Muhammad Yunusis an Bangladeshi banker, economist and Nobel Peace Prize recipient. As a professor of economics, he developed the concepts of microcredit and microfinance. These loans are given to entrepreneurs too poor to qualify for traditional bank loans. In 2006 Yunus and Grameen Bank received the Nobel Peace Prize "for their efforts through microcredit to create economic and social development from below". Yunus has received several other national and international honours. He was awarded the U.S. Congressional Gold Medal in 2010, and presented with it at a ceremony at the U.S. Capitol on 17 April 2013. The Brainchild : Grameen Bank
Grameen Bank is founded on the principle that loans are better than charity to interrupt poverty: they offer people the opportunity to take initiatives in business or agriculture, which provide earnings and enable them to pay off the debt.
The bank is founded on the belief that people have endless potential, and unleashing their creativity and initiative helps them end poverty.Grameen has offered credit to classes of people formerly underserved: the poor, women, illiterate, and unemployed people. Access to credit is based on reasonable terms, such as the group lending system and weekly-installment payments, with reasonably long terms of loans, enabling the poor to build on their existing skills to earn better income in each cycle of loans.
Grameen’s objective has been to promote financial independence among the poor. Yunus encourages all borrowers to become savers, so that their local capital can be converted into new loans to others. Since 1995, Grameen has funded 90 percent of its loans with interest income and deposits collected, aligning the interests of its new borrowers and depositor-shareholders. Grameen converts deposits made in villages into loans for the more needy in the villages (Yunus and Jolis 1998).
It targets the poorest of the poor, with a particular emphasis on women, who receive 95 percent of the bank’s loans. Women traditionally had less access to financial alternatives of ordinary credit lines and incomes. They were seen to have an inequitable share of power in household decision making. Yunus and others have found that lending to women generates considerable secondary effects, including empowerment of a marginalized segment of society (Yunus and Jolis 1998), who share betterment of income with their children, unlike many men. Yunus claims that in 2004, women still have difficulty getting loans; they comprise less than 1 percent of borrowers from commercial banks (Yunus 2004).The interest rates charged by microfinance institutes including Grameen Bank is high compared to that of traditional banks; Grameen's interest (reducing balance basis) on its main credit product is about 20%.
Embedding the Video- To help everyone know about the visions and missions of this benevolent man. Please do have a look.
Early management theory attempted to understand the new industrial life at the end of 19th century and beginning of the 20th century.It includes Scientific management, Classical organization theory, Behavioural school and management science Early Theories of Organization merged mainly from military and Catholic Church. The symbol of the machine was dominant, where Organization are viewed as machines. Therefore, the organizational application was, since workers behave predictably, management knows what to expect, and workers operating outside expectations are replaced.
Modern mgt is the collaboration of people and machines to create value. In the early days of industrialization the innovators of machines and the innovators of organization and management were engineers. Engineers, after all, were the ones closest to the machines, and this fact placed them at the interaction of workers and machines. This certainly helps explain Frederick Taylor and his invention of "Scientific Management".
SCIENTIFIC MANAGEMENT (Frederick W. Taylor) This was proposed in 1911. He also called the father of scientific management. According to Taylor, “scientific management means knowing exactly what you want men to do and seeing that they do it in the best and cheapest way.”
Fedrick w Taylor (1986-1915)rested his philosophy on four basic principles.
The development of science of management so that the best method for performing each task could be determined
The Scientific selection of workers so that each worker can be given task based on what suits him/her best.
Education and development of the workers
Maintaining harmony between the management and worker union
BUREAUCRACY MANAGEMENT (Max Weber-1900)
Bureaucracy management is a stream of classical theory of management. Max Weber was the first of management theorists who were concerned the management structure with the sets of rule and regulations. There are four major characteristics of organizational structure -
Hierarchical positions
Rules of system
Division of labour for specialization
Impersonal relationship
ADMINISTRATIVE MANAGEMENT (Henry Fayol)
Henri Fayol was real father of modern Management. Fayol laid the foundation of management as a separate body of knowledge. He always insisted that if scientific forecasting and proper methods are used in management than company can get satisfactory results.Henri Fayol’s Administrative Management is based on six admin activities. They are-
1. Technical: Production and manufacture
2. Managerial: Planning, controlling, co-ordination
3. Commercial : Purchasing and selling
4. Financial : Use of capital
5. Accounting : Asset, Liabilities, cost, profits
6. Security : Protection of goods and Person
BEHAVIOURAL MANAGEMENT THEORYResearchers have described
many different approaches to managerial behaviour, including Theories X and Y.
Often, the managerial behaviour that researchers suggest reflects the context of
their own historical era and culture. Mary Parker Follett advocated managerial
behaviours that did not reflect accepted modes of managerial behaviour at the
time, but her work was largely ignored until conditions changed.
MANAGEMENT SCIENCE THEORYThe various branches of management
science theory provide rigorous quantitative techniques that give managers
more control over their organization’s use of resources to produce goods
and services.
Six different themes in management theory:
1.New Organizational environment: The dynamic engagement approach recognizes that an organization environment is not some set of fixed, impersonal forces. Rather it is a complex, dynamic, web at people interacting with each other. As a result Managers not only pay attention to their own concerns, but also understands what is important for other managers within the organization and in other organization. They interact with theses other managers to create jointly the condition under which these organizations prosper and struggle.
2.Ethics and Social Responsibility: Managers using a dynamic engagement approach pay close attention to the values that guide people in their organizations, the corporate Culture that embodies those values, and values held by the people outside the organization.
3.Globalization and Management
4.Inventing and Re-inventing Organizations: Managers who practice dynamically engagement continually search for ways to unleash the creative potential of their employees and themselves. A growing chorus of theorist is urging managers to rethink the standard organization structures to which they have become accustomed.
5.Cultures and Multiculturalism: Managers who embrace the dynamic engagement approach recognize that the various perspective and values that people of different cultural backgrounds bring to their organizations are not only a fact life but a significant source of contributions.
6.Quality: By the dynamic engagement approach, total quality management (TQM) should be in every manager’s vocabulary. All managers should be thinking about how every organizational process can be conducted to provide product and service .That is responsible to tougher and tougher customer and competitive services. Strong and lasting relationships can be fruitful by product of quality frame of mind and action by this view. Total quality management adds one more Dynamic dimension to management because quality too is always a moving Target.
Life is full of them, isn’t it? Be it managerial, psychological, mathematical, chemical, physical or in the form of whatever word ending in “-al”, one has to face problems and come out with solutions. Mind you, finding the problem itself is not a child’s play in the first place, but, once found, a question remains if all problems need to be solved? What I intend to mean becomes clear when we consider that whenever faced with some problem, there are just three options. First, and the most preferred option, is to eliminate the problem forever from the root. Second acceptable choice is to conquer and change the situation to your favour. And if both fail, then accept it as-is and bear with it forever. In some cases, the third option does make sense and saves a lot of time, effort and deliberation if the problem is akin to a dog’s tail.
And so our day started when Dr. Prasad took out 27 small cubes comprising of 9 different colours. The immediate thought that struck everyone was we had to make a Rubik's cube, similar to the first statement I started writing this blog with.
We reached to a judgement just too quickly. The task was to arrange the cubes in such a manner that no face should have two same colours.
At first everyone became complacent and thought that the task wasn't tough. But only when one-two people tried their hands at it, they realized that they wren'e organized. Dr. Mandi then explained the algorithm to achieve the given task. Once understood, the algorithm was so simple that we wondered how it didn't strike any of us. 1) The basic lesson learnt was the importance of organization. Half of our problems could be easily solved by proper organization of thoughts, manpower and material.
2) The second take-away was that things lie in simplicity. The more one over-complicates things, the tougher the task becomes.
3) Unity of command - When everybody was trying to suggest their approach, it resulted in a chaos. But when two people were selected at random and one of them was made the task-completer and the other giving suggestions, the process became smooth.
In my opinion, the mark of a genius lies in solving complex problems in a simple manner, with a deft trick of sorts. Solutions which are not understandable to the masses and cannot be reproduced are of little use, especially in a managerial sense. And, they are not very attractive, to say the least, are they? On the other hand, the subtlety and guile of a simple solution or trick captivates the audience and a single piece of a puzzle is sufficient to unravel the whole mystery. If that piece is found, you have conquered the whole thing! A simple example of a Rubik’s cube comes to mind. On the face of it, the cube presents a complex problem to be solved in terms of aligning coloured faces once scrambled. Since the scrambling is random, a host of problems can be devised. Yet, the knowledge of a generic algorithm does the trick and is enough to solve each and every problem. This is a basic tenet of Creative Problem Solving. The solution to the problem lies in a subtle step which makes the solution simple. Yet, when that step is known, the nature of the problem and the solution both get undermined. Perhaps this is the reason why the whole thing becomes trivial and the purpose or learning behind the whole process is lost.
Learning from the Navarang exercise:
An organizational structure consists of activities such as task allocation, coordination and supervision, which are directed towards the achievement of organizational aims.It can also be considered as the viewing glass or perspective through which individuals see their organization and its environment.
An organization can be structured in many different ways, depending on their objectives. The structure of an organization will determine the modes in which it operates and performs.
Organizational structure allows the expressed allocation of responsibilities for different functions and processes to different entities such as the branch, department, workgroup and individual
Organizational structure affects organizational action in two big ways. First, it provides the foundation on which standard operating procedures and routines rest. Second, it determines which individuals get to participate in which decision-making processes, and thus to what extent their views shape the organization’s actions.
Everyone has come across the word “Jugaad” and almost everyone has come to associate the word with management. Why? Well, understanding us humans can be no science, in spite of the mightiest attempts at making it one. Imagine a manager trying to understand egos and human nature for hundreds or thousands of employees. Not a possible task, right? But, it is made possible with a plethora of examples not just in India but across the world where organizations have prospered without any boundaries. How is it achieved? Perhaps, the answer lies in creating a base, a system or a design to which every employee of the organization must conform to. The system or design itself stems from the vision, mission and the derived organizational goals to be achieved. And in this context, an ideal case of an organization would be where every employee is satisfied, all roles are designed equally strong and are similar in terms of efforts or risk and interdependence among the roles is the maximum and finally, the organization achieves its goals. The above lines are quite abstract to read but could be realized better with the pictures below. So, how does the team of three cross a valley that is wider than a step and narrower than 2 steps put together? Answer: Step by Step. From the picture on top, when the first person sets foot on the valley he is at half risk. Why so? Well, one of his steps is in air and the other on land and the next step takes him to the full risk stage with both feet in the air. While the first person is at risk, the other two persons behind him cover up and ride the proverbial tide. The same sequence is followed till all the three cross over from one side to the other completely. It is a trivial march past of sorts, if you come to imagine it that way. Don't believe me? A summary of the step by step analysis is shown in the table below. Let me tell you that this is something you can definitely try at home! But, what is so special about it all? Forget about "Two states" because the above table has four of them described below:
Safe - Both the legs of the person are on land
Half Risky - One leg in the air and the other leg on land
Full risky - Both the legs are in the air without any support
Safe - Both the legs have full support
Persons
First Person
Second Person
Third person
Step
1
Safe
Safe
Safe
2
Half Risky
3
Full Risky
4
Half Risky
Half Risky
5
Full Risky
6
Half Risky
Half Risky
7
Full Risky
8
Half Risky
9
Safe
Safe
Safe
1) At the first instance , the first person would take a step forward and would have one feet in the air while the other one is on the ground. (Half Risky).
2 ) In the second step the first person would be fully in air and his weight would be supported by the rest of the two persons.
3) In the next step , the second person would be have his front leg in air while the back leg on ground whereas the first person would have his front leg on ground and the back leg in air ( Both in half risky state) .
4) After this step, 2nd person would have both the legs in the air while the 1st person would have reached the other side of the valley and would be safe by now.
5) In the next step , the 2nd person would be in half risky state as one of his leg would be in air while the other one on ground and also the 3rd person would be in the same state.
6) In the subsequent step 2nd person would land on the ground on the other side of the valley whereas the 3rd person would be completely off the ground and his body weight would be on 1st and 2nd person.
7) Following that the 3rd person would now be in half risky state as he puts one of his legs on ground while keeping the other one in air.
8) Finally the 3rd person would also land both his feet on the ground and would be in safe position as would be the other two.
In the exercise, each member has the same sum total of total tasks, burdens and responsibilities with the functioning of the organization independent of the physical ability of a single team member. Again, an ideal scenario! Not every member in the team would take the initiative to go first and not everyone in the team would be upbeat about following anyone else. Yet, the show has to run and the team has to do its job and this is where a manager comes in.
Imagine yourself being one in that team of three. Where would you like to be in positionally? Well, in any case just a mere thought should tell you that the person leading the queue is leading from the front and bears the brunt of the risk in terms of conquering something new or overcoming the fear of the unknown. However, if he gives up after he himself has crossed the valley, then the team would fail in its objective to cross the valley together. Hence, the leader or Discoverer has to compromise on his self goal and lead the two followers across. Now, wouldn't it be ideal if each role in an organization can be crafted as in the above case with similar risks borne by everyone and expect everyone else to follow the Discoverer thereby satisfying every employee?
Well, we certainly cannot have an organization designed to satisfy every employee but we surely can have a design and fit employees into the roles designed such that the fit is appropriate and correct. Pretty much like fitting shoes to one’s feet! Of course, one’s feet to change in size or form. But, one cannot expect the shoe to change itself to fit our feet again!
What motivates employees to go to work each morning? Many people get great satisfaction from their work and take great pride in it. Others may view it as a burden, and simply work to survive.
heory X and Theory Y was an idea devised by Douglas McGregor in his 1960 book “The Human Side of Enterprise”. It encapsulated a fundamental distinction between management styles and has formed the basis for much subsequent writing on the subject.
Theory X assumes that employees are naturally unmotivated and dislike working, and this encourages an authoritarian style of management. According to this view, management must actively intervene to get things done. This style of management assumes that workers:
Dislike working.
Avoid responsibility and need to be directed.
Have to be controlled, forced, and threatened to deliver what's needed.
Need to be supervised at every step, with controls put in place.
Need to be enticed to produce results; otherwise they have no ambition or incentive to work.
Theory Y is a participative style which assumes that people would exercise self-direction and self-control in order to achieve the organization's objective.it is believed that employees would remain committed to their jobs and it's management's task to maximize that commitment.
Goal is not only about an objective, it is also about having a well defined plan to achieve that goal that was the inspiration of Dr. Locke, who studied goal setting for about thirty years. He speculated that purpose can cause action; thus, He researched the impact goals have on individual activity and on its time performance. If goals are well defined, it results in more directed efforts to achieve it which also includes forming of a strategy to achieve the goals. Setting smart goals to achieve your personal best is measured in blocks with milestones of accomplishments. In order to be successful in life identify these milestones along the way, and then continue to establish future goals.
1. Specific :
The first term stresses the need for a specific goal over and against a more general one. This means the goal is clear and unambiguous; without vagaries and platitudes. To make goals specific, they must tell a team exactly what is expected, why is it important, who’s involved, where is it going to happen and which attributes are important.
2. Measurable :
The second term stresses the need for concrete criteria for measuring progress toward the attainment of the goal. The thought behind this is that if a goal is not measurable, it is not possible to know whether a team is making progress toward successful completion. Measuring progress is supposed to help a team stay on track, reach its target dates, and experience the exhilaration of achievement that spurs it on to continued effort required to reach the ultimate goal.
3. Achievable :
The third term stresses the importance of goals that are realistic and attainable. While an attainable goal may stretch a team in order to achieve it, the goal is not extreme. That is, the goals are neither out of reach nor below standard performance, as these may be considered meaningless. When you identify goals that are most important to you, you begin to figure out ways you can make them come true. You develop the attitudes, abilities, skills, and financial capacity to reach them. The theory states that an attainable goal may cause goal-setters to identify previously overlooked opportunities to bring themselves closer to the achievement of their goals.
4. Relevant :
The fourth term stresses the importance of choosing goals that matter. A Bank Manager's goal to "Make 50 peanut butter and jelly sandwiches by 2:00pm." may be Specific, Measurable, Attainable, and Time-Bound, but lacks Relevance. Many times you will need support to accomplish a goal: resources, a champion voice, someone to knock down obstacles. Goals that are relevant to your boss, your team, your organization will receive that needed support.
Relevant goals (when met) drive the team, department, and organization forward. A goal that supports or is in alignment with other goals would be considered a relevant goal.
5. Time-bound :
The fifth term stresses the importance of grounding goals within a time frame, giving them a target date. A commitment to a deadline helps a team focus their efforts on completion of the goal on or before the due date. This part of the S.M.A.R.T. goal criteria is intended to prevent goals from being overtaken by the day-to-day crises that invariably arise in an organization. A time-bound goal is intended to establish a sense of urgency.
If you believe that your potential is at B, then your Goal Set should be A…
A – Goal Set
B – Potential
C – Goal Achieved
D – Previous Achievement
This concept where higher expectations lead to higher results was derived from Pygmalion, a play byGeorge Bernard Shaw and hence is called as the Pygmalion effect. To give you the precise definition of Pygmalion effect, ThePygmalion effect, orRosenthal effect, is the phenomenon in which the greater the expectation placed upon people, the better they perform. Goal Set should always be higher then Goal Achieved.If Goal Achieved is higher than Goal Set,then that means you have undermined your potential.Dr. Mandi explained us the graph which would explain the relation between Goal Set,Potential,Goal Achieved and History(Previous Achievement) So what does Pygmalion effect say? Pygmalion Effect : How we perceive others,positively or negatively could have a big impact on their performance level.
