ARTHASHASTRA by Thomas R Trautmann

ARTHASHASTRA: The Science of Wealth by Thomas R Trautmann (2012) Allen Lane - an imprint of Penguin Books, p 180

Adam Smith is considered the father of Economics, more particularly modern Economics.  People across geographies have grown with this belief that it was he who through his academic treaty called An Inquiry into the Nature and Causes of the Wealth of Nations in 1776 (the year when Declaration of Independence was adopted)  introduced the world with the importance and management of resources of a nation. He was a professor of morality at the University of Scotland and he argued and caught the academic attention through this work, much after his first book The Theory of Moral Sentiments (1759) which was received by its readers as a remarkable contribution for the study on selfishness, conduct, and duties of humans. He systematically elaborated the resources of a state and its proper management for the welfare of citizens. This modern treaty paved way to the policy makers and people interested in the management of resources.

However Kautilya's Arthashastra which was written some 2400 years back still remains first work on bringing out resources for nation/kingdoms. Though it has never been taught to us but lot of times a reference is made to this great work written sometime around 320 BC, while Chanakya was advising Chandragupta for better governance of state. Having been exposed to Adam Smith's economics, I always had this desire of reading Kautilya's Arthashastra and in this process came across this initiative of Gurcharan Das in tracing the history of Indian business.

This book entitled 'Arthashastra - the science of wealth' by Thomas R Trautman, Professor emeritus of history and anthropology at University of Michigan, is a concise commentary on Kautilya's Arthashastra. Different versions and narrations have been studied by the author and he conveys the essence of that voluminous work through this brief, yet focused account of economics through chapters on Kingdoms, Goods, Workplaces and Markets. In the modern day context, when we do not have Kingdoms, they could be studied, related and compared with the functions of a state, government and administrators.

Though last 2500 years have witnessed remarkable transformation in technology, transportation, communication, education, trade practices and control etc, yet one can observe much of the same behaviour, much of the same market operations and trading treaties. Business strategies of modern times are all crafted with the same mindset as they would have been crafted centuries before though nature of goods and services have changed drastically. This is where study of history becomes important which at times leads us to reiterate a point that come what may, human instincts remain same, they carry with similar value systems as good and bad are still same. Workplace behaviour is more or less same though the ambiance and approach has changed.

The Arthashastra gives us a king-centred perspective on wealth and power.  In it we see a concern for provisioning the royal household and army, and of alleviating famine in the kingdom, through the building and stocking of storehouses of different kinds. Its way of evaluating goods puts the emphasis upon treasure for warfare, foreign relations and for making visible the king's pre-eminence through the display of luxury... farming, farming village, market policies trying to sustain ideals of fair price and containing extreme fluctuations of price... It has two kinds of courts that provide for the peaceful settlement of disputes over transactions and the 'removal of thorns' from the kingdom. (p 140)

The foreword of the book is authored by Gurcharan Das which creates a platform for the book and introduces the theme of the book. I enjoyed this book thoroughly in a series of books published by the London School of Economics tracing back the Story of Indian Business and having gone through the other title 'The East India Company - the world's most powerful corporation' by Tirthankar Roy. As a student of modern day economics and human/organizational behaviour, I could find a close link between Kautilya's Arthashastra and Adam Smith's thinking (on human behaviour, organizations and economics). Indian academia has suffered a lot due to poor documentation and numerous invading interests which have somehow spoiled the age old academic treasures.  In this light this volume is a gift to the students of economic history and for this the whole initiative of this kind deserve applause.

I suggest this book for all of those who are interested in the study of history of political economy in India, and the history of business and economics of this part of the globe. 

My Journey by APJ Abdul Kalam

MY JOURNEY - Transforming Dreams into Action by APJ Abdul Kalam (2013), Rupa, p 147

It is always a pleasure reading the writings of APJ. These are so inspiring, emotional and straight-from-the-heart type that everybody who reads him can follow and connect oneself with the contents.  

This book is an autobiography of this great man called APJ Abdul Kalam, though it does not follow a traditional structure of an autobiography. The book is designed very nicely and makes a easy and engrossing read, just like any story book. As a believer in journey more than the destination I enjoyed going through it and almost finished it in two long sittings. Though some of the stories I had read through other sources, however it was first time to read about his family through his own words. The life lessons from his journey are touching, relevant and practical in nature. His views on education, on developed India, on meeting deadlines, on dedication, on loyalty, on mutual respect are really worth reading and learning. 

The journey that I followed through this book could be summarised in a small para like this. APJ was born in Rameswaram (Tamilnadu) in 1931. His father (Jainulabdeen) was a boat maker and also ran ferries to earn living. He was a pious soul and taught him through religious teachings. His was a joint family. His cousin, Ahmed Jalaluddin was his first mentor who had lot of trust and faith in APJ and always motivated him to pursue good education. While APJ was 8 years old, he helped Samsuddin (one of his cousins) in selling newspapers and he continued a hectic routine of getting up at 4 am, going for tuition and then to the Railway station for fetching newspapers and then to distribute them in the locality, then an hour of religious teaching and then for school. After school the evening was meant to collect the dues from the households for newspaper and then study. This hectic schedule taught him the value of hard work and the learning from his father's morning walks and newspaper distribution, developed in him a habit of getting up early in the morning which he continues still now. He did his engineering in Aeronautics from Madras Institute of Technology, Madras. Fascinated by the life of birds and the teaching demonstrations by his teachers on the bank of the sea, he developed an interest in flying and wanted to become a pilot but was not selected. However he was selected as the senior scientific officer in the Directorate of Technical Development and Production (Air) under the Ministry of Defence. Later he became a known space scientist and worked with the top scientists of India.  Popularly known as Missile man, APJ rose to the highest position in the country as President of India.  And rest is history.

The book is divided in 12 small chapters, each focusing on his relationship with individuals and few objects like boat making. The lessons learnt from his mentors like cousin Jalaluddin and Mr Vikram Sarabhai and from his father, mother, brother and sister are narrated through an interesting style of story telling.  A chapter is also devoted to the books which shaped his thinking and influenced him most.

The book is full of anecdotes and interfaces of APJ with people who influenced his whole life and as he says, he carries the learning from them still fondly. Once he asked his father, 'why do people come to him (his father) when they have problem and what really he does', the reply of his father always stayed with him which was:

'Whenever human beings find themselves alone, as a natural reaction, they start looking for company. Whenever they are in trouble, they look for someone to help them...Every recurrent anguish, longing and desire finds it own special helper. For the people who come to me in distress, I am but a go-between in their effort to ward off demonic forces with prayers and offerings....One must understand the difference between a fear-ridden vision of destiny and the vision that enables us to seek the enemy of fulfillment within ourselves...When troubles come, try to understand the relevance of your sufferings. Adversity always presents opportunities for introspection' (p 6-7)

For APJ the role of teacher is most important for building a great nation as he says - 'true quality (of education) does not come from a great building or great facilities or great advertisements. It happens when education is imparted with love by great teachers.' (p 36)  The lesson learnt from his teacher, Prof Srinivasan at MIT Madras is still vivid in his memory as he mentioned, what his professor told him when he did not appreciate the model made by APJ - 'I knew I was putting you under immense pressure when I rejected your work the other day. I set an impossible deadline - yet you have met it with work that I can only call outstanding. As your teacher, I had to push you to your limits so that you could recognize your own true potential.' (p 74) The message of meeting the deadlines and never-give-up spirit carried APJ all through in his thinking, actions and decision making at different levels in different institutions. When he was not selected by the Indian Air Force, he was distressed and he visited Swami Sivananda at Haridwar on his way back from Dehradun, who told him -  

'Accept your destiny and go ahead with your life. You are not destined to become an air force pilot. What you are destined to become is not revealed now but it is predetermined. Forget this failure, as it was essential to lead you to your destined path. Search, instead, for the true purpose of your existence...Surrender yourself to the wish of God.' (p 78)

The journey of a village boy from a remote place called Rameswaram in Tamil Nadu to the Rashtrapati Bhawan in Delhi is narrated so modestly and honestly by the person himself that one can not afford to miss reading it if one is interested in knowing and learning the rich heritage of human values of India. Who says hope is fading off in India, you read this small journey, I bet you would believe that it is possible and there are people alive in who still make a difference not just through their words but through their deeds and actions for transforming this great nation into a developed nation as visualised in the last chapter of the book - miles to go.  

The East India Company - the world's most powerful corporation by Tirthankar Roy

THE EAST INDIA COMPANY - the world's most powerful corporation by Tirthankar Roy (2012) Allen Pane - an imprint of Penguin Books, p 237.

While doing graduation we had a paper entitled 'Economic Resources' and the teacher (Dr KC Jaiswal) who taught us that course was an alumnus of Allahabad University and Lucknow University, and student of Prof JK Mehta (of Allahabad Univ). I have no hesitation in admitting that it was he who pushed me into teaching profession. I never thought that I would lead a career in teaching. Anyways, he used to tell us 'India is a rich country but its residents are poor'. We grew up with this thinking that India was a country which had surplus milk production, huge exporting country for textiles and spices, and strong mineral bases apart from rich cultural heritage. It is true that during the middle of the 17th century India contributed to around one fourth of world manufacturing output which went down to around 3 percent by middle of 19th century. These two hundred years contributed to the fall of India as a manufacturing hub as well as destroyed the institutions. We all know that the major role was played by the erstwhile known as the world's most powerful corporation - The East India Company. We have grown with very many stories about The East India Company (EIC).  

In the series of The Story of Indian Business, an acclaimed scholar of the business history at London School of Economics, Tirthankar Roy brings this book with rich historical narrative, telling the tale of the rise and fall of EIC and its role in controlling the resources available on the soil of Indian subcontinent.

The EIC was formed in 1600 in London by a group of merchants, mariners, explorers and politicians to finance the trading voyages to India, China and Southeast Asia. It is quite evident from the book that the author has gone through the documentation of several voyages of this company into the Indian subcontinent and cross verified them through the literature available, both in highly acclaimed academic journals as well as popular writings of the time.  The journey of the company (from a trader to an empire builder), its patronage by the British royalty (the Crown) through assent by charter, its profiteering endeavors, internal quarrels, its selfish relationships with the local rulers in India have been very well narrated in the book which makes it an authentic tribute to the business history of India.  

The author mentions in the introduction part of the book:

In this short history of the Company, the well-known story is retold, but by using an angle of vision somewhat unusual in the historical scholarship on the subject (p 29)…In this book by contrast, the Company is in the main a window into the distinctive globalization that occurred in the Indian subcontinent in the seventeenth and eighteenth centuries.  The story suggests that any attempt to deal with Indian business history during this time needs to refer to Europe’s own expansion overseas, show how the concept of a firm changed, connect traditional modes of doing business with the modern, Britain with India, India with China, politics with economics, and one empire with another (p 30)… The story begins with the combination of enterprise and exploration for which Elizabethan London has earned a unique place in global history. (p31)

The EIC made its entry into the Indian subcontinent through the coastal towns in the earlier part of the sixteenth century when major part of India was ruled by the moghuls. …the first fifteen years were not smooth sailing for the EIC. The working of this company and its relationship with the rulers, especially in the coastal towns like Surat, Coromandel, Hooghly, and the exchange of resources between China (Tea) and India (Cotton and Opium) are explained with evident authority and utmost care in the book.   The emergence of Madras, Bombay and Calcutta as prominent business centers apart from being the power centers has been elaborated (with historical facts related to individuals) very nicely in the book. For example at page 86 the author writes:

The most experienced Company officer in Bengal at the time was Job Charnock (1630-93).  Charnock had served the Company in India for thirty years. He started his career in Hajipur and Patna, where he procured saltpetre, needed in England as raw material for gunpowder. In Patna, Charnock married an Indian widow said to have been rescued from burning herself on her husband’s funeral pyre and had three children by her. While in Patna, he began to dress in Indian costumes, a habit that lasted lifelong, and learnt to speak fluent Persian and Hindustani.  In 1669, he moved to the Bengal establishment in Hooghly where he was the fifth in the hierarchy of factors.  In 1685, he became the second in command in Bengal.

The book is full of such stories of the officers, factors, and staffers who played important role in the EIC. It was a learning experience through the book that the EIC had allowed its employees to run their business individually apart from working with the company. At times it raised suspicion over the integrity of employees. There were cases where the individuals benefited much more than the company. With this legacy we also witness at present some of the employees of the companies in India following this trend at the cost of loss to their pay masters. As the communication with the Crown was not very fast, much of the things were not reported and at many times the factors (employees) used to make their own empire at the cost of the EIC. 

Europe had a good market for the Eastern Spices, Chinese Tea, and Indian Cotton, which was capitalized by the EIC into its advantage primarily. The objective of the company was never to rule this part of the world, however during the course of doing business and exploiting their relationships with the rulers and enjoying a strong patronage of the British government, it realized that it was possible for them to spread their wings and through initiatives of expansion beyond the coastal towns and into the courts of the kings and markets of the mainstream India of that time, it started actively learning the nuances of controlling power through a back door.

From 1833, the Company ceased to exist as a trading body. It existed as an administrator of India in partnership with the Crown (p 200). It was in 1858 when British government assumed direct control of India. There were instances when the Crown was not happy with the functioning of the EIC and there were cases when many of the officers were called and punished in different ways. As the book is written on the EIC, it does not go further from here. 

As Tirthankar also writes in the book, though there are many people who have written on the business history of India and the functioning of East India Company, there is much little literature on the contribution of the EIC in the thinking of organization and institution building, my understanding is also on the same line. The organizational practices as to hierarchy, delegation, division of work, communication, inter-personal and inter-group relationship, etc have not been explored. I have reasons to believe that the practices followed by the EIC must have impacted the functioning of other organizations operating at that time as well as the ones which were established in the later years.  This is still required to be explored with evident authenticity.

The book is divided in 10 chapters and there are some historic pictures and maps which help the reader to refer and preempt the prevailing conditions during that period. A detailed foreword by Gurcharan Das makes the book more important and authoritative. Timeline is put towards the end of the book which provides a chronology of events which took place during the working of the EIC in India. A detailed bibliography provides a rich source of references. The book is written in a story telling style which keeps the reader attentive and inquisitive towards the next part of the book. I strongly recommend this title for the minds which are interested in learning Indian business history and the functioning of one of the world’s most powerful corporation.

India Grows at Night by Gurcharan Das

INDIA GROWS AT NIGHT - a liberal case for a strong state by GURCHARAN DAS (2012) Allen Lane (an imprint of Penguin Books), Penguin Books, India p 307

Indian economy is growing fast; it is much discussed and talked subject in the present times amongst the residents of urban India.  It is second fastest growing economy in the world after China, which aspires to have double-digit growth in the times to follow.  Urban India visibly portrays that kind of development through the expansion of physical infrastructure and the provision of amenities, though not adequate to cope with the fast migration of striving rural class towards urban centres.  Another topic of discussion amongst the argumentative Indians is the issue of governance which off late has become a serious problem as day after day a new scam is getting unfolded and the media as the fourth pillar of democracy is able to influence people conscience in different ways. 

In these times an acclaimed author and columnist, a management guru (as Arvind Kejriwal calls him), an erstwhile corporate leader, Gurcharan Das brings out this book in the title of ‘India Grows At Night (IGAN) – a liberal case for a strong state’.  As he mentions he intended to keep the title as ‘India grows at night when the government sleeps’ and he drops the later half and settles for first.  However the book keeps the reader reminding that in spite of the governance deficit growth is taking place which is praiseworthy.  One tends to wonder as to what would have been the situation had there been better governance.  I am sure as regards to the economic growth; India would have surpassed China by this time easily.  But that was not to happen.

An excellent case of comparison between Faridabad and Gurgaon in the backdrop of Indian Polity, Policy and Partnerships of private as well as public initiatives is exhibited in the book to which the reader is reminded many times as and when the reference is required.  One a sparkling star whereas another one getting to fade off.  The former is Gurgaon and the later is Faridabad.  I myself have observed it when I visited Faridabad first time sometime in late 80s or early 90s, it was a much better township as compared to erstwhile Gurgaon. 

Having read India Unbound, another masterpiece by Gurcharan Das, I somehow could relate and preempt the interventions made by IGAN, though not agreeing to all points made by him.  However I enjoyed reading the book with full involvement, concern and commitment to the cause of the book.  The transformation in the visible indicators during last 20 odd years is appreciated in the book apart from the dismal conditions of social infrastructure viz., education, health, sanitation, etc., especially in rural India.  The reality I think is even worst in the rural India.  The force driving the rural youth towards cities in search of petty jobs is still continuing and at least I have not come across any data supporting the case that such migration is in real terms getting down even when our growth rates are positive and are being appreciated by all. 

The book provides an excellent account of rationalizing the existence of democratic practices and the comparison between democracy in America and Scandavian countries is tracked and elaborated very eloquently.  A realization driven by the personal experience at the Tahrir Square (situated at the downtown Cairo in Egypt which is also knows as Martyrs’ Square) further reiterates the merit of democracy.  Ironically in India we do see mockery of democracy (many in social media term it as demoncracy in Indian context) however as a form of government still it carries more merits and judicious fairness as compared to dictatorship or autocratic rule of state.

The story of young aspiring Raju (as narrated in India Unbound) who portrayed the future of young through learning Windows and English reminds me of another low of Indian corporate aspiration through the case of Raju of Satyam and Raja of Indian telecom scam fame (for wrong reasons).  The appreciation of Anna Hazare movement as an awakening call is illustrated at many places in the book, however the author does not subscribe to all that this movement followed.  In order to build a case for poor governance, the cases of Jessica Lal and Ruchika apart from many others are cited.  These are not stray cases, these are happening day in and day out in all cities and villages, at all places.  Crony capitalism has somehow found a concrete grounding in the Indian development story.  The purchase and sale of favor is at rampant and the politicians playing the middlemen have become so acceptable that aspiring bidders first form nexus and then manipulate the whole process.

The analogies from Mahabharata are cited at many places.  It is important to mention here about the great work of Gurcharan Das in the shape of a book entitled Difficulty of Being Good – on the subtle art of dharma.  Dharma as a proxy for moral well-being and artha as a proxy for material well-being are narrated through the text very convincingly.  Gandhian way of promoting small business and developing industries on the basic premise of self sustenance is questioned and in a way big-push theory of economic development is advocated by the author highlighting and illustrating its strengths over welfare economy.  I have my personal reservations on that and feel that it is the prime spice of bottom-up approach to development as against top-down approach as followed by China and well explained by the author in the book.

The suggestions towards the end of the book through borrowing the title of the chapter What Is To Be Done from Vladimir Lenin’s prescription providing a solution and treatment of working class in erstwhile USSR, as to looking for political alternatives (as seems there is no other better way to seek justice and improve governance) through initiating to revive swatantra party or starting a new political party at the national level as both the large parties viz., Congress and the BJP are losing people trust, is a very welcome suggestion.  I too feel that an awakened India would certainly like to see the change at the top and would commit oneself and pray for the cause for a better India which does not only grow at night, rather during the day as well and there is never a scene when the government really sleeps.  I admire Shakespeare for his farsighted and ubiquitous statement ‘great men work when others sleep’.

The book is a simple read making a strong case for liberating India from the clutches of corrupt individuals and showing us a path which could help the state to deal with governance deficit successfully.  It is a richly referenced book defending the viewpoint of the author very nicely. I recommend this book to all who are concerned about the future of India.

[published in The NEHU Journal Vol XI, No 2, July 2013, p 83-85]

Turning Points by Abdul Kalam

TURNING POINTS - a journey thorugh challenges : the inspiring sequel to Wings of fire by APJ Abdul Kalam (2012) HarperCollins Publishers India, p 182

This treatise on the development path to be followed by India is a great work on reminiscences of APJ Abdul Kalam while in and out of the Rashtrapati Bhawan, the highest constitutional post in the Republic of India (President 2002-2007).  I remember when he was awarded Bharat Ratna, the highest civilian award, perhaps he was second non-political Indian (after JRD Tata) to have received such an honor.  His commitment to the cause of seeing India as a development nation by 2020 is so convincing that one tends to just keep getting moved by his concern, care and concerted efforts.  

This book is in in continuation of his autobiographical sketch which came earlier with a title Wings of Fire.  This is one such book which I finished reading with full attention and engrossment in just one full sitting.  Somehow I always had a soft corner for a person in the name of APJ Kalam ever since he proved his scientific calibre as a great practical scientist who had a great sense of humility and who rose from a poor family to a scientist and to the ranks of the highest post of this great second largest nation in population and a largest and most vibrant democracy among all nations.

Having seen him twice and heard him in person while his visits to our university at Shillong on the themes of Leadership and Nanotechnology, I always tried to keep track of his activities to the extent possible.  I watched on TV when media started talking of his book in the backdrop of two important issues - one Gujarat and another one Sonia Gandhi nominating Manmohan Singh.  I acquired this copy through flipkart and carried it through the journey from Guwahati to Bareilly today.  

Turning Points has 14 chapters apart from preface, acknowledgement, epilogue, afterword, appendices and index.  Each chapter starts with a theme and small saying or statement and ends with the summary in one or two sentences.  The writing style is biographical and simple and easy to understand.  He explains the way he entered to the office of President and the way he moved out of the office as well apart from many  initiatives he led, many decisions he took and many interactions he had with all kind of common people from children to farmers, to scientists, to college and university students and teachers, to his staff at the Mughal Garden.  The book also prints some 25 odd selected color pictures of Kalam in different actions, moods and  attire with different people. 

   

I do not know how and when it all happened in particular that I started admiring this great visionary.  Even this time I wished it was he who could have come to the position of President and at least maintained and spearheaded his own efforts which he initiated on his earlier tenure as the President of India specially on few areas of development viz., science and technology, education, and PURA.  I never knew that he is also not very comfortable with the concept of GDP as a measure of development which I learn from this book. Though he maintains his praise for economic growth.  I have always been saying and questioning the development path which prioritises GDP or economic growth over human well-being.  He talks of National Prosperity Index (NPI) which should be initiated to look at the national resources and their use.  He says that NPI is a summation of annual growth rate of GDP, improvement in quality of life of the people, particularly those living below the poverty line; and the adoption of a value system derived from our civilizational heritage in every walk of life which is unique to India.   It should also take into account various well-being indicators.  The richness of Indian ethos and human values needs to be spread all through the nation.  

He narrates about his concept of PURA (Providing Urban amenities to Rural Areas) in this book and at many places mentions that his concept is already in practice in many parts of the country and he is working on this as well.  I too strongly feel that until we get back to villages and develop them through creating good infrastructure there, the balanced growth would never happen in India.  India still lives in villages.  We need to have strategies in place in mission mode for rural focus - on agricultural planning, marketing, community development, village education etc.  Of course it has to all start at individual level and that is where Kalam has been quite successful in enthusing that energy in the young minds of India.  

One thing that really I liked about the book is that he was throughout been positive about all the events individuals, places etc though we do know that there have been instances of differences of opinion, criticism and embarrassment to the office of the President during his tenure.  He does mention them with positive perspective.  

His priority of nation over his own conscience is a great example which he has very nicely elaborated and defended.  His religious beliefs and faith demonstrates his strengths.  His sense of humility is just uncommon one such example is reflected through his conversation with Air Marshal Manekshaw and further following  his suggestion.

I wish that Kalam's dream of seeing India as a developed nation by 2020 comes true.  Of course looking at present India it seems a herculean task, but nothing is impossible in this world and at times miracles do happen.

ORGANIZATIONAL BEHAVIOUR – A South Asian Perspective, by Nelson, Quick and Khandelwal (2011) Cengage Learning, Delhi (p 392 + xii)

ORGANIZATIONAL BEHAVIOUR – A South Asian Perspective, by Nelson, Quick and Khandelwal (2011) Cengage Learning, Delhi (p 392 + xii)

Management of people in organizations has always been a great challenge for management.  As the organizational structures are getting flatter, this challenge is becoming more acute.  The study of organizational behavior in this context has also become very common especially for the students of business and commerce.  Before twenty odd years, there was a lack of availability of good text on organizational behavior in India which focused on Indian conditions.  Last ten years have seen publication of good relevant literature in India in this area.  As business education has spread across length and breadth of the country, the emergence of good business books which include relevant literature developed in Indian settings has been witnessed.  In this backdrop I would like to introduce the readers to this recently published book authored by Debra L Nelson, James Campbell Quick and Preetam Khandelwal, and published by Cengage Learning, India.

The book is divided in four parts (Introduction, Individual Processes and Behaviour, Interpersonal Processes and Behaviour, and Organizational Processes and Structure) consisting of 17 chapters.  These chapters cover all the constituents of organizational behavior like individual behavior, group behavior and organizational structure.   Nelson and Quick’s OB book was there present in the Indian market even before but it lacked the content on Indian firms, individuals and conditions.  The present book has Khandelwal as one of the other author as well whose contribution looks quite visible in the book where lot of Indian snippets are placed at their respective places.  The earlier book was more exhaustive and had global appeal which did not just targeted the text students but even the researchers.  This present book is designed and published under 4LTR series which is a Cengage Learning product, and is a widely acclaimed concept of learning with a simple approach – creating an innovative teaching and learning solution build around today’s learners and teachers.  The idea behind brining out this series of books is to introduce students and teachers in South Asia to an innovative concept in management studies which is based on the inputs from discipline-specific focus groups, conversations, and surveys. 

Every chapter outlines the learning outcomes before one proceeds through the chapter and the contents of each chapter are explained through these learning outcomes, which is quite impressive, thoughtful and focused.  Small side boxes with important keywords used in the text and their brief description leaves the reader with clear understanding of the terms used.  The book is full of colorful pictures, relevant figures, tables, statements, did you know?, hot trends, and to the point notes.  The fast facts and by the numbers boxes engages the reader and provides appropriate defense for the text it supports. All chapters end with their respective In Review and What about You?, which very succinctly summarizes the whole chapter and helps the reader to practically evaluate oneself.  It is a good reminder of all that one reads in the chapter.  The pictures used in the chapter are put on one page at the end of the chapter which visually reminds, engages and involves the reader with all the contents that one has read.  This format of the book is excellent. 

The book is fully updated, sourced and referenced, (with web addresses) for the benefit of its readers. However it is felt that as the book has South-Asian Perspective, it should have included some cases or notes on other countries in the region apart from India.   The small stories on Indian firms like Bajaj Auto Limited, The Dabbawalas, Biocon, ICICI Bank, Wipro (for its values), NTPC (for its People before PLF – plant load factor), Indian Bank (for turnaround) etc are well placed.  In fact there are not many books which illustrate Indian cases in such a way and many a times while a teacher is teaching a course on OB, with a book having global perspective, the students find it difficult to correlate.  But this book through its Indian content makes it easier for the Indian students to relate the theory with the practices and tries bridging that gap quite convincingly.  The examples of individuals with Indian origin are very well put in the text wherever applicable.  On commitment it is Mahatma Gandhi, father of the nation, who has been put and captioned as a karma yogi par excellence, on communication, the contribution of one of the most popular presidents of India in the Indian history of independent India, APJ Abdul Kalam, who has been communicating with the children all across the country, is quoted.  We have witnessed a great transformation in the telecom sector in the last 20 years which was conceived and initially led by Sam Pitroda.  His example on the chapter on Leadership is very apt.  In the chapter on Personality, former Indian police officer, Kiran Bedi, who has been quite active in raising the issues of social concern, winner of many prizes for social service including Ramon Magsaysay Award, has been put.  These people have made a great impact on the lives of common people in India and their examples are well placed which helps indian readers to understand various concepts and models better.  Small stories related to the business leaders such as Indra Nooyi, captioned as Iron woman of PepsiCo, on motivation, Azim Premji, captioned as a strategic leader, on Leadership, Dr Vijay Mallaya, on Personality, and E Sreedharan, the managing director of Delhi Metro Rail Corporation on job satisfaction, commitment and Power and Political behaviour, make good sense. 

Conflict is one of the important parts of management and organizational behavior literature.  The chapter on conflict and negotiation (p 254-275) discusses different aspects of conflicts and explains the existing conflicts in Indian family businesses.  The conflict in Ambani family is explained through a box borrowed from the times of india news, which is quite relevant.  In my view there would not have been a better model to resolve conflict other than Gandhian approach which is very aptly put in the chapter. 

After going through all 17 chapters, I firmly appreciate and commend the work of the authors for 4 chapters (Motivation at work – p 94-110, Power and Political Behaviour – p 211 - 228, Leadership and Followership – p 229 – 252, and Conflict and Negotiation – p 253 – 274) and would like to specially recommend these chapters.  The models are explained nicely and briefly with excellent colorful graphical presentation.  The notes at the end of the book help the reader to dig out further on the sources and references if one wants to get to the original paper. 

Though the format of book is excellent but at times and places it become very loud in colors, pictures and different types of boxes.  The book could have been further better if the amount of text was put little more.  It is a concise book on OB. Having gone through the book and looking at all its aspects, I feel the presentation of book is very engrossing and whoever goes through it shall not regret having chosen it.  I strongly recommend it to the students and teachers involved in the teaching of text on OB.

[published in Invertis Journal of Management, Vol 3 No 2, 2011, Pp 99-101]

The Tao of Loyalty

THE TAO OF LOYALTY - WINNING WITH EMPLOYEES by Ajit Rao (2006), Response Books, SAGE, New Delhi, India, Pages 257

Few years back when Philip Kotler visited India, he was asked by a business reporter, if he has to add 5th P into 4Ps of Marketing (Product, Place, Price and Promotion) what that P would be.  Kotler's reply was very apt, PEOPLE.  People in different roles have become very important for all types of organizations and it has somehow given a direction to them to redesign their HR and Marketing policies, more so for their internal marketing.  In these changing times a book got published in 2006, entitled 'The Tao of Loyalty - Winning with Employees' authored by Ajit Rao who through his research portrayed the importance of Loyalty in organizations and its different dimensions.

Steven F Walker, an accomplished scholar and CEO of Walker Information, while putting his foreword to the book applauds the work done by Ajit and mentions that -Many corporations today do not ponder enough on the value that employees bring to their business.  This book helps to bring focus on the very important role that employees have in maintaining and growing customer loyalty that will yield improved financial success.  

The book has 12 chapters (The 5^th P of Marketing, Emotional Loyalty, Loyalty Segmentation, Eleven Factors that Matter, The Managerial Grid: Task and People, The Task Factors, The People Factors, Communication, The Three Levers, The Role of Leadership, The Role of HR, and The Role of the Boss) in all and is designed in such a way that as one turns the pages, one keeps discovering new concerns of loyalty and the ways to deal them.  The book is based on the results of a questionnaire survey conducted on the basis of statements designed from the input by Walker Information Inc. and CSSM (Customer Satisfaction Management and Measurement) under IMRB International, who have been partners of Walker Information in India.   

The book starts with the first chapter on the 5^th P, i.e., People.  It discusses the important role of people in the organizations justifying that the degree of employees’ loyalty determines the degree of service quality.  As he quotes Howard Shultz (Chairman and CEO of Starbucks and one of the authors of bestseller Pour Your Heart Into It) who use to think marketing as the most critical function and later realized that it was the people who were key to delivering great experiences in a sustained manner. Ajit explains the concept of Tao which is based on the Chinese philosophy where life is considered to be full of contradictions and successful individuals are those who are able to understand it and manage it better than others.

He mentions in the first chapter (p 29) ‘The management of employees in any organization can apply this concept of contradictions to building a team of highly loyal employees.  In this book the Tao question is to find out the way in which an organization manages its employees which results in having a productive group of people as well as this productivity is sustained for future.  This is just one Tao and the book keeps unfolding different contradictions throughout along with the ways to deal with them, though the author keeps repeating at number of places that this is not a book on Hows but on Whys. The book identifies measures and suggests the dimensions of employees’ loyalty and its impact on their willingness to leave or stay with one organization. 

Two dimensions of Loyalty, viz., Emotional and Behavioral are discussed through examples and the author, through the data, successfully explains the impact of emotional loyalty on the behavior of employees.  Ultimately it is the ‘feel-good’ employee who shows better loyalty to the organization as compared to a person who thinks that his/her potential is being exploited by the organization.  It is more important an issue while we look at attrition rate of employees and their willingness to leave an organization for better salary package.  The contribution of highly loyal employees is reflected through a very good example of Reliance when in 1989, their Patalganga complex was fully flooded and the consultants said that it would take atleast 100 days to clear up the mess, Reliance employees cleared the whole plant in just 3 weeks time.  Such reflection of loyalty towards one’s organization is what makes an organization win its employees and sustain growth. 

Every organization is unique and has its own “threshold level” of loyalty.  When an organization’s loyalty level drops below this threshold level, the behavioral scores of the organization drastically change. This statement mentioned at p 51 underlines the flexibility the organizations have as well as the result of loyalty on the behavior of the employees which finally in turn get reflected in the organizational performance.  Intention to continue with the same organization also is measured to find out the loyalty levels.  Ajit feels that emotional loyalty is more powerful way to look at employees than employee engagement. 

The employees are classified in four categories (chapter 3) as The Truly Loyals (46%), The Accessibles (5%), The Trappeds (19%) and The High Risk Employees (29%). This chapter explains the basic concept of emotional and behavioral loyalty through these four types of employees and how it can be measured and how an organization can identify ideal loyalty scores.  The fourth chapter clearly outlines and suggests eleven key factors to be followed by the organizations in order to increase the size of Truly Loyal employees. These factors are Job Satisfaction, Role Outcomes, Resources, Sense of Accomplishment, Buy-into-Vision/Mission, Fairness, Care, Trust, Appreciation, Involvement, and Quality of Communication.  These are validated through many studies taken up by Walker Information Inc in last two decades and are also been considered while conducting Great Places to Work surveys.  Ajit suggests that the scores on these 11 factors can be averaged to provide one single score, which can be called the Tao Score (p 81).

As students of management we have grown with the Managerial Grid as propounded by Blake and Mouton in 1957.  Though this grid has been under scrutiny, yet its importance and relevance is not questionable at all.  This grid has been under change after its formal publication and at present also stays as Leadership Grid.  Ajit discusses this grid and relates it to the loyalty by bracketing the 10 factors into Task bucket (Job Satisfaction, Role Clarity, Buy-into-Vision/Mission/Values, Resources and Accomplishment) and People bucket (Fairness, Care and Concern, Trust, Being Valued and Appreciation) and keeping Communication as a common factor as foundation.  Chapter 5 discusses these issues in details through related figures and diagrams which present the argument very convincingly.  These factors are not to be taken independently rather they should be taken as complementary to each other as they depend on each other and have their influence on other as well. 

The Task factors are separately discussed in chapter 6 where the examples from Starbucks and the Built to Last corporations are put in such a way that the reader can get to the grip of these 5 task factors, their inter-relationship and inter-dependence and their role in building great organizations.  As explained an employee’s engagement is gauged through the scores on these factors, a high score shall show high engagement thereby leading it to having better loyalty levels as well.  Similarly chapter 7 discusses People factors in deep through various examples.  It makes a good case for defending the interests of employees through the policies and action of the leaders and organizations as to being fair to its employees, showing care, concern and trust for them, acknowledging their contribution and providing enough space for their participation in the interest of the organization.  The individuals having high scores on people factors are those who can create highly nurturing environment. 

While one looks at the Managerial Grid, one tends to follow such path which leads him/her to follow team management by balancing people and task related issues.  Here too such balance is required though task factors seem more objective, tangible and visible as compared to people factors which look more subjective, intangible and invisible.  Whatever if the organizations focus on these two type of factors with proper balancing, they would surely be successful in increasing the size of truly loyal employees which in turn shall be translated into their better contribution for organizational growth. 

Communication is put as a foundation for both types of factors, viz., Task and People, and it is discussed briefly in chapter 8.  Undoubtedly it is one of the most important activities of the management for smooth coordination of its functions across different functional areas.  At times it is the communication which is blamed for big disastrous decisions in the organization, so whether the organization concentrates on Task or People, it has to first make sure that it is able to properly communicate all its policies, programs and decisions. 

Chapter 9 briefly identifies three levers that are responsible for systematically concentrating on eleven factors that are outlined for leading a team of truly loyal employees.  These three levers are: the leadership, the HR and the boss.  This chapter of 3 small stanzas just provides the justification for choosing these three levers and the nature of the relationship that is required to be built for focusing on all the factors.  In the next three chapters, their role is illustrated separately and clearly.  These three chapters suggest Leadership Scorecard, HR Scorecard and Boss/Supervisor Scorecard.

While the Leadership Scorecard is based on the issues related to mission, vision, values, customer focus, organizational priorities, faith, innovation, communication etc., the HR Scorecard deals with finding talented people, proper performance evaluation systems, job suitability and comparability, training opportunities for improving knowledge, skills and abilities, career growth, welfare benefits, policy alignment, effective reward systems, and fairness.  The Boss/Supervisor Scorecard is developed on the basis of 5 Task factors, 5 People factors and Communication as a common factor. The scores are derived on the basis of team, unit/department, company average and best team score in the company which helps the decision makers to accordingly prioritize.  

The author puts a summary after all the chapters where he strongly writes that Employee loyalty must form an important part of marketing strategy as the final delivery is through people. …One important point we’d like to make is that there are perhaps some more factors (apart from 11 factors that are explained in the book) that may impact loyalty of which we are not aware.  This is simply the start of a journey to explore how the loyalty levels can be measured and managed. …It is only when all the three roles (leadership, HR and boss) play their parts well, will the Truly Loyal levels be sustainable.  There are four appendixes which are attached towards the end of the book explaining the methodology (Appendix A and D), a note on the reward penalty analysis (Appendix B), and the points to ponder for all the factors (Appendix C).  A small bibliography at the end leaves the reader with a better reading list on the related issues.

The book is written in a very simple language and the illustrations given in different chapters make the book lovable, convincing and clear.  This is a small book with great work, mission and message (Loyalty) which not only is relevant for business organizations but for all types of organizations which are surrounded by people.  Though the book was written around four years back, I strongly feel its relevance which guides the researcher to take up such ventures in future to further explore the spectrum of Employee Loyalty and may be to suggest measures to deal with the yin and yang (contradictions) within and beyond organizations.  I strongly recommend this book to all management scholars and especially to those who deal in HR area.

[published in IJM, Vol 3 (1), Jan 2011, p 101-105]

The 3 Mistakes of my life by Chetan Bhagat

The 3 Mistakes of my life by Chetan Bhagat, 2008, Rupa & Co, New Delhi, India,

A good story after long period. Finished it just yesterday. Chetan's style of writing is simple, convincing and crude at times. The story of 3 friends, from three different thinking styles, three different interests, committed for friendship and common cause. Chetan has been able to take the youth along all through the story by keeping the reader always thinking what-next. A sense of entrepreneurship is projected very nicely and the reader would certainly like the way marketing and strategic concepts are shown practiced by the Govind and others.

In India nothing catches better eye than Cricket, Religion and Politics and this has been portrayed authoritatively through this story. The plot is woven in Ahmdabad, and the whole story surrounds the ambitions of three young friends, one who is very responsible and wants to earn money, another one whose dream of playing for indian cricket team fails, so he wants to see his pupil, Ali, achieving that, and the third one just joining these two friends in their ventures and journey.  The story seems little weak towards the end, specially when the three friends come back from Australia and get busy in their personal ambitions.  The author has been successful in putting lot of masala in the book which keeps the reader attached to the book.  The language and style is easy to follow and adds to the hyphenated glossary.

Chetan shows remarkable understanding of Indians, specially youth and through this work has been able to assert in a manner much better than many other authors.  Keep it up.

A perfect drama, full of message, masala and masti, chetan has come to stay....