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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. ---------------------------------------------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. =================================== 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 constant 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 controlling 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 dynamically. • Examine whether current regulations governing financial institutions and/or financial markets inhibit or facilitate the availability and optimal allocation of finance for entrepreneurial activities. • Allow scope for flexible employment contracts to be negotiated, with remuneration arrangements and working conditions that are well adapted to the needs of dynamic enterprises. • Relax employment protection measures that inhibit restructuring 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 entrepreneurship,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 quickly should they wish to. • Ensure that personal bankruptcy legislation provides an appropriate 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 entrepreneurship (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 programmess, 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. -----------------------------------------------------------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