POM Mid Term Test

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

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


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

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

Grameen Bank - A Great Example of Disruptive Social Innovation

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

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

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

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








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

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

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

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

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

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

  

Problem Solving

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

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

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

AN INDUSTRIAL STRENGTH PROJECT MANAGEMENT PROCESS

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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