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NOTES FOR MBA – 1ST SEMESTER
M. D UNIVERSITY, ROHTAK
SUBJECT: - ETHICS & VALUES
What is Ethics?
Ethics is a body pf principles or standards of human conduct that govern the behavior of individuals and
group_, Ethics arise not simply from man's creation but from human nature itself making it a natural body of
laws from which man's laws follow.
Ethics is a branch of philosophy and is considered a normative science because it is concerned with the norms
of human conduct, as distinguished from formal sciences such as mathematics and logic, physical sciences
such as chemistry and physics_. and empirical sciences such as economics and psychology. As a science
ethics must follow the same rigors of logical reasoning as other sciences.
The principles of ethical reasoning are useful tools for sorting out the good and bad components within
complex human interactions. For this reason the study of ethics has been at the heart of intellectual thought
since the early Greek philosophers, and its ongoing contribution to the advancement of knowledge and
science makes ethics a relevant, ifnot vital, aspect of management theory. Ethical principles continue, even
today, to have a profound influence on many modem management fields including quality management,
human resource management culture management change management. risk management. mergers.
marketing. and corporate responsibility. Socrates argued that the detetmination of good or bad behavior
depended entirely on the integrity of the rational process. Plato argued that to know good was to do good, that
doing good was more useful and rational than aoing bad, and that one who behaved immorally did so largely
out of ignorance. Arist_t1eargued that ethic& was a purely logical outcome of human nature and it was useful
because it was logical. Kant argued that system-wide consistency was a logical requirement of ethics, stating
that ethics begins with the rejection of non-universalizable principles, and that any adopted ethical principle
must be a desirable universal law to be applied by everybody. Pareto clarified the win-win relationship into
philosophical terms by defining Pareto Efficiency as the transactional state where at least one party is better
off, most 'are as well off, and none are worse off. These are just a small sampling of powerful ethical
principles that, when applied, will improve performance in any organization.
Ethics is much more thanjust a collection of values. Values are almost always oversimplifications, which
rarely can be applied uniformly. Values tend to be underdefined, situational by nature, and subject to flawed
human reasoning such that by themselves they cannot assure true ethical conduct. Consider the sought after
value of employee loyalty. Should employees be loyal to co-workers, supervisors, customers, or investors?
Since it may be impossible to be absolutely loyal to all four simultaneously, in what order should these
loyalties occur? Employers that demand employee loyalty rarely can answer this question completely.
Regarding the inadequacy of values, consider this. , Murderers, criminals, and liars all have values, so does
this make them ethical? Also, killing can be either unethical or ethical (such as in self defense) depending on
the situation (religious arguments aside for the moment). For these reasons and more, values by themselves
are generally insufficient measures of ethics.
Real ethics calls for a more rigorous treatment of the subject than most business ethics approaches take. Real
ethics is a process of rational thinking aimed at establishing what values to hold and when to hold them. Real
ethics requires the continuous realignment of values and reasoning patterns in accordance with ethical
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principles. In real ethics, we must be ready to adjust our values, thinking, and behavior to be ethical and to
remain ,1.'11cai over time. Hence. ethics demands a willingness to change. In organizational ethics we find a
metaphysical paradox. Change management requires ethics, and ethics requires change management. Since
both are true at the same time, with each preceding the other, we can only conclude one thing: that indeed the
quickest way to assure poor ethics may be to require Fixed adherence to values.
Real ethics is about ordering the complexities of human behavior in the most useful manner for all involved.
Subsequently, in 'every conceivable human endeavor there exists an ethical component that either succeeds in
achieving usefulness and good for all involved, or fails to do so in varying degrees. This gap between reality
and the ideal state can be expressed as a quality problem and solved using both ancient and modem
management methods.
Ethics Quality occurs when two conditions are met: when a repeatable reasoning process is followed; and
when the outputs of this reasoning result in the intents, means, and ends all being" good." When the
conditions for ethics quality are met the organization becomes capable of preventing ethical failure, not just
catching and punishing it. Without a means of prevention organizations have no means for controlling its
ethics quality. The key to good organizational. Ethics is awareness and real time detection (before the fact,
not after). Both awareness and detection can be greatly enhanced by basic awareness training, training aids
and group diagnostic surveys. It is a regrettable fact that most ethical failures in organizations are detected
well after the fact making any realistic prevention unlikely.
Poor ethics can be extremely damaging to organizational performance (ref. Enron). When ethical behavior is
poor it taxes operational performance in many visible, and sometimes invisible ways. The tax can be on yield
or productivity, which is easily measured. The tax can impose itself on group dynamics, suppressing openness
and communication, which is hard to measure but easily felt. Perhaps the most dangerous tax is the one
placed on risk, which is neither measurable nor easily sensed. Whether the damage is visible or invisible, poor
ethics blinds the organization to the realities of their declining environment leaving any organization
vulnerable to setbacks that could be avoided.
Good ethics on the other hand have a surprisingly positive effect on organizational activities and results.
Productivity improves. Group dynamics and communication improve, and risk is reduced. One reason for this
is ethics becomes an additional form of logical reasoning, increasing the flow of information, and adding an
additional set of eyes and antennae to give the organization needed feedback regarding how it is doing.
Increased reasoning capabilities, coupled with additional information, is a strategic advantage in any business
or organization.
Real organizational ethics is a rational process for exploring all possible behavior alternatives and selecting
the best possible choices for all involved. Real ethics, at the organizational level, goes beyond personal ethics
and values. Real ethics is a collective undertaking, or a team sport, with team like demands and results.
Ethical issues in organizations change complicated very quickly, so much that even the best trained ethicists
often will not know what decisions to make or what ought to be done. Such times are precisely when the
disciplined reasoning of ethics quality pays off the most. Ethical decisions and their corresponding behaviors
in organizational settings are never perfect. However, the quality of the processes applied, as well as the
usefulness of their outcomes. is precise and measurable with scientific certainty. It is through the process of
ethical reasoning that bad things are preventable and great things become more possible. Organizations need
ethics quality not only to prevent unhealthy behavior but to inspire superior reasoning and performance. It is
only through human nature, and ethics, that we can inspire greater levels of innovation, teamwork, and
process breakthroughs that result in sustainable competitive advantages. Oliver Wendell Holms wrote, "Once
a person's mind is expanded by a new idea the mind can never return to its original form." The same is true
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with management and ethics. When managers understand how ethics makes them better, their role as a
manager changes forever. Once ethics is learned we all acquire the ability to see what we often could not see
before. We see that using ethics - the reasoning science - to improve individual and group performance is
what real ethics -and real management- are all about.
What is Operating Culture?
Operating Culture has been cited by numerous quality and change management experts as the leading
constraint in organizational performance. Operating Culture has been broadly defined as "how things are
'done", "the prevailing climate", and "the organization's values and beliefs." Such definitions are part of the
problem as they are too vague to support any serious management of operating culture.
Management is not only part of the problem, but the ultimate cause of poor operating culture. Often the very
actions managers undertake to achieve managerial control and effectiveness are the same actions that harm
the operating culture and cause the eventual loss of managerial control and effectiveness. Managing any
operating culture requires an understanding of change management theory.
The first rule of managing operating culture is "not to make it worse. " This requires a change in the very role
of management itself - a change away from organizations working to meet management's requirements - and
towards a paradigm where management works to meet the organization's requirements.
The second rule is diagnosis: to know what the organization's requirements are before changing anything.
The third rule is to verify that the change enacted actually resulted in the desired change or outcome.
The fourth rule is to correct bad decisions quickly before they cause a permanent and unwanted shift in the
operating culture behavior pattern.
Quality and social science experts have offered definitions with significantly more substance which managers
should focus on. Consider the following:
. Patterns of behavior. Crosby
. A certain system of values, beliefs, and behaviors, individual and team, created within the organization, that
is necessary for organizational success. Juran
. The gap between knowing and doing. Pfeffer, Sutton
Operating cultures are social forces that flow with respect to the operating environment
and their internal needs to support organizational success. This "flow" eventually finds its
balance (equilibrium) which is almost always sub optimum to the organizations pure needs. Operating
cultures are always a balancing act between the operating environment, internal needs, and the organization's
needs. Any attempt to force an organization to better meet organizational needs is insufficient as the social
forces will always into a new State or equilibrium. The only way to truly improve on the meeting of
organizational requirements is to alter the entire system. to address the environment and meet internal needs
simultaneously with respect to the organization's requirements. To do this properly one first must have an
accurate appraisal of what the environmental factors and internal needs actually are.
When internal needs appear to siphon energy away from the organization's requirements this is symptomatic
of constraints existing deep within the operating environment. The leading root causes of these constraints
often are tiny recurring ethics failures. Therefore shortest path to removing the constraints is to identify,
target, and remove the patterns of micro ethics failures throughout the operating environment.
The key is to identify the ethics domponent within the complex operating culture social scheme. But how
does one identify these things in an unbiased manner? If management is the ultimate cause, and if the
organization itself is in a conspiracy to meet their unmet needs, and if everybody else is controlling everybody
else's environment, who can objectively investigate the matter? Ethics Quality, Inc. is an objective source to
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turn to. Our proprietary diagnostics are capable of pinpointing your needs, and our expertise in training and
corrective action will help your organization "unravel" and facilitate productive change in your operating
culture.
Culture Management Essentials
Technology organizations rarely fail because of their technology. Marketing organizations rarely fail because
of their marketing. Manufacturing organizations rarely fail because of their manufacturing. Failure typically
occurs because people could not think, plan, adapt and execute effectively, as a team, to meet business
objectives. This kind of capability is not as talent derived as many think. Instead much evidence suggests this
capability is culturally derived and can be advanced or regressed through cultural practices.
All the technical expertise in the world is of little consequence if your organization's culture lacks the ability
to support and achieve business objectives. This paper presents theory and methods which should be useful in
helping technology organizations improve their culture's supportive capability.
Culture Defined:
Culture's textbook defmitions range from "the rules of conduct," to "how things are done," to "the prevailing
climate," to "corporate values." When we look for more concrete definitions in business literature it can be
difficult to find definitions that are any better than these. The problem with these definitions, and indeed with
most available business text defmitions on this subject, is they are at best risky over simplifications, they are
often categorically incorrect, and most importantly they are irrelevant to the task of managing operating
culture.
Quality gurus Crosby and Juran offer much more substantial defmitions. Crosby defmes culture as "patterns
of behaviors," which suggests some sort of naturally occurring patterns with the possibility of structure and
repeatability. Juran defines culture as "the creation of values, beliefs, and behaviors 'necessary for success,"
which suggests culture is an entity man creates to meet the needs of the group at the time. So is culture a
natural pattern of behaviors (Crosby) or a man made entity born out of reasoning and necessity (Juran)?
According to a large body of knowledge and my own research. both themes are true at the same time.
Metrics for Culture:
Beginning with Crosby's and Juran's definitions for culture, and borrowing a metric discovery tool from the
software engineering profession called "goal-question-metric," a body of effective metrics for culture
management can be constructed.
Goal: The goal of culture is to cultivate values, beliefs and patterns of behavior that can best support
organizational success.
Ouestion: How should managers cultivate values, beliefs and patterns of behavior behavior to better support
organizational success?
There are essentially two questions here: one is how to cultivate values and beliefs, and the other is how to
cultivate patterns of behavior. The former depends strictly on ethics, which is the philosophy and science for
determining what values to hold and when to hold them. The latter depends on the social science paradigm of
diagnostics, control and
change management within complex systems. .
Metrics: Therefore the best metrics for managing culture will be those metrics found in ethics and social
sciences. In ethics we have principles, applied forms, and tests. In social science we have statistics, factors,
and performance measures to identify constraints, symptoms and causes. Both ethics and social science seek
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to promote advancement and control regression through diagnostics and prevention.
A Strong Culture Model:
The Orgculture model was developed using combinations of ethics and social science factors widely reported
by texts and leading gurus to be important to organizational health. We surveyed hundreds of employed
professionals on 40 factors and formed a database.
Using statistical tools we boiled down 40 factors to 29 based strictly on statistical significance. The remaining
29 were grouped into five dominant subgroups in order of their statistical significance (these groups are:
ethics, situational leadership, process capability, risk-reward, and satisfaction. These 29 factors within their 5
subgroups consistently account for over 90% of the variation in the regression r-squared values, regardless of
the size or type of groups surveyed. ':
Of special interest to me was the weighting of the factors in model significance. Ethics generally is the most
dominant factor and often accounts for half of the model variation alone. Second is situational leadership
alignment, which generally is a distant 21M. Combined, ethics and situational leadership generally account
for over 70% ofthe variation, with the other remaining 3 factors accounting for the remaining 30%. I fmd
these statistics particularly meaningful because they are consistent with the "goalquestion-metric" line of
thinking where ethics and social science were identified as dominant issues.
Since this model was derived from leading texts and studies, some established principles need to be retained.
Of the 5 main factors can be either a cause or an affect of any of the other factors.
Shall of the factors are always oresent even though a few appear dominant. Hence, any
Dlanned change or imorovement in one factor should be made with respect to all the
factors.
3. Each group diagnostic should be viewed independently as factor combinations are unique for each group.
Ethics Primer:
Ethics is a branch of philosophy that is concerned with the principles and standards of human conduct. Ethics
arise not from man's law but from human nature itself making it a bodv of natural laws from which man's
laws follow.
Ethics is a normative science that is concerned with the norms of human conduct. As a science ethics must
follow the same rigors of logic as other sciences. When scientific ethical reasoning is properly applied ethics
becomes a useful tool for sorting out the good and bad components of complex human interactions. At this
level ethics is about determining what values to hold and when to hold them. Because ethics is a science it
creates new knowledge and applies this knowledge to support decisions.
Ethics is a rational process for exploring all the possible behavior alternatives and selecting the best possible
choice for all involved. This rational process builds from established foundations and principles to construct
repeatable forms of ethical reasoning. Ethical flaws can be found at the foundation level, the principle level,
or at the application level. When ethics are applied to advance organizations this branch of ethics is
considered "organizational ethics."
Foundations: Ethics is a critical link between technical applications and four foundations of organizational
advancement: human nature, logic, utility, and transactional success. All technical and business decisions can
be analyzed and tested against these foundations
using ethics tests. .
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Principles: Ethical reasoning builds from a body of foundations and principles into logical applications. Here
are a small collection of principles that apply to organizational ethics.
1. Natural Law: Laws that arise from human nature itself, and from which man's law is derived. It is generally
believed that the closer man's law approaches natural law the more efficient the social system will be.
2. Values: Ethics is a rational process for determining what values to hold and when to hold them. Therefore,
fixed adherence to values ignores ethics and promotes unethical behavior.
3. Change: Ethics demands a willingness to change, and change demands the application of ethics. In order
for values to remain principled they must be subject to change.
4. Ethical process quality: The principle that ethics is at its best when intents, means, and ends, individually
and collectively pursue a greater good.
5. Greater good: The desired state where each decision seeks to improve on the previous decision in its
pursuit of alignment with Natural Law (the foundations of human nature, logic, utility: and successful
transactions). Ethics seeks to order the complexities of human. conduct in the most useful manner for all
involved.
6. Linkage of Logic and Utility: Doing good is more rational and useful than doing bad, to know good is to do
good, and those who do bad do so largely out of ignorance (plato). Ethics is a logical outcome of human
nature and it is useful because it is logical (Aristotle).
7. Forms: Principles and applications can be constructed into forms that can be applied consistently. Lower
forms include Egoism (selfishness), Darwinism (might makes right), and Machiavellian (double standards).
Higher forms include the law, Proportionality (Garrett), Pleasure Calculus (Bentham), Social Objectivity
(Rawls), System Quality (Deming), and Transactional Efficiency (Pareto). Prima Facie Duties by Ross
include keeping promises, gratitude, justice, helping others, not harming others, and self improvement.
Socrates and his knowledge duty says one can never know anything absolutely and we must do ones best to
know as much as possible before making decisions that affect others. Kant's categorical imperative says one
should do only what they would encourage others to do (lead by example).
8. Situational vs Constant Application: Some forms are universal regardless of time and place, while other
forms are completely situational and vary. For example, lower forms generally are bad, higher forms
generally are good. and duty forms generally are situational.
9. Forms Algorithm: Forms are best applied when ordered in a sequence that minimizes process flaws and
maximizes success. For organizational ethics a superior algorithm is to reduce lower forms first, as these
corrupt the other duty and higher forms. Applications: When forms are organized into an ordered sequence, or
a process, it becomes a branch of applied ethics. One effective and repeatable application for organizational
ethics is the following three step process. First, detect and prevent all lower forms. Second, consider the most
applicable duty, resolve any dilemma, and make a selection as this establishes the general decision direction.
Finally, refine the duty decision using highly form in proportions with respect to the needs of the
organization. The order of this three step process is supported by both ethical principles and social science
evidence. Ironically, many attempts in organizational ethics begin with the opposite order, with higher forms
being focused upon first. This is simply a Non Secquitur fallacy of reasoning. The Orgculture Model's
approach of addressing lower forms first has not only proven itself to be an effective and repeatable
application in many field tests, but it serves as robust evidence that both ethics and social science are at their
best when considered together.
Ethics Math: I developed a math model for this application. (See appendix 2). For every possible decision
there are nearly 50 billion ways a decision could be made, of which only about 360,000 are theoretically
good. By eliminating the lower forms first over 99.986% of all the possible bad decisions are eliminated,
leaving only 7.2 million possible bad decisions. Conclusion: The removal of Lower Forms first effectively
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takes any decision to the six-sigma ethics quality level.
One of the greatest contributions of the Orgculture Model is the discovery of the importance of ethics in
operating culture. Because of this, we know that one of the surest ways to improve cultural capability is to
provide training and coaching in organizational ethics.
Situational Leadership:
According to Dr. Paul Hersey in his book The Situational Leader there are four distinct leader styles and four
follower styles. From this 4 x 4 matrix there exist 16 possible alignments, of which only 4 are good.
Situational leadership seeks to assure that proper alignments occur for each task with each follower.
In accordance with the table in Appendix 3, S4leader behavior needs to be matched with R4 follower, the S3
with the R3, and so on. When leaders do not match their styles to the appropriate readiness level of the
follower gaps occur that have been proven to hurt performance. Our studies have shown that high gaps in
situational leadership correlate highly with deficiencies in each of the other 5 culture factors.
Situational Leadership is the ultimate social science metric. It follows a sound algorithm, is repeatable, and
provides immediate feedback regarding the level of advancement or regression in readiness by an individual
for any given task. Situational Leadership is also an excellent tool for personal and leadership development.
Gaps between leader style and readiness level can cause instability and failure in the other 4 main culture
factors, ethics, process capability, risk-reward, and satisfaction.
Organizations can promote improvements in their cultures by providing training and coaching in situational
leadership.
Social Science:
Social sciences study the performance of people systems and how they can be predicted, controlled, or
improved. Examples of social sciences are economics, psychology, sociology, political science, quality
control, marketing, and all fields of management. Social sciences use- statistics to isolate, control, and
improve key performance factors. One aspect of social science that drives the need for diagnostics .and
control’s the phenomena of advancement and regression. In all social sciences there are things that advance
and regress performance. Unless both conditions are known in real time there is little that can be done to
proactively improve performance. Fortunately much is known about the causes of social system advancement
and regression.
Advancement: Causes of social system advancement are capability or readiness, willingness or "buy-in," and
confidence or security. Organizations that maintain strong process capabilities, have high levels of consensus,
and have tasks performed by individuals who are confident and secure, have a strategic advantage over other
organizations that do not have these internal strengths.
Regression: Causes of social system regression are the inverses of those causing advancement. Reductions in
capability or readiness, reductions in willingness, and reductions in confidence or security, all can cause
performance regression. Regression can be triggered by pressure, stress, or by a regression of another factor.
Regression, if not reversed, can develop into severe forms of culture failure such as Groupthink or Abilene,
where catastrophic failures to individuals and to the organization become more probable. Causes can be
diagnosed and expressed in terms of the five culture factors: ethics, situational leadership, process capability,
risk-reward, and satisfaction.
Two common symptoms of regression are resistance and frustration. It is an unfortunate fact that many
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managers consider these causes and expend a significant amount of resources trying to fix - or punish-
resistance and frustration.
Resistance is nothing more than a natural response to problems encountered with an idea or a decision.
Resistance is information first, and behavior second. Resistance reveals one of two things: either there is an
ethical flaw causing natural resistance, or there is a transactional loser who is attempting to minimize their
losses. In either case, both conditions are preventable and correctable in most instances.
When resistance is viewed as bad behavior first the potential value of the information it represents can easily
be lost. When managing culture, resistance needs to be viewed as information, and the information must be
put to fruitful use. Treating resistance as a threat that needs to be overcome with force is a distraction at best,
as the force can be viewed as abusive hence promoting more frustration and regression, which ironically can
lead to even more resistance. Force can suppress resistance but it can never cure it. The best way to deal with
resistance is to prevent it through ethical reasoning. Situational leadership is ideal for generating feedback,
like a control metric, so resistance can be detected and the decisions refmed before they can do damage to the
culture.
There are four common symptoms of frustration:
1. Aggression: When someone acts aggressively towards a source of frustration, or towards a non-source
(deflection).
2. Regression: When a process, individual or group deviates from expected behavioral or when performance
declines.
3. Fixation: When individuals form into cliques or social groups to escape or to seek protection from the
unpleasant aspects of a social system.
4. Resignation: When individuals give up trying to win within a difficult social system. Resignation can range
from an emotional distancing to physical remove from the system. The key to all social system management,
ethics management, and culture management in general, is to look past the symptoms of failure and to focus
on the root causes. By focusing on the 5 culture factors of ethics, situational leadership, process capability,
riskreward, and satisfaction managers are automatically guided towards causes and away from symptoms.
The key to social science management is detection and prevention through timely diagnostics. The more an
organization invests in timely diagnostics, the more capable the organization will be at managing regression
and advancement. Formal metrics from SPC, six-sigma, or enterprise information systems can be very
effective at detecting and preventing technical problems, however their ability to detect and prevent cultural'
problems are more limited. Ethics and situational leadership, though less formal, are especially effective at
detecting and preventing culture failure.
Transactions:
Cultures are driven by transactions. All internal and external transactions either meet the basic needs of the
participants, or they fail to do so in varying degrees. The degree of cwtural nonconformance can be measured
through the 5 culture factors.
The Italian economist Alfredo Pareto defined the perfect economic state for any
transaction (today referred to as Pareto Efficiency) as" the state where at least one party - 131eariv better off,
most parties are as well off, while no party is clearly worse off." This terinition of the "win-win" transaction is
the cornerstone of all culture management. It is the intent, means, and ends of organizations transactions that
ultimately determine the cultural capability within the organization.
How transactions are conducted can be just as influential to a culture as the transaction itself. For example,
transactions that are constructively proposed with a "positive sandwich" technique ( say something good,
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offer the proposed transaction, then close on another constructive thought) has been proven to produce better
results than other variants. If you insult the prospect, propose the transaction, then threaten them if they do not
agree, damage to both the transaction and to the transactional progress ( culture) can be predicted. Our studies
throughout many organizations reveal that many cultural disorders are caused precisely by such
misapplications of transactional power.
All changes in cultural health, whether they are advancements or regressions, are precipitated by transactions.
Therefore, the shortest path to a stronger (or weaker) culture is through the kinds of transactions that are
occurring. Make them win-win, and pursue them constructively, and the culture will benefit.
Summary: The Role of the Manager in Culture Management
Culture management begins and ends with the basic idea of how each manager perceives their role. If this role
is perceived to be void of culture management responsibilities the culture will be weak. If culture
management responsibilities are ingrained into all management positions, and if upper managers lead
accordingly by example, the supportive capability of the culture will be strong. The following summarizes
some of these necessary managerial responsibilities:
1. Accept culture management responsibilities: The managerial role is not just to meet the boss's
requirements, but to help subordinates and coworkers cope and succeed. The manager is not only responsible
for getting work done, but for developing and maintaining the work environment by maintaining the 5 factors,
especially ethics and situational leadership.
2. Manage the ethical components: Detect and eliminate lower forms. Use the ethical reasoning tools to
determine what values to hold and when to hold them, while avoiding strict adherence to any set of fixed
values. Support duty selection through improved information flow and open dialog. Refine decisions using
higher forms.
3. Manage the social science components: Promote advancement and prevent and control regression through
the simultaneous focus on the 5 culture factors of ethics, situational leadership, process capability, risk-
reward, and satisfaction. Use statistics to diagnose, control, prevent, and advance where practical. Use
situational leadership to detect and prevent culture failures.
4. Focus on causes. not symptoms: Avoid over reactions to resistance and frustration. Shift your focus to the 5
factors which are most likely where your true causes are.
5. Improve transactions and transactional processes: Seek Pareto Efficient content and outcomes, as well as
constructive approaches using positive "sandwiches."
Business Ethics: Are they Important?
Leading business schools and management experts have stressed the importance of business ethics in the
management. They have stressed the risks associated with blatant ethical failures such as large legal
judgments, prison terms, anti-trust litigation, fines, lost sales, good will, etc. They have also stressed the
moral need for organizations to do what is right for moral purposes alone. While these reasons are all
legitimate they miss the biggest reason why business ethics are important: organizational performance.
Business ethics as a field of management has been stuck in "neutral" or "external failure mode" for decades.
In this mode business ethics seeks to address only the blatant issues at hand, especially those which are
associated with high external failure costs. The reality is this is only the tip of the failure cost iceberg. The
largest failure cost component in business ethics is actually the internal failure costs, or the failures that go on
routinely within the organization every day, which go largely unnoticed and unmanaged.
The leading causes of many organizational problems -customer dissatisfaction, employee turnover, ineffective
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quality improvement and training efforts, falled mergers and technology projects: weak innovation, and failed
product development _ all have been linked as much to failures in the operating culture as all other factors
combined. Operating culture can be attributable to over half of all documented Quality Costs (Costs of Poor
Quality). If Quality Costs for world class organizations run between 10 and 15% of total sales revenue, the
associated operating culture/ethics component in the best world class companies is costing companies billions
annually. If the average organization is running Quality Costs of20-25%, the associated operating
culture/ethics component is so significant it may pose an extraordinary opportunity for improvement or an
imperative for mere survival.
Most quality improvement projects deal with visible processes such as discrete operations. It is entirely
possible to address the processes but still have major unresolved issues, especially people issues. If people do
not want to cooperate and work together, or if tensions are high, process improvement becomes increasingly
difficult. These people issues often are the result of recurring "mini ethics failures" that need to be prevented.
There is a human tendency in management to seek single (special) causes for failure when multiple,
systematic (common) causes are at work. In such instances blaming failure on "poor leadership," "poor
employee execution," or "market externalities," may be convenient politically and identify scapegoats but in
reality they rarely fix, change, or improve anything. A major (common) root cause of sub optimum
performance in organizations can consistently be traced to patterns of business ethics failures within the
operating cultures. The ability of organi7.ations to manage ethics at this micro level is a process capability
that yields significant economic returns. This is what Ethics Quality is all about.
Ethics and the Emergenee of World Trade
The emergence of world trade is revealing much to us about how to succeed in global economy. But to
understand the global marketing we must learn to think like people first and business executives second. This
of course seems to be easier said than done. Everywhere we look our senses are bombarded with corporate
reasoning $at resembles "intellectual incest" more than logic. First we are bombarded by boardroom news
releases and management consultant incantations that progress requires "strategic positioning" such as the
formation of trading blocks, the acquisitions and mergers of leading brands, the consolidation of distribution
systems, or the establishment of restrictive supplier and customer alliances, just to name a few. Since these
strategies are so popular they must work, right? Do not be so sure of this.
A closer look at world trade reveals that these developments are unsustainable surface tactics at best, and
distractions at worst. The real strategic developments, which will carry the most sustainable advantages, are
found in the underlying background factors of technology and human behavior. As the explosion in
information and communication technology brings people closer together in world terms, the power behind
global business shifts from structural systems to people systems. As people systems emerge and interact with
other people systems a powerful invisible hand extends its reach to influence whom the new winners and
losers will be. This invisible hand is our system of ethics.
Our system of ethics forces people systems to develop quality in their behavior. Acting as a filter to remove
unwanted behavior while retaining and developing good behavior, this filtering process is achieved through
the pursuit of four attributes all human societies strives for:
1. Logical processes and internal consistency.
2. Coherence with other strong theoretical positions.
3. Utility for individuals, groups, and humanity.
4. Transactional success in a repeatable social system.
When applying the system of ethics we quickly find ourselves doing things differently, and these differences
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will open doors for world trade.
Our system of ethics forces us to conduct ourselves, as we would have others behave. If we choose to
compete fairly, others will be encouraged to do the same and trade will be a controllable enterprise where
marketable products and services thrive in predictable ways. Conversely, if we choose to reserve certain
advantages only for ourselves at the expense of other trading partners, our outcomes at best will be
uncontrollable as the market will react to our trickery with trickery of its own resulting in lost opportunities
for the system as a whole.
Our system of ethics forces us to think in terms of quality, in a global economy no sale is just a sale. In a
global economy every sale is linked severely to the endless chain of world suppliers who also participate in
that sale. In this economic environment any degree of non-quality passed along to a single customer creates a
ripple effect of failure costs throughout the world system. Even though the initial poor quality did not harm
the original seller financially in that instance, a much greater harm was passed along to society and the world.
Poor quality by others harms us all every hour of every day.
Knowing this, our system of ethics requires us to do quality all the time, not just when it pays us immediately
to do so.
Our system of ethics forces global traders to respect the ways of others. Before any significant trade can be
consummated there must exist a certain mutual interest, respect, and trust which underlies all trade. There
must exist the possibility of transactions, which meet the needs of both parties, not just one party at the
expense of the other. There must exist a mutual respect for the ways of each so that neither will intentionally
nor unintentionally offend the other. For trade to occur there must be trust between trading partners. Each
party must know the other is committed to the relationship, that stable operating environments of law, civil
order, and commerce will be maintained, and that problems which arise will be resolved by a due process
which is fair to all. Mutual interest, respect, and trust are also central ingredients of people systems, and
where there are people systems the power behind the people systems invariably will be their ethics system.
Therefore our success as world traders in the long run will not depend on the structures we organize around as
they are shallow, tactical and unsustainable at best. Our success will follow from strategies that focus on the
quality of our people systems and the faithful use of technology and ethics which support them.
Ethics Failures: What do they really cost businesses?
There are two kinds of ethics failures: moral and economic. Moral failures mayor may not result in an
economic cost. For moral purposes alone many ethicists argue that strong ethics standards are needed for a
healthy society.
Economic ethics failures can easily justify an ethics management program. Economic ethics.failmes <4Il be
grouped into two categories: external and internal. Most ethics policies .areedirected toward preventing
external failures such as legal liabilities, safety risks, theft, or any negative response from parties outside the
organization. External failures are significant in their own right and cost companies billions every year.
The greatest economic benefits however of effective ethics management can be found in the internal failure
category. These "micro" ethics failures rarely are visible on the ethics policy radar screens and typically do
not result in external failure costs. They are the little noticed behavior patterns in the organization's social
system, or operating culture, that result in constraints to operating performance. These little failures are
responsible for over half of all Quality Costs, or 5-15% of all operating costs. Using these conservative
estimates, the internal cost of poor ethics can be the single largest quality cost item in many firms.
So what do ethics failures cost companies? The answer is "much more than they realize, and certainly more
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than they can afford.
What is Ethics Management?
Ethics Management, when done correctly, is a comprehensive program that cominuous,' improves underlying
ethics processes (thinking and behavior patterns), not just some high visibility issues and ethics policies.
Many organizations spend enormous sums on training and quality improvement initiatives from TQM and
ISO-9OO0 to Six Sigma, along with countless other programs as well, without ever addressing the leading
constraints to quality or performance improvement, which are ethics failures within the operating culture.
After the easy fruit is gleaned from a new technology or process, all that is left to improve is the people
themselves. But people are more than just a collection of skills and capabilities. People are also a "people
system" with a process capability of their own. This people system is also referred to as the social system or
the organizational culture of the firm. This culture normally is so powerful that it ultimately has more impact
than management regarding what, where, and when things get improved. Hence the key to significant
improvement has been and always will be the supportive capability of the culture to manage the improvement.
This culture component has a unique relationship to ethics. It not only benefits from ethics management, but
is utterly dependent on it! Ethics management, when approached in a quality manner, identifies the ethics
needs b_fore training or p-olicy adjustments ever begin. The arbitrary imposition of anethics policy without
regard to the specific ethic's needs of the organization is considered by many ethicists and social scientists as
a very low probability strategy for improving ethics or preventing poor ethics. Business organizations must _o
beyond ethics ...pQlicies and embrace real ethics management at the organizational level, using professional
management methodologies, to have any reasonable expectation of improving ethical behavior. Jlisra15OUi
anywhere one goes one will fmd most ethics policies are at best jokes among the employees, and at worst trip
wires - or pretexts to shoulder blame. This is generally the result of such an arbitrary approach.
Ethics Management, when done right, accomplishes more than just improving ethical behavior on some
issues. 'Ethics management addresses the underlying root causes of unethical behavior. Since things that cause
unethical behavior also constrain organizational performance, solving internal ethical issues directly benefits
operating performance as well. Ethics, utility and successful human interaction are closely interrelated. In fact
they are so closely interrelated it may be impossible to consider either one in isolation of the other two.
Therefore, in order for any of these factors to improve, they must all improve, and if any do not improve,
chances are neither really improved. A common sense question could be asked: "Is it possible to improve
ethical behavior and not improve utility and successful human interaction?" The answer is: "Maybe, but not
likely." There are instances where there may be an ethical imperative, such as obeying the law, that appears to
constrain both utility and the needs of the group. However, when looked at more closely, unless it is clearly a
bad or unjust law, it can be argued that the law protects and prevents social failures, for society at large and
for the group, hence the group itself is better off following the law. Perhaps, in limited cases, in the short run,
and without regard to an ongoing social system, this question can be argued successfully at the metaphysical
level by highly trained philosophers. But because most business ethics
issues arise in an ongoing social system, it is highly probable that any improvement in ewcs will positively
affect utility and successful human interaction as well. Therefore, in managing business ethics, the odds bet
will be "against" this question. United (with utility and successful human interaction) -ethics stands- divided it
falls.
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Our Ethics Quality approach to ethics management seeks to prevent ethical failures by addressing their root
causes. The causes of ethical failures typically are not isolated events (or special causes) as most ethics
policies would label them. Instead they generally are systematic ( common cause) failures that arise from
patterns of reasoning and behavior that are embedded in individual and organizational routines. And since
operating culture patterns are significantly more powerful and more influential than individual values, the best
logical way to permanently fix unethical reasoning is to address it at the operating culture level first, and at
the individual level second. This should be the objective of ethics management.
Our Ethics Quality approach uses diagnostics to identify the strengths and weaknesses in the organization's
ethics system and directs training and corrective action resources precisely to those areas where the needs are
the greatest. By focusing on the organizations needs, and not just on a policy, ethics management removes
constraints to performance, creates a more supportive operating culture, and reduces risks of large scale ethics
failures in the process.
How Does Ethics Management Improve Performance?
Ethics management improves performance by improving the efficiency of the social system, people system,
or culture, in the organization. Ethics management prevents two kinds of ethics failure. One involves
constraints that are generated routinely all the time, as though they are a fixture in the everyday system. These
common causes are preventable through training and program development. In other cases special causes can
create constraints sporadically on a situational basis. These can be prevented through detection. Ethics
management improves performance by targeting and removing both types of causes, reducing the cultural
constraints throughout the social system.
An organization can be well intentioned, and be highly committed to its ethics policy, and still suffer from
poor ethical processes which are incapable of preventing common and special cause ethics failure. Finding the
causes are not easy, and usually require professional diagnostics. When these causes are identified and
corrected, ethical processes improve and performance improves too.
There is a strong statistical correlation in our diagnostic model between improved ethical processes and
performance. Our findings are in no way unique either. Similar empirical evidence exists in a variety of
extensive studies in organizational behavior and related social sciences, and our findings are consistent with
many of the world's leading management guru's and philosophers. No matter what you thought ethics was,
there is one essential fact that is most meaningful to any business organization. When real ethics are
improved, utility and social efficiency are improved also.
Ethics Policies: Are they Important?
Ethics policies are like table spices. They are very useful when they are mixed correctly into the right recipes.
They can ruin a dish if mixeq incorrectly. And they are only a . compliment_-and never a substitute - for the
underlying fo_d they are intended to enhance.
To be useful ethics policies must be designed to meet the specific ethics needs of the organization. For
exaniPle_ if the organization needs less heavy handedness and more openness, yet the ethics policy
emphasizes the need for employee loyalty and limited employee use of company e-mail systems, then the
resulting mismatch robs the policy of relevance and effectiveness. No matter how well conceived, no ethics
policy can fix problematic ethics patterns. Good policies can only set standards, and most do a poor job of
that.
Ethics policies are not the most important aspect of Ethics Management. What matters is not the spice but the
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quality of the underlying food. Hence it is the thinking and behavior patterns in the organization that give rise
to ethical behavior. These behaviors either are congruent with sound ethical processes, or they are not. It
therefore is the ethical process quality that matters, not the policies or standards they are supposed to meet. If
you do not have an ethics policy that does not mean you are failing in your ethics management. However, if
you have an ethics policy, it is quite important that it be supportive of the specific ethics processes needed by
the organization, and that existing ethics processes are soundly constructed and aligned.
Ethics policies should do more than just make you appear ethical. They should support specific "process"
requirements and be auditable against those requirements.
How Good is Your Existing Ethics Policy?
Nine Attributes of Good Ethics Policy
The first objective of any ethics policy is to facilitate legitimate ethical reasoning activity. It is impossible to
merely glance at an ethics policy and judge its "goodness." The true test of any ethics policy is how it actually
works within a specific organization. The following attributes are frequently missing in weak ethics policies,
and are positive drivers in strong policies:
1. Addressine the "Bit! E" (not just the "Little en). Policies not only need to address compliance issues (the
"Little e") but (the Big "E") issues such as the organization's moral maturity level; the ethical behavior within
operating processes assuring that intents, means and ends are all good; and the meeting of all stakeholder
requirements. The "Little e" is about control, whereas the "Big E" is about prevention, performance, and
quality. Effective policies are more about the "Big E" than the "Little E. It
2: . Universaity Ethical policies must be based on universal ethical principles such as The Golden Rule and The
Greatest Good. Core principles must be capable of trumping compliance policies.
3. Sound Loldcal Reasonine: Most ethical reasoning flaws begin with logical reasoning flaws. Ethics policies
need to reflect a commitment to data driven and logical decision processes, information sharing, effective
dialog and examination. Ethics can not operate without facts and execution between people. See our training
aid Organizational Reasoning.
4. Ethical Examination Skills: Ethical reasoning is a process capability that takes on different forms throughout
the organization's culture. Ethics policies need to reflect a commitment to developing ethical reasoning
capabilities at every level of the organization, with every employee, regarding how to elevate dialog and
reasoning to "right versus right" reasoning modes. Developing and sustaining such skills require training,
practice and rewards. See our training services.
5. Transfonnine: "wrou" to "rie:ht" and "bad" to "e:ood:" Good ethics policies promote skills where non-
universalizable principles, such as fallacies and lower forms, will be identified and transformed into higher
forms of universal ethical reasoning. The transformation of wrong thinking, wrong actions, and bad outcomes
to right thinking, right actions and good outcomes is the "blocking and tackling" of organizational ethics. See
our training aid 101 Fallacies and Lower Forms. To encourage this the policy must assure that all employees
may freely engage and question the ethics of any action without penalty. The organization needs to actively
solicit inputs from all participants to aid in the identification of ethical issues. See our Online Group Surveys
and Diagnostics.
6. Prevention: Ethical policies need to emphasize the examination process of. identifying "bad" ethical rationale
and transforming them to "good" ethical rationale, as stated in Attribute #5, but with one kicker: It must be
accomplished before the fact. Most ethics policies merely catch wrongdoing after the fact when many of the
failures, if identified earlier, could have been prevented. A good ethics policy incorporates early warnings and
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checks and balances, not merely to catch and punish violators, but to identify emerging risks and prevent
ethics failures.
7. Ore:anizational Chane:e Orientation: Organizational processes and practices impose a dominating influence on
individual ethical behavior in organizations. Ethics policies need to encourage and reward willingness to
adapt values and behavior patterns to improve the organization's moral maturity. Policies also need to
confront processes more than individuals actions, and be more about learning and changing, than just
Compliance. Adherence to fixed values at the expense of a dynamically driven organizational ethics can itself
become a cause of unethical behavior, posing an even greater liability to the group than minor issues of
noncompliance. Moving the entire group to the next ethical level is far more important than punishing an
employee for padding a time sheet by a few minutes.
8. Employee Trainine:: Ethics policies should require uniform ethics training around universal ethical principles,
and training needs to be provided continuously. Most employees need to be exposed to the ethical principles
several times before they can internalize them, and most need to actively practice them. with the support of
fellow workers to develop proficiency with them. See courses: Basic Ethics Training and Getting Ethics into
_ni7'.ations.
9. Leadership bv Example: Ethics policies are not tactical or symbolic monuments that executives can erect and
delegate, or worse yet ignore. Ethics policies are only as valid as the commitment management give to them.
Too many ethics policies are relegated to being defacto instrument_of'CORtrolJevied by upper management
to control lower level employees. Management is ultimately responsible for the level of organizational ethics
in the firm, and therefore needs
. De neld to a hif!her ethical standard than regular employees, not the lower :anoara we tOo often see amon_
corporate leaders. Management's ethics set the tone for the ethics of the entire organization. Therefore, ethics
policies succeed in proportion to how managers lead them by example.
What is Ethics Quality?
Performance Excellence Through Wodd Class Ethics Management Ethics Quality occurs when two
conditions are met:
. When a repeatable ethics reasoning process is integrated into the entire organization, and
. When the outputs of this reasoning result in the intents, means, and ends that are "good" for all
involved.
Here are some key concepts of ethics quality that may differ from many "policy" approaches to organizational
ethics.
1. Ethics Quality is a process capability that is directly linked to organizational performance. The ethics
quality process is based on universal principles that can be applied in a repeatable manner by most people and
render reasonably similar results.
2. The purpose of Ethics Quality is to apply universal principles in reasoning, not just policies, so the
organization, at all levels, can determine on its own, on an ongoing basis, what is "right" and "wrong" and
"good" and "bad" for them and others.
3. Ethics Quality seeks to integrate ethics into the complex social or cultural system within the organization.
It is never enough for senior management to just impose their ethics from the top down. Ethics policies tend
to treat ethics separately from other functional areas of the firm, and this separateness all too often renders
ethics meaningless. Ethical behavior must be integrated into everything and be organically developed at all
levels to be useful to the organization and all involved.
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4. Ethics Quality provides organizations with a big incentive to be ethical: It boosts performance! While most
organizations consider ethics programs and policies a cost of compliance, ethics quality is actually a money
maker, contributing to productivity, customer and employee satisfaction, risk management, and motivation.
Make something costly and companies will do it a little. Make it free and they will do it when they have time.
Make it a money maker and they will do it all the time and truly bring ethics into their organization. This is
what Ethics Quality does.
5. Ethics Quality facilitates organizational change. It not .only helps identify what ought to be changed and
how they ought to be changed, but it makes an organization more capable of managing change and
improvement. Organizations that continuously improve invariably have stronger ethics systems than those
that do not.
In brief, Ethics Quality goes beyond the scope of most ethics policies and programs to develop a viable ethics
system within Oq!3ni7.3tions that immove intents. means and outcomes for all involved.
Ethics policies, on balance, are good for organizations but are limited in what they offer. Ethics programs add
training and heightened emphasis and are a step better. Achieving a fully integrated ethics in the organization,
or an Ethics Quality, is the moral and economic winner, and is the best ethics management any organization
can do.
Why Pursue Ethics Quality?
When organizations pursue "partial ethics for some people some ofthe time" (the scope of most ethics
policies) the resultant change in moral behavior is often mixed and the link to performance improvement and
business success is often weak or non-existent. However, when organizations pursue "system wide ethics"
incorporating logical reasoning, human nature, and utility requirements, the resultant change in moral
behavior, performance improvement and business success is often significant. The best reason for upgrading
from an ethics program driven by policy to a program driven by process quality is, in a word, results.
There are three reasons for pursuing Ethics Quality.
1. Ethics Quality puts usefulness first, not last. This assures management buy-in and organization-wide
participation.
2. Ethics Quality requires performance improvement. This assures that ethics is used to support
organizational objectives.
3. Ethics Quality is a measurable process capability. This enables objectivity and continuous improvement.
What Does it Cost to Do Ethics Quality?
Ethics Quality is an investment in prevention that offers a swift and certain payoff and is economically
justifiable in any organization that needs it. The costs are relatively low. Out of pocket costs for diagnostics,
training, training aids and internal management time, even if all were purchased at once and for every
employee still amount to a mere fraction of what ISO certification or Six Sigma training costs organizations.
The degree of urgency and investment should depend on the needs diagnosed. The first question should
always be "What are the organization's needs?" Ethics Quality identifies what is broke, and then provides
ways to fix it. Since prevention is always cheaper than damage control and crisis management, Ethics Quality
is an investment that should be economically justifiable in any organization that needs it.
Ethics and TQM
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Total Quality Management is a management approach that originated in the 1950's and has steadily become
more popular since the early 1980's. Total Quality is a description of the culture, attitude and organization of a
company that strives to provide customers with products and services that satisfY their needs. The culture
requires quality in all aspects of the company's operations, with processes being done right the first time and
defects and waste eradicated ftom operations.
To be successful implementing TQM, an organization must concentrate on the eight key elements:
1. Ethics
2. Integrity
3. Trust
4. Training
5. Teamwork
6. Leadership
7. Recognition
8. Communication
This paper is meant to describe the eight elements comprising TQM.Key Elements
TQM has been coined to describe a philosophy that makes quality the driving force behind leadership, design,
planning, and improvement initiatives. For this, TQM requires the help of those eight key elements. These
elements can be divided into four groups according to their function. The groups are:
I. Foundation - It includes: Ethics, Integrity and Trust.
II. Building Bricks - It includes: Training, Teamwork and Leadership.
III. Binding Mortar - It includes: Communication.
IV. Roof - It includes: Recognition.
I. Foundation
TQM is built on a foundation of ethics, integrity and trust. It fosters openness, fairness and sincerity and
allows involvement _y everyone. This is the key to unlocking the ultimate potential of TQM. These, three
elements move together, however, each element offers something different to the TQM concept.
1. Ethics -.Ethics is the discipline concerned with good and bad in any situation. It is a two-faceted subject
represented by organizational and individual ethics. Organizational ethics establish a business code of ethics
that outlines guidelines that all employees are to adhere to in the performance of their work. Individual ethics
include personal rights or wrongs.
2. Integrity - Integrity implies honesty, morals, values, fairness, and adherence to the facts and sincerity. The
characteristic is what customers (internal or external) expect and deserve to receive. People see the opposite
of integrity as duplicity. TQM will not work in an atmosphere of duplicity.
3. Trust - Trust is a by-product of integrity and ethical conduct. Without trust, the framework of TQM cannot
be built. Trust fosters full participation of all members. It allows empowerment that encourages pride
ownership and it encourages commitment. It allows decision making at appropriate levels in the organization.
fosters individual risktaking for continuous improvement and helps to ensure that measurements focus on
improvement of process and are not used to contend people. Trust is essential to ensure customer satisfaction.
So, trust builds the cooperative environment essential for TQM.
II. Bricks
Basing on the strong foundation of trust, ethics and integrity, bricks are placed to reach the roof of
recognition. It includes:
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4. Training - Training is very important for employees to be highly productive. Supervisors are solely
responsible for implementing TQM within their departments, and teaching their employees the philosophies
ofTQM. Training that employees require are inte_rsonal skills, the ability to function within teams, problem
solving, decision making, job management performance analysis and improvement, business economics
and_technical skills. During the creation and formation ofTQM, employees are trained so that they
canbecome effective employees for the company.
5. Teamwork - To become successful in business, teamwork is also a key element of TQM. With the use
ofteams, the business will receive quicker and better solutions to problems. Teams also provide more
permanent improvements in processes and operations. In teams, people feel more comfortable bringing up
problems that may occur, and can get help from other workers to find a solution and put into place. There are
mainly three types of teams that TQM organizations adopt:
A. Quality Improvement Teams or Excellence Teams (QITS) - These are temporary teams with the purpose of
dealing with specific problems that often reoccur. These teams are set up for period of three to twelve months.
B. Problem Solving Teams (PSTs),. These are temporary teams to solve certain problems and also to identify
and overcome causes of problems. They generally last from one week to three months.
C. Natural Work Teams (NWTs) - These teams consist of small groups of skilled workers who share tasks
and responsibilities. These teams use concepts'such as employee involvement t_ams, seW-managing teams
and quality circles. These
teams generally work for one to two hours a week.
6. Leadership - It is possibly the most important element in TQM. It appears everywhere in organization.
Leadership in TQM requires the manager to provide an immirin.g vision, make strategic directions that are
understood by all and to instill values that gui<!e subordinates. For TQM to be successful in the business, the
supervisor must be committed in leading his employees. A supervisor must understand TQM, believe in it
and then demonstrate their belief and commitment through their daily practices ofTQM. The supervisor
makes sure that strategies, philosophies, values and goals are transmitted down through out the organization
to provide focus, clarity and direction. A key point is that TQM has to be introduced and led by top
management. Commitment and personal
involvement is required from top management in creating and deploying clear quality values and goals
consistent with the objectives of the company and in creating and deploying well defined systems, methods
and performance measures for achieving those goals.
III. Binding Mortar
7. Communication - It binds everything together. Starting from foundation to roof of the TQM house,
everything is bound by strong mortar of communication. It acts as a vital link between all elements of TQM.
Communication means a common understanding of ideas between the sender and the receiver. The success of
TQM demands communication with and among all the organization members, suppliers and customers.
Supervisors must keep open airways where employees can send and receive information about the TQM
process. Communication coupled with the sharing of correct information is vital. For communication to be
credible the message must be clear and receiver must interpret in the way the sender intended.
There are different ways of communication such as:
A. Downward communication - This is the dominant form of communication in an organization.
Presentations and discussions basically do it. By this the supervisors are able to make the employees clear
about TQM.
B. Upward communication - By this the lower level of employees are able to provide suggestions to upper
management of the affects of TQM. As employees provide insight and constructive criticism, supervisors
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must listen effectively to correct the situation that comes about through the use of TQM. This forms a level of
trust between supervisors and employees. This is also similar to empowering communication, where
supervisors keep open ears and listen to others.
C. Sideways communication - This type of communication is important because it breaks down barriers
between departments. It also allows dealing with customers and suppliers in a more professional manner.
IV. Roof
8. Recognition - Recognition is the last and final element in the entire system. It should be provided for both
suggestion and achievement for teams as well as individuals. Employees strive to receive recognition for
themselves and their teams. Detecting and recognizing contributors is the most important job of a supervisor.
As people are recognized, there can be huge changes in self-esteem, productivity, quality and the amount of
effort exhorted to the task at hand. Recognition comes in its best form when it is immediately following an
action that an employee has performed. Recognition comes in different ways, places and time such as, Ways -
It can be by way of personal letter from top management. Also by award banquets, plaques, trophies etc.
Places - Good performers can be recognized in front of departments_ on performance boards and also in front
of top management. Time - Recognition can given at any time like in staff meeting, annual award banquets,
etc.
Conclusion
We can conclude that these eight elements are key in ensuring the success of TQM in an organization and that
the supervisor is a huge part in developing these elements in the work place. Without these elements, the
business entities cannot be successful TQM implementers. It is very clear from the above discussion that
TQM without involving integrity, ethics and trust would be a great remiss, in fact it would be incomplete.
Training is the key by which the organization creates a TQM environment. Leadership and teamwork go hand
in hand. Lack of communication between departments, supervisors and employees create a burden on the
whole TQM process. Last but not the least,1 recognition should be given to people who contributed to the
overall completed task. Hence, lead by example, train employees to provide a.quality product, create an
environment where there is no fear to share knowledge, and give credit where credit is dueis..th_J_otto ofa-
stICce$ful TQM organization.
Value Education
Value education is ingrained in every tradition of Indian culture. Yet it is a matter of great regret that
gradually we are losing our value with the result that we tend to become corrupt and hypocrite. This trend
must be checked urgently. Perhaps a major responsibility for the corrective action lies on our leader in
different walks of life. Nevertheless educational institutions can also play a significant role in the promotion
of value.
The ultimate good of human society is the good of all. The idea has been beautiful expressed in one of our
ancient prayers:
“Let all be happy and free from disease, let men see well of one another – let be no sorrow of unhappiness in
this world”
Value education is rooted in Indian philosophy and culture. The Vedas and Upanishads which are the source
of inspiration are full of value education. Value education is imported at every point of life. In the Vedic
period when a shishya completed his education in Ashram, at the feet of his Guru, he was exhorted by his
guru to follow certain values throughout his life, like.
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“Speak truth; fulfill your duties, never lax in self study.”
The central task of value-based education is to develop men of goodwill who do not clear, or steal, or kill;
universal individuals who have as one both self and mankind.
Meaning of the Term Value
In the words of John Dewey, “Value means primarily to prize, to esteem, to appraise, to estimate; it means the
act of cherishing something, holding it dear and also the act of passing judgment upon the nature and amounts
of value as compared with something else.” A value stands for ideas men live for. They are the part and parcel
of the philosophy of a nation and that of its educational system. They are the guiding principles of life.
Various Values
The ideals conditions in the Constitution are: Socialist, Secular, Democratic, Justice, Liberty Equality,
Fraternity, Dignity of the individuals and integrity of the nation. Naturally, therefore, our values in life must
draw their inspiration from these ideals.
Earlier, the university education commission 1948-49 mentioned the various aspects of morality as: loyalty,
courage, discipline, self-sacrifice and spirituality.
The Secondary Education Commission 1952-53 laid special emphasis on the following values in the
formation of character of the students:
- Efficiency
- Integrity
- Discipline
- Cooperation
- Good Temper
The committee of Religious and Moral Instruction (1959), headed by Shri. Sri Prakash made a Special
mention of dignity of labour, love of humanity patriotism and self-discipline. Moral values particularly refer
to the conduct of man towards man in various situations – good manners.
The committee on Educational Integration (1961), headed by Dr. Sampurnanand referred to the mutual
appreciation of the various religious in the country spiritual values, national unityand unity of mankind.
The Education commission 1964 – 66, under the chairmanship of Dr. D. D Kothari emphasized the
inculcation of the values of cooperation, and mutual regard, honesty and integrity, discipline and social
responsibility. It also stressed the development of scientific temper of mind, respect for manual labour,
capacity to put in hard and responsible work, respect for and proper pride in the past, faith and confidence in
the future, national consciousness, spirit of social service for promoting social and national integration.
Equally essentials are values which help to make democracy a way of life and thereby strengthen it as a form
of government; readiness to appreciate other’s point of view and patience.
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Value – oriented school education (1972), a publication of the NCERT mentions these values: (i) Couragem
(ii) Truth, (iii) Universal Love, (iv) Dignity of Manual work, (v) Service, (vi) Cleanliness, (vii) Purity, (viii)
Courtesy, (ix) Peace and (x) Joy.
The Curriculum for the Ten-Year School: A Framework, (1975) prepared by the NCERT mentioned theses
values: Cooperation, initiative, leadership, kindness, honesty fellow-feeling, courage, truthfulness honesty,
and sincerity.
Values in Alphabetical Order
1. Abstinence
2. Appreciation of cultural values of others
3. Anti-untouchability
4. Citizenship
5. Consideration for others
6. Concern for others
7. Cooperation
8. Cleanliness
9. Compassion
10. Common cause
11. Common good
12. Courage
13. Courtesy
14. Curiosity
15. Democratic decision-making
16. Devotion
17. Dignity of the individuals
18. Dignity of Manual work
19. Duty
20. Discipline
21. Endurance
22. Equality
23. Friendship
24. Faithfulness
25. Fellow-feeling
26. Freedom
27. Forward look
28. Good manners
29. Gentlemanliness
30. Gratitude
31. Honesty
32. Helpfulness
33. Humanism
34. Hygienic Living
35. Initiative
36. Integrity
37. Justice
38. Kindness
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39. Kindness to animals
40. Loyalty of duty
41. Leadership
42. National unity
43. National consciousness
44. Non-violence
45. National Integration
46. Obedience
47. Peace
48. Proper utilization of time
49. Punctuality
50. Patriotism
51. Purity
52. quest for knowledge
53. Resourcefulness
54. Regularity
55. Respects for others
56. Reverence for old age
57. Sincerity
58. Simple living
59. Social Justice
60. Self-discipline
61. Self-help
62. Self respect
63. Self-confidence
64. Self-support
65. Self-study
66. Self-reliance
67. Self-control
68. Self-restraint
69. Social service
70. Solidarity of mankind
71. Sense of social responsibility
72. Sense of discrimination between good and bad
73. Socialism
74. Sympathy
75. Secularism and respect for all religious
76. Simple living
77. Spirit of enquiry
78. Team work
79. Team Spirit
80. Truthfulness
81. Tolerance
82. Universal truth
83. Universal love
84. Value for national and civic property
(Source: ‘Documents on Social, Moral and Spiritual Values in Education, NCERT, New Delhi (1979.’)
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Swami Vivekanand mentions the following values:-
Self-sacrifice, Service to others, Sincere performance; of our duties in whatever position, non-injury,
purity,; personal as well as social such as not yielding to corruption; fearlessness, Cultivation of emotions,
inculcation of patriotism.
Gandhi Ji mention eleven Values of vows. These are Ahinsa (Non-Violence), Satyam (Truth), Asatyam
(Non-thieving), Brahamacharya (Purity), Aparigarha (Non-acquisitiveness), Shariranharma (Physical
Work), Asvada (control of palate), Satyavarat Bhayavarjana (Fearlessness), Sarva Dharma Sambhava
(Looking up a all religious equally, toleration), Swadeshi (Patriotism – love of one’s own country) and
Sparsha Bhavana (Abolition of untouchability).
A Few Examples of Human Values as Contained in various Religious Control of Anger
Bhuddhism: One should not give way to anger, but should control it.
Christianity: The mark of a Christian is love, not hatred.
Confucianism: one should so conduct as to avoid hatred or anger from others.
Hinduism: Anger breeds confusion.
Islam: The strong man is only he who controls himself when he is angry.
Jainism: Anger is not for the wise of the religious.
Judaism: Anger Causes strife and destruction.
Sikhism: Anger is the fire that burns me as at cremation.
Taoism: Return anger with goodness.
Zoroastrianism: Never give way to the deadly emotion of anger.
Brotherhood
Buddhism: One should make good men his closest friends.
Christianity: All men are brothers. Brotherly love should rule the world.
Confucianism: Friendship and brotherhood are the cardinal virtues.
Hinduism: The good man makes no distinction between friend and foe, brother and stranger but regards
them all with impartiality.
Islam: All men are brother and should live as such.
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Jainism: Treat all men brothers and should live as such.
Judaism: God has made all men brothers and they should live together as brothers at all times.
Sikhism: Get together, my brethren and remove all misunderstanding through regard for each other.
Duty
Buddhism: One should be faithful to one’s duty at all times.
Christianity: One has a duty to god and duties towards one’s fellows.
Confucianism: The wise men makes duty his aim at all time.
Hinduism: Never falter in doing your duty.
Islam: All men who do there duty will receive a fitting reward from lord.
Jainism: It is a duty of all to be impartial.
Sincerity
Buddhism: God Loves the earnest, sincere man.
Christianity: at all times the true Christian is sincere.
Confucianism: Heaven will help the men who is sincere.
Hinduism: The lord does not favour those who are not sincere & honest.
Islam: God knows whether or not a men is earnest in his professions and will deal with all men according
to this knowledge.
Jainism: Clear thinking comes through sincere & earnest effort.
Judaism: The lord will help those who are earnest.
Sikhism: earnest ness is the only basis for true religious acts.
Work
Buddhism: Works and not birth, determines one’s place in the world.
Christianity: A men is to the judged by his works.
Confucianism: Not ease, but work is the mark of a good man
Hinduism: The man who does good becomes good.
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Islam: Work constantly.
Jainism: We reach the goal of the good life by pious work.
Sikhism: Good works bring man to a clearer knowledge of the devine.
Need for Value Education
The following are some reasons that may be mentioned in this connection:
1. The progress in science & technology without same time development of moral values could have
serious repercussion in many areas of life. It is very essential that moral awareness is promoted to
orient the progress in science & technology towards the welfare of mankind.
2. With the general decline of traditional values, some common values should be re-discovered to unite
human beings.
3. Schools can remain hardly natural so far value education is concerned. Teachers all always passing on
some values to there students whether they are conscious of it or not through there conduct in and out
of class rooms, through there selection of books to be read through their choice of instructional
strategies and so on. The need for a consciously planned value education program, therefore, is
obvious.
4. there is an increasing moral complexity in the contemporary world, and pupils are expected to face
more complicated decision making situations about issues involving values. They should be helped in
developing the ability to make proper choices in such situations.
5. It cannot be ignored that the rate of Juvenile delinquency is increasing every where it is a definite
symptom of a crisis which to days youth under goes in the process of personal growth. In such
situation value education assumes a special significance.
Types of Values
Values may be classified as:
- Aesthetic values.
- Cultural Values
- Economic values
- Ethical values
- Moral Values
- Physical value
- Religious value
- Social values
- Spiritual values
- Scientific values
Human values broadly speaking include all the above mentioned kind of values. Speaking in a restrictive
sense these include ethical, moral, scientific and social values. It is, of course, very difficult to draw a
clear outline.
In political sphere, we talk of communistic, democratic and socialistic values.
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Report of the Moral Education Committee, Uttar Pradesh (1980 – 82) has observed, “To put it briefly,
through comprehensively, by moral education we mean value-oriented education. “It includes not only
inculcation of moral and ethical values but also of all spiritual values.”
Dr. H. S Srivastava of NCERT has given here types of values:
- Personal Values
- Neighborly Values.
- Community Values.
A UNESCO Joint Study Report (1980) lists the following kinds of values:
- Values pertaining to Society.
- Values pertaining to self.
- Values pertaining to country and the world
- Progress values
The Principal’s Conference on Value Education, held at Guwahati on 13 – 14 Feb’ 1986 classified values
as under:
- Values related to the area of communication.
- Values related to the area of work.
- Values related to the area of service
- Values related to the area of citizenship.
Value Related to the Area of Communication
These include: Respect for facts (objectivity), Respect for other’s view points (listening with interest),
respect for precision, for courtesy in speaking, respect for diversity of view points, earlessness in
expression, courage two express own one’s view/faults, respect for reflective thinking, respect for critical
analysis and respect for proper reasoning.
Values Related to the Area of Work
These comprise initiative, resourcefulness, hard work, perseverance, honesty and integrity, devotion
to duty, punctuality, dignity of work, joy in work, responsibility, self-confidence, Team-spirit,
cleanliness, and orderliness.
Values Related to the Area of Service
These consists of compassion, love for all, concern for others, love for home and family, and love for
environment.
Value Related to the Area of Citizenship
Among these may be included: democratic spirit, respect for law, respect for public property, respect
for elders, respect for all religions, (secularism) tolerance of diverse viewpoint, peaceful co-existence,
cooperation (mutual dependence), self discipline and patriotism.
Awareness of Certainyalues in the Context of National Development
The concept of national development is very wide. It includes development in a11 areas of national
development. It covers every aspect of life. It relates to the aspirCitions and needs of the people.
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Important values related to national development are:
1. Values related to the modernization of Indian society.
2. Values related to emotional and national integration.
3. Values related to democracy.
4. Values related to the socialist pattern of society,
5. Values related to secularism.
6. Values related to international understanding and peace. 7. Values related to syntheis betV'!een culture and
science.
1. Value Education in the Modernization of Indian Society & his includes awakening of curiosity, the
development of proper interests, attitudes and values and the building up of such essential skills as
independent study and capacity to think and judge for oneself.
2. Value Education in Promoting Social and Natural Integration. This includes:
(i) Making social and national service an integral part of edueation. at all stages.
(ii) Encouraging and enabling students to participate in community living in the school or college campus.
3. Value Education iu Developing. Democratic Values. Education should aim at the development of values of
the following type:
(i) Scientific temper of mind.
(ii) Tolerance
(iii) Respect for the culture of other groups.
(iv) Cooperation.
(v) Large heartedness.
4. Value Education in Establishing a Socialistic Pattern of Society. The educational system should provide
for:
(i) Developing belief iil equality of opportunity in education.
(ii) Compulsory social and national service.
5. Value Education in Developing Secular Outlook. Following steps are needed:
(i) Introducing instruction in moral, social and spiritual values.
(ii) Providing syllabus giving well-chosen information about each of the. major religions of
the world. This syllabus may form it part of the course in citizenship.
(iii) Encouraging students to meet jn groups for silent meditation.
(iv) Stressing scientific outlook in life.
(v) Presenting before students high ideals of social justice and social service.
6. Value Education id Promoting International Understanding. This could be done by taking the
following steps:
i) Revision of textbooks and elimination of hostile material about other countries.
(ij) Stressing tbe contribution made bv various countries in the progress of humanity. .
(iii) Participating in the various activities and programmes formulated.
7. Role of Education in Synthesising CuUut'al snd Scientific Values. The Education Commission felt,
"We believe that India should strive to bring science and the values of the spirit together in harmony and
thereby pave their way for the eventual emergence of a society which would cater to the needs of the whole
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man and not only to a particular fragment of his personality." A scientific outlook must become part of our
way of life and cultun:. Science should be seen as a spirit that strengthens the commitment of man to free
enquiry and to the quest for truth as his highest duty and obligation.
Inculcation of Values
Broadly these types of approaches have been suggested:
1. Suggestions/Including Core elements in various subjects.
5. Participation/Experiences! Activities.
3. Examples.
It is possible to adopt all the three methods but more reliance should be placed on participation of the students
in various activities and gaining experiences in value education and core elements.
Example of the elders in the home and of the teachers in the school is very conducive to value formation.
Value development should be integrated through the day-to-day activities of the school.
The suggestions given by the Education Commission 1964-66 are even valid today, Indirect Influence
of the Teacher aDd Direct Participation in Activities.
We attach great importance to the role of indire_ influence in building up good character. The school
atmosphere, the personality and behaviour of the teachers, the facilities provided in the school, will have a
large say in developing a sense of values. We would like to emphasise that the consciousness of values must
permeate the whole curriculum and the' programme of activities in the school. It is Dot only the teachers in
charge of moral instruction who are responsible for building character. Every teacher, whatever be the subject
he teaches must necessarily accept this responsibility, He must ensure that in the teaching of his particular
subject and in his dealings with his pupils, fundamental values such as integrity and social responsibility are
brought out. The teachcr need not, we can even say that he should not, try to draw put the underlying moral
all the time; but if he has given some thought to the values underlying the scope of his subject and his work as
a teacher, they will imperceptibly pass into his teaching and make an impact on the minds of his students.
Moreover, a sense of purpose should inspire all school activities and must be reflected in the life, tone and
atmosphere of the school. The schoo] assemmy;-the curril_..l..1lar and co-curricular activities, the celebration
of religiouS-festivals of all religions, work experience, teiii:ir']ames-and sports, su"bject clubs, social service
programmes-all these "Can help in ioculcuhiting-the values of cooperation and mutual regard, honesty- and
integrity, discipline and socia] responsibility. These values have a special significance in Indian society today,
when young men and women are passing through a crisis of character, (Para 8'95).
Direct Instruction of Moral Values
In addition to this indirect approach for inculcating moral and spiritual valucs, we consider that specific
provision for direct moral instruction in the school programmes is highly desirable. Wc agree with the
recommendation of the Sri Prakasa Committee that one or two periods a week should b£_eJ asi.dejn the
school time-table for instructi{flf'"in moraC and spiritual values. At the primary stage such instruction will
generally be imparted through interesting stories, including stories drawn from the great religions of the
world. At the secondary stage, there may be frequent discussions between the teacher and the pupils on the
values sought to be inculcated. Whatever be the method of teaching, it should not lead to moral instruction
being divorced from the rest of tbe curriculum or
being confined to a single period. If the values are to become a
part of the student's character, aD all-embracing treatment of the
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moral way of life is needed. (Para 8.96).
Relation between Moral Values and Religion
There will be natural points of correlation between the moralvalues sought to be inculcated and the
teachings of the great religions. Stories drawn from the gr_1!Lreligi.oDS qf tge world will be most
a2propriate in a discussion of moral values and of problems in life. _A'll religions stress certain fundamental
qualities of chaniCier, such as honesty and truthfulness, consideration for others, reverence for old age,
kindness to animals, and compassion for the needy and the suffering. In the literature or evcry religion, the
story of parable figures prominently as a means of impressing an ethical value on the foIlowers. The narration
of such stories by the teachers at the right moment in'the programme of moral education would be most
effective, particularly in the lower classes. (Para 8.97)
At a later stage, accounts of the lives of great religious and spiritual leaders will find a natural place.
Some of these may be included in the study of sociar'"studies or literature, but it is essential that all important
religions are represented properly in the programme. Similarly, the celebration of the festivals of different
religions will afford opportunities for the narration of incidents from
the life history of the leaders of these religions. In the last two years of the secondary schoo!, a place should
be found for the study of the essential teachings of the great religions. (Para 8.98).
Illustrative List of Activities and Value-inculcation
Value/Values to be Inculcated
Orderliness. Punctuality.
Discipline. National Integration.
Patriotism.
Devotion. Peace. Team Spirit.
Cooperation. Good Manners. Sense of Responsibility.
Co-operation. Consideration for
others. Sense or Responsibility
Love and Respect for Rules.
National Spirit. Patriotism.
ActIvity
7. School Cleanliness
8. Social Service Camps
9. Assisting in Mid-day
Meals of the School
10. Social Service in Fairs
and other OccasIOns
Value/Values to be Inculcated Love for Cleanliness. Dignity of Labour.
Love for Loyalty. Dignity of Labour. Selfless spirit.
Cooperation, Service-mindedness.
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Service-mindedness. Compassion. Sympathy.
Concluding Observations
It must be remembered that the education of values is not something that can be confined to a particular
period or a particular teacher or to the influence of a particular set of activities. It is a project in which every
single teacher and every item of the school programme has to participate intelligently. This is a truth which
must be accepted by all. Value e<;lucation is connected with the day-to-day and the hour-to-hour work of the
school.
An educationist ha:s rightly observed:
"The erosion of values is now a national phenomenon, so complex and gigantic that a more balanced
school curriculum, new learning materials and competent teachers alone can do very little. The task of
national development is massive and urgent and no worthwhile achievement is possible without an upsurge of
ethical values, of deanlines's of public life instead of tbp. prevailing cynicism and corruption, and genuine
practice of moral and spiritual values by all sections of our people".
Values (Core Elements) as Specified in the National Framework
The National Policy on Education, 1986 has made a strong plea for initiating curricular efforts for the
promotion of national identity and tbe cultivation of values as enshrined in our Constitution. The common
core elements of the National System of Education will include the following:
! History of India's freedom movement.
2. Constitutional obligations.
3. Content essential to nurture national identity.
4. India's common cultural heritage.
5. Egalitarianism, democracy and socialism.
6 Equality of the sexes.
7. Protection of environment.
8. Removal of social barriers.
9. Observance of a small family norm.
10. Inculcation of the scientific temper.
Activities Relating to Cultural Heritage, Nationalism and National Integration
A vari:::ty of activities can be organised for developing appropriate values relating to these areas. In fact
it is very difficult to visuaHse a single activity in isolation. Stil1 these may broadly be mentioned under the
following categories.
National Integration and Conservation of Past
1. The pupils may be involved in learning and singing songs in languages of various regions and states.
2. Students may be given opportunities to learn other scripts.
3. Studems may learn at least a few common sentences or words of a few other )anguages.
4. Students may be involved in the dances of other parts of the country.
5. Students may be encouraged to find good points of things available in other regions.
6. Students may be encouraged to take interest in the historical remains of the past and feel responsible for the
maintenance of such things. .
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Activities Relating to Appreciation of Our Struggle for Freedom
1.. The students may be told about the sacrifices made Qy the freedom fighters in the struggle for freedom.
2. They may be encouraged to read stories and biographies of great leaders.
3. They may be encouraged to visit memorials connected with freedom fighters.
4. They may be encouraged to participate in debates, speech making and dramas etc., connected with the
subject.
5. They may be encouraged to take up various projects the stamp collecting, picture collecting etc., of great
leaders.
6. National Days be celebrated.
7. Exhibition on various themes of the freedom movement may be organised. .
Activities Relating to Respect for National Symbols
1. From time to time students should be reminded of the rules to be observed while hoisting the national flag
and singing the national anthem.
2. Children may be helped to prepare scrap books of flags of those countries which are similar to the Indian -
National Flag. They may be asked to draw these flags, using colours.
3. The significance and importance of the National Symbols may be made clear to the students.
Activities Relating to the Protection of Environment and COD Senation of Resources
The students may be helped to undertake the study of local environment and collect the following type of
information:
1 . What type of natural resources are available in your area?
2. How are these resources used?
3. What type of natural resources are not available in your area?
4. How do you meet your requirements if some of the natural resources required by you are not available in
your locality?
5. Students may be helped to prepare talks, dramas etc., on the importance of conservation of resources.
6. Students may be asked to describe the effects of stagnant pool.
7. Students. may be helped to compare a polluted and an unpolluted site in the environment.
8. Labour weeks may be organised to keep the school campus and neighbourhood clean and students involved
in these programmes.
Activities Relating to Observance of Family Norms
1. Students may be asked to compare the facilities provided in the same income in two families; one with
large number of children and the other with small number of children.
2. Students may be asked to prepare budgets of small and big families.
3. Students may be asked to find ou the effects on the living conditions of the family in case there is an
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increase in the members but no increase in income.
PROBLEMS FOR DISCUSSION
1. "Value-education is a way of life." Explain the concept value in this context. Suggest methods.
2. What is intended to be accomplished by inculcating values?
3. What is the outcome of inculcating values?
4. Can we classify the values in water-tight compartments? Give broad types of values.
5. Specify the core elements (values) of the National System of Education? Suggest measures for their
development in the students.
6. List a few human values common to all religions.
7. Suggest a few activities and their accompanying value development.
Our Educational Heritage
Wide-Spread Education
In ancient India education was wide spread. The standard of education was so high that foreign students
and scholars came to India for receiving education and enlightenment. To use the modern phraseology,
foreigners used to call themselves 'India Returned' as some ofu9 take pride in calling ourselves 'Foreign
;{eturned', 'U.S.A. or U.K. Returned' etc. It is, therefore, no wonder that Dr. F.W. Thomas, one of the most
distinguished scholars has' observed, "Education is no exotic in India. There is no country where the love of
learning had so early an origin or has exercised so lasting and powerful an influence."
(F.W. Thomas, History and Prospects of British Education in India. Cambridgc, George Bell & Sons,
1891, p. 1).
Accordin_ to the Encyclopedia Britannica, Vol. 7, "the period... was a most creative period and
metaphysics as well as mathematics and early science made note worthy progress. It was the age of the
Upnishadas and Sutras. When new branches of learning enriched the content of education."
In the words of Lord Meston, "At no period of its rustory has India been an altogether unenlightened
country. Inscriptions, on stone and copper, the palm-leaf records of the temples, and in later days, the
wide.spread manufacture of paper, all alike indicate no only the great knowledge, but also the common use of
the art of writing. From the earliest times the caste of Brahmans has preserved by oral tradition as well as in
manuscript; a literature unrivalled alike in its quantity and in intellectual subtlety of its contents."
According to a French Scholar Maspero, the Chinese Emperor Ming.ti (A.D. 58-75) sent 18 scholars to
India. The names of FaHien Tsang, Hieun Tsang and I- T-sing readily come to mind.
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Ancient Universities like Taxila, Nalanda. Magadba, Kamrupa,
Ayodhya, Vallabhi; Vikramsila, Mithila, Nadia etc 'were famous' all over the world.
It is saId that the University of Nalanda's hostel (Ashram) consisted o_ 300 rooms and 8,500 students
lived there. Teaching staff in the host'el consi_ted of 1,510 teachers and 1,990 menial staff.
(Management of University Hostles by Dr.M.V. Soundara
Rajan, 1990).
Noteable Features of Education in Ancient India
1. Aim of Edncation -Self Realization. The ultimate aim of education in ancient India waS not knowledge as
preparation for life, but for complete realisation of self-for liberation of the soul from fetters of life, both
present and future. That knowledge was" real, which led to emancipation-led from unreality to reality, from
darkness to light, from death to immortality.
Ancient educationist considered' VidJa' knowledge as the third eye of man which gives him insight into
all affairs and teaches him how to act righteously. It leads us to salvation. It provides us iIluminination to
sbatter illusion. It enables us to realize the true value;'> of life.
2. Free and Accessible. Education was free and accessible to all who-sought it.
3. No State Control on Edncation. Education was a private affair of the people, managed entirely by
Brahmans. Rulers of the country could subsidise it, if they thought fit to do so, with grants of land or money.
They could impose no conditions or control on teachers affecting their freedom of work.
4. Higli Statui of Teachers. Teachers were a highly honoured class_honoured even by kings. Kings rose from
their thrones to receive great teachers such a_ Narada, Vashishtha and Vishwamitra. A well-known Sanskrit
verse goes so far as to say:
"The teacber is Brahma. The teachercis Vishnu. The teacher is the Great GodShiva. The teacher is the
Great Brahman (Supreme Divine Soul) incarnate. Bow to that teacher I"
5. Teacher as Parents. Teachers behaved as parents to their pupils and pupils bebaved as members of the
teachers' family. The attitude of the pupil was to be one of complete submission.
6. Residential Schools. Teachers and pupils lived together and so
identified themselves with one another as to able to pay as follows:
"May both of us be guarded! May both of us be protected!
May both of us work together! May the study of both of Us be successful (vibrant with power, radiant with
light) ! May we not berivals to each other! Om, Peace, Peace, Peace".
7. Immediate Aim--Vocational. The immediate aim of education, however, was to prepare the different
classes of people for their actual needs of life.
8. Curriculum. The subjects of IDstn_ction varied according to the vocational needs of the different clas_es
from the Vedas and Vedangas in the case of Brahmans, to the art of warfare in the case of Kshatriyas, and to
agriculture and trade, arts and crafts in the case of Vaishyas.
9. Method of Instruction. The method of instruction generally consisted of recitation by the teacher and
repetition by the pupil, followed by explanation by the te!tcher, questioning by the pupil, and discussion
between the teacher and the pupil.
10. Individual Teaching. Pupils were taught, individually, not en masse by the class method. Where pupils
were many, the monitorial plan was followed, the more advanced pupils being appointed to tea<.'h the less
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advanced.
11. Method of Study. The method of study consisted of listening to the teacher, reflection on what bas been
listened to and its constant revision.
12. Role of Travel in Education. Travel was regarded a_ necessary to give a finishing tocch of education.
13. Education - Moral, Religi_us and Spiritual. Education was not for a public examination or for paid public
or private service, as it is generally considered to be at present. It was not merely intellectual. It was also
moral, religious and spiritual.
14. Forests as Centres of Education. The place of education was generally the forest "far from the madding
crowd's ignoble strife"
15. Sanskrit as the Medium of Instruction. The medium of
instruction in institutions conducted by Brahmans was Sanskrit.
16. Self-Control and Self-Discipline. There was, generally, corporal punishment Self-control or self discipline
was considered to be the best discipline.
17. Wide-Spread Education in Women. In the earlier Vedic and Upani,had times. girls were free to go through
the Upanayana ceremony, lived a life of celebacy, studied Vedas, Vedangas and other subjects among with
their brother pupils.
18. Science Education in Ancient India. People were familiar with mining and melal.work, architecture,
manufacturing: of gypsum, cement and permanent paints. Vedic science included the element of astronomy,
mathematics, chemistry and biology.
19. Commercial Education in Ancient India. The idea of the scope and nature of commercial education can be
had from knowledge of commercial geography, needs of the people of various localities, exchange value and
quality of articles, and languages spoken at different trade centres were considered necessary. 1 heory of
banking was also included in the course. In the hereditary training families of high status, such a wide training
might have been possible, but generalIy the knowledge about commerce and trade was picked up by working
in the family shops or trades. There were no organised commercial institutions, though most of tbe trades had
formed efficient gulds during the first millennium of the Christian era: Training was usually imparted in the
family by the elders in real learning situations.
20. Mathematics Education in Ancient India. Ancient India quite early evolved simple system of geometry
urged by the necessity of accurately laying the open-air sacrificial places. Shulvasutni are the oldest
mathematical works, probably composed between 400 B.C. and 200 A.D. Aryabhata (476-52) is the first great
name in Indian mathematics. To the period immediately preceding him belongs one of the most significant of
human discoveries, the zero, though the name of the discoverer is unknown.
Merits of the Vedic System of Education
The system of education was well-organised. It was suited to the needs of the society. Education was
considered as the greatest gift in ancient India. It was aimed at the development of the personality of an
individual to its maximum extent. Education helped in the realisation of spiritual and moral yalues, besides
preparing (or worldly pursuits. It was freely available to all those who wanted. There was no system of paying
fees as we find it to-day. The relations between teachers and the pupils were based on love and affection.
They were very cordial and intimate. Both were bound by mutual contidence and reverence. The relationship
lasted for life. The teacher's status was very high.
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Curriculum was quite comprehensive. Though mainly religious yet it provided for vocations also.
Shortcoming of the Vedic System of Education
1. There was rigidity in instruction.
2. Discipline was very strict.
3. Instruction primarily depended on verbal instruction. It required repetition and encouraged rote learning.
Education in medieval India was not so wide-spread as in Ancient India. However it enjoyed the patronage
of the rulers.
Main Features of the Education System in MedieTal India
Following' were the distinguishing features of the Muslim education in India during the Medieval
period:
1. Religion-Centred Edncation. Tn thewMds of S N. Mukerji, "The whole educational system was saturated
with religious ideals which influenced the aim, the contents of sludy, and even the Qaily life of the pupils."
The pupils acquired knowledge as a religious obligation
2. Pursuit o.f Various Disciplines. Though education was primarily religion-oriented. It also incluced the
study of many intellectual a('tivitie_ like mathematics, astronomy, gramrrar, p('lity and politics. Art and
literature were also encouraged.
3. No.rms of Behaviour. rdequate stress was laid on weIldefined norms of behaviour, pattern of thoupht,
buiJd;ng up personality. and character of the pupils.
4. I..earned Teachers. Teacl,ers took to teaching for love of learning. Thev were held in high esteem. Prof
S.N_ Mukerji has observed, "Lea.rning w", prized for its own sake and as a mark of the highes.l huma;1
development and teaching was never handicapped by;e';tanlination requirements.
5. Close Rela'tion between the Teacher and the Pupils. The relation between the teacher a nd the pupils were
based on respect and affection, The teachers used to pay individual attention to the students:
6. No. Set Machinery for Educational Organisation and Administratio.n. The rufers neither claimed any
authority over the educational institutions nor iaterfered with thdr management.
7. Patronage o.f the Rulers The rulers helped in the spread
of education. They built educational institutions and universities. They endowed them with fund; Big
landlords also provided financial help for the spread of education. The rulers patronised the men of learning.
8. Teacber- Pupil Relationship. In this period also the teacher was respected as during the Brahmanic or
Buddhist period. There was intimate relationship between the teacher the pupil, although the practice of living
with the teacher was not as common with the Muslims as it was in the care of Brahmanic lIod Buddhist
period. Pupils were expected to serve their teacher and in return got sometimes free food and always free
knowledge from him.
Although a 'teacher did not have many, pupils to teach yet, if there were many, the teacher would take
the help of senior and advanced students to teach thce younger or the junior.
9. Discipline. Punishments were quite severe. Truants an_ delinquents were caned on their palms and slapped.
on their faces": Whipping was also quite common. Any form of punishment devised and thought of by the
ingenuity of the teacher was permissible.
10. Vocational Education. Provision was also made for vocational, technical and professional education.
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Professor Weber says, "The skill of the Indians in the production of delicate woven fabrics, in the
mixingof,colours, the working of metah and ;Jrecious stones and in all m_nner of technical art_ enjoyed a
world wide
celebrity. The fine fabrics, the beautiful shawls, the painted wares and the gold and silver ornaments of India
are ample proof of the fact that there were arrangements for artistic, vocational and technical education. The.
presence of so many magnificent buildings shows that the art of stone cutting had reached its climax. Feroze
Shah Tughlaq maintained a regular dep_rtment of industries."
- Maktab It WasaC school for imparting Islamic education.
Maktab is derive}! (rom A:rabic word 'kutub' (writing), and means
a place where writing is taught, or a place of books. It was generally attached to a mosque. During Muslim
period it was run with tbe belp of well to. do Muslims orcewith land or money grants from the rulers. The
students began by studying Urdu, Persian or Arabic. After being abJe tor<:ad the Arabic scsipt, the students
.recited Suras or Chapters of Quran. Memorization and correct pr.onunciation were emphasised. Special
attention was paid to good handwriting. Xrithmetic, conversation, correspondence, poetry, and good mannl?rs
were included in the curriculum. Gulistan' or Bostan of Sadi were generally prescribed for the purpose of
moral education. .Madrasa. [t was an educational institute for imparting Islamic education and higher
learniJg. Madrasa is derived from Arabic word 'dars' (a lecture) and means I! place wherec lecture is given. It
functioned as cq!lege of higher educatIon where eminent scholars taught different subjects l5y using the
lecture method supplemented by discussions. Management was usually supported by state grants and
endowments. The content of the curriculum was both religious and secular. Literature, logic, history,
geography, astronomy, astrology, arithmetic agriculture and medicine w_re the secular subjects taught in
Madrasa.. Some Madrasas had hostels attached to them which provided free b8arding and lodging. In som_ of
the big tOlvilS like Gopuram and Khariabad in Oudh, Jaunpur, Agra, Lahore, Multan_ Delhi, Ajmcr and
Lucknow
etc., there were arrangements for higher study. Advanced subjects were taught aod students came from all
parlsof India and Afghani,tan and Bukhara as wel1. Subjects like Grammar, Literature, Persian, Arabic,
Geometry, Science, History and Economics were taken up for higher and critical study. Among other subjects
were included Astronomy, Metaphysics, Rhetorics, Tbeology, Logic, Algebra, Arithmetic, the Art of
Administration and medicine etc. Persian was the medium of instruction as this was the court language.
A.rabic was compulsory for Muslims.
EDUCATION DURING BRITISH RULE
"Education in India during the British Government", says Howell, "was first ignored, then violently and
successively opposed, then conducted on a system now universally admitted to be erroneous and finally
placed in its present footing".
(A.P. Howell, Education in British India. Calcutta, Government Printing 1872).
The first phase of education started about 1600 A.D. when the East India Company was established.
During this 'period, christian missionaries came to India and established schools for the education of tbe
Europeans and Anglo. Indians. This phased continued in Jadia till 1813. bestowed political power on
Circumstance the Company by 1857.
The Charter Act of 1813 stated, "A sum of not Jess than one lakh of rupees in each year shall be set
apart and applied to the impro
vement of literature and the encouragement of tbe learned natives of India for the introduction and
promotion of a knowledge of the sciences among the inhabitants oftbe British territories in India."
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The Charter Act led to controversies. There were two schools of thought; the Orientalists and the
Anglicists. The Orientalists supported and encourged the study of Sanskrit, Arabic aDd Persian. They were in
favour of mass education and indigenous schools. The Anglicists on the other hand advocated English system
of education based on western learning.
MacauJay's Minnte as the Foundation of tbe English System of Education in India.
The controversy was resolved by Macaulay's Minute of 1835. Lord Macaulay was tbe Law Member of the
Governor General's Council. He favoured the Anglicists. In his minute be observed that it was possible
through English education to bring about "a class of- persons Indian in blood and colour, but English in tastes,
in opinions, in morals and in intellect". William BeD_ick, the Governor General acc{'pted Lord Macaulay's
Minute and passed a Resolution in 1835 "that the great object of the British Government ought to be the
promotion of European literature and science among the natives of India; and that al1 the funds appropriated
for the purpose of education would be best employed on English education alone."
After Ben tick's proclamation, schools were established for teaching European literature and science.
Preference in Government service began to be given to those who were educated in English schools.
The Despatch of 1854. The Despatch of 18 S4 popularly known as Wood's Despatch after the name of
Charles Wood, the President of the Board of Control, became a landmak in the history of education in India.
It was made very clear that the object of education was the diffusion of European knowledge.
Establishment of Universities 1857. The establishment of Universities in the Year 1857 was another
landmark in the English system of education in India.
The Hunter Commission of 188Z. The Commission anticipated a diversified instruction at the secondary
stage of education.
The Unive_!ty Commission 1902. The main impact of thisCOInm-ission w;;.s i.';at secondary schools
had to be recognised by the Universities.
Gokhale's Resolution on Primary Education (1913-1914). Gokhale's resolution on primary education
was rejected in the Imperial Council but it focused attention on primary education.
The Sadler Commission or the Calcutta University Commission (1917). It contained the most
comprehensive study of the Indian system ->f education from the secondary stage to the university.
Hartog Committee Report (1929). Its main feature was that it defined the concept of wastage and
stagnation in primary education and suggested remedies.
Abbot Wood Report (1936-37). Two experts Abbot and Wood made recommendations on technical and
general education.
Wardha Report or Basic Education (1935). Gandhiji realized that the system of education introduced by
the English rulers in India did not meet the needi and aspirations of India. He therefore, evolved a new system
of education known as Nai Talim or Basic Educiltion.
The Sargent Report (1944). The Central Advisory Board of Education asked John Sargent who was
Educational Adviser to prepare a Report on Post-War Educational Development. The report contained a
detailed review of the svstem of education and visualized a system ofuniver.al, compulsory and free education
for all boys and girls between the ages of 6 and 14, the Senior Basic or the Middle School being the final
stage in the school career of majority of the future citizens.
Main Drawbacks of English System of Education in India
1. It was not related to the needs of India.
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2. It was an urban system of education in a rural country.
3. English dominated the curriculum.
4. System of education was too bookish.
5. System was examination.oriented.
6. System was very wasteful.
7. System produced clerks by and large.
8. System followed a single track.
9. System was unplanned.
10. System neglected vocational, commercial and technical training.
11. System was very expensive.
12. System was not in accordance with the needs ofa free, secular and democratic character.
Prof. Aparna Basu of Delhi University has summed up the positive and negative aspects of English
education in India as under.
Positive Aspects of English Education. The introduction of
English education was one of a series of acts which collectively opened the doors of the West to the
East. In every sphere of modern Indian life, though the influence of tradition persists, the impact of the west
can also be traced. Much of the organization of the democratic state, its secular character, the structure of its
institutions and the political principles underlying them are largely European in inspiration. Similarly, the
social reforms in Hindu society, the movements for the emancipation of women and for the removal of
untouchability reflect western influence to a considerable extent.
Negative Effects of English Education. Negative effects' are fairly obvious. The educational system by
building up and educated elite and neglecting popular education helped to preserve and strengthen the barrier
between the upper classes and the masses. The nse of English raised the class barrier even higher.. The low
rate of literacy, the method of teaching, neglect of training of teachers, .
contempt for manual work, emphasis on a literary education. arid neglect of technical education which was
inevitable in Ii colonial context, the creation of a gulf between an elite educated in English and the masses-all
these constituted formidable obstacles in the path of development.
EDUCATION IN FREE INDIA
Even before India became free from the British rule, it was felt by the leaders of the freedom movement
and social rdormers that education did not meet the needs and aspirations of the people of India. It was,
therefore, natural that there has been a tremendous expansion of educational activity in India since
independence. On the one hand, efforts have been made to provide more and more education and on the other
hand to bring about qualitative changes in different areas of education.
The first and the foremost educational demand after independence has been that of universal elementary
education in terms of Article 45 of the constitution.
The second important educational demand has been to provide equal educational opportunities which
emerges from India's decision to become a democratic republic.
The third important educational demand has been to provide secular education.
The fourth important educational. demand has been to provide such an education which helps in the
emotional and national integration of the people of India.
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The fifth demand has been to provide such an education which is helpful in developing suitable
manpower.
The sixth demand has been to enable individuals enter the world of work, i.e. vocationalisation of
education.
The seventh demand has been to formulate and implement such a language policy which unites people
using different languages.
The eight demand has been to provide adequate educational facilities to the vast number of adult
illiterates in the country.
The last but one of the most important problems of education is to develop moral values of the people.
Major Commissions and Policies in the Field of Education
In free India, many Committees and Commissions have been appointed to survey the educational scene
and suggest suitable measures for bringing about educational reforms. Mention may be made of following:
1. The University Education Commission 1948_49 appointed under the chairmanship of Dr. S.
Radhakrishnan, who later on became the President of India.
2. The Secondary Education Commission 1952-53 appointed under the chairmanship of Dr. A.
Lakshmanaswami Mudaliar;ViceChancellor, Madras University.
3. Committee on Higher Education for Rural Areas, 1954. 4. Assessment Committee on Basic Education,
1956.
5. Committee on Rural Education, 1957.
6. Examination Committee, 1957.
7. National Committee on Women's Education, 1958.
8. Committee on Religious and Moral Education, 1959.
9. Commiltee on the Problem of Student Indiscipline in Indian Universities 1959.
10. Committee on Differentiation of Curricular for Boys and Girls 1961.
11. Emotional Integration Committee 1961.
12. Indian Parliamentary and Scientific Committee, 1961.
13. Committee to Look into the Causes of Lack of Public Support particularly in Rural Areas of Girls
Education and to Enlist Public Cooperation, 1963.
14. Education Commission or Kothari Commission, 1964-66. 15. Committee on School Text Books, 1966.
16. Educational Policy, 1968.
17. Comm ittee on School Buildings, 1970.
18. National Committee on Educational Structure, 1974.
19. Review or Ishwarbhai Committee, 1977.
20. National Review Committee on Higher Secondary Education with Special Reference to Vocationalisation,
1977-78.
21. Draft National Education Policy, 1979.
22. NatioDal Commission on Teachers I (Chattoppadhaya Commission), 1983.85.
23. National Commission on Teachers II (Higher Education).
24. National Policy on Education, 1986. 25. Programme of Action, 1986.
26. National Literary Mission, 1988.
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27. National Curriculum for Elementary and Secondary Education: A Framework, 1988.
Expansion of Educational Facilities after Independence There has been a tremendous expansiori in enrolment
and in educational institutions in India after independence.
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entry, annual squential promotions, iosistence on full-time attendance. and almost exclusive use of full-time
teachers). and neglects both nonformal aod recurrent education. The edu,cational institutions function in
isolation from the community as well as from one anotber.
2. Institutions of Double Standards. The system maintains a set of double standards. A small minority of
educational institutions at all levels is of good quality and compares favourably with those in developed
countries. But access to them is selective and is mostly a vailed of by tbe top social group. This core of good
institutions is surrounded by a large !,lumber of institutions which are poorly maintained. Their standard is
also very low.
3. Gulf Between the Education of the Classes and Masses. It is
mainly tbe upper and the middle classes that are the beneficiaries of this s}stem. Sixty per cent of the
population (age 10 and over) which is still illiterate, has obviously received none of its benefits. Of every 100
children of six years of age, 70 drop out at an early stage, so that only about 30 complete class VIII. 70 per
cent of tbe seats in secondary schools and 80 per cent of the seats in higher educacation are taken by the top
20 per cent of income groups.
4. Regional Disparity There is a great disparity in the expansion of education in different States and regions.
5. Disparity in Women Education. Women education has greatly Jagged behind.
Transformation of the Education System
What the system needs, therefore, is drastic. overhaul: a transformation of its character, through the
introduction of a modern scientific outlook and other essential measures, to suit our national needs and
aspirations. It is in these main directions that educado_a! reconstruction in India will have to be vigorously
pursued in the years ahead.
Perhaps the most urgent and significant reform needed is to transform the value system. This
transformation will emphasize ethical values and human welfare enriched by science and te_hnology. It will
a:'o imply the shifting of emphasis from teaching to learing, from the individual to social objectives, and
from mere acquisition of information to the development of skills and character formation based on
knowledge. In the following pages detailed discussions have been made on the various aspects of educational
reforms in India.
PROBLEMS FOR DISCUSSION
1. Describe the main features of the system of education in Ancient India. Suggest a few feature1 of this
system which can be incorporated io the prescot system. .
2. State the;. chief .chac&cteristics of the education ,system during tlit Medieval India.
3. . Elucidate the merits and demerits of the educational system during the British rule in India.
4. What are the educational needs of free India?
Secret of Success: Team Spirit
What is the true_ measure of success, the outer accolades or the inner joy and peace?
Success can be external or internal. Externally, it is the measure of a job well done and the accompanying
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recognition from society. Internally, it is a feeling of achievement, satisfaction and fullness which comes on
the completion of a task or the fulfillment of a desire. What is a true measure of success, the outer accolades
or the inner joy and peace?
Success can also be measured by the degree of comfort we have with ourselves. This generally happens when
we live and act in accordance with our intrinsic nature. If we attain what we want and still find something
lacking then we know that either our desire was not desirable or the means . adopted were not
in accordance with nature.
Modem management theory proposes that a satisfied employee would lack motivation and so would not
benefit the company. But to say that dissatisfaction alone is the motivating force is a negative approach.
When people are positively satisfied they want to share their feelings of joy and contentment with others and
work for the welfare of others. Their motivational levels are higher than those of most people and the opposite
happens - they want to do even more and work more efficiently. This is the state of mind of a Mahatma.
Success should include or embrace all aspects of our life. Some professionals may be greatly. praised and
considered leaders in their respective fields but may be utter failures on the family' front. Some may be good
for the family but be unable to make any contribution to society.
We must be whole individuals, just as God intended us to be. Take the case of a mango seed that grew to be
first a plant and then a tree that gave the world sweet fruit. What did the seed do? It did nothing but. remain
true to its nature.
Why do people want success? Success is associated with fame, reaching the top; with perfection, wholeness,
joy and completeness. Success is an expression of our Self which is Supreme and perfect. We have this thirst
for success because we are that Supreme alone. We want to be great because we are great. Everyone wants to
be perfect, to win.
If we understand all its connotations, our success will not be dependent on anyone's failure or be gained by
pulling someone down. Our joy will not depend on the other's sorrow. We will be compassionate in the
suffering of others and experience true joy in their happiness.
After returning from Lanka Rama was asked how he won the battle and he gave credit to all those who had
helped him, including the monkey brigade. Real success lies in making others happy and giving credit to the
whole team. A true leader carries the team with him.
..,
When Hanuman returned from Lanka after locating Sita, he did not go directly to Rama to give him the
news. He collected all the other monkevs and included them in the successful competion of their mission.. So
that each one of them felt they had been equally involved in finding Sita.
God has made each one of us special and we must believe in our own uniqueness. When we imitate, the
message we are conveying to ourselves and the world is that we do not depend on our own selves. We must
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learn to believe in ourselves. If we imitate someone and achieve success, the success will belong to the other
person.
Secondly, we must be independent and do our own work. Seemingly insignificant actions, like tidying our
room, caring for our clothes or keeping a clean bathroom will set us on the path to independence.
Discuss the problems related to stress in Indian Corporates?
Stress is a disease of modern times. It afflicts people regardless of their station in life. Stress is present in the
lives of the rich and poor, literate and illiterate, men and women. Stress is, however, more evident and -is
probably more widespread in technologically advanced countries, and is common among highly qualified
professionals. Stress is of various kinds - physical, emotional and intellectual, and it is characterized by a
feeling of being burdened; of being unable to cope. At a physical level modern technology and facilities have
actually increased workloads' and decreased relaxation. Mobile phones and laptops have made it easy to carry
the office to the home. Emotional stress increases when there is disharmony and friction in relationships.
Unfortunately, the trend today is to take the easy way out - people prefer to break away from relationships
rather than repair them. Philosophical and intellectual tensions also add to the stress factor. The answer to
stress can be found in the very letters of the word, 'stress': 'S' stands for strength: Physical, emotional,
intellectual and spiritual. Physical and emotional weakness leads to irritability. A strong, healthy body
developed through proper diet, exercise and pranayama techniques helps reduce stress at the physical level.
Through satsang and appropriate learning gained therein, the mind can be strengthened. Love, compassion
and friendship are valuable strength-givers that help us cope with stress. The scriptures say that knowledge of
the Self cannot be gained without inner strength. Rabindranath Tagore, in a poem, prays to the Lord not to
remove all obstacles, but instead, he asks for strength to bear them. Before the start of the Mahabharata war
Arjun was seized with a bout of emotional weakness and he refused to fight the war. Lord Krishna rescued
him by giving him emotional strength.
-- 'T” stands for traffic control. We need to regulate and control our thoughts. We can cope with stress best if
our thoughts are orderly and -methodical. Unnecessary accumulation leads to clogging of the mind. The key
lies in being able to live one moment at a time. Eat while eating, work while working, leave the home at home
and the office in the office. Remember, however long we have to travel we can only take one step at a time.
Worrying only reduces efficiency and then even simple tasks cannot be completed correctly and in time.
'R' is for re-design. We tend to view life and ourselves through our own philosophy. A readjustment or
reorientation in this philosophy increases our capacity to bear heavier loads.
'E' stands for erase: The ego, anger, fear and jealousy are negative emotions that reduce efficiency, leading
to mental weakness, causing stress. Too much emphasis on the ego, or abrogation of doership is responsible
for increasing stress. Sri Rama asked Sri Hanuman how he was able to cause so much havoc in Lanka and yet
return unscathed. Hanuman disclaimed all responsibility. He said, "I did not do it, you did it through me".
There is a higher power or strength working through us. 's' is for sharing: Share your wealth, knowledge,
workload or anything else you have. By and large people do not know how to share or delegate. Lord Vishnu
as the manager of the world is the best example of delegation of work. Everything happens under his
stewardship but he remains free and at ease. The last but most important is the 'S' which stands for surrender
to the Lord. Free your mind from the weight of worries and become an instrument, adopting an attitude of
service. This attitude will ensure efficiency, success, and freedom from stress.
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INDIAN ETHOS FOR MANAGEMENT
WHAT IS INDIAN ETHOS FOR MANAGEMENT?
Indian ethos for management means application of principles of management revealed in our ancient wisdom
described in Upanishads and Gita. The following basic principles of management are as per Indian Wisdom
and insidht.
1. Each Soul is a Potential God
A human being has a soul, a spark of the Divine. The Divine besides in the heart of a person. The Divine
means perfection in knowledge, wisdom and power. Therefore, a human being has immense potential power
or energy for self-development. When the God Touch is there (in the form of Divine Grace), human efforts
can achieve even an, apparently impossible goal and convert the impossible into a reality. The partnership of
God and Man can bring about extraordinary or miraculous results. Only if man chooses willingly to
collaborate with God and actively participates in the affairs of the society by right action under his guidance
and grace. He can bring about not only personal development, harmony, happiness but also prosperity of his
own organization and the society without injustice to others. Of course, Divine Grace works only when your
self-help and self-efforts are maximum. God helps those who thus help themselves. When you become
helpless, God's grace and Help comes as a rescue boat in the form of Unseen Hand which is always behind
you. In this way you can achieve extraordinary results. God's grace is the power of God in man. This is the
unique resource in man. God provides the needed inspiration in man. He guides man.
Indian wisdom indicates that productivity of human being is more important than plant capacity. Hence,
management is helping ordinary people to produce extraordinary results. Modernisation of men is more
important than modernisation of plant.
2. Holistic Approach
Holistic approach in Managementis based on spiritual principle of unity. oneness, non-dual or Advaita
concept. Under this principal of unity, the universe is an undivided w/ho/e where every particle is connected
with every other particle. The Divine interpenetrates this Jagat like pearls on a string. Hence, entire Humanity
is ONE. Management must recognise Oneness of Humanity. Respect the Divine in all beings. See your own
self in all selves. It is said, "Do unto others as thou wish that others should do, unto you." This is the yoga of
the highest order. Management is called upon to follow whole-man approach to management and leadership.
Let the inner being or higher consciousness assume the managerial leadership to manage and lead
effectively and efficiently (by combining values and skills) your physical, vital, mental, intellectual entities.
Your inner being is the delegate of the Divine. It is a minute portion of the Whole. .
Such an integrated human personality of self-developed manager and worker can assure best and
competent management of any enterprise, involving collective works and efforts. The refined or higher
consciousness will adopt holistic attitude. It will bring out the. Divine in man. It will achieve perfection or
excellence in whatever sector you work. We shall achieve Peace, Harmony and Prosperity within and without,
i. e., in our internal world and in our external world simultaneously. This is the ideal of Indian ethos: 'Atmano
Mokshartham Jagat Hitaya cha' (For gaining perfection in individual life, as well as for the welfare of the
world.) This is the motto of the Ramakrishna Order founded by Swami Vivekananda. This is the message for
all managers and workers given by the Indian ethos for management. Under the holistic approach,
management will not exploit shareholders, employees, customers, society and nature.
Note: Knowledge means knowing creation or Jagat. Wisdom means knowing God, Creator. Wisdom is born
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of contact with the Divine. our indweller. It gives you balanced and pure mind.
3. Equal Importance to Subjectivity/Objectivity
Indian ethos for management distinguishes subject and object. Subject is subtle and intangible. Object is gross
or concrete, and tangible or visible.
We have the concept of the third eye, the eye of wisdom. It can see even that which the normal two eyes
cannot. It can see the intangible, i.e., invisible.
Human and ethical values or qualities such as courage, vision, social awareness, fearlessness, integrity,
pure and clear mind, truth, etc., are subjective, subtle and intangible concepts. These represent divine wealth.
Value-based management is essential, to combine subjective and objective phenomena. These subjective or
subtle qualities are as important as money, materials, machines, information or data as well as human skills.
Inner resources of human beings are more powerful than external resources. Japan could prosper in industry,
business and trade due to optimum ultilisation of inner resources. Japan does not have coal, mineral and
petrolieum. Fortunately India has adequate 'material and natural resources. Let us develop now
our human resources which have immense potential powers. Holistic and value oriented management based
on Indian wisdom alone can secure managerial effectiveness and quality of work life and work ethic. It will
also assure Total Quality management (TQM). Creator is subjective. Creation is objective. Insight i..e. creator
is more important than Outsight i.e.. creation. Our body. senses, intellect, mind, etc., are objective, seen,
tangible. But our soul atman is unseen, intangible. subtlest and
subjective. Hence, wisdom manager/worker is much more important and valuable than
knowledge manager/worker.
Therefore, manager must develop this third eye, 'Jnana Chakhu', the eye of Vision, intuition, insight,
foresight and such other divine qualities or values. This is the essence of Indian ethos for management.
Wisdom worker has an integrated personality. Man works in order to purify his mind and heart. To gain pure
and calm mind, work is the best means. The worker also gives benefit of his work to others and society.
4. Karma Yoga (Selfless work)
It is yoga of moral endeavour, self-less service to others. It brings about union of human being with the
Divine. Work is done as workship to the Divin'e in human beings who is also all pervading in the universe
(which is just a projection of the Divine). Gita evolves the moral and ethical theory of human conduct and
expounds the art of right living - the doctrine of duty with discipline and devotion without attachment to work
and agency (egoistic pride) and/or its results, i.e., fruits of work (Nishkama Karma). Do your duty without
ego and without calculations of gain or loss. The memorable words of Gita "To work only you have the right
(as an agent of the Divine dwelling in your heart) and you have no right to the fruits of the work. Let not the
fruits of action motivate you. Let not the fruits divert your concentration on work. Pour your heart and soul in
the performance of your assigned duty. Similarly, do not be attached to inaction also. You have no control
over future. Hence, do not waste the precious present in useless dreams of future hopes and fears of present
actions. Do your best and actively live every moment of the present with the firm belief that future shall take
care of itself. Concentrate your attention only on your present job. Develop the healthy attitude that fruit
(Karma Fala) is given to you as Prasadfrom the Divine. Accept it with Prasad Bhavana. Karma Yoga is a
golden means. It preserves the spirit of renunciation without abandoning activity.
It is a life of intense activity and serenity without selfish impulses.
Gita emphasizes that Swadharma (one's duty based on one's swabhava inclination and aptitude - on the work
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that falls to one's lot by virtue of one's placement in society) should be carried on for the general welfare of
society and as worship of Divine, as our offering to God. This call to work in the true Yajna spirit is an
exhortation to support and actively co-operate in the Divine's evolutionary design and to live with the mother
earth, safeguarding her grand ecological balance.
Why do I work?
(1) For my own salvation and personal growth; (2) For the good of the world (Jagat Hitai. Jagat Sukhai),
The joy _f action (to the karma yogin) is the inner joy of selfless service which helps him to riSe above his
little individual self by serving and respecting the Divine in all beings, 'seeing his own selfin all living souls.
The inner joy or ananda and the deeper sense qf fulfilment. according to Indian ethos is the highest bliss and
the goal of life as well as the motivating force.
People who work only for money making get enslaved by the yearning for getting more money by
exploiting others .(including nature), which also results in an utter, restlessness, tension, stress and strain,
secret fear and total loss of peace. If persons work for money, profit, and more profit, quality of life, quality of
work will be totally lost. Management will not be effective. Society will gain nothing. .
1. 'Nishkama Karma Yoga 'is the best route for self-developmel'l;t for managers and workers. Self-
motivation can assure your self-development. Aim at Bahu Jana Sukhaya. You grow and others also grow.
When everyone does his duty towards others, everyone's rights are automatically assured. Work is performed
without rag (passion) dwesh (hatr_d), garva (arrogance) and Kama (desire). We have individual development
and social good. This is the answer to the question 'why work'?
. 2. Social Good: The Indian ethos is for the individual selHo become aware, develop and contribute social
welfare by linking yourself to the cosmos. The Western approach has been strong in exploring the matter and
energy only, and conveniently forgetting society and ecology.
The Indian ethos and insight give equal emphasis on both spirit and matter. Both are interlinked and
enriched in the holistic approach so that individuals, society and nature can have harmony, happiness and
sound health as well as enriched quality of life. The Indians knew the secrets of effective management and
administration. Indians knew also two great truths of successful harmonious and happy life.
(1) The essential divinity of life can be used through self-development (by practice) for personal growth
and also Jana Kalyan (Social welfare) and Loka Sangraha (world maintenance).
(2) The holistic aspect of man and the universe indicates that you, I, and the entire nature are closely
interconnected and interdependent and the only law (Dharma) of life is service to others - "I cannot cheat you
and nature without cheating myself." If you work sincerely for the society, for your organisation, for the
Nature (not for your own pocket), you will really enjoy your life through harmony, peace and bliss. You get
sense of fulfilment also. Your image is bright.
Indian ethos of offering one's life and efforts and work for the good of others is very necessary today to
spiritualise the greed for wealth which is evident in the modem activities of production and business. Arnold
Toynbee, the Noble Prize winning historian writes "it is already becoming clear that a chapter which had a
Western beginning in business management will have to have an Indian Ending, when the world adopts rich
thoughts of Indian ethos and wisdom, if it is not to end in the self-destruction of the human race.
Karma Yoga for all: It must be noted that Karma Yoga is not only for the common man or worker but
also (more importantly) for the wise, e.g., the wisdom leaders and managers while practising Karma Yoga
should also engagelin work for the welfare of the society (Loka sangraha). Social life needs co-operation bf
all- the wise acts and the standard, the values. he sets up, the followers and others copy, So the manager,
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should act responsibly and set a good example. Action speaks louder than words.
ROLE OF KARMA YOGA IN OUR LIFE
Karma Yoga is a good pathway for:
1. Self-purification and self-development. 2. individual growth and welfare. 3. Collective growth and welfare.
4. Minimum play of passion, jealousy, hatred, greed, anger and arrogance. 5. Team spirit, team work. 6.
Autonomous management, minimum control and supervision. 7. Manager acts as mentor and facilitator. 8.
Self motivation or Inspirational motivation. 9. Perfection or excellence in products and services. 10. Skills
and values united. 11. All round happiness and prosperity. 12. Conflicts resolved by integration.
Note: The unique route of Karma Yoga is the best instrument of management for self development for the
welfare of organisation and for the society as well as environment.
5. Yogah Karmasu Kaushalam
Yoga means excellence at work. Seek to perform your assigned duty or work in an excellent manner.
Koushalam denotes doing work with devotion and without attachment: Such detached attitude enhances its
value and improves the concentration and skill of the worker . You work with smartness, determination and
ability . Your head, heart and soul co-operate with your hands. You do not hanker over the fruits of action.
You have no anticipation of reward, or personal gain. You become a tool of God to perform the work. Any
work carried out with full concentration, dedication and with all abilities that a person has, becomes valuable
and the worker also becomes valuable to others as well as to society. In total qualify management (TQM)
Karma Yoga and Y ogah Karmasu Kaushalam provide valuable contributions. Under this slogan we have
hundred percent motivation coming from within. The extrinsic incentives e.g., money, other perks, etc. playa
very minor role as motivators.
QUALITY OF WORK LIFE AND WORK ETHIC
1. Why Work? To purify my mind and heart and to become wise. To provide public benefit.
2. What is Work? To nurture each other. My work is a form of Yagna. sacrifice. I develop the spirit of
sacrifice. [t is a worship of the Divine.
3. How to Work? With the spirit of renunciation, i.e., Tyag and to serve others. I must work without self-
interest.
4. Spirit of Work: Excellence in work. Perfection in work and quality of output.
Note: 1. Non-attachment to results is the secret of how to work.
2. I give maximum concentration on producing perfect quality, My work becomes yoga.
3. I work for acquiring enriched mind and heart.
6. Co-operation
Healthy competition is a powerful motivator for excellence and success, especially business success. The
idea of cut-throat competition is founded on the concept of 'struggle) or existence' and survival of the fittest.
Indian ethos says that for human beings (not animals) the royal road is co-operation as a powerful
motive for team work. We are human beings having mind and power of discrimination. I
The Gita says: "By co-operation and mutual help all shall achieve the highest human welfare. Unity is
strength. Even in the holistic approach, we stress co-operation integration, synthesis and team-spirit for
extraordinary performance, for enduring harmony and peace, because in our heart's chamber is living the pure
consciousness of the Divine, i.e., Purnatman. Peaceful co-existence, harmony, not struggle, is the rule.
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Indian insight endorses this in the management of any enterprise. ..
Excessive competition at work can destroy many young people and our social life. Co-operation, united
efforts and striving for Success leads to all round prosperity and success in any field of human enterprise.
Indian ethos expresses this:
1. 'Paraspar Devo Bhava.' vapsyatha. '
Human being: Miniature Divine
Man carries within himself perfect power, perfect wisdom and perfect knowledge. All of us have these
potential qualities to become perfect being. It is said that Pumatva, completeness is our inherent birthright.
It one wants to possess the aforesaid divine virtue$, he must discover them and bring them aut by
intense sadhana or practice. He has to go in the depth of his being and discover this hidden treasure by: (1)
Introspection, (2) Concentration, (3) Contemplation, and (4) Meditation. As you think and aspire constantly,
so you become.
According to Sri Aurobindo 'All can be done if the God-touch (Divine Grace) is there.' Of course, our
self-efforts must be maximum. Then rest assured that help from the Divine comes to lift us as per our call and
prayer. We have a few glimpses of this in India even today. The question is are you prepared for such a big
change?
The divine qualities are identical at the centre, at the heart of all living beings having self-consciousness.
This implies that there is essential unity of all human beings. All of us have this potential energy to achieve
perfection, or purntwa. This unity or oneness in diversity indicates all consequences of solidarity, fraternity,
equality, etc., that follow from it. We have close interdependence, interconnection, and integration of human
beings, society. Nature and ecology. Therefore we need value-based, integrated and holistic approach, in our
work, in our self-management, and management of all resources - human as well as material resources:
The Views of the Divine Mother, Sri Aurobindo Ashram Pondicherry (with modifications)
Essential Features of Indian Ethos and Insight
1. The divinity of a human being is not merely a notion but a truth which can be experienced by a person
in the stillness of mind, I e., in absence of any thought. Hence, potentially one is divine, or a perfect being.
2. 'Balance' or equilibrium is the keynote of Indian thought. We have synthesis, harmony between the
dual concepts, e.g., desire and desirelessness, material discontent and divine discontent. Such opposites are
thought and worked out harmoniously. Spiritual and secular or worldly life are duly recognised. Even a king
can be the knower of the reality and lead both worldly and spiritual life.
3. The individual is taken as the central focus by Indian Ethos. He/she both are regarded as the foundation. If
you are good, the world is good. Such a thought ensures the wholesome quality of work life.
4. The divine element in the individual (as a core or substratum) is only a portion of the universal or cosmic
consciousness (pure consciousness). The sublime Indian concept offers a secure base for mutual trust, co-
operation, team work, living and working for the public benefit (and not exclusively for personal benefit) and
such noble smoothening ideas of organisational and societal life.
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5. The Indian ethos gives much greater emphasis on values, human and ethical. Knowledge is not power.
Character is the real power and wealth. Values must be combined with skills. Then only we can have
effective and efficient management and we can assure the quality of work life in the organisation and enriched
quality of human life.
6. Indian ethos is based on the Indian scripture: (a) Sruties (e.g., Upanishads, Gita) and Smrutis (the Puranas).
Indian thought provides eternal knowledge of creation, cosmos and man and recognises close interrelation
between spiritual and worldly life of a human being. This is called whole-man approach.
7. As per Indian ethos all work is worthy and honourable. This is called dignity of work. All work is
considered as a valuable means for purifying our mind and ego as well as for gaining money, power, fame and
name. Our daily life has a unique combination of materialism and spiritualism. Work is worship of the Divine
within and without. We are called upon to be constantly conscious of His Presence through all our actions. Sri
Aurobindo says: "Behave as if the Divine Mother was looking at you (as an observer). Indeed she is always
present." "Divine Mother is Divine Power or Shakti."
8. Indian ethos rarely speaks of rights and privileges of an individual. It emphasizes only duties and
responsibilities. Human existence is primarily to pay our debts to all quarters of the universe. Rightly
understood, it implies that in practice nobody's rights are ignored. They are automatically ensured, Thus
values, moral and ethical are given status in the human life and activities. Value-based education is needed.
9. Indian thought deals with two types of knowledge (a) knowledge of creation or world, (b) knowledge of
creator, i.e., Divine. What is one thing by knowing which everything else will be known? The answer to this
question is the knowledge of the Creator. This is subjective knowledge. It is known to you only in silence
through personal experience. It is not an intellectual knowledge. It is called wisdom. The wisdom is born of
contact with the Creator.
Character is based on divine values. The divine values are themselves based on wisdom. Therefore,
Indian thought regards wisdom as balance. Internalisation alone enables you to cultivate moral and ethical
values and improve your own character and quality as a human being. Manager with enriched quality of mind
and heart can have effective management. I
Management with proper combination of values and skills can assure the harmony and progress of their
own organisation as well as enable the society and the country to enjoy healthy development and growth. This
is the unique contribution of Indian ethos. Spiritual elixir in the field of management is necessary to achieve
secular or worldly goals without unfavourable consequences for society and The Mother Earth.
Enlightened management thought in big corporate management expressing top management's values and
attitudes in the mission or creed even in the U.S.A. and many other countries in the West can be found. We
want this in the managerial style in all levels of management and we would advocate all employees to be
deeply involved in preparing the mission, vision, values, plans and policies. Then only corporations or firms
will have credibility and character.
BASIC PRINCIPLES OF INDIAN ETHOS FOR MANAGEMENT
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(1) Immense potential energy and talents for perfection as human being has the spirit within his heart. (2)
Holistic approach indicating unity between the Divine, individual self and the universe. (3) Subtle, intangible
subject and gross tangible objects are equally important. One must develop one's Third Eye, Jnana Chakshu,
the Eye of Wisdom, Vision, Insight and Foresight. Inner resources are much more powerful than outer
resources. Divine virtues are inner resources. Capital, materials and plant & machinery are outer resources.
(4) Karma Yoga offers double benefit, private benefit, self-purification and public benefit. (5) Excellence at
work through self-motivation and self development is the best means of Total Quality Management. (6) Co-
operation is a powerful instrument for team work and success in any enterprise involving collective work.
Note: Principles of (EM are universally applicable. We need IEM in our management: (1) to develop
proper management pattern, (2) to assure all round growth in productivity, marketing, profitability. (3) to gain
worldly achievement and lead enriched quality of life together. (4) To synchronise private and public benefits.
The best management will be holistic and value driven united with skills. Such enlightened management can
meet all problems and challenges of life in the 21st Century. We need both emotional stability, mental peace
and harmony together with material abundance. This is not impossible. IEM leads to management by
consciousness.
INSIGHTS INTO INDIAN ETHOS (MANAGEMENT: A SADHANA)
Business need not be regarded evil, tainted and unethical. Business is sacred. It is a matter of attitude,
approach and level of management consciousness. One can do business, make money, earn profit, build up
property and even then it can be managed with due recognition to human and ethical values and respecting all
persons in the enterprise and in the society as human beings. Indian ethos demands subjective management
system.
(1) Management Attitude
Top management must have firm belief in values-oriented holistic management of business. The
management is called upon to meet expectation of all stakeholders, e.g., employees, customers, citizens and
shareholders and full fill the social responsibility. Profit is earned through service and satisfaction of all these
interested parties.
No one can calculate statistically the gains made through mental peace, harmony. self-contentment and
consolation. No amount of profit acquired through unfair business and trade practices can guarantee health,
happiness and harmony of all members of the organisation and the community. Let us recognise that 'Work is
worship. 'Manager is a sadhak or a worker devoted to his work as worship to the Divine.
(2) Humanising the Organisation
There are three aspects of humane organisation. (a) Inter-personal relations, (b) man-machine
equation and (c) inner management - mental and spiritual.
The core of an organisation is worker. Any person is a human being and then he may play any role
in life. As a human being, he/she is a complex personality with changing psychology. Hence, whole-
person approach is necessary to manage human resources and their multiple needs. Management
must develop human touch and humanised managerial style. Let us note that a good man of
character and wisdom is an invaluable asset of an organisation and the society.
An organisation can create best inter-personal relations based on promotion from within,
equality, autonomy, self-esteem and fraternal affection. Hierarchy should show greater human
concern in the entire life of the subordinate and operator. Unity, harmony and effective
communication can assure team spirit and team work in an organisation. Filial behaviour promotes
mutual understanding.
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(3) Interiorising Management" '
Self Management: The manager is first a man and then a manager. The manager should first
learn to manage and control himself. Without self-management and control, how can he manage
and control others? The first need is understand and know himself. This is a course in the
subjective system of management. Western management is based on objective system of
management. Indian insights want first system of subjective management and then only
management in objective terms can be perceived and practised.
Management of self brings about harmony and integration among the five members of your total
being body, vital, mind, intellect and soul. Now instead of mind and ego leading other members,
your phychic being, i,e., soul will act as the manager or leader of all members. Thus conflict among
the other four members can be resolved. This is called management by consciousness or self-management.
To manage your self is a difficult and challenging job. But with determination and self-effort it is feasible.
To co-ordinate and harmonise body-mind-intellect complex is the essence of self-management. Once
you manage and control yourself, to your own satisfaction, you will be able to manage and control
effectively your subordinates and workers. 'In fact they will also be tempted to follow your example and
would motivate themselves to develop self-discipline and self-control in their life. There would be much less
supervision, direction, bossing and control.
4. Self-introspection
Self-introspection: We have to embark upon self-study, self-analysis and self criticism to locate areas of
friction and disharmony. We should prepare a balance sheet of our own strengths and weaknesses, Our mind
and heart may indicate weak spots, By regular introspection we would fine;! out solution to problems so that
the concerned parts of our being can be persuaded and guided to play the desired role. We have to reduce or
subdue our ego. Of course, it would require patience and perseverance to tame the members of our being.
Introspection involves self examination of your own thoughts, feelings, emotions, sensations and
passions. Constant practice or sadhana helps us to discard unwanted traits and cultivate good values to purify
our mind and heart.
The master key is within: It is our innermind or consciousness. This instrument can help us to remove
our negative elements and welcome the entry of positive elements. Consult your own conscience.. It will offer
the best way to handle the conflict, differences or even chaos prevalent within. Right approach and attitude
should be: 'Others are right, I may be wrong.' This is the golden rule for self-management and self-education. '
5 Brain-Stilling (Decision-making in Silence)
Brain-Stilling: The Western management resorts to brain-storming, ie., loud thinking by managers for
decisions to solve management problems. The Indian Insight advocates a better alternative in the form of
brain-stilling. For rational and enduring decisions, silent mind is a much more effective medium to get sound
and lasting solution to all management problems.
A perfect Mounum (calm mind enjoying tranquillity) is necessary. It indicates absence of any thought
flow in the mind. Preferably manager should have a small room of silence attached to his office where he may
retire from busy life to meditilte in silence over the burning problems in case of need. Such facilities may also
be provided to the employees to retire in silence and seek solutions to their problems.
By this method the manager and his employees come into contact with the inner mind or higher
consciousness for arriving at proper solutions to their problems. They should be receptive to receive the
guidance through intuitive mind (immediate insight). Intuition means immediate mental apprehension without
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reasoning, usually through inspiration. Intuition provides the third eye, eye of wisdom. It gives you insight,
vision and foresight.
Based on consciousness, management is developed from 'within to without', i e., management of your
own self and then management of others. The consciousness or Chetana has two elements, awareness of self
and things, a will or force that makes the consciousness effective. Awareness and will power are always one
movement.
Inner resources are crucial than outer resources. Brain-stilling or meditative silence is the most reliable
method to discover solutions to problems and difficulties which cannot be tackled by reason. Manager retires
in peaceful silence. He identifies with problems. He searches for alternatives in the hushed heart, hears the
unuttered voice or word. In the hushed silent mind the higher consciousness acts and sends the message in the
form of intuition.
Your mind is illuminated. In this way decisions are made with the guidance of higher consciousness.
Even in science all discoveries and inventions are made through intuition. Remember that a higher and wider
consciousness opens its doors and communes our Soul in moments of silence when the lamps are lit and the
life's cherished guests are left out side. Our soul speaks. We hear what mortal ears have never, heard.
Meditative silence to secure guidance from within from pure intelligence is clearly Eastern Insight. Western
management philosophy relies more on objective thought. Our, managers should listen to this. Business
management is a Sadhana. Managers must cultivate genuine noble values.
(6) Step Back (For a While)
The stepping-back or drawing-back into yourself is another device of learning to go deep within and
look; you can remain quiet and call on the inner consciousness force and wait for a while for an answer. Then
you know exactly what to do. Remember, therefore, that you cannot receive the answer before you are very
peaceful. Practice that inner silence, make at least a small beginning and go on in your practice until it
becomes a habit with you. Once you enter into inner consciousness, you will know what true behaviour would
be, what true solution to a problem is, what true action is.
The stepping back from a situation for a while enables you to control and even master the situation. Such
withdrawing "from involvement helps you to receive right guidance or intimation from within, from your
inner self.
When your have a problem to solve, when you are caught in a difficulty, try this method, instead of
becoming agitated, turning over all the ideas and actively seeking solutions, of worrying, fretting, running
here and there inside your head ,- I do not mean externally - remain quiet, implore the light and wait for a
few moments for it to come. In silence, the solution comes very quickly and in silence you are able to hear it.
Never decide anything, never speak a word, never throw yourself into action, without stepping-back,
Note: It is always very good to practice silence for a few minutes at least twice a day. but it must be true
silence. not merely abstention from talking. Source.' 'Inner Peace', (Words of The Mother)..Sri Aurobindo
Ashram. Pondicherry.
(7) Self-dynamising Meditation
A dynamic meditation is meditation of transformation of lower consciousness into higher consciousness.
Hence we call it transforming meditation. It opens the third eye of Wisdom through insight. You may
meditate to open yourself to the Divine Force to receive its guidance to discover the points to be transformed.
viz.. baser or evil elements in your nature. i. e. your weaknesses and to trace out the line of progress.
You may meditate to reject your ordinary consciousness (your selfish and egoistic traits). You may
meditate for practical reasons; you have a difficult to clear up, a solution to find. a solution to a problem. you
want help in some action or other. you want to know how to face a crisis. a sudden change. you want to
reduce stress and strain which is inevitable in the current hectic life. Meditation helps to solve many complex
problems of management and organisation demanding higher consciousness.
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Behind our outer and lower consciousness. we have our true inner being, the centre of consciousness.
Through meditation. in a silent and calm mind. you are able to contact this centre or higher consciousness.
refer all problems of your life and when your mind is open and receptive to this higher consciousness, you
receive intimations in the form of intuitions gwiding you to form your right decisions and to solve your
problems and difficulties.. ,This is called consciousness approach to management. A process of 'Within-to-
Withput' management. The management and wor_ers must have absolute faith or trust on the Supreme's
Infinite Power. Our inner being has the true knowledge. It says, "I know, I cannot give reasons, but I know."
Its knowledge is spontaneous and direct. Please note that the Grace and the Help are there always. For all who
know that; in the last analysis, the Grace will never fail us. Sri Aurbobindo has assured us that "All can be
done when the God Touch is there." Faith and Sincerity are the twin agents of success
(8) Role of Intuition in Management
Intuition: Intuition is the act of coming to direct knowledge or certainty without reasoning or inferring. It
is immediate cognition by inner mind through inspiration, instant awareness, the little voice, within you which
you hear when your mind is silent, i.e., thoughtless. Fully developed intuition is efficient and effective for
taking prompt and sound decisions. It is fast and accurate.
Intuitive skills enable a manager to cope with confidence the fluctuating environment and rapid changes.
Firstly we must have faith in the power of intuition. What we, firmly believe, we can do. Faith is the pre-
requisite in decision-making based on intuition. People do not know how important faith is, how faith is
miracle, creator of miracles. .
Secondly practice leads to perfection. By consistent practice we can develop our capacity of decision-
making by intuition. We all possess intuitive capacity to the fullest. Dynamic meditation transforms our lower
consciousness into higher consciousness. i.e.. in the inner mind where we have silence. In the silent mind you
have flashes of intuition. New skills like intuitive abilities are in great demand in complex and fast -changing
environment. Intuitive mind reflecting quality of mind is much more important than mere data or information
for decisions on strategic matters. Intuition has the veto power. Intuition is more powerful than reason.
Feelings are born with us. Reason is developed later. In the 21st century, manager will face extremely
complex and turbulent environment. He will have to deal with changing world and a world force demanding
increasing use of intuition in strategic planning and strategic decision-making.
Till 1990, management approach relied on left brain style, i.e., logical analytical style and deductive
reasoning based on case studies and information. A new model on combination of left brain (analysis and
deduction) and right brain (contemplation. intuition and induction) is now popular. It is a blending of Western
and Eastern management concepts.
Management development programmes are now giving more emphasis on the training of intuitive right
brain skill, along with usual deductive analytical left brain skills relying totally on data for solving
management problems. The best mix of brain types ,and the personality types would provide the effective
team work and team spirit.
Managers with higher intuitive ability can be very suitable in management areas.,e.g., personnel, health,
public relations, advertising, marketing and crisis management. These fields demand creativity, imagination
and other right brain skills.
Those who possess higher intuitive ability and potential should actively develop right brain skills and
market their intuitive ability for improving their career and rise quickly to the higher managerial jobs in the
organisation. Top management members must have intuitive faculty. Exercise of mind-stilling and meditation
must be an integral part of management development programmes. These will have double benefit: (1)
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reduction of stress and strain, (2) development of right brain skills.
The aforesaid Indian insights should evoke a good response in a manager to the existence of a master-key
within functioning in a human being which can resolve all problems of management Even in a computerised
age, human being is necessary in decision-making.
Conclusion
In the scheme of management as per Indian ethos, the inner mind and the inner aspects of man are
emphasised and the inner being has to develop for manifestation in the physical. In the management process
consciousness is the approach, harmony is the tool and perfection is the aim, Success is not the only criterion.
For outward manifestation the inner consciousness or inner mind should be developed.
Faith and sincerity are the two needs of management philosophy. For prosperity in living, life aspects
should be prosperous, consciousness needs to be developed and the approach should be based on the right
attitude approach. The organisational hierarchy should be leaner and based on equality, trust, capacity and the
nature of the individual. Centralisattion of authority is meant to diffuse and decentralise functions and the
power to perform them,
In the daily routine of manager harmony in thoughts and actions and harmony in one human being with
another would be emphasised. Work through the human body is regarded as the best prayer to the Divine, but
that work must be done in the right spirit and with a right attitude. Everything is done in the most perfect way,
These are the views of the Divine Mother, Sri Aurobindo Ashram Pondicherry.
INDIAN WISDOM AND MODERN MANAGEMENT
1. Model of Man
In Indian Wisdom (philosophy, psychology), material and spiritual aspects of human existence or life are
given equal emphasis and there is very close interrelationship between worldly life and spiritual life. Both are
manifestations or expressions of the divine or pure consciousness.
The holistic approach of Indian Wisdom is needed for modern management to integrate matter/spirit, or
skills/values or object/subject Modern management must incorporate Indian ethos to perfect the turncated
model of man (stressing only material progress at any cost) and recognise man as a whole man to assure
wholesome human progress - spiritual as well as material progress - to satisfy the hunger of mind and soul as
well as the hunger of physical and vital human being.
Values-based holisti2 approach to management will assure such all round wholesome human
development and prosperity.
Western model of man and management could not give rich dividends, it is inadequate in solving all the
problems of modern society. Important concepts of Indian Wisdom and thought will enrich Western thought
and provide a complete set of idea for the management of organisations.
2. Managerial Organisational Effectiveness
Managers should liberally draw on Indian wisdom for achieving highest levels of excellence in
management and organisations. They can achieve both, the quality of work life and also the quality of output
of goods. We will have the excellence in managers' and workers' performance as well as their own spiritual
development, because management and workers would have values-orientation and also self management
through self motivation. We will have harmony, happiness, prosperity of managers and workers not only in
external life but also in their internal life. The people of the enterprise will also enjoy healthy and enriched
life.
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3. Globalisation
From 1990 onwards, the term globalisation has assumed unique significance. It indicates free market
economy all over the world. It also points out emergence of global brands with ISO mark under total quality
management Now we have global marketing competition, People in all countries with the help of satellite
communication tools would enjoy prompt inter-communication even in their daily transactions. This would
give us opportunities to discover our basic humanness as well as our cultural differences and heritage, This
opportunity can also help to know broader and higher levels of human consciousness. We would achieve
harmony and unity between material progress and spiritual evolution in our emerging global economy, Let us
develop global consciousness in our global society and economic development.
4. High Technology
High technology not only accelerates industrialization but also announces problems of an industrial
civilization. But high technology can be misused in the pursuit of the mindless pleasure of senses in a
materialist, high consumption society, In that case it could provide a handy instrument of control and
oppression.
However, if Indian wisdom is associated with modern management, high technology will give spiritually
evolved managers, statesmen and leaders in the society. a golden opportunity for a global dialogue to discover
the variety of worlds and bring about higher levels of unity across the human race. High technology can offer
assistance to the humanity to pursue its evolution rapidly and effectively under value-oriented management.
5. Ecology
Ecological crisis for mankind is a burning problem next in importance to corruption and crisis of values.
Indian wisdom knows that holistic approach by management alone can restore the ecological balance as
human beings and nature, are interdependent and interrelated. They are parts of the universal consciousness,
Fortunately marketers and business leaders of the world are coming together under the UNO to bring about
sustainable industrial development free from dangers of pollution rather than self-destructive, indiscriminate
exploitation of nature, Science and technology can help us in this right direction, though progress in this
movement.
Page no 44
2. Survey Method
Survey method is generally used where the purpose is to make short run forecast of demand. Under this
method, customer surveys are conducted to collect information about their intentions and future purchase
plan. This method includes
(a) Consumer survey method (b) Opinion Poll method
Co,nsumer survey method May be in form of
a) Consumer enumeration: - In this method, almost all the potential users of the product are contacted and are
asked about the future plan of purchasing the product in question. The quantities indicated by the consumers
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are added together to obtain the probable demand for the product.
b) Sample survey method: - Under this method only a few potential consumers selected from relevant market
through a sampling method are surveyed, on the basis of the information obtained. the probable demand may
be estimated through the following
D = HR (H.AD)
Hs
Where D = probable demand forecast
H = Census number of households from the relevant market.
Hs = number of households reporting demand for the product. HR = number of households reporting
demand for the product. AD = average expected consumption by the reporting households.
c) End User Method: - The end user method of demand forecasting is used for estimating demand for inputs.
Making forecast by this method requires building up a schedule of probable aggregate future demand for
inputs by consuming industries and various other sectors.
Opinion poll Method
The opinion poll methods aim at collecting opinion of those who are supposed to possess knowledge of the
market e.g. sales representative, professional marketing experts and consultants. The opinion poll method
include
a) Expert opinion method: - Firms having a good network of sales representative can put them to work of
assessing the demand for the product in the areas that they represent. Sales representative, beings in close
touch with the consumers are supposed to know the future purchase plans of their customer, their reaction to
the market changes. their response to the introduction of new products and the demand for competing
products. They are. therefore, in a position to provide an estimate of likely demand for their
_firm' s product in the area. The estimates of demand thus obtained from different
grons are added up to get the overall probable demand for a product.
b) Delphi Method: - Delphi method is used to consolidate the divergent expert Divergent and arrived at a
compromise estimate of future demand.
Under Delphi method the expert are provided information on estimates of forecast of other experts along with
the underlying assumptions. The experts may revise their own estimates in the light of forecast made by other
experts. The consensus of experts , about the forecasts constitutes the final forecast.
Although this method is simple and inexpensive, it has its own limitations. First estimates provided by sales
representations and professional experts are reliable only to extend depending upon their skill to analysis the
market and their experience. Second, demand estimates way involve the subjective judgement of the which
may lead to over or under estimation, finally, the assessment of market demand is usually based on inadequate
information's, such as changes in GNP, available of credit, future prospects of the industry etc, fall outside
their purview.
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c) Market studies and Experiments:- It is a method of collecting necessary information regarding demand is to
carry out market studies and experiments on consumer's behavior under actual through controlled market
conditions. This method is known in common parlance market conditions. This methods is known in common
parlance as market experiment method under this method, firms first select some areas of the representative
markets - three or four cities having similar features viz. Population, income levels, cultural and social
background, occupational distribution, choices and preferences of consumers. Then, they carry out market
experiments by changing prices, advt. Expenditure and other controllable variable in the demand function
under the assumption that other thing remains same. The controlled variable may by changed over time either
simultaneously in all the markets or in all the markets or in the selected markets. After such changes are
introduced in the market, the consequent changes in the demand over a period of time (a week, a fortnight or
month) are recorded. On the basis of data collected elasticity coefficient are computed. These coefficients are
then used along with the variables of the demand function to assess the demand for product
The market experiments methods have certain serious limitations. First, this method is very expensive and
hence cannot be afforded by small forms. Second, being a costly affair. experiments are usually carried out on
a scale too small to permit generalization with a high degree of reliability.
Third experimental methods are based on short - term and controlled conditions that may exist in an
uncontrolled market. Hence, the results may not be applicable to the uncontrolled long-term conditions of the
market.
Survey Method
Survey method is generally used where the purpose is to make short run forecast of demand. Under this
method, customer surveys are conducted to collect information about their intentions and future purchase
plan. This method includes
(a) Consumer survey method (b) Opinion Poll method
Consumer survey method May be in form of
a) Consumer enumeration: - In this method, almost all the potential users of the product are contacted and are asked
about the future plan of purchasing the product in question. The quantities indicated by the consumers are
added together to obtain the probable demand for the product.
b) "Sample survey method: - Under this method only a few potential consumers selected: from relevant market
through a sampling method are surveyed, on the. basis of the information obtained. the probable
demand may be estimated through the following
formula.
. .
n = HR (H.AD)
Where D = probable demand forecast .
H = Census number of households from the relevant market.
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Hs = number of households reporting demand for the product.
HR = number of households reporting demand for the product. AD = average expected consumption
by the reporting households.
c) End User Method: - The end user method of demand forecasting is used for estimating demand for
inputs. Making forecast by this method requires building up a schedule of probable aggregate future
demand for inputs by consuming industries and various other sectors.
Barometric Method
Many economists use economic indicators as barometer to forecast trends in business activities.
The basic approach of barometer technique is to construct an index of relevant economic indicators and to
forecast future trends on the basis of movements in the index of economic indicators. The indicators used in
this method are classified as
(a) Leading indicators: - consists of indicators which move up and down ahead of some other series e.g. new
order of durable goods, new building permits etc.
(b) Coincidental indicators: - are the ones that move up and down simultaneously with the level of economic
activity. E.g. number of employees in the nonagricultural sector, rate of unemployment, sales recorded by thy
manufacturing, trading and the retail sectors etc.
(c) Lagging indicators consists of those indicators, which follow a change after some time lag. E.g. lending
rate for short-term loans etc.
Development and allotment of land by Delhi Development Authority to Group Housing Societies (a lead
indicator) indicates higher demand prospects for cement, steel and other construction material (coincidental
indicators) and increase in housing loan distribution (lagging indicators).
Econometric method
The econometric methods combine statistical tools with economic theories to estimate economic
variables and to forecast the intended economic variables. An econometric model may be single
equation regression model or it may consist of a system of simultaneous equations.
Regression method
Regression analysis is the most popular method of demand estimation. This method combines economic
theory and statistical techniques of estimation. Economic theory is employed to specify the determinants of
demand and to determine the nature of the relationship between the demand for a product and its
determinants. Economics theory thus helps in determining the general form of demand function. Statistical
techniques are employed to estimate the values of parameters in the estimation equation.
Simultaneous Equation Method
It involves estimating several behavioral equations. These equations are generally behavioral equations,
Mathematical equations and Market - clearing equations. The first step in this technician is to develop a
complete model and specify the behavioral assumption rellardin2 the variables included in the model. The
variables that are included in the model are
I) Endogenous variables
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2) Exogenous variables
Endogenous variables - the variables that are determined within the model are called endogenous variables.
Endogenous variables are included in the model as depended variables that are the variables that are to be
explained by the model. These are also called controlled variables. The number of equations included in the
model must be equal to number of endogenous variables
Exogenous variables - are those that are determined outside the model. Exogenous variables are inputs
of the model whether a variable is treated endogenous variables or exogenous variables depend on the
purpose of the model. The examples of exogenous variables are “Money Supply”, tax rates, s, govt. spending
etc. The exogenous variables are also known as uncontrolled variables.
Page No-62
Characteristics of Isoquant Curves :
a) Isoquant have a negative slope :-An isoquant has a negative slope in the economic region or in
the relevant range .The negative slope of the isoquant implies substitutability between the inputs .It means if
one of the inputs is reduced, the other input has to be increased such that the total output remains unaffected.
Isoquant are convex to the origin : Convexity of isoquant implies to :
(i) Substitution between the inputs
(ii) Diminishing marginal rate of technical substitution (MRTS) between the inputs in economic region. The
MRTS defined as :
MRTS = -M / M = slope of the isoquant
i.e.. MRTS is the rate at which a marginal unit of labor can substitute a marginal unit of capital ( moving
downward on the isoquant ) without actually affecting the total output.
This rate is indicated by the slope of the isoquant. The MRTS decreases for two reasons :
(i) No factor is perfect substitute for another and
(ii) Inputs are subject to diminishing marginal return .Therefore more and more units of an input are needed to
replace each successive unit of the output.
PAGENO 63
Explain the types and characteristics of isoquant curves .Show with help of illustration. how will you
determine the least cost combination.
Ans.
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The term "isoquant" has been derived from the Greek word "iso"
meaning equal and Latin word "qualltus" meaning "quantity"..
The "isoquant curve" is ,therefore. also known as "Equal product curve" or "Production Intelligence Curve ".
An isoquant curve is locus of point representing
various combinations of two inputs - capital and labor -- yielding the same output.
Isoquant curves are drawn on the basis of the following assumptions :
(i) There are only two inputs, v 12, labor ( L ) and capital (K) tom produce a commodity X .
(ii)The two inputs - Land K - can substitute each other but at diminishing rate.
(iii) The technology of production is given.
Given these assumptions, it is always possible to produce given quantity of commodity X
with various combination of labor and capital. The factor combinations are so formed that the
.
substitution of one factor for the other leaves the output unaffected .The technology is presented
through are isoquant curve ( IQ, = 100) . The curve IQ, all along its length represents a fixed quantity, 100
units of product X . This quantity of output can be produced with a number of labor-capital combination.
For example:- Points A, B, C and 0 on the isoquant curve IQ, shows four different combination_ of inputs,
K and L , all yielding the same output - 100 units.
The movement from A to B indicates decreasing Quantity Of K and increasing number of L
.This implies substi-tution Of labor for capital such that all the input combinations yield the same quantity of
commodity X i.e.. IQJ = 100.
Assumes perfect compiementarily between K and L . The perfect templementarity assumption
implies that a given quantity of it commodity can be produced by one and only one combination of
K and L and that the proportion of the inputs is fixed. It also implies that if the quantity of an input is
increased and the quantity of the other input is hold constant there will be no change in output. The
output can be increasing both the inputs proportionality.
Lease cost combination:-
In order to determine the best combination of capital and labor to produce that output, one has to
know the amount of finance available to the producer to spend on the inputs and also the prices of
the input. Suppose that the producer has at its disposal Rs. 10,000 for the two inputs, and that the
prices of the two inputs as Rs. 1000 per unit of capital and Rs. 200 per unit of labor. The firm will
have three alternative possibilities before it .
a) To spend the money only on capital and secure 10 units of it .
(b)To spend the amount only on labor and secure 50 unit of labor
(c)To spend the amount partly on capital and partly on labor.
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The factor price line is also known as iso-cost line because it represents various combinations of
inputs that may be purchased for the given amount of money allocated.
The slope of the factor price line shows the price ratio of capital and labor Le.. 1:5 . By
combining the iso-quant and the factor price line. one can find out the optimum combination of
factors which will maximize output.
(c) Isoquant cannot intersect or be tangent to each other :
The intersection or tangency between any two isoquant implies that a given quantity of a commodity
can be produced with smaller as well as larger input-combination. This is untenable as long as marginal
productivity of inputs is greater than zero.
d)Upper isoquant represent higher level of output :
Between any two isoquant, the upper one represents a higher level of output then the
lower one. The reasons an upper isoquant implies a larger input combination, which in general, produces a
larger output. Therefore, upper isoquant indicate a higher level of output.
Other types of isoquant curve :
a)Linear isoQuant :- A Linear isoquant implies perfect subsitut -ability between the two inputs K
and L . The isoquant AB indicates that a given quantity of a product can be produced by using only capital
or only labor or by using both.
BThis is possible only when two factors K and L are perfect substi-tutes for one another. A Linear isoQuant
also implies that the MRTS between K and L remains constant throughout.
b)Fixed factor-proportion or L-shaped isoquant :
When a production function assumes a fixed proportion between K and L . the isoquant takes' L' shape .Such
an isoquant implies zero substitutability between K and L. Instead. it
Equal product curves lO1, IQ2 , and IQ3 represents output of 1000 units, 2000 units and 3000 units
respectively. AB is the factor price line. At point E the factor-price line is tangent to isoquant IQ2 representing
2000 units of output. Point E indicates the maxi-mum amount of capital and labor which the firm can
combine to produce 2000 units of output. The isoquant IQ3 falls outside the factor price line AB and therefore
cannot be chosen by the firm .
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On the other hand, Isoquant lO1, will not be preferred by the firm even though
between R and S it falls within the factor price line .Points Rand S are not suitable because output can be
increased without increasing additional cost by the selection of a more appropriate input combination. Point E
, therefore ,is the ideal combination which maximizes output or minimizes cost per unit, it is the point at which
the firm is in equilibrium .
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