Lessons from Application of Principles of Management @ NITIE, Mumbai

What the Principles of Organisation and Management course at NITIE was all about and my learnings from the course.

Job vs Entrepreneurship

Art vs. Maths

Entrepreneurship is like art. You are never sure whether it will yield the result that you have been looking for. The ending may turn out to be quite different than the way you had planned it.

Job is like Math. First, you concentrate on getting the right education, then look out for the job that enhances your professional experience. Then you work towards getting promotions till you reach the peak of career in terms of satisfaction and capability. The path is logical, traveled many times and like a simple math equation, parameters are few.

Certainty of pay check vs. none

Entrepreneurship is not really for people who cannot survive without pay check. The entrepreneur makes nothing for months, sometimes for years. She/he toils for what interest her than what pays immediately.

Jobs pay immediately. Within one month of taking a job, one starts getting salary in the account. It is usually fixed and certain.

Incremental vs. explosive

Entrepreneurship is difficult. But it can lead to explosive growth if worked through with patience. The explosive growth can make you rich and famous. Think Zuckerberg, Bill Gates, Steve Jobs and many others.

Jobs are logical increments over time. You start at the junior level and move on to become a senior. A few gets into higher levels. Salary increases consistently with every rise in position.

Passion vs. consistent track record

Starting own venture is about passion. You cannot think about consistency. There is none. Either you make it or you don’t. Your paintings sell or they don’t. Selling is important but passion is more important.

Job is about meeting deadlines consistently. Job is like going from point X to point Y without detour. People with jobs have to consistently meet expectations and in turn get rewarded with promotion.

Diversified vs. concentrated skills

Entrepreneurship is equal to being stranded on an island with a toolbox(sometimes not). You have to learn to design and create your own boat and then escape in it. You need to be multi-skilled if you want to survive.

Job is about getting better at the skill you obtained in your education in. More often than not you become an expert in your area. That is your bread and butter.

Creation vs. continuation

Entrepreneurship is about ideas, creation and developing something new, It is about solving problems in a unique way. It is about thinking out of the box. It is about targeting opportunities.

Job is often about continuation of same work and doing it in much better way. Creativity may be useful but is not necessary for survival. You need to do work on time. Organizations appreciate creativity but nurturing that it is not the priority.

Direct vs Indirect job creation

Entrepreneurs find and exploit opportunities that create thousands of jobs. They look for improvements and then utilize them to start companies that bring in more jobs.

People holding jobs indirectly create job. They take loans, buy houses, cars. This keeps money in circulation. Businesses invest to fulfill needs of job holders often creating jobs in the process.

Whole day vs. 9-6

Entrepreneurs often lose track of time. They work more than fifteen hours a day. They always have their plates full. They find it difficult to adjust to the demands of family and society.

People in job often work for fixed time and find enough time for their families.

Wealth creation vs. being rich

Wealth is different from richness. Wealth is when you have assets that generate income for you. Rich is when you get a fat salary to spend. Entrepreneurs generate wealth in long term. They may be rich but they are more wealthy than rich.

It is hard to create too many assets with job unless you have a very high paying job. Often people with job purchase two or three houses on loans and then call themselves wealthy. It is not true because they are not wealthy till they clear off the loan and start earning money from those houses.

Adaptability and flexibility

Entrepreneurs are survivors. They know how to survive in worst conditions because they have been there. They know how to utilize whatever they have to create business. They have to be flexible, need to learn new skills in order to get into new lines of business. Entrepreneurs can survive in recession and boom times.

People in jobs often find it difficult to adapt from one skill to another. If they lose their job, they are most likely to apply for another job in same area. Their chances of success depend on availability of such jobs and competition. Boom time brings untold money and happiness to job holders while recession is very disastrous.

Risk

Entrepreneurship is risky. You could lose all your money. You have to plan and move ahead.

Jobs have relatively low risks unless you are working in risky, hazardous job. Even if you lose your job, you will not lose a lot of money and often you will get similar job, maybe at lesser salary but still.

So which is better?

No one can answer but only you. It all depends on your drive, your capacity to take risk, the goals of your life. These are just a few pointers that help you decide.

Reference

Ashwini Kumar Saxena

Theory X and Theory Y managers

Summary

Theory X and Theory Y pertain to employee motivation and have been used in human  

resource management, organizational behavior analysis, and organizational development.

Theory X and Theory Y : Theories of employee Motivation

Theory X and Theory Y, created and developed by Douglas McGregor at the MIT Sloan School of Management in the 1960s, pertain to employee motivation and have been used in human resource management, organizational behavior analysis, and organizational development. They describe two very different attitudes towards workforce motivation. McGregor felt that companies followed either one of these approaches.

Description of Theory X

In this theory management assumes employees are inherently lazy and will avoid work if they can. Because of this, workers need to be closely supervised and comprehensive systems of control put in place. A hierarchical structure is needed, with narrow span of control at each level, for effective management. According to this theory employees will show little ambition without an enticing incentive program and will avoid responsibility whenever they can.

The managers influenced by Theory X believe that everything must end in blaming someone. They think most employees are only out for themselves and their sole interest in the job is to earn money. They tend to blame employees in most situations, without questioning the systems, policy, or lack of training which could be the real cause of failures.

Managers that subscribe to Theory X tend to take a rather pessimistic view of their employees. A Theory X manager believes that it is the manager's job to structure the work and energize the employee. The result of this line of thought is that Theory X managers naturally adopt a more authoritarian style based on the threat of punishment. Critics believe that a Theory X manager could be an impediment to employee morale & productivity.

Description of Theory Y

Management influenced by this theory assumes that employees are ambitious, self-motivated, anxious to accept greater responsibility and exercise self-control, self-direction, autonomy and empowerment. Management believes that employees enjoy their work. They also believe that, given a chance, employees have the desire to be creative at their work place and become forward looking. There is a chance for greater productivity by giving employees the freedom to perform to the best of their abilities, without being bogged down by rules.

A Theory Y manager believes that, given the right conditions, most people will want to do well at work and that there is a pool of unused creativity in the workforce. They believe that the satisfaction of doing a good job is a strong motivation in itself. A Theory Y manager will try to remove the barriers that prevent workers from fully actualizing themselves .

Many people interpret Theory Y as a positive set of assumptions about workers. A close reading of The Human Side of Enterprise reveals that McGregor simply argues for managers to be open to a more positive view of workers and the possibilities that create enthusiasm.

Conclusion

Though these theories are very basic in nature, they provide a platform for future generations of management theorists and practitioners to understand the changing dynamics of human behavior. Taken too literally, Theories X and Y seem to represent unrealistic extremes. Most employees (including managers) fall somewhere in between these poles. Recent studies have questioned the rigidity of the model, yet McGregor's X-Y Theories remain guiding principles to the management to evolve processes which help in organizational development. A mix of practices which ensure a healthy blend of systems and the freedom to perform at the work place is likely to motivate the employees more. 

Samsung Electronics

Founder - Lee Byung Chull

Headquarters - Samsung Town, Seoul South Korea

Origin

Samsung Electronics was founded in 1969 in Suwon, South Korea as Samsung Electric Industries, originally manufacturing electronic appliances such as televisions, calculators, refrigerators and washers.

In 1988, the company merged with Samsung Semiconductor & Communications.

Milestones

ØIn 2005, Samsung surpassed Sony for the first time to become the world's   largest and most popular consumer electronics brand

Ø In 2007, Samsung Electronics handset division overtook Motorola, making it the world's second-largest mobile phone maker

ØIn 2007, Brand Finance ranked SAMSUNG as the number 1 global brand in electronics.

ØIn 2009, Samsung overtook Siemens and Hewlett-Packard to take the No.1 spot as the world’s largest technology company.

ØIn the first quarter of 2012, the company became the highest-selling mobile phone company when it surpassed Nokia and also took pole position in smartphones with "brisk sales" of its Galaxy SII smartphone

Vision 2020

Samsung Electronics' vision for the new decade is, "Inspire the World, Create the Future.“

This new vision reflects Samsung Electronics’ commitment to inspiring its communities by leveraging Samsung's three key strengths: "New Technology," "Innovative Products," and "Creative Solutions." -- and to promoting new value for Samsung's core networks -- Industry, Partners, and Employees. Through these efforts, Samsung hopes to contribute to a better world and a richer experience for all.

As part of this vision, Samsung has mapped out a specific plan of reaching $400 billion in revenue and becoming one of the world’s top five brands by 2020. To this end, Samsung has also established three strategic approaches in its management: "Creativity," "Partnership," and "Talent."

Samsung is excited about the future. As we build on our previous accomplishments, we look forward to exploring new territories, including health, medicine, and biotechnology. Samsung is committed to being a creative leader in new markets and becoming a truly No. 1 business going forward.

Products

The company manufactures products in a number of categories:

• Television (LCD, LED, Plasma etc)
• Semiconductor
• Mobile Phones
• Home Appliances
• Digital Camera

Market Share

Financial Performance 2011

GLOBAL FORTUNE 500 RANK

Observations

Strengths

• Robust topline growth.
• Strong market position.
• Diversified business portfolio.

Weaknesses

• Fluctuating operating and net profits

      Opportunities

• Positive outlook for semiconductors.
• —Increasing mobile phone sales.
• —Growing Indian market.

     Threats

• Increasing raw material prices.
• —Intense competition.
• —Government Regulation.

Reason for Growth

Understanding Tomorrow’s Markets And Consumer

Connecting With Consumer Lifestyles 
Making Smart Choices That Grow Markets

Suggestions

——Company should adopt strict quality checks in order to maintain its quality and also try to improve it constantly.

—The distribution of the product should be timely and also adequate.
—Consumer’s research should be done at fixed intervals and as and when required so as to be in constant touch with the pulse of the masses.

Energy Reduction Activities

Energy Management System Trial Project Certification (KSA4000)
New International Energy Management Standard (ISO 50001)

Clean Energy

The company plans to invest 20 trillion KRW into green growth businesses, such as solar cell, LED, fuel cell, and geothermal power

Paper Management

Samsung Electronics recognizes that sustainable paper use is crucial for climate change mitigation and environmental protection.

——Eco-friendly 'shrink' packaging for washing machines

——Slim & Compact packaging design for LED TV

Social Contribution Programs

Reference:
www.samsung.com

3 Chinese Monks

This short movie is a beautiful adaptation of a Chinese proverb: one monk will shoulder two buckets of water; two monks will share the load, but add a third and no one will want to fetch water.


The film depicts the comparisons of the different attitudes of the three monks when staying alone, staying with one other, and staying with two others.

Overview of the story:

Scene 1:

There was a small temple on a mountain and a little monk in the temple. His daily routine was shouldering water, chanting sutras, knocking the wooden fish, adding water to the holy water bottle on the table honoring the Goddess of Mercy, and watching over the mice from stealing food at night. His life was smooth and comfortable.

Scene 2:

Soon after, a tall monk came. He drank half of the jar’s water as soon as he arrived at the temple, so the little monk asked him to fetch water. The tall one thought it was unfair for him to fetch water alone, so he asked the young one to do it together. They could only carry one bucket a time, and they would only feel content when the bucket was placed in the middle of the shoulder pole. Anyway, they still had water to drink in this way.

Scene 3:

Then, a fat monk came. He wanted to drink, but there was no water in the jar. The short monk and the tall one asked him to fetch water by himself. He carried a bucket of water, and drank it up immediately. From then on, nobody would fetch water, so they had no water.

Scene 4:

Everyone chanted his own sutras and knocked his own wooden fish. As nobody would add water to the holy water bottle, the plant in the bottle withered soon. At night, a mouse came out stealing, but everyone pretended not to see it. As a result, the mouse was so rampant that it knocked over the candle-holder and caused a fire. Only thus did the three monks make a concerted effort to put out the fire, and finally awaken. After that, they started hanging together and the temple never lacked water again. 

Management teachings from the story:

Ego

Ego has no place when you are working in a team, we saw that the arrival of a third monk prompts everyone to expect that someone else will take on the chore. Consequently, no one fetches water though everybody is thirsty.

An ego is a heavy weight to carry around if it isn't kept in check. This is magnified tremendously when you have two, four, ten or even more egos trying to work in a group.  This is then further magnified when you have two, four, ten or more groups/departments in an organisation or sports team.  Making sure the group or groups are all energetically aligned will become recognised as the future of group dynamics. Jealousies, envy, wanting other people to fail are real emotions that plague our teams and organisations. By correcting these issues a happier partnership and a more efficient, profitable work environment is observed.

Synergy

We saw in the story that when at night, a rat comes to scrounge and then knocks the candleholder, leading to a devastating fire in the temple. The three monks finally unite together and make a concerted effort to put out the fire.

A synergy is where different entities cooperate advantageously for a final outcome. Simply defined, it means that the effect of the whole is greater than the sum of the effects of the individual parts. Although the whole will be greater than each individual part, this is not the concept of synergy. If used in a business application it means that teamwork will produce an overall better result than if each person was working toward the same goal individually.

Every problem has simple solution

In the end the problem faced by 3 monks of bringing water to the temple from the river by going downhill was solved with a simple solution of building a pulley.

We can also relate it to job specialization, the whole work was divided into parts and each monk was doing his part.

How many times have you caught yourself saying that there could be no other solution to a problem – and that that problem leads to a dead end? How many times have you felt stumped knowing that the problem laying before you is one you cannot solve. No leads. No options. No solutions. 

Did it feel like you had exhausted all possible options and yet are still before the mountain – large, unconquerable, and impregnable? When encountering such enormous problems, you may feel like you're hammering against a steel mountain. The pressure of having to solve such a problem may be overwhelming.

But rejoice! There might be some hope yet!

With some creative problem-solving techniques you may be able to look at your problem in a different light. And that light might just be the end of the tunnel that leads to possible solutions.



First of all, in the light of creative problem-solving, you must be open-minded to the fact that there may be more than just one solution to the problem. And, you must be open to the fact that there may be solutions to problems you thought were unsolvable.

Team Work - Valley Crossing

What does it mean?

Three people have to cross a valley which is more than one step of the member and less than two steps. They have a long rod with sufficient length. They attempt to cross the gap with everyone holding on to the rod. As soon as someone is on the gap, he would hang from the rod and the other two members would take his weight. This way they can cross the gap. Also it must be noted that load distribution was effectively managed. Also, the role of one will depend on the role of another. Interdependence is crucial and should be maximum.

The figure shows that the Role of A = Role of B = Role of C. All the 3 members have equal risk involved, therefore confidence and trust in your team members is most important. If you lack trust, then your team cannot achieve what you aimed.

TEAM
T- Together
E- Everyone
A- Achieves
M- More

Management Lessons:

1. Efficiency and Productivity

The saying; "many hands make light work", is definitely a true one when it comes to teamwork. If you have a job that needs doing, having someone else there to give you a helping hand is obviously going to speed the process up - if you have a group of people, then the process will be quickened all the more.

Let’s say that you have a job that if you were to attempt on your own would take you, let’s say in the region of around 2 hours (for example). If you had one person helping you who didn't need assistance and worked at a similar speed to you, you could have the task done in an hour, 50% of the time. If you have three people helping you (four including yourself), you could have it done in half an hour, 25% of the time.

For larger tasks teamwork is essential, and it's through careful planning and team management that aids towards a healthy team, and where efficiency and productivity are relied heavily upon.

2. Support

When working in a larger team, support is going to naturally manifest itself. Support won’t always go out to every team-member, but on the whole, when a job is needed to be completed, a team will naturally encourage one another to help keep morale high.

When people know that they have the support and backing of a team, it's amazing what that individual can accomplish within the team.

3. Satisfaction

When you complete a job that takes effort and time, you will experience a feeling of achievement and satisfaction. When working with a team, this feeling is only enhanced. This is as you have people to share your achievement and happiness with. You can have some of the greatest achievements in the world but if you have no one to share them with, will you feel as good as having the chance to share those same achievements with a team, who took the journey with you?

4. Communication

When working in a team, communication will need to be established. If a team can't communicate - it can't and won't work. 

In a team, there are lots of different individuals from different walks of life, being brought-up in different environments. The individuals of any team will have varying personalities, and so working in close proximity with these different characters will get you used to how to communicate with them. As I'm sure you know, what may be okay to say to one person may not be appropriate to say to another. Working in this environment will help to round-off and develop communication.

5. Participation, involvement and confidence

Being part of a group where good team management is present will mean that tasks will be fairly and evenly distributed to all team members. When this is done, team members will feel like they are properly a member of the team, and when a team achieves what it sets out to achieve, then this feeling will only increase.

Also, by not being sidelined, there is a good chance that your confidence levels will increase as you are being treated equally alongside everybody-else in the group.

6. Innovation

When a team has gelled and is working effectively with one another, innovation will see an all-time high. It's not surprising to see a link between innovation and a good team. Two brains, or in a groups case, a group of brains are better than one - so take advantage of this.

In the end i would conclude by:

"Coming together is a beginning, staying together is progress, and working together is success." Henry Ford