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Working Papers | 2000

Restructuring Gujarat Electricity Board: Outline of a Strategy and Proposal for Action

Sebastian Morris

This note argues that the GEB needs to be restructured urgently. The principal challenge is really to overcome that major 'agency problem' that results in leakage of enormous revenue. Plugging the leakages alone would make the GEB profitable at current average tariffs! The key elements of the restructuring would be to directly administer the agricultural subsidies through a coupon system; so that regulation becomes easy, and management of electricity distribution become entirely viable, and can, therefore, be commercially provided. Privatisation of distribution could be necessary given the entrenched vested interests acting against task orientation within the GEB. Yet, complete unbundling would only be dysfunctional at this stage. Some bundling of generation with distribution assets has value to the reform process, and to the ease of regulation. Other details, like the treatment of stranded (IPP) contracts, contracts with central power corporations (BPSAs), the grid rules, pricing of transmission charges, and the basic structure of the wholesale market for power are discussed. This note is in five sections. In the first section the reasons for the need and urgency of major reform of the electricity sector and restructuring of the GEB are brought out. In Section II the strategy is outline. Sections III and IV and V respectively bring out the key proposals discuss the modalities and lay the scheme in a sequence of events and decisions.

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Working Papers | 2000

Quasitransitivity and Monotonic Preference for Freedom

Lahiri Somdeb

We consider a finite universal set of alternatives and the set of all feasible sets are simply the set of all non-empty subsets of this universal set. A choice function assigns to each feasible set a non-empty subset of it. In such a framework we propose and study necessary and sufficient conditions for quasi transitive rationalizability. In a final section of this paper, we analyse necessary and sufficient conditions for quasi transitive rationalizability of choice functions generated by a monotonic preference for freedom.

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Working Papers | 2000

Women and Leadership Roles

Engineer Mahrukh and Parikh Indira J

Indian Women today carry the legacy of a civilisation thousands of years old; this legacy is paradoxical, in that it can be both a burden and a source of inspiration. The challenge is to distill the best from the past, transform ancient wisdom into modern day paradigms and not be shackled by the bondage of age old dogmas and beliefs! Indian Women and Indian society as a whole has moved from well-entrenched gender-centric roles, (where Man was considered the leader and provider and Woman the idealised deity, but submissive and subservient in day to day matters), to today's revolutionary thinking that is emerging, partly due to education and western influences, where roles are not stereotyped by gender and allow men to recognise their feminity and women their masculanity. This transformation is far from complete; however important beginnings have been made particularly in large metropolitan cities in tomorrow's industries where enabling technologies have brought dramatic changes in terms of creating virtual work spaces. The objective of the four day workshop conducted at the Indian Institute of Management, Ahmedabad, for women managers/leaders in October 1999, was to explore the influence of the transformation of organisations on women's roles in the corporate world; to explore their leadership roles and also their life-spaces; to discover wholesome ways to actualise dreams and chart new career paths. The programme was divided into two modules, Conceptual and Experiential. The conceptual module explored the impact of transformation in organizations and on individual employees, particularly women. In the experiential module the exploration was around life-spaces and systems where processes of socialisation in both family and work setting were understood. How did women who are impacted by these diverse interfaces give shape to their roles? The paper discusses the experiences of the participants at home and at work place. The shift in mindsets of people and society have contributed to a lot of positivity in terms of women's acceptance as capable, hardworking and committed professionals and individuals. On the other hand they did feel that there was a constant pressure to perform and prove themselves at work place and simultaneously, a constant feeling of guilt and anger in coping up with expectations of children and in-laws respectively at the home-front. They were indeed successful in striking a balance between home and work and in doing so not many had managed to take leadership positions which was still very much considered a man's domain. An important and interesting issue which the paper further discusses is the exploration of women's life spaces, their identity and the roles they take, especially in terms of leadership. The life-space of women vis-à-vis home/family and also vis-à-vis work place is analysed and discussed by the participants. At the home from the dynamics of in-laws, especially the interface of the women with their mother-in-law, their experience of motherhood and the dynamics of relationships with the husband- all contribute to dilemmas of marriage. The women shared some of their personal experiences related to their entry into the workspace and their interfaces with the superiors, colleagues and subordinates of both genders. The dilemmas faced by women in terms of assuming leadership roles, climbing corporate ladder and contributing to decision making processes in the organisation are, anchored in the socio-cultural context as well as in the maps and definitions they carry from the past. A future scenario was painted by the participants. For the first time in recent history women have begun to assume leadership roles in the corporate world and are hopeful of blazing new trails for future generations, creating new role-models and cracking, if not, shattering the glass-ceiling. Women can look forward to the future with optimism. Women are experienced in managing one of the most complex organization imaginable – the household, and therefore can apply their skills and experiences in terms of hard-work and sensitivity in managing relationships, at the work place. The authors have discussed how women could be successful leaders if they achieved a congruity between their inner-instincts and their career goals! The Indian Woman today is at a threshold where she is confronting not only herself and her own inner feelings, historical conditioning and fears, but also managing interfaces in the outside world both at home and work place. As recent role-models demonstrate, women tentatively are crossing this threshold, challenging themselves and blazing a new path for future generations. The new Millennium may well usher in an era, where not only women but the entire human race can more easily achieve self-actualisation and total fulfillment both professionally and personally. The leaders of tomorrow would be such that they would not be identified by their gender, but by their capability and meritocracy.

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Working Papers | 2000

From the Globalised Southwest Effect in Aviation to `Democratised Development`

Balakrishnan K and Thomas P S

In the national quest for competitive advantage two basic forces may be crucial. On the one hand, progressive corporations “invest in inimitability” (the so-called institutional effect). Simultaneously, in the interests of time compressed national progress, policy makers try to facilitate imitation and substitution (in short competition) among the fast followers in the economy instead of leaving it entirely to market forces. In this paper we studied the institutional or demonstration effect provided by Southwest Airlines. It has been credited by the US Department of Transportation (DOT) with almost single handedly providing the discipline for fare restraint and the impulse for market expansion (or “democratisation”) in the US airline industry. It has been called the Southwest Effect. We first examine its diffusion via the bandwagon and competitive effects among the big and small carriers of the US. We then extend the coverage to Europe and Japan to shed light on the Indian authorities' declaration to “democratise aviation in the 21st century”. This mission has its parallels in corporate missions in the automobile and telephone industries of the US and home appliances and equipment industries of Japan decades ago. We conclude that in a policy intensive sector like aviation (where the government has to prevent cabotage and safeguard bilateral agreements) the crux of the matter may lie in “democratised development” than in the particular sectoral focus employed. There may be a great need and opportunity for evolving an innovative methodology for managing and governing the complex process of democratised (or grassroots) development on a societal plane over a couple of decades at a time. The main benefit would lie in facilitating the inter-institutional contest for excellence that may be at the core of such development.

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Working Papers | 2000

No Mandate for Drastic Change: UB2K

Singh J P

Working Papers | 2000

The Organizations of the Future

Parikh Indira J

The paper “The Organizations of the Future” explores the movement of organizations in India the past to the organization of the future. The last five decades Indian organizations have moved from 1. An ancient civilization of vast richness to contrasting poverty and scarcity to the present of increasing plenty. 2. Idealistic socio-political systems to a self centered, power-centered and greed. 3. Indian corporation movement from manufacturing, production, selling of shabby goods to increasing focus on quality and services. 4. A society with rigid structures to possibilities of freedom. 5. Communities deeply embedded in narrow role definition to give expression to ones own aspirations and 6. Individuals responding to the world with capabilities and competencies. The interplay of the above impacting the masses. The paper examines the Indian corporations transforming given the changes occurring globally. Three critical shifts are highlighted. (1) The individuals fragmentation of home and work space and redefinitions due to net explosion. (2) Women's entry into work and broadening of the role boundaries impacting the relationships. (3) The Concept of life space of men and women andsearch for humanising relationships. The paper identifies the new paradigms of people which the corporations would require at the level of collectivity of employees, systems and the individual.

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Working Papers | 2000

Conclave on Family Business Strategising the Future

Parikh Indira J

The Paper “Conclave on Family Business Strategising the Future” explores the family owned organization where many success stories have been written of fathers, sons and brothers. Today these organizations are at the cross-roads as new paradigms of managing organizations are emerging. The paper explores the first generation entrepreneurs, the second generation inheritors and the third generation successors. The paper then examines the people profile in family owned organization and the interplay of the three generations as well its employee. Both groups have a long history of association and relationships with each other and the organization. The paper examines the growth of family owned organizations, organization culture, organizational issues, managerial issues and the expectations of different constituencies from each other. The organizations are encountering and addressing the issues of professionalism and professional leadership. Finally, the paper raises some questions as to the ownership and management, the new paradigms of leadership the new employees and the direction which the family owned organizations are taking given the transformations occurring both in the internal and external environment of the organizations.

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Working Papers | 2000

Symbols, Themes and Liking: A Study of Advertisements

Kaushal Geetika

Advertisers use various strategies to make an advertisement effective. The use of symbols and themes is one of these strategies. This is a qualitative study aiming to understand whether the presence of some symbols and particular themes in an advertisement affects the liking for that advertisement. 48 subjects were given 20 advertisements to analyze in terms of the symbols present. Themes were then drawn from the symbols mentioned by the subjects. It was concluded that certain themes make an advertisement more likable.

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Working Papers | 2000

Threshold and Median Rank Solutions for Transitive Abstract Games

Lahiri Somdeb

The idea of a function which associates with each set and a binary relation a non-empty subset of the given set has a long history whose exact origin is very difficult to specify and in any case is unknown to the author. In Laslier (1997) can be found a very exhaustive survey of the related theory when binary relations are reflexive, complete and anti-symmetric. In a related paper (Lahiri [200b]) we extend the above set of binary relations to include those which are not necessarily anti-symmetric. Such binary relations which are reflexive and compete are referred to in the literature as abstract games. An ordered pair comprising a non-empty subset of the universal set and an abstract game is referred to as a subgames. A (game) solution is a function which associates to all subgames of a given (nonempty) set of games, a nonempty subset of the set in the subgame. Lucas (1992) has a discussion of abstract games and related solution concepts, particularly in the context of cooperative games. Moulin (1986), is really the rigorous starting point of the axiomatic analysis of game solutions defined on tournaments, i.e. anti-symmetric abstract games. Much of what is discussed in Laslier (1997) and references therein carry through into this framework. In Lahiri (2000c), we obtain necessary and sufficient conditions that an abstract game needs to satisfy so that every subgame has atleast one von Neumann-Morgenstern stable set. In this paper we consider solutions defined on the class of transitive games. A solution is said to be a threshold solution, if for every subgame there exists an alternative such that the solution set for the subgame coincides with the set of feasible alternatives which are no worse than the assigned alternative. Such solutions are closely related to the threshold choice functions of Aizerman and Aleskerov (1995). We provide an axiomatic characterisation of such solutions using three properties. The first property says that if one alternative is strictly superior to another, then given a choice between the two, the inferior alternative is never chosen. The second property is functional acyclicity due to Aizerman and Aleskerov (1995). The third property requires that if two feasible alternatives are indifferent to each other, then either they are both chosen or they are both rejected. In order to make the presentation self contained we also provide a simple proof of an extension theorem due to Suzumura (1983), which is used to prove the above mentioned axiomatic characterization.

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Working Papers | 2000

Economies of Scale and Scope of District Central Co-operative Banks

Namboodiri N V

The main object of this study is to explore the cost relationship of District Central Cooperative Banks (DCCBs). This is examined in terms of economies of scale and cost complementarities of joint production or economies of scope. Deasi and Namboodiri (1996) have very comprehensively examined the viability of cooperative rural financial institutions at the grass root level. But there is hardly any attempt to study the issue of product specific scale and scope economies of DCCBs. Moreover, unlike commercial banks, the behaviour of their cost structure is different because of the nature of their banking operations. The loan portfolios of these banks are in the hands of the members of these institutions, i.e. primary co-operative societies, individuals and other institutions. Similarly they are their major depositors as well as the users of the credit advanced to them. They mainly cater to the local financial deficits and surpluses as agriculture is characterised by such a phenomenon. Yet the viability of these institutions are important not only from the point of view of their own growth but also for the development of cooperative institutions down the stream served by them and agricultural growth in general. An empirical analysis based on a multi-product cost function approach as is done here could reveal the cost structure of these banking institutions and economies of scope for future expansion in their banking operations. The paper is divided into 6 sections. Section 2 briefly reviews the application of various methodologies in examining the cost attributes of multi product banking firms. Section e describes the methodology employed and the data utilized. Section 4 presents a brief description of DCCBs and the composition of their various portfolios. Section 5 presents the results of the estimated equation on scale and scope economies. Section 6 summarises the major findings and their implications.

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