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What is Ethics?
Ethics is a body pf principles or standards of human conduct that govern the behavior of individuals and
group, Ethics arise not simply from man's creation but from human nature itself making it a natural body
of laws from which man's laws follow.
Ethics is a branch of philosophy and is considered a normative science because it is concerned with
the norms of human conduct, as distinguished from formal sciences such as mathematics and logic,
physical sciences such as chemistry and physics and empirical sciences such as economics and
psychology. As a science ethics must follow the same rigors of logical reasoning as other sciences.
The principles of ethical reasoning are useful tools for sorting out the good and bad components within
complex human interactions. For this reason the study of ethics has been at the heart of intellectual
thought since the early Greek philosophers, and its ongoing contribution to the advancement of
knowledge and science makes ethics a relevant, if not vital, aspect of management theory. Ethical
principles continue, even today, to have a profound influence on many modem management fields
including quality management, human resource management culture management change
management. Risk management; Mergers; Marketing and corporate responsibility
Ethics is much more than just a collection of values. Values are almost always oversimplifications,
which rarely can be applied uniformly. Values tend to be under defined, situational by nature and
subject to flawed human reasoning such that by themselves they cannot assure true ethical conduct.
Consider the sought after value of employee loyalty. Should employees be loyal to co-workers,
supervisors, customers, or investors? Since it may be impossible to be absolutely loyal to all four
simultaneously, in what order should these loyalties occur? Employers that demand employee loyalty
rarely can answer this question completely. Regarding the inadequacy of values, consider this. ,
Murderers, criminals, and liars all have values, so does this make them ethical? Also, killing can be
either unethical or ethical (such as in self defense) depending on the situation (religious arguments
aside for the moment). For these reasons and more, values by themselves are generally insufficient
measures of ethics.
Real ethics calls for a more rigorous treatment of the subject than most business ethics approaches
take. Real ethics is a process of rational thinking aimed at establishing what values to hold and when to
hold them. Real ethics requires the continuous realignment of values and reasoning patterns in
accordance with ethical principles. In real ethics, we must be ready to adjust our values, thinking, and
behavior to be ethical and to remain over time. Hence Ethics demands a willingness to change. In
organizational ethics we find a metaphysical paradox. Change management requires ethics, and ethics
requires change management. Since both are true at the same time, with each preceding the other, we
can only conclude one thing: that indeed the quickest way to assure poor ethics may be to require fixed
adherence to values.
Real ethics is about ordering the complexities of human behavior in the most useful manner for all

involved. Subsequently, in 'every conceivable human endeavor there exists an ethical component that
either succeeds in achieving usefulness and good for all involved, or fails to do so in varying degrees.
This gap between reality and the ideal state can be expressed as a quality problem and solved using
both ancient and modem management methods.
Ethics Quality occurs when two conditions are met: when a repeatable reasoning process is followed;
and when the outputs of this reasoning result in the intents, means, and ends all being" good." When
the conditions for ethics quality are met the organization becomes capable of preventing ethical failure,
not just catching and punishing it. Without a means of prevention organizations have no means for
controlling its ethics quality. Ethics is awareness and real time detection (before the fact, not after). Both
awareness and detection can be greatly enhanced by basic awareness training, training aids and group
diagnostic surveys. It is a regrettable fact that most ethical failures in organizations are detected well
after the fact making any realistic prevention unlikely.
Poor ethics can be extremely damaging to organizational performance (ref. Enron). When ethical
behavior is poor it taxes operational performance in many visible and sometimes invisible ways. The
tax can be on yield or productivity, which is easily measured. The tax can impose itself on group
dynamics, suppressing openness and communication, which is hard to measure but easily felt. Perhaps
the most dangerous tax is the one placed on risk, which is neither measurable nor easily sensed.
Whether the damage is visible or invisible, poor ethics blinds the organization to the realities of their
declining environment leaving any organization vulnerable to setbacks that could be avoided.
Good ethics on the other hand have a surprisingly positive effect on organizational activities and
results. Productivity improves. Group dynamics and communication improve, and risk is reduced. One
reason for this is ethics becomes an additional form of logical reasoning, increasing the flow of
information, and adding an additional set of eyes and antennae to give the organization needed
feedback regarding how it is doing. Increased reasoning capabilities, coupled with additional
information, is a strategic advantage in any business or organization.
Real organizational ethics is a rational process for exploring all possible behavior alternatives and
selecting the best possible choices for all involved. Real ethics, at the organizational level, goes beyond
personal ethics and values. Real ethics is a collective undertaking, or a team sport, with team like
demands and results. Ethical issues in organizations change complicated very quickly, so much that
even the best trained ethicists often will not know what decisions to make or what ought to be done.
Such times are precisely when the disciplined reasoning of ethics quality pays off the most. Ethical
decisions and their corresponding behaviors in organizational settings are never perfect. However, the
quality of the processes applied, as well as the usefulness of their outcomes. is precise and
measurable with scientific certainty. It is through the process of ethical reasoning that bad things are
preventable and great things become more possible. Organizations need ethics quality not only to
prevent unhealthy behavior but to inspire superior reasoning and performance. It is only through human
nature, and ethics, that we can inspire greater levels of innovation, teamwork, and process
breakthroughs that result in sustainable competitive advantages. Oliver Wendell Holms wrote, "Once a
person's mind is expanded by a new idea the mind can never return to its original form." The same is
true with management and ethics. When managers understand how ethics makes them better, their
role as a manager changes forever. Once ethics is learned we all acquire the ability to see what we
often could not see before. We see that using ethics - the reasoning science - to improve individual and
group performance is what real ethics -and real management- are all about.

What is Operating Culture?

Operating Culture has been cited by numerous quality and change management experts as the leading
constraint in organizational performance. Operating Culture has been broadly defined as "how things
are 'done", "the prevailing climate", and "the organization's values and beliefs." Such definitions are part

of the problem as they are too vague to support any serious management of operating culture.
Management is not only part of the problem, but the ultimate cause of poor operating culture. Often the
very actions managers undertake to achieve managerial control and effectiveness are the same actions
that harm the operating culture and cause the eventual loss of managerial control and effectiveness.
Managing any operating culture requires an understanding of change management theory.
The first rule of managing operating culture is "not to make it worse. " This requires a change in the
very role of management itself - a change away from organizations working to meet management's
requirements - and towards a paradigm where management works to meet the organization's
The second rule is diagnosis: to know what the organization's requirements are before changing
The third rule is to verify that the change enacted actually resulted in the desired change or outcome.
The fourth rule is to correct bad decisions quickly before they cause a permanent and unwanted shift in
the operating culture behavior pattern.
Quality and social science experts have offered definitions with significantly more substance which
managers should focus on. Consider the following:
Patterns of behavior; Crosby
A certain system of values, beliefs, and behaviors individual and team, created within the organization
that is necessary for organizational success. Juran
The gap between knowing and doing; Pfeffer, Sutton
Operating cultures are social forces that flow with respect to the operating environment and their
internal needs to support organizational success. This "flow" eventually finds its
Balance (equilibrium) which is almost always sub optimum to the organizations pure needs. Operating
cultures are always a balancing act between the operating environment, internal needs, and the
organization's needs. Any attempt to force an organization to better meet organizational needs is
insufficient as the social forces will always into a new State or equilibrium. The only way to truly improve
on the meeting of organizational requirements is to alter the entire system to address the environment
and meet internal needs simultaneously with respect to the organization's requirements. To do this
properly one first must have an accurate appraisal of what the environmental factors and internal needs
actually are.
When internal needs appear to siphon energy away from the organization's requirements this is
symptomatic of constraints existing deep within the operating environment. The leading root causes of
these constraints often are tiny recurring ethics failures. Therefore shortest path to removing the
constraints is to identify, target, and remove the patterns of micro ethics failures throughout the
operating environment.
The key is to identify the ethics components within the complex operating culture social scheme. But
how does one identify these things in an unbiased manner? If management is the ultimate cause, and if
the organization itself is in a conspiracy to meet their unmet needs, and if everybody else is controlling
everybody else's environment, which can objectively investigate the matter? Ethics Quality, Inc. is an
objective source to turn to. Our proprietary diagnostics are capable of pinpointing your needs, and our
expertise in training and corrective action will help your organization "unravel" and facilitate productive
change in your operating culture.

Culture Management Essentials

Technology organizations rarely fail because of their technology. Marketing organizations rarely fail
because of their marketing. Manufacturing organizations rarely fail because of their manufacturing.
Failure typically occurs because people could not think, plan, adapt and execute effectively, as a team,
to meet business objectives. This kind of capability is not as talent derived as many think. Instead much
evidence suggests this capability is culturally derived and can be advanced or regressed through

cultural practices.
All the technical expertise in the world is of little consequence if your organization's culture lacks the
ability to support and achieve business objectives. This paper presents theory and methods which
should be useful in helping technology organizations improve their culture's supportive capability.

Culture Defined:
Culture's textbook defmitions range from "the rules of conduct," to "how things are done," to "the
prevailing climate," to "corporate values." When we look for more concrete definitions in business
literature it can be difficult to find definitions that are any better than these. The problem with these
definitions, and indeed with most available business text defmitions on this subject, is they are at best
risky over simplifications, they are often categorically incorrect, and most importantly they are irrelevant
to the task of managing operating culture.
Quality gurus Crosby and Juran offer much more substantial defmitions. Crosby defines culture as
"patterns of behaviors" which suggests some sort of naturally occurring patterns with the possibility of
structure and repeatability. Juran defines culture as "the creation of values, beliefs, and behaviors
'necessary for success," which suggests culture is an entity man creates to meet the needs of the
group at the time. So is culture a natural pattern of behaviors (Crosby) or a man made entity born out of
reasoning and necessity (Juran)? According to a large body of knowledge and my own research; both
themes are true at the same time.

Metrics for Culture:

Beginning with Crosby's and Juran's definitions for culture, and borrowing a metric discovery tool from
the software engineering profession called "goal-question-metric," a body of effective metrics for culture
management can be constructed.
Goal: The goal of culture is to cultivate values, beliefs and patterns of behavior that can best support
organizational success.
Question: How should managers cultivate values, beliefs and patterns of behavior to better support
organizational success?
There are essentially two questions here: one is how to cultivate values and beliefs, and the other is
how to cultivate patterns of behavior. The former depends strictly on ethics, which is the philosophy and
science for determining what values to hold and when to hold them. The latter depends on the social
science paradigm of diagnostics, control and
Change management within complex systems.
Metrics: Therefore the best metrics for managing culture will be those metrics found in ethics and
social sciences. In ethics we have principles, applied forms, and tests. In social science we have
statistics, factors, and performance measures to identify constraints, symptoms and causes. Both
ethics and social science seek to promote advancement and control regression through diagnostics
and prevention.

A Strong Culture Model:

The Org culture model was developed using combinations of ethics and social science factors widely
reported by texts and leading gurus to be important to organizational health. We surveyed hundreds of
employed professionals on 40 factors and formed a database.
Using statistical tools we boiled down 40 factors to 29 based strictly on statistical significance. The
remaining 29 were grouped into five dominant subgroups in order of their statistical significance (these
groups are: ethics, situational leadership, process capability, risk-reward, and satisfaction. These 29
factors within their 5 subgroups consistently account for over 90% of the variation in the regression rsquared values, regardless of the size or type of groups surveyed. ':
Of special interest to me was the weighting of the factors in model significance. Ethics generally is the

most dominant factor and often accounts for half of the model variation alone. Second is situational
leadership alignment, which generally is a distant 21M. Combined, ethics and situational leadership
generally account for over 70% of the variation, with the other remaining 3 factors accounting for the
remaining 30%. I find these statistics particularly meaningful because they are consistent with the "goal
question-metric" line of thinking where ethics and social science were identified as dominant issues.
Since this model was derived from leading texts and studies, some established principles need to be
retained. Of the 5 main factors can be either a cause or an affect of any of the other factors.
Shall of the factors are always resent even though a few appear dominant. Hence, any Planned change
or improvement in one factor should be made with respect to all the factors. 3. Each group diagnostic
should be viewed independently as factor combinations are unique for each group.

Ethics Primer:
Ethics is a branch of philosophy that is concerned with the principles and standards of human conduct.
Ethics arise not from man's law but from human nature itself making it a body of natural laws from
which man's laws follow.
Ethics is a normative science that is concerned with the norms of human conduct. As a science ethics
must follow the same rigors of logic as other sciences. When scientific ethical reasoning is properly
applied ethics becomes a useful tool for sorting out the good and bad components of complex human
interactions. At this level ethics is about determining what values to hold and when to hold them.
Because ethics is a science it creates new knowledge and applies this knowledge to support decisions.
Ethics is a rational process for exploring all the possible behavior alternatives and selecting the best
possible choice for all involved. This rational process builds from established foundations and principles
to construct repeatable forms of ethical reasoning. Ethical flaws can be found at the foundation level,
the principle level, or at the application level. When ethics are applied to advance organizations this
branch of ethics is considered "organizational ethics."
Foundations: Ethics is a critical link between technical applications and four foundations of
organizational advancement: human nature, logic, utility, and transactional success. All technical and
business decisions can be analyzed and tested against these foundations using ethics tests.
Principles: Ethical reasoning builds from a body of foundations and principles into logical applications.
Here are a small collection of principles that apply to organizational ethics.
1. Natural Law: Laws that arise from human nature itself, and from which man's law is derived. It is
generally believed that the closer man's law approaches natural law the more efficient the social system
will be.
2. Values: Ethics is a rational process for determining what values to hold and when to hold them.
Therefore, fixed adherence to values ignores ethics and promotes unethical behavior.
3. Change: Ethics demands a willingness to change, and change demands the application of ethics. In
order for values to remain principled they must be subject to change.
4. Ethical process quality: The principle that ethics is at its best when intents, means, and ends,
individually and collectively pursue a greater good.
5. Greater good: The desired state where each decision seeks to improve on the previous decision in
its pursuit of alignment with Natural Law (the foundations of human nature, logic, utility: and successful
transactions). Ethics seeks to order the complexities of human. Conduct in the most useful manner for
all involved.
6. Linkage of Logic and Utility: Doing good is more rational and useful than doing bad, to know good is
to do good, and those who do bad do so largely out of ignorance (plato). Ethics is a logical outcome of
human nature and it is useful because it is logical (Aristotle).
7. Forms: Principles and applications can be constructed into forms that can be applied consistently.
Lower forms include Egoism (selfishness), Darwinism (might makes right), and Machiavellian (double
standards). Higher forms include the law, Proportionality (Garrett), Pleasure Calculus (Bentham), Social
Objectivity (Rawls), System Quality (Deming), and Transactional Efficiency (Pareto). Prima Facie

Duties by Ross include keeping promises, gratitude, justice, helping others, not harming others, and
self improvement. Socrates and his knowledge duty says one can never know anything absolutely and
we must do ones best to know as much as possible before making decisions that affect others. Kant's
categorical imperative says one should do only what they would encourage others to do (lead by
8. Situational vs. Constant Application: Some forms are universal regardless of time and place, while
other forms are completely situational and vary. For example, lower forms generally are bad, higher
forms generally are good. And duty forms generally are situational.
9. Forms Algorithm: Forms are best applied when ordered in a sequence that minimizes process flaws
and maximizes success. For organizational ethics a superior algorithm is to reduce lower forms first, as
these corrupt the other duty and higher forms. Applications: When forms are organized into an ordered
sequence, or a process, it becomes a branch of applied ethics. One effective and repeatable
application for organizational ethics is the following three step process. First, detect and prevent all
lower forms. Second, consider the most applicable duty, resolve any dilemma, and make a selection as
this establishes the general decision direction. Finally, refine the duty decision using highly form in
proportions with respect to the needs of the organization. The order of this three step process is
supported by both ethical principles and social science evidence. Ironically, many attempts in
organizational ethics begin with the opposite order, with higher forms being focused upon first. This is
simply a Non Secquitur fallacy of reasoning. The Org culture Model's approach of addressing lower
forms first has not only proven itself to be an effective and repeatable application in many field tests,
but it serves as robust evidence that both ethics and social science are at their best when considered
Ethics Math: I developed a math model for this application. (See appendix 2). For every possible
decision there are nearly 50 billion ways a decision could be made, of which only about 360,000 are
theoretically good. By eliminating the lower forms first over 99.986% of all the possible bad decisions
are eliminated, leaving only 7.2 million possible bad decisions. Conclusion: The removal of Lower
Forms first effectively takes any decision to the six-sigma ethics quality level.
One of the greatest contributions of the Org culture Model is the discovery of the importance of ethics in
operating culture. Because of this, we know that one of the surest ways to improve cultural capability is
to provide training and coaching in organizational ethics.
Situational Leadership:
According to Dr. Paul Hersey in his book The Situational Leader there are four distinct leader styles and
four follower styles. From this 4 x 4 matrix there exist 16 possible alignments, of which only 4 are good.
Situational leadership seeks to assure that proper alignments occur for each task with each follower.
In accordance with the table in Appendix 3, S4leader behavior needs to be matched with R4 follower,
the S3 with the R3, and so on. When leaders do not match their styles to the appropriate readiness
level of the follower gaps occur that have been proven to hurt performance. Our studies have shown
that high gaps in situational leadership correlate highly with deficiencies in each of the other 5 culture
Situational Leadership is the ultimate social science metric. It follows a sound algorithm, is repeatable,
and provides immediate feedback regarding the level of advancement or regression in readiness by an
individual for any given task. Situational Leadership is also an excellent tool for personal and leadership
development. Gaps between leader style and readiness level can cause instability and failure in the
other 4 main culture factors, ethics, process capability, risk-reward, and satisfaction.
Organizations can promote improvements in their cultures by providing training and coaching in
situational leadership.
Social Science:

Social sciences study the performance of people systems and how they can be predicted, controlled, or
improved. Examples of social sciences are economics, psychology, sociology, political science, quality
control, marketing, and all fields of management. Social sciences use- statistics to isolate, control, and
improve key performance factors. One aspect of social science that drives the need for diagnostics
.and controls the phenomena of advancement and regression. In all social sciences there are things
that advance and regressed performance. Unless both conditions are known in real time there is little
that can be done to proactively improve performance. Fortunately much is known about the causes of
social system advancement and regression.
Advancement: Causes of social system advancement are capability or readiness, willingness or "buyin," and confidence or security. Organizations that maintain strong process capabilities, have high levels
of consensus, and have tasks performed by individuals who are confident and secure, have a strategic
advantage over other organizations that do not have these internal strengths.
Regression: Causes of social system regression are the inverses of those causing advancement.
Reductions in capability or readiness, reductions in willingness, and reductions in confidence or
security, all can cause performance regression. Regression can be triggered by pressure, stress, or by
a regression of another factor. Regression, if not reversed, can develop into severe forms of culture
failure such as Groupthink or Abilene, where catastrophic failures to individuals and to the organization
become more probable. Causes can be diagnosed and expressed in terms of the five culture factors:
ethics, situational leadership, process capability, risk-reward, and satisfaction.
Two common symptoms of regression are resistance and frustration. It is an unfortunate fact that many
managers consider these causes and expend a significant amount of resources trying to fix - or punishresistance and frustration.
Resistance is nothing more than a natural response to problems encountered with an idea or a
decision. Resistance is information first, and behavior second. Resistance reveals one of two things:
either there is an ethical flaw causing natural resistance, or there is a transactional loser who is
attempting to minimize their losses. In either case, both conditions are preventable and correctable in
most instances.
When resistance is viewed as bad behavior first the potential value of the information it represents can
easily be lost. When managing culture, resistance needs to be viewed as information, and the
information must be put to fruitful use. Treating resistance as a threat that needs to be overcome with
force is a distraction at best, as the force can be viewed as abusive hence promoting more frustration
and regression, which ironically can lead to even more resistance. Force can suppress resistance but it
can never cure it. The best way to deal with resistance is to prevent it through ethical reasoning.
Situational leadership is ideal for generating feedback, like a control metric, so resistance can be
detected and the decisions refmed before they can do damage to the culture.
There are four common symptoms of frustration:
1. Aggression: When someone acts aggressively towards a source of frustration, or towards a nonsource (deflection).
2. Regression: When a process, individual or group deviates from expected behavioral or when
performance declines.
3. Fixation: When individuals form into cliques or social groups to escape or to seek protection from the
unpleasant aspects of a social system.
4. Resignation: When individuals give up trying to win within a difficult social system. Resignation can
range from an emotional distancing to physical remove from the system. The key to all social system
management, ethics management, and culture management in general, is to look past the symptoms of
failure and to focus on the root causes. By focusing on the 5 culture factors of ethics, situational
leadership, process capability, riskreward, and satisfaction managers are automatically guided towards
causes and away from symptoms.
The key to social science management is detection and prevention through timely diagnostics. The

more an organization invests in timely diagnostics, the more capable the organization will be at
managing regression and advancement. Formal metrics from SPC, six-sigma, or enterprise information
systems can be very effective at detecting and preventing technical problems, however their ability to
detect and prevent cultural' problems are more limited. Ethics and situational leadership, though less
formal, are especially effective at detecting and preventing culture failure.
Cultures are driven by transactions. All internal and external transactions either meet the basic needs of
the participants, or they fail to do so in varying degrees. The degree of cultural nonconformance can be
measured through the 5 culture factors.
The Italian economist Alfredo Pareto defined the perfect economic state for any
transaction (today referred to as Pareto Efficiency) as" the state where at least one party - 131eariv
better off, most parties are as well off, while no party is clearly worse off." This termination of the "winwin" transaction is the cornerstone of all culture management. It is the intent, means, and ends of
organizations transactions that ultimately determine the cultural capability within the organization.
How transactions are conducted can be just as influential to a culture as the transaction itself. For
example, a transaction that is constructively proposed with a "positive sandwich" technique (say
something good, offers the proposed transaction, and then closes on another constructive thought) has
been proven to produce better results than other variants. If you insult the prospect, propose the
transaction, then threaten them if they do not agree, damage to both the transaction and to the
transactional progress (culture) can be predicted. Our studies throughout many organizations reveal
that many cultural disorders are caused precisely by such misapplications of transactional power.
All changes in cultural health, whether they are advancements or regressions, are precipitated by
transactions. Therefore, the shortest path to a stronger (or weaker) culture is through the kinds of
transactions that are occurring. Make them win-win, and pursue them constructively, and the culture will
Summary: The Role of the Manager in Culture Management
Culture management begins and ends with the basic idea of how each manager perceives their role. If
this role is perceived to be void of culture management responsibilities the culture will be weak. If
culture management responsibilities are ingrained into all management positions, and if upper
managers lead accordingly by example, the supportive capability of the culture will be strong. The
following summarizes some of these necessary managerial responsibilities:
1. Accept culture management responsibilities: The managerial role is not just to meet the boss's
requirements, but to help subordinates and coworkers cope and succeed. The manager is not only
responsible for getting work done, but for developing and maintaining the work environment by
maintaining the 5 factors, especially ethics and situational leadership.
2. Manage the ethical components: Detect and eliminate lower forms. Use the ethical reasoning tools to
determine what values to hold and when to hold them, while avoiding strict adherence to any set of
fixed values. Support duty selection through improved information flow and open dialog. Refine
decisions using higher forms.
3. Manage the social science components: Promote advancement and prevent and control regression
through the simultaneous focus on the 5 culture factors of ethics, situational leadership, process
capability, risk-reward, and satisfaction. Use statistics to diagnose, control, prevent, and advance where
practical. Use situational leadership to detect and prevent culture failures.
4. Focus on causes. not symptoms: Avoid over reactions to resistance and frustration. Shift your focus
to the 5 factors which are most likely where your true causes are.
5. Improve transactions and transactional processes: Seek Pareto Efficient content and outcomes, as
well as constructive approaches using positive "sandwiches."

Business Ethics: Are they Important?

Leading business schools and management experts have stressed the importance of business ethics in
the management. They have stressed the risks associated with blatant ethical failures such as large
legal judgments, prison terms, anti-trust litigation, fines, lost sales, good will, etc. They have also
stressed the moral need for organizations to do what is right for moral purposes alone. While these
reasons are all legitimate they miss the biggest reason why business ethics are important:
organizational performance.
Business ethics as a field of management has been stuck in "neutral" or "external failure mode" for
decades. In this mode business ethics seeks to address only the blatant issues at hand, especially
those which are associated with high external failure costs. The reality is this is only the tip of the failure
cost iceberg. The largest failure cost component in business ethics is actually the internal failure costs,
or the failures that go on routinely within the organization every day, which go largely unnoticed and
The leading causes of many organizational problems -customer dissatisfaction, employee turnover,
ineffective quality improvement and training efforts, failed mergers and technology projects: weak
innovation, and failed product development _ all have been linked as much to failures in the operating
culture as all other factors combined. Operating culture can be attributable to over half of all
documented Quality Costs (Costs of Poor Quality). If Quality Costs for world class organizations run
between 10 and 15% of total sales revenue, the associated operating culture/ethics component in the
best world class companies is costing companies billions annually. If the average organization is
running Quality Costs of20-25%, the associated operating culture/ethics component is so significant it
may pose an extraordinary opportunity for improvement or an imperative for mere survival.
Most quality improvement projects deal with visible processes such as discrete operations. It is entirely
possible to address the processes but still have major unresolved issues, especially people issues. If
people do not want to cooperate and work together, or if tensions are high, process improvement
becomes increasingly difficult. These people issues often are the result of recurring "mini ethics
failures" that need to be prevented. There is a human tendency in management to seek single (special)
causes for failure when multiple, systematic (common) causes are at work. In such instances blaming
failure on "poor leadership," "poor employee execution," or "market externalities," may be convenient
politically and identify scapegoats but in reality they rarely fix, change, or improve anything. A major
(common) root cause of sub optimum performance in organizations can consistently be traced to
patterns of business ethics failures within the operating cultures. The ability of organi7.ations to
manage ethics at this micro level is a process capability that yields significant economic returns. This is
what Ethics Quality is all about.
Ethics and the Emergences of World Trade
The emergence of world trade is revealing much to us about how to succeed in global economy. But to
understand the global marketing we must learn to think like people first and business executives
second. This of course seems to be easier said than done. Everywhere we look our senses are
bombarded with corporate reasoning $at resembles "intellectual incest" more than logic. First we are
bombarded by boardroom news releases and management consultant incantations that progress
requires "strategic positioning" such as the formation of trading blocks, the acquisitions and mergers of
leading brands, the consolidation of distribution systems, or the establishment of restrictive supplier and
customer alliances, just to name a few. Since these strategies are so popular they must work, right? Do
not be so sure of this.
A closer look at world trade reveals that these developments are unsustainable surface tactics at best
and distractions at worst. The real strategic developments, which will carry the most sustainable

advantages, are found in the underlying background factors of technology and human behavior. As the
explosion in information and communication technology brings people closer together in world terms,
the power behind global business shifts from structural systems to people systems. As people systems
emerge and interact with other people systems a powerful invisible hand extends its reach to influence
whom the new winners and losers will be. This invisible hand is our system of ethics.
Our system of ethics forces people systems to develop quality in their behavior. Acting as a filter to
remove unwanted behavior while retaining and developing good behavior, this filtering process is
achieved through the pursuit of four attributes all human societies strives for:
1. Logical processes and internal consistency.
2. Coherence with other strong theoretical positions.
3. Utility for individuals, groups, and humanity.
4. Transactional success in a repeatable social system.
When applying the system of ethics we quickly find ourselves doing things differently, and these
differences will open doors for world trade.
Our system of ethics forces us to conduct ourselves, as we would have others behave. If we choose to
compete fairly, others will be encouraged to do the same and trade will be a controllable enterprise
where marketable products and services thrive in predictable ways. Conversely, if we choose to reserve
certain advantages only for ourselves at the expense of other trading partners, our outcomes at best
will be uncontrollable as the market will react to our trickery with trickery of its own resulting in lost
opportunities for the system as a whole.
Our system of ethics forces us to think in terms of quality, in a global economy no sale is just a sale. In
a global economy every sale is linked severely to the endless chain of world suppliers who also
participate in that sale. In this economic environment any degree of non-quality passed along to a
single customer creates a ripple effect of failure costs throughout the world system. Even though the
initial poor quality did not harm the original seller financially in that instance, a much greater harm was
passed along to society and the world. Poor quality by others harms us all every hour of every day.
Knowing this, our system of ethics requires us to do quality all the time, not just when it pays us
immediately to do so.
Our system of ethics forces global traders to respect the ways of others. Before any significant trade
can be consummated there must exist a certain mutual interest, respect, and trust which underlies all
trade. There must exist the possibility of transactions, which meet the needs of both parties, not just
one party at the expense of the other. There must exist a mutual respect for the ways of each so that
neither will intentionally nor unintentionally offend the other. For trade to occur there must be trust
between trading partners. Each party must know the other is committed to the relationship, that stable
operating environments of law, civil order, and commerce will be maintained, and that problems which
arise will be resolved by a due process which is fair to all. Mutual interest, respect, and trust are also
central ingredients of people systems, and where there are people systems the power behind the
people systems invariably will be their ethics system.
Therefore our success as world traders in the long run will not depend on the structures we organize
around as they are shallow, tactical and unsustainable at best. Our success will follow from strategies
that focus on the quality of our people systems and the faithful use of technology and ethics which
support them.
Ethics Failures: What do they really cost businesses?
There are two kinds of ethics failures: moral and economic. Moral failures mayor may not result in an
economic cost. For moral purposes alone many ethicists argue that strong ethics standards are needed
for a healthy society.
Economic ethics failures can easily justify an ethics management program. Economic ethics families

are grouped into two categories: external and internal. Most ethics policies are directed toward
preventing external failures such as legal liabilities, safety risks, theft, or any negative response from
parties outside the organization. External failures are significant in their own right and cost companies
billions every year.
The greatest economic benefits however of effective ethics management can be found in the internal
failure category. These "micro" ethics failures rarely are visible on the ethics policy radar screens and
typically do not result in external failure costs. They are the little noticed behavior patterns in the
organization's social system, or operating culture, that result in constraints to operating performance.
These little failures are responsible for over half of all Quality Costs, or 5-15% of all operating costs.
Using these conservative estimates, the internal cost of poor ethics can be the single largest quality
cost item in many firms.
So what do ethics failures cost companies? The answer is "much more than they realize, and certainly
more than they can afford.
What is Ethics Management?
Ethics Management, when done correctly, is a comprehensive program that cominuous,' improves
underlying ethics processes (thinking and behavior patterns), not just some high visibility issues and
ethics policies. Many organizations spend enormous sums on training and quality improvement
initiatives from TQM and ISO-9OO0 to Six Sigma, along with countless other programs as well, without
ever addressing the leading constraints to quality or performance improvement, which are ethics
failures within the operating culture.
After the easy fruit is gleaned from a new technology or process, all which is left to improve is the
people themselves. But people are more than just a collection of skills and capabilities. People are also
a "people system" with a process capability of their own. This people system is also referred to as the
social system or the organizational culture of the firm. This culture normally is so powerful that it
ultimately has more impact than management regarding what, where, and when things get improved.
Hence the key to significant improvement has been and always will be the supportive capability of the
culture to manage the improvement. This culture component has a unique relationship to ethics. It not
only benefits from ethics management, but is utterly dependent on it! Ethics management, when
approached in a quality manner, identifies the ethics needs before training or p-policy adjustments ever
begin. The arbitrary imposition of an ethics policy without regard to the specific ethic's needs of the
organization is considered by many ethicists and social scientists as a very low probability strategy for
improving ethics or preventing poor ethics. Business organizations must _o beyond ethics ...policies
and embrace real ethics management at the organizational level, using professional management
methodologies, to have any reasonable expectation of improving ethical behavior. Jlisra15OUi
anywhere one goes one will find most ethics policies are at best jokes among the employees, and at
worst trip wires - or pretexts to shoulder blame. This is generally the result of such an arbitrary
Ethics Management, when done right, accomplishes more than just improving ethical behavior on some
issues. 'Ethics management addresses the underlying root causes of unethical behavior. Since things
that cause unethical behavior also constrain organizational performance, solving internal ethical issues
directly benefits operating performance as well. Ethics, utility and successful human interaction is
closely interrelated. In fact they are so closely interrelated it may be impossible to consider either one in
isolation of the other two. Therefore, in order for any of these factors to improve, they must all improve,
and if any do not improve, chances are neither really improved. A common sense question could be
asked: "Is it possible to improve ethical behavior and not improve utility and successful human
interaction?" The answer is: "Maybe, but not likely." There are instances where there may be an ethical
imperative, such as obeying the law that appears to constrain both utility and the needs of the group.
However, when looked at more closely, unless it is clearly a bad or unjust law, it can be argued that the

law protects and prevents social failures, for society at large and for the group, hence the group itself is
better off following the law. Perhaps, in limited cases, in the short run, and without regard to an ongoing
social system, this question can be argued successfully at the metaphysical level by highly trained
philosophers. But because most business ethics
Issues arise in an ongoing social system; it is highly probable that any improvement in ewes will
positively affect utility and successful human interaction as well. Therefore, in managing business
ethics, the odds bet will be "against" this question. United (with utility and successful human interaction)
-ethics stands- divided it falls.
Our Ethics Quality approach to ethics management seeks to prevent ethical failures by addressing their
root causes. The causes of ethical failures typically are not isolated events (or special causes) as most
ethics policies would label them. Instead they generally are systematic (common cause) failures that
arise from patterns of reasoning and behavior that are embedded in individual and organizational
routines. And since operating culture patterns are significantly more powerful and more influential than
individual values, the best logical way to permanently fix unethical reasoning is to address it at the
operating culture level first, and at the individual level second. This should be the objective of ethics
Our Ethics Quality approach uses diagnostics to identify the strengths and weaknesses in the
organization's ethics system and directs training and corrective action resources precisely to those
areas where the needs are the greatest. By focusing on the organizations needs, and not just on a
policy, ethics management removes constraints to performance, creates a more supportive operating
culture, and reduces risks of large scale ethics failures in the process.
How Does Ethics Management Improve Performance?
Ethics management improves performance by improving the efficiency of the social system, people
system, or culture, in the organization. Ethics management prevents two kinds of ethics failure. One
involves constraints that are generated routinely all the time, as though they are a fixture in the
everyday system. These common causes are preventable through training and program development.
In other cases special causes can create constraints sporadically on a situational basis. These can be
prevented through detection. Ethics management improves performance by targeting and removing
both types of causes, reducing the cultural constraints throughout the social system.
An organization can be well intentioned, and be highly committed to its ethics policy, and still suffer
from poor ethical processes which are incapable of preventing common and special cause ethics
failure. Finding the causes are not easy, and usually require professional diagnostics. When these
causes are identified and corrected, ethical processes improve and performance improves too.
There is a strong statistical correlation in our diagnostic model between improved ethical processes and
performance. Our findings are in no way unique either. Similar empirical evidence exists in a variety of
extensive studies in organizational behavior and related social sciences, and our findings are consistent
with many of the world's leading management gurus and philosophers. No matter what you thought
ethics was, there is one essential fact that is most meaningful to any business organization. When real
ethics are improved, utility and social efficiency are improved also.
Ethics Policies: Are they Important?
Ethics policies are like table spices. They are very useful when they are mixed correctly into the right
recipes. They can ruin a dish if mixes incorrectly. And they are only a. compliment_-and never a
substitute - for the underlying food they are intended to enhance.
To be useful ethics policies must be designed to meet the specific ethics needs of the organization. For
example_ if the organization needs less heavy handedness and more openness, yet the ethics policy

emphasizes the need for employee loyalty and limited employee use of company e-mail systems, then
the resulting mismatch robs the policy of relevance and effectiveness. No matter how well conceived,
no ethics policy can fix problematic ethics patterns. Good policies can only set standards, and most do
a poor job of that.
Ethics policies are not the most important aspect of Ethics Management. What matters is not the spice
but the quality of the underlying food. Hence it is the thinking and behavior patterns in the organization
that give rise to ethical behavior. These behaviors either are congruent with sound ethical processes, or
they are not. It therefore is the ethical process quality that matters, not the policies or standards they
are supposed to meet. If you do not have an ethics policy that does not mean you are failing in your
ethics management. However, if you have an ethics policy, it is quite important that it be supportive of
the specific ethics processes needed by the organization, and that existing ethics processes are
soundly constructed and aligned.
Ethics policies should do more than just make you appear ethical. They should support specific
"process" requirements and be auditable against those requirements.
How good is Your Existing Ethics Policy?
Nine Attributes of Good Ethics Policy
The first objective of any ethics policy is to facilitate legitimate ethical reasoning activity. It is impossible
to merely glance at an ethics policy and judge its "goodness." The true test of any ethics policy is how it
actually works within a specific organization. The following attributes are frequently missing in weak
ethics policies, and are positive drivers in strong policies:
1. Addressing the "Bit! E" (not just the "Little en). Policies not only need to address compliance issues (the
"Little e") but (the Big "E") issues such as the organization's moral maturity level; the ethical behavior
within operating processes assuring that intents, means and ends are all good; and the meeting of all
stakeholder requirements. The "Little e" is about control, whereas the "Big E" is about prevention,
performance, and quality. Effective policies are more about the "Big E" than the "Little E. It
2: University Ethical policies must be based on universal ethical principles such as The Golden Rule and
The Greatest Good. Core principles must be capable of trumping compliance policies.
3. Sound Logical Reasoning: Most ethical reasoning flaws begin with logical reasoning flaws. Ethics
policies need to reflect a commitment to data driven and logical decision processes, information
sharing, effective dialog and examination. Ethics can not operate without facts and execution between
people. See our training aid Organizational Reasoning.
4. Ethical Examination Skills: Ethical reasoning is a process capability that takes on different forms
throughout the organization's culture. Ethics policies need to reflect a commitment to developing ethical
reasoning capabilities at every level of the organization, with every employee, regarding how to elevate
dialog and reasoning to "right versus right" reasoning modes. Developing and sustaining such skills
require training, practice and rewards. See our training services.
5. Transfonnine: "wrong" to "right" and "bad" to "good:" Good ethics policies promote skills where nonuniversal principles, such as fallacies and lower forms, will be identified and transformed into higher
forms of universal ethical reasoning. The transformation of wrong thinking, wrong actions, and bad
outcomes to right thinking, right actions and good outcomes is the "blocking and tackling" of
organizational ethics. See our training aid 101 Fallacies and Lower Forms. To encourage this the policy
must assure that all employees may freely engage and question the ethics of any action without
penalty. The organization needs to actively solicit inputs from all participants to aid in the identification
of ethical issues. See our Online Group Surveys and Diagnostics.
6. Prevention: Ethical policies need to emphasize the examination process of. identifying "bad" ethical
rationale and transforming them to "good" ethical rationale, as stated in Attribute #5, but with one
kicker: It must be accomplished before the fact. Most ethics policies merely catch wrongdoing after the

fact when many of the failures, if identified earlier, could have been prevented. A good ethics policy
incorporates early warnings and checks and balances, not merely to catch and punish violators, but to
identify emerging risks and prevent ethics failures.
7. Organizational Channel Orientation: Organizational processes and practices impose a dominating
influence on individual ethical behavior in organizations. Ethics policies need to encourage and reward
willingness to adapt values and behavior patterns to improve the organization's moral maturity. Policies
also need to confront processes more than individuals actions, and be more about learning and
changing, than just Compliance. Adherence to fixed values at the expense of a dynamically driven
organizational ethics can itself become a cause of unethical behavior, posing an even greater liability to
the group than minor issues of noncompliance. Moving the entire group to the next ethical level is far
more important than punishing an employee for padding a time sheet by a few minutes.
8. Employee Training: Ethics policies should require uniform ethics training around universal ethical
principles, and training needs to be provided continuously. Most employees need to be exposed to the
ethical principles several times before they can internalize them, and most need to actively practice
them. with the support of fellow workers to develop proficiency with them. See courses: Basic Ethics
Training and Getting Ethics into _ni7'.ations.
9. Leadership by Example: Ethics policies are not tactical or symbolic monuments that executives can
erect and delegate, or worse yet ignore. Ethics policies are only as valid as the commitment
management give to them. Too many ethics policies are relegated to being defector instrument of
control Jevied by upper management to control lower level employees. Management is ultimately
responsible for the level of organizational ethics in the firm, and therefore needs
De held to a hif!her ethical standard than regular employees, not the lower :anoara we too often see
amon corporate leaders. Management's ethics set the tone for the ethics of the entire organization.
Therefore, ethics policies succeed in proportion to how managers lead them by example.
What is Ethics Quality?
Performance Excellence through World Class Ethics Management Ethics Quality occurs when two
conditions are met:
. When a repeatable ethics reasoning process is integrated into the entire organization, and:
When the outputs of this reasoning result in the intents, means, and ends that are "good" for all
Here are some key concepts of ethics quality that may differ from many "policy" approaches to
organizational ethics.
1. Ethics Quality is a process capability that is directly linked to organizational performance. The ethics
quality process is based on universal principles that can be applied in a repeatable manner by most
people and render reasonably similar results.
2. The purpose of Ethics Quality is to apply universal principles in reasoning, not just policies, so the
organization, at all levels, can determine on its own, on an ongoing basis, what is "right" and "wrong"
and "good" and "bad" for them and others.
3. Ethics Quality seeks to integrate ethics into the complex social or cultural system within the
organization. It is never enough for senior management to just impose their ethics from the top down.
Ethics policies tend to treat ethics separately from other functional areas of the firm, and this
separateness all too often renders ethics meaningless. Ethical behavior must be integrated into
everything and be organically developed at all levels to be useful to the organization and all involved.
4. Ethics Quality provides organizations with a big incentive to be ethical: It boosts performance! While
most organizations consider ethics programs and policies a cost of compliance, ethics quality is actually
a money maker, contributing to productivity, customer and employee satisfaction, risk management,
and motivation. Make something costly and companies will do it a little. Make it free and they will do it

when they have time. Make it a money maker and they will do it all the time and truly bring ethics into
their organization. This is what Ethics Quality does.
5. Ethics Quality facilitates organizational change. It not .only helps identify what ought to be changed
and how they ought to be changed, but it makes an organization more capable of managing change
and improvement. Organizations that continuously improve invariably have stronger ethics systems
than those that do not.
In brief, Ethics Quality goes beyond the scope of most ethics policies and programs to develop a viable
ethics system within Oq! 3ni7.3tions that immove intents. Means and outcomes for all involved.
Ethics policies, on balance, are good for organizations but are limited in what they offer. Ethics
programs add training and heightened emphasis and are a step better. Achieving a fully integrated
ethics in the organization, or an Ethics Quality, is the moral and economic winner, and is the best ethics
management any organization can do.
Why Pursue Ethics Quality?
When organizations pursue "partial ethics for some people some ofthe time" (the scope of most ethics
policies) the resultant change in moral behavior is often mixed and the link to performance
improvement and business success is often weak or non-existent. However, when organizations pursue
"system wide ethics" incorporating logical reasoning, human nature, and utility requirements, the
resultant change in moral behavior, performance improvement and business success is often
significant. The best reason for upgrading from an ethics program driven by policy to a program driven
by process quality is, in a word, results.
There are three reasons for pursuing Ethics Quality.
1. Ethics Quality puts usefulness first, not last. This assures management buy-in and organization-wide
2. Ethics Quality requires performance improvement. This assures that ethics is used
organizational objectives.
3. Ethics Quality is a measurable process capability. This enables objectivity and continuous
What does it Cost to Do Ethics Quality?
Ethics Quality is an investment in prevention that offers a swift and certain payoff and is economically
justifiable in any organization that needs it. The costs are relatively low. Out of pocket costs for
diagnostics, training, training aids and internal management time, even if all were purchased at once
and for every employee still amount to a mere fraction of what ISO certification or Six Sigma training
costs organizations. The degree of urgency and investment should depend on the needs diagnosed.
The first question should always be "What are the organization's needs?" Ethics Quality identifies what
is broke, and then provides ways to fix it. Since prevention is always cheaper than damage control and
crisis management, Ethics Quality is an investment that should be economically justifiable in any
organization that needs it.
Ethics and TQM
Total Quality Management is a management approach that originated in the 1950's and has steadily
become more popular since the early 1980's. Total Quality is a description of the culture, attitude and
organization of a company that strives to provide customers with products and services that satisfy their
needs. The culture requires quality in all aspects of the company's operations, with processes being
done right the first time and defects and waste eradicated from operations.

To be successful implementing TQM, an organization must concentrate on the eight key elements:
1. Ethics
2. Integrity
3. Trust
4. Training
5. Teamwork
6. Leadership
7. Recognition
8. Communication
This paper is meant to describe the eight elements comprising TQM. Key Elements
TQM has been coined to describe a philosophy that makes quality the driving force behind leadership,
design, planning, and improvement initiatives. For this, TQM requires the help of those eight key
elements. These elements can be divided into four groups according to their function. The groups are:
I. Foundation - It includes: Ethics, Integrity and Trust.
II. Building Bricks - It includes: Training, Teamwork and Leadership.
III. Binding Mortar - It includes: Communication.
IV. Roof - It includes: Recognition.
I. Foundation
TQM is built on a foundation of ethics, integrity and trust. It fosters openness, fairness and sincerity and
allows involvement everyone. This is the key to unlocking the ultimate potential of TQM. These, three
elements move together, however, each element offers something different to the TQM concept.
1. Ethics -.Ethics is the discipline concerned with good and bad in any situation. It is a two-faceted
subject represented by organizational and individual ethics. Organizational ethics establish a business
code of ethics that outlines guidelines that all employees are to adhere to in the performance of their
work. Individual ethics include personal rights or wrongs.
2. Integrity - Integrity implies honesty, morals, values, fairness, and adherence to the facts and sincerity.
The characteristic is what customers (internal or external) expect and deserve to receive. People see
the opposite of integrity as duplicity. TQM will not work in an atmosphere of duplicity.
3. Trust - Trust is a by-product of integrity and ethical conduct. Without trust, the framework of TQM
cannot be built. Trust fosters full participation of all members. It allows empowerment that encourages
pride ownership and it encourages commitment. It allows decision making at appropriate levels in the
organization. Fosters individual risk taking for continuous improvement and helps to ensure that
measurements focus on improvement of process and are not used to contend people. Trust is essential
to ensure customer satisfaction. So, trust builds the cooperative environment essential for TQM.
II. Bricks
Basing on the strong foundation of trust, ethics and integrity, bricks are placed to reach the roof of
recognition. It includes:
4. Training - Training is very important for employees to be highly productive. Supervisors are solely
responsible for implementing TQM within their departments, and teaching their employees the
philosophies of TQM. Training that employees require are impersonal skills, the ability to function within
teams, problem solving, decision making, job management performance analysis and improvement,
business economics and technical skills. During the creation and formation of TQM, employees are
trained so that they can become effective employees for the company.
5. Teamwork - To become successful in business, teamwork is also a key element of TQM. With the
use of teams, the business will receive quicker and better solutions to problems. Teams also provide
more permanent improvements in processes and operations. In teams, people feel more comfortable

bringing up problems that may occur, and can get help from other workers to find a solution and put into
place. There are mainly three types of teams that TQM organizations adopt:
A. Quality Improvement Teams or Excellence Teams (QITS) - These are temporary teams with the
purpose of dealing with specific problems that often reoccur. These teams are set up for period of three
to twelve months.
B. Problem Solving Teams (PSTs) - These are temporary teams to solve certain problems and also to
identify and overcome causes of problems. They generally last from one week to three months.
C. Natural Work Teams (NWTs) - These teams consist of small groups of skilled workers who share
tasks and responsibilities. These teams use concepts such as employee involvement teams, sewmanaging teams and quality circles. These teams generally work for one to two hours a week.
6. Leadership - It is possibly the most important element in TQM. It appears everywhere in
organization. Leadership in TQM requires the manager to provide an immuring vision, make strategic
directions that are understood by all and to instill values that guy subordinates. For TQM to be
successful in the business, the supervisor must be committed in leading his employees. A supervisor
must understand TQM, believe in it and then demonstrate their belief and commitment through their
daily practices of TQM. The supervisor makes sure that strategies, philosophies, values and goals are
transmitted down through out the organization to provide focus, clarity and direction. A key point is that
TQM has to be introduced and led by top management. Commitment and personal involvement is
required from top management in creating and deploying clear quality values and goals consistent with
the objectives of the company and in creating and deploying well defined systems, methods and
performance measures for achieving those goals.
III. Binding Mortar
7. Communication - It binds everything together. Starting from foundation to roof of the TQM house,
everything is bound by strong mortar of communication. It acts as a vital link between all elements of
TQM. Communication means a common understanding of ideas between the sender and the receiver.
The success of TQM demands communication with and among all the organization members, suppliers
and customers. Supervisors must keep open airways where employees can send and receive
information about the TQM process. Communication coupled with the sharing of correct information is
vital. For communication to be credible the message must be clear and receiver must interpret in the
way the sender intended.
There are different ways of communication such as:
A. Downward communication - This is the dominant form of communication in an organization.
Presentations and discussions basically do it. By this the supervisors are able to make the employees
clear about TQM.
B. Upward communication - By this the lower level of employees are able to provide suggestions to
upper management of the affects of TQM. As employees provide insight and constructive criticism,
supervisors must listen effectively to correct the situation that comes about through the use of TQM.
This forms a level of trust between supervisors and employees. This is also similar to empowering
communication, where supervisors keep open ears and listen to others.
C. Sideways communication - This type of communication is important because it breaks down barriers
between departments. It also allows dealing with customers and suppliers in a more professional
IV. Roof
8. Recognition - Recognition is the last and final element in the entire system. It should be provided for
both suggestion and achievement for teams as well as individuals. Employees strive to receive
recognition for themselves and their teams. Detecting and recognizing contributors is the most
important job of a supervisor. As people are recognized, there can be huge changes in self-esteem,
productivity, quality and the amount of effort exhorted to the task at hand. Recognition comes in its best
form when it is immediately following an action that an employee has performed. Recognition comes in
different ways, places and time such as, Ways - It can be by way of personal letter from top

management. Also by award banquets, plaques, trophies etc. Places - Good performers can be
recognized in front of departments on performance boards and also in front of top management. Time Recognition can give at any time like in staff meeting, annual award banquets, etc.

We can conclude that these eight elements are keys in ensuring the success of TQM in an organization
and that the supervisor is a huge part in developing these elements in the work place. Without these
elements, the business entities cannot be successful TQM implementers. It is very clear from the above
discussion that TQM without involving integrity, ethics and trust would be a great remiss, and in fact it
would be incomplete. Training is the key by which the organization creates a TQM environment.
Leadership and teamwork go hand in hand. Lack of communication between departments, supervisors
and employees create a burden on the whole TQM process. Last but not the least one recognition
should be given to people who contributed to the overall completed task. Hence, lead by example, train
employees to provide a. quality product, create an environment where there is no fear to share
knowledge, and give credit where credit is TQM organization.
Value Education
Value education is ingrained in every tradition of Indian culture. Yet it is a matter of great regret that
gradually we are losing our value with the result that we tend to become corrupt and hypocrite. This
trend must be checked urgently. Perhaps a major responsibility for the corrective action lies on our
leader in different walks of life. Nevertheless educational institutions can also play a significant role in
the promotion of value.
The ultimate good of human society is the good of all. The idea has been beautiful expressed in one of
our ancient prayers:
Let all be happy and free from disease, let men see well of one another let be no sorrow of
unhappiness in this world
Value education is rooted in Indian philosophy and culture. The Vedas and Upanishads which are the
source of inspiration are full of value education. Value education is imported at every point of life. In the
Vedic period when a shishya completed his education in Ashram, at the feet of his Guru, he was
exhorted by his guru to follow certain values throughout his life, like.
Speak truth; fulfill your duties, never lax in self study.
The central task of value-based education is to develop men of goodwill who do not clear, or steal, or
kill; universal individuals who have as one both self and mankind.
Meaning of the Term Value
In the words of John Dewey, Value means primarily to prize, to esteem, to appraise, to estimate; it
means the act of cherishing something, holding it dear and also the act of passing judgment upon the
nature and amounts of value as compared with something else. A value stands for ideas men live for.
They are the part and parcel of the philosophy of a nation and that of its educational system. They are
the guiding principles of life.
Various Values
The ideals conditions in the Constitution are: Socialist, Secular, Democratic, Justice, Liberty Equality,
Fraternity, Dignity of the individuals and integrity of the nation. Naturally, therefore, our values in life
must draw their inspiration from these ideals.

Earlier, the university education commission 1948-49 mentioned the various aspects of morality as:
loyalty, courage, discipline, self-sacrifice and spirituality.
The Secondary Education Commission 1952-53 laid special emphasis on the following values in the
formation of character of the students:
Good Temper
The committee of Religious and Moral Instruction (1959), headed by Shri. Sri Prakash made a Special
mention of dignity of labour, love of humanity patriotism and self-discipline. Moral values particularly
refer to the conduct of man towards man in various situations good manners.
The committee on Educational Integration (1961), headed by Dr. Sampurnanand referred to the mutual
appreciation of the various religious in the country spiritual values, national unityand unity of mankind.
The Education commission 1964 66, under the chairmanship of Dr. D. D Kothari emphasized the
inculcation of the values of cooperation, and mutual regard, honesty and integrity, discipline and social
responsibility. It also stressed the development of scientific temper of mind, respect for manual labour,
capacity to put in hard and responsible work, respect for and proper pride in the past, faith and
confidence in the future, national consciousness, spirit of social service for promoting social and
national integration.
Equally essentials are values which help to make democracy a way of life and thereby strengthen it as
a form of government; readiness to appreciate others point of view and patience.
Value oriented school education (1972), a publication of the NCERT mentions these values: (i)
Couragem (ii) Truth, (iii) Universal Love, (iv) Dignity of Manual work, (v) Service, (vi) Cleanliness, (vii)
Purity, (viii) Courtesy, (ix) Peace and (x) Joy.
The Curriculum for the Ten-Year School: A Framework, (1975) prepared by the NCERT mentioned
theses values: Cooperation, initiative, leadership, kindness, honesty fellow-feeling, courage,
truthfulness honesty, and sincerity.
Values in Alphabetical Order


Appreciation of cultural values of others
Consideration for others
Concern for others
Common cause
Common good


Democratic decision-making
Dignity of the individuals
Dignity of Manual work
Forward look
Good manners
Hygienic Living
Kindness to animals
Loyalty of duty
National unity
National consciousness
National Integration
Proper utilization of time
quest for knowledge
Respects for others
Reverence for old age
Simple living
Social Justice
Self respect


Social service
Solidarity of mankind
Sense of social responsibility
Sense of discrimination between good and bad
Secularism and respect for all religious
Simple living
Spirit of enquiry
Team work
Team Spirit
Universal truth
Universal love
Value for national and civic property

(Source: Documents on Social, Moral and Spiritual Values in Education, NCERT, New Delhi
Swami Vivekananda mentions the following values:Self-sacrifice, Service to others, Sincere performance; of our duties in whatever position, non-injury,
purity,; personal as well as social such as not yielding to corruption; fearlessness, Cultivation of
emotions, inculcation of patriotism.
Gandhi Ji mention eleven Values of vows. These are Ahinsa (Non-Violence), Satyam (Truth),
Asatyam (Non-thieving), Brahamacharya (Purity), Aparigarha (Non-acquisitiveness), Shariranharma
(Physical Work), Asvada (control of palate), Satyavarat Bhayavarjana (Fearlessness), Sarva
Dharma Sambhava (Looking up a all religious equally, toleration), Swadeshi (Patriotism love of
ones own country) and Sparsha Bhavana (Abolition of untouchables).
A Few Examples of Human Values as Contained in various Religious Control of Anger
Buddhism: One should not give way to anger, but should control it.
Christianity: The mark of a Christian is love, not hatred.
Confucianism: one should so conduct as to avoid hatred or anger from others.
Hinduism: Anger breeds confusion.
Islam: The strong man is only he who controls himself when he is angry.
Jainism: Anger is not for the wise of the religious.
Judaism: Anger Causes strife and destruction.

Sikhism: Anger is the fire that burns me as at cremation.

Taoism: Return anger with goodness.
Zoroastrianism: Never give way to the deadly emotion of anger.
Buddhism: One should make good men his closest friends.
Christianity: All men are brothers. Brotherly love should rule the world.
Confucianism: Friendship and brotherhood are the cardinal virtues.
Hinduism: The good man makes no distinction between friend and foe, brother and stranger but
regards them all with impartiality.
Islam: All men are brother and should live as such.
Jainism: Treat all men brothers and should live as such.
Judaism: God has made all men brothers and they should live together as brothers at all times.
Sikhism: Get together, my brethren and remove all misunderstanding through regard for each other.
Buddhism: One should be faithful to ones duty at all times.
Christianity: One has a duty to god and duties towards ones fellows.
Confucianism: The wise men make duty his aim at all time.
Hinduism: Never falter in doing your duty.
Islam: All men who do there duty will receive a fitting reward from lord.
Jainism: It is a duty of all to be impartial.
Buddhism: God loves the earnest, sincere man.
Christianity: at all times the true Christian is sincere.
Confucianism: Heaven will help the man who is sincere.
Hinduism: The lord does not favor those who are not sincere & honest.
Islam: God knows whether or not a man is earnest in his professions and will deal with all men
according to this knowledge.
Jainism: Clear thinking comes through sincere & earnest effort.

Judaism: The lord will help those who are earnest.

Sikhism: earnest ness is the only basis for true religious acts.
Buddhism: Works and not birth, determines ones place in the world.
Christianity: A men is to the judged by his works.
Confucianism: Not ease, but work is the mark of a good man
Hinduism: The man who does good becomes good.
Islam: Work constantly.
Jainism: We reach the goal of the good life by pious work.
Sikhism: Good works bring man to a clearer knowledge of the Devine.

Need for Value Education

The following are some reasons that may be mentioned in this connection:

1. The progress in science & technology without same time development of moral values could


have serious repercussion in many areas of life. It is very essential that moral awareness is
promoted to orient the progress in science & technology towards the welfare of mankind.
With the general decline of traditional values, some common values should be re-discovered to
unite human beings.
Schools can remain hardly natural so far value education is concerned. Teachers all always
passing on some values to there students whether they are conscious of it or not through there
conduct in and out of class rooms, through there selection of books to be read through their
choice of instructional strategies and so on. The need for a consciously planned value education
program, therefore, is obvious.
There is an increasing moral complexity in the contemporary world, and pupils are expected to
face more complicated decision making situations about issues involving values. They should
be helped in developing the ability to make proper choices in such situations.
It cannot be ignored that the rate of Juvenile delinquency is increasing every where it is a
definite symptom of a crisis which to days youth under goes in the process of personal growth.
In such situation value education assumes a special significance.

Types of Values
Values may be classified as:
Aesthetic values.
Cultural Values
Economic values
Ethical values
Moral Values
Physical value

Religious value
Social values
Spiritual values
Scientific values

Human values broadly speaking include all the above mentioned kind of values. Speaking in a
restrictive sense these include ethical, moral, scientific and social values. It is, of course, very
difficult to draw a clear outline.
In political sphere, we talk of communistic, democratic and socialistic values.
Report of the Moral Education Committee, Uttar Pradesh (1980 82) has observed, To put it
briefly, through comprehensively, by moral education we mean value-oriented education. It
includes not only inculcation of moral and ethical values but also of all spiritual values.
Dr. H. S Srivastava of NCERT has given here types of values:
Personal Values
Neighborly Values.
Community Values.
A UNESCO Joint Study Report (1980) lists the following kinds of values:
Values pertaining to Society.
Values pertaining to self.
Values pertaining to country and the world
- Progress values
The Principals Conference on Value Education, held at Guwahati on 13 14 Feb 1986 classified
values as under:

Values related to the area of communication.

Values related to the area of work.
Values related to the area of service
Values related to the area of citizenship.

Value Related to the Area of Communication

These include: Respect for facts (objectivity), Respect for others view points (listening with
interest), respect for precision, for courtesy in speaking, respect for diversity of view points, earless
ness in expression, courage two express own ones view/faults, respect for reflective thinking,
respect for critical analysis and respect for proper reasoning.
Values Related to the Area of Work
These comprise initiative, resourcefulness, hard work, perseverance, honesty and integrity,
devotion to duty, punctuality, dignity of work, joy in work, responsibility, self-confidence, Team-spirit,
cleanliness, and orderliness.
Values Related to the Area of Service
These consists of compassion, love for all, concern for others, love for home and family, and love
for environment.
Value Related to the Area of Citizenship

Among these may be included: democratic spirit, respect for law, respect for public property, respect
for elders, respect for all religions, (secularism) tolerance of diverse viewpoint, peaceful coexistence, cooperation (mutual dependence), self discipline and patriotism.
Awareness of Certain values in the Context of National Development
The concept of national development is very wide. It includes development in a11 areas of
national development. It covers every aspect of life. It relates to the aspir Citions and needs of the
Important values related to national development are:
1. Values related to the modernization of Indian society.
2. Values related to emotional and national integration.
3. Values related to democracy.
4. Values related to the socialist pattern of society,
5. Values related to secularism.
6. Values related to international understanding and peace. 7. Values related to syntheis betV'!een
culture and science.
1. Value Education in the Modernization of Indian Society & his includes awakening of curiosity,
the development of proper interests, attitudes and values and the building up of such essential skills as
independent study and capacity to think and judge for oneself.
2. Value Education in Promoting Social and Natural Integration. This includes:
(i) Making social and national service an integral part of education at all stages.
(ii) Encouraging and enabling students to participate in community living in the school or college
3. Value Education in Developing Democratic Values. Education should aim at the development of
values of the following type:
(i) Scientific temper of mind.
(ii) Tolerance
(iii) Respect for the culture of other groups.
(iv) Co operation.
(v) Large heartedness.
4. Value Education in Establishing a Socialistic Pattern of Society. The educational system should
provide for:
(i) Developing belief iil equality of opportunity in education.
(ii) Compulsory social and national service.
5. Value Education in Developing Secular Outlook. Following steps are needed:
(i) Introducing instruction in moral, social and spiritual values.
(ii) Providing syllabus giving well-chosen information about each of the. major religions of
the world. This syllabus may form it part of the course in citizenship.
(iii) Encouraging students to meet jn groups for silent meditation.
(iv) Stressing scientific outlook in life.
(v) Presenting before students high ideals of social justice and social service.
6. Value Education id Promoting International Understanding. This could be done by taking the
following steps:
i) Revision of textbooks and elimination of hostile material about other countries.
(ij) Stressing the contribution made by various countries in the progress of humanity.
(iii) Participating in the various activities and programmers formulated.

7. Role of Education in Synthesizing Cultural and Scientific Values. The Education Commission
felt, "We believe that India should strive to bring science and the values of the spirit together in
harmony and thereby pave their way for the eventual emergence of a society which would cater to the
needs of the whole man and not only to a particular fragment of his personality." A scientific outlook
must become part of our way of life and cultural: Science should be seen as a spirit that strengthens
the commitment of man to free enquiry and to the quest for truth as his highest duty and obligation.
Inculcation of Values
Broadly these types of approaches have been suggested:
1. Suggestions/Including Core elements in various subjects.
5. Participation/Experiences Activities.
3. Examples.
It is possible to adopt all the three methods but more reliance should be placed on participation of the
students in various activities and gaining experiences in value education and core elements.

Example of the elders in the home and of the teachers in the school is very conducive to value
formation. Value development should be integrated through the day-to-day activities of the school.
The suggestions given by the Education Commission 1964-66 are even valid today, Indirect
Influence of the Teacher and Direct Participation in Activities.
We attach great importance to the role of indirect_ influence in building up good character. The
school atmosphere, the personality and behaviour of the teachers, the facilities provided in the school,
will have a large say in developing a sense of values. We would like to emphasize that the
consciousness of values must permeate the whole curriculum and the' programmed of activities in the
school. It is Dot only the teachers in charge of moral instruction who are responsible for building
character. Every teacher, whatever be the subject he teaches must necessarily accept this responsibility, He must ensure that in the teaching of his particular subject and in his dealings with his pupils,
fundamental values such as integrity and social responsibility are brought out. The teacher need not,
we can even say that he should not, try to draw put the underlying moral all the time; but if he has given
some thought to the values underlying the scope of his subject and his work as a teacher, they will
imperceptibly pass into his teaching and make an impact on the minds of his students. Moreover, a
sense of purpose should inspire all school activities and must be reflected in the life, tone and
atmosphere of the school. The school assembly;-the curril_..l..1lar and co-curricular activities, the
celebration of religious-festivals of all religions, work experience, teiii:ir']ames-and sports, subject clubs,
social service programmers-all these "Can help in ioculcuhiting-the values of cooperation and mutual
regard, honesty- and integrity, discipline and social] responsibility. These values have a special
significance in Indian society today, when young men and women are passing through a crisis of
character, (Para 8'95).
Direct Instruction of Moral Values
In addition to this indirect approach for inculcating moral and spiritual values, we consider that
specific provision for direct moral instruction in the school programmers is highly desirable. Wc agree
with the recommendation of the Sri Prakasa Committee that one or two periods a week should b_eJ
asi.dejn the school time-table for instructing moral and spiritual values. At the primary stage such
instruction will generally be imparted through interesting stories, including stories drawn from the great
religions of the world. At the secondary stage, there may be frequent discussions between the teacher
and the pupils on the values sought to be inculcated. Whatever be the method of teaching, it should not
lead to moral instruction being divorced from the rest of tbe curriculum or
being confined to a single period. If the values are to become a
part of the student's character, and all-embracing treatment of the

moral way of life is needed. (Para 8.96).

Relation between Moral Values and Religion
There will be natural points of correlation between the moral values sought to be inculcated and
the teachings of the great religions. Stories drawn from the great religion of the world will be most
a2propriate in a discussion of moral values and of problems in life. All religions stress certain
fundamental qualities of chancier, such as honesty and truthfulness, consideration for others, reverence
for old age, kindness to animals, and compassion for the needy and the suffering. In the literature or
every religion, the story of parable figures prominently as a means of impressing an ethical value on the
followers. The narration of such stories by the teachers at the right moment in the programmed of
moral education would be most effective, particularly in the lower classes. (Para 8.97)
At a later stage, accounts of the lives of great religious and spiritual leaders will find a natural
place. Some of these may be included in the study of social studies or literature, but it is essential that
all important religions are represented properly in the programmed. Similarly, the celebration of the
festivals of different religions will afford opportunities for the narration of incidents from
The life history of the leaders of these religions. In the last two years of the secondary school! a place
should be found for the study of the essential teachings of the great religions. (Para 8.98).
Illustrative List of Activities and Value-inculcation
Value/Values to be inculcated
Discipline, National Integration.
Devotion. Peace. Team Spirit.
Cooperation. Good Manners. Sense of Responsibility.
Co-operation. Consideration for
Others. Sense or Responsibility
Love and Respect for Rules.
National Spirit. Patriotism.
7. School Cleanliness
8. Social Service Camps
9. Assisting in Mid-day
Meals of the School
10. Social Service in Fairs
and other Occasions
Value/Values to be Inculcated Love for Cleanliness. Dignity of Labour.
Love for Loyalty. Dignity of Labour. Selfless spirit.
Cooperation, Service-mindedness.
Service-mindedness. Compassion. Sympathy.
Concluding Observations
It must be remembered that the education of values is not something that can be confined to a
particular period or a particular teacher or to the influence of a particular set of activities. It is a project

in which every single teacher and every item of the school programmed has to participate intelligently.
This is a truth which must be accepted by all. Value education is connected with the day-to-day and the
hour-to-hour work of the school.
An educationist has rightly observed:
"The erosion of values is now a national phenomenon, so complex and gigantic that a more
balanced school curriculum, new learning materials and competent teachers alone can do very little.
The task of national development is massive and urgent and no worthwhile achievement is possible
without an upsurge of ethical values, of deanlines's of public life instead of the prevailing cynicism and
corruption, and genuine practice of moral and spiritual values by all sections of our people".
Values (Core Elements) as Specified in the National Framework
The National Policy on Education, 1986 has made a strong plea for initiating curricular efforts for
the promotion of national identity and the cultivation of values as enshrined in our Constitution. The
common core elements of the National System of Education will include the following:
1. History of India's freedom movement.
2. Constitutional obligations.
3. Content essential to nurture national identity.
4. India's common cultural heritage.
5. Egalitarianism, democracy and socialism.
6. Equality of the sexes.
7. Protection of environment.
8. Removal of social barriers.
9. Observance of a small family norm.
10. Inculcation of the scientific temper.
Activities Relating to Cultural Heritage, Nationalism and National Integration
A Varity of activities can be organized for developing appropriate values relating to these areas. In
fact it is very difficult to visuaHse a single activity in isolation. Stil1 these may broadly be mentioned
under the following categories.
National Integration and Conservation of Past
1. The pupils may be involved in learning and singing songs in languages of various regions and states.
2. Students may be given opportunities to learn other scripts.
3. Students may learn at least a few common sentences or words of a few other languages.
4. Students may be involved in the dances of other parts of the country.
5. Students may be encouraged to find good points of things available in other regions.
6. Students may be encouraged to take interest in the historical remains of the past and feel
responsible for the maintenance of such things.
Activities Relating to Appreciation of Our Struggle for Freedom
1.. The students may be told about the sacrifices made By the freedom fighters in the struggle for
2. They may be encouraged to read stories and biographies of great leaders.
3. They may be encouraged to visit memorials connected with freedom fighters.
4. They may be encouraged to participate in debates, speech making and dramas etc., connected with
the subject.
5. They may be encouraged to take up various projects the stamp collecting, picture collecting etc., of

great leaders.
6. National Days be celebrated.
7. Exhibition on various themes of the freedom movement may be organized.

Activities Relating to Respect for National Symbols

1. From time to time students should be reminded of the rules to be observed while hoisting the
national flag and singing the national anthem.
2. Children may be helped to prepare scrap books of flags of those countries which are similar to the
Indian -National Flag. They may be asked to draw these flags, using colour.
3. The significance and importance of the National Symbols may be made clear to the students.
Activities Relating to the Protection of Environment and COD Sensation of Resources
The students may be helped to undertake the study of local environment and collect the following type
of information:
1. What types of natural resources are available in your area?
2. How are these resources used?
3. What type of natural resources is not available in your area?
4. How do you meet your requirements if some of the natural resources required by you are not
available in your locality?
5. Students may be helped to prepare talks, dramas etc., on the importance of conservation of
6. Students may be asked to describe the effects of stagnant pool.
7. Students may be helped to compare a polluted and an unpolluted site in the environment.
8. Labour weeks may be organized to keep the school campus and neighborhood clean and students
involved in these programmers.
Activities Relating to Observance of Family Norms
1. Students may be asked to compare the facilities provided in the same income in two families; one
with large number of children and the other with small number of children.
2. Students may be asked to prepare budgets of small and big families.
3. Students may be asked to find you the effects on the living conditions of the family in case there is an
increase in the members but no increase in income.
1. "Value-education is a way of life." Explain the concept value in this context. Suggest methods.
2. What is intended to be accomplished by inculcating values?
3. What is the outcome of inculcating values?
4. Can we classify the values in water-tight compartments? Give broad types of values.
5. Specify the core elements (values) of the National System
their development in the students.
6. List a few human values common to all religions.

of Education? Suggest measures for

7. Suggest a few activities and their accompanying value development.

Our Educational Heritage

Wide-Spread Education
In ancient India education was wide spread. The standard of education was so high that foreign
students and scholars came to India for receiving education and enlightenment. To use the modern
phraseology, foreigners used to call themselves 'India Returned' as some ofu9 take pride in calling
ourselves 'Foreign returned U.S.A. or U.K. Returned' etc. It is, therefore, no wonder that Dr. F.W.
Thomas, one of the most distinguished scholars has' observed, "Education is no exotic in India. There
is no country where the love of learning had so early an origin or has exercised so lasting and powerful
an influence."
( F.W. Thomas, History and Prospects of British Education in India. Cambridge, George Bell &
Sons, 1891, p. 1).
According to the Encyclopedia Britannica, Vol. 7, "the period... was a most creative period and
metaphysics as well as mathematics and early science made note worthy progress. It was the age of
the Upnishadas and Sutras When new branches of learning enriched the content of education."
In the words of Lord Meston, "At no period of its rustory has India been an altogether
unenlightened country. Inscriptions, on stone and copper, the palm-leaf records of the temples, and in
later days, the widespread manufacture of paper, all alike indicate no only the great knowledge, but
also the common use of the art of writing. From the earliest times the caste of Brahmans has preserved
by oral tradition as well as in manuscript; a literature unrivalled alike in its quantity and in intellectual
subtlety of its contents."
According to a French Scholar Maspero, the Chinese Emperor Ming.ti (A.D. 58-75) sent 18
scholars to India. The names of Fa Hien Tsang, Hieun Tsang and I- T-sing readily come to mind.





Magadba, Kamrupa,
Ayodhya,Vallabhi; Vikramsila, Mithila, Nadia etc 'were famous' all over the world.
It is saId that the University of Nalanda's hostel (Ashram) consisted of 300 rooms and 8,500
students lived there. Teaching staff in the hostel consist of 1,510 teachers and 1,990 menial staff.
(Management of University Hostels by Dr.M.V.
Rajan, 1990).
Notable Features of Education in Ancient India
1. Aim of Education -Self Realization. The ultimate aim of education in ancient India was not
knowledge as preparation for life, but for complete realization of self-for liberation of the soul from
fetters of life, both present and future. That knowledge was" real, which led to emancipation-led from
unreality to reality, from darkness to light, from death to immortality.
Ancient educationist considered' VidJa' knowledge as the third eye of man which gives him insight
into all affairs and teaches him how to act righteously. It leads us to salvation. It provides us illumination

to sbatter illusion. It enables us to realize the true value;'> of life.

2. Free and Accessible. Education was free and accessible to all who-sought it.
3. No State Control on Education. Education was a private affair of the people, managed entirely by
Brahmans. Rulers of the country could subsidies it, if they thought fit to do so, with grants of land or
money. They could impose no conditions or control on teachers affecting their freedom of work.
4. Highly Status of Teachers. Teachers were a highly honoured class honoured even by kings. Kings
rose from their thrones to receive great teachers such a_ Narada, Vashishtha and Vishwamitra. A wellknown Sanskrit verse goes so far as to say:
"The teacher is Brahma. The teacher is Vishnu. The teacher is the Great God Shiva. The teacher
is the Great Brahman (Supreme Divine Soul) incarnate. Bow to that teacher I"
5. Teacher as Parents. Teachers behaved as parents to their pupils and pupils behaved as members
of the teachers' family. The attitude of the pupil was to be one of complete submission.
6. Residential Schools. Teachers and pupils lived together and so Identified themselves with one
another as to able to pay as follows:
"May both of us be guarded? May both of us be protected!
May both of us work together! May the study of both of Us be successful (vibrant with power, radiant
with light)! May we not be rivals to each other! Om, Peace, Peace, Peace".
7. Immediate Aim-Vocational. The immediate aim of education, however, was to prepare the different
classes of people for their actual needs of life.
8. Curriculum. The subjects of IDstn_ction varied according to the vocational needs of the different
classes from the Vedas and Vedangas in the case of Brahmans, to the art of warfare in the case of
Kshatriyas, and to agriculture and trade, arts and crafts in the case of Vaishyas.
9. Method of Instruction. The method of instruction generally consisted of recitation by the teacher
and repetition by the pupil, followed by explanation by the teacher questioning by the pupil, and
discussion between the teacher and the pupil.
10. Individual Teaching. Pupils were taught, individually, not en masse by the class method. Where
pupils were many, the monitorial plan was followed, the more advanced pupils being appointed to
tea<.'h the less advanced.
11. Method of Study. The method of study consisted of listening to the teacher, reflection on what bas
been listened to and its constant revision.
12. Role of Travel in Education. Travel was regarded a necessary to give a finishing touch of
13. Education - Moral, Religious and Spiritual. Education was not for a public examination or for paid
public or private service, as it is generally considered to be at present. It was not merely intellectual. It
was also moral, religious and spiritual.
14. Forests as Centre of Education. The place of education was generally the forest "far from the
madding crowd's ignoble strife"
15. Sanskrit as the Medium of Instruction. The medium of Instruction in institutions conducted by
Brahmans was Sanskrit.
16. Self-Control and Self-Discipline. There was, generally, corporal punishment Self-control or self
discipline was considered to be the best discipline.
17. Wide-Spread Education in Women. In the earlier Vedic and Upanishad times. Girls were free to
go through the Upanayana ceremony, lived a life of celebacy, and studied Vedas, Vedanta and other
subjects among with their brother pupils.
18. Science Education in Ancient India. People were familiar with mining and melal work,

architecture, manufacturing: of gypsum, cement and permanent paints. Vedic science included the
element of astronomy, mathematics, chemistry and biology.
19. Commercial Education in Ancient India. The idea of the scope and nature of commercial
education can be had from knowledge of commercial geography, needs of the people of various
localities, exchange value and quality of articles, and languages spoken at different trade centre were
considered necessary. 1 theory of banking was also included in the course. In the hereditary training
families of high status, such a wide training might have been possible, but generally the knowledge
about commerce and trade was picked up by working in the family shops or trades. There were no
organized commercial institutions, though most of the trades had formed efficient gulds during the first
millennium of the Christian era: Training was usually imparted in the family by the elders in real learning
20. Mathematics Education in Ancient India. Ancient India quite early evolved simple system of
geometry urged by the necessity of accurately laying the open-air sacrificial places. Shulvasutni are the
oldest mathematical works, probably composed between 400 B.C. and 200 A.D. Aryabhata (476-52) is
the first great name in Indian mathematics. To the period immediately preceding him belongs one of the
most significant of human discoveries, the zero, though the name of the discoverer is unknown.
Merits of the Vedic System of Education
The system of education was well-organized. It was suited to the needs of the society. Education
was considered as the greatest gift in ancient India. It was aimed at the development of the personality
of an individual to its maximum extent. Education helped in the realization of spiritual and moral values,
besides preparing (or worldly pursuits. It was freely available to all those who wanted. There was no
system of paying fees as we find it to-day. The relations between teachers and the pupils were based
on love and affection. They were very cordial and intimate. Both were bound by mutual contidence and
reverence. The relationship lasted for life. The teacher's status was very high.
Curriculum was quite comprehensive. Though mainly religious yet it provided for vocations also.
Shortcoming of the Vedic System of Education
1. There was rigidity in instruction.
2. Discipline was very strict.
3. Instruction primarily depended on verbal instruction. It required repetition and encouraged rote
Education in medieval India was not so wide-spread as in Ancient India. However it enjoyed the
patronage of the rulers.
Main Features of the Education System in Medieval India
Following' were the distinguishing features of the Muslim education in India during the Medieval
1. Religion-Centered Education. In themes of S N. Mukerji, "The whole educational system was
saturated with religious ideals which influenced the aim, the contents of study, and even the Qaily life of
the pupils." The pupils acquired knowledge as a religious obligation
2. Pursuit of Various Disciplines. Though education was primarily religion-oriented. It also included the
study of many intellectual activities like mathematics, astronomy, grammar, plity and politics. Art and
literature were also encouraged.
3. No.rms of Behaviour. r\dequate stress was laid on well defined norms of behaviour, pattern of
thought, building up personality. and character of the pupils.

4. I..earned Teachers. Teacl,ers took to teaching for love of learning. They were held in high esteem.
Prof S.N_ Mukerji has observed, "Learning w", prized for its own sake and as a mark of the highs
human development and teaching was never handicapped by;e';tanlination requirements.
5. Close Relation between the Teacher and the Pupils. The relation between the teacher and the pupils
were based on respect and affection, The teachers used to pay individual attention to the students:
6. No Set Machinery for Educational Organization and Administration. The rulers neither claimed any
authority over the educational institutions nor interfered with the management.
7. Patronage of the Rulers The rulers helped in the spread
of education. They built educational institutions and universities. They endowed them with fund; big
landlords also provided financial help for the spread of education. The rulers patronized the men of
8. Teacher Pupil Relationship. In this period also the teacher was respected as during the Brahman or
Buddhist period. There was intimate relationship between the teacher the pupil, although the practice of
living with the teacher was not as common with the Muslims as it was in the care of Brahmanic lIod
Buddhist period. Pupils were expected to serve their teacher and in return got sometimes free food and
always free knowledge from him.
Although a 'teacher did not have many, pupils to teach yet, if there were many, the teacher would
take the help of senior and advanced students to teach the younger or the junior.
9. Discipline. Punishments were quite severe. Truants an_ delinquents were caned on their palms and
slapped. on their faces": Whipping was also quite common. Any form of punishment devised and
thought of by the ingenuity of the teacher was permissible.
10. Vocational Education. Provision was also made for vocational, technical and professional
education. Professor Weber says, "The skill of the Indians in the production of delicate woven fabrics, in
the mixingof,colours, the working of metah and ;Jrecious stones and in all m_nner of technical art_
enjoyed a world wide
celebrity. The fine fabrics, the beautiful shawls, the painted wares and the gold and silver ornaments of
India are ample proof of the fact that there were arrangements for artistic, vocational and technical
education. The. presence of so many magnificent buildings shows that the art of stone cutting had
reached its climax. Feroze Shah Tughlaq maintained a regular department of industries."
Maktab It Was a school for imparting Islamic education.
Maktab is derive from Arabic word 'kutub' (writing), and means
a place where writing is taught, or a place of books. It was generally attached to a mosque. During
Muslim period it was run with the help of well to. do Muslims orce with land or money grants from the
rulers. The students began by studying Urdu, Persian or Arabic. After being abJe tor<:ad the Arabic
scsipt, the students .recited Suras or Chapters of Quran. Memorization and correct pr.onunciation were
emphasised. Special attention was paid to good handwriting. Xrithmetic, conversation, correspondence,
poetry, and good mannl?rs were included in the curriculum. Gulistan' or Bostan of Sadi were generally
prescribed for the purpose of moral education.
.Madrasa. [t was an educational institute for
imparting Islamic education and higher learniJg. Madrasa is derived from Arabic word 'dars' (a lecture)
and means I! place wherec lecture is given. It functioned as cq!lege of higher educatIon where eminent
scholars taught different subjects l5y using the lecture method supplemented by discussions.
Management was usually supported by state grants and endowments. The content of the curriculum
was both religious and secular. Literature, logic, history, geography, astronomy, astrology, arithmetic
agriculture and medicine w_re the secular subjects taught in Madrasa.. Some Madrasas had hostels
attached to them which provided free b8arding and lodging. In som_ of the big tOlvilS like Gopuram
and Khariabad in Oudh, Jaunpur, Agra, Lahore, Multan_ Delhi, Ajmcr and Lucknow
etc., there were arrangements for higher study. Advanced subjects were taught aod students came

from all parlsof India and Afghani,tan and Bukhara as wel1. Subjects like Grammar, Literature, Persian,
Arabic, Geometry, Science, History and Economics were taken up for higher and critical study. Among
other subjects were included Astronomy, Metaphysics, Rhetorics, Tbeology, Logic, Algebra, Arithmetic,
the Art of Administration and medicine etc. Persian was the medium of instruction as this was the court
language. A.rabic was compulsory for Muslims.


"Education in India during the British Government", says Howell, "was first ignored, then violently
and successively opposed, then conducted on a system now universally admitted to be erroneous and
finally placed in its present footing".
(A.P. Howell, Education in British India. Calcutta, Government Printing 1872).
The first phase of education started about 1600 A.D. when the East India Company was
established. During this 'period, christian missionaries came to India and established schools for the
education of tbe Europeans and Anglo. Indians. This phased continued in Jadia till 1813. bestowed
political power on Circumstance the Company by 1857.
The Charter Act of 1813 stated, "A sum of not Jess than one lakh of rupees in each year shall be
set apart and applied to the impro
vement of literature and the encouragement of tbe learned natives of India for the introduction and
promotion of a knowledge of the sciences among the inhabitants oftbe British territories in India."
The Charter Act led to controversies. There were two schools of thought; the Orientalists and the
Anglicists. The Orientalists supported and encourged the study of Sanskrit, Arabic aDd Persian. They
were in favour of mass education and indigenous schools. The Anglicists on the other hand advocated
English system of education based on western learning.
MacauJay's Minnte as the Foundation of tbe English System of Education in India.
The controversy was resolved by Macaulay's Minute of 1835. Lord Macaulay was tbe Law Member of
the Governor General's Council. He favoured the Anglicists. In his minute be observed that it was
possible through English education to bring about "a class of- persons Indian in blood and colour, but
English in tastes, in opinions, in morals and in intellect". William BeD_ick, the Governor General
acc{'pted Lord Macaulay's Minute and passed a Resolution in 1835 "that the great object of the British
Government ought to be the promotion of European literature and science among the natives of India;
and that al1 the funds appropriated for the purpose of education would be best employed on English
education alone."
After Ben tick's proclamation, schools were established for teaching European literature and
science. Preference in Government service began to be given to those who were educated in English
The Despatch of 1854. The Despatch of 18 S4 popularly known as Wood's Despatch after the
name of Charles Wood, the President of the Board of Control, became a landmak in the history of
education in India. It was made very clear that the object of education was the diffusion of European
Establishment of Universities 1857. The establishment of Universities in the Year 1857 was
another landmark in the English system of education in India.
The Hunter Commission of 188Z. The Commission anticipated a diversified instruction at the
secondary stage of education.
The Unive_!ty Commission 1902. The main impact of thisCOInm-ission w;;.s i.';at secondary

schools had to be recognised by the Universities.

Gokhale's Resolution on Primary Education (1913-1914). Gokhale's resolution on primary
education was rejected in the Imperial Council but it focused attention on primary education.
The Sadler Commission or the Calcutta University Commission (1917). It contained the most
comprehensive study of the Indian system ->f education from the secondary stage to the university.
Hartog Committee Report (1929). Its main feature was that it defined the concept of wastage and
stagnation in primary education and suggested remedies.
Abbot Wood Report (1936-37). Two experts Abbot and Wood made recommendations on
technical and general education.
Wardha Report or Basic Education (1935). Gandhiji realized that the system of education
introduced by the English rulers in India did not meet the needi and aspirations of India. He therefore,
evolved a new system of education known as Nai Talim or Basic Educiltion.
The Sargent Report (1944). The Central Advisory Board of Education asked John Sargent who was
Educational Adviser to prepare a Report on Post-War Educational Development. The report contained a
detailed review of the svstem of education and visualized a system, compulsory and free
education for all boys and girls between the ages of 6 and 14, the Senior Basic or the Middle School
being the final stage in the school career of majority of the future citizens.
Main Drawbacks of English System of Education in India
1. It was not related to the needs of India.
2. It was an urban system of education in a rural country.
3. English dominated the curriculum.
4. System of education was too bookish.
5. System was examination.oriented.
6. System was very wasteful.
7. System produced clerks by and large.
8. System followed a single track.
9. System was unplanned.
10. System neglected vocational, commercial and technical training.
11. System was very expensive.
12. System was not in accordance with the needs ofa free, secular and democratic character.
Prof. Aparna Basu of Delhi University has summed up the positive and negative aspects of
English education in India as under.
Positive Aspects of English Education. The introduction of
English education was one of a series of acts which collectively opened the doors of the West to
the East. In every sphere of modern Indian life, though the influence of tradition persists, the impact of
the west can also be traced. Much of the organization of the democratic state, its secular character, the
structure of its institutions and the political principles underlying them are largely European in
inspiration. Similarly, the social reforms in Hindu society, the movements for the emancipation of
women and for the removal of untouchability reflect western influence to a considerable extent.
Negative Effects of English Education. Negative effects' are fairly obvious. The educational system
by building up and educated elite and neglecting popular education helped to preserve and strengthen
the barrier between the upper classes and the masses. The nse of English raised the class barrier even
higher.. The low rate of literacy, the method of teaching, neglect of training of teachers, .
contempt for manual work, emphasis on a literary education. arid neglect of technical education which
was inevitable in Ii colonial context, the creation of a gulf between an elite educated in English and the
masses-all these constituted formidable obstacles in the path of development.


Even before India became free from the British rule, it was felt by the leaders of the freedom
movement and social rdormers that education did not meet the needs and aspirations of the people of
India. It was, therefore, natural that there has been a tremendous expansion of educational activity in
India since independence. On the one hand, efforts have been made to provide more and more
education and on the other hand to bring about qualitative changes in different areas of education.
The first and the foremost educational demand after independence has been that of universal
elementary education in terms of Article 45 of the constitution.
The second important educational demand has been to provide equal educational opportunities
which emerges from India's decision to become a democratic republic.
The third important educational demand has been to provide secular education.
The fourth important educational. demand has been to provide such an education which helps in
the emotional and national integration of the people of India.
The fifth demand has been to provide such an
education which is helpful in developing suitable manpower.
The sixth demand has been to enable individuals enter the world of work, i.e. vocationalisation of
The seventh demand has been to formulate and implement such a language policy which unites
people using different languages.
The eight demand has been to provide adequate educational facilities to the vast number of adult
illiterates in the country.
The last but one of the most important problems of education is to develop moral values of the
Major Commissions and Policies in the Field of Education
In free India, many Committees and Commissions have been appointed to survey the educational
scene and suggest suitable measures for bringing about educational reforms. Mention may be made of
1. The University Education Commission 1948_49 appointed under the chairmanship of Dr. S.
Radhakrishnan, who later on became the President of India.
2. The Secondary Education Commission 1952-53 appointed under the chairmanship of Dr. A.
Lakshmanaswami Mudaliar;ViceChancellor, Madras University.
3. Committee on Higher Education for Rural Areas, 1954. 4. Assessment Committee on Basic
Education, 1956.
5. Committee on Rural Education, 1957.
6. Examination Committee, 1957.
7. National Committee on Women's Education, 1958.
8. Committee on Religious and Moral Education, 1959.
9. Commiltee on the Problem of Student Indiscipline in Indian Universities 1959.
10. Committee on Differentiation of Curricular for Boys and Girls 1961.
11. Emotional Integration Committee 1961.
12. Indian Parliamentary and Scientific Committee, 1961.
13. Committee to Look into the Causes of Lack of Public Support particularly in Rural Areas of Girls
Education and to Enlist Public Cooperation, 1963.
14. Education Commission or Kothari Commission, 1964-66. 15. Committee on School Text Books,

16. Educational Policy, 1968.
17. Comm ittee on School Buildings, 1970.
18. National Committee on Educational Structure, 1974.
19. Review or Ishwarbhai Committee, 1977.
20. National Review Committee on Higher Secondary Education with Special Reference to
Vocationalisation, 1977-78.
21. Draft National Education Policy, 1979.
22. NatioDal Commission on Teachers I (Chattoppadhaya Commission), 1983.85.
23. National Commission on Teachers II (Higher Education).
24. National Policy on Education, 1986. 25. Programme of Action, 1986.
26. National Literary Mission, 1988.
27. National Curriculum for Elementary and Secondary Education: A Framework, 1988.
Expansion of Educational Facilities after Independence There has been a tremendous expansiori in
enrolment and in educational institutions in India after independence.
Entry, annual sequential promotions, insistences on full-time attendance. And almost exclusive use of
full-time teachers). and neglects both no formal and recurrent education. The educational institutions
function in isolation from the community as well as from one another.
2. Institutions of Double Standards. The system maintains a set of double standards. A small
minority of educational institutions at all levels is of good quality and compares favorably with those in
developed countries. But access to them is selective and is mostly a veiled of by the top social group.
This core of good institutions is surrounded by a large, lumber of institutions which are poorly
maintained. Their standard is also very low.
3. Gulf between the Education of the Classes and Masses. It is
Mainly the upper and the middle classes that are the beneficiaries of this system. Sixty per cent of the
population (age 10 and over) which is still illiterate has obviously received none of its benefits. Of every
100 children of six years of age, 70 drop out at an early stage, so that only about 30 complete class
VIII. 70 per cent of the seats in secondary schools and 80 per cent of the seats in higher education are
taken by the top 20 per cent of income groups.
4. Regional Disparity There is a great disparity in the expansion of education in different States and
5. Disparity in Women Education. Women education has greatly Jagged behind.
Transformation of the Education System
What the system needs, therefore, is drastic. overhaul: a transformation of its character, through
the introduction of a modern scientific outlook and other essential measures, to suit our national needs
and aspirations. It is in these main directions that educado_a! reconstruction in India will have to be
vigorously pursued in the years ahead.
Perhaps the most urgent and significant reform needed is to transform the value system. This
transformation will emphasize ethical values and human welfare enriched by science and te_hnology. It
will a\:'o imply the shifting of emphasis from teaching to learing, from the individual to social objectives,
and from mere acquisition of information to the development of skills and character formation based on
knowledge. In the following pages detailed discussions have been made on the various aspects of
educational reforms in India.

1. Describe the main features of the system of education in Ancient India. Suggest a few feature1 of
this system which can be incorporated io the prescot system. .
2. State the;. chief .chac&cteristics of the education ,system during tlit Medieval India.
3. . Elucidate the merits and demerits of the educational system during the British rule in India.
4. What are the educational needs of free India?
Secret of Success: Team Spirit
What is the true_ measure of success, the outer accolades or the inner joy and peace?
Success can be external or internal. Externally, it is the measure of a job well done and the
accompanying recognition from society. Internally, it is a feeling of achievement, satisfaction and
fullness which comes on the completion of a task or the fulfillment of a desire. What is a true measure
of success, the outer accolades or the inner joy and peace?
Success can also be measured by the degree of comfort we have with ourselves. This generally
happens when we live and act in accordance with our intrinsic nature. If we attain what we want and
still find something lacking then we know that either our desire was not desirable or the means .
adopted were not in accordance with nature.
Modem management theory proposes that a satisfied employee would lack motivation and so would
not benefit the company. But to say that dissatisfaction alone is the motivating force is a negative
When people are positively satisfied they want to share their feelings of joy and contentment with
others and work for the welfare of others. Their motivational levels are higher than those of most people
and the opposite happens - they want to do even more and work more efficiently. This is the state of
mind of a Mahatma.
Success should include or embrace all aspects of our life. Some professionals may be greatly. praised
and considered leaders in their respective fields but may be utter failures on the family' front. Some
may be good for the family but be unable to make any contribution to society.
We must be whole individuals, just as God intended us to be. Take the case of a mango seed that grew
to be first a plant and then a tree that gave the world sweet fruit. What did the seed do? It did nothing
but. remain true to its nature.
Why do people want success? Success is associated with fame, reaching the top; with perfection,
wholeness, joy and completeness. Success is an expression of our Self which is Supreme and perfect.
We have this thirst for success because we are that Supreme alone. We want to be great because we
are great. Everyone wants to be perfect, to win.
If we understand all its connotations, our success will not be dependent on anyone's failure or be
gained by pulling someone down. Our joy will not depend on the other's sorrow. We will be
compassionate in the suffering of others and experience true joy in their happiness.
After returning from Lanka Rama was asked how he won the battle and he gave credit to all those who
had helped him, including the monkey brigade. Real success lies in making others happy and giving

credit to the whole team. A true leader carries the team with him.
When Hanuman returned from Lanka after locating Sita, he did not go directly to Rama to give him the
news. He collected all the other monkevs and included them in the successful competion of their
mission.. So that each one of them felt they had been equally involved in finding Sita.
God has made each one of us special and we must believe in our own uniqueness. When we imitate,
the message we are conveying to ourselves and the world is that we do not depend on our own selves.
We must learn to believe in ourselves. If we imitate someone and achieve success, the success will
belong to the other person.
Secondly, we must be independent and do our own work. Seemingly insignificant actions, like tidying
our room, caring for our clothes or keeping a clean bathroom will set us on the path to independence.
Discuss the problems related to stress in Indian Corporate?
Stress is a disease of modern times. It afflicts people regardless of their station in life. Stress is present
in the lives of the rich and poor, literate and illiterate, men and women. Stress is, however, more evident
and -is probably more widespread in technologically advanced countries, and is common among highly
qualified professionals. Stress is of various kinds - physical, emotional and intellectual, and it is
characterized by a feeling of being burdened; of being unable to cope. At a physical level modern
technology and facilities have actually increased workloads' and decreased relaxation. Mobile phones
and laptops have made it easy to carry the office to the home. Emotional stress increases when there is
disharmony and friction in relationships. Unfortunately, the trend today is to take the easy way out people prefer to break away from relationships rather than repair them. Philosophical and intellectual
tensions also add to the stress factor. The answer to stress can be found in the very letters of the word,
'stress': 'S' stands for strength: Physical, emotional, intellectual and spiritual. Physical and emotional
weakness leads to irritability. A strong, healthy body developed through proper diet, exercise and
pranayama techniques helps reduce stress at the physical level. Through satsang and appropriate
learning gained therein, the mind can be strengthened. Love, compassion and friendship are valuable
strength-givers that help us cope with stress. The scriptures say that knowledge of the Self cannot be
gained without inner strength. Rabindranath Tagore, in a poem, prays to the Lord not to remove all
obstacles, but instead, he asks for strength to bear them. Before the start of the Mahabharata war Arjun
was seized with a bout of emotional weakness and he refused to fight the war. Lord Krishna rescued
him by giving him emotional strength.
-- 'T stands for traffic control. We need to regulate and control our thoughts. We can cope with stress
best if our thoughts are orderly and -methodical. Unnecessary accumulation leads to clogging of the
mind. The key lies in being able to live one moment at a time. Eat while eating, work while working,
leave the home at home and the office in the office. Remember, however long we have to travel we can
only take one step at a time. Worrying only reduces efficiency and then even simple tasks cannot be
completed correctly and in time.
'R' is for re-design. We tend to view life and ourselves through our own philosophy. A readjustment or
reorientation in this philosophy increases our capacity to bear heavier loads.
'E' stands for erase: The ego, anger, fear and jealousy are negative emotions that reduce efficiency,
leading to mental weakness, causing stress. Too much emphasis on the ego, or abrogation of doership
is responsible for increasing stress. Sri Rama asked Sri Hanuman how he was able to cause so much
havoc in Lanka and yet return unscathed. Hanuman disclaimed all responsibility. He said, "I did not do
it, you did it through me". There is a higher power or strength working through us. 's' is for sharing:

Share your wealth, knowledge, workload or anything else you have. By and large people do not know
how to share or delegate. Lord Vishnu as the manager of the world is the best example of delegation of
work. Everything happens under his stewardship but he remains free and at ease. The last but most
important is the 'S' which stands for surrender to the Lord. Free your mind from the weight of worries
and become an instrument, adopting an attitude of service. This attitude will ensure efficiency, success,
and freedom from stress.



Indian ethos for management means application of principles of management revealed in our ancient
wisdom described in Upanishads and Gita. The following basic principles of management are as per
Indian Wisdom and insidht.
1. Each Soul is a Potential God
A human being has a soul, a spark of the Divine. The Divine besides in the heart of the person. The
Divine means perfection in knowledge, wisdom and power. Therefore, a human being has immense
potential power or energy for self-development. When the God Touch is there (in the form of Divine
Grace), human efforts can achieve even an, apparently impossible goal and convert the impossible into
a reality. The partnership of God and Man can bring about extraordinary or miraculous results. Only if
man chooses willingly to collaborate with God and actively participates in the affairs of the society by
right action under his guidance and grace. He can bring about not only personal development,
harmony, happiness but also prosperity of his own organization and the society without injustice to
others. Of course, Divine Grace works only when your self-help and self-efforts are maximum. God
helps those who thus help themselves. When you become helpless, God's grace and Help comes as a
rescue boat in the form of Unseen Hand which is always behind you. In this way you can achieve
extraordinary results. God's grace is the power of God in man. This is the unique resource in man. God
provides the needed inspiration in man. He guides man.
Indian wisdom indicates that productivity of human being is more important than plant capacity. Hence,
management is helping ordinary people to produce extraordinary results. Modernization of men is more
important than modernization of plant.
2. Holistic Approach
Holistic approach in Management is based on spiritual principle of unity. Oneness, non-dual or
Advaita concept. Under this principal of unity, the universe is an undivided where every particle is
connected with every other particle. The Divine interpenetrates this Jagat like pearls on a string. Hence,
entire Humanity is ONE. Management must recognize Oneness of Humanity. Respect the Divine in all
beings. See your own self in all selves. It is said, "Do unto others as thou wish that others should do,
unto you." This is the yoga of the highest order. Management is called upon to follow whole-man
approach to management and leadership.
Let the inner being or higher consciousness assumes the managerial leadership to manage and
lead effectively and efficiently (by combining values and skills) your physical, vital, mental, intellectual
entities. Your inner being is the delegate of the Divine. It is a minute portion of the Whole.
Such an integrated human personality of self-developed manager and worker can assure best and
competent management of any enterprise, involving collective works and efforts. The refined or higher
consciousness will adopt holistic attitude. It will bring out the Divine in man. It will achieve perfection or
excellence in whatever sector you work. We shall achieve Peace, Harmony and Prosperity within and
without, i. e., in our internal world and in our external world simultaneously. This is the ideal of Indian
ethos: 'Atmano Mokshartham Jagat Hitaya cha' (For gaining perfection in individual life, as well as for
the welfare of the world.) This is the motto of the Ramakrishna Order founded by Swami Vivekananda.
This is the message for all managers and workers given by the Indian ethos for management. Under
the holistic approach, management will not exploit shareholders, employees, customers, society and
Note: Knowledge means knowing creation or Jagat. Wisdom means knowing God, Creator. Wisdom is
born of contact with the Divine. our indweller. It gives you balanced and pure mind.

3. Equal Importance to Subjectivity/Objectivity

Indian ethos for management distinguishes subject and object. Subject is subtle and intangible. Object
is gross or concrete, and tangible or visible.
We have the concept of the third eye, the eye of wisdom. It can see even that which the normal two
eyes cannot. It can see the intangible, i.e., invisible.
Human and ethical values or qualities such as courage, vision, social awareness, fearlessness,
integrity, pure and clear mind, truth, etc., are subjective, subtle and intangible concepts. These
represent divine wealth. Value-based management is essential, to combine subjective and objective
phenomena. These subjective or subtle qualities are as important as money, materials, machines,
information or data as well as human skills. Inner resources of human beings are more powerful than
external resources. Japan could prosper in industry, business and trade due to optimum utilization of
inner resources. Japan does not have coal, mineral and petroleum. Fortunately India has adequate
'material and natural resources. Let us develop now.
Our human resources which have immense potential powers. Holistic and value oriented management
based on Indian wisdom alone can secure managerial effectiveness and quality of work life and work
ethic. It will also assure Total Quality management (TQM). Creator is subjective. Creation is objective.
Insight i.e. creator is more important than Outsight i.e.. Creation. Our body. Senses, intellect, mind, etc.,
are objective, seen, and tangible. But our soul atman is unseen, intangible. Subtlest and subjective.
Hence, wisdom manager/worker is much more important and valuable than knowledge
Therefore, manager must develop this third eye, 'Jnana Chakhu', the eye of Vision, intuition, insight,
foresight and such other divine qualities or values. This is the essence of Indian ethos for management.
Wisdom worker has an integrated personality. Man works in order to purify his mind and heart. To gain
pure and calm mind, work is the best means. The worker also gives benefit of his work to others and
4. Karma Yoga (Selfless work)
It is yoga of moral endeavor, self-less service to others. It brings about union of human being with the
Divine. Work is done as worship to the Divines in human beings who is also all pervading in the
universe (which is just a projection of the Divine). Gita evolves the moral and ethical theory of human
conduct and expounds the art of right living - the doctrine of duty with discipline and devotion without
attachment to work and agency (egoistic pride) and/or its results, i.e., fruits of work (Nishkama Karma).
Do your duty without ego and without calculations of gain or loss. The memorable words of Gita "To
work only you have the right (as an agent of the Divine dwelling in your heart ) and you have no right to
the fruits of the work. Let not the fruits of action motivate you. Let not the fruits divert your concentration
on work. Pour your heart and soul in the performance of your assigned duty. Similarly, do not be
attached to inaction also. You have no control over future. Hence, do not waste the precious present in
useless dreams of future hopes and fears of present actions. Do your best and actively live every
moment of the present with the firm belief that future shall take care of itself. Concentrate your attention
only on your present job. Develop the healthy attitude that fruit (Karma Fala) is given to you as Prasad
from the Divine. Accept it with Prasad Bhavana. Karma Yoga is a golden means. It preserves the spirit
of renunciation without abandoning activity.
It is a life of intense activity and serenity without selfish impulses.
Gita emphasizes that Swadharma (one's duty based on one's swabhava inclination and aptitude - on
the work that falls to one's lot by virtue of one's placement in society) should be carried on for the
general welfare of society and as worship of Divine, as our offering to God. This call to work in the true

Yajna spirit is an exhortation to support and actively co-operate in the Divine's evolutionary design and
to live with the mother earth, safeguarding her grand ecological balance.
Why do I work?
(1) For my own salvation and personal growth;
(2) For the good of the world.
The joy of action (to the karma yogin) is the inner joy of selfless service which helps him to rise above
his little individual self by serving and respecting the Divine in all beings, 'seeing his own selfin all living
souls. The inner joy or ananda and the deeper sense qf fulfilment. according to Indian ethos is the
highest bliss and the goal of life as well as the motivating force.
People who work only for money making get enslaved by the yearning for getting more money by
exploiting others .(including nature), which also results in an utter, restlessness, tension, stress and
strain, secret fear and total loss of peace. If persons work for money, profit, and more profit, quality of
life, quality of work will be totally lost. Management will not be effective. Society will gain nothing. .
1. 'Nishkama Karma Yoga 'is the best route for self-developmel'l;t for managers and workers. Selfmotivation can assure your self-development. Aim at Bahu Jana Sukhaya. You grow and others also
grow. When everyone does his duty towards others, everyone's rights are automatically assured. Work
is performed without rag (passion) dwesh (hatr_d), garva (arrogance) and Kama (desire). We have
individual development and social good. This is the answer to the question 'why work'?
. 2. Social Good: The Indian ethos is for the individual selHo become aware, develop and contribute
social welfare by linking yourself to the cosmos. The Western approach has been strong in exploring
the matter and energy only, and conveniently forgetting society and ecology.
The Indian ethos and insight give equal emphasis on both spirit and matter. Both are interlinked
and enriched in the holistic approach so that individuals, society and nature can have harmony,
happiness and sound health as well as enriched quality of life. The Indians knew the secrets of effective
management and administration. Indians knew also two great truths of successful harmonious and
happy life.
(1) The essential divinity of life can be used through self-development (by practice) for personal
growth and also Jana Kalyan (Social welfare) and Loka Sangraha (world maintenance).
(2) The holistic aspect of man and the universe indicates that you, I, and the entire nature are
closely interconnected and interdependent and the only law (Dharma) of life is service to others - "I
cannot cheat you and nature without cheating myself." If you work sincerely for the society, for your
organisation, for the Nature (not for your own pocket), you will really enjoy your life through harmony,
peace and bliss. You get sense of fulfilment also. Your image is bright.
Indian ethos of offering one's life and efforts and work for the good of others is very necessary
today to spiritualize the greed for wealth which is evident in the modem activities of production and
business. Arnold Toynbee, the Noble Prize winning historian writes "it is already becoming clear that a
chapter which had a Western beginning in business management will have to have an Indian Ending,
when the world adopts rich thoughts of Indian ethos and wisdom, if it is not to end in the self-destruction
of the human race.
Karma Yoga for all: It must be noted that Karma Yoga is not only for the common man or worker but
also (more importantly) for the wise, e.g., the wisdom leaders and managers while practicing Karma
Yoga should also engagelin work for the welfare of the society (Loka sangraha). Social life needs cooperation bf all- the wise acts and the standard, the values. he sets up, the followers and others copy,

So the manager, should act responsibly and set a good example. Action speaks louder than words.
Karma Yoga is a good pathway for:
1. Self-purification and self-development. 2. individual growth and welfare. 3. Collective growth and
welfare. 4. Minimum play of passion, jealousy, hatred, greed, anger and arrogance. 5. Team spirit, team
work. 6. Autonomous management, minimum control and supervision. 7. Manager acts as mentor and
facilitator. 8. Self motivation or Inspirational motivation. 9. Perfection or excellence in products and
services. 10. Skills and values united. 11. All round happiness and prosperity. 12. Conflicts resolved by
Note: The unique route of Karma Yoga is the best instrument of management for self development for
the welfare of organisation and for the society as well as environment.
5. Yogah Karmasu Kaushalam
Yoga means excellence at work. Seek to perform your assigned duty or work in an excellent
manner. Koushalam denotes doing work with devotion and without attachment: Such detached attitude
enhances its value and improves the concentration and skill of the worker . You work with smartness,
determination and ability . Your head, heart and soul co-operate with your hands. You do not hanker
over the fruits of action. You have no anticipation of reward, or personal gain. You become a tool of God
to perform the work. Any work carried out with full concentration, dedication and with all abilities that a
person has, becomes valuable and the worker also becomes valuable to others as well as to society. In
total qualify management (TQM) Karma Yoga and Y ogah Karmasu Kaushalam provide valuable
contributions. Under this slogan we have hundred percent motivation coming from within. The extrinsic
incentives e.g., money, other perks, etc. playa very minor role as motivators.
1. Why Work? To purify my mind and heart and to become wise. To provide public benefit.
2. What is Work? To nurture each other. My work is a form of Yagna. sacrifice. I develop the spirit of
sacrifice. It is a worship of the Devine.
3. How to Work? With the spirit of renunciation, i.e., Tyag and to serve others. I must work without selfinterest.
4. Spirit of Work: Excellence in work. Perfection in work and quality of output.
1. Non-attachment to results is the secret of
how to work.
2. I give maximum concentration on producing perfect quality, My work becomes yoga.
3. I work for acquiring enriched mind and heart.
6. Co-operation
Healthy competition is a powerful motivator for excellence and success, especially business
success. The idea of cut-throat competition is founded on the concept of 'struggle) or existence' and
survival of the fittest.
Indian ethos says that for human beings (not animals) the royal road is co-operation as a powerful
motive for team work. We are human beings having mind and power of discrimination.
The Gita says: "By co-operation and mutual help all shall achieve the highest human welfare. Unity is
strength. Even in the holistic approach, we stress co-operation integration, synthesis and team-spirit for
extraordinary performance, for enduring harmony and peace, because in our heart's chamber is living
the pure consciousness of the Divine, i.e., Purnatman. Peaceful co-existence, harmony, not struggle, is

the rule.
Indian insight endorses this in the management of any enterprise.
Excessive competition at work can destroy many young people and our social life. Co-operation,
united efforts and striving for Success leads to all round prosperity and success in any field of human
Indian ethos expresses this:
1. 'Paraspar Devo Bhava.' vapsyatha. '
Human being: Miniature Divine
Man carries within himself perfect power, perfect wisdom and perfect knowledge. All of us have
these potential qualities to become perfect being. It is said that Pumatva, completeness is our inherent
It one wants to possess the aforesaid divine virtue$, he must discover them and bring them aut
by intense sadhana or practice. He has to go in the depth of his being and discover this hidden treasure
by: (1) Introspection, (2) Concentration, (3) Contemplation, and (4) Meditation. As you think and aspire
constantly, so you become.
According to Sri Aurobindo 'All can be done if the God-touch (Divine Grace) is there.' Of course,
our self-efforts must be maximum. Then rest assured that help from the Divine comes to lift us as per
our call and prayer. We have a few glimpses of this in India even today. The question is are you
prepared for such a big change?
The divine qualities are identical at the centre, at the heart of all living beings having selfconsciousness. This implies that there is essential unity of all human beings. All of us have this
potential energy to achieve perfection, or purntwa. This unity or oneness in diversity indicates all
consequences of solidarity, fraternity, equality, etc., that follow from it. We have close interdependence,
interconnection, and integration of human beings, society. Nature and ecology. Therefore we need
value-based, integrated and holistic approach, in our work, in our self-management, and management
of all resources - human as well as material resources:
The Views of the Divine Mother, Sri Aurobindo Ashram Pondicherry (with modifications)
Essential Features of Indian Ethos and Insight
1. The divinity of a human being is not merely a notion but a truth which can be experienced by a
person in the stillness of mind, I e., in absence of any thought. Hence, potentially one is divine, or a
perfect being.
2. 'Balance' or equilibrium is the keynote of Indian thought. We have synthesis, harmony between
the dual concepts, e.g., desire and desirelessness, material discontent and divine discontent. Such
opposites are thought and worked out harmoniously. Spiritual and secular or worldly life are duly
recognised. Even a king can be the knower of the reality and lead both worldly and spiritual life.
3. The individual is taken as the central focus by Indian Ethos. He/she both are regarded as the
foundation. If you are good, the world is good. Such a thought ensures the wholesome quality of work
4. The divine element in the individual (as a core or substratum) is only a portion of the universal or
cosmic consciousness (pure consciousness). The sublime Indian concept offers a secure base for
mutual trust, co-operation, team work, living and working for the public benefit (and not exclusively for

personal benefit) and such noble smoothening ideas of organizational and societal life.
5. The Indian ethos gives much greater emphasis on values, human and ethical. Knowledge is not
power. Character is the real power and wealth. Values must be combined with skills. Then only we can
have effective and efficient management and we can assure the quality of work life in the organization
and enriched quality of human life.
6. Indian ethos is based on the Indian scripture: (a) Sruties (e.g., Upanishads, Gita) and Smrutis (the
Puranas). Indian thought provides eternal knowledge of creation, cosmos and man and recognizes
close interrelation between spiritual and worldly life of a human being. This is called whole-man
7. As per Indian ethos all work is worthy and honorable. This is called dignity of work. All work is
considered as a valuable means for purifying our mind and ego as well as for gaining money, power,
fame and name. Our daily life has a unique combination of materialism and spiritualism. Work is
worship of the Divine within and without. We are called upon to be constantly conscious of His
Presence through all our actions. Sri Aurobindo says: "Behave as if the Divine Mother was looking at
you (as an observer). Indeed she is always present." "Divine Mother is Divine Power or Shakti."
8. Indian ethos rarely speaks of rights and privileges of an individual. It emphasizes only duties and
responsibilities. Human existence is primarily to pay our debts to all quarters of the universe. Rightly
understood, it implies that in practice nobody's rights are ignored. They are automatically ensured, Thus
values, moral and ethical are given status in the human life and activities. Value-based education is
9. Indian thought deals with two types of knowledge (a) knowledge of creation or world, (b) knowledge
of creator, i.e., Divine. What is one thing by knowing which everything else will be known? The answer
to this question is the knowledge of the Creator. This is subjective knowledge. It is known to you only in
silence through personal experience. It is not an intellectual knowledge. It is called wisdom. The
wisdom is born of contact with the Creator.
Character is based on divine values. The divine values are themselves based on wisdom.
Therefore, Indian thought regards wisdom as balance. Internalisation alone enables you to cultivate
moral and ethical values and improve your own character and quality as a human being. Manager with
enriched quality of mind and heart can have effective management.
Management with proper combination of values and skills can assure the harmony and progress of
their own organization as well as enable the society and the country to enjoy healthy development and
growth. This is the unique contribution of Indian ethos. Spiritual elixir in the field of management is
necessary to achieve secular or worldly goals without unfavorable consequences for society and The
Mother Earth.
Enlightened management thought in big corporate management expressing top management's
values and attitudes in the mission or creed even in the U.S.A. and many other countries in the West
can be found. We want this in the managerial style in all levels of management and we would advocate
all employees to be deeply involved in preparing the mission, vision, values, plans and policies. Then
only corporations or firms will have credibility and character.


(1) Immense potential energy and talents for perfection as human being has the spirit within his heart.
(2) Holistic approach indicating unity between the Divine, individual self and the universe.
(3) Subtle, intangible subject and gross tangible objects are equally important. One must develop one's
Third Eye, Jnana Chakshu, the Eye of Wisdom, Vision, Insight and Foresight. Inner resources are
much more powerful than outer resources. Divine virtues are inner resources. Capital, materials and
plant & machinery are outer resources.
(4) Karma Yoga offers double benefit, private benefit, self-purification and public benefit.
(5) Excellence at work through self-motivation and self development is the best means of Total Quality
(6) Co-operation is a powerful instrument for team work and success in any enterprise involving
collective work.
Note:Principles of (EM are universally applicable. We need IEM in our management: (1) to develop
proper management pattern, (2) to assure all round growth in productivity, marketing, profitability. (3) to
gain worldly achievement and lead enriched quality of life together. (4) To synchronise private and
public benefits. The best management will be holistic and value driven united with skills. Such
enlightened management can meet all problems and challenges of life in the 21st Century. We need
emotional stability, mental peace and harmony together with material abundance. This is not
impossible. IEM leads to management by consciousness.
Business need not be regarded evil, tainted and unethical. Business is sacred. It is a matter of
attitude, approach and level of management consciousness. One can do business, make money, earn
profit, build up property and even then it can be managed with due recognition to human and ethical
values and respecting all persons in the enterprise and in the society as human beings. Indian ethos
demands subjective management system.
(1) Management Attitude
Top management must have firm belief in values-oriented holistic management of business. The
management is called upon to meet expectation of all stakeholders, e.g., employees, customers,
citizens and shareholders and full fill the social responsibility. Profit is earned through service and
satisfaction of all these interested parties.
No one can calculate statistically the gains made through mental peace, harmony. self-contentment
and consolation. No amount of profit acquired through unfair business and trade practices can
guarantee health, happiness and harmony of all members of the organisation and the community. Let
us recognise that 'Work is worship. 'Manager is a sadhak or a worker devoted to his work as worship to
the Divine.
(2) Humanising the Organisation
There are three aspects of humane organisation. (a) Inter-personal relations, (b) man-machine
equation and (c) inner management - mental and spiritual.
The core of an organisation is worker. Any person is a human being and then he may play any role in
life. As a human being, he/she is a complex personality with changing psychology. Hence, wholeperson approach is necessary to manage human resources and their multiple needs. Management
must develop human touch and humanised managerial style. Let us note that a good man of character
and wisdom is an invaluable asset of an organisation and the society.
An organisation can create best inter-personal relations based on promotion from within, equality,
autonomy, self-esteem and fraternal affection. Hierarchy should show greater human concern in the
entire life of the subordinate and operator. Unity, harmony and effective communication can assure
team spirit and team work in an organisation. Filial behaviour promotes mutual understanding.

(3) Interiorising Management" '

Self Management: The manager is first a man and then a manager. The manager should first learn
to manage and control himself. Without self-management and control, how can he manage and control
others? The first need is understand and know himself. This is a course in the subjective system of
management. Western management is based on objective system of management. Indian insights
want first system of subjective management and then only management in objective terms can be
perceived and practised.
Management of self brings about harmony and integration among the five members of your total being
body, vital, mind, intellect and soul. Now instead of mind and ego leading other members, your phychic
being, i,e., soul will act as the manager or leader of all members. Thus conflict among the other four
members can be resolved. This is called management by consciousness or self-management.
To manage your self is a difficult and challenging job. But with determination and self-effort it is feasible.
To co-ordinate and harmonise body-mind-intellect complex is the essence of self-management. Once
you manage and control yourself, to your own satisfaction, you will be able to manage and control
effectively your subordinates and workers. 'In fact they will also be tempted to follow your example and
would motivate themselves to develop self-discipline and self-control in their life. There would be much
less supervision, direction, bossing and control.
4. Self-introspection
Self-introspection: We have to embark upon self-study, self-analysis and self criticism to locate areas of
friction and disharmony. We should prepare a balance sheet of our own strengths and weaknesses,
Our mind and heart may indicate weak spots, By regular introspection we would fine;! out solution to
problems so that the concerned parts of our being can be persuaded and guided to play the desired
role. We have to reduce or subdue our ego. Of course, it would require patience and perseverance to
tame the members of our being. Introspection involves self examination of your own thoughts, feelings,
emotions, sensations and passions. Constant practice or sadhana helps us to discard unwanted traits
and cultivate good values to purify our mind and heart.
The master key is within: It is our innermind or consciousness. This instrument can help us to
remove our negative elements and welcome the entry of positive elements. Consult your own
conscience.. It will offer the best way to handle the conflict, differences or even chaos prevalent within.
Right approach and attitude should be: 'Others are right, I may be wrong.' This is the golden rule for
self-management and self-education. '

5 Brain-Stilling (Decision-making in Silence)

Brain-Stilling: The Western management resorts to brain-storming, ie., loud thinking by managers
for decisions to solve management problems. The Indian Insight advocates a better alternative in the
form of brain-stilling. For rational and enduring decisions, silent mind is a much more effective medium
to get sound and lasting solution to all management problems.
A perfect Mounum (calm mind enjoying tranquillity) is necessary. It indicates absence of any
thought flow in the mind. Preferably manager should have a small room of silence attached to his office

where he may retire from busy life to meditilte in silence over the burning problems in case of need.
Such facilities may also be provided to the employees to retire in silence and seek solutions to their
By this method the manager and his employees come into contact with the inner mind or higher
consciousness for arriving at proper solutions to their problems. They should be receptive to receive the
guidance through intuitive mind (immediate insight). Intuition means immediate mental apprehension
without reasoning, usually through inspiration. Intuition provides the third eye, eye of wisdom. It gives
you insight, vision and foresight.
Based on consciousness, management is developed from 'within to without', i e., management of
your own self and then management of others. The consciousness or Chetana has two elements,
awareness of self and things, a will or force that makes the consciousness effective. Awareness and will
power are always one movement.
Inner resources are crucial than outer resources. Brain-stilling or meditative silence is the most
reliable method to discover solutions to problems and difficulties which cannot be tackled by reason.
Manager retires in peaceful silence. He identifies with problems. He searches for alternatives in the
hushed heart, hears the unuttered voice or word. In the hushed silent mind the higher consciousness
acts and sends the message in the form of intuition.
Your mind is illuminated. In this way decisions are made with the guidance of higher
consciousness. Even in science all discoveries and inventions are made through intuition. Remember
that a higher and wider consciousness opens its doors and communes our Soul in moments of silence
when the lamps are lit and the life's cherished guests are left out side. Our soul speaks. We hear what
mortal ears have never, heard. Meditative silence to secure guidance from within from pure intelligence
is clearly Eastern Insight. Western management philosophy relies more on objective thought. Our,
managers should listen to this. Business management is a Sadhana. Managers must cultivate genuine
noble values.
(6) Step Back (For a While)
The stepping-back or drawing-back into yourself is another device of learning to go deep within and
look; you can remain quiet and call on the inner consciousness force and wait for a while for an answer.
Then you know exactly what to do. Remember, therefore, that you cannot receive the answer before
you are very peaceful. Practice that inner silence, make at least a small beginning and go on in your
practice until it becomes a habit with you. Once you enter into inner consciousness, you will know what
true behaviour would be, what true solution to a problem is, what true action is.
The stepping back from a situation for a while enables you to control and even master the situation.
Such withdrawing "from involvement helps you to receive right guidance or intimation from within, from
your inner self.
When your have a problem to solve, when you are caught in a difficulty, try this method, instead of
becoming agitated, turning over all the ideas and actively seeking solutions, of worrying, fretting,
running here and there inside your head ,- I do not mean externally - remain quiet, implore the light and
wait for a few moments for it to come. In silence, the solution comes very quickly and in silence you are
able to hear it.
Never decide anything, never speak a word, never throw yourself into action, without stepping-back,
Note: It is always very good to practice silence for a few minutes at least twice a day. but it must be
true silence. not merely abstention from talking. Source.' 'Inner Peace', (Words of The Mother)..Sri
Aurobindo Ashram. Pondicherry.

(7) Self-dynamising Meditation

A dynamic meditation is meditation of transformation of lower consciousness into higher
consciousness. Hence we call it transforming meditation. It opens the third eye of Wisdom through
insight. You may meditate to open yourself to the Divine Force to receive its guidance to discover the
points to be transformed. viz.. baser or evil elements in your nature. i. e. your weaknesses and to trace
out the line of progress.
You may meditate to reject your ordinary consciousness (your selfish and egoistic traits). You may
meditate for practical reasons; you have a difficult to clear up, a solution to find. a solution to a problem.
you want help in some action or other. you want to know how to face a crisis. a sudden change. you
want to reduce stress and strain which is inevitable in the current hectic life. Meditation helps to solve
many complex problems of management and organisation demanding higher consciousness.
Behind our outer and lower consciousness. we have our true inner being, the centre of
consciousness. Through meditation. in a silent and calm mind. you are able to contact this centre or
higher consciousness. refer all problems of your life and when your mind is open and receptive to this
higher consciousness, you receive intimations in the form of intuitions gwiding you to form your right
decisions and to solve your problems and difficulties.. ,This is called consciousness approach to
management. A process of 'Within-to-Withput' management. The management and wor_ers must have
absolute faith or trust on the Supreme's Infinite Power. Our inner being has the true knowledge. It says,
"I know, I cannot give reasons, but I know." Its knowledge is spontaneous and direct. Please note that
the Grace and the Help are there always. For all who know that; in the last analysis, the Grace will
never fail us. Sri Aurbobindo has assured us that "All can be done when the God Touch is there." Faith
and Sincerity are the twin agents of success
(8) Role of Intuition in Management
Intuition: Intuition is the act of coming to direct knowledge or certainty without reasoning or
inferring. It is immediate cognition by inner mind through inspiration, instant awareness, the little voice,
within you which you hear when your mind is silent, i.e., thoughtless. Fully developed intuition is
efficient and effective for taking prompt and sound decisions. It is fast and accurate.
Intuitive skills enable a manager to cope with confidence the fluctuating environment and rapid
changes. Firstly we must have faith in the power of intuition. What we, firmly believe, we can do. Faith
is the pre-requisite in decision-making based on intuition. People do not know how important faith is,
how faith is miracle, creator of miracles.
Secondly practice leads to perfection. By consistent practice we can develop our capacity of
decision-making by intuition. We all possess intuitive capacity to the fullest. Dynamic meditation
transforms our lower consciousness into higher consciousness. i.e.. in the inner mind where we have
silence. In the silent mind you have flashes of intuition. New skills like intuitive abilities are in great
demand in complex and fast -changing environment. Intuitive mind reflecting quality of mind is much
more important than mere data or information for decisions on strategic matters. Intuition has the veto
power. Intuition is more powerful than reason. Feelings are born with us. Reason is developed later. In
the 21st century, manager will face extremely complex and turbulent environment. He will have to deal
with changing world and a world force demanding increasing use of intuition in strategic planning and
strategic decision-making.
Till 1990, management approach relied on left brain style, i.e., logical analytical style and deductive
reasoning based on case studies and information. A new model on combination of left brain (analysis
and deduction) and right brain (contemplation. intuition and induction) is now popular. It is a blending of
Western and Eastern management concepts.
Management development programmes are now giving more emphasis on the training of intuitive
right brain skill, along with usual deductive analytical left brain skills relying totally on data for solving
management problems. The best mix of brain types ,and the personality types would provide the
effective team work and team spirit.

Managers with higher intuitive ability can be very suitable in management areas.,e.g., personnel,
health, public relations, advertising, marketing and crisis management. These fields demand creativity,
imagination and other right brain skills.
Those who possess higher intuitive ability and potential should actively develop right brain skills
and market their intuitive ability for improving their career and rise quickly to the higher managerial jobs
in the organisation. Top management members must have intuitive faculty. Exercise of mind-stilling and
meditation must be an integral part of management development programmes. These will have double
benefit: (1) reduction of stress and strain, (2) development of right brain skills.
The aforesaid Indian insights should evoke a good response in a manager to the existence of a
master-key within functioning in a human being which can resolve all problems of management Even in
a computerised age, human being is necessary in decision-making.
In the scheme of management as per Indian ethos, the inner mind and the inner aspects of man
are emphasised and the inner being has to develop for manifestation in the physical. In the
management process consciousness is the approach, harmony is the tool and perfection is the aim,
Success is not the only criterion. For outward manifestation the inner consciousness or inner mind
should be developed.
Faith and sincerity are the two needs of management philosophy. For prosperity in living, life
aspects should be prosperous, consciousness needs to be developed and the approach should be
based on the right attitude approach. The organisational hierarchy should be leaner and based on
equality, trust, capacity and the nature of the individual. Centralisattion of authority is meant to diffuse
and decentralise functions and the power to perform them.
In the daily routine of manager harmony in thoughts and actions and harmony in one human being
with another would be emphasised. Work through the human body is regarded as the best prayer to the
Divine, but that work must be done in the right spirit and with a right attitude. Everything is done in the
most perfect way, These are the views of the Divine Mother, Sri Aurobindo Ashram Pondicherry.
1. Model of Man
In Indian Wisdom (philosophy, psychology), material and spiritual aspects of human existence or
life are given equal emphasis and there is very close interrelationship between worldly life and spiritual
life. Both are manifestations or expressions of the divine or pure consciousness.
The holistic approach of Indian Wisdom is needed for modern management to integrate
matter/spirit, or skills/values or object/subject Modern management must incorporate Indian ethos to
perfect the turncated model of man (stressing only material progress at any cost) and recognise man as
a whole man to assure wholesome human progress - spiritual as well as material progress - to satisfy
the hunger of mind and soul as well as the hunger of physical and vital human being.
Values-based holisti2 approach to management will assure such all round wholesome human
development and prosperity.
Western model of man and management could not give rich dividends, it is inadequate in solving all
the problems of modern society. Important concepts of Indian Wisdom and thought will enrich Western
thought and provide a complete set of idea for the management of organisations.
2. Managerial Organisational Effectiveness
Managers should liberally draw on Indian wisdom for achieving highest levels of excellence in
management and organisations. They can achieve both, the quality of work life and also the quality of
output of goods. We will have the excellence in managers' and workers' performance as well as their

own spiritual development, because management and workers would have values-orientation and also
self management through self motivation. We will have harmony, happiness, prosperity of managers
and workers not only in external life but also in their internal life. The people of the enterprise will also
enjoy healthy and enriched life.

3. Globalisation
From 1990 onwards, the term globalisation has assumed unique significance. It indicates free
market economy all over the world. It also points out emergence of global brands with ISO mark under
total quality management Now we have global marketing competition, People in all countries with the
help of satellite communication tools would enjoy prompt inter-communication even in their daily
transactions. This would give us opportunities to discover our basic humanness as well as our cultural
differences and heritage, This opportunity can also help to know broader and higher levels of human
consciousness. We would achieve harmony and unity between material progress and spiritual evolution
in our emerging global economy, Let us develop global consciousness in our global society and
economic development.
4. High Technology
High technology not only accelerates industrialization but also announces problems of an industrial
civilization. But high technology can be misused in the pursuit of the mindless pleasure of senses in a
materialist, high consumption society, In that case it could provide a handy instrument of control and
However, if Indian wisdom is associated with modern management, high technology will give
spiritually evolved managers, statesmen and leaders in the society. a golden opportunity for a global
dialogue to discover the variety of worlds and bring about higher levels of unity across the human race.
High technology can offer assistance to the humanity to pursue its evolution rapidly and effectively
under value-oriented management.
5. Ecology
Ecological crisis for mankind is a burning problem next in importance to corruption and crisis of
values. Indian wisdom knows that holistic approach by management alone can restore the ecological
balance as human beings and nature, are interdependent and interrelated. They are parts of the
universal consciousness, Fortunately marketers and business leaders of the world are coming together
under the UNO to bring about sustainable industrial development free from dangers of pollution rather
than self-destructive, indiscriminate exploitation of nature, Science and technology can help us in this
right direction, though progress in this movement.
Page no 44

2. Survey Method
Survey method is generally used where the purpose is to make short run forecast of demand. Under
this method, customer surveys are conducted to collect information about their intentions and future
purchase plan. This method includes
(a) Consumer survey method (b) Opinion Poll method
Co,nsumer survey method May be in form of

a) Consumer enumeration: - In this method, almost all the potential users of the product are contacted and
are asked about the future plan of purchasing the product in question. The quantities indicated by the
consumers are added together to obtain the probable demand for the product.
b) Sample survey method: - Under this method only a few potential consumers selected from relevant
market through a sampling method are surveyed, on the basis of the information obtained. the probable
demand may be estimated through the following
D = HR (H.AD)

Where D = probable demand forecast

H = Census number of households from

the relevant market.
Hs = number of households reporting demand for the product. HR = number of households
reporting demand for the product. AD = average expected consumption by the reporting
c) End User Method: - The end user method of demand forecasting is used for estimating demand for
inputs. Making forecast by this method requires building up a schedule of probable aggregate future
demand for inputs by consuming industries and various other sectors.
Opinion poll Method
The opinion poll methods aim at collecting opinion of those who are supposed to possess knowledge of
the market e.g. sales representative, professional marketing experts and consultants. The opinion poll
method include
a) Expert opinion method: - Firms having a good network of sales representative can put them to work of
assessing the demand for the product in the areas that they represent. Sales representative, beings in
close touch with the consumers are supposed to know the future purchase plans of their customer, their
reaction to the market changes. their response to the introduction of new products and the demand for
competing products. They are. therefore, in a position to provide an estimate of likely demand for their
_firm' s product in the area. The estimates of demand thus obtained from different
grons are added up to get the overall probable demand for a product.
b) Delphi Method: - Delphi method is used to consolidate the divergent expert Divergent and arrived at
a compromise estimate of future demand.
Under Delphi method the expert are provided information on estimates of forecast of other experts
along with the underlying assumptions. The experts may revise their own estimates in the light of
forecast made by other experts. The consensus of experts , about the forecasts constitutes the final
Although this method is simple and inexpensive, it has its own limitations. First estimates provided by
sales representations and professional experts are reliable only to extend depending upon their skill to
analysis the market and their experience. Second, demand estimates way involve the subjective
judgement of the which may lead to over or under estimation, finally, the assessment of market demand
is usually based on inadequate information's, such as changes in GNP, available of credit, future
prospects of the industry etc, fall outside their purview.

c) Market studies and Experiments:- It is a method of collecting necessary information regarding demand is
to carry out market studies and experiments on consumer's behavior under actual through controlled
market conditions. This method is known in common parlance market conditions. This methods is
known in common parlance as market experiment method under this method, firms first select some
areas of the representative markets - three or four cities having similar features viz. Population,
income levels, cultural and social background, occupational distribution, choices and preferences of
consumers. Then, they carry out market experiments by changing prices, advt. Expenditure and other
controllable variable in the demand function under the assumption that other thing remains same. The
controlled variable may by changed over time either simultaneously in all the markets or in all the
markets or in the selected markets. After such changes are introduced in the market, the consequent
changes in the demand over a period of time (a week, a fortnight or month) are recorded. On the basis
of data collected elasticity coefficient are computed. These coefficients are then used along with the
variables of the demand function to assess the demand for product
The market experiments methods have certain serious limitations. First, this method is very expensive
and hence cannot be afforded by small forms. Second, being a costly affair. experiments are usually
carried out on a scale too small to permit generalization with a high degree of reliability.
Third experimental methods are based on short - term and controlled conditions that may exist in an
uncontrolled market. Hence, the results may not be applicable to the uncontrolled long-term conditions
of the market.
Survey Method
Survey method is generally used where the purpose is to make short run forecast of demand. Under
this method, customer surveys are conducted to collect information about their intentions and future
purchase plan. This method includes
(a) Consumer survey method (b) Opinion Poll method
Consumer survey method May be in form of

- In this method, almost all the potential users of the product are contacted and are
asked about the future plan of purchasing the product in question. The quantities indicated by the
consumers are added together to obtain the probable demand for the product.

a) Consumer enumeration:

b) "Sample survey method:

Under this method only a few potential consumers selected: from relevant

market through a sampling method are surveyed, on the. basis of the information obtained. the
probable demand may be estimated through the following


n = HR (H.AD)

Where D = probable demand forecast

H = Census number of households from

the relevant market.
Hs = number of households reporting demand for the product.
HR = number of households reporting demand for the product. AD = average expected

consumption by the reporting households.

c) End User Method: - The end user method of demand forecasting is used for estimating demand
for inputs. Making forecast by this method requires building up a schedule of probable
aggregate future demand for inputs by consuming industries and various other sectors.
Barometric Method
Many economists use economic indicators as barometer to forecast trends in business activities.
The basic approach of barometer technique is to construct an index of relevant economic indicators
and to forecast future trends on the basis of movements in the index of economic indicators. The
indicators used in this method are classified as
(a) Leading indicators: - consists of indicators which move up and down ahead of some other series
e.g. new order of durable goods, new building permits etc.
(b) Coincidental indicators: - are the ones that move up and down simultaneously with the level of
economic activity. E.g. number of employees in the nonagricultural sector, rate of unemployment, sales
recorded by thy manufacturing, trading and the retail sectors etc.
(c) Lagging indicators consists of those indicators, which follow a change after some time lag. E.g.
lending rate for short-term loans etc.
Development and allotment of land by Delhi Development Authority to Group Housing Societies (a lead
indicator) indicates higher demand prospects for cement, steel and other construction material
(coincidental indicators) and increase in housing loan distribution (lagging indicators).

Econometric method
The econometric methods combine statistical tools with economic theories to estimate
economic variables and to forecast the intended economic variables. An econometric model
may be single equation regression model or it may consist of a system of simultaneous
Regression method
Regression analysis is the most popular method of demand estimation. This method combines
economic theory and statistical techniques of estimation. Economic theory is employed to specify the
determinants of demand and to determine the nature of the relationship between the demand for a
product and its determinants. Economics theory thus helps in determining the general form of demand
function. Statistical techniques are employed to estimate the values of parameters in the estimation
Simultaneous Equation Method
It involves estimating several behavioral equations. These equations are generally behavioral
equations, Mathematical equations and Market - clearing equations. The first step in this technician is to
develop a complete model and specify the behavioral assumption rellardin2 the variables included in
the model. The variables that are included in the model are
I) Endogenous variables
2) Exogenous variables
Endogenous variables - the variables that are determined within the model are called endogenous
variables. Endogenous variables are included in the model as depended variables that are the
variables that are to be explained by the model. These are also called controlled variables. The number

of equations included in the model must be equal to number of endogenous variables

Exogenous variables - are those that are determined outside the model. Exogenous variables
are inputs of the model whether a variable is treated endogenous variables or exogenous variables
depend on the purpose of the model. The examples of exogenous variables are Money Supply, tax
rates, s, govt. spending etc. The exogenous variables are also known as uncontrolled variables.

Page No-62
Characteristics of Isoquant Curves :

a) Isoquant have a negative slope :-An isoquant has a negative slope in the economic region or
in the relevant range .The negative slope of the isoquant implies substitutability between the inputs .It
means if one of the inputs is reduced, the other input has to be increased such that the total output
remains unaffected.

Isoquant are convex to the origin: Convexity of isoquant implies to:

(I) Substitution between the inputs
(ii) Diminishing marginal rate of technical substitution (MRTS) between the inputs in economic region.
The MRTS defined as:

MRTS = -M / M = slope of the isoquant

i.e... MRTS is the rate at which a marginal unit of labor can substitute a marginal unit of capital (moving
downward on the isoquant ) without actually affecting the total output.
This rate is indicated by the slope of the isoquant. The MRTS decreases for two reasons:
(I) No factor is perfect substitute for another and
(ii) Inputs are subject to diminishing marginal return .Therefore more and more units of an input are
needed to replace each successive unit of the output.

Explain the types and characteristics of isoquant curves .Show with help of illustration. How will you
Determine the least cost combination.
Ans. The term "isoquant" has been derived from the Greek word "iso"
Meaning equal and Latin word "qualltus" meaning "quantity"...
The "isoquant curve" is ,therefore. also known as "Equal product curve" or "Production Intelligence
Curve ".
An isoquant curve is locus of point representing
Various combinations of two inputs - capital and labor -- yielding the same output.
Isoquant curves are drawn on the basis of the following assumptions:
(i) There are only two inputs, v 12, labor (L) and capital (K) tom produce a commodity X.
(ii)The two inputs - Land K - can substitute each other but at diminishing rate.
(iii) The technology of production is given.

Given these assumptions, it is always possible to produce given quantity of commodity X

with various combinations Of labor and capital. The factor combinations are so formed that the

substitution of one factor for the other leaves the output unaffected .The technology is
presented through are isoquant curve (IQ, = 100). The curve IQ, all along its length represents a
fixed quantity, 100 units of product X. This quantity of output can be produced with a number of laborcapital combinations.
For example:- Points A, B, C and 0 on the isoquant curve IQ,
shows four different combination_ of
inputs, K and L , all yielding the same output - 100 units.
The movement from A to B indicates decreasing Quantity of K and increasing number of
L .This implies substitution of labor for capital such that all the input combinations yield the same
quantity of commodity X i.e... IQJ = 100.

Assumes perfect complementarily between K and L. The perfect templementarity assumption

implies that a given quantity of it commodity can be produced by one and only one
combination of K and L and that the proportion of the inputs is fixed. It also implies that if the
quantity of an input is increased and the quantity of the other input is hold constant there will
be no change in output. The output can be increasing both the inputs proportionality.
Lease cost combination:In order to determine the best combination of capital and labor to produce that output, one has
to know the amount of finance available to the producer to spend on the inputs and also the
prices of the input. Suppose that the producer has at its disposal Rs. 10,000 for the two inputs,
and that the prices of the two inputs as Rs. 1000 per unit of capital and Rs. 200 per unit of
labor. The firm will have three alternative possibilities before it.
a) To spend the money only on capital and secure 10 units of it.
(b)To spend the amount only on labor and secure 50 unit of labor
(c)To spend the amount partly on capital and partly on labor.
The factor price line is also known as iso-cost line because it represents various
combinations of inputs that may be purchased for the given amount of money allocated.
The slope of the factor price line shows the price ratio of capital and labor Le... 1:5. By
combining the iso-quant and the factor price line. One can find out the optimum combination of
factors which will maximize output.

other :

Isoquant cannot intersect or be tangent to each

The intersection or tangency between any two

isoquant implies that a given quantity of a commodity can be produced with smaller as well as larger
input-combination. This is untenable as long as marginal productivity of inputs is greater than zero.
d) Upper isoquant represent higher level of output:
Between any two isoquant, the upper one represents a higher level of output
then the lower one. The reasons an upper is quant implies a larger input combination, which in general,
produces a larger output. Therefore, upper is quant indicate a higher level of output.
Other types of is quant curve:
a)Linear isoQuant :- A Linear isoquant implies perfect subsitut -ability between the two inputs K

and L

The isoquant AB indicates that a given quantity of a product can be produced by using only

capital or only labor or by using both.


is possible only when two factors K and L are perfect substi-tutes for one another. A Linear
isoQuant also implies that the MRTS between K and L remains constant throughout.
b)Fixed factor-proportion or L-shaped isoquant :
When a production function assumes a fixed proportion between K and L . the isoquant takes' L'
shape .Such an isoquant implies zero substitutability between K and L. Instead. it

Equal product curves lO1, IQ2 , and IQ3 represents output of 1000 units, 2000 units and 3000 units
respectively. AB is the factor price line. At point E the factor-price line is tangent to isoquant IQ 2
representing 2000 units of output. Point E indicates the maxi-mum amount of capital and labor which
the firm can combine to produce 2000 units of output. The isoquant IQ 3 falls outside the factor price line
AB and therefore cannot be chosen by the firm .
On the other hand, Isoquant lO 1, will not be preferred by the firm even though
between R and S it falls within the factor price line .Points Rand S are not suitable because output can
be increased without increasing additional cost by the selection of a more appropriate input
combination. Point E , therefore ,is the ideal combination which maximizes output or minimizes cost per
unit, it is the point at which the firm is in equilibrium