Saturday 22 June 2013

Whether to Axe(X) or Y??

Hello everyone, so how are you feeling after the last session? I hope the E’s didn’t trouble you much. Well I am back to load your brain a little more. We will learn about one more basic thing of organization ‘maalik aur gulam ka’ relation…..joking not exactly that but yes, we will learn about one of the most important relation Boss and the subordinate. This is the microfiber common to any organization irrespective of its size.

Douglas McGregor at the MIT Sloan School of Management proposed Theory X and Theory Y in the 1960s that have been used in human resource management, organizational behavior, organizational communication and organizational development. Wait; don’t be scared we will understand this theory in a very lucid manner thanks to Prof. Mandi’s method of teaching.

Broadly workers can be classified as:
· Good Workers (GW): Who take initiatives to complete the job and who are genuinely interested in working for company.
·   Bad Workers (BW): Who have to force to complete jobs, they have no interest whatsoever in the work.

Similarly, managers can be classified as:

· Manager X / Hopeless Managers: These managers in general have a perception that employees are inherently lazy and will avoid work if they can and that they inherently dislike work. In short, these managers have an attitude that every worker is a Bad Worker and should be dealt with close supervision and comprehensive systems of controls developed.

·  Manager Y / Hopeful Manager: These managers have a perception that employees may be ambitious and self-motivated and exercise self-control. It is believed that employees enjoy their work duties. They possess the ability for creative problem solving, but their talents are underused in most organizations. Given the proper conditions, theory Y managers believe that employees will learn to seek out and accept responsibility and to exercise self-control and self-direction in accomplishing objectives to which they are committed. They believe that the satisfaction of doing a good job is a strong motivation.

Every organization has a mix of both types of managers as well as workers. Let’s see what happens when they interact. We will take all the possible cases.


Quadrant I: In this scenario, the manager gives the required amount of freedom to the workers. The workers enjoy the job as well as the freedoms and opportunities provided to them. The productivity and motivation level of workers remain high. In short the atmosphere in the office remains conducive for working.

Quadrant II: This is a situation where opposite poles are pushed together, which results in an unstable combination. Here the worker is keen to showcase his abilities by working hard. But the manager thinks that the worker has some selfish interests and is just portraying to be interested. The manager perceives that in order to get the maximum output of employees, they should be dealt with force and austerity. This disheartens the workers and infuriates them making them resentful. Soon the productivity decreases.

Quadrant III: This is as abysmal as it sounds, the manager who is skeptical about the interests of all workers and behaves like a task manager. Workers on the other hand are least bothered about the job, organization. They have their own set of reasons as to why they linger in the organization. In this situation, both try to pull the things in their own style of operation leading to drastic reduction in productivity and tensions across the organization. This is the worst kind of situation for any organization.

Quadrant IV: Here the worker is not interested in the jobs or organization. The manager however is interested in the productivity of the organization. If the manager handles the situation tactfully the productivity generally doesn’t get hampered much.

On a personal note, I have experienced situations wherein I have worked for managers who were like angels. These managers know how to get the best of every employee and generally their teams fare nicely in terms of productivity. Also, not to mention the happiness one gets in the office working.

I have worked for managers who used to behave like a tyrant. They would listen to everything with a salt of suspicion and would leave no stone unturned to make the working hours in office a hell. In such situations the morale of the whole team soon plummets. The team may fare well in terms of productivity, but soon the side effects would show up. This situation results in attrition. As has been said by Mr. Azim Premji as well “People leave managers, not companies”, for people managers matter more than company.


Also, in real world situations the condition is always a mix of more than one type. The workers generally have some proportion of good and bad among them. Managers also have shades of both personalities. It is how they act in general and how they behave with the workers defines the outcome. This also decides the attrition for a company.

I know this one had too much of theory. Well I promise the next would be fun to learn. 

The Balancing Act of Tower Making

I am back and as I promised, I am here to share yet another new experience with all of you.

In second lecture, Prof Mandi brought with him small identical wooden cubes as usual they were distributed among the students. After a while, Prof asked us to perform what seemed a very easy task, to make a single tower using those cubes. The condition was simple enough, only one person was supposed to make it all alone and no support could be used.




Well, as you might have thought by now, everyone was on his feet for this activity. But our smart Prof had a trick up his sleeve to cut through this competition, he told that in order to build the tower the interested person has to bid. So the process of bidding started, students started to bid onward Rs 100. The bid was won by a student for Rs 500. Professor then elucidated us that the bid was a way to teach us ‘One has to take risks to fulfill his/her dreams’.






The selected person went ahead to make a tower of 16 blocks against the class’s predicted 10 blocks. 

Professor now asked us to repeat the activity; with a change that now more than one person could participate in the process. In total 7 people decided to make the tower. But the basic conditions were still the same, still only one person would work with cubes others can assist that person henceforth termed as worker. 





As the number of people involved increased, professor asked the worker to be blind folded.
So with the worker blind folded and one person to closely supervise and instruct him as to where the next block should be placed, the activity started. Other 5 people were made to sit at a distance and were allowed to give their advice to the duo involved in tower making. Prior to the start of the activity the class was once again asked to predict the height of tower in terms of number of blocks. There were few who thought that this group would exceed the individual’s performance.




What happened next was a sight for eyes; it was a perfect miniaturized replica of any other office. One person trying to work, and others just pitching in their ‘expert advice’ at the top of their voices. Any guesses about the height of the tower? Well, they could make a tower of 7 cubes only. When asked to the ‘worker’ for the reason of the debacle he said he confused by deluge of voices.


So what was the professor trying to teach us? He was not teaching us something new, it is something that most of us have experienced in our life. In majority of the companies it is middle level of management which causes the trouble. This middle level as described by professor becomes ‘Overhead’ instead of ‘head’. The reason why an individual could make a tower of greater height than that of a group was he was not distracted by other’s advice. He could follow his heart and mind.


Wait the lesson is not yet over, this is just the beginning. Professor then explained to us that the first stage where only a single person was working is termed as ‘Craftsmanship’ while the second stage is ‘Organization’.

Both the patterns have certain advantages as well as disadvantages.

Advantages of Craftsmanship

·         The worker is the whole and soul. He is the worker, Manager, CEO everything in himself, jack of all trades.
·         The satisfaction of doing job is very high
·         Interdependency is very low: he need not depend on anyone to get the job done.
·         Skill level is very high.
Example: A tailor working alone will take the measurement himself, do cutting of clothes, stitching and then ironing the final cloth.

Disadvantages of ‘Craftsmanship’

·         No specific management.
·         No organization.
·         No specialization
·         No parallelism i;e jobs can’t be done simultaneously rather they are handled sequentially.
·         Throughput would be less as the time taken would be more.

Advantages of Organization:

·         The work is divided into very small units, which are done individually by many people.
·         Specialization of work is there. Every person does his job only.
·         Increase in dexterity, as the person keeps on doing the same job repeatedly.
·         Maximum efficiency.
·         Quality of product is better.

Disadvantages of Organization system:

·         Job satisfaction in employees goes down as the satisfaction depends on the appraisal policies, motivational incentives etc.
·         Inter-dependency increases.
·         ‘Non Worker’ is the head of affairs.
·         Skill level decreases as the person keeps doing the same task.
In this model each worker makes a part of the product, just like an assembly line process. This increases the dependency of a worker on his preceding worker.
The learning from this is that the job of an MBA is to create complexities in order to increase the efficiency, profit while using the resources optimally. In addition to this MBA holder has to make the policies in such a way that they keep the workers happy and their motivation level remains high.

Equally Important are the 3 E’s of management.
·         Efficiency
·         Excellence
·         Effectiveness

Excellence = Effectiveness * Efficiency
                  = Direction * Speed

Efficient means to have an affordable or low cost product.
In a nutshell Efficiency is: “More out of less is Efficiency”

Whereas, Excellence means:  “More out of less for more is Excellence”

While there are methods to exactly calculate the efficiency, there doesn’t exist any specific method to calculate the effectiveness of any process. Effectiveness is a subjective thing. Effectiveness can tell us whether we are moving in the same direction or not, it can tell us whether we are utilizing our resources in an efficient way or not.

Example: Internet help us increase our efficiency, but how we use internet is our effectiveness.


Efficiency and effectiveness are like speed and direction respectively together they help us come to calculate the rate by which an organization is heading towards excellence. So together both of them are key to make any decision about any organization.

All this gyaan must have taxed your brain..........have a break! may a cup of coffee or tea and ponder over these simple but powerful teachings. Meanwhile, I will prepare the next blog on McGregor's theory.

Friday 21 June 2013

Advent of B-school Journey........At NITIE

First day in god’s own campus officially known as NITIE. Returning to student life after a stint of 52 months in corporate culture was a bit queer. Sitting in a classroom again, awaiting a faculty instead of client or manager. It took a while for me to get acclimatized to this old yet 'new' situation of mine. To my surprise and relief the faculty was none other than Dr. T. Prasad famously known as Dr. Mandi in NITIE. On a personal note I had a desire to meet him after I saw a video of him during the GD-PI process.

    



The class began with Pink Floyd’s famous song “Another Brick in wall” and a thought struck me the first lecture couldn't have been better than this. The song has a meaning; it asks all the students not to be like an assembly line product and instead be someone unique and make an identity of your own in this competitive world.

Prof. then made us realize the cost of MBA as not only the fees but also including the emoluments which we won’t be getting anymore as we have quit the jobs we were having. So for me approximately Rs 17 Lacs is the opportunity cost. This cost comes to approximately Rs 2500 per day.

Prof Mandi went ahead to give the first ‘gurumantra’: “Aaj ki roti….Aaj hi kamayenge”. He asked us to earn as much as possible on a daily basis to cover the above mentioned daily opportunity cost. A million dollar teaching to become self-reliant.

We were then given few toys namely a couple of butterflies, a pair of rubber globes of the size of small ball, and a hen along with an inclined plank, on which it could oscillate as well slide down under the effect of omnipresent gravity. Baffled!! Are you on reading this……well I must admit I was myself not sure as to what Prof. was going to do with them. He then asked us for how much we can sell it. Well the reply was what must have popped in your mind Rs 50-60, that’s how much we think is the correct price for a toy. He then showed us the physical applications to which the toy could be used namely the butterfly could be used to demonstrate the Center of Gravity, Moment of Inertia, Rotational motion etc. Then we said we can sell it for Rs 500 even.




He imparted the second learning of the day, to think creatively. The second gurumantra was the famous jingle ‘Socho Becho, Becho Sikho, Sikho Socho’.

Prof also told us about the NITIE alumni who have created an identity of their own like Shreyas Srinivas who quit HUL to start ‘Level 10 Studios’, Mrunmay Chaturvedi who went on to become CEO of “Cyprus Semiconductors’ India Branch.

The idea to write this blog was also given by the same great soul, Prof Mandi. He has another altruistic view to share his priceless knowledge with the whole world via the blogs. This would help all those people, students who can’t come to NITIE. 

Keep looking for this space…………Loads of more experiences to come!!

Before ending this article, I will Leave you with a video of the NITIE campus from MTV Campus diaries.