Answer

ARIJIT,
I HAVE ANSWERED QUESTION ONE.
THE OTHER QUESTIONS ARE RELATED TO INDIA SPECIFIC,
AS I AM NOT CLOSE TO THE INDIAN SCENE
AND HENCE I CANNOT HELP YOU.

REGARDS
LEO LINGHAM
"For Management Movement to develop it is essential that there should be emphasis on participative
management." Analyze this statement in the context of present management scenario, citing examples.
PARTICIPATIVE MANAGEMENT DEVELOPMENT
PHASE 1 ---INITIAL STAGES
-lack of challenges.
-lack of job satisfaction.
-non driven work environment.
-lack of team unity.
-low morale
-stagnant productivity.
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PHASE 2 --- TRANSITION STAGES
-clearly defined goals.
-proper feedback
-supporting work environment
-team building
-use of communication skills
-creative strategies
-improved prduction
------------------------------------------
PHASE 3 --- CURRENT STAGES
-emphasis on performance
-thriving work environment
-team cohensiveness
-high morale
-innovative production.
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Participative management is a method, which gives employees responsibility, accountability, and authority
over their work. The method provides simple tools for employees to improve their work performance and
positively impact the bottom line. The process provides an environment to make employee needs known
and creates a vehicle for improved communication between all areas of the organization. What
differentiates this work is that people's recommendations are actually implemented and acted upon.
People solve their own issues and feel empowered within the process of doing so. Executives and
employees learn to redesign their workplace to be participative and self-managing. This does not mean
you do away with management. People are not asked to do things that they are not capable of
accomplishing. There may be training involved to improve skill sets. This does not resemble laissez-faire
management in any way. Managers and employees look at a piece of work and ask what roles and
responsibilities need to be placed within the boundaries of the work in order to achieve individual and
organization goals? The idea is to allow as much responsibility, accountability and reasonable authority to
people actually doing the work. Participative management addresses the criteria for superior
performance. These criteria have been researched, field-tested, around the world and their validity has
been proven in many work settings. Participative management creates a workforce that is committed to
obtaining positive results for the organization such as increased productivity and improved quality. People
are engaged and motivated and are willing to put forth energy to improve work performance. Participative
management works best when the organization has a clear and compelling mission and vision.
Employees then can align their personal mission and vision to the organization.
Participative management has clear goals and does not turn over the organization to employees. There is
still a hierarchy but it is not a dominant hierarchy, which dictates everything to employees. A non-dominant
hierarchy has as many levels as are necessary to do the work of the organization. People have clear
roles and responsibilities and manage themselves as much as possible. Management tells people what
the strategy is and what is expected in terms of results and then allows people to figure out the how to
deliver on management expectations. Top management still decides strategy and front line employees still
focus on their primary tasks. The difference is that the criteria for superior performance are utilized and
leveraged for the success of the organization. The criteria for superior performance are drivers of
behavior, reasons why people get up in the morning and are enthusiastic about their work. Pay is
considered a satisfier all things being equal. The criteria for superior performance are:
Control
Learning
Variety
Mutual Support and Respect
A Promising Future
Engage one or several of their preferred life interests
Challenges that match and stretch individual skills
Concentration and Focus
Fun
When the criteria for superior performance are leveraged in an organization the performance will
dramatically improve. This has been demonstrated over and over again in thousands of organizations all
over the world.
Management in most organizations is constantly attempting to get people more involved in improving the
organization. People run up against a brick wall because of the bureaucratic structures that still exist in
their organizations. This occurs even after many attempts at improvement. Management has not made it
to people's advantage to participate, communicate, and share what they know with teammates. Why
participate and give ideas for improvement when they are disregarded and not rewarded. People will
always do what is in their best interest. If the stated culture of the organization is one thing and the actual
behavior of management is not congruent with how management behaves, then people do not trust what
is communicated by management. People are very resourceful and learn to survive in any culture.
Management can attempt to dictate results and people will do what is required of them to meet the very
minimum of expectations in this kind of environment. They will rarely do excellent work. The majority of
people want to do good work yet the work structures they find themselves in do not reward good work.
When you are competing within an organization to get a raise or a promotion and you have to impress
your supervisor you will not share important information with your team members. It is not to your
advantage to do this because you are not paid and rewarded to do so.
So how we structure work, pay for work and appraise work has to change. Participative management
makes it to people's advantage to share their knowledge because when their team is successful they are
successful. The group excels because the criteria for superior performance are being applied and top
management sees the benefit of all employees contributing to the organization. They want to
acknowledge a resource they already pay for their people.
Participative management enables organizations to improve performance through a fast, an economical
method called the participative design workshop. It clearly states that the design principle underlying the
work is a participative method that has clear goals and simple tools for work process improvement.
It can be utilized to improve the structure of the organization or just for work process improvement. This
will depend on the needs of the organization. The workshop begins with the assessment phase, which
begins with briefing one. Briefing one is a short presentation of the bureaucratic design principles and its
inverse relationship to the criteria for superior performance. Participants fill out the criteria for superior
performance and the skills assessment matrix. The design phase begins with briefing two which is an
introduction to the participative design principle and why it leverages the criteria for superior performance.
It explains why organizations perform better using these methods. Groups chart their current work
process or work flow and flag areas for improvement. They are given clear boundaries in which to work by
management. Next, they design improvements for the areas that are deficient and negotiate with
management on what is possible to change within the work process. If management wants structure
addressed then the group can tackle this issue as well. The workshop gets excellent results even without
addressing the issue of organizational structure.

Resistance to the Participative Management Process

Whenever there is change we can expect resistance to the process. Many people do not welcome
change even if it is in their best interests. People do not want to lose power and control. It is the fear of
the unknown that causes problems for people. Wilfred Bion's work on group process, or what he calls
fight or flight behaviors, or dependency is constantly at play in most bureaucratic organizations. Most
organizations are still in part bureaucratic. People will either fight or run away and these behaviors can be
very subtle in nature. A question to ask is what does the person acting out perceive they have to lose if a
new initiative takes root?
An effective method for managing this type of situation is to reassure the person or group that the change
is for the best interest of the organization. From our facilitation experience, all stakeholders are likely to
reap tangible and intangible rewards. A top manager that is interested in having a successful Participative
Management initiative will be on the constant look out for sabotaging behaviors from threatened
individuals. Another behavior to be on the look out for is pairing. Threatened individuals will want to pair
up with another individual or one who he/she perceives has power and attempt to inhibit the new
participative initiative.
Examples and possible results using participative management...
Results using Participative Management at a Manufacturing Plant were dramatic. Mr. Daniel reports the
situation at QuietFlex has dramatically improved. Workers in one department have been able to increase
production from 2500 lbs per hour to 4000 lbs, and continue to progress. In the meantime, scrap and
reject have been reduced dramatically. Safety has greatly improved, since the work redesign. People's
ability to participate has greatly improved the speed and quality of production.

If organizations want to create an environment where people give their best and create positive results
then Participative Management is a useful and practical tool. These are methods that honor people and
the creative talent they have to offer. With Participative Management, all stakeholders, management,
employees, clients and the community, win.
Participative Management
Participative management is a new approach in the work force today. Job enrichment, quality circles, and
self-managing work teams are just some of the approaches. Companies share a common goal of
increasing employee involvement. They want to raise the quality, performance, and productivity of their
workers.
The questions ---What is participative management? What are the advantages of participative
management? How does it raise quality, productivity, and performance? How can it be successfully
started, implemented, and sustained? What are the results of experiments done in the work force?

Participative management is a process by which a company attempts to increase the potential of its
employees by involving them in decisions affecting their work lives. A distinguishing characteristic of the
process is that its goals are not simply acquired, they focus on the improvement of productivity and
efficiency, but they are also fulfilling and self-enhancing in themselves. The key goals of employee
involvement programs is to enhance the quality of the employees’ working life, management must be
responsive to the requests of the employees. The best way to ascertain those requests is to ask
employees.
If workers can be motivated and given the opportunity to participate in the search for improved methods of
job performance, and if this motivation and participation can be maintained over time, job performance
should improve.
Productivity is higher in companies with an organized program of worker participation. Employee
participation can and does raise productivity. The most appropriate form will vary from company to
company but participation works only when both parties want it to work.

What Participative Management is NOT.

1. It is not permissiveness. PM holds people responsible.
2. It is not weakness. PM takes character to apply.
3. It is not involvement in trivia. Only significant decisions should go through the
PM process, however, what one person sees as trivia may be very important to an
other.
4. It does not mean giving up authority. We don’t give up authority, rather we
delegate authority with matching amounts of responsibility and accountability.
5. It does not mean giving up all decision making. We delegate only the amount
of decision-making that we think is appropriate under the circumstances. Delegated
authority may require a person to recommend action rather than take action.
6. It does not mean postponing action. PM should occur quickly and avoid con-
stant fixes.
PARTICIPATIVE MANAGEMENT MEANS Sharing Authority through delegation .

The Sharing (Delegating) Process:

Responsibility + Authority + Accountability
Negotiate the Following Steps
1. Goals: We start with the end in mind.
2. Guidelines: We negotiate parameters, history, policies, boundaries, etc.
3. Resources: We negotiate the money, equipment, supplies, human resources, time, and
authority available.
4. Accountability: We negotiate what information will be tracked, how, when, and to
whom it will be reported.
5. Reward: Unless there are special spifs, bonuses, or incentives, rewards usually include
good reviews, higher raises, greater opportunity for promotion, greater authority, etc.

Skills Required for Participative Management

1. Interest and concern. Some people prefer to be told what to do.
2. Recognize and enhance talents in others. Some people fear they will lose power if
they build others.
3. Recognize and work around weaknesses in others. Some people are so irritated
by deficiencies of others that they can’t they can’t recognize and work with their
strengths.
4. Communication—particularly listening. We often would rather
inform than become informed.
5. Conflict resolution. It is easier to create a conflict than to
resolve one. It usually requires forgiving others—something
most people don’t do well.
6. Self-control. Getting the best out of others requires control-
ling our selves—our habits, anger, self-serving tendencies.
7. Negotiation. It can seem difficult to negotiate when we
already have the power to simply decide and act.
8. Compromise. We often must compromise short-term personal or departmental goal
to achieve a company goal or help another achieve a personal goal.
9. Synergy. The PM process relies on the belief that 1 + 1 = 3.
10. Teachability. When the team answer is different than our preconceived desire we must
learn from the team.
11. Flexibility. We must learn from others and then implement the better alternatives.
12. Correction. The PM process constantly makes it clear that, “I was mistaken,” “I didn’t
think of everything,” “I wasn’t considering another’s viewpoint,” etc. Most people don’t
like this process.

The concept of control is generally replaced by

the concept of self-control and accountability.

The word manage is generally replaced by the words

lead, encourage, persuade, lift, serve, help,
understanding, and inspire.

The words negotiate and review and discuss and decide

replace words like orders, inform, tell, assign, direct, and require.

The attitude of negotiation is encouraged by phrases like.

We are thinking… It seems to me… I was wondering…
I don’t know but… What if… How about…?
What would happen if we were to do _____?
Let’s brainstorm…Let’s think outside of the box.

The word I is generally replaced by the word we.

Benefits of Participative Management
1. Increase Productivity (Effectiveness and efficiency)
2. Better Decisions
3. Employee Morale
4. Improved job satisfaction
5. Greater Commitment
6. Faster Adaptation to Change
7. Greater trust
8. Better Communication
9. Better Teamwork
When might it be better not to use PM?
Will Participative Management Work Here?

Participative Management Fact File

The complexity of challenges faced by today’s organisations is increasing.

Such challenges are best met through releasing the collective wisdom of people within an organisation.
Participative management processes bring the collective wisdom of others to bear.
Participative management is linked to to higher levels of organisational productivity, particularly when the
issues are relevant to staff interests.
The success of solutions and strategies often requires commitment not just compliance from staff.
Participative management processes increase the commitment of those responsible for implementing
decisions.
Participative management processes can help build and maintain good morale within a team.
Key participative management processes include group problem solving, group decision making,
consultation, meetings and delegation.
Participative management processes are time consuming, even when done well. You need to ensure they
are genuine and that the result is worth the time and effort of all concerned.
Participative management processes do not mean anything goes. Polarization of efforts can stall progress
and negatively impact on performance. Leaders need to be active in their participative management of
staff.
Participative leaders clarify, organise, facilitate, listen, reflect, inquire, advocate, advise, coach, hold high
expectations, call poor behaviour and follow through.
Enhancing your ability to use participative management techniques can enhance the commitment,
motivation and performance of your team

3) a) Explain the reasons for the growth of private sector.

b) Discuss the problems faced by the private sector.

The phenomenal growth of private sector of India can be attributed to

- political will,
-financial reforms,
-usage of more advanced technology,
-young and large English speaking working class.
The 7-8 % of annual GDP growth rate India is the one of the highest growth rate in the world. The last 15
years witnessed a phenomenal rise of the growth of private sector in India. The opening up of Indian
economy has led to free inflow of foreign direct investment (FDI) along with modern cutting edge
technology, which propelled India's economic growth.

Previously, the Indian market were ruled by the government enterprises but the scene in Indian market
changed as soon as the markets were opened for investments. This saw the rise of the Indian private
companies which prioritized customer's need and speedy service. This further fueled competition
amongst same industry players and even in government organizations. Further, the government of India
also divested some of its enterprises to ensure smooth operation of these companies which was
otherwise were loss making. It also went further and forged joint venture private Indian companies,
especially in sectors like, telecommunication, petroleum, housing and infrastructure. This inculcated
healthy competition and benefited the end consumers, since the cost of service or products come down
substantially.

MEDIUM grade private Indian companies are also offering lucrative and competitively priced products or
service, whose quality is at par with A grade companies. Big players of Indian markets have been forced
to lower their price bands to remain alive in the competition. Further, these big private Indian companies
are offering mouth watering benefits in the form of gifts, rebates and even holding lucky draws to stay
ahead in the race of 'market supremacy'. Gone are the days when 'brand loyalty, accounted for big
customer base. Today, general Indian customers are trendy, flexible and are extremely flexible with their
choice. Steady growth of private sector has sent a sense of urgency and insecurity amongst main market
players. Defensive methods of protection of Brands against competitors are becoming popular. Legal
instruments like patents, trademarks, industrial designs and copyrights filing has increased many fold and
so is counter claim and litigation. Further, Mergers and Acquisitions, collaborations and licensing has
become a popular amongst private Indian companies.

The best thing that has happened to the overall Indian market with the growth of private sector is that it
has helped to shed bureaucracy and lengthy official process and supplemented it by customer eccentric
service, good work ethics, professionalism and transparency of accounts.

Some positive effect of the growth of private sector in India are as follows -
Manufacturing registered 11.9% growth
The passenger vehicles sector grew by 11.61% during April-May 2007
Electricity, gas & water supply performed well and recorded an impressive growth rate of 8.3%
Construction growth rate rose to 10.7%
Trade, hotels, transport and communication registered a growth rate of 12%
Financing, insurance, real estate and business services recorded an impressive growth rate of at 11%
during the 1st quarter of this fiscal
Exports grew by 18.11% during the 1st quarter of 2007-2008 and the imports shoot up by 34.30% during
the same period
The food sector is estimated to be of US$ 200 billion and it is expected to grow to $310 billion by 2015
Merchandise Exports recorded strong growth
====================================
Fostering entrepreneurship: Some specifics

• Identify and dismantle barriers to competition which limit the

incentives of enterprises to innovate and perform more dynam-
ically.
• Examine whether current regulations governing financial insti-
tutions and/or financial markets inhibit or facilitate the availabil-
ity and optimal allocation of finance for entrepreneurial activities.
• Allow scope for flexible employment contracts to be negotiat-
ed, with remuneration arrangements and working conditions
that are well adapted to the needs of dynamic enterprises.
• Relax employment protection measures that inhibit restruc-
turing or discourage firms from taking on new workers.
• Examine the cost of complying with government-imposed
administrative or regulatory requirements and identify where
reductions could be made.
• Examine the overall effects of the tax system on entrepre-
neurship,and identify features that discourage entrepreneurs or
the financing of entrepreneurial activity; ensure that the tax
system is transparent and that compliance is straightforward.
• Review and simplify the registration procedures required to
create a business and ensure that firms are able to close quick-
ly should they wish to.
• Ensure that personal bankruptcy legislation provides an appro-
priate balance between encouraging risk-taking and protecting
creditors.
• Examine the effects that social insurance provisions may have
on encouraging or discouraging would-be entrepreneurs.
• Avoid policies that stem from too narrow a definition of entre-
preneurship (e.g. that entrepreneurship is only about startups
or only about high technology) and which may divert attention
from getting the broader economic policy settings right.
• Widen the target population for entrepreneurship programmes
to attract the participation of women,the young and minorities.
• Undertake regular and comprehensive evaluation of pro-
grammess, and ensure that evaluation findings are acted on.
A large informal sector can be a significant indication
that the regulatory costs imposed on business are too
high and inappropriate

OTHER FACTORS, WHICH CONTRIBUTED WAS

THE ENCOURAGEMENT OF ENTREPRENEURSHIP.

1.FACTORS INTERNAL TO THE INDIVIDUAL.

-ENCOURAGEMENT of ownership of responsibility
-ENCOURAGEMENT of individual determination
-ENCOURAGEMENT of sustainablility.
-ENCOURAGEMENTof strong desire to do something independent in life.
-ENCOURAGEMENTof technical knowledge
-ENCOURAGEMENTof manufacturing experience
-ENCOURAGEMENT of business exposure.
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2.FACTORS EXTERNAL TO THE INDIVIDUAL.
-REMOVING Discrimination particularly against people outside the community [ CASTE ETC]
-SPREADING entrepreneurial firms TO DIFFERENT locality.
-ENCOURAGING local state Government regulations .
-REMOVING Liquidity constrains
-EASING Credit access
-REMOVING limits on the amount an entrepreneur can borrow.
-ENCOURAGING of business information
-REMOVING local government corruption
-ENCOURAGING financial assistance from institution sources.
-EXPANDING accommodation in industrial estates.
-INCREASING THE hire-purchase machinery.
-IMPROVING attitide of the local government.
-ENCOURAGING financial assistance from non-government source.
-encouragement from big business.
-IMPROVING of demand
-IMPROVING / sufficient margin
etc etc