POM Mid Term Test

Q.1 Discuss the concept of effectiveness with the case of 3 idiots crossing the river exercise.

Ans: The concept of effectiveness as put forth by Peter Drucker means "Doing the right thing" as opposed to the concept of efficiency which means "doing things right". Effectiveness involves choosing right goals. Effectiveness addresses following key points which are discussed in terms of the river crossing exercise simulated in the class-
1. Clear practices, policies, and decisions: It is one of the most important requirement as it aims to remove any ambiguities and ensures minimum conflicts in workplace. As in case of the river crossing, the number of steps were clearly defined as well as they were classified as risky, half risky and safe. This ensured informed decision making at each step of the exercise.
2. High Levels of organizational trust: Employees of an organization are the foundation members and hence highest level of trust is expected among them. For example, lack of trust in the river crossing exercise could lead to fatalities.
3. Using information technology effectively: Importance of simulation was discussed in the class with respect to the hazardous tasks. Here Information technology can be effectively employed.
4. An environment accepting of change and innovation: Innovations are always two steps ahead than improvements and hence we should aim to use innovative techniques to make all the 27 steps as safe eliminating risk factor altogether.
5. Synchronization: As it is said, management is a music and not noise, synchronization is as important for manager as it is for an Orchestra.Without proper synchronization the 3 idiots will never be able to cross the river safely.


Q.2 Show and compare the 'Productivity measurement' for TWO different work methods adopted (a) Two monks carrying water (b) Three monks carrying the water. Explain relevant Organization and Management issues related to this.

Ans: The efforts are more when 2 monks are carrying water as compared to the efforts put in by 3 monks to carry the equal amount of water. The efficiency is also more when the 3 monks are working together instead of 2 monks. Hence, the overall productivity is more in case of 3 monks carrying water than 2 monks carrying the water. 
But there several organization and management issues that creep up when 2 or more persons are working together. 
1. Load sharing: As seen in this story, two monks had an argument over distribution of load of a bucket. It was solved by using the scale to determine the midpoint of stick, so that load will be shared equally. The method that was used was a Participative Management.
2. Sharing Responsibility: When there were 3 monks, everyone thought that the other 2 should get the water and hence everyone was trying to avoid the work. But all of them worked together in case of emergency, when monastery was on fire. So, management of an organization should always look for keeping the employees on toes by providing them with challenges.

Grameen Bank - A Great Example of Disruptive Social Innovation

Before coming to class we were asked to watch a video of a speech delivered by Mr. Muhammad Yunus at Emory University. I was so excited about discussing it in class. I was already aware about extraordinary changes Grameen Bank brought into millions of Bangladeshi citizens. I had read about it in a very famous book - fortune at the bottom of the pyramid by Prof. C.K. Prahalad. Before explaining further about class discussions I will first write general information about Grameen Bank.  

The Grameen Bank is a community development bank started in Bangladesh. They give small loans (known as micro credit or "grameencredit" ) to poor people without asking for collateral.The system of this bank is based on the idea that the poor have skills but have no chance to use their skills without some money, that is their skills are under-utilized. Most of the banks loans go to women.

The Grameen Bank was started 1976 when Professor Muhammad Yunus, a Fulbright scholar and Professor at University of Chittagong, researched how to provide banking for the rural poor. In October 1983, the Grameen Bank Project was made into an independent bank by the government.The group and its first member, Muhammad Yunus, were awarded the Nobel Peace Prize in 2006. 

Grameen Bank is owned by the people who borrow the money, mostly women. The borrowers own 94% of the bank, and the other 6% is owned by the Government of Bangladesh.








I am embedding the video we were asked see below. Watch it, it's worth your time. It will also give some context to what happened in class and the key learning I had. 

Our class did not focus solely on aspects of social business. Instead – being a Principles of Management class – we focused on the difference in style of management and in delivery of product. We started out by discussing the difference between a traditional banking system and the Grameen micro-credit system. For the sake of simplicity, I am tabulating the differences below:

		TRADITIONAL BANKING	GRAMEEN BANK
1.	Purpose	Maximising Profit (Profit Motive)	Reducing Poverty
2.	Collateral	Needed. Without which no loans will be given.	No collateral needed
3.	Ownership	Businessmen – Rich People	By the Poor
4.	Loan Amount	Large Amounts	Very Small Amounts
5.	Type of Lending	To individuals	To small groups of people – Solidarity lending
6.	Type of Interest	Usually Interest is compounded	Simple Interest
7.	People Money given to	In most developing countries there seem to be a bias towards men.	Women are the primary focus. In fact women make up 97% of Grameen Bank Customers
8.	Location	Primarily located in urban areas	Primarily located in rural areas

              In my last blog, I wrote about Management by Objective and Organisational Structure. Both these contribute to another phenomenon – Organisational Culture. Basically, it is the behaviour of humans who are part of an organisation and the meanings that the people attach to their actions. Culture includes the organisation values, visions, norms, working language, systems, symbols, beliefs and habits.

                       The culture at Grameen Bank is to find ways to eradicate poverty. The Managing Director of the bank is not asked, “Why are Profits down?”. Instead he is asked, “How many people have you taken out of poverty today. It is precisely this culture that has allowed the Grameen Bank to achieve so much.

              This is the most important take away from this class. It is the Organisational Culture that motivates employees to perform well. It is the Organisation Culture that affects the way people and groups interact with each other, with clients, and with stakeholders. It is the Organisational Culture that gives the organisation Branding.

  

Problem Solving

In today's class we delved deeper into Problem Solving and Decision matrix.

A thorough process guides you through each stage of the problem solving journey, from identifying the problem to implementing a working solution. This helps to ensure that your solutions are creative, robust and well considered.

The problem solving is systematic process and there are no shortcuts.

AN INDUSTRIAL STRENGTH PROJECT MANAGEMENT PROCESS

The ten problem solving stages that we will work through in a project, are as follows:

·         Step 1: Identify the Problem: Understanding the type of problem, and if the situation is even causing a problem, is the first step.

·         Step 2: Define the Problem: When the problem seems obvious, it is easy to skip this most important step. The more carefully you define the problem, the more effective your efforts will be in finding the best solution.

·         Step 3: Deciding If And When To Act: Sometimes the easiest way to solve a problem is to decide that it is not actually a problem! Hence the great quote: “According to my calculations, you do not have a problem…” Whilst this approach is not always valid, in Step 3, you will learn in which circumstances it can be legitimately applied.

·         Step 4: Understand Everyone’s Interests: An organisational problem will typically impact on many people, including investors, managers, staff, shareholders, customers and suppliers. By understanding the interests and needs of these different groups, you will have more support for your efforts and your solution will be more readily accepted.

·         Step 5: Develop Alternatives: Often, defining a problem points directly to its solution, however it is important to resist grasping at the first or most obvious solution, particularly if the problem has been unsuccessfully tackled before.

·         Step 6: Analyse the Risks: Any solution carries both expected benefits and risks, because implementing a solution requires change. By understanding the risks involved, you can make an informed decision about how to move forwards.

·         Step 7: Analyse the Alternatives : Having developed possible solutions and assessed their relative risks, you can now select your preferred solution.

·         Step 8: Sell the Solution: Solutions to complex problems often involve compromise, which means that not everyone involved will agree with your choice of ‘best’ solution. In order to gain support, you may have to sell your solution to the people or groups involved.

·         Step 9: Implement the Solution: Implementing the solution requires focus, dedication, care and tact. This stage may require testing the solution on prototypes and models prior to a full scale implementation; all part of managing the risk of the solution.

·         Step 10: Evaluation: In any complex system, changing one part affects the entire system in ways that may not be predictable. Careful monitoring, evaluation and adjustment are required to ensure that the solution is effective and long lasting.

Root cause analysis is another method of solving the problem. With the help of Fishbone diagram given above. 

I’ve found it useful to bear three points in mind when thinking about your overall approach to the problem solving process:

1.     If you find that you’re not making progress at a particular stage of the cycle, that’s a good indication that you need to go back a stage. It could be that the problem definition isn’t quite right, or it could be that you don’t have the right stakeholders on board. Taking a step back, both literally and metaphorically, will help you to move forwards.

2.     Start with a positive outlook. The first thing you should do when faced with a difficult problem is to start with a positive outlook. Sometimes our first reaction is to fear the unknown, which is entirely natural. However, I’ve realised over the years that it is the unknown that has given us, as individuals and as the human race, the curiosity to try new things and aim for the stars. Don’t fear the problem itself. Look at it as an opportunity.

3.     Approach the problem with an open mind. An old saying goes, “If the only tool you have is a hammer, everything becomes a nail”. The way you have done things in the past may not always work for all situations and there are often many solutions to a given problem. When faced with a difficult problem, do not assume you know the answer at the start. Stop and take the time to understand what the problem is before applying a solution. Be open to all possibilities and do not presume that every problem is a nail.

Navrang Cube And Rubik cube : Which Organization strategy your Organization should follow ?

In this blog I have tried to explain two different Organization strategies using two types of cubes.
1. Navrang Cube
2. Rubik's Cube
These cubes are of opposite nature and symbolizes two different organizational strategies.
So first we will understand basics  about these cubes.

1. Navrang Cube

Navrang Cube is a six- faced cube made up of 27 smaller cubes - there are 9 different colour cubes and for each colour set there are 3 identical cubes.The cube looks similar to Rubik's Cube. The cube is said to be solved when each of the faces has 9 different colour cubes i.e. there is no repetition of same colour cube at any face.
We can relate Navrang Cube and procedure to solve it with Principles of Organizations and Management.

• Solving Navrang Cube starts with forming a purpose and feasible approach about how to solve the puzzle.This symbolizes the initial strategic plan about how to build Organization. First we consider what is mission and vision of the organization then what are the possible ways to achieve these and then only we start actual work.
• In Navrang cube we have to get all different 9 colors on each face of the cube. This symbolizes with teams having members with different sets of skill sets and characteristics. Members with  different skill sets are required to solve the problem and they work very closely to achieve the organizational goals.

  

  Team members with different skill sets

  
  
  
  
  
  
    

2. Rubik's Cube

 In a Rubik's Cube, each of the six faces is covered by nine stickers, each of one of six solid colours (traditionally white, red, blue, orange, green, and yellow, where white is opposite yellow, blue is opposite green, and orange is opposite red, and the red, white and blue are arranged in that order in a clockwise arrangement). An internal pivot mechanism enables each face to turn independently, thus mixing up the colours. For the puzzle to be solved, each face must be returned to consisting of one colour.

Now we will relate Rubik's cube with Principles of Organzation and Management.

• This symbolizes to Organization whose mission and vision are very clear and they are into business for quite a long time. Like all the small cubes are connected by very strong central base, similarly in these type of organization,Every decision is taken by few very intellectual people in such a way that it binds every other team.
• Looking at the each face of Whole cube, we can conclude that it is necessary to have people of same skill in a team so as to provide a competitive environment which automatically generates efficiency and much more productivity.

Team members with similar skill sets

So which Organizational strategy is best?
It depends upon which life cycle stage your organization is in. When the organization is new, it has to decide multiple things and is favorable if team comprises of members having different skill sets i.e. Navrang cube  strategy. As the organization matures, it should give more focus on Skill specialization but at the same time all different teams should be strongly attached with the core philosophy of the organization, i.e. Rubik's cube.

The Story of Three Monks and What We Can Learn From It

Context:

The story of the three Buddhist Monks is an anime film directed by A Da. The film has got many recognitions including:

• Won the outstanding film award at China's Ministry of Culture.
• Won the Best animated film prize at the first Golden Rooster Awards in 1981.

It is a short and beautiful movie with a wonderful message. A must watch for as managers as well as for all who work in teams.

Film:

Lessons: 

The movie throws light on some important concepts of management. As usual I will try to analyze some of these concepts based on the video.

1) Productivity - It is a measure of how well an operations system functions. In previous posts we have come across the important equation:

Excellence = Efficiency X Effectiveness

We have also seen in much detail the importance of effectiveness and also the role of manager in improving the effectiveness of the system. This video completely on the other hand talks about the importance of efficiency. Efficiency can be described by productivity ratio which is Total output/ Total input. 

Different processes have different efficiency levels. One of the important functions of a manager is to optimize the process, improve the work design and try to aim for the most efficient process. 

2) Innovation

 We see that even during the fire, when all the monks were doing extra effort, their efficiency level is not at par with the final solution. This it is important for managers to be thought leaders and try to come up with innovative solutions to improve efficiency. One innovative idea can save lot of efforts and improve efficiency.

3) Teamwork

Usually we think that more number of people means more output. But in the movie we can see a new phenomenon that as the number of people (i.e. from 1 monk to 2 monks to 3 monks) increased, output (i.e. number of buckets water brought to the monastery) has decreased.

This has happened because there was lack of co-operation among monks.

But after fire incident their productivity as well as efficiency has increased many folds.

This happened because of

·         Co-operation among team members

Cooperation and trust among team members is must for efficiency. Without cooperation among team members no team can function.

·         Division of labor and division of responsibility

Team members should have well defined roles and responsibility. This helps to increase productivity and decreases the chances of conflict situation.

We can explore these concepts with the help of Football teams.

Football players need to trust on their fellow team mates and pass on the ball to others as per the situation demands.

Also we see that there are well defined roles like Forward, Midfielder and Defender.

Though these roles are not rigid, they help players to focus on particular area of work and improve their efficiency.

 

These are some of my observations regarding the lessons we can learn from the Three Monk film and lessons we can learn from it. I would love to hear your comments/suggestions/criticisms.