The need to have an Indian Style of Management

How often has one heard of an American organization adopting the Japanese management style to surge ahead? How often has one heard of the reverse? Probably never. However, I do remember reading somewhere that when IBM-USA was making losses while IBM-Japan was making profits, IBM-USA tried to adopt the Japanese management style to turn around. The result was increased losses.

Predictable ? Should be. It is most likely that a style that is successful in Japan would not be as successful in the US and vice versa. People are different, the cultures are different and so is the life-style. That is the reason why Japan has developed its own management style and the US its own. If we take a deep look into the American management style, we realise that it is absolutely fine tuned to the American culture and way of living. The people in the west grow up, mostly, with very less emotional security due to factors like high divorce rates, single parent families etc. As they grow up they do tend to find a sense of stability in this seemingly unstable and insecure atmosphere. Thus, when they enter into their job lives and see a management culture prevalent which is contractual in nature with hire and fire style of management, they don’t get disturbed. Infact, this motivates them to work harder and a typical American would say “we are tough guys and as long as we are good the company keeps us, else we go out”. The bottom line is that the fine tuning between the culture at home and at job works wonders and enhances productivity and motivation.

Looking at the Japanese companies one finds concepts of life time employment working wonders out there. A Japanese finds a bonded culture in his organisation, unlike the American contract culture. If we look into the Japanese life style and culture we would find the importance of bonds being very high. The Japanese have strong family ties and a strong sense of community. From such an upbringing, they feel at home when they see a bonded style of management on the job. The typical Japanese would say “I am a Honda man (and not that I work for Honda)” displaying the bond that he shares with his company. The point that gets highlighted again is that a management style which flows out of your own culture and roots would any day motivate your people much more than one which is adopted from somewhere else.

The basics of “Theory ‘i’ Management”

Like Theory ‘X’ which tried to define a worker in its own manner as a mindless lazy rascal who loves shirking responsibilities and the Theory “Y” which tried to define the worker as an ambitious responsible citizen looking for the right environment to contribute constructively, Theory ‘I’ is an attempt to understand and define the Indian worker just like the Japanese had tried to do with their Theory “Z”.

In spite of India having some of the best management schools of the world and the best reservoir of skilled human talent, our organizations have not been able to do well. Amongst other reasons one of the most important reasons for the failure of Indian management has been our failure to develop an indigenous management style, which revolves around our cultural roots and upbringing. An Indian grows up in a system, where family ties and a sense of belongingness gets an absolute top priority. Coming from this environment, he gets a shock, when he sees the job environment practicing American philosophies of contractual style of management. He is not able to adjust productively to this cultural mismatch and thus, very often, fails to be as productive as his Japanese or American counterpart.

An Indian worker is perhaps looking at a system without ruthless management practices and inhuman work pressure even if the job security is a little less. Instead of the system (specially in PSU’s) giving them near 100% job security, it could give them some fear of job security, since Indians culturally like to take life easy and tend to become complacent in such situations. While, the job security aspect could be reduced the human touch in managing them could be increased. They should be made to feel that the company cares for them through regular training programmes, family welfare schemes etc. They should be made to feel that they matter in the organization through programmes which involve them directly or indirectly into various decision making processes. This would increase their level of commitment for the organizations and perhaps tomorrow we would also see people telling that “I am a Bajaj man” instead of “I am working for Bajaj scooters”. In one of my workshops Sr. Manager - Corporate Planning of NTPC, P. Purukayastha could not agree more and cited two beautiful examples. The first related to NTPC spending upto Rs. 5 crore on the medical expenses in US for one of its drivers and his wife who were affected by incurable diseases. This incident of humanity has been a motivating factor for all employees for years. The second related to his own experience where he made flexi timing for one of his workers whose wife was ill. This not only removed the troubled look from his face but made him one of the most motivated workers who was always ready to give more than 100% to his job once his wife became alright. These two incidents can explain how human touch can do wonders on an average Indian psyche. I would even go up to the extent of suggesting that professional studies could be made a part of on the job training like in Japan and not that people first get trained and then wander around for jobs like in the US. It has to be kept in mind that the Japanese without a single business school of repute have produced some of the most successful corporations in the last 50 years, while with so many reputed management schools the US has not been able to stop the entry of one after another of the Japanese organisations into the Fortune 500 list. Again out here I might add that Mr. Purakayastha himself went through a training program after which the company, based upon the results of the test, decided to shift him from industrial relations to corporate planning which has been one of the most motivating aspects of his job.

The idea that I want to suggest is that it is high time Indian companies thought sincerely about their people and developed “Indian - people friendly management” practices. They might have some American touch or some Japanese touch but the thought essentially has to be given on what will suit the Indians. The sad part is that successful Indian managers who have developed indigenous styles of management don’t end up theoreotising their styles and propagating them through books or articles. In the US almost every semi-successful manager ends up writing a book and thus, today one does know how IBM is managed, but one doesn’t know about how an Indian corporation like, may be, the Reliance Group is managed. So, when it comes to learning management the only option is to refer to foreign books and learn foreign management styles.

The Principles of “Theory ‘i’ Management”

• Most Indians value bonds emotions and long term relationships.
• Most Indians value growth opportunities and commitment.
• Our cultural roots (of tolerance etc.) often make us complacent.
• Lack of patriotism at a macro level leaves us aimless.

What do these principles prove?

These principles have been arrived at after a thorough research that we conducted on more than 3000 managers across the country. The managers were asked to talk about their colleagues across functions and levels. The most important revelation from this survey is about the uniqueness of today’s Indian psyche. On one hand as expected, the first two points go on to prove our cultural values and a lot of similarities can be drawn with the Japanese value systems. On the other hand when faced with the fact that everything Indian is so cool outside India, Bhangra and Indipop find place in the US pop charts, the global IT revolution has been fuelled by homegrown geeks, in Ohio the Wright State University College of Business and Administration gets renamed after an NRI businessman, our B-school graduates are becoming global leaders, NASA has top Indian scientists, yet Indians have time and again failed to perform in India ; Indian’s like to blame it on complacency, a characteristic that they like attributing to our culture ! It seems Indian’s look for the first opportunity to become complacent ; something that they are unable to become in the western world of competition and hire and fire system. Not only this, when faced with the question about the lack of patriotic instincts and decaying values ; they love to blame it on their leaders. Somebody says if our Prime Minister can be bribed Rs 1 crore by a stock broker, what’s wrong in taking bribes ; somebody else says if my general manager can take a bribe from the company’s travel agent what’s wrong if I get some account through corrupt practices? One might argue that even in Japan there is corruption. The reality however is that in Japan corruption doesn’t touch everyday human existence the way it does in India and moreover they have a more effective judicial system which even their presidents can’t escape. The other day I read that in Uttar Pradesh fire brigade people have started to ask for bribes before starting to put off the fire! Criminalization of daily life is to such an extent that every individual is actually being turned into a criminal.

The socio - cultural and geo-political environment in India has today resulted into a mixed breed of Indians who on one hand retain family values and a longing for emotional touch and on the other hand are complacent (given the first opportunity to be) and unashamed of being morally bankrupt.

Thus, Indians need an India centric management theory.

What does “Theory ‘i’ Management” prescribe?

Theory ‘i’ Management prescribes solutions at two levels : The Macro & The Micro.

Macro aspects of Theory ‘i’ Management

At a macro level the government and the industry needs to set leadership standards that can be looked up to ; in order to drive a sense of patriotism and commitment to the country. This can only come through humane and caring policies for the upliftment of the masses implemented with equal zeal, honesty and earnestness.

Firstly and most importantly they need to realize that the success of our industries or their respective companies doesn’t entirely depend upon the kind of business strategies they have nor the latest jargons that they have adopted from their multinational consulting firms nor on their exciting marketing and sales promotional schemes. The success of their companies in the long run depends upon how vast is the market that the economy has been able to give them, how much is the purchasing power of the people in the country. The people at the bottom level today need to be given a higher purchasing power alongwith better health and education facilities which would not only make a huge difference in the quality of human capital in the country but would also satisfy the most important criteria for the growth of the Indian industry i.e. they would become a part of the consuming market. The market will no longer comprise of 50 million people but of 1 billion people, because it is purchasing power and only purchasing power of the market that determines the long run growth of any economy, industry and company. No marketing strategy certainly can achieve the above market expansion. This is pure economics and no miracle. So, not only for the sake of humanity but also for the sake of their own long run interests they should support policies which benefit the weaker section of the society and contribute towards its success. Countries which are developed today had all taken care of this basic thing before their surge forward.

Secondly, and as importantly, we need to have macro level policies for enhancing the patriotic instincts and the moral values of our country men. Many people have addressed this problem without ever offering an effective solution. I don’t want to commit the same mistake. I believe that an honest and clean macro environment is the most effective solution for this problem. And for this we require to completely revamp our ineffective and lethargic judicial system which for all practical purposes is on a perpetual strike. Akio Morita in his book “Made In Japan” devoted a whole chapter on the judicial machinery of Japan citing that as one of the most crucial reasons for the faster growth of Japanese organizations compared to the American organizations (which are perpetually facing legal problems from competitors and customers) during the 70’s and 80’s. Isn’t it amazing that the world’s strongest democracy with one of the best judicial systems could be held responsible for American corporate problems by none other than a man of Akio Morita’s status ?

Lets take a look at the Indian judicial system to understand the problem better. We have in India 10 judges to every million people compared to more than 120 in the US. In a recent survey conducted it has been found out that the total backlog of court cases in India is more than 30 million and on an average it takes 20 years for a dispute to be resolved. But, of course, disputes being resolved don’t mean justice being done. For, more often than not the criminal gets scot-free and justice delayed in any case is justice denied. If this sounds oft repeated, imagine this. The provincial armed constabulary of UP stopped the buses which were traveling to Delhi to demand a separate state for Uttarkhand. The bus in which the women were traveling was isolated, women dragged out, clothes torn and according to the CBI at least seven raped by the gentlemen in uniforms. The men folk tried to intervene and 14 were shot dead on the spot. The DM of Muzzafarnagar (where the incident took place) said that when a man sees a woman in a deserted sugarcane field the first instinct to surface is the basic desire for conjugal union. Such was his ability to deal with human sentiments as an IAS officer! At the pace at which our court cases are resolved it will take another 324 years, only to dispose off the backlog. Government is involved in more than 60% of all civil suits appeals. The success rate is as low as 5% to 6%. Its common knowledge that almost all public prosecutors are on sale. We are into the Guinness Book of Records not because of big achievements but mostly because of aboriginal habits like the longest nail or the longest moustache or in this case for the longest legal disputes in history. A land dispute in Maharashtra lasted 650 years. All stemming out of what I call the great Indian complacency.

The reason behind today’s moral bankruptcy of the Indians is the lack of trust on the judicial system. I prefer to pay a bribe and get the job done Instead of dragging the bribe seeker to the court. I do this because I know that the court will take 20 years to decide my case and in all probability the guilty will not be punished. I thus look at the option of going to the court as self harassment. If I would have known that the case will be solved in three months time like it happens in most of the developed countries then I would actually go to the court. Even if the man is not punished and given benefit of doubt he wouldn’t get it too often if he keeps repeating his crime. Probably in 9 months to a years time he would find himself behind the bar, for, somebody else would also develop the guts to go to the court and finally get him punished.

Thus, to finish this problem from its root we need to see to it that the judicial machinery starts working and we don’t have too much time for that. We should solve it in the next 5 years itself. For this we need to allocate Rs. 36,000 crore over the next five years for employing on emergency services, practicing lawyers with 5 years experience to act as judges (90,000 additional judges on the basis of Rs. 8,00,000 lacs per judge with supporting staff etc.) to clear backlog in the next five years. Later as the backlog comes down, these judges would be crucial in keeping up the fast pace of the judicial system. This will reduce criminalization of civil Life enormously and bring back values into our lives and work.

To achieve the above we require greater corporate participation in influencing the macro level decisions through organisations like FICCI, CII etc. pressurising the Government to eliminate poverty if not for the sake of humanity, then for the sake of their own selfish gains and bringing in a functional judicial system. No amount of management and marketing techniques can enable corporates to have a more than 10 to 15% growth in their market nor any amount of moral lectures can make people ethical. But the market can be expanded by more than 1000% by increasing the purchasing power of the people (then, instead of the middle class being an approximate 50 million would become more than 550 million) and people can be made ethical through a disciplined judicial system for without an appropriate punishment mechanism the devil rules - our minds as well as our country.

Micro aspects of “Theory ‘i’ Management

At a micro level Indian leaders have to necessarily increase the element of human touch in the organizations. They need to realize the importance Indians attach to long term relationship possibilities. Yet, human touch and long term relationships should not result into endless job security (as was done successfully in Japan) since, then, the elements of complacency are bound to creep in. Thus, to make Indians productive job security levels would play a crucial role (typically the choice is explained in the Performance Sand dune : figure I). I believe levels of job security in the Indian context can effect productivity levels. Indians with high job security tend to become complacent while too much job insecurity can through an averagely creative brain into a spin. However, it depends upon person to person and their levels of maturity. Of course the debate on how to reach the equilibrium level of job security can go on endlessly. That is why we call management an art. A good leader knows how to identify the correct level.

This is where leadership styles play a big role. Indian leaders could do well, perhaps, by implementing Theory ‘i’ Management with the help of Indian leadership techniques which are explained beautifully in some of our epics like “the Gita” and the Saam, Daam, Dand, Bhed (I have given a little touch of modernity to the concept of Bhed, though. In my theory I have related Bhed with aspects of ruling/leading by dividing and delegating responsibilities) philosophy etc. which talk about flexible styles of handling people based upon situations and backgrounds (this I have explained in my “Leadership Success Multiplier” model : figure II). Very few countries can boast of having leadership traits and theories ingrained in their culture like the Indians can. If we take look into Gita then we see that Lord Krishna talks about three types of people ; The Tamas, The Rajas and the Satwas. By combining the leadership principles of Saam, Daam... with different types of people of Gita, we can device a leadership strategy which suites each category of people. Again, in order to explain things better my model has divided Rajas into two categories. Category 1 comprising of Rajas with lesser capabilities, and category 2 comprising of Rajas who are more capable. A look now at figure II would tell you how to lead whom. Dand is for those who display lack of capabilities and responsibility on the job. They need management by direction in order to develop the right attitude. Those who become more mature (overtime or naturally) require management by attraction. Incentives/Daam works for them. They are not the most responsible of people therefore job insecurity still needs to be around but if they work well human touch should be displayed. As they become more mature, time comes when job insecurity levels can be decreased and management should be by associating them in the decision making process. Trying to incentivise everything with this group of people can back fire, for, they are looking for recognition. Those who are most mature/Satviks, would be most productive with least job security and perhaps even without any extra display of human concern. They need to be left alone and trusted completely. Management by delegation works wonders with them.

Infact, all management books as well as management guru’s talk about leadership but nobody ever talks about follower ship, however, the Gita does. When the Tamas come to him in order to reach God (i.e. him) Lord Krishna advises them to have blind faith that he exists and he says that this blind faith would lead them to God. Thus, he calls them the Bhaktiyogis. On the other hand when the other extreme kind of people The Satwas come to him he advises them to deny the existence of God and go in search of truth. And he says that this visionary journey would help them actually discover that he exists. Thus, he calls them the Gyanyogis. When the more common lot the Rajas approach him he tells them to keep on doing their work in a devoted manner to reach him. For them work should be worship and he calls them Karmayogis. So, he talks about follower ship from blind to work oriented to visionary as the key to success. Sadly, most of the Indian organizations don’t adhere to it. The top level people who are supposed to be visionary are converted into Bhaktiyogis thanks to the bureaucratic machinery and red-tapism existing in our system. A 4th class under secretary, thanks to the system, has the power to sign a document for which he does the audacity of making a Rahul Bajaj wait outside his office for 4 hours ! The exit policies and politically motivated union activities have made the bottom level people the Gyanyogis without proper education or experience. These people today through union activities have been instrumental in ruining corporate India. Perhaps, the only example which comes to my mind as an immediate exception is that of the army. Knowingly or by default army focuses on follower ship. Thus, the bottom level solider blindly follows orders without asking questions while the middle level captains carry on their work religiously and top level generals strategize. I do strongly think that focus should also be put into aspects of follower ship in organizations.

What I am trying to say basically is we need to remove the dichotomy existing in our system, where on one hand we keep harping about our culture and its strengths and on the other hand we overlook this aspect completely when it comes to managing our people.

“Theory ‘i’ Management” is thus about India centric management styles for managing Indians.

Author:
Arindam Chaudhuri