqueness of the satellite calls for advance planning, optimisation, no compromise on reliability, thorough follow-up on mission critical elements and taking decisive actions. The right scheduler is important.
ISRO values people who analyse each and every aspect of each activity, rather those who tick all boxes without analysis. This is where sceptics and blockers have a major role to play. There are silent persons like pythons; and active persons like rattle snakes. You must know what the silent persons have in their mind. Oftentimes, the silent pythons carry more vital information until they are tapped in the right way. We are clear about the active rattle snakes and we don't
Management of all these is a big challenge.
need to worry about them. One needs to find a way to
Providing infrastructure for making satellite is a good
see that all these different people gel and work
business model. You must have a method to do
together.
everything. In spacecraft, what is most important is methods, methods, methods. We should not change tested methods unnecessarily. As we can see, the satellite project is highly complex.
Be a Contributor We need to create multiple leaders and achievers. We must retain the highly skilled manpower and motivate everyone. Everyone should be given a vision
Managing People
of career growth. In ISRO, we try to give a feel of sense
The people in the spacecraft industry are from
of achievement from each and every individual and
different backgrounds and their excitement level will
every team. We ensure that everybody is a contributor.
be very high. They are with high IQ and EQ. Integrating these people and harnessing them as a team is a big task. There are people of champion stuff who just pride in
doing
their
work,
without
bothering
about
recognition. There are doers who do the work given and there are sceptics. There are also blockers. You should have them all because they will make you to think in different aspects.
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By contributing, one can be reliable, make the first move, understand one's scope of work and cultivate healthy official relationships. A manager or leader will work for a limited time. But a contributor will work till his end. Every one of us must tell ourselves, "I must be a contributor." In spacecraft, we ensure that people become contributors, who can do wonders to the nation and the world.
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The presence of a vibrant development sector is a boon to the nation. Organisations work for a social cause, either as non‐profit CSOs or as a social business enterprise, to make the world a better place to live in. This seminar focussed on delivering knowledge on the working of CSOs, including the compliances and required capacities at the organizational levels apart from discussing the opportunities available in the development sector.
We can work towards removing inequalities.
people and their social, political and economic backgrounds. When I asked the District Collector about this, he pointed out that the number of NGOs in the
Mr Swaran Singh, IAS ﴾Retd﴿
T
region is more than the population of tribal people.
here is a need for civil society organisations to
build capacity and capability. NGOs
must
improve
the
delivery mechanism and carry out impact assessment, which is very important. When I came to Tamilnadu, we introduced a simple concept
There are 3 million NGOs in India. With such a large number, we can definitely work towards removing the inequalities. We can empower our women. Each individual is talented. We have committed NGOs and volunteers and what is needed is integration of the activities and integration of the mind.
called PRA—Participative Rural Appraisal. I was posted in Tirunelveli, in South Tamilnadu. We introduced PRA and published the beneficiaries of IRDP. Immediately,
NGOs follow a participative approach.
there was an objection, because people had not heard Mr T S Jawahar IAS, Addl. Chief Secretary to Govt of TN
about this exercise earlier. We must look at the state of our tribal people, say, the people of Nilgiris or Jawadhu Hills. Their number is less. When I went to Nilgris, I could see that there is an uncontrolled, inequality in the state of living of tribal 43
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G
overnment
and
NGOs
don’t do different things.
They do things differently. The goals are the same: upliftment
of the most disadvantaged sections of the society. A
government and the NGOs/civil society organisations.
country's standard of living has to be judged only by
The government has got more funds and resources. But
the standard of living of the weakest. Why do we have
these resources are tied-up and unevenly allocated due
so much of disadvantaged sections in our society? The
to various reasons. You may find a refinery with no
reason is inherent biases present in our society like
crude oil source nearby. We may have a 900 crore
caste, community and geographical disadvantages. We
infrastructure project where we need to spend about
have people living in remote, inaccessible areas like
300 crores for fetching water, from 300 kms away.
hilly terrains or in the midst of forests.
These
The government has got a bureaucratic, top-down approach. NGOs are grassroots organisations. The feedback from the grassroots goes to the leaders of the NGOs who decide their approach. Thanks to British rule, even today, many government servants look at the people like their subjects and act as if they are their rulers. NGOs follow a participative approach. They work with the people. The government is bound by many rules and regulations. Bureaucratic procedures delay the decision making and implementation process. NGOs are relatively flexible and adaptable to the local needs. What is important is the cooperation between the
constraints
happen
because
of
various
compulsions for the government like need for development of the locality, political considerations, etc.
A Case of Close Coordination I worked in Nagapattinam for two years. I joined 18 months after the Tsunami struck the region. When I joined, the real challenge was the rehabilitation works. There were 300 NGOs active in the area. We had an NGO Coordination Cell in the District Collectorate itself. Working as one team, we were successful in constructing 17,794 houses for the victims of Tsunami. This initiative was entirely sponsored by 58 NGOs. land
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and infrastructure support like roads, drainage,
so that they are not targeted by left-wing extremists.
electricity, drinking water were provided by the
Whenever there is a clash between extremists and
government. The type designs were approved by the
police, the tribals are the worst hit. We must ensure
government to ensure uniformity in the houses. The
that they participate in the mainstream. We must also
unit cost was fixed as 2.5 lakhs. The houses were built
towards
in earthquake-resistant design, in 93 locations along
organisations –the cooperatives and self-help groups,
the 188 kilometre coastline of Nagapattinam district.
and engage them right from the planning stage.
strengthening
the
farmer
produce
All the houses were delivered in time and are still going strong. We could achieve this because we conducted weekly meetings with the NGOs, cleared the bottlenecks and
It is a company's choice to spend the CSR bud get...
managed the shortage of materials like blue metal,
Nikhil Pant, Founder LAKSHYAA and CEO, REACHA
sand, cement, etc. Another 200 NGOs were working in the areas of livelihood, mental health and other issues.
T
This shows that it is possible to have a good Government-NGO partnership.
more
a permanent structure can provide. The government’s monetary resources and specialised services can be shared. But there are things which the government cannot provide and where the NGOs must step in and use their volunteer base. There will be difference between the output and involvement of a salaried government servant and a passionate NGO volunteer. The government has got a vast amount of data which will be of great use to the NGOs. Once, these were considered secret. But now thanks to the RTI, all these
was
replaced
by
Companies Act 2013 which has
There are certain things, which the government, as human resources including motivated personnel,
he Companies Act 1956
than
400
sections.
Section 135 of the Companies Act stipulated that companies must do social work, outside their business activity. Section 198 gives the formula for finding the CSR budget for the next year. Companies incorporated in India and having any one of the following, in any of the immediately preceding financial year qualify for CSR under the Companies Act: a) networth of Rs 500 Crore or more b) turnover of 1000 crore or more
data are being shared. The experiences learned can be c) net profit of 5 crore or more
shared through cross-learning. We all should work for the upliftment of our tribal
The CSR budget to be allocated for every financial
people. They approach government officials for help,
year must be at least 2% of the average net profits made
because they have faith in us and the government of
during the immediately three preceding financial years.
Tamilnadu. We need to sustain their faith through
CSR is a Board level function since 1st April 2014. The
collaborative efforts. We should support tribal people
10 member Board of each qualifying corporate must
through information, logistics, education and health,
form a CSR committee of the Board with three
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members. The CSR committee must have one independent
director
and
two
directors.
The
composition of the CSR committee must be disclosed in the annual board of directors' report. The functions of the CSR committee are to formulate CSR policy for the company clearly, stating budget and activities; and to monitor the implementation of this CSR policy. When you formulate a CSR policy, you must think about the requirements of your community. The actual spending of CSR budget must be reported to the board. There is an important change in the amendment made in 2021. Earlier the money from the corporate can be transferred to the company's foundation and reported as blocking of allocated budget towards CSR. If the amount spent on CSR was less than the budget, it was
the money either by itself or by giving it to other NGOs.
Three Types of NGOs NGOs can be of three types: •
A 1960 Society;
•
A Trust or
•
A Section 8 company.
The budget can be spent either by doing CSR activities (activity route) or by giving contributions for accepted categories (contribution route). The companies have to report their CSR under a tool called MCA21, similar to filing of IT or GST returns. The different categories of activity route and contribution route are given below.
enough to report the same and no questions were Activity route can be undertaken by:
asked. That is not permitted now. From Jan 2021, the rules have changed. The spending has now become mandatory. This is good news for NGOs. The company foundation has to spend
• Company vehicle / NGO foundations (can be new) • External vehicle / NGO (minimum 3 years
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(MCA) is closely monitoring CSR spending &
• Central or State Government vehicle (can be
compliance,
new)
through
detailed
reporting
format introduced in January 2021.
• Parliament / State legislature established
5. Government is actively utilizing CSR for
entity (can be new)
nation-building and disaster management.
The following are examples of Contribution Route: • PM Cares / PM National Relief Fund / any
It is a company's choice to spend the CSR budget
Central Government fund for SC / ST / BC /
and there is no compulsion from the government on
Swachh Bharat Kosh / Clean Ganga fund
what activity it should do or to which fund it must and
contribute to. The penalties for non-compliance of CSR
Development projects in STEM; qualifying
rules are now very stringent. The maximum penalty is
institutions in STEM research for achieving
Rs 1 crore. Corporates should prepare their CSR plans
SDGs.
well ahead of the financial year, so that the budgeted
• Qualifying
incubators
and
Research
Schedule VII of Section 135 lists out the various activities that may be included by companies in their CSR Policy activities.
amount can be spent in the relevant financial year, without the need to attract any penalty for nonspending of the budgeted amount. It is therefore very important that corporates and NGOs work together and
Two high level committees were set up in 2015 and
synchronise their activities. Companies must also take
2018 comprising NGOs, Corporates, senior people from
into account the interests of their shareholders in
the civil society and the government. The second high
preparing their CSR Annual Action Plan.
level committee of 2018 came out with a very detailed report, based on the CSR implementation experience from 2014 onwards. It made recommendations to the
Macro Trends for Corporates 1.
CSR
Level
Committee
(HLC)
Recommendations are getting implemented.
MCA (Ministry of Corporate Affairs) to amend the CSR rules. The government prepared draft amendment rules
High
2.
‘Comply or Explain’ is now replaced by
in 2019-20 and they were uploaded. On 22nd January
‘Comply & Spend.’ Thus, CSR spending in now
2021, the final amendments were notified in the
mandatory.
gazette. What are the changes in the amended CSR,
3.
Higher
Board
introduced
which I call CSR 2.0, from CSR 1.0? Five game changing mega trends in CSR compliance are:
Level
calling
Accountability for
is
Transparency,
Monitoring, Approvals and Reporting. 4.
Spending is not just allocation of funds anymore. Now Spending = Allocation +
1. CSR spending is now mandatory.
transfer + utilization with CA Certificate.
2. Spending timeframes are now finite time
5.
Ongoing Projects are defined to give elbow
periods.
room to spend over a 1+3 year period.
3. NGOs are partners in implementation &
6.
Annual Action Plan (AAP) is made mandatory
compliance.
– to sync Grant Cycle to FY Cycle.
4. Government / Ministry of Corporate Affairs 47
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7.
Clarity is presented now on some unclear areas like Admin Overheads, Surplus, Set-off,
NGO Leaders is to be pro-active. 2. They must spend/utilize in timely manner
etc. 8.
Role
within FY/1+ 3 years for Ongoing Projects of
CFO
now
becomes
particularly
3. Registration u/s 12A, 80G of IT Act 1961 has
important. Key collaboration must now be between CFO, CSR Head, CA and CS. 9.
been made mandatory 4. Form 10BD has to be filed by 31st May 2022
Treatment / Reporting of Capital Assets is
for FY21-22 u/s 80G. Form 10BE must be
defined.
obtained by the donor from NGO/done to
10. Business / for-profit activities must be clearly
avail tax exemption.
kept away from CSR activities. However,
5. Registration on CSR-1 Form will help bring
corporates are permitted to connect their core
donor and donee within the same umbrella of
business area in their CSR activities. When
Ministry of Corporate Affairs. This may lead to
they do such CSR, their core business also
NGOs reporting on CSR Utilizations against
gets validated. This may lead to more
their allocated CSR Registration No. This could
business and more turnover. With more
then be tallied against CSR spends as reported
turnover, 2% of it as CSR budget will also go
by Companies through MCA21.
up. 11. Non-compliance leads to civil offence with monetary penalty on all concerned.
What is disallowed under CSR? 1. Normal course of business-related activities,
Macro Trends for Implementing Agencies ﴾NGOs﴿
except Covid related R&D for FY21 to FY23 with
1. Implementing Partners / NGOs are now
defined organisations and which has to be reported
partners in compliance too. The key role for
separately.
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2. Outside India activities are not allowed, except sports training. 3. Contribution
is to be spent for designing of projects, implementation and monitoring. A company may choose to hand over
to
Political
Parties
is
not
permitted.
the implementation and /or monitoring and evaluation to a NGO. Impact assessment is usually done by a third party. Ideally, the maximum money is spent in the
4. Employees covered under clause (k), section 2,
implementation phase.
Code on Wages, 2019 (29 of 2019) cannot benefit. 5. Sponsorship for marketing benefits on products & services is disallowed.
TN is following a pragmatic approach to meeting the SDGs.
6. Any activity to fulfil statutory obligation under any law in force cannot be CSR.
Dr R Sujatha, SDG Consultant, Department of Planning and Development, Govt of Tamilnadu
Ongoing Project ‘Ongoing project’ means a multi-year project
A
undertaken by a company in Fulfilment of its CSR Obligation and having timelines not exceeding 3 years, excluding the FY in which it was commenced. This is to be read with Section 135(6). The Board must: 1. Classify a project as ongoing based on
s India plays a key role with the second largest
population in the world, if India performs in SDGs, the world transforms. Similarly, if Tamilnadu performs, the whole of India gets benefitted. The five Ps of sustainable development are people, planet, partnership, peace and prosperity.
reasonable justification. 2. Monitor timelines and spends year on year. 3. Modify suitably for smooth implementation, within the timelines.
There are 17 SDGs. They are: No poverty; Zero hunger; Good health and wellbeing; Quality education; Gender equality; Clean water and sanitation; Affordable and Clean Energy; Decent work and economic
CSR Spending Distribution Chart The chart on Spending explains how the CSR fund has to be spent according to Companies (CSR) Amendment Rules 2021. The chart shows the budget heads; and activities that are permissible in those budget heads. It can be seen from the chart that for a CSR project, the admin overheads should not exceed
growth;
Industry
Innovation
and
infrastructure; Reduced inequalities; Sustainable cities and communities; Responsible consumption and production; Climate action; Life below water; Life on land; Peace, justice and strong institutions and Partnerships for the goals. The
Tamilnadu
government
is
following
a
5%. Impact assessment, for qualifying companies, can
pragmatic approach to meeting the SDGs. For example,
be up to 5% subject to a maximum of Rs 50 lakhs in a
with the initiative of ‘Inniyur Kappom’ (Let’s save
year.
precious lives), we are addressing SDG targets 3.3, 3.4
The remaining 90% (directly incurred expenditure) 49
AUG 2022
and 3.6. ‘Back to yellow cloth bags’ is another initiative
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(Target 11.6) for sustainable environment.
Some of our unique approach to SDGs includes:
The SDGs work through the joint efforts of Niti
• Let us leave no one behind and no village behind.
Aayog, the State Government, Civil Society and the NGOs. For SDGs to be realised, work needs to happen
• Whole of government approach.
at the panchayat level and not just at the state or
• All of society approach
national level. Children and young women and men are
• Out of the box solutions
critical agents of change. We need a grand alliance of
• Going glocal
people, governments, civil society and the private
• Beyond the business-as-usual (BAU) approach.
sector, all working together to secure the future we
want for our present and future generations.
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Dr. R Prabhakaran, author, brings to light the hidden gems on management and leadership in Thirukkural. This is part of a series of talk in Tamil organized by MMA.
T
he colossal pyramids of Egypt were built about
impressive mosques in many countries are all examples
5,000 years ago. The oldest operational dam in
of major construction projects completed by the group
the world, Lake Homs Dam, located in Syria,
efforts of thousands of people during the first and
was constructed during the 14th century BC. Parts of
second millennium of the Christian era. It is
the Great Wall of China were completed during the 7th
inconceivable that monumental structures like these
century BC. During the second half of the 5th century
could have been built without proper leadership and
BC, the Parthenon and other famous buildings of Greece
an organizational structure to support the leader’s
were built. The Kallanai Dam (also known as Grand
vision. Invariably, the leadership would have come from
Anaicut), situated on the Kaveri River in Tamil Nadu,
the kings.
India, was built by Karikalan Chozhan of the Chozha dynasty in the 2nd century AD and it is the fourth oldest dam in the world.
The kings might have entrusted the responsibility for the construction to one of their ministers. There could have been other supervisory personnel, and the
These are some examples of projects conceived by
actual work would have been done by laborers and, in
the kings and completed with the help of many people.
some cases, by slaves. The management guru Peter
Such large-scale construction projects were not peculiar
Drucker says, “Management is about human beings. Its
to the ancient days. Similar projects were carried out
task is to make people capable of joint performance.”
during the Middle Ages also. The massive castles,
Based on this simple definition, it appears that
beautiful churches, stunning synagogues of Europe, the
management practices have been there for many
architecturally elegant temples of India, and the
centuries.
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Thiruvalluvar, also known as Valluvar, was an
failure of small businesses. Valluvar realizes the
outstanding philosopher who lived about 2,000 years
importance of planning. He states, “Action should
ago in the southeastern state of India called Tamil
follow
Nadu. He is the author of the book, Thirukkural, also
deliberations. Venturing into action without due
known as the Kural. The Kural consists of 1330
deliberation is disgraceful. (couplet – 467)” He warns
couplets dealing with the three major aspects of life,
that anyone who ventures into a project without a
virtue, wealth, and love. In the section on wealth, he
detailed plan is bound to fail.
discusses
several
aspects
of
management
and
administration.
analytic
decision
resulting
from
deep
The Planning Process: Valluvar has several couplets in which he offers valuable guidelines as to how the
Modern management scholars differ in their
planning process should be carried out. He believes
classification of management functions. The most
that the leader or the king should consult with
widely accepted functions of management, as given by
knowledgeable people and decide the course of action.
Koontz and O’Donnel in their book, “Principles of
The king or the leader is ultimately responsible for the
Management: An Analysis of Managerial Functions,” are
outcome of his actions, and if he consults with experts,
as follows: Planning, Organizing, Staffing, Directing,
he will benefit from their knowledge and wisdom.
and Controlling. In the following sections, we will consider Valluvar’s ideas about these management functions.
In addition to emphasizing the importance of planning and discussing the planning process itself, Valluvar outlines the following five major factors that
Planning
should be considered in the planning process: 1)
Importance of Planning: Planning is an essential function of management. According to Koontz and O’Donnel, “Planning is deciding in advance - what to
resources at hand, 2) equipment that is needed, 3) appropriate time for the action, 4) nature of the project and, 5) appropriate place for the project.
do, when to do and how to do. It bridges the gap
Suppose a king had to launch a war with an enemy.
between where we are and where we want to be.”
In that case, he should certainly consider his
Planning deals with deciding on a future course of
manpower, the weapons, and other resources available
action for achieving pre-determined goals. Planning is
to him, the appropriate time to attack the enemy, the
critical to ensure that the resources are properly
actual mode of attack, and the proper place to attack
utilized. Throughout history, there are many examples
the enemy.
of business enterprises and military ventures ending in failures due to lack of proper planning. In the United States, more than 500,000 small businesses are started each
year.
According
to
the
Small
Business
Administration’s Office of Advocacy, only about 50% of these businesses survive their fifth anniversary, and only one-third celebrate their 10th anniversary. It is said that the lack of planning is the primary cause of 53
AUG 2022
Similarly, in the case of a business venture, the entrepreneur should consider his financial and human resources, the type of equipment needed, the opportune time for launching the venture, details of his product, and the proper location to build his plant and the distribution facilities for marketing the product.
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The same five elements are essential in planning any venture, whether a military mission, starting a business, or building a manufacturing plant. The relative importance of these five elements may vary. Nonetheless, they are all important considerations for developing a proper plan. The actual couplet discussing
project will fail if the irrelevant, unnecessary, and unimportant tasks are completed. The project will be ruined if you do things that ought not to be done or you do not do things that ought to be done. (Couplet – 466) The tasks may be dependent on each other. To
these five elements is as follows: Consider these five factors: resources, means, time, task, and the place of action, and then proceed with the execution. (Couplet – 675)
succeed in a project, during the organizing phase, all the tasks relevant to the project must be carefully analyzed and prioritized based on their dependency, importance, and urgency.
Organizing
These days, project planners use sophisticated
The next step after the planning phase is
software to analyze the task dependencies and the
organizing. Organizing is the process of bringing
resources required to complete the tasks and schedule
together physical, financial, and human resources and
the tasks in the right order based on their importance,
developing a productive relationship among them to
dependencies, and urgency. Valluvar expresses the
achieve the organizational goal. In the organizing phase
same idea in the following couplet:
of a project, various tasks are identified, grouped, and prioritized in the right order.
Things that may be done at leisure can be implemented slowly and deliberately. But things
Prioritization of Tasks: There will be several tasks in any project of considerable complexity. These tasks may vary in their relative importance. Valluvar believes that the project will be unsuccessful if the essential tasks are not accomplished. He also adds that the
requiring immediate attention should not be delayed at all. (Couplet – 672) It is interesting to note that Valluvar’s idea is very similar to what Stephen Covey, the American author, refers to as “Habit three – Put first things first” in his
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famous book, The 7 Habits of Highly Effective People.
Whether it is a nation or an organization, people with the ability to add to the wealth of the nation or to an
Staffing
organization are considered an asset. This is evident
According to Peter Drucker, “The fundamental task
from the fact that the CEOs of most large corporations
of management is to make people capable of joint
come from the ranks of marketing, finance, and
performance through common goals, common values,
business development backgrounds with expertise in
the right structure, training, and development they
growing the company’s financial position.
need to perform and respond to changes.” In an organization, it is the people who carry out the various jobs needed for its functioning. They are the most important resource of the organization. They supply
Employ the one who can expand the sources of revenue, increase wealth, analyze problems, and resolve them. (Couplet – 512)
the talent, skills, knowledge, and experience to achieve
In addition to suggesting who should be hired,
the organizational goals and objectives. Hence, the
Valluvar also mentions the type of people who should
staffing function of management is an important
not be hired. He does not favor hiring people with any
function
developing,
friends and relatives because such people will not be
employing, and retaining people so that the right
concerned if their personal reputation is sullied (Kural
people are available for the right positions and at the
– 506). Also, people should be hired only based on their
right time in the organization. Valluvar addresses the
merit and expertise and not on other considerations
recruitment aspect of the staffing function in detail.
such as personal likes and favoritism (Couplet – 515).
concerned
with
acquiring,
Selecting someone for a position without testing him
It is interesting to note that Valluvar has thought
will result in endless troubles for years to come. (Couplet
extensively about these human resource issues. His
– 508)
ideas about the hiring process are still valid. When a
The choice of the right executive should be based on how he reacts to the four-fold tests concerning virtue, wealth, love, and fear of death.
(Couplet – 501)
In addition to the above-mentioned testing criteria, Valluvar adds a few more to the list. He says that only those with good family backgrounds, free from obvious faults and concerned about their status in society,
corporation hires an executive, it is customary to check his academic and professional background and past performance. Many corporations conduct personality tests like the Briggs-Myers test and other psychological evaluations to determine a candidate's suitability for high-level positions.
Directing
should be hired (Couplet – 502). Further, he insists on
Directing is a process in which managers delegate,
hiring only those who will be loyal to the organization,
instruct, guide, motivate and supervise the workers'
who are knowledgeable, capable of clear thinking, and
performance to achieve the organizational goals.
not very greedy (Couplet – 513). These are very practical guidelines.
Some people may meet all the criteria
mentioned so far. But some of them may not be able to contribute to an organization's financial growth. 55
AUG 2022
Valluvar on delegation: Valluvar believes that once a person has been selected after being tested, he should be assigned appropriate duties and made to own all the
BUSINESS MANDATE
fountainhead of excellence
responsibilities for that job (Couplet – 509). More
evaluate
importantly, he should also have the necessary
commensurate with their performance (Couplet – 528).
authority to do the job. So, the delegation of authority and responsibility should go together (Couplet – 518). Once the individual is empowered to act, he should be left alone. He should not be micromanaged (Couplet – 517). Micromanaging an employee destroys his motivation and self-confidence. Many managers tend to micromanage and destroy their employees’ morale and productivity.
their
performance
and
reward
them
Controlling Controlling is one of the managerial functions like planning, organizing, staffing, and directing. It consists of verifying whether everything occurs according to the plans adopted, instructions issued, and established principles. Controlling ensures that there is effective and efficient utilization of organizational resources to achieve
the
planned
goals.
Controlling
implies
It is said that Steve Jobs, the founder of Apple, was
measuring the deviation of actual performance from
an example of a micromanager extraordinaire who was
the standard performance, discovering the causes of
reformed into a successful executive. His first attempt
such
at Apple was not very successful. When he was let go
According to modern concepts, control is a foreseeing
from Apple, he started the company NeXT Computer.
action, whereas the earlier concept of control was used
At NeXT, Steve Jobs micromanaged just about
only
everything. The failure of NeXT is attributed to Steve
management
Job’s management style. When he started Pixar, he did
information needed for the leader/manager to compare
not make the mistake of micromanaging. He gave
the progress against the plan.
complete authority and responsibility to his managers. Pixar was very successful. He continued the same style of management when he returned to Apple and turned it into one of the world's most valuable companies. Valluvar is in favor of delegation and avoiding micromanaging.
deviations,
when
and
errors
taking
were
corrective
actions.
detected.
These
days,
systems
provide
the
information
Valluvar’s primary focus is the king and how he should control his administration. During his days, the method
of
information
gathering
was
through
intelligence services (spies). His approach is still valid and being practiced by the governments. Countries routinely employ spies to gather information about
Valluvar on Supervision and Performance Evaluation: Valluvar is a true pragmatist. He says that despite all the tests, even a man of good family background and education may prove to be incompetent upon close examination (Couplet – 503). Sometimes, a candidate may do well in all the tests. But, in actual work, his performance could be less than satisfactory (Couplet – 514). Everyone has their strengths and weaknesses, and the employer has to consider both and take the one that outweighs the other (Couplet 504). Therefore, it is necessary to routinely supervise the employees,
what is happening in their countries and their enemies' activities. Valluvar
believes
that
a
king
must
know
immediately everything that always happens to everybody (Couplet – 582). However, present-day managers do not employ spies to gather information about the progress of the projects. They use information systems, monitor their staff, and use their intelligence to gather information needed to control their projects.
BUSINESS MANDATE
fountainhead of excellence
56 AUG 2022