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Working Papers | 1996

Thorny Glory: Towards Organizational Greatness

Khandwalla P N

It is argued that organizational is worth probing because it may play a significant role in human evolution. Organizational greatness is postulated to require both performance excellence vis-à-vis organization centered, conventional indicators and exalted conduct or contribution of a moral, spiritual, ethical, idealistic, or socially beneficial nature. Five alternative approaches to the design of performance excellence are discussed, namely, environmental determination, organizational attributes, strategic choice, synergy between organization elements, and synergy between contextual variables and organizational variables. A model of performance excellence in a competitive domain is presented, which argues that in such a domain inescapable adaptive responses by the organization to a powerful contingency or a strategic choice do not augment relative performance, unless they are supplemented by uncommon but appropriate discretionary responses. Nine alternative paths of exaltation are discussed, namely, stakeholder orientation, corporate social responsibility, strategic domain development orientation, institution building, organizational ethics, spirituality. Several examples are given of organizations that have excelled both on conventional indicators as well as in terms of exalted conduct or contribution. It is argued that in a competitive context exalted conduct or contribution can be pursued by the organization at three alternative levels. At the lowest level it amounts to compliance with legal requirements or strongly held social expectations about moral, altruistic, or socially responsive conducts. At a modest level it can be pursued to cash any synergy exalted conduct or contribution may have with the pursuit of conventional performance excellence. At still higher level sacrifices may well by required in terms of indicators of conventional performance excellence. The pursuit of the sublime along with the mundane increases the organization's operating complexity and requires more differentiated strategies, structures, know-hows, and rules. For excellence on both mundane as well as sublime indicators, the organization needs to deploy uncommon and complex forms of integration, and needs to pursue creatively strategies and styles that produce additional slack to cushion initial failures. It is argued that certain kinds of contexts reinforce exalted conduct and contribution, such as times of societal regeneration, of disillusionment with capitalism, and social and political ferment. Increased professionalization of the work force may also reinforce such conduct and contribution. The perspective of organizational greatness offers major challenges to both managers and organizational researchers.

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Working Papers | 1996

Corporate Restructuring for Shareholder Value

Venkiteswaran N

This paper takes an overview of two prime concerns of corporate management in the recent times, viz., shareholder value management and corporate restructuring. The paper begins with a brief discussion on the emergence of shareholder value management as the main raison d'etre of corporate managements in the market economies, a concern that is yet to agitate Indian board rooms and investors. The paper then goes on to discuss the phenomenon of corporate restructuring that is sweeping the industrial world and examines some of the principal methods of corporate restructuring and their underlying motives. It concludes with a brief discussion on the rising trend of restructuring activities undertaken by the Indian corporate sector. The paper seeks to confine itself to the broader issues such as the motives and methods of corporate restructuring rather than legal or tax minutiae around which are structured specific transactions.

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Working Papers | 1996

Impact of Beneficiary Participation in Rural Water Supply and Sanitation Projects: Evidence from a Comparative Study in India

S. Manikutty

This is comparative study of two rural water supply and sanitation projects in Kerala, similar in practically all aspects except that one project incorporated community participation in it and the other did not. The study compares the outcomes in the two projects and finds that there is unmistakable evidence that community participation has a favourable impact on the outcomes. The following are the ways through which this linkage gets established: (i) better aggregation of preferences; (ii) better design through use of local knowledge; (iii) pressure by community on bureaucracies to perform; and (iv) better sustainability through feeling of ownership. Community participation is effective under certain institutional conditions which are discussed in the paper.

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Working Papers | 1996

Macroeconomic Analysis of Union Budget 1996-97

Dholakia Bakul H

The Union Budget for 1996-97 was the maiden budget of the recently formed United Front Government. Given the political context and the economic scenario, the formulation of this budget was a fairly difficult task. An attempt has been made in this paper to present a broad macroeconomic analysis of the main proposals and provisions of the Union Budget 1996-97 in the context of the stated objectives of the budget and examine the likely impact of the budget proposals on Indian economy. An attempt has also been made to present the post budget macroeconomic scenario for Indian economy for the year 1996-97.

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Working Papers | 1996

A Comment on the Adjusted Proportional Solution for Rationing Problem

Lahiri Somdeb

In this paper we obtain a simple expression for the adjusted proportional solution for rationing problems, when a fixed supply of an infinitely divisible good has to be divided only among two people, and when their demands exceed supply.

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Working Papers | 1996

Biotechnology: Problems; Concerns and Options

Asokan S R and Chokshi S N

Biotechnology is the application of scientific and engineering principles to the processing of materials by biological agents. It is based on enhanced understanding of the genetic structure of organisms at the level of cells and molecules and offers powerful tools to modify them for a specific purpose. The versatility of the technique and its possible profitable use in such diverse fields like agriculture, pharmaceutical, mining, environment, food processing etc. have attracted of investment for research mostly from private sector. Biotechnology promises to revolutionize agriculture both in terms of quantity as well as quality of the crop output. It is possible to produce hardier plants to grow in desert, alkaline and other extreme soil conditions. Growing seasons can be reduced making it possible to have multiple harvests. Strains resistant to pests, diseases, heat, frost, drought and flooding can be developed. It also promises to improve the nutritional value and taste of products. Dependence of chemical fertilizers and pesticides can be reduced or removed. It may be possible not only to eradicate hunger but also malnutrition through the application of biotechnology. However, the risk to the environment due to the engineered organism, neglect of certain crops in research due to the involvement of and influence of private sector, displacement of foreign exchange earning crops from developing countries, socio-economic impact resulting from the adoption of the technology, the dominance of technologically rich but genetically poor industrialised countries over genetically rich technologically poor developing countries through the Intellectual Property Rights mechanism etc are some of the major areas of concern. The right priorities in applying the technology, strengthening the national agricultural research systems, increased south cooperation in sharing genetic material and the resultant product etc may help to overcome some of the concerns.

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Working Papers | 1996

Deregulation at the State Level

Gupta Dinesh

This paper examines the current status of deregulation at the state level by studying the initial approvals required by a new industrial unit from 10 state government authorities in Goa, gujarat, Madhya Pradesh and Maharshtra. An analysis of the approval process shows that there are many approving authorities. Many of them come in at more stages than one. Approval from one is contingent on approval from several others. Applications for approval are received at the lowest tier and often have to travel upwards through several tiers. Consequently, there are information problems and non-fulfillment of the purposes for which the regulations were instituted in the first instance. The paper proposes several measures to remedy the situation, covering information dissemination, systems, organization and staff motivation.

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Working Papers | 1996

Effect of Policy on Expert Competitiveness the Case of the Indian Garment Industry

Gupta Dinesh

India's garment exports have increased quite rapidly in terms of U.S. dollars in recent years. But other Asian exporters have done better. Certain policy-induced structural features of the Indian garment industry have created inefficiencies in the areas of export marketing, production and import supplies. This paper analyses some of these and suggests a few remedies. The paper argues that policy should enable and encourage large firms to play a more active role in garment exports. This will allow India to exploit the high-volume segments of the world market more fully and appropriate a higher share of the value addition in the export chain. The paper proposes some measures for making the institutional arrangements for production and input supplies more efficient, so that exporters may capitalise on India's comparative advantages and bypass disadvantages. The question of developing constructive linkages between large and small firms is also dealt with in this context.

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Working Papers | 1996

Technology Development in the Indian Textile Industry: Interaction Between Government Policy, Firms and Cooperative Research Associations

Chaudhari Shekhar

This study presents the findings of a study of technology development in the Indian textile industry undertaken by the author as part of a larger international study led by The World Bank. The study methodology included a field survey of 18 firms size, technological dynamism and location; interviews with 4 relevant technology institutions catering to the technology related needs of the textile industry; a questionnaire survey mailed to randomly selected firms to facilitate generalisation of findings as well as a study of relevant published materials. The industry is characterized by a large number of firms, mostly small and technologically backward and some fairly large and technologically dynamic. Compared with countries competing in international markets, productivity levels and growth rates are lower in India. There is also considerable variation in productivity between mills in the country. According to published research, ineffective management, inability to buy the right type of cotton at the right time and price, lower machine utilization, poor working conditions, lack of standardization, ineffective financial management are the main reasons for low productivity. These in turn are influenced by factors that are external as well as internal to the firm; lack of plant modernization, lack of timely availability of spare parts, capacity imbalance between stages of the manufacturing value chain, power shortage, lack of proper maintenance, and worker absenteeism. The survey results indicated that firms in the industry spent very small amounts on R&D and technical training. However, the interviews indicated that firms did carry out some product and process changes. The majority of these technological changes were implemented by the firms themselves without the support of technology institutions (TIs). Though lacking in technological dynamism, textile firms showed evidence of accumulated technical expertise to undertake technical changes in product and process within the boundaries of the existing knowledge base. Wherever external support was required firms took the help of cooperative research associations (TIs) in the country rather than foreign collaborators. Standards/testing, information, problem solving/trouble shooting, and education/training were the most used services by the firms.

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Working Papers | 1996

Structure, Conduct and Performance of Small Scale Chemical Industry in Gujarat

Gupta G S and Rathi A K A

This is an empirical study based on the primary data from the sample of 208 small scale chemical units in Gujarat for the years 1986 through 1990. The details on the various dimensions of the structure, conduct and performance are presented, and the nexus among them is examined. The findings suggest no unique relationship among structure, conduct and performance. However, it may be concluded that each of the middle age, partnership form of organization, and location in Baroda/Ahmedabad districts has, in general, proved a beneficial structural feature from the point of view of the performance. For maximizing the government revenue mobilization, firms should be encouraged to produce inorganic chemicals, and resins and allied products.

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