Saturday, September 15, 2007
Saturday, August 18, 2007
Business and Government Lecture -1
What is Business?
Any Economic activity carried on with the object of earning a return on income i.e. profit is called business
Characteristics
-Dealing in goods and services
-Production and/or exchange
-Regularity of transaction
-Profit Motive
-Element of risk
Risk
-Risk arises out of uncertainty
-Uncertainty takes place because of
Changes in technology
Changes in consumer tastes, habits and fashions
Shortage of raw materials, power, fuel etc
Change in market competition
Wrong management decision with regard to management control and other resources
Changes in socio-economic-political condition
Natural Calamity
Risk & Uncertainity
-Key to turning poor countries into rich ones
-Creating public institutions having ability to convert uncertainty into risk
-Uncertainty is imprecise knowledge about potential future events
-Risk is uncertainty that can be systematically assessed---- I.e.
measured
priced ----- and, most important…
shared (Capital & Collusion by Hilton Root)
Environment
-Environment is the framework within which business operation takes place
-Two broad heads
Indogenous environment is the firm or unit specific
Exogenous environment are external factors which influence the operation of business
Exogenous Environment
Exogenous factors could be further classified into
-Domestic
-Political
-Economic
-International
Any Economic activity carried on with the object of earning a return on income i.e. profit is called business
Characteristics
-Dealing in goods and services
-Production and/or exchange
-Regularity of transaction
-Profit Motive
-Element of risk
Risk
-Risk arises out of uncertainty
-Uncertainty takes place because of
Changes in technology
Changes in consumer tastes, habits and fashions
Shortage of raw materials, power, fuel etc
Change in market competition
Wrong management decision with regard to management control and other resources
Changes in socio-economic-political condition
Natural Calamity
Risk & Uncertainity
-Key to turning poor countries into rich ones
-Creating public institutions having ability to convert uncertainty into risk
-Uncertainty is imprecise knowledge about potential future events
-Risk is uncertainty that can be systematically assessed---- I.e.
measured
priced ----- and, most important…
shared (Capital & Collusion by Hilton Root)
Environment
-Environment is the framework within which business operation takes place
-Two broad heads
Indogenous environment is the firm or unit specific
Exogenous environment are external factors which influence the operation of business
Exogenous Environment
Exogenous factors could be further classified into
-Domestic
-Political
-Economic
-International
Business and Government Lecture -1(contd)
Finally
Business and society cannot be separated. Business is dependent on society for its existence. It must satisfy societal needs both economic and social
BUSINESS AND GOVERNMENT – AN OVERVIEW
Business : An Economic Activity
Economic Activity : Provider Taker value for both value expressed / measured through price in monetary term.
Economic Activity is driven by Society
Society is driven by :
• Technology
• Innovation
• Change
Examples :
CONNECTIVITY –
Ship – Improvements through Technology
Rail -
Automobile –
AIR –
Satellite –
Computer –
Telecom – Mobile – Broad banding
NANO
Innovation : Application in commercial use
Container –
Change : Taste / Attitude
Polson – Amul
Stale Cream to Fresh Cream
Salt and Colour – Yellowish
Society determines Governance pattern
( Constitution )
Outcome of Technology
World has come closer – Global Village
Economic activity has changed from local / Regional / National to Global
Economic activity governed by
Efficiency
Competition
Convergence of Business And Government
But In India, Government has an added responsibility
Welfare Society
Laissez Faire versus Government control
Marketing Economy versus Command Economy
Capitalism versus Socialism
Economic Activity : Provider Taker value for both value expressed / measured through price in monetary term.
Economic Activity is driven by Society
Society is driven by :
• Technology
• Innovation
• Change
Examples :
CONNECTIVITY –
Ship – Improvements through Technology
Rail -
Automobile –
AIR –
Satellite –
Computer –
Telecom – Mobile – Broad banding
NANO
Innovation : Application in commercial use
Container –
Change : Taste / Attitude
Polson – Amul
Stale Cream to Fresh Cream
Salt and Colour – Yellowish
Society determines Governance pattern
( Constitution )
Outcome of Technology
World has come closer – Global Village
Economic activity has changed from local / Regional / National to Global
Economic activity governed by
Efficiency
Competition
Convergence of Business And Government
But In India, Government has an added responsibility
Welfare Society
Laissez Faire versus Government control
Marketing Economy versus Command Economy
Capitalism versus Socialism
INDIA PERSPECTIVE
•1947 Independence
•1951 Planning
•1956 Industrial Policy Statement
•1969-1974 Move towards Socialism /
Internal Emergency
•1977 Change in Power Structure
•1984-1990 Economic downturn
•1991 Process of reform / Liberalisation / Globalisation / Privatisation
•1999- First Coaliation Government – NDA
•2004- Coaliation Government UPA
Common minimum programme
Within overall Policy of Liberalization ideological stand takes a major role
Retail
SEZ
FDI Holding
Public Sector
Conclusion :
To operate in a corporate setup. General understanding of operation of Economic and Political forces in required.
Friday, August 17, 2007
leadership-part2
The Contingency Model for Leadership
The contingency model links the situation with the concept of task and relationship in the leader-subordinate role
The Contingency Model for Leadership
There are three elements of the leader-follower contingency model developed by Fred Fiedler:
Ø Position power – the degree to which a leader’s position ensure compliance.
Ø Task structure – the degree of clarity for goal accomplishment.
Ø Leader-member relations – the nature of relationship between the leader and the members
Situational Leadership by Hersey and Blanchard
Directive/Telling Style (S1)
Coaching/Selling Style (S2)
Participating/Supporting (S3)
Delegating (S4)
Situational Leadership
This style varies in three ways:
Ø The amount of direction – directive behavior
Ø The amount of support – supportive behavior
Ø The amount of involvement in decision making by the follower
Contemporary Approaches to Leadership
Attribution theory
Charismatic and visionary leadership
Transactional leadership
Transformational leadership
Connective Leadership
Primal Leadership
Attribution theory
Charismatic and visionary leadership
Transactional leadership
Transformational leadership
Connective Leadership
Primal Leadership
Attribution Theory
Managers attribute the major cause of poor performance to something internal to the follower (lack of ability or effort) or to external problems beyond the follower’s control (resources, lack of information, training).
There are two stages: (1) manager tries to determine the cause of performance as noted above, and (2) manager tries to select an appropriate response to fix the problem.
Charismatic Leadership
Transformational and charismatic leadership
Charismatic traits and behaviors
Ø Advocates a vision
Ø Not keeper of the status quo – perceived as change-agent
Ø Acts in several unconventional ways – counter to norms
Ø Willingly makes self-sacrifices, takes personal risks, to support their vision
Ø Strong self-confidence
Characteristics of Transactional Leaders
Contingent Reward: Contracts exchange of rewards for effort, promises rewards for good performance, recognizes accomplishments.
Management by Exception (active): Watches and searches for deviations from rules and standards, takes corrective action.
Management by Exception (passive): Intervenes only if standards are not met.
Transformational Leadership Goes Beyond Transactional Leadership
Transactional Leadership
• Motivating for performance at expected levels
• Stressing the link between reward and goal achievement.
• Uses agreed upon performance to motivate
Transformational Leadership
• Motivating for performance beyond expectations
• Inspiring for missions beyond self interest.
• Instilling confidence to achieve performance
Performance beyond expectations
Primal Leadership Theory – The EI leadership theory (Daniel Goleman)
The contingency model links the situation with the concept of task and relationship in the leader-subordinate role
The Contingency Model for Leadership
There are three elements of the leader-follower contingency model developed by Fred Fiedler:
Ø Position power – the degree to which a leader’s position ensure compliance.
Ø Task structure – the degree of clarity for goal accomplishment.
Ø Leader-member relations – the nature of relationship between the leader and the members
Situational Leadership by Hersey and Blanchard
Directive/Telling Style (S1)
Coaching/Selling Style (S2)
Participating/Supporting (S3)
Delegating (S4)
Situational Leadership
This style varies in three ways:
Ø The amount of direction – directive behavior
Ø The amount of support – supportive behavior
Ø The amount of involvement in decision making by the follower
Contemporary Approaches to Leadership
Attribution theory
Charismatic and visionary leadership
Transactional leadership
Transformational leadership
Connective Leadership
Primal Leadership
Attribution theory
Charismatic and visionary leadership
Transactional leadership
Transformational leadership
Connective Leadership
Primal Leadership
Attribution Theory
Managers attribute the major cause of poor performance to something internal to the follower (lack of ability or effort) or to external problems beyond the follower’s control (resources, lack of information, training).
There are two stages: (1) manager tries to determine the cause of performance as noted above, and (2) manager tries to select an appropriate response to fix the problem.
Charismatic Leadership
Transformational and charismatic leadership
Charismatic traits and behaviors
Ø Advocates a vision
Ø Not keeper of the status quo – perceived as change-agent
Ø Acts in several unconventional ways – counter to norms
Ø Willingly makes self-sacrifices, takes personal risks, to support their vision
Ø Strong self-confidence
Characteristics of Transactional Leaders
Contingent Reward: Contracts exchange of rewards for effort, promises rewards for good performance, recognizes accomplishments.
Management by Exception (active): Watches and searches for deviations from rules and standards, takes corrective action.
Management by Exception (passive): Intervenes only if standards are not met.
Transformational Leadership Goes Beyond Transactional Leadership
Transactional Leadership
• Motivating for performance at expected levels
• Stressing the link between reward and goal achievement.
• Uses agreed upon performance to motivate
Transformational Leadership
• Motivating for performance beyond expectations
• Inspiring for missions beyond self interest.
• Instilling confidence to achieve performance
Performance beyond expectations
Primal Leadership Theory – The EI leadership theory (Daniel Goleman)
leadership-part1
Leadership
“Good leaders don’t ask more than their constituents can give, but they often ask–and get–more than their constituents intended to give or thought it was possible to give”
John W. Gardner, Excellence, 1984
Leadership Defined
-Leadership is the ability to influence others.
-Leadership is active.
-Leadership is the catalyst that transforms potential into reality yielding positive results.
Rodney Vandeveer
Leaders and Leadership
-Are leaders born?
-Do small children demonstrate leadership skills in their play and interactions?
MARSHMALLOW EXPERIMENTS
Leadership – Trait Theory
Trait theory focuses on an individual’s personal attributes.
Six identified leadership traits
Ø Ambition and Energy
Ø Desire to Lead
Ø Honesty and Integrity
Ø Self-confidence
Ø Intelligence
Ø Job-Relevant Knowledge
Behavioral Theories
Behavioral theory focuses on what the leaders do.
Ohio State Studies
Ø Initiating Structure – Mission
Ø Consideration – Feelings
Michigan Studies
Ø Employee Oriented
Ø Production Oriented
Leadership – Behavioral Theory
Behavioral Theory
- Ohio State University Study
- Initiating Structure (Mission)
- Consideration (feelings)
“Good leaders don’t ask more than their constituents can give, but they often ask–and get–more than their constituents intended to give or thought it was possible to give”
John W. Gardner, Excellence, 1984
Leadership Defined
-Leadership is the ability to influence others.
-Leadership is active.
-Leadership is the catalyst that transforms potential into reality yielding positive results.
Rodney Vandeveer
Leaders and Leadership
-Are leaders born?
-Do small children demonstrate leadership skills in their play and interactions?
MARSHMALLOW EXPERIMENTS
Leadership – Trait Theory
Trait theory focuses on an individual’s personal attributes.
Six identified leadership traits
Ø Ambition and Energy
Ø Desire to Lead
Ø Honesty and Integrity
Ø Self-confidence
Ø Intelligence
Ø Job-Relevant Knowledge
Behavioral Theories
Behavioral theory focuses on what the leaders do.
Ohio State Studies
Ø Initiating Structure – Mission
Ø Consideration – Feelings
Michigan Studies
Ø Employee Oriented
Ø Production Oriented
Leadership – Behavioral Theory
Behavioral Theory
- Ohio State University Study
- Initiating Structure (Mission)
- Consideration (feelings)
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