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FINAL VERSION 38002 WORDS October 18, 2022 Organisation and Inclusive Growth Jaspal Singh Organisation and Inclusive Growth Other Books by Jaspal Singh 1. Instruments of Social Research, 2011. 2. Sociology of Organisation – Strategy for Removing Poverty, 2006. 3. Data Collection and Analysis, 2006. 4. Rationalisation of Social Life, 2003. 5. Methodology and Techniques of Social Research, 2001. 6. Society, Culture and Socio-Cultural Change, 1996. 7. Contributions to Sociology of Work and Organisation (ed.), 1993. 8. Samajak Khoj Kee Hai? (What is Social Research?), 1993. 9. Contributions to Industrial Sociology, 1991. 10. Introduction to Methods of Social Research, 1990. 11. Buniyadi Samaj Vigyan (Fundamentals of Sociology), 1998. 12. Samaj Vigyan Kee Hai? (What is Sociology?, 1986. 13. India’s Trade Union Leaders, 1980. 14. Gewerkschaftsfuehrer Indians, 1992. 15. Adoption of Agricultural Innovations (with C. Rajagopalan), 1970., Organisation and Inclusive Growth Jaspal Singh
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FINAL VERSION 38002 WORDS October 18, 2022

Organisation and Inclusive Growth

Jaspal Singh

Organisation and Inclusive Growth

Other Books by Jaspal Singh

1. Instruments of Social Research, 2011.2. Sociology of Organisation – Strategy for Removing Poverty, 2006.3. Data Collection and Analysis, 2006.4. Rationalisation of Social Life, 2003.5. Methodology and Techniques of Social Research, 2001.6. Society, Culture and Socio-Cultural Change, 1996.7. Contributions to Sociology of Work and Organisation (ed.), 1993.8. Samajak Khoj Kee Hai? (What is Social Research?), 1993.9. Contributions to Industrial Sociology, 1991.10. Introduction to Methods of Social Research, 1990.11. Buniyadi Samaj Vigyan (Fundamentals of Sociology), 1998.12. Samaj Vigyan Kee Hai? (What is Sociology?, 1986.13. India’s Trade Union Leaders, 1980.14. Gewerkschaftsfuehrer Indians, 1992.15. Adoption of Agricultural Innovations (with C. Rajagopalan), 1970.,

Organisation and Inclusive Growth

Jaspal Singh

D-142, Ranjit Avenue,Amritsar – 143 001

2014

Dedicated toVictor S. D’Souza

1923-2011

Preface

This book has been dedicated to the memory of Victor S. D’Souza. He was an erudite scholar and a great teacher. He taught and treated his students with caring attention. He knew well how to bring home even the minutest details. He stood by his students and colleagues through thick and thin. Thanks are due to Prithpal Singh, MNV Nair, and for several clarifications, in intense inter-personal interaction. Last, but not the least, I am obliged to Ravindra Nath, for editorial development aid.

Jaspal Singh

Abstract

The world is becoming like a big village these days. Globalisation, with expansion of scientific and technological knowledge, together with broader horizons and

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contested loyalties, is changing the world as never before. Population is exploding.Aspirations are rising. Under the changing conditions of our existence, sustainableall-round development is becoming more and more important. This problem has many dimensions. Different types of organisations are to be planned, meticulously designed, properly put up, maintained and operated for achieving various purposes. Unintended consequences of intended action are to be anticipated, and provided for in advance. Many factors are involved in the process of development. ‘Organisationof the world’, was written on the flag of the French Revolution. Marx, Weber, Durkheim, and others, have tried to explain this problem in their own way. Organisation raises productivity, or growth. Growth is a pre-requisite for broad-based development. In a liberal-democratic state, bureaucrats have to be trained to act according to rules and regulations, with a view to attaining the goals laid down for them by elected representatives of the people. Unintended consequences of intended action have to be worked out and provided for in advance.

1.0 Introduction

Liberty, equality, fraternity and justice. This was the slogan of the French

Revolution. (1789-99). Organisation of society, was the motto on its flag. Liberty

leads the people, is the title of a painting (1830) by Eugene Delacroix. Expansion

of knowledge in science and technology opened up the way for reorganisation of the

world and rationalisation of social life. Capitalism and socialism are two models of

rationalisation. Karl Marx (1818-83) asked the workers of the world to get

organised, with a view to articulating and safeguarding their interests. Max

Weber (1864-1982) showed that bureaucratic organsation is the most significant

innovation of the human history. This makes it possible to continuously perform

routine functions without fail. Emil Durkheim (1858-1917) put forth that society

is held together by morality. Systematic organization strengthens social solidarity

and boosts progress. In due course of time, the constitution of India (1950) also

adopted the slogan raised by the French revolution. Systematic organization

strengthens social solidarity and boosts progress. In due course of time, the

constitution of India (1950) also adopted the slogan raised by the French

revolution.

2.0 Context

Persian soldier who fought against Arab invaders in the battle of Cazima in

633 A.D. were shackled together in pairs, lest they should run away from the

battlefield . Highly committed Arab solider freely fought enthusiastically and

defeated them. Those who survived willingly agreed to become Muslims. All the new

and old converts joined together. They spread good words about their new religion,

all around . Shackled soldiers are despirited (heartless) fighters. They fight to

save themselves. If they could, they would kill their own masters. They cannot be ……………………………………………..

depended upon to do as directed. As we move from slavery to feudalism to

capitalism, the motivation of workers to improve the quantity and quality of their

work goes on increasing.

Let us come to India now. The victory of Alexander the Great on India'snorth-western border in 326 BC cannot be attributed to his fighting power and the

availability of the best technology of his time alone. Less than adequate

organisation in our own country was no less responsible for the defeat of king

Porus. Similar conclusions can be drawn about Babur's clean sweep in the battle of

Panipat in 1526.

Turning to relatively recent times, the British triumph in India can be

attributed to the same reason. East India Company came for trade and commerce. Soon

they started manoeuvreing. They took contracts for collecting land revenue on behalf

of the Indian princes. The latter had become paper tigers. Their writ did not run

far. Their arms were not long and strong enough. Gradually, the Englishmen replaced

the local administrators one by one. Clive conquered India in the battle of Plassey

in 1757. He won with Indian soldiers and Indian money. The gatekeepers opened the

gates of forts with golden keys. We can aver from the writings by historians of

that time that his conquest can be attributed to two discoveries: (1) Indians cannot

get organised by themselves. (2) They can be organised. Indians do not trust other

Indians. The system lacks the will to act and react spontaneously. The country has a

multi-segmentary multi-epochal society. People live in their own protected spaces in

these diverse parallel societies across socio-cultural cleavages. Stereotypes,

prejudice and discrimination against those belonging to other castes, communities,

and regions are deep-rooted and widespread. There are many too many incidents of

altercations, theft and robbery. Wily intrigue and confidence-trickery are rampant.

Some people like to make others look foolish. If we call them over-smart, cunning or

crafty, that would be an understatement. There are wide gaps between what they

think, say, and do. Thus they are not trust-worthy. As a matter of fact, trust and

trust-worthiness, like credit and credit-worthiness, are two sides of the same coin.

Fear to fall down stands in the way of spontaneous reactions, instant cooperation

and purposeful organisation for achieving collective goals. Such an understanding

enabled the Englishmen to devise an appropriate strategy and tactics for organising

the local population, with a view to achieving their own aims and objectives.

With a modicum of organisation, regimented soldiers, hard-working accountants,

and fixed remuneration at regular intervals, loyal servants listened to the commands

of Englishmen and faithfully carried out their orders. East India Company created

the infrastructure for the communication of goods and services. The administrators

refrained from annoying the natives by interfering in their kinship and religious

traditions. Unlike the Portuguese in Goa and Spaniards in Latin America, Englishmen

in India discretely kept away various sects of Christian missionaries at an arm's

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length from themselves. They dug canals for irrigation. They opened post and

telegraph offices. and started government departments for collecting revenue for

administering the country. They replaced rule of the ruler with the rule of law.

Individual judges may come and go, but ‘your lordship’ is the seat of justice,

representing the majesty of law. They taught the subordinates to salute the chair

rather than the man in the chair. They made it easy for trading companies and banks

to operate. They opened up trade routes. In the interest of their own country, they

protected the local market against competition by their rivals. This enabled them to

buy raw materials cheap, sell finished goods dear, and earn reasonable profits for

themselves. Their colony was not organised for production. Even the sparse enclaves

of organisation for trade and commerce were limited to a few focal points. These

were not properly linked to the hinterland, where there was no scope for marketing

the type of goods they dealt with at that time. Chaos prevailed in far-off regions,

which were not of strategic importance for the ruling power. Patchy organisation

served their purpose for the next two hundred years. The company made profits at the

cost of their colony. Some of its officers enriched themselves by hook or by crook,

by fair or foul means. Such steps made it easy for them to take care of the crisis

of overproduction of industrial goods back home. At the same time, it gave rise to

far-stretching unemployment in India. There was misery and starvation all around.

Plains of Bengal became white with the bones of handloom-weavers. On the other hand,

this helped the metropolis to get industrialised and become affluent, at the cost of

poverty of its colony, with a lot of deaths and deprivation.

The crisis of the new mode of production was regulated with two world wars. The

second world war (1939-45) gave them a Pyrrhus victory. They won and they lost.

Things became hot for the colonial power. There was shortage of food, clothing,

housing, electricity and other necessities of life back home. What was happening in

India was not as important for Britain as the postwar reconstruction there and the

cold war against communist ideology. The noise and fury in India at that time

signify much for them. Their calculations showed that the cost of staying put here

would have been high. They did not have to regret that the golden sparrow in India

was flying out of their hands. It presented just peanut as compared to the greener

pastures for black gold in the deserts of Arabia. Western multinational corporations

foresaw a bonanza through a share in the murky deals in crude oil in the middle east

and Africa. They had the money to invest on technological innovations for finding

out oil fields, laying pipelines, buying large ships, and selling their products far

and wide. Their powerful governments stood by them through thick and thin. The

sellers did not know how to bargain. They were willing to take whatever the buyers

gave. Manipulation of price of petroleum products, and disposal of oil money at

will, was going to maintain their superpower status all over the world, for many

years to come.

……………………………………………..

Political parties in India also created the climate of opinion in favour of the

colonial power quitting India A basic assumption behind their agitation was that the

people of this country cannot make progress without getting a say in efforts to

improve the conditions of their life. India won freedom. The colonial power pulled

back in a hurry, leaving the natives to their own wits.

In the meanwhile, introduction of self-government structures like political

parties, voting and elections, media of mass communication, had introduced a modicum

of democratisation in a heterogeneous society with diverse beliefs, but without

democratic will or structures on the ground. In the absence of politicisation of the

entire society, will to power, interest in politics, and supporting norms,

introduction of partial politicisation brought in only factorial empowerment. Robber

noblemen started gathering votes and support for themselves by flattering the voters

in the name of their ethnic identities. Elite competition became intense. Big

landlords feared land reforms and transfer of their farms to actual tillers. Muslim

masses resented payment of interest on loans from money-lenders. The latter were

exclusively non-Muslims. The leaders consolidated their support base by mobilising

potential followers for themselves by way of sharpening their separatist and

secessionist tendencies. They raised slogans like ‘Our religion is in danger.’

There was sporadic eruption of violence on the streets, manslaughter, burning and

plunder, grabbing of property, as well as rape of women, went on unabated. Riots,

arson, kidnapping and rapes in one corner of the country were retaliated there and

elsewhere. Panicky crowds of wretched refugees managed to run away for saving their

lives on the other side of the border, leaving their property behind. Several

families were divided. The refugees suffered deprivation and identity crisis and

became more miserable there. They hoped against hope to come back home after the

disturbances were over. But their dream remained unfulfilled. The myth of return

continued to haunt them, and caused uncertainty and anguish in many minds. The

government and voluntary organisations accommodated them in tents, and houses

vacated by their counterparts here and there.

In the interest of long term strategic political and commercial considerations,

India and Pakistan were set apart and left to fend for themselves, without asking

for a share in the common wealth, or seeking reparations. English language is the

biggest gift that they have given us. It opened up the way to our acculturation with

the wisdom of the west, and the wonder that is their technology. A present, sixteen

lakh people of ethnic Indian origin are still living in UK. There are some more in

Canada, Australia, and other countries under British influence. These countries are

bound by trade and commerce, education, cricket, cuisine, tea, among others. There

is a considerable degree of mutual understanding among them. Their media of mass

communication take interest in the affairs of their erstwhile colonies.

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E.g. 1: Thuggee: Law and order situation in India was not up to the mark those

days. Merchants did not dare to travel alone. They loaded their wares on mules and

camels and joined a caravan going in that direction. The leader of the caravan took

somebody who showed the direction and a couple of armed security guards along, with

a view to facing hazards on the way. All of them headed together towards their

destination. The long and arduous journey brought them near one another. They halted

on the roadside in makeshift shelters and inns. On the way, some cheats, posing as

genuine traders, joined their company. They established rapport, understanding,

with their potential victim and won his trust and confidence, using various tricks.

They found his weak points. As soon as they got an opportunity to do so, the fake

traders breached the trust of the genuine merchant. They broke his defense

mechanism, strangulated him with a scarf to death, them whisked away his goods,

swiftly disappeared and became untraceable. Such conmen enjoyed protection of some

princes and big landlords in the region, with whom they had to share the booty. Such

incidents stood in the way of business and commerce in the country. The East India

Company was interested in opening up various routes for trade and commerce. When

such incidents crossed all proportions, they took measures for pinpointing the

culprits and understanding their modus operandi. They established a thugee and dacoity

bureau for this purpose. The bureau was given a free hand and full support from the

topmost level for overt and covert operations. Many thugs were brought to book with

diluted legal procedures. Later on the goals were displaced and the thugee bureau

switched over from protection of travelling merchants to monitoring of information

and surveillance of the general population. They went on carrying their operations

under new labels with the same old procedures, precedents and bent of mind. Thugee

can be classified as an instance of feudal robber romanticism. The same is the case

with the methods of dealing with them.

There are gaps in communication. Were they habitual offenders? Yes and no. Were

they fanatics? They were as religious and superstitious as the rest of the

population. Critics say that the regime’s rule of law pretensions to the contrary

notwithstanding, blaming the victim was the colonial administration’s way of getting

rid of resistance to their rule. They gave the dog a bad name and killed him.

.

There was drastic change in the situation after the second world war. It became

necessary to recognise realities and come to terms with the situation by giving all

and sundry an opportunity to sell the output of factories, without protecting the

markets in the colonies for the metropolitan countries alone. Open up all markets

everywhere, for free trade with competitive performance, was the assumption behind

decolonisation. Rise in state-expenditure, migration, middle-classisation,

consumerism, bore the brunt. Soon their erstwhile enemies re-emerged from the debris

of bombarded cities, like a sphinx. They gave them intense competition in the……………………………………………..

marketplace. With the explosion of new knowledge, high creativity and innovations in

mechanical, electronic, bio-chemical, nuclear and astronomical technologies have

brought the economic circumstances to another turning point. The forces of

production are changing rapidly. Agricultural innovations are being adopted. Another

industrial revolution is knocking at the doors. The entire immense milieu is

getting changed and transformed. After its emergence and rise, the capitalistic mode

of production is getting entrenched all over the world. Change is a process.

Transformation is the culmination of that process. Globalisation has opened up the

way for organistion of the whole world.

3.0 Pre-organisational organisation

Let us clarify the concept of organisation by distinguishing it from some closely

related and easily confused terms. It is different from association.

E.g. 2 : Passengers traveling by a long distance railway train chat, eat parched

groundnuts, and play cards together. There is no special purpose behind such

companionship. They get down when the train arrives at their destination. Later on

they may remain connected through old memories, greeting cards and re-union. Regular

commuters become of close friends.

E.g. 3 : A country-club is a place for meeting, eating and cheating. Members get

together now and then. They eat snacks and sip wine and beer. They discuss what is

going on around. They gossip. They laugh together. Their wives accompanying them

praise each other's dresses at their face, and do back-biting, especially against

their mothers-in-law. Thus: I am firm, you are obstinate, she is a pig-headed fool !

They visit their club frequently, just for the sake of it. They are familiar with

its walls and doors. They are relations-oriented, not task-oriented. They tend to be

more sentimental then substantial. There are ups and downs in their relationships.

E.g. 4 : Modern universities intensively compete with one another for production and

distribution of knowledge. They live not only from education, but also for education.

Their teams of scholars are well-organised to gather new facts and interpret the

already available facts in their own novel ways, before their competitors in

different nooks and corners of the world are able to overtake them. On the other

hand, old-type universities are hardly ever well-organised for academic

productivity. Recruitment, admissions, and copying in examinations on compassionate

grounds, are rampant. So is plagianism. The academicians therein are more interested

in occupying higher social status than in performing socially useful productive

functions. A lot of time is wasted in roaming around and pulling each other’s legs.

Co1leagues are more interested in strutting around, plucking one another's feathers,

and mongering scandals. Employees go on pushing files at the pace of a snail

drenched in wax, without any hurry. Emoluments and perks are good. Supervision is

lax. If some scholars here and there are interested in pursuing excellence in

academic activities by transcending the system, this goes to their own credit. No

wonder then that the same professionals are less creative and productive when they

are in India than when they migrate to countries like UK and USA. Nevertheless,

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while modern institutes of higher education are supposed to be centres of

excellence, most universities in countries like India are centres for proliferation

of folklore and playing politics for maximisation of personal benefits. They fail to

come up to the mark for satisfying the changing structure of needs in their

environment.

E.g. 5 : There is no right and wrong in a democracy. There are only pressure

groups. Trade unions are pressure groups for entering into negotiations with employers

and managements over wages, conditions of work and standard of living, or other

problems as and when these arise. This is done with a view to safeguarding the

interests of employees at their place of work. Less militant trade unions call

themselves associations. Their continuity is ad hoc. They are conciliatory in their

approach. They are interested in taking up individual grievances rather than

fighting over collective issues. Rise, stabilisation and entrenchment of trade

unions takes a long time coming. Associations fall short of being organisations.

3.2 Mobilisation: Like association, mobilisation is also different from

organisation.

E.g. 6 : Wheat crop has to be promptly harvested. Otherwise, a lot of it would go

waste. For some reason, a peasant fails to do so in time. This jeopardises the

subsistence of his family and meeting the demands of revenue collectors before the

next harvest. He begs of his relatives and friends to come to his rescue. He looks

after their hospitality as well as he can. They take concerted action work

hectically, and do the needful in time. He feels obliged to them. This is an example

of mobilisation.

E.g. 7: During troubled times, a medieval king used to send a call to noblemen who

owed allegiance to him to send some horse riders, foot soldiers and able-bodied

helpers on a temporary basis. Those called in for active service were deployed to

serve in war. Usually, they brought with them their own horses, swords, spears and

other weapons. They were not paid fixed emoluments at intervals. They received gifts

and rewards in acknowledgement of their cooperation. They also got a share in the

looted enemy property. The king himself got a lion's share of the conquered wealth,

slaves, and land. When the king was happy with their service, he bestowed pieces of

land conquered by him upon noblemen, and saints who prayed for his victory. They in

turn allocated small fields to their supporters for cultivation and plots for

constructing cottages. In return, the latter had to give a share of the crops

harvested by them from that land. Families of the tenants worked hard for

cultivating the pieces of land allotted to them. They supported the regime. Whenever

their services were required, they were willing to do and die for the king, without

reasoning why. In continuing acknowledgement of their allegiance, on special

……………………………………………..

occasions the feudal lord and the king received tributes from their subjects. This

is a feature of the feudalistic pattern of society.

E.g. 8 : In a patriarchal society, during an emergency, or whenever he can stimulate

a hype and precipitate a crisis on the pretext of some grievances or issue, a

demagogue comes to the centre of the stage. A demagogue is a political leader who

seeks popular support by creating mass hysteria. He stokes fires by denouncing and

provoking his opponents. He undermines their credibility. He makes a hue and cry

that those from other segments of society are getting undue advantage over his own

people. He appeals to his supporters’ emotions by raising slogans instead of giving

rational arguments. He agitates and sharpens their threat-perception. He makes them

believe that they are in danger. He appeals to them to get united. The ruling party

enjoys the spite between the demagogue and his opponents. He gathers crowds and

hysterical mobs on the streets, with a view to fetching legitimacy for himself. He

stands in front of a gathering in a street, calls himself master of the situation,

waits and watches. Otherwise he has hardly any control on their actions. They are

spectators, who have come to see what is going on. He lets the power-holders know

that he is going to debunk them. The latter performs the ritual of responding to the

situation by climbing down and issuing a press statement that they hope various

actors in the situation will do what they ought to do, and they believe they would

do. In his own mind, the rogue defines the inclination to do what one should not do

as a great human virtue. He never fails to respond to its call. It goes on. They let

the parties squabble among themselves. The situation drifts along. Through light

infringement of law, without inviting action against himself, the mischievous leader

increases his nuisance value. There are incidents of quarreling, beating up, burning

and on the streets. Crowds are incited to become mobs. They become furious and are

bent upon violence. The authorities go on to wait and watch. They want to give the

impression that the situation is under their control. They drift along. They are

under pressure from various directions to maintain law and order. Sooner or later

their nose is full. Then they assert that too much is too much. The demagogue brings

home to them that nothing can be done without him. When they fail to take him to

task, they join him. They bargain with him under the table and over the counter.

They seek his cooperation to defuse the situation. The trouble-shooters appease him.

Some of his demands are met in principle. He is promised concessions. He is given

something to keep his mouth shut. In return, he helps the authorities to defuse the

situation, and exercise a semblance of control. Even though implementation is done

by fits and starts, his ability to precipitate and defuse crises fetches legitimacy for the

leader from the streets. He becomes known as a confirmed trouble-maker. He becomes

strong enough to impress his followers by getting things done for them as and when

required, when he puts in a good word for them. They support him and vote for him in

elections at village, local and state levels, connected vertically to each other.

Some residents of a village are tied to residents of other villages in the region.

They are vertically linked to the state level leaders.

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E.g. 9 : A lashkar is not organised for the production of goods and services. It is a

mob of unregimented soldiers without uniform and standard weapons. They are

mobilised by a powerful warlord or charismatic leader for storming his enemies and

fetching legitimacy for himself from the streets. They act like a band of robbers or

a swarm of locusts. The leader gives a call to his loyal and obedient followers by

invoking their threat-perception and giving hopes of valuable rewards, often other-

worldly.

The point to be noted is that mobilisation is different from organisation, the main

concept under clarification here. As a matter of fact, these are neither mutually

exclusive nor collectively exhaustive categories.

3.3 Factionalism – Politics of scarcity

Factional allegiance is based on mutual protection of each other's sphere of interests,

rather than on ideological commitment. This extends to the civil administration.

Factional leaders offer patronage to government servants in return for decisions

partial to them and their followers. The state-level leaders are in turn linked to

all-India leader.

Like an association, a faction is also different from an organisation. Factions are

dynamic rival coalitions at various levels. Factional networks are interlocked with

other similar webs. They act together to maximize their benefits. They reward their

clients, who stand by them through thick and thin. Others persons are classified as

friends and enemies. The enemy of an enemy is a friend. Dynamism implies that their

membership is not stable. Even though changing over from one side to another is not

appreciated, somersaults are common. In a faction-ridden milieu, it is not possible

to live well without joining one side or another. Who is with whom becomes more

important than what is right or wrong or what one can do. Decisions are made after

looking at the face rather than facts of the matter under consideration. Quid pro quo

(do one thing and get one thing done in return), that is the understanding. ‘Show me

the man and I will show you the rule’, becomes the rule in practice.

E.g. 10: Under the actually existing conditions in India, a top-notcher looks around

for some trusted persons at various levels to provide reliable information and to

see to it that the agenda set by him is implemented , by hook or by crook, by fair

or foul means, under the cover of ‘all is well’. With view to achieving this goal,

he appoints a trusted person as the chairman of an autonomous corporation. The

latter has his own priorities. He gathers around him a core of hatchet-men with

nuisance value, and some sympathisers, who depend upon him for favours. He carefully

listens to their grievances when they approach him with a request. He helps them to

butter their bread, in expectation of mutual obligation at the time of his own need.

Eventually, they are supposed to pay back in the same coin at the time of his need,

and help him in bringing his chestnuts out of the fire. The leaders are like the

followers and the followers are like their leader.

Factions split the structure of an organisation into cleavages. The man at the

top is a patron. He owns or controls resources and enjoys apical dominance. He is

……………………………………………..

surrounded by a core of followers and a periphery of sympathisers. He goes out of

the way to win supporters for himself. He puts his clients under obligation, in

expectation of the latter eventually standing by him in good stead at the time of

his need for bringing his own chestnuts out of the fire. Do something, and get

something done in return, that is the way. He functions pragmatically, under the

garb of justifications. He pulls ropes. Cases are got expedited. In disregard of the

merits of a case, rules and regulations are applied, bent, circumvented or changed,

in favour of his own men. At the same time, they see to it that those who are

against them are not allowed to get away with what they want. Passions override

rationality. Opponents who throw spanners in the wheel are taught lessons. A lot of

time is wasted in wandering around for justifying their own acts of omission and

commission, while considering and denouncing the rivals. Factions are schools for

scandal.

If the attitude of a boss at the top is perceived to be favourable towards a

person, everybody in his camp will listen to him carefully. Such blocks concentrate

organisational resources in the hands of those who are bound together by mutual give

and take. They deal out everything among themselves. Such mode of conduct shifts

stress from broader issues and organizational objectives to narrow concerns,

individual grievances and disputes. Inter-personal tensions and conflicts increase.

Such unplanned informal groups make miscommunication, passing on the buck,

misappropriation of formal authority, re-functioning of collectives resources for

private use easy. These facilitate goal displacement, and diminish organisational

effectiveness. Beyond a certain amount of normal pathology, a faction-ridden

organisation can be diagnosed as suffering from medievalism. Consequently, an

organisation falls down from a higher pedestal of solidarity, productivity, and

competitive performances to interpersonal tensions, conflicts, and bankruptcy.

Allocation of the available resources becomes a zero sum game, between power

groups, at the cost of unorganised sections of society/organisation. Cleavages not

only restrict production but also distort development. Factionalism is a cause as

well as a consequence of under-organisation and cultural poverty. It is a feature of

societies in transition from tradition to rationality. Traditional links have not

broken down, while modern connections are still on the way. Factionalism hinders

organisational effectiveness.

Factions are pragmatic, not principled. They operate in the shady area

between games and fights. Factionalism is a game insofar as it seems to

follow certain norms. It is also a fight, for the reason that in practice

these norms are often flouted. This is a distinctive feature of loosely

structured societies on the way to systematic organisation.

At present politics in India is elite competition. The masses are only

marginally politicized. Political parties are wobbly conglomerations of

factional leaders, with transferable membership. When they cannot do

without votes and support, they somehow mobilise the masses in the name of

anything that works for the time being. Politics of scarcity and politics

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of passion are rampant. We can also formulate this by asserting that

factionalism facilitates cronyism and dishonesty. This can be checked with

specification of criteria for the exercise of discretion, enforcement of

the rule of law and putting the culprits to shame. It appears that under

the changing state of affairs the pressure for competitive performance

driven by incentives will sooner or later make them come round to act

according to new norms imposed by the rational-legal constraints.

(DIAGRAM FROM PAGE 96 0f the book)

4.0 Organisation - concept clarified

This word can be written with an s or z. Briefly, it is a social entity within a

suitable environment.

An organised society is a well integrated unit. It is characterised by systematic,

thorough, sharing of labour according to rules. There is centralision of authority,

differentiation of functions, specialisations of tasks, training in skills required

for performing a number of diverse occupations, interdependence, coordination of

activities, effective communication, as well as organic solidarity. The environment

provides for defense from outside and internal security with restitutive

(reformative) not retributive (teaching others a lesson) justice. Such a society

contains competitive work organisations with a high level of solidarity and

productivity.

4.1 An organisation is, first of all, consciousness. It is based on awareness,

understanding and, perception. It is abstract (like the sound of music or the

flavour of food), not concrete (like a musical instrument, or food itself). It is

virtual (real in its consequences), not real in itself. Its members are loyal to

the chair (an abstract idea), not to the man in the chair (concrete individual). An

organisation is a rational legal entity, not a living being. This is a

civilisational accomplishment. During the course of interaction, individuals find it

necessary to build up enduring relationships. They hope to get something by working

together. They develop reciprocal trust and confidence. They get united at a right

place under the right circumstances. Such a system is conceptualized as an

organisation. Its members come and go. But an organisation persists and carries on,

as if for ever. After the man at the top is replaced by a new one, the organisation

continues, as if nothing has happened. However, after a catastrophe, it falls down

like a house of cards In contrast, social segments remain stable. For instance, a

factory, a hotel, a school, a sports club, a trading company, are organisations,

while castes are segments. All organisations are not alike.

4.2 An organisation is different from a Q. Those waiting in a Q are patient and

orderly. They do not huddle together. They are there to pursue their own goals. They

……………………………………………..

want to buy tickets etc. turn by turn. Individuals bound together in an organization

pursue collective goals.

4.3 Similarly, an organisation is different from a family. One grows up in one's

family of orientation. One establishes a family of procreation by marriage. The goals of a

family are diffuse. Manifestly, it exists just for the sake of it. Its latent

functions include sexual, reproductive, economic and educational. An organisation

falls short of a society. It is a sub-system within a network of social relationships

and the total social phenomenon. An organisation is an instrument for performing

specified tasks in order to achieve common goals. It is also an institution with

role expectations.

4.4 A Political party is an organisation for entering into struggle for power.

Democratic parties do so by influencing public opinion for getting votes in

elections. A political party has a program. Those who finance it have a say in

formulating its program. Channels of communication become active during election

campaigns. Its leaders, cadres and members are arranged in a hierarchy. Parties

enter into conflict for capturing power. Power is a source of wealth and prestige.

Authority is legal and legitimate power. Sooner or later, any political party

becomes an oligarchy, and tends to perpetuate itself. Political parties in India

are tweedledum and tweedledee. Their leaders frequently switch over their loyalties

from one side to another. Parties woo potential voters with election manifestoes.

But the voters are not swayed by manifestoes alone. Such verbal accounts tend to

contain merely programmatic statements without implementational implications. Voters

do not trust the leaders or their ideologies and emotional appeals to vote banks.

They make promises, but cannot be depended upon to deliver. For most voters,

abstract hopes (remove poverty) and even promises regarding local problems

(waiving off loans, legalising slums) are less important than concrete rewards (like

free rice and bicycles, alcohol and drugs, jobs for themselves and their children).

These days leaders are supposed to keep in contact and interact with the voters in

their constituencies, now and then.

4.5 A state is a super-organisation. It possesses monopoly of violence within its

territory. Its writ runs far and wide. Its goals are laid down by those who control

it. In its own interest and in public interest, it establishes environmental

conditions for the formation of other orgaisations. All states have to protect

themselves. Army, navy, air force, police, intelligence and diplomacy, guzzle a lot

of the available resources. The expenditure increases manifold in war time and

during calamities.

4.6 What, then, is an organisation? Various types of organisations are formed at

different levels. All of these are not alike. But in general, an organisation is a

formal combination of interdependent individuals with common goals, working within an

enabling environment. A whole is larger than, and accomplishes more than, its parts

(1 and 1 are 11). It has structure. It performs specified functions, with a view to

achieving certain manifest and latent functional objectives. Rational-legal

arrangements are made for the achievement of goals. Thus, those in control are

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enabled to exercise discipline and impose control (order). Various elements are put

together to form a structure. Gradually, a community, i.e. a group with shared

identity, comes into being. Gaps and overlaps are removed. The whole lot is so

arranged that things can be done in a well and proper manner. The whole is greater

than the sum of its parts. It consists not only of the aggregate of these parts, but

also their inter-relationships. Their global properties are different from those of

their parts. We get the advantage of size. Speed and efficiency go up.

Organisational solidarity gets enhanced. So does productivity.

One who says organization says hierarchy. Members perform the tasks laid down by the

management, in return for payments in cash for satisfying their own and their

dependants’ needs for consumption. The subordinates do as directed by their

superordinates. They are not supposed to be more loyal to their organisation than

those above them. Decisions made by those above for the attainment of organisational

goals are communicated downwards to those below through proper channel. Compliance

reports are conveyed upwards in the same way. Such feedback enables the decision

makers to take further necessary action in the matter. Sometimes information is

prematurely leaked or manipulated by way of informal channels of communication for

goal displacement.

5.0 Organisational roles

Who does what ? Who is responsible for the emergence, ascendance and durability of

organisations? Statesmen and entrepreneurs. Political structures generate

economic policies. Statesmen are far-sighted leaders with a will to power. They can

translate their dreams into reality. They can make realisable plans. They are at

home in making people forget their differences, compromise, and act together. They

become active at the time of formation, transitional periods and crisis situations.

A statesman is a definer. He may like to make his country great. He influences

public opinion to

create the political will to go in a particular direction. He is capable of

making the impossible possible.

5.1 Entrepreneurs are captains of business and industry. They are interested in the

achievement of their own goal of profit maximisation. An entrepreneur is a dynamic

performer. He is determined to succeed. He provides creative and innovative solutions

to problems. It is said, when he touches iron, it becomes gold. He finds a need and

fulfills it. He invests his money in order to make more money for himself. He dares

to take calculated risk. He works out a strategy and tactics for coordinating

interdependent functioning for setting up a business. Sometimes he gets. Sometimes

he regrets. But in the long run he gains more than he loses.

Managers are duly trained professionals in banking, finances, human relations,

logistics, marketing, research work, etc. They direct, control and perform their

routine functions, in return for pay and perks from the organization. From time to ……………………………………………..

time, consultants of various types (lawyers, journalists, mineralogists, e.g.) stand

by them in return for fees.

E.g. 11: Find a need and fulfill it. That is the formula. East India Company bought opium

cheap in Bengal. It was carried to China in Indian ships. The stuff was sold dear

there. Even today, trade in narcotics is a high risk business with high returns.

The profits were transferred and used to bolster capitalism calculability,

accountability, regularity, economic growth, employment generation) in England.

Nothing is good or bad, but thinking makes it so. Either get or regret: that is the

binary code for entrepreneurs.

E.g. 12: Business idea. A scientist innovates a thorn-less red rose. He sells its

patent to an entrepreneur. The latter gives contracts for getting the rose plants

cultivated in Sikkim, and the product made ready on due dates. The flowers are

securely packed and forwarded to nearby airports for delivery in Delhi, Kathmandu

and Amsterdamm. The entrepreneur advertises and markets the product in India and

abroad for the benefit of lovers all over the world. Later on, other exotic flowers

can be bought and sold through the same channel all round the year. A number of

persons can earn their livelihood through such ventures. Entrepreneurship promotes

economic growth.

5. 2 Entrepreneurship

Sharp-eyed entrepreneurs employ themselves and create jobs for others.

Entrepreneurs generate wealth. ‘When he touches coal, it becomes gold.’ An

entrepreneur takes initiative to think out a plan, to take calculated risk. He

invests his money to earn profit and amass wealth. Such persons promote economic

growth of a country.

Entrepreneurship is triggered along the following dimensions: abundance of

motivation, socio-cultural factors, access to starting capital, education in the

required job skills and work values, etc.The following problems face entrepreneurs in India: Taxation, corruption,

infrastructure (energy, transport, etc.), licenses and clearances, legal system,

information gaps, labour laws, and lack of education in relevant skills and values.

Certain traditional trading castes have excelled in entrepreneurial activity.

Large-sized organisations are arranged in a hierarchy. Inequality is part and parcel

of organisation. Super-ordinates recruit their subordinates possessing the required

qualifications, competence, and experience. Apart from their job skills, they have

internalised work-values like discipline, hard work, punctuality and teams work.

Kinship, friendship and compassion slow down an organisation. Administrators and

managers act according to rules and regulations, and standing orders. Workers sell

their labour and not themselves. They are at least formally free to come and go.

Managers are not slave-drivers. They manage with plums, without a whip. They do not

demand. They command. Organisational authority is neither chaotic nor despotic. It

is hegemonial.

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5.3 Talented, tested and trusted professional managers/ administrators occupy top

floor in the hierarchy. They are well-versed in communication and decision-making.

They are capable of dealing with people and getting the work done by them. This

enables them to plan and supervise, to give commands and exercise control. They are

more dynamic and flexible than their subordinates. They are systematic and thorough.

They see to it that everything gets done in time, and nothing remains undone. A

manager is well-groomed and tip top. He does nothing, but exercises his authority to

see to it that everything gets done.

The officers and employees of an organisation are like spokes in the wheel.

Everybody cannot do everything. Nobody is indispensable. Superordinates are

interested in achieving the collective goals. The management wants to impose

controls and reduce costs. Subordinates help them to do so, in return for the

achievement of their own goals, like earning a living for themselves and financing

the needs of their family for consumption. They get precisely calculated rewards,

not according to who they are, but according to what they do. In return, they are

accountable for giving a measured output of acceptable quality. They do their work

with commitment and involvement. Unlike slaves and bonded labourers, they are at

least formally free for spontaneous activity in several dimensions of their lives.

Table 1: Tasks before managers

1. Planning by higher level managements2. Assignment of tasks3. Grouping of tasks into departments/branches4. Allocation of resources

5. Feedback and evaluation

5.4 Foreman. It cannot be taken for granted that when a manager says do this,

it is performed by the worker there and then. He has to be observed,

reminded and supervised. A foreman is an upwardly mobile worker, an

intermediary between the management and the workers. He conveys orders

downwards, and carries compliance reports above. He has the backing of the

management to ask the workers to do as directed. Like any middle-man, he

suffers from role conflict between the two sides. Like a mother-in-law, he

suffers from dilemma between her son and his wife. Like a bicycle-driver,

he has to bow his head before the handle-bars above and tread on the

pedals below.

5.5 Worker. A modern labourer gets fixed wages/salary at time/piece rates. An artisan or

craftsman is a skilled workman. A modern worker is not a slave. A slave is captured in

war, and bought and sold or exchanged, kept alive, prevented from running away, and

forced to work hard for his master. Unlike a slave, a serf cultivates the piece of

land allocated to him by a landlord. He owns his own life. He is entitled to ……………………………………………..

protection when it is a question of his life and death, and justice. He opens his

mouth carefully, and is loyal to his master. Bonded/indentured labourers pledge their

services in return for a loan. Such practices are illegal in a capitalistic society.

Workers are at least formally free to take up a job or leave it.

A worker is interested in financing his own, and other members of his family’s,

needs for bread and butter. A chicken in his pot is more important than higher level

needs. Workers can get organised and bargain collectively. A modicum of middle-

classisation has given a boost to consumerism. Automobile workers in developed

countries can now afford to purchase the cars manufactured by them. Managers

coordinate. They direct the activities of individual towards the achievement of

organistional goals.

Organisation across segmentary identities, affiliations and rivalries is a modern

phenomenon. An organisation is an open system. It has its own culture. The will and

the ability to get organised is a cultural achievement. The socio-cultural milieu

exercises constraint on what goes on within. Such a construct cannot be insulated

from its social environment. With change in economic circumstances, rise of trade

and travel, transaction of goods, services and symbols promotes acculturation.

However, with a catastrophe in the environment e.g. economic recession or political

break-down, such constructs crumble down like an apple cart. In brief, let us

cultivate our garden. That is the task before organisers. The manager-worker

relationship, like that between a mother-in-law and a daughter-in-law, is based on

antagonism. The manager has to exercise control, and get work out of the workers.

The latter accepts control reluctantly and restricts output.

The management and the workers do not stick together because they are in love.

They may not even like one another. They work together in order to earn a living for

themselves. They depend upon one another for satisfying their needs. They stick

together, because the former need the latter’s labour power. The latter want the

former’s money for meeting their existential requirements. Their needs are

complementary. Their relationship brings that money out. Their needs bind them

together with one another.

6.0 UnemploymentTable 2: Size of employment in different sectors in India

1. Primary (agriculture, fishing, mining)

55.9 percent

2. Secondary (manufacturing) 18.7 percent

3. Tertiary (services) 25.4 percent

Source: Govt. of India: Union Budget, Economic Survey, 2013.

A society has to generate sufficient employment opportunities in order to provide

reasonable means of existence to its members. Fruitfulness of its efforts goes up

as hordes evolve into segments, and segments get organised. Suitability of the job-

seekers for occupying the available slots becomes crucial. The working force in

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India is heterogeneous. High-tech and heritage, often in ruins, exist together.

There are wide disparities of education, income and wealth. High rise buildings and

pavement dwellings exist side by side. The primary sector is the major employer in

India. It is already overcrowded. Its output is not commensurate with the number of

persons employed therein. Adoption of agricultural innovations is limited to a few

selected regions. Irrigation facilities are restricted. Agriculture is a gamble

with uncertain monsoon rains. Global warming is making the matter worse confounded.

Farming, commerce and small scale industry cannot accommodate many more workers.

With the passage of time, population explosion, acquisition of land for

urbanization, industrialisation, transportation, ceiling on landholdings for giving

land to the tillers, fragmentation, land on the urban fringe coming to the market,

size of landholdings has become smaller and smaller. Their productivity in different

parts of the country is uneven.

In household industry, the whole family works together. The place of work and the

place of living are not differentiated. The entire family works together to produce

whatever they can sell: sewing, knitting, embroidery, utensils, shoes, ornaments,

bamboo baskets, and so on. A middleman takes goods to the market for sale there.

The workers are not his employees. They get whatever the middleman gives. They are

not organised. They are poorly paid.

Small scale industrialists for bicycle/motor parts, dresses, food processing,

furniture, handicrafts, hosiery goods, knitwear, leather, sports goods, printing and

publishing, woolen textiles, etc., tend to be neither creative nor cost-conscious.

They cannot profitably compete with imports from well equipped factories at home and

abroad. This can be attributed to non-availability of inexpensive loans for

investment, poor finishing and packaging, inadequate marketing facilities, and

poverty of potential buyers in the country. Sooner or later, the owners like to

become property dealers, or possess remunerative marriage palaces. The country is

not organised for manufacture.

To top that, the organised, i.e. formal, sector employs only 6 percent of the

working force, the remaining 94 percent being in the unorganiseded (informal) sector

(mining, construction above all). Their rights, duties, and conditions of work are

not regulated. These include migrant workers, people in debt bondage and child

labour. When in distress, some persons migrate in search of work in mines, brick

kilns, sites of roads or houses under construction, becoming workers.

They live in slums on the urban fringe there. There is considerable prejudice and

discrimination against inmigrants in some cities. From time to time, some of them

migrate to well-off villages. They work as agricultural labourers during the

harvesting and sowing seasons. As the demand for agricultural labour tapers down

during the later stages of introduction of mechanical and chemical inputs, it

becomes difficult for them to get any work there. Their associations are weak and ……………………………………………..

are not in a position to speak for them and get their demands accepted. Even though

guaranteed employment scheme in rural areas for 100 days per year has reduced the

availability of migrant workers and has improved their bargaining capacity, their

overall income tends to be low. Rise in national income after liberalisation has

gone to those who matter. It has brought in a lot of price rise and a scrap of

jobless growth, mainly in the construction and banking sectors. Its trickle down

effect is slow. Let us conclude that sustainable development is the way out of

unemployment in India.

6.1 Homeless and jobless persons

With nowhere else to go, many new migrants to cities make street corners, roads

and footpaths their home. What to speak of healthcare and unemployment benefits,

numerous persons who build roads and houses in cities do not have roofs over their

heads. Room rent is high. So is land value. They try to live in unauthorised

colonies or overcrowded slums without basic amenities. Some survive in flimsy

makeshift structures with bamboo sticks and plastic or tarpaulin sheets. Some

others, find shelter in buildings under construction, balconies of shops, bridges

and flyovers or on footpaths under the open sky. They sell their wares and sleep on

footpaths on roadsides or under trees in chilly cold nights or in hot sunshine or

torrential rain. Sometimes they get paid work and sometimes not. Some of them are

employed as servants in roadside eateries and tea stalls or in private houses. A few

work as shop assistants, rickshaw pullers, kitchen helpers, etc. Handicapped

persons, drug pedlars, destitutes begging for alms, petty thieves, coming of

different ethnic groups, speaking different languages, have no protection against

torrential rain or harsh sunshine or biting cold. Their density, heterogeneity and

anonymity makes them prone to do what they should not do. Now and then, some drunken

driver mows one of them down with his vehicle. Policemen or musclemen from various

gangs drive them away or let them stay there after extorting protection money. Their

officers tolerate such malpractices, because they too get a cut. It also keeps them

informed and helps them to impose a modicum of control. The administration has built

some night shelters for protecting homeless persons against rain and cold weather,

where all sorts of men, women and children can spend their nights, with cheap entry

tickets. They are provided food, water, bed and blankets donated by NGOs. However,

some beggars do not like to go to such shelters, because they can beg alms by living

around places of religious worship. Similarly, some persons on breaking points

desist from going there, because they are not allowed to take drugs. The wretched

fellows sell whatever they can lay their hands on in order to buy psychotropic drugs

from peddlers. Surprisingly, even talented persons like Arundhati Roy live in

shacks in slums and sell tin tacks on roadsides in Delhi, in order to earn a living

for themselves herself and finance their studies.

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6.2 Let us go to Austria in order to understand the problems of unemployed workers

in a comparative perspective. In 1933 Jahoda et al. published the results of a

classical empirical study in this field, conducted in 1931/32 at Marienthal, at that

time a village, near Vienna.

A small team of sociologists systematically collected data and analysed the same.

Their observations tell us that the village had 1,476 inhabitants. In 367 out of 478

household (77 percent) not even a single member was employed anywhere. The village

land was not fertile. The farmers hardly needed any helping hand even during the

harvest season. For earning a living for themselves the villagers were dependent on

a single textile factory located there. In fact, the owner of the textile factory

had founded that village in 1830. Because of general depression all over the world,

the cloth produced by the factory could not be sold. Therefore, the factory was

closed down in 1929. It became bankrupt next year. The employees lost their jobs and

incomes.

Alternative jobs were not available in or around their village. The economy was

down. They received one third of their pay as unemployment allowance, twice a month.

That too was reduced and entirely stopped after some time. Their minimum basic needs

remained unfulfilled. As time passed, their plight went from bad to worse. They grew

vegetables in small (65 sq. meter) beds. These belonged to the defunct factory and

the local authority and were allotted to them for use. They reared rabbits for

their own subsistence.

Jahoda et al.’s findings reveal that as far as the family budget is concerned, needs

were drastically reduced, balanced against one another, and satisfied at the cost of

each other. Man cannot live without bread. Proportion of expenditure on food

increased. Expenses on food, clothes and house rent went down. They tried to divert

as much as they could to food for children and house keeping. Sugar was often

substituted with saccharine tablets. Children’s shoes and clothes were mended again

and again at home so that they could go to school. They had to be restrained from

playing outside, lest their clothes and shoes should get spoiled. Bed sheets and

elders’ clothes were used to make dresses for children. Broken crockery could not be

replaced. Style of living changed. Habits like smoking cigarettes, visiting beer

pubs, loitering about in the neighbouring city, were given up. Burnt cigarette butts

were picked up to make cigarettes for smoking and selling. Even cats and dogs were

killed and eaten up. Tales of their woes were unending.

However, they did not always behave rationally. There are instances when women could

not resist the temptation of spending money on buying trinkets for themselves

instead of milk for their children. Side by side with potatoes, onions, garlic and

salad, occasionally flowers were grown in the vegetable beds. Of course, man does

not live by bread alone.

Except for a few cases of mutual understanding, the husband-wife bickering

increased. Father’s authority over his children remained intact. Parents’ authority

affected their children’s internalisation of social norms regarding punctuality,

……………………………………………..

work-values, attitude towards life, and goal-setting. They grew up with ill health,

lack of energy, modest aspirations, and limited needs.

One case of illness would overload the family with debt.

Medical doctors in the research team helped the social researchers to establish

rapport with the villagers. They found that the incidence of tuberculosis in the

village came down due to closure of the textile mill. Malnutrition and dental decay

increased. The adverse impact of lack of opportunities for earning a living was more

on mental health than on physical health. Those who have remained unemployed for a

long time are more likely to suffer from psychological problems like lack of self-

confidence, mistrust and depression.

The mental horizons of the unemployed persons became narrow. Their interest in

politics and membership of voluntary associations declined. Political parties lost

members and activists. Political rivalries became mild. From the higher cultural

niveau of political confrontations, the people of Marienthal had a fall to

interpersonal disputes. Mutual suspicions, hostilities and accusations increased.

Mutual hatred and vindictiveness went up. Side by side with this the researchers

also noticed a modicum of willingness to share things and show solidarity with one

another. Inspite of the availability of time, newspaper reading and book reading

went down. They had other worries. Due to lack of care, lawns and meadows were

covered with weeds. Parks became wild. The unemployed confined their attention to

their own families and children. Rather than subjectively identifying themselves

with their last occupations, a large number of respondents defined themselves as

unemployed. They had learnt to get adjusted to their social environment. They had

internalised their new role.

The factory had expanded their living space. It had provided them opportunities for

social contacts. For want of jobs and money, they remained confined to their homes.

They lost contact with the outside world. Nothing happened. No demands were made. It

became difficult for them to pass their time. They had no routine they could stick

to. What they wanted to do early in the morning could be put off till late in the

evening. However, the day passed off without their doing anything. As children, they

had been brought up to be punctual and work according to a time table. When there

was nothing left to do, the day got prolonged. Everyday became a Sunday. Time

consciousness became meaningless. They could freely waste time. They did not know

what to do with themselves. They felt lost. They walked up and down the street

without any hurry. They conversed slowly and walked at a slow pace. They played

cards or chess. They felt tired without doing anything. Time spent on trying to

sleep increased. Sleep kept them warm. It saved their clothes from wear and tear. It

made them forget their worries. Unemployment changed the rhythm of time. They became

irregular, while earlier they used to work like clocks. The culturally prescribed

structure of time broke down. Without work, leisure lost its meaning. Time

consciousness became primitive, undifferentiated. As women had to perform household

chores, they were less affected by breakdown of the structure of time.

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Jahoda et al. constructed a four fold classification of households. This was based on

variables like upkeep of the household, availability of money, food consumption,

time budget, verbal expression as well as unobtrusive observation by the

researchers. The demoralisation took place in four different ways, as shown in the

Table 3.

Table 3: Four stages of demoralisation

Stage Feature1. Unbroken Active, helpful, social, showed initiative again and

again, tried to get a job2. Resigned Hopeless, planless, limited his needs3. Confused Did not understand, depressed, abandoned all hope,

thought all efforts were in vain4. Apathetic Reacted irrationally, quarrelsome, wife and child

battering, begging and theft

As a matter of fact, these are four psychological stages. These appeared in

Maraienthal one after another, as the economic situation went from bad to worse.

Attitude towards unemployment depends on earlier experiences, income, age and

certain personality characteristics.

There were three stages in the crisis. At first, they reacted with shock. Gradually,

they learnt to live with whatever they had. After the initial shock, the situation

became stable. The community remained intact for a long time. Bit by bit, confusion

and apathy went on prevailing.

The researchers left the field of their research with the wish that they should

never get an opportunity for conducting such a study again. They raised a vital

question at the end of their report: How long can it go on like this? It went on

for six long years thereafter. Then empty stomachs and idle brains became devil’s

workshop. Chronic unemployment all around became a contributory factor for the

second world war (1939-45). The unemployed felt relieved when Adolf Hitler’s Nazis

annexed Austria in 1938. Hitler had come to power by promising to control

hyperinflation, stabilise the economy, and remove unemployment. He did it by

mobilising the country and waging war with neighbours for occupying living space.

After the war, his landsmen realised that they had made an epochal blunder. They

industrialised their country and created jobs not only for their own population but

also for many migrants. They raised their profits through trade and commerce, with

high quality wares produced by them. They became more competitive. Their rivals also

saw reason and agreed that everybody will have free access to markets all over the

world. Protectionism was replaced with globalisation. The resulting economic wonder

is there for everybody to see. There is a chicken in every pot. Germany is on the

way to becoming a superpower.

We can say that social and psychological consequences of unemployment promote

tensions and conflicts. Militarism is not the way out. It is costly and destructive.

……………………………………………..

Economic development and cultural change, organizational effectiveness and

rationalization of social life, are the way out.

6.3 Large organistions

Land, labour, capital, knowledge, all these are important. However, organizations

become large or small by dint of the number of employees working there. An oil

refinery with large investment of money is small. However, a detergents factory with

relatively smaller investment but employing 5,000 workers is large. There are

advantages of size. They raise productivity, improve saleability and increase

profitability. Large organisations bring down the cost of production. On the other

hand, they also impair the quality of human life. In the race for achieving their

goals, organizations do not remain accountable and responsive to the needs of their

employees and the general public. They kill their spontaneity. They make their

employees cogs in a machine, and prisoners within a cage.

Their capacity to invest large amounts on the introduction of new technologies

enhances their competitive advantage. That also leaks the confidential information

of their competitors and the state, besides diminishing the privacy of individual

citizens. Large organistions concentrate wealth, authority and prestige in the hands

of a few persons at the top, to the disadvantage of the vast majority.

Going further ahead, ongoing discussions about electronic interaction in cyberspace

reveal that such exchange of information cannot be concealed. Controls from outside

are not possible. Those who want to know will know. An advanced level of

technological development has to be accompanied by a higher ethic of responsibility.

An open society with free access to information would make such concerns

meaningless.

Large sized organisations influence political decision making, public opinion,

educational policies, employment opportunities, consumer behavior, etc. in their own

interest, jeopardizing public interest.

6.4 Organisational effectiveness

This means achieving results, with least effort. Attaining higher output with lower

input. Efficiency promotes effectiveness. Sometimes it is the other way round. The

former can also stand in the latter’s way. There is more to the effectiveness of an

organisation than its goals. Everything cannot be done mechanically with a one-

track mind, in disregard of those who matter in the environment. A man of

principle, who goes on working tirelessly according to rules and regulations without

showing compassion for his friends and kinsmen cannot be successful.

6.5 Overorganisation

There is too much centralization. Nothing moves without command from above. This

hinders individual initiative. There is lack of interstitial spaces for freedom.

India is not suffering from overorganisation. Inadequate organization is the

problem.

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6.6 Partial organisation

What is partial or inadequate organisation ?

E.g. 13 : The Rajdhani Express train passes over, without stopping at most of the

stations on the way. Similarly, a street sweeper goes on putting his signatures on

the street with his broom, letting the garbage lie there. Again, a maid-servant

scrubs the floors with ganja pocha, with gaps in between.

In complex organisations, under-organisation here and over-organisation there,

with gaps and overlaps in between, produces something like islands in a sea or oases

in a desert, or enclaves in space. It does facilitate survival. They help formal

organisations to perform informal functions. However, just to survive is not to

live. Their existence is an important reason for the underdevelopment of

development. Adequate organisation is indispensable for coming to terms with

problems before it is too late to do so.

SEZs over-develop a few enclaves of organisation. They serve to transfer public

resources into a few hands, often multinational concerns. This leaves a vast

unorganised ocean of lack of adequate organisation. Those who already have money,

make more money. Thus they become stinking rich. The poor become destitutes. Those

displaced by downward and horizontal mobility become refugees in need of

rehabilitation. They get stuck and cannot go far in a society with wily politicians,

voracious bureaucrats and romantic robber noblemen. Apart from promoting goal

displacement, inadequate organisation, or organisation in some nooks and corners,

sows the seeds of adequate organisation in societies on the way to development.

We have a multi-epochal, multi-cultural, multi-segmentary society in India. There

are fissures between what people think, feel, say and do. Change in policies and

ideas is proceeding ahead of change in reality on the ground. It appears that coming

events are casting their shadows before. Many people believe that others have

changed and they themselves have been left behind. Ideas have moved ahead of the

actually existing circumstances.

6.7 Goal displacement

Let us proceed by reiterating that an organisation exists for the achievement of

certain goals. These are laid down by those at the top, who own or control it.

Goal displacement means that an organisation is working for attaining goals other

than those for which it came into being and for which it is supposed to be fit to

survive. The members of a soft organisation are reluctant to sacrifice their goals

in their kinship, friendship and local area networks, for the sake of membership in

mercenary pragmatic organisation. Those who insist upon acting according to rules

and fail to go out of the way to stand by their friends and relatives at the time of

their need are left high and dry when they are in trouble. They cannot live well.

Again, recycling of organisational resources for private use hinders organisational

effectiveness. In some situations, informal groups are also utilised for the

achievement of formal goals of a rapid action force.……………………………………………..

E.g. 14: Goal displacement. A business/industrial organisation makes goods of

competitive quality for sale in the market. Mass production and large turnover bring

down the pro rata costs. This trims down the margin, but raises the overall profit.

Competing businessmen go far and wide to sell more and more in order to keep up with

the ongoing speed of transactions. Quality improves all the time, while margins go

down. Creativity and innovativeness stand competitive performance and profitability

in good stead. Number 1 in the market out-competes number. On the one hand, goal

displacement means corruption and self-aggrandisement.

This term is also used in another sense. It involves shifting over to new business

when the situation changes. While the market is flooded with wheat and rice,

farmers in a region shift over to flowers, fragrances, fodder, food processing, or

for that matter dairying, fish farming, poultry keeping, and so on, in search of

viable means of living.

7.0 Organistional culture

This is also known as corporate culture. It consists of shared meanings and values

in organisations. These include the prevailing levels of commitment, mutual

cooperation, discussions, feeling of belonging together, communication,

participation in decision making, cost effectiveness, customer satisfaction, output,

quality consciousness, and so on. It promotes concerted action by promoting pride in

what an organization is doing. Organistional culture varies from one organisation to

another and from one point of time to another. Various organisations have different

types of job descriptions, managerial style, performance appraisal, span of control,

working climate, etc. Some structures are out of place in other cultures. What is

well and proper for the cow may not necessarily be so for the calf.

Source: Peters and Waterman, loc cit.

7.1 Workers’ sub-culture. There are cultures within cultures. The organizational

culture is also accompanied by sub-cultures within organisations. For instance,

workers’ sub-culture is a uniform set of beliefs and behavior patterns of a majority

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of workers. This may include legends of the previous bosses, devaluation of the

present, pessimism about the future, and distance from the management. Sometimes the

workers oppose organisational objectives. They want their demands about higher

wages, better conditions at the place of work, and greater say in decision making to

be accepted. They press for redressal of their grievances. Their poverty is not only

economic but also cultural.

7.2 Work culture in India

Results of empirical studies conducted by Jai B.P. Sinha show that inspite of their

unique history, technology, product-mix and leadership styles, the work culture in

the organisations under study can be divided into two distinct ideal types: (1)

synergetic and (2) soft. These types do not present a dichotomy. These are polar

ideal types.

In the lattaer type, due to pressure from the community to come to terms with the

widespread unemployment there is a lot of unnecessary over-staffing. Jobs have been

delinked from work. Even though authority is concentrated at the top, they find it

hard to coordinate. Trade union leaders and mischief mongers have direct approach up

to the topmost level officers. Top level managers appease a few officers and

workers, who are somehow prominent, have political connections, or possess nuisance

value. The junior managers are not effective. Instead of getting support from their

officers, they discretely advised not to create problems and act tactfully. For

doing so, they have to give up rigidity and become flexible. They nurture some of

their subordinates with overtime etc. payments and overlook their faults. They

cultivate a few favorites to build up networks of mutual obligations for supporting

them at the time of their need. They throw the burden of unavoidable work on to the

shoulders of a few subordinates who cannot help being most obedient and dutiful.

Managements are under a multiplicity of pressures to alter their policies, programs

and day-to-day decisions. The subordinate staff is arrogant and careless. Workers

shirk work. They wander around from pillar to post, looking busy doing nothing, and

trying to get things done for themselves and those in their networks of mutual

relationships. The employees try their level best to create situations to maximize

their own gains and enhance their own status. The procedures for recruitment, task-

allocation promotion and transfer of staff prop up the soft work culture. What goes

on under the name of trade unionism does the same. Pressures from political leaders

do not allow the managers to exercise control. They become helpless and pliant.

Ineffective control gives rise to apathy, grievances indiscipline and

confrontations. Low output, high costs, and running losses follow suit. Eventual

losses are somehow written off by the soft state. Remnants of the traditional socio-

cultural values are allowed to hinder the smooth functioning of the soft work

organisations.

On the other hand, in organisations with a synergetic work culture, the top level

executives are far-sighted visionaries. They resist undue pressures as far as they

can. The managers are in a position to somehow assert their will. They keep an eye ……………………………………………..

on what is going on. The workers have to listen to them and are constrained to act

upon their orders. Plants are well-maintained. Faults are promptly repaired.

Industrial relations are appropriately regulated. Overstaffing is kept within

limits. The workers’ welfare is properly taken care of. They are given incentives

and fringe benefits. Hard work and punctuality are operative norms. The

organisational climate is conducive to working together. It promotes achievement-

orientation, creativity and skill-utilisation. In synergetic work organisations, the

workers are disciplined and punctual. Teams therein act together to raise

productivity. Even though customs are not overlooked , the traditional bases of

social solidarity (kinship, caste, religion, territory, etc.) are not allowed to

stand in the way of rhythmical performance and organisational effectiveness. Thus a

synergetic work organisation becomes competitive in the market. It does not have to

fall back upon subsidies from the soft state.

Both these styles possess a common socio-cultural background. Their employees enjoy

job security. People like to build support networks based upon personalised and

hierarchical patron-client relations. However, the same set of social values, and

the twin national goal of growth with justice, hinder productivity in the soft work

organisations, while it is not allowed to stand in the way of synergetic work

organisations. The social values referred to above include the tendency to work for

oneself or for one’s near and dear ones, unmindful of organisational aims and

objectives. People like to build support networks based upon personalised and

hierarchical patron-client relations.

7.3 Academic culture in India

Contemporary academic culture in India is mixed up with remnants of the past, like

Mughul and colonial cultures, and ruralism of the good old villages. The patrons are

obsessed with their own grandeur and privileges. Instead of performing the

functions allocated to them, they spend a lot of time on playing politics and

competing for status. Their minds are not attached to the pursuit of excellence in

intellectual endeavours. Manual work is beneath their dignity. It is to be done by

servants. The latter are expected to be obedient and dutiful. Their clients spend a

lot of time in following and flattering them. Offices are furnished like drawing

rooms. Officers do not carry their bags themselves. They are invariably accompanied

by subordinates, in search of soliciting their favours. Moustaches are longer than

the beard. Poets, musicians, singers, entertainers, get all sorts of presents and

honours for promoting heritage. Officers and students do not wear working clothes.

All the time, they are always dressed like wedding guests. Their offices are

furnished like drawing rooms, not like workshops. The students are interested in

getting their degrees by hook or by crook, and going abroad in search of greener

pastures, by fair or foul means. The feudalistic academic culture has adverse

repercussions for academic achievement.

Politics of budget and accounts: Some heads of account are kept outside the scope of audit.

Expense accounts, discretionary funds are not properly accounted for. A lot of money

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is spent on constructing buildings, expense accounts, and extravagance on serving

sumptuous meals to important persons in guest houses, seminar and conferences.

Everybody knows that the system of examinations is not working well. But there is

so much money in examinations that nobody wants to give them up. The outlay on

status symbols like vehicles is in excess of functional requirements. Laboratories

do not contain the required equipment, and are not well maintained. Computers

purchased with funds for laboratories serve as show-pieces for officers’ tables.

Libraries do not contain the books that the researchers and teachers need. These

are used for purchasing the books that the book sellers want to sell. Sometimes

sports grounds are sold in order to build shops for consumer goods. Similarly,

amounts spent on sports tournaments and cultural festivals are not commensurate with

the work done. Often the expenditure on buying spices for serving bland food to

students in university hostels exceeds that on cereals and pulses. Many spanners in

the way of wheel of research work come from this direction.

Founders of the newly built universities of engineering and management are past

masters in this game. They have made a lot of money for themselves in this way.

Creation of new knowledge and reinterpretation of the already existing knowledge

are secondary for our top heavy, overstaffed, academic institutions. It is,

therefore, hardly surprising that even though the number and size of universities in

India is bloating day by day, they have damaged equity. The quality of knowledge

being distributed and produced therein is poor.

8.0 Scientific management

F.W. Taylor was keenly interested in optimum utilization of the work force. He

recruited workers on the basis of their capacity to work hard without getting tired.

He replaced rules of the thumb handed down by old experienced persons with the

findings of scientifically conducted job analyses. These were put into practice. The

management controls all steps of work. In this way, manual work and mental work are

kept apart. Planning is separated from execution. Each task is divided into several

steps. The piece of work is split into simple tasks. These are suitably combined.

Workers are instructed to instantly obey orders without wasting time on asking

questions. They are drilled into rational movements with precision and dexterity,

without getting tired. They are given stimulating incentives to work with speed and

efficiency. Ergonomic machines are designed according to suit the convenience of the

worker and his tasks, for giving minimum physical fatigue. Proper spatial distance

between workers discourages them from wasting their time in wandering around and

idle gossip. Some working teams’ tendency to restrict output to what they themselves

define as a fair day’s outturn is checked. This increases the intensity of work and

raises their output. Such steps raise productivity. Taylor motivated the workers to

act according to the needs of the system by giving them financial incentives.

Taylor paid them higher wages. However, job involvement, job satisfaction and job

commitment, go down. Disheartened workers do not desist from resorting to

restricting output, turning out poor quality of yield, absenteeism, turnover, ……………………………………………..

wildcat strikes, sabotage, throwing spokes in the wheel, or otherwise creating

trouble.

9.0 Assembly line

Taylor’s methods were modified and made use of by Henry Ford for mass production of

his affordable family car. The design is standardised. The components are made

interchangeable. The piece of work is mounted on a production line. Unskilled

workers stand along the line, repeating the same movements again and again, (contd)

inspite of boredom and exhaustion. They do not move from one piece of work to

another. The piece of work shifts from one worker to another in a sequence. As the

line advances, they repeatedly go on adding their parts (say, fitting nuts to

bolts). The output of one worker becomes the input of the next one. Bottlenecks are

removed. Idle time is minimised. Efficiency is maximized. Cost of production goes

down. Competitive performance improves. Mounting the piece of work on an assembly

line saves time spent by workers on looking for and moving from one piece of work to

another. The line saves time by regulating movements and acting as a check on lazy

bones. In case the workers individually or jointly restrict production, or throw

spanners in the wheel, they have to stay back later on to make good the loss. Thus

the assembly line controls the pace of work. This keeps the speed and efficiency as

well as costs under control. In this way, Ford reduced the time of production of his

new family car. He compensated his employees for working intensively. He reduced the

time and cost of production, sale price, and pushed away his competitors from the

car market. He made handsome profits in the bargain. Thus we do not control

machines. The machines control us. That changes the man-man relationship too.

Before Henry Ford started making his family cars in Detroit in USA in this way, each

car was manufactured from start to finish in one week per piece. A car used to be a

costly toy. Afterwards, this time went down to just two hours. Cost of production,

sale price and saleability went down. Ford’s profits went up. U.S. vehicles reigned

supreme for full one century between 1908-2008.

The situation has taken a further turn these days. Ford, General Motors, Chrysler

and other firms cannot stand competition in the market. They are closing down,

diversifying and investing on opening up new ventures. Unemployment, narcotics,

vandalism, have made Detroit a dying city. Even churches are being vandalised. The

situation is no more the same as before. In the context of technological

improvement, they are being outcompeted by Japanese firms these days. The latter’

labour costs are low.

The quality of their products is constantly going up, while the sale price is going

down. Multinational corporations are getting some products designed in Korea,

engineered in Australia, built in Canada, and sold all over the world. They are

competing for a larger share of the market. For achieving this goal they are

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designing for lower oil consumption, higher safety, lesser pollution, lower costs,

etc. Hybrid cars with lithium batteries are being designed.

In any case, Ford’s model T family car made it easy to travel. It reduced waiting

time at bus stands and railway stations. This promoted suburbanisation. It speeded

up communication. It promoted family ties as well as middle-classisation, and

freedom.

E.g. 14: The assembly line is there. However, its adverse effects cannot be observed.

This is because it is not allowed to move like an assembly line. The operators and

their associations dictate their own terms, unmindful of the demands of the

technology or orders of their manager, or competitive performance in the market. The

same goods are purchased from the market at a higher rate. The state makes up the

loss by supplying the goods to various government departments at higher rates. In

other words, the public sector serves to provide sinecures to aristocratic workers

at commanding heights of the economy. The losses are transferred to the soft state.

The private sector raises its profit. The point is that the actually existing social

and political relations in India are hindering competitive performance of

industrial organisations.

9.1 Automation

The pen is mightier than the sword. But computers present immense possibilities.

Computerisation facilitates storage, processing and retrieval of a large mass of

data with speed and accuracy. Assembly lines raised productivity by replacing muscle

power of skilled men with intense operations of machines for producing standardised

and interchangeable parts. Automation replaces brain power of human beings with

computers, control systems, microprocessors, and so on. It means that instead of

human operators, machines are deployed to control other machines in factories,

ships, aircraft, and so on. E.g. driverless cars on roads in metropolises,

continuous process chemical factories, and pilotless drones. Thus automation

represents advancement over assembly lines. This is done with application of

controls, logistics, sequencing, continuous processing, feedback, adjustment, and so

on. It saves human labour, time, energy and materials. This also raises

productivity, and improves the consistency and quality of production. Of course,

development costs, investments, and cost of maintenance, are high. Sabotage of

control rooms can cause a lot of damage.

Some empirical sociologists have come to the conclusion that automation reduces

alienation. However, it is a myth that electronic data processing and automation

create new jobs for the displaced workers. To begin with, it creates a few new jobs,

but in the later stages, it reduces the demand for labour. It makes a few highly

educated and skilled persons in some rich countries richer and makes many unskilled

and semi-skilled persons in poor countries poorer. Assembly lines as well as

……………………………………………..

automation have left organisations and societies further behind technology, and

brought about reorganisation as well as social change.

10.0 Deskilling

Deskilling of individual craftsmen sets in when automatic machines, by dint of their

speed, precision and standardised performance, outcompete them in the market.

Modern technology and organisational techniques make the quality of their work

uneven and deskills them.

Assembly lines need a few highly educated engineers, some unskilled operators for

performing routine functions, and meter readers for keeping an eye on the control

systems. By and large, deskilling and degradation of work is a consequence of such

a procedure. Separation of the manual and the mental aspects makes the worker a

component in the machine. Assembly line reduces the intellectual input in work. Low

paid unskilled workers replace well paid highly skilled workers. Even after giving

them some compensation for their highly intensive monotonous work, they remained

dissatisfied. Rate of absenteeism and turnover increased. Scientific management

changes craftsmanship from a science and an art to boring meaningless work.

10.1 Alienation

Henry Ford used to say that men do not have to be in love with each other in order

to work hand in hand. However, human mind and interpersonal relations have to be

fine-tuned with acceleration of speed and intensity of work. After reaching a

threshold dysfunctional consequences of intensive work become manifest. A worker

becomes a commodity. He sells himself and not his labour power. He works under

compulsion. He fails to become spontaneous or creative. His work is not fulfilling.

He gets bored performing the same old partial tasks again and again. He fails to

become spontaneous or creative. He suffers from alienation.

The subsequent racial disturbances in Detroit were structurally conditioned. Their

alienation can be broken up into the following components. (1) Powerlessness. This

means that the locus of control goes outside the individual. (2) Meaningless. Thus

the individual stops understanding men and matters. (3) Normlessness, or anomie, or

taking distance from common values. (4) Self-estrangement, i.e. losing linkage with

one’s environment, work and its product, and even oneself . (5) Social isolation,

remaining aloof. One gets lost within oneself.

These are countered with such measures as ergonomic (socio-anthropological

measurements), job enlargement (horizontal expansion, job enrichment

( responsibility, self control). General education is helpful in understanding the

total perspective. Counseling by qualified and experienced persons hampers

alienation, anxiety and depression.

10.2 Burnout

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Sociologists call it alienation. Psychologists use a partially overlapping term to

express the matter. The employees get exhausted and cannot do more, because of all

sorts of pressures, role conflict and depersonalisation. Their diminished interest

in work and disengagement makes them inefficient, and brings down their output. They

may go through stress, get into depression, suffer from circulation problems and

even heart attack. Their commitment and involvement are used up. Burnout leads to

lack of initiative, engagement and enthusiasm. It is switched over to alcoholism,

drug abuse etc. Burnt out employees become a burden for themselves and a liability

for the organisation employing them, especially during crisis situations. The rope

is burnt out, but its old twists and turns remain, instead of getting adjusted

according to the direction in which the wind is blowing now. They go on smouldering

from within themselves.

There is marked burnout among soldiers in security forces, especially in wartime.

They are worried about the danger and the outcome. They have to remain away from

their families at home, even during festivals. They cannot be allowed to go on

leave, because of conflict between their personal interest and interest of their

organisation. They cannot take care of their wives and children. Absence of fathers

away from home makes it difficult for the sons to identify themselves with their

fathers. Their socialisation becomes defective. To begin with, burnout increases

tensions, and suicides now and then. In the later stages, aggression turns from

within outwards. Social distance between soldiers and their officers increases.

Burnout gets converted into fragging, i.e. fratricide. Armed forces back down and turn the

barrels of guns in the reverse direction. Aggrieved soldiers with weapons start

shooting their own officers/colleagues instead of their targets. Such conduct

presents a serious problem for security forces.

11.0 Human relations

Elton Mayo (1880-1949) reanalysed the results of scientific experiments in a large

factory at Hawthorne near Chicago in USA. He found that the actually existing

organisational reality is different from its depiction by the formal model. In his

opinion, the scientific model gets carried away by rational zeal and ignores the

human aspect. As a matter of fact, mutual fit is more important than superficial

interchangeability of individuals. Mayo pointed out the importance of informal

structures, feedback and group cohesion. The man behind the machine cannot be

manipulated like the machine.

Mayo conceptualised this as the Hawthorne effect. The reaction of persons under

observation gets altered when they become aware that they are under observation.

Then they behave in a different manner. They avoid giving a negative image of

themselves. Thus the illusion of being taken care of by the management, more than

the conditions at the place of work, change the attitude of workers towards the work

they do. Definition of the situation alters the situation accordingly. Mayo shifted

emphasis from the formal organisational structures to relations between individuals ……………………………………………..

interacting in groups. Informal groups with their own norms and channels of

communication , step in to fill in the gaps. Humane treatment brings them together

for achieving their common goals.

Human relations experts, therefore, advise the managers to maintain harmony. Let the

subordinates feel that the former are concerned about the latter. Put them at ease.

Before you say something, let them tell you about themselves. Speak gently.

Courtesy costs nothing, but earns much credit. It is better far to rule by love than

fear. They know them well. They ask them about their own welfare and that of their

near and dear ones, keeping proper distance. Do not annoy them unnecessarily. Put in

a good word for them when necessary. Management and supervisors do not get angry.

They understand. They give a patient hearing and listen to them carefully. They

remember their names, show concern for what weighs heavy on their minds, and what

happens to them and members of their families. They provide them advice and guidance

to solve their problems. Personal touch by the higher ups has a therapeutic effect.

Applying his critical judgment, Theodore Adorno found such an approach to be a

sophisticated device for exercising manipulation. It places job satisfaction above

financial incentives. Adorno conceptualized such instrumentally useful humanization

of relations at the place of work as cow sociology. Domesticated cows willingly submit

themselves to be milked.

11.1 Demotivation

In a modern society, individuals, organisations and territories compete with one

another in search of excellence. Workers are not indentured or bonded labourers.

They are free to resign from their jobs at one place and go elsewhere. Rate of

mobility is high. It is in the interest of employers to create pleasant atmosphere

at their place of work. Such humanisation is due to utilitarian considerations. They

depend upon them. Experts provide recipes to managements for keeping their workers

under control. Managers make use of the results of research in human relations. They

induce them to put in their best. Humane treatment of workers is a great motivator.

Hopes and promises, even after death, are an incentive of no lesser importance.

Let us put it like this. Human relations experts assert that man does not live by

bread alone. Scientific managers quip that he does not live without bread either.

E.g. 15: Shackled soldiers. Persian soldiers who fought against Arab soldiers in the

battle of Cazima in 633 AD were shackled together in pairs, lest they should run

away from the battle-field. Highly committed Arab soldiers freely fought

enthusiastically, and defeated them. Those who survived willingly agreed to accept

Islam. All the old and new converts joined together. They spread good words about

their new religion around. Fettered soldiers are demotivated (heartless) fighter.

They fight to save themselves. If they could, they would kill their own masters.

They cannot be depended upon.

11.2 Humanisation of work

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The following measures are often taken for humanization of the place of work: day

care centre, suggestion box with incentives for good suggestions, workers’

participation in management, profit sharing schemes, celebration of festivals, club

and entertainment.

E.g. 16: A particular slaughter house for chicken employs 50 women. The poultry birds

are inspected, skillfully plucked, slaughtered, cleaned, packed, and dispatched to

the sales outlet. The employees have to work with speed and efficiency, even though

the wages are not high. At the end of the day, the women are allowed to take home a

broiler for their own domestic consumption. There is a chicken in everybody’s pot

for dinner. They consider the workplace as their own. The level of job satisfaction

is high. This can be attributed to there being no gap between the process and the

product of work.

E.g. 17: Watch factory. Some colleges and schools employ their brilliant passing out

students as teachers. There is discrete understanding between the management and the

employees that the latter’s parents will reimburse at least a part of salary as

donation to the institution. Such work experience without any payment improves their

employability as well as their marriage-ability.

Again, a watch factory employs young girls as operators. They work hard with their

nimble fingers, dexterity, discipline, punctuality and other qualities. After the

get married, they have to take care of their husbands and children. Role conflict

between their families and places of work brings down their job commitment and

involvement . Their output declines. Different generations have different values and

perceptions of authority. Their social responsibilities increase after they become

grandmothers. Role conflict between their families and places of work increases. The

frequency of their taking leave in order to attend to their family and religious

ceremonies goes up. Their performance and efficiency at the place of work declines.

This creates difficulties for the management. In the particular watch factory under

discussion here, they started a voluntary retirement scheme with golden handshake,

and recruited younger workers to replace them. This created a better age mix. This

facilitated rationalization without tears. It is clear that the factory is situated

in a society which is neither segmentary nor organized but in transition from the

former to the latter.

12.0 Human resources development

Liberal democratic managements do not punish for failures. They give rewards to

them for achieving. By way of the human resources development approach the employees

are given measured incentives for achieving their planned targets. The managers take

due care of the workers. When they are happy, they work whole-heartedly and put in

their best. Managements do not impose their decisions on their subordinates. They

give suggestions, and induce the employees with calculated incentives. Unlike a

flirt, or the double speak of a politician, they do intend to meet the expectations

raised by them. ……………………………………………..

How do the managements proceed in this direction? First of all the structure,

functions, line of authority, are laid down. Then budgetary provisions and the size

of manpower are cut to exact size. The redundant staff is transferred and the

vacancies are filled in. The required number of posts is advertised, indicating the

qualifications, age and experience. The applications are scrutinized. Those who

fulfill the requirements are called for written test and personal interviews. The

selected candidates are given appointment letters. When they join, they are admitted

for orientation and training courses. Their performance is evaluated from time to

time. They are given incentives for showing better results. E.g. performance

evaluation is a criterion for giving increments and promotions. There are provisions

for redressal of their grievances. Increments and promotions are given after

fulfilling certain conditions. All procedures have to be clearly laid down. Even for

the exercise of discretion, criteria are made transparent. Employees are retired

from service on due dates. Extension in service is granted to a few selected

bureaucrats on subjective satisfaction of the mighty men of the time.

Academic Staff Colleges in India (there are 66 of them) try to improve the quality

of human resources for raising academic productivity through planning, organising,

training, implementing, monitoring and evaluating the performance of university and

college teachers. They arrange orientation courses, refresher courses, and

workshops. Politics of scarcity is a big stumbling block in the way of human

resources development. Those who matter try to maximise their own gains at the cost

of organisational goals.

13.1 Trade unions in India

Let us come to India now. In order to understand, what a trade union is, let us

distinguish it from what it is not. In the traditional Indian society, caste

panchayats used to mediate between the landowning castes and the serving castes, who

were paid in kind. These days trade unions perform mediatory functions between

employers and employees, who are paid in cash. But a trade union is not a caste

panchayat. Like a political party, membership of a trade union is voluntary, not

compulsory. But a trade union is not a political party, even though it may be

closely associated with or affiliated to a political party. Democratic political

parties claim that they do not represent any particular segment of society for

attaining their sectional goals. They serve all the people. In actual practice in

India, trade unions work not only for their members but for all the workers, plus

the general public.

Trade unions are voluntary combinations of workers. They are free to join a union or

to refrain from doing so. The voluntary character of trade unions rules out the

practice of closed shop and union shop. Closed shop means that in order to get their

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jobs, all workers have to get themselves enrolled as members of a recognised union

first. Consequently, some people may be denied an opportunity to take up a job in

the concerned work organisation. Similarly, union shop means that all the workers

have to join a recognised union no sooner than they get a job. Such a practice

negates the voluntary character of trade unions. Check off means union dues being

automatically deducted from their salary at source, and being passed on to a

recognized union in a lump sum. This makes the union less responsive to the needs of

their members, and dependent on their employers. The latter make use of the check

off arrangements to restrict the trade unions and redefine their functions to their

own advantage.

Trade unions are supposed to give words to the interests of employees at their place

of work, and safeguard the same against the employers and managements. For this

purpose, they not only engage in collective bargaining, but also apply pressure in

various ways, including building political will and influencing political decision

making.

Unions have carried on more or less militant struggles in order to get pro-labour

legislation enacted and implemented. Various types of unions differ from one another

in the degree of their militancy. Less militant trade unions refrain from being

labeled as unions. They call themselves associations. Yellow unions or company

unions are established or encouraged by employers and act at their behest in order

to use the workers in the interest of their employers. However, sooner or later such

unions may slip out of their hands. Causes of the rise, stabilisation and

entrenchment of trade unions at start may differ from what they do later on. Once

such organisations come into being, they acquire their own dynamic.

Trade unions are not factions. Factions are leader-centred dynamic rival coalition,

inter-linked at local, regional and nation levels, for control over the available

resources. Factional allegiance is based on patrons and clients mutually obliging

one another for protecting their interests. Factions are activated whenever the need

arises to do so. Elections, court and hospital cases, job opportunities, loans,

subsidies, licenses, succession crisis, and so on.

Trade unions are occupational organization. They do not rest on traditional pillars

of social solidarity like kinship, caste, religion, linguistic affinity, and so on.

Trade unions are supposed to be continuous voluntary associations of employees for

articulating and safeguarding their in their interests regarding allocation of the

available resources, at their place of work. For this purpose, they agitate against

employers and managements for redress of their individual grievances and attaining

their collective demands.

The following factors have tended to promote trade unionism in India: Impact of

outmigration, the world wars and their consequences, the Soviet revolution, British

radicalism, International Labour Organisation, media of mass communication,

politicisation, among others. Trade unionists in India learnt a lot from the Fabians

Sydney and Beatrice Webb. But these were influenced by no lesser extent by Marxists-……………………………………………..

Leninist. For the latter, trade unions are schools for communism. They make workers

responsible, accountable and answerable to themselves. They have a role in

developing the workers’ conscience.

The following factors have hindered trade unionism in India: Inter-caste and inter-

religious tensions, small size of the organised sector – especially manufacturing,

lack of s low grade of urbanization, lack of occupational solidarity, unemployment,

traditionalism, fragmentation, poor finances,

Trade unions in India are loosely organised. They rise during crisis situations, and

remain dormant most of the time. Their leaders go to sleep or drink several cups of

tea everyday – thinking of strategies to precipitate a crisis situation, with a view

to fetching legitimacy for themselves from the streets. They raise a hue and cry for

resorting to light infringement of legal provisions, shifting responsibility,

manipulation of information by way of din of (alleged and observed) paid news, and

other tricks of the trade. Instead of fighting themselves, they play games to make

others quarrel among themselves.

13.2 Trade unions in Germany

Various authors have attributed different functions of trade unions from their own

points of view. According to Karl Marx (1818-83) and Friedrich Engles (1820-95)

capitalists own the means of production, distribution and exchange. They exploit

labourers, who have nothing to sell except their labour power. Widespread

joblessness tilts the balance of demand and supply of labour in favour of the

employers. Competition among laourers facilitates their exploitation. Trade unions

organise the workers for doing away with wage slavery. To a limited extent, they can

improve their economic position. Strikes and other struggles by trade unions bring

home to them the advantages of concerted action. In the long run, such struggles

between the haves and the have-nots lead to the abolition of social classes. Marx-

Engles denied that the struggle for higher wages is futile, because wage-rise is

cancelled by the following inflation. Trade unions see to it that the price of

labour does not fall below the amount of labour power required for its production.

If trade unions intervene militantly enough, higher production does lead to higher

wages. Employers try to off-set their losses by adopting improved technological

innovations. However, by themselves trade unions cannot do away with their

exploitation by capitalists. For achieving that goal, a political party has to stand

by them. Unionism is the first step towards political organisation of the working

class for removing wage-slavery. Trade union leaders spearhead revolutions and act

as agents of social change.

Anti-socialist legislation was passed during Bismarck’s time (1878-90). Trade unions

were allowed to exist only if they opt away from politics. Therefore, the trade

unions focused their attention to increasing their membership, strengthening their

financial position, and providing welfare activities. They opened hostels,

accumulated strike funds, supported the workers during their joblesness, and

published suitable literature. In the process, they became bureaucratized. There

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were complaints of their being irresponsive to the needs of their members.

Pragmatism of the trade unions gradually did away with Marxism from the trade union

movement in Germany.

Eduard Bernstein (1850-1932) was not a revolutionary. He revised Marx’ statements in a

moderate pragmatic way. His model of trade unionism works within the capitalistic

system of society. They recognise realities in order to come to terms with the

problems facing them, using liberal-democratic methods. They try to get higher

wages, status and working conditions, as well as enlightenment of the working class.

Bernstein relegated the dream of socialism to some remote future.

Ferdinand Lasalle (1825-64) was, like Bernstein, a reformer. He was not a

revolutionary. For him, according to the iron law of wages, the existing balance

between demand and supply dicides the wages. Average wages fluctuate around the

minimum necessary for subsistence and reproduction. Lassalle was in favour of free

association of individual workers, with a view to improving their position within

the system, through legal-political means, as far as possible.

Rosa Luxemburg (1871-1919) considered trade unions to be transmission lines for

politicising the economic demands of the working class. They spread class-

consciousness. make workers aware of the need for overthrowing capitalism, and

replacing it with socialism. Thus, economic and political struggles go on side by

side. Mass strikes open the way for a sudden break with the past. Self-perpetuating

union bureaucrats retard it.

In contemporary Germany, the German trade union federation (DGB) follows the

Bernstein line. Trade unions do have fraternal links with the social democratic

party. But they are autonomous. Their autonomy is tempered with social

responsibility. They strive to raise the workers’ status within the existing system.

They use militancy as a tool in public, and cooperative negotiations. Trade unions

function as interest groups for taking care of the interests of their members. Their

present goals include: raising the standard of living of workers, social security,

codetermination at various levels, and crafting pre-requisites for creating an

achievement –oriented society, sooner or later. They intend to emancipate the

workers so far that one day they will become able enough to transform the entire

social system as they like it. They have no intention of overthrowing the existing

social system with a violent revolution.

13.3 Union strategy

Industrial disputes in India are mostly over money matters. Interpersonal relations are

another cause thereof. In order to minimise and channelise industrial disputes,

elaborate arrangements for conciliation (representatives of the management and the

workers sitting together and discussing across the table), arbitration (some

officers and leaders mediating between the two sides) and adjudication (the matter

is referred to a retired judge or trustee of public interest for regulating the

dispute for the time being) have been made by the state in India. However, there are……………………………………………..

wide gaps between what is on paper and what is actually implemented. Issues are

often decided and grievances are redressed on the basis of balance of pressures

between contending interest groups rather than on the basis of legal norms or the

wider perspective. Power is an important variable in decision-making. The over-sized

unorganized sector acts as a shock absorber against unemployment in the country.

They believe that they are employed.

A strike (hartal, bandh) means that the employees stop working together (pen down, tools

down) with a view to getting their grievances redressed. When the employers shut

their doors and do not let them in, this is called a lock-out. Strikes are an

important ingredient of trade union strategy. This is regarded as a dangerous

weapon, to be wielded cautiously and as a last resort. When there is no other way

out, a strike becomes the way out. In order to have a strike the union leaders look

out for when the objective situation. This enables them to unite a following for

themselves and to gather a crowd to fetch legitimacy for themselves from the

streets. Otherwise, they go ahead and rouse their followers in order to create a

crisis, with minimum infringement of laws in such a way that the demands of the

workers are perceived as legitimate. A strike is well-timed so that it damages the

managements and benefits the workers. A modicum of support by the general public or

some power group is also required. Funds are needed to go ahead at every step,

including financial support for needy strikers who lead a hand to mouth existence.

In India, strikes as such are not legally prohibited. Nor is inducement to go on

strike illegal. However, there are legal restricts on certain types of strikes.

Refusal to work overtime is not a strike. On the other hand, a strike in breach of a

settlement (e.g. collective bargaining agreement) is illegal. In public utility

services, a prior notice of 15 days (on a prescribed form) for going on strike or

lockout is mandatory.

Recent developments have shifted emphasis from apprehensions about the formal legal

provisions to the ground reality. The legal procedures are erratic, expensive and

never-ending. Too many technicalities prevent the law and order machinery from

functioning according to rules and regulations. When they fail to make use of the

henchmen to draw their chestnuts out of the fire, managements deploy their musclemen

and take direct action to put down those who raise their heads.

Let us bring this matter to a close for the time being by asserting that trade

unions in India are affiliated to political parties. Political leaders are

adversaries, who understand each other. Political parties are dynamic rival

coalitions of factions. Factionalism is an indicator of games and fights in a feudal

society on the way to capitalistic pattern of society.

E.g. 18: Garment workers in Bangladesh. Some multinational concerns manufacturing

apparel shifted over to Bangladesh from China, where the wages are higher. In

September 2013, garment workers in Bangladesh went on strike. As many as 200,000

employees came on the streets and raised slogans for redressal of their grievances.

A few incidents of roydyism were reported. The government reacted with tear gas and

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rubber bullets. They were demanding higher wages (from $ 38 to $ 100 per month), and

improved safety measures. Comparable wages in USA are $ 9 per hour. Media of mass

communication and retailers in some western countries have certified that the

workers’ demands are reasonable. Moved by the spirit of capitalism, they asked the

government to help the workers. By the end of the year, some of these demands were

met.

14.0 Participative management

This model was put up as an alternative model of development during the cold war. It

was thought that whether it is a workers’ state or a democracy, employees should

participate in decision-making at their place of work. This would not only empower

them to spice the quality of their life, but also improve the performance of stake-

holders at their place of work by bringing out their willing cooperation to work

enthusiastically.

Later developments showed that these were just programmatic statements. These have

never been put into practice, even though some sort of awareness about them is

around the corner. Really existing workers’ participation in management in India is

an empty form without meaningful content. The environment is not conducive for its

favourable reception. This model has failed to make the organisational culture

synergetic. Introduction of technological innovations is changing the actually

existing social situation. Ideology of unity in diversity notwithstanding,

individual conscience remains underdeveloped. A self-regulatory mechanism has failed

to emerge. Supporting norms, operative parts of values, do not possess

implementational implications. Trust is good. Control is better. The objective

conditions for adoption of this model are not ripe enough as yet. This paper tiger

had a premature birth. Worker’ participation in management stands in the way of

prompt decisions. The cold war is over now. Workers’ participations in management

hinders organisational effectiveness.There is a mismatch between the democratic

dreams and the remnants of feudal robber romanticism in our own country.

14.1 Rotation of headship

This is an extension of workers’ participation in management to the institutes of

higher education in India. Until the 1970s the headship of teaching departments used

to be permanent. The senior-most professor used to be the head. Often, he had

founded his department. He had a stake in its performance and growth. There was a

clear-cut line of authority. Seniority was respected. However, the rotated heads

tend to be neither democratic nor effective. New heads of departments do not like

senior persons overlooking their heads. Institutionalisation of rotation has

deepened tensions and status conflicts. Politicking has diminished the standard of

teaching and research. Decision-making has become a matter of who is with whom, and

quid pro quo. A lot of time is wasted in wheeling and dealing, pin pricking, and leg

pulling. This is due to the fact that the collective conscience is fragmented.

Ethic of individual responsibility is fragile. Individuals are interested only in ……………………………………………..

themselves. They fail to play the game in the spirit of the game. There is lack of

rational political will to build a productive organisation. A wag went so far as to

say, with tongue in cheeks, that housewives are being rotated with kitchen helpers!

There are no takers for the idea of rotation of headship these days.

Table 4: Rotation of headship

Teachers Administrators

Rotation

No rotation

Professional autonomy Large span of controlPerpetual succession crisis Clear chain of commandStatus conflict High statusHighly qualified Moderate educational qualificationsYounger OlderElaborate linguistic code Restricted linguistic codeSlow upward mobility Quick promotionsDemocratic EffectivePowerless PowerfulIneffective InfluentialFreedom of science Checks and balances

The crux problem lies with the top-level management. The Vice Chancellor at the top is

a political appointee. This is a lucrative post, with a lot of patronage. His

apical dominance is propped up with architectural supremacy. He occupies the most

spacious and well furnished villa on the campus. His job is difficult. He is under

all sorts of pressures from various directions. He has to maintain a balance

between various power groups with different weights. If he is unable to do so, he

loses his job. The Damocles’ sword of extension hangs constantly over his head. a

balance, loses his job.

VC is all in all. He has executive powers. He carries on by surrounding himself with

a core of hatchetmen and a periphery of sympathisers. The clients depend upon their

patron for favours. Their subsidiary income is high. Rewards are not given for

attaining organisational objectives, but for mustering strength to keep the chair of

their boss stable. Once an incumbent gets in, he is reluctant to leave.

Consequently, the universities are not being scientifically managed for maximising

production and distribution of knowledge. These provide academic sinecures and are

maintained like feudal estates (jagirs). They are not competitive. Thus institutes of

higher education become forms with fake content. If a few individuals here and there

are engaged in the pursuit of excellence, in spite of the conditions in their

social milieu, it is their own fault, and the credit or discredit goes to themselves

alone.

Let us halt here. Unripe division of labour in society, cross-cutting schisms, weak

occupational bonds, uneven social solidarity, underdeveloped ethic of responsibility

are holding the system back at a lower level of development. Society in India is

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only marginally organised. Exceptional pockets of organisation here and there are

embedded in functioning anarchy.

16.0 Japanese management

Many buzz words are being thrown around to recognise the emerging realities and come

to terms with problems. For some time it became fashionable to shower praise on the

wonder that is Japanese management. The size of their goods is compact and small.

The quality of their wares has been acceptable to the users. These are reasonably

priced, because they save on labour charges. Their profits from export earnings have

generated ample profits for investment on further growth.

What is the mode of Japanese operations? Large firms provide life-time careers for

a few workers, on-the-job training and seniority-based rewards for their workers.

Formal qualifications in specialised occupations are less important for them than

informal training and socialisation. Jobs have no boundaries. A Japanese worker is a

jack of all trades. He learns by doing whatever tasks may be assigned to him in the

work groups formed by his company from time to time.

They carry on their jobs in small semi-autonomous work groups. Their members are

carefully recruited. After acquiring polyvalent basic qualifications, more often

from schools and seldom from universities, young men with good grades and family

connections are asked to join a well-established firm offering life-time careers.

Each fresh recruit is attached to a senior worker, who acts as his mentor. Members

of a team work together. They intensively interact with one another and build up

enduring relationships. They provide mutual stimulation, give suggestions for

improvement. They help one another in solving problems and coming out with

innovative solutions. They internalise the group norms and values like discipline,

punctuality, loyalty and politeness. They encourage one another to get involved in

their work, and put in their best. They generate mutual trust and confidence. They

come to know that they can depend upon one another. Spontaneous cooperation with

their group becomes their way of life. Their interpersonal relations become

harmonious.……………………………………………..

Workers’ groups are given joint responsibility. Decisions appear to be coming from

grass-roots. In a subtle way, the employees are made to feel that they are

participating in decision-making.

Their promotion depends upon their seniority, recognition by the group, and

recommendation by their supervisor. The latter is one among equals. He does get a

small amount of extra money in recognition of his contribution. That too is often

spent on giving treats to his colleagues. In other words, apart from the flexibility

of small groups, the channels of communication are kept open. Authority structures

are hidden from view. Formal hierarchy is tempered with informal fraternity.

We can say that the organisational behavior in Japan is different from that in

Europe and North America. The point is that the Japanese society is underdeveloped

in terms of sharing of tasks, differentiation of functions, occupational

specialisation as well as higher technical education . A Japanese manager is a

coordinator, The Japanese model is based on spontaneous cooperation at the place of

work. Subordination is underplayed. A Japanese manager is a coordinator, who

decisions take due account of feedback from his colleagues. Formal as well as

informal communications are used to integrate the workers in their groups and their

community. Due to competition in the international market, informal structures do

not become overpowering. These are kept away from unproductive channels. Managements

in Japan encourage their employees to participate in quality circles, just in time

management, zero defect groups, and similar other activities. Intensive

interpersonal interaction in small groups encourages their members to become

creative and innovative.

16.1 Quality circles

Such small groups (5 to 10) are formed for putting their heads together in search of

ways and means to improve the competitive performance of organisations. They sit

together in a congenial milieu and try to solve the problems facing them. They share

the trials and tribulations encountered by them during the course of their working

together. They meet together and discuss the ins and outs of the problem under

consideration at regular intervals, say once a day everyday. They apply their minds

together. They think out the ways and means for exercising authority to get things

done just in time, raising output, and improving the quality of their output. They

put up proposals for improving precision, reducing the defective pieces, saving on

raw materials, optimising utilisation of machinery, and so on and so forth. The

draft submitted by them for approval has no implementational implications. It has to

be ratified by the higher authorities in the light of their broader perspective.

After this has been evaluated and approved , the outcome of the proposals is sent

down for further necessary action.

Such a procedure has a number of advantages. Quality circles make it easy for the

management to get the willing cooperation of the workers. This raises their self-

confidence and gives them a sense of responsibility. Their commitment and

involvement improve. This raises the level of their consciousness. That leads them

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forward on the way to higher level achievement in future. They come to understand

the constraints in the situation, and apply their minds together to go out of the

way to come out. Procedures get streamlined. They become willing to exercise control

on themselves. Quality circles produce tangible results.

The suggestions by a quality circle can be accurately formulated and systematically

stated in the form of an Ishikawa diagram. The matter can be reduced to its

underlying dimensions. The pros and cons can be weighed together. The input and

output, profit and loss, can be briefly analysed. This helps the decision- makers to

think over what is to be accepted, what is to be rejected, and what is to be

modified. They work out a balance between contradictions, with a view to reaching a

compromise. They try to make their decision as beneficial as is possible under the

given circumstances.

16.2 Technological feudalism

Let us call a spade a spade. The Japanese model is a scarecrow. Coming to its

seamy side, Japan has become an economic giant by making the majority of its workers

social pygmies. The facilities given to them do not let them enjoy a standard of

living comparable to the European workers. In Europe the dominant religions and

political ideologies have created wider networks of relationships and concern for

neighbours. The historical experience of relationships has provided greater

protection to the working class. In contrast, the Japanese are used to social

dumping. Their income is low. Only one-third of their employees enjoy the privilege

of job security and life-long employment. Their age at retirement is 55 years. Not

only do they get old soon, they also become poor in their old age. Japanese workers

have longer working hours, fewer holidays, and lesser leave facilities. Women are

underprivileged. They are over-burdened with domestic chores, looking not only after

their children, but also taking care of the sick and the aged persons at home. The

remaining two-thirds, especially daily wagers, seasonal workers, women, suffer from

deprivation amidst plenty. In the name of greatness of their country, the policy

makers have knowingly sacrificed social benefits (education, health, housing, and

similar other benefits) for the large majority of their population. The elites have

become competitive in the world market, at the cost of social justice for the

masses. The marginalised sections of society have to put up with low-paid jobs, poor

working and working conditions, inadequate healthcare, as well as lack of social

security.

Japanese firms do have trade unions of sorts. One of the managers is deputed

to act as a trade union leader. Every year, they ritually wake up to go on strike.

They call it spring offensive. They want their demands for higher wages and better

working conditions to be accepted. This drama is a strike with an infecting smile.

In fact, a strike with a smile is no strike. It is a mock exercise.

In comparison to Germany, Japan and UK, Japan is an underdeveloped country. It

has a lower potential for further development. In any case, there is no doubt about

it that they are far ahead of India.……………………………………………..

Japanisation is synonymous with pre-rational technological feudalism. If

politically acceptable, this would promote economic growth without social justice.

Managements all over the world are never tired of praising the Japanese model of

management to the sky. This makes the matters easy for them. European trade unions

are in favour of humanisation of social life. The Japanese model is hardly

acceptable as a viable alternative for adoption in a country like India.

Even though adoption of structures has not been accompanied by adequate

adoption of concomitant norms, the liberal democratic model acquired by us through

prolonged cultural contact with Europe via England has acquainted us with the ways

of thinking, feeling and acting of the western countries. We do not know the

language, culture, mentality and weaknesses of the people of Japan well. As a

matter of fact, they themselves are getting westernised. We can learn many lessons

from them and their quality circles, just-in-time manufacture, ancilliarisation,

lean managerial structures, and much more, including their disciplined conduct and

punctuality.

, France and UK, Japan is an underdeveloped country. It has a lower potential

for further development. In any case, there is no doubt about it that they are far

ahead of India.

Workers in Japan are overworked, underpaid, and insecure. Facilities for higher

education and even occupational training are restricted to a few selected persons.

Social welfare facilities are underdeveloped. Women are second class citizens.

Trade unions are a mockery. Japan is supposed to be a liberal democratic capitalist

country. Actually, it is suffering from authoritarian personality, uncritical

obedience, status incompetence, and technological feudalism. This means that modern

technological innovations have been adopted, without giving up the old mindset and

ethics. The Japanese model (modern structures, traditional culture) is a scarecrow.

Their growth is short of being sustainable development.

17.0 Karl Marx

Marx was a dialectical materialist. He reanalysed the contents of the various

publications available in London, and brought together a lot of material in a small

amount of space. He modified F. Hegel’s dialectical idealism into his dialectical

materialism. For him matter is primary, while ideas are secondary. Matter proceeds

in spurts from a thesis to its antithesis. These combine into an antithesis. These

contain the seeds of their own destruction, or contradictions. Thesis and antithesis

are opposing tendencies that point out in different directions. After arriving at a

saturation point, these come to a plateau, or become ripe, and enter into conflict

with one another. Their confrontation unites them. In other words, the tensions are

sorted out after coming into conflict. Like the immersion of Ganpati into the sea

in Mumbai, or Durga into the Ganga in Kolkatta, this gives rise to a new

continuity. Thesis conserves. Antithesis destroys. Synthesis combines. The

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dialectical process goes on and on like this in a cycle, moving upwards in a spiral

towards a higher level of development. There is no beginning and no end in the

dialectical process. It is a moving continuity, with new beginnings. We do not

precisely know what was there before that, or what will come afterwards. According

to Marx, matter exists independently of consciousness. It is not the consciousness

that produces the being. It is the being that gives rise to the consciousness. We

think the way we are. Economic position can also engender false consciousness. With

change in economic circumstances, the whole superstructure of beliefs,

superstitions, myths, ideologies, religions, pillarised by them, crumbles down

like a house of cards and gets transformed according to the new set of circumstance.

Such change takes a long time coming and leaves some remnants of the past behind.

Marx was not a stock exchange broker. He was talking in terms of long term

historical epochs. He divided human history into five historical epochs. Each

succeeding period represents progress over the preceding one. E.g. capitalism

represents progress over feudalism. These are shown in Table 5.

Table 5: Socio-economic formations

Primitive communism Hunting and food gathering. No private

property.

Slavery Slaves, just like animals, are forcibly

captured, and treated like property.

They cannot leave or refuse to work.

Feudalism Owners give land to tenants in return for

military service, share of crop, and

tribute.

Capitalism Goods and services are produced and

distributed privately in a free market

with rule of law.

Socialism Government ownership of production and

distribution of goods. To each according

to his work.

Communism Abolition of private property. To each

according to his needs.

Karl Marx was of the considered opinion that rise of industrialisation opened the

gate for capitalism. The British rule in India served to build up capitalism in

England. The colonialists acquired raw materials cheap, and sold finished goods

dear, in a captive market. They maintained a modicum of law and order and sowed the

seeds of capitalistic consciousness. Survival of para-capitalistic structures in

some pockets in the country is a side-effect of their intended action. Adequate

……………………………………………..

organisation is not possible without taking care of proper moral-ethical mooring of

social life into consideration.

18.0 Max Weber - Protestant ethics

His subtle analysis shows that religious ethics define the purpose of life. The

religious world view gets percolated to the secular sphere too. The protestant

ethics provide the spirit behind the capitalist economic system (counting,

accountability, legality, regularity). It provides psychological sanctions for

promoting savings and investments. It inhibits extravagance. It supplies the

cultural pillars for supporting the capitalistic system of society. The material

circumstances depicted by Marx do not satisfactorily explain the rise of capitalism.

The religious ideas stand in good stead for this purpose. Rise of the spirit of

capitalism is facilitated by rational ideas together with suitable economic

structures. One who claims that it is the other way round, is putting the cart

before the bullocks.

With a view to bringing home this point, Weber constructed an ideal type of the

Calvinistic protestant ethic. Catholicism and Protestantism are two important sects

of Christianity. Calvinism is a sub-sect of the latter. Calvin (1509-1604) from

Geneva in Switzerland put forward (dogma, ideology) that God made the world for his

own glory. He created the human beings. The Calvinist doctrine of predestination

asserts that before a person is born, his fate after death has already been decided.

Such a view is in contrast to the Islamic belief in pre-determination. This signifies

fate in this world and not in life after death. This contributes to fearlessness of

soldiers and not to rationalisation of social life. This is also in contrast to the

Hindu and Budhist belief that one works for one’s own salvation from the circle of

birth and death. One liberates one’s own soul from worldly desires, with a view to

attaining union with the ultimate reality. In contrast to other religions, the

Calvinists are of the view that for reasons best known to him, and beyond our

comprehension, God selects a few persons for salvation. After their death, they are

destined to go to heaven. The others are damned to go to hell. God’s decision is

sacrosanct. It cannot be changed. A Calvinist is apprehensive about it. He is

anxious to find out whether he is a chosen one, or it is the other way round. The

signs of being predestined can be perceived through one’s success in worldly life.

Such signs convince him and tell everybody that this is so. This helps him to get

rid of his anxiety and misgivings about salvation. Success in one’s calling is a

sign (but not a means) of being someone special, who has been bestowed with divine

grace. In other words, he pursues excellence in search of signs of being a chosen

one.

A Calvinist appoints himself as a trustee of God’s will. In order to make that

clear, he determines to succeed. He pursues a calling, a suitable profession or

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occupation. A person is not born into a calling. He fends for it himself. He

diligently puts in hard work, without making a fuss about it or giving excuses. He

works efficiently to the point, with self-control, discipline and punctuality. He

looks ahead with far-sighted vision, without restriction to here and now. He strives

towards perfection, through continuous and systematical physical and spiritual

labour. Escape from day-to-day problems through idle contemplation or unnecessarily

eating all day long or sleeping all over the night is looked down upon.

A protestant is supposed to be a pious person. He is individualistic, without being

selfish. He works neither for himself, nor for his near and dear ones. He functions

for the glory of God. Such a world-view makes him broad-minded. For him, cleanliness

is next to Godliness. He is spick and span, neat and clean. He is self-confident

without being boastful. He keeps his promise. He does not steal. He does not tell

lies. Honesty is the best policy for him, simple living and high thinking is his

motto. He exercises reasonable restraint on himself. His conduct is peaceful.

He makes use of his talent to achieve success in his calling. He becomes wealthy.

However, he does not go on earning money for the sake of earning money. He refrains

from running after it senselessly. He does not fall a prey to temptation. For him,

wealth becomes an evil when it is used for bad purposes like lustful idolatory of

flesh, lavish or ostentatious living, or idle pursuits. When something is either

illegal or illegitimate, it is no good. He lives frugally, avoiding wasteful

expenditure. He saves as much as he can. He sets aside a portion of his savings for

a rainy day. He gives a part of his savings to charity for worthy causes. Begging by

able-bodied persons is ridiculed. Calvinists are of the view that if the workers

are paid too much they will stop working. Therefore, Calvinist workers willingly go

on putting in hard work without expecting excessive demands. Their superiors can

depend upon them. Unlike slave drivers, they do not have to stand on their heads

with a whip all the time. Insubordination is a sin.

The gist of the matter is that protestant ethic promotes this-worldly asceticism and

orderly, calculable rational conduct. Such behavior rationalises an irrational way

of life. Achievement-oriented entrepreneurs are devoted to their calling of making

money. Affiliation-oriented workers are devoted to their calling of working

dutifully and obediently with a sense of responsibility. This suits the needs of a

capitalistic society very well.

Broadly speaking, emphasis on the pursuit of excellence in his calling makes the

protestants task-oriented, while catholics tend to be relations-oriented. The

institutional and the emotional ties are strong in case of catholics. Their priests

are more closely connected with their supporting communities. They are not allowed

to get married and bring up their own children. The catholic church bans family

planning and abortion. Even though all Christians are supposed to love their

neighbours like themselves, unlike the catholics, a protestant is not particularly

bothered about his neighbours. There are more holidays in catholic countries. The

protestants like to work regularly, like a clock. In their day-to-day lives,

catholics enjoy short working hours. They tend to work by fits and starts. They like……………………………………………..

to spend their leisure with their friends and kinsmen. The catholics like to sip

wine while palavering. The protestants tend to become workaholics. Protestants

encourage literacy, by enjoining that everybody should read his own bible. For

catholics, usuary is a sin. This used to discourage capital formation. Protestants

legitimise giving money on loan, with a view to earning interest on the principle

amount. In contrast to the protestant this-worldly asceticism (fulfill your duties

to your calling), the catholic ideal is monastic asceticism. The protestant ethical

standards facilitate calculability and rationality. These traits are basic

ingredients of protestantism on the one hand, and capitalism on the other. This

promotes their sales, increasing their profits, while keeping labour costs low.

Capitalists accumulate capital. Thus capitalism flourishes by leaps and bounds.

Theologists have found a number of lacunae in Weber’s ideal type of Protestantism.

They have noted that Calvin had no intention of propping up capitalism with

Protestantism. As a matter of fact, he himself (though not his successors), was a

staunch opponent of capitalism. Capitalism was an unintended consequence of his

intended action.

The Weberian spirit of capitalism is different from the Marxist capitalism. Weber

made a distinction between ancient capitalism and modern capitalism. He kept the

modern capitalism based upon rational utilisation of capital in a continuous

enterprise and the rational organization of formally free labour, with a view to

earning profit apart from the irrational ancient capitalism with money-lending,

speculation, adventurism and ruthless acquisition. The same spirit of capitalism

permeates industrialists and businessmen, shopkeepers and craftsmen. On the other

hand, Marx says that the workmen lose surplus value, while the owners of capital

gain it. The protestants assert that all of them earn divine grace.

18.1 Feudal robber romanticism in India

Weber’s careful studies in social history put forward the view that capitalism

failed to prosper outside the occident, because of lack of rational ascetic this-

worldly religiosity. The religions in the orient teach passive other-worldliness.

His analysis of Hinduism and Budhism is based on the writings of indologists and

ethnologists of his time. Like Marx, Weber never visited India for primary empirical

verification himself. Taking their cues from these early analysts, some contemporary

strategists attribute the poverty of India to fatalism and contentedness of its

people. Some others, eager to get access to the markets for their own wares,

attribute it to protectionism and socialist secular non-aligned policies of the

government.

Coming back to Weber, in India the local culture remains closed due to self-

sufficiency and fear of pollution through contact and interaction with outsiders.

Mental horizons are narrow due to restrictions on far-reaching travel and trade. The

folk idiom holds sway. Every cultural region speaks its own language. They are

disinterested in how others think, feel and act. Consequently, lack of mutual

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dependability and cooperation between different social segments impedes broader

loyalties and concerted action.

The intellectuals fail to recognise realities and adapt what needs to be done. They

find escape in the extraordinary. Their mysterious silence conceals their

insecurity. They indulge in empty contemplation and verbosity, devoid of the

experience of life. Interested only in themselves, they lack compassion for their

fellow beings. Their basic orientation to life is to purge their conscience of the

happenings in the actually existing world. From their point of view, all appearances

are deceptive. Everything is an illusion, with the sole exception of the ultimate

reality. On account of their belief in the transmigration of soul, they suffer from

the fear of their repeated mortality, even more than the pain of their existence.

They get lost in their concern for their personal salvation by getting away from the

circle of repeated birth and death. Their minds are attached to other-worldly

contemplation, with empty forms and operations, devoid of content. They act in

callous disregard of the fruits of their action. It is no wonder then that they

cannot grapple with the real-life problems facing them and their environment.

The ignorant and the apathetic masses are left to fend for themselves. They suffer

from depressing dreams, passive resignation, and blind faith. They fail to apply

their minds. They tend to think with their ears. They credulously wait in vain for

some prophet or savior, who will intervene on their behalf. They hope against hope

that somebody will turn up one fine morning, listen to their tale of woes, take pity

on them, and redeem them from their miserable plight by dint of his supernatural

powers.

Political activities are pursued only by a few persons with limited vision. They are

not only irresponsible but also unscrupulous in the pursuit of their self-interest.

They ridicule ethical considerations. They patronise pliable clients to bring their

own chestnuts out of the fire. Crafty and wily intrigue permeates the atmosphere.

Thus, broader horizons, secular consciousness and a common national identity fail to

develop. The rational political will remains stunted. Feudal robber romanticism

prevails. This implies that the state cannot go very far. Bullying, snatching,

revenge, murder, fatten robber noblemen. Further development of output is not taken

care of.

Max Weber laid stress on the part played by other-worldly religiosity in life and

labour in India. Instead of aspiring to achieve Indians restrict their needs and

possessions. Thus capitalism remains underdeveloped.

E.g. 21: Jagga dacoit. His father was a robber nobleman of the British times in Punjab.

He became rich by frightening and forcibly snatching the movable and immovable

property of his victims. The police was able to nab him after a long chase. He was

convicted and sentenced to death. All his landholdings had to be sold for making

payments to lawyers and the legal paraphernalia. In order to make good the loss and

to gain more, Jagga became a dacoit himself. He waylayed pasersby, robbed

householders, grabbed movable and immovable property, and became even more wealthy ……………………………………………..

and powerful than his father. He won over the sympathy of his relatives and some

persons by giving generous gifts of coins and ornaments to them and coming to their

rescue at the time of their need. However, he could live only for 29 years, when he

was hanged to death.

In a liberal democratic state, there is separation of powers between legislature,

executive and judiciary. This principle is inviolable. Coordination and cooperation

apart, they have no business to interfere in one another’s field of jurisdiction. As

soon as a policeman sees a thief, he does not shoot him down there and then. He has

to be produced before a magistrate. The matter is clarified by a state prosecutor,

with objective evidence. The accused person is defended by a lawyer, with technical

points. He gets paid with fees for his service. The policeman, prosecutor,

magistrate, hangman, are different persons. Some guilty persons can get away. But

an innocent person cannot be punished. More than that, in India, the judicial

process is cumbersome, dilatory, erratic and expensive. Subjective kazi justice of

pre-British times, like direct action, could work quickly. However, in the long run,

effective legal procedures lead to rationalisation of social life.

18.2 Rationalisation of social life

Diderot’s Encyclopaedia (1751) termed rationality, or the sense of reason, as a

torch. It enlightens us. Authority is a staff. It helps us to grope our way out. We

lean upon it, if we are weak or tired. While nature provides the flame for the

torch, we make the staff ourselves. Rationality implies: Do not be carried away by

the past. Think before you leap. Do not get angry. Understand and explain how the

wind is blowing. Rational legal authority falls back upon formality and

accountability. A rational person looks dispassionately at the matter. He uses

proper means for the achievement of certain goals, after due consideration of the

pros and cons. Bureaucracy is the purest form of rational-legal authority. This is

technically superior to all other forms of organisation. It functions like a

machine, according to rules and regulations with precision and efficiency up to a

degree not common to all other forms of organization.

In a rational legal organisation control is exercised by dint of the same type

of power, authority and influence. Its rationality implies that the course of events

has been outlined and adequately planned. Its legality means that it falls back on

laws enacted by a duly constituted body after due consideration. The established

rules are recognised as well and proper, technically suitable, and in public

interest. The rules and regulations are not contradictory. These are applied to

everybody under similar circumstances in the same way, irrespective of caste and

creed. These are delivered by accredited agents. Those in authority, like

magistrates and managers, are office bearers. Their orders are complied with without

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delay. Laws may be enforced by way of willing cooperation of those subject to them,

in expectation of certain concessions, or fear of punishment.

18.3 Bureaucratic organisation

Let us make use of Max Weber’s approach to this concept here. In common

parlance, bureaucracy is synonymous with red-tape-ism and delay, incompetence and

corruption. Because of the pejorative connotation, few bureaucrats would like to

accept such a definition of the situation. This is not so even in terms of Weber’s

analysis. For him, bureaucracy is a human machine for continuously performing the

assigned duties. It has become indispensable in our times. It is more effective than

all other known forms of organization. The bureaucratic authority is exercised

through a mechanism consisting of officers and their supporting staff. They work

together in offices and factories. They plan, coordinate, supervise and exercise

control on the available men, machines and materials, with q view to realizing their

common goals. The bureaucratic machine stands all and sundry in a number of ways. It

functions in a smooth and stable manner with discipline, precision and reliability.

These also include its thoroughness standardization and universalism. By

coordinating the work of a well-trained team things can be got done quickly and with

much lesser input of energy and time. Such hallmarks increase its objectivity.

Bureaucracy is a human machine. The employees strive to realize their common

goals. The workforce stands on the trail of matter-of-fact rules. Various parts of

this apparatus are interchangeable. Thereby it promotes reasonable decisions. With a

change of those in authority at the top, or circumstances, such a mechanism can be

re-oriented for the purpose of attaining the same or different goals.

The modern liberal bureaucratic system is put to use in many spheres.

Government administration, political parties, private business firms, trade unions,

hospitals, banks, shrines, etc. make use of this for of organization. This makes the

task of those who control them easy. Despite their differences, bureaucratic

organizations possess some common features. These include the following.

Table 6: Characteristics of bureaucracy

Formality Established procedures

Continuity Uninterrupted

Spheres of competence Clear jurisdiction

Paper work Record keeping

Instruments of work Machines, tools, aids

Role segmentation Workplace and home are separated

Hierarchy Pecking order, chain of command

Selection Worth, not birth

……………………………………………..

Career Lifetime pensionable job

18.3.1 Formality

The spirit of bureaucratism is utilitarian and formal. Their rules and

regulations systematically spell out the details. The techno-economic knowledge,

facts on record, and occupational skill, promote exactness, intensity, replacement

and mass production. Proper procedures are laid down for who does what under which

circumstances. The interaction between various positions is duly panned, supervised,

approved and controlled. The bureaucrats are subject to technical norms,

accountability, stringent discipline, discipline, control as well as freedom. The

various tasks are allotted in a matter of fact manner.

Gaps and overlaps are removed. Trained employees carry out instructions from

above. Authority rests with the chair/ uniform, not with the individual office-

holders. Such impersonality implies that the officers are required to treat

everybody in the same manner. It is an aberration to assert ”Show me the man and I

will show you the rule.” Even discretion is nameless and faceless. The underlying

criteria have to be clearly specified in advance, and made transparent. Later

researchers have clearly brought out that unintended, unplanned, informal criteria

override the formal organizational structures. These cannot be overlooked. However,

in the Weberian sense, these are an alienable part of the art of bureaucratism.

18.3.2 Continuity

A bureaucracy is continuously organised. It is not an ad hoc body, which is

activated only during crisis situations. It provides for continuous division of

labour, specialization of functions, and allocation of tasks. There is systematic

allocation of resources for the fulfillment of duties and rights of the

functionaries. It continues even when the current work-load does not justify its

existence. Individual employees keep on coming and going. But the organization

endures as it is, as if for ever. It goes down only if the entire system supported

by it breaks down. A bureaucrat is a full time employee, even though his office

hours are fixed. He continues to be an employee even when he does not have enough

work to do, and even after office hours. They also serve who stand and wait. His

appointment is neither on part-time basis nor honorary. Normally, he is entitled to

leave and holidays. However, these can be denied to him in case of exigency of

service, i.e. pressing official need.

18.3.3 Spheres of competence

Everybody is not responsible for everything. Powers are vested in incumbents by

dint of duly constituted authority, in order to enable them to carry on the duties

assigned to them.

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The strategy for the attainment of the objectives is thoroughly worked out and

reduced to elementary task. These are allotted to various branches of the

organization.

A branch, a section, or a department, is a unit. Officers, inspectors, and

various types of workers therein are assigned definite spheres of competence. This

is done for the sake of performing specific functions within a clear cut system of

portioning and sharing of labour, without gaps and overlaps. An officer’s orders are

valid only within his limited jurisdictional boundaries. Excessive departmental

loyalties and disputes over who will do what are counterproductive. The authority to

issue commands is distributed in a stable manner. Technical means are provided for

regulating the conduct of the juniors. Resource is made available to them for

carrying out orders from above. An officer is not permitted to usurp somebody else’s

authority. He is responsible for what his office does or fails to do. Only the chief

can issue public statements. Others do so on his behalf only if authority for this

purpose has been delegated to him. Public servants are interested in earning a

living for themselves. They are supposed to be politically neutral. The gist of the

matter is that the jobs are split into tasks. These are performed by officers within

their limited spheres. This provides stability,

certainty and predictability. Every officer knows what is expected of him under

various circumstances.

18.3.4 Paper work

Officers are allotted rooms according to their ranks in the hierarchy, in

comfortable corners of their office. Influential officers ask for lucrative

postings, bigger and well-furnished rooms and other facilities, and they promptly

get the same. That is where t

he term bureaucacy comes from. The records contained in files are accessible only to

duly authorized persons. Before issuing orders, its pros and cons are thoroughly

thought out in consultation with various officers dealing with the matter. Nothing

goes without saying. The orders are put on record. Even when it becomes necessary to

pass verbal orders, these are confirmed later on, in writing. Such a system is a

paper boat. But the boat is stable. It keeps on floating. Records are safely

maintained for a specified amount of time (say, 10 or 30 years). Important papers

are then transferred to archives for longer preservation. These are often used for

research in history.

This form of organisation works like a clock. The financial experts exercise

austerity. They maximize gains and minimize wastage. Account-keeping is meticulous.

It is not to be trifled with. Income and expenditure are properly balanced. Expenses

are supported with receipts. Everything is accounted for. Instead of making the

reasons for the decisions open and above board, the bureaucrats sometimes conceal

their decisions and intentions from others. Business firms, military officers,

diplomats, cannot afford to reveal everything before their competitors and

adversaries, thereby jeopardizing their realization. This can also undermine the ……………………………………………..

authority of those occupying important positions therein. Classification and bunking

of more and more information becomes a means of suspense and mystery. Thereby those

who sit on files derive self-satisfaction by feeling that they are important. Those

who guard skeletons in the cupboard become powerful themselves , lest they should

spill the beans.

18.3.5 Instruments of work

In a capitalistic economy, workers have nothing to sell, except their labour.

In earlier days, the employees used to work with their hands and feet. In a

capitalistic economy, entrepreneurs invest money for buying machines and tools. So

the bureaucratic organizations own organizational aids. These are made available at

the place of work. The officers, clerks and operators do not bring along their own

tools to their place of work. They do not own the pens or typewriters with which

they write. The army officers do not own their weapons. The drivers are not

permitted to take home the official vehicles. They are supposed to practice role

segmentation.

18.3.6 Role segmentation

Individual members are only partially included in their work organisations.

Their officials and domestic roles are not to be mixed up. Every employee has to

restrict himself to his own work, in disregard of his personal likes and dislikes.

He cooperates with his colleagues, but refrains from meddling into the tasks

assigned to them.The line between the place of work and off-the-job activities is

clearly defined. Business premises, factory and office, are kept apart from the

private dwelling. Business capital and private wealth. Official imprest and personal

pocket money are kept and spent separately. The official resources (money, matters,

tools of trade) are not mixed up with the private ones. An officer is formally free.

The superordinates are not expected to poke their nose in the private affairs of

their subordinates. The latter are subject to control only in their official duties.

Even though officers in a liberal democracy are loyal to the chair, unlike the days

of the feudalistic order, they are not personal servants of their official

superiors. In other words, it is imperative that home is home, and office is office.

There is segmentary division of various aspects of life.

Table 7: Hierarchy of posts in forest Department

Chief conservator

Conservator

Assistant conservator

Ranger

Forester

Guard

18.3.7 Hierarchy

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The employees keep apart, but also depend upon one another. Those performing

various types of functions are arranged in the form of a pyramid. They are ranked

higher and lower with respect to each other. Those occupying the higher positions

are given executive powers for getting their orders obeyed by the rank and file.

Those below are required to get on well with those above in a disciplined manner,

i.e. with automatic precision. The subordinates are supposed to work diligently,

while their superordinates keep an eye on what they do or fail to accomplish. The

officers stand them in good stead. They stand by them with advice, guidance and due

support, whenever required. The line of command flows from top to the bottom

downwards, through proper channel, even when they want to speak to the higher

officers for redressing their own grievances against their bosses. The officers

enjoy social prestige with respect to those under them. Disrespect, insult, and

contempt of officers are punishable offices. Insubordination is not tolerated.

18.3.8 Selection

Bureaucrats possess the prescribed educational qualifications. Their degrees,

diplomas and certificates show that they have internalized certain work values and

job skills. They are selected on the basis of a competitive examination and/or

interview by a selection committee consisting of their senior officers. Their

competitive merit is taken into consideration for determining their suitability for

a job. They are neither nominated on the basis of the traditional status of their

families, nor elected on the basis of their own popularity. Even though justice is

to be tendered measure for measure with mercy, there is no compassion in appointment

in a rational legal organisation. After an initial period of probation, they are

confirmed in their jobs.

18.3.9 Career

Unlike USA, in India an officer’s appointment provides him with a life long career,

with pension after his retirement. He does not occupy his position by dint of his

convictions. He is an organisation man.

He is a mercenary. He is there for his pay and perks. This is a matter of bread and

butter for him. However, he is duty bound to express solidarity with his employers.

His superordinates can depend upon him. His office is his calling. This gives him a

life-long career, identity throughout his working life (and pension thereafter.) An

employee is loyal to the chair, his uniform, the idea behind these. He strives to

attain the impersonal material objectives of his organisation, in return for what

his organisation does for him.

However, he is not a personal servant of his employer. He does not own his job.

This is not his ancestral property. He is there by virtue of his own qualifications

and merit, what he can do. An incumbent is not allowed to grab, sell, mortgage or

misappropriate his office. He cannot be removed from service without providing him

adequate opportunity to show cause why action should not be taken against him for

dereliction of duty, or unnecessarily transferred away without rhyme and reason. ……………………………………………..

He is given a free hand. This is done to ensure that he can go on doing his work

duty without fear or arbitrary punishment. He is free to lead his own private life

as he likes it. However, he can be brought to book if it becomes known that he

possesses assets beyond known sources of his income. Gross contravention of his

style of living can lead to similar results.

Politics of extension in civil service after the due date of retirement is a

burning problem in India these days. A civil servant is not supposed to enhance his

income through moon-shining, by getting illegal gratification from his clients, or

by preparing the ground for additional income for himself after his retirement. He

continuously gets paid at fixed rates for his services, at regular intervals. Unlike

wages at piece rates, salary is fixed at time rates. It is paid in cash. This is

given to him for occupying a position. Whether there is enough work to do or not,

payment of salary cannot be withheld. For example, a data entry operator is not paid

after counting the number of pages printed out by him. Nor is a soldier paid for the

hours actually spent by him in the field or the number of enemy troops shot down by

him in combat. Salary goes up with rank in the hierarchy, seniority in service, old

age. Increments are paid at regular intervals. Promotions are given methodically,

according to seniority, age, merit, being in the good books of those who matter.

Unlike a businessman, an officer is not money minded. He seeks honour, prestige, in

comparison to the lower ranks. After attaining the age of superannuation, an officer

is retired from service, However, he is entitled to pension. Thus he enjoys social

security throughout his life.

Power is an important variable in social life in India. One who wants to

exercise power has to be more determined, well-connected, and more influential.

Relations (who you are) override tasks (what you can). Political interference in

bureaucratic affairs facilitates goal displacement, and stands in the way of

attaining organisational goals.

Table 8: Factors promoting bureaucratisation

1. Monetisation

2. Expansion of tasks

3. Capitalism

4. Democratisation

5. Rationalisation

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18.4 Dysfunctions of bureaucracy. Being a complicated machine, which takes

very long time, bureaucracy is often counter-productive. The actually existing

bureaucratic organisations are different from its ideal type. It is not ideal

in the sense of being desirable. Its size and efficiency make it unwieldy, hamper

its calculability and accountability, and make it irresponsive to the needs of

its individual members and the broader society. This is a technocratic model. It

is useful at the helm of affairs for controlling this apparatus for administering

colonies. However, those who work for a bureaucratic organisation are members of

a society. They have their social responsibilities as well. If organisation men

refuse to recognise this reality, this becomes an undemocratic model. It is

dangerous not only for parliamentary democracy but also for individual freedom.

Shrewd politicians often become credulous in encounters with technically

qualified bureaucrats. Overcentralisation stands in the way of federalism. The

state becomes powerful, but the chances of the individual to determine his fate

get diminished. Routinisation kills individual initiative, creativity and

innovativeness. Instead of applying his own mind, he is expected to follow the

rule book, and act according to precedents and estimated wishes of those above.

Once a person comes into power, he goes on sitting there. He uses his privileges,

prerogatives and connections to sticks to his position, and it becomes difficult

to remove him. This promotes overconcentration of authority in the hands of an

oligarch at the top. Its dysfunctional consequences include throwing spanners in

spokes and causing delays in order to refunction collective resources for private

use. This hinders diversity and thwarts survival in the long run. What is good

for an individual need not be socially useful, and vice versa. The main point is

that there are several irrational consequences of rational action.

18.5 Capitalism in India

Weber’s work on the spirit of capitalism is even better known than his analysis

of bureaucratism. Its essence is rationality. Calculability, accountability,

regularity, are characteristic features of capitalism. Unlike adventurists,

capitalists are known for honouring their commitments. Other scholars have

pointed out the importance of monetary transactions, profit maximisation through

free market mechanism for competitive performance, and thorough organisation for

the capitalistic pattern of society.

Some trading castes in different parts of India have traditionally

been shopkeepers in villages and small towns. They exercise restraint and

discipline themselves, and live with austerity, in order to save money to

celebrate their weddings with pomp and show, and building their houses. When they

see an opportunity, they cautiously take risk to invest their savings for making

windfall profits. Account books are kept up-to-date. In general, businessmen in

India tend to have a reputation for their turnarounds and playing all sorts of ……………………………………………..

tricks for deriving undue benefits. They tell lies, adulterate goods, give short

weight, and miscalculate knowingly. After Independence, some trading castes with

traditional skills, access to loans and political connections, have excelled in

entrepreneurial activity. Even the public sector has generated profits for the

private sector. Similarly, some agricultural and artisan castes have thrown up

mobile men. Scheduled castes and tribes have been left behind, above all due to

lack of knowledge as well as discrimination against them. After liberalisation in

1991, large business houses have benefitted from their political contacts and

approach up to the highest level, donations to political leaders in return for

patronage, and above all access to loans from financial institutions. Support

networks and interpersonal interaction in extended families and caste communities

have stood them in good stead.

Conflict of interests and refunctioning of collective resources for private use

in India are rooted in old customs and habits. Gifts, tributes, tips, in cash or

kind, are common. So is quid pro quo. In order to make matters move, go-getters

have to grease the palm of dealing persons. All news is paid news. Manipulated

media of mass communication bring out sensational news items, rather frequently.

It appears that everybody is complaining about everybody else being corrupt.

Nevertheless, it is incorrect that corruption is an inevitable consequence of the

process of development. Empirical studies have revealed that some countries have

developed without corruption, while some others have developed inspite of it.

Corruption has no role in either facilitating or retarding economic development.

These are symptoms of half-way rationality. Corruption and noise that everybody

else is dishonest, are symptomatic of irrationality.

19.0 Types of society - Durkheim

Emil Durkheim (1858-1917) classified the evolution of societies into three types:

those based on hordes, segmentary societies and organised societies.

Hordes of hunters and food gatherers are elementary units, in biological terms

protoplasm, of social life. They move from place to place in search of subsistence.

They lead a hand to mouth existence. They practice certain crafts of use to the

local population. Sometimes they annoy the settled inhabitants of that locality by

pilfering goods from their houses,

fields and shops. They perform menial jobs for powerful persons and places of

religious worship, who take pity on their misery, and protect them. Cohesion of

hordes is based on resemblance. Their parts are undifferentiated. There is no

superior or inferior in such independent structures. Formless, indistinguishable

kin, clans, bands, tribes, herd together. Hordes came together into clans and became

segments by dint of mergers. Their blood relationship is a matter of opinion. They

are known after an apical ancestor or a non-human totem. Collective responsibility,

collective punishment, some political power, and private property emerge in clans. A

horde contains a single segment. Segments were hordes once upon a time.

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A pre-industrial society is a segmentary society on the way to organisation. The

society is neither segmentary nor organised, but in between the two. There are

enclaves of organisation within vast tracts of feudal robber romanticism. Patriarchs

and adventurers mobilise their limited circles of loyal followers, with a view to

bringing their own chestnuts out of the fire and getting benefits, in the name of

anything that works for the time being. Politics is elite competition. The state is

despotic at the top, and soft, even unruly, at the bottom. In a bimodal state

without a large middle class, the level of production and the standards of living

remain low. The populistic state is controlled by a small oligarchy at the summit.

The masses down below are not organised for achieving collective goals.

Industrial revolution came first of all in England. It promoted industrialisation

and raised productivity. Production of new knowledge opened up the way for science

and technology in Europe. Political revolution came first of all in France. It

promoted political organisation and rationalisation of distribution of the available

goods to a substantial extent. Here we have tried to show what organisation is, how

it is done, and how globalisation is leading to further development in a greater

wider world.

In a developed society we cannot go far without inter- dependence of members in

teams. No man is an island. Everybody needs everybody else. A developed society

needs systematic organisation, just as a fish needs water. Systematic organisation

helps us to make use of the available technology. Thus people can work together

without friction. Lack of mutual trust slows down the speed of operations. An

complex organization is not an end in itself. It provides means for achieving

certain goals.

There can be gaps between the stated objectives and latent goals. Sometime the

former (our great cultural heritage) serve to cover up the latter (jobs for our

wards). Organisations are instruments as well as institutions. Employees work

together for the attainment of their collective goals in return for the achievement

of their individual goals : their own needs for keeping alive and supporting other

members of their family. They are expected to act according to rules and

regulations. Their colleagues and officers can depend upon them. Officers see to it

that everything is done in time and nothing remains undone. Entrepreneurs take the

risk of investing their money to earn more money for themselves. Visionary statesmen

provide them the opportunity to do so.

Industrial societies are complex. These are held together by division of labour. Their

different parts are inseparably integrated. Their members are unlike one another. ……………………………………………..

They are interdependent. They have to work together intensively in teams and give

larger output for competitive performance in a market with low margins of profit.

The necessity to give higher turnover makes them forget their turn arounds.

Authority is centralized without being despotic. Occupations are differentiated.

Jobs are occupied by well trained specialists. Work is well organized. The process

of production is broken up into interconnected parts. Such societies are unstable.

They fall down like an apple cart during a crisis situation.

Work is the key to organisation.

Table 9: Segmentary and organised societies

Mechanical solidarity Organic

solidarity

Primitive Modern

Resemblance

Differentiation

Fragmentary bonds Strong social

ties

Caste, lineage, tribe Pragmatic

partnership

Relationships

Professional ties

Collective conscience Individual

responsibility

Narrow loyalties Broader

horizons

Self-sufficiency

Interdependence

Amorphous power Regulated

authority

Fragmentation Coherence,

centralization

Autonomy

Coordination

Resemblance

Differentiation

Caring, love Give and

take, calculation

Isolation

Proximity

Chaos

Regulation

Traditional Modern

[Type text]

Low productivity High output

Incoherent Coherent

Status

Functioning, contract

Slow communication Speedy

communication

Simple Complex

Retributive justice Restitutive

justice

Societies gradually evolve from simplicity to complexity. Modern societies cannot

function without complex organisation based on coordinated splitting and allotment

of a piece of work to members of a team. Thereby the size and density of population

increases. Interdependent individuals communicate and travel with accelerated speed.

They come into contact, intensively interact with one another and build up relations

with one another. Continuous division of labour binds several individuals together.

They divide a piece of work into tasks. Besides raising output of the organization

it enables the individual members thereof to fulfill their own needs. It is their

needs that keep them together. Correct behavior of a person encourages others to

respond likewise. Relations do not arise automatically. These are carefully

cultivated, in mutual interest.

E.g. 22: Nurse-patient relationship. A newly recruited, beautiful, well groomed young

nurse dutifully performed her role in a hospital for the elites. She gladly served

her patients with a sun-shine smile. The well-mannered nurse took good care of her

patients according to rules and regulations of the situation. In one particular

case, a handsome young patient coming of a well-to-do landholding and factory

owning political family, and belonging to a higher caste, fell in love with her. In

the beginning, she spurned his advances. After some reluctance, she over-stepped the

limits of her role. In disregard of the status inconsistency, she started treating

him as a special person. He got well soon, but did not want to go back home without

taking her along. He took on a sick role. His mother tried to convince him that she

came of the lower-middle class and belonged to a different caste. She did not fit

into their way of life. She has not learnt to play a role in their type of family

well. She would be a misfit there. This is just an infatuation, and soon both of

them would get over it. In our society, marriage is not a relationship between two

individuals, but between two families. This would create a lot of problems later on.

What will the relatives say? His father told him that this girl would not take him

very far. He would have to live with her in a shack for ever afterwards. The father

kicked his son off for a cooling down period. He sent him abroad for a stint in a

foreign university. The young man failed to rebel and give up everything for the

sake of love alone. After sulking for some time, the girl realized painfully that

……………………………………………..

relations are relations, while professions are professions. Passage of time applied

a healing touch to her injured psyche.

19.1 Division of labour

How is labour divided? All the components of a piece of work are standardized and

made interchangeable. High speed of operations produces a mass of goods, with low

pro rata costs. Competition in a free market raises saleability and profitability.

Interdependence keeps the workers together. If one part fails to get fitted with

others, the machine stops working. In order to cooperate with one another, workers

have to build harmonious relationships of mutual trust and confidence. Reliability

is not one-way traffic. It is reciprocal. This makes their actions and reactions

compatible. The need to work intensively together to optimize productivity for

competitive performance with reasonable profit margins makes them forget their

differences, keep together, and work intensively. In this way, division of labour

promotes social solidarity.

A multiplicity of individuals divides the given piece of work into smaller simple

pieces. They work in a team, with a sense of togetherness. This helps them in making

a lot of goods in a small amount of time. It costs more to make a large bulk of each

item separately piece by piece. That raises the cost of production and impedes

competitive performance in the market. First of all, standardization is done. Thus

different pieces become interchangeable. Higher output gives each of them a larger

share in the earnings. Their needs (wants, gains, benefits) attach them all together

and increase their solidarity.

E.g. 23. Wooden furniture. Full-grown trees are systematically selected, felled down,

and the wood is seasoned. These are cut down into logs and sleepers, and transported

to factories. There these are used to manufacture boards of standard sizes, and

suitable components according to some creative and innovative project design.

Logistics (planning, management, finances) are worked out. The complementary parts

are manufactured in such a way that they make up a whole. These are supplied to

wholesale stores, for onward sale to retail shops. Customers take them home. These

are fitted in together and assembled into chairs, tables, and kitchen cabinets etc.

and joined with adhesives and nails. It is less expensive to make a large number of

items together than to make them one by one. Machine tools, specialised training,

centralised coordination, and concerted action facilitate various operations in this

project. Solidarity raises productivity, improving competitive performance.

19.2 Division versus diversification

Table 10: Diversification versus division of labour

Diversification Division of labour

[Type text]

Absence of centralisation Centralised authorityPowerful individuals, can do Centralised coordination, have to doAmorphous CohesiveEverybody does everything Occupational specialisationCross-cultural cooperation Cooperation built into a system Discontinuity ContinuityMechanical solidarity Organic solidarity

19.3 Diversification

Diversification promotes coexistence and survival. The term is used in more than one

sense. A trade union becomes a voluntary association for promoting national

integration. Farmers shift over from wheat-rice rotation to dairy farming or

cultivation of flowers, fruits, oil seeds, pulses, vegetables, or for that matter,

or whatever can be profitably sold in the market.

Diversification is short of division of labour. In the former case, the same persons

may switch over to perform diverse functions. In the latter case, well-trained

specialists jointly perform limited activities within a well-knit framework. Their

interdependence promotes unprompted cooperation for pragmatic exchange, greater

solidarity and higher productivity. Sometimes islands with adequate organisation,

are built into a vast ocean on a broad tract of the earth.

E.g. 24: Guru ka langar : Nothing is free of charge. The institution of guru ka langar is

an exception to the general rule. All pilgrims to large gurdwaras are provided free

meals. Before they go in to pay their obeisance to the holy book, they are enjoined

to sit together in rows, in disregard of caste and creed, and share their meals from

the common kitchen. The raw provisions and cash for buying the ingredients are

voluntarily donated by the devotees. Food for serving meals is prepared by

volunteers, especially women, with the assistance of voluntary cooks. Various

activities are spontaneously carried out by the participants. Whenever they feel

likeit, they spare some time and fit themselves in and fill in the available gaps.

They do their work and help one another with advice and guidance to improve the

quality and quantity of output. The process is not carried on from one stage to

another by a single individual. Dynamic teams work with speed and efficiency so that

warm food may be served to devotees at an optimum pace. The process of production

and distribution is divided into the following inter-connected stages. On completion

all these tasks represent a job.

Table 1: Guru ka langar……………………………………………..

1. Kneading wheat flour

2. Heating up a large iron plate

3. Cooking pulses etc. in a cauldron

4. Portioning out the kneaded flour

5. Making round balls of flour

6. Covering the balls with dry flour powder

7. Flattening the balls

8. Baking the pieces of bread on the iron plate

9. Turning around, to bake the other side well

10.Removing finished goods from the iron plate

11.Keeping them aside

12.Keeping in a basket

13.Distributing flat bread, lentils, vegetables, etc. to consumers

It seems to be a miracle that the system is not centralised, there is no chief, but

the operations are being coordinated in a concerted manner. The volunteers are able

to achieve large output with speed and efficiency. The process goes on more or less

like a flowing river or an assembly line, as if automatically. The various

operations are carried on without any specialised training or instructions,

according to traditions. A synergetic team for concerted action forms itself for

carrying on these operations spontaneously. When a piece of work is broken up into

portions, which move from one worker to another, unnecessary movements are avoided.

At prime time, the work has to be done with enormous speed and a high degree of

efficiency. On peak days (full moon night, no moon night, and holidays) and prime

time when the number of pilgrims is large, the speed and efficiency of operations

increases manifold. A large mass of visitors to the shrine can be served

expeditiously.

Participants put on untiring effort so that the meals may be served warm without

interruption. There is a continuous flow of volunteers. Some join in, some drop out,

at their own free will. They serve in the hope and belief that their acts of

omission and commission will be washed off. The speed and efficiency of operations

can be attributed to the values ingrained by religiosity. Individual efforts are

only limited. But the total output is large. In the absence of inclination to do

what they should do, spontaneous cooperation would not have taken place, and the null

tariff shop for food would have closed down.

Again, it is a taboo to go into the shrine with shoes and socks on. Like the

baggage, these are removed and safely stored in racks near the point of entry,

against a numbered ticket, free of charge. Then the devotees wash their hands and

feet and go in. The shoes are retrieved on coming back after paying obeisance in the

temple. In the meantime, these have already been cleaned and polished by a human

[Type text]

chain of voluntary servicemen. This task is also free of charge, and is accomplished

with speed and efficiency, as if on an assembly line.

The flow of devotees in the temple is regulated with binding norms as well as

servicemen posted at vantage points to show the way. Over the course of time, other

changes are also being introduced. After initial resistance, electric lights,

gadgets for cleaning the floors, reducing pollution in the air, improvisation for

dispensing drinking water in the langar, have also been adopted. Some devotees from

abroad have donated equipment for automatic bakeries, and for keeping water in the

tanks around the shrine clean. The managing committee has installed electronic

equipment for simultaneous machine translation. The matter is displayed on large

boards within the temple as well as telecast all over the world for the benefit of

devotees living abroad. Such improvisations also serve as demonstration effects for

modernisation of traditions and adoption of all types of innovations in various

fields of life.

There is no doubt about it that the shrine is a centre of excellence for the

spread of enlightenment all around. There are periodical elections to the managing

committee of the shrine. Proper budgeting, audit and accounting, have brought in

substantial amounts of donations from the devotees. All this has enabled the

committee to go on improving its working. It exercises influence on devotees all

over the world. From time to time, status competition, elite interlocking, power

struggles, etc. bring the shrine in contact with the local, regional and national

political structures. Guru ka langar is an enclave of organisation within a

segmentary society.

The story does not end there. The matter has deeper and wider repercussions. The

magnitude and intensity of religiosity and religious organisation have to be seen

and felt to be believed. Some religious persons start as volunteers, and take up

regular employment here. This temple and its subsidiary and ancilliary formations

served as training grounds for sharpening their skills. They make use of their

connections and the organisational skills acquired here to become active in

political parties and other democratic institutions. Some big names in the state and

national politics have come this way. It has served as a school for political

participation. Religiosity has promoted political participation, political

organisation and rationalisation of social life.

Table 12: Pros and cons of globalisation

1. Free market 1. Reduced political freedom

2. Higher production 2. Gap between rich and poor

3. Employment generation 3. Job security declines

……………………………………………..

4. Competitive performance improves

quality

4. Competition from abroad reduces

margins of profit

5. Synergetic work culture 5. Exploitation of workers

6. Transparency 6. Privacy jeopardized

20.0 Globalisation

Globalisation means organisation of the whole world. Political, economic and

social structures all over the world get interrelated. Borders and nationalities

become less important. Everybody becomes a citizen of the world. Protected markets

are freed for all. Thus everybody can buy cheap and sell dear anywhere and

everywhere. Everything is available in the open market at going market rates. Global

competition makes it necessary to improve performance of multinational corporations

by adopting improved technological innovations, restructuring and cutting down the

number of employees. Rationalisation is not always without tears. It puts new

constraints on the hitherto existing structures, communities and orders. Economic

growth and political change create cultural shocks. The nature of social relations

gets altered. Cross-cultural contacts change the cognitive structures, and integrate

them in the broader total world. Boundaries shift while loyalties are contested.

Neither money nor market is the essence of globalisation. Rational organisation is

prior to both of them.

Globalisation facilitates exchange of goods, services and personnel far and wide.

This has been made possible by dint of improvement in facilities for transportation

and travel (rails, trucks, cars, aeroplanes, ships), exchange of information

(wireless, telephone, internet). Globalisation is an opportunity for some, a risk

for others. Those who shift over to advanced technology get systematically organized

and perform efficiently are benefitted. Those who do not keep on adjusting with the

changing situation are left behind. Big fish eat small fish and small fish eat

shrimps. The rich become richer and the poor become poorer.

E.g. 25 : Remote villages like Torkham near Jalalabad in Afghanistan get aligned with

political networks in Delhi. They cultivate commercial linkages with high risk high

profit international narcotics trade through drug-carriers, runners, wholesalers and

peddlers. Villages in Punjab start exchanging goods, services and brides with UK and

Canada. A rebuff in a small town in Maharashtra calls forth a manifestation in Paris

the very next day. Globalisation speeds up social mobility, social change and

acculturation of wealth ad culture.

[Type text]

Restrictive organisation in some nooks and corners of the world leads to

selective enrichment, pervasive impoverishment and disparities, in the territorial

as well as the social sense of the term. The cost of maintaining law and order, and

keeping peace, goes up. Organisation of the entire world, that is the task before

globalisation.

Globalisation brings in concentration of wealth and authority in the hands of

multinational corporations, and those at the helm of affairs. What next? It is the

end of history, some scholars say. Some others assert that it prepares the way for

the rise of socialism. Multinational corporations grow in scale and scope.

Organisational interlocking fills in the gap between centres of excellence and

underdeveloped corners of the world.

20.1 Capitalism

Let us try to understand this term by distinguishing it from what it is not.

Capitalism is different from feudalism, where there is rule of the ruler instead of

rule of law. Arbitrary will overrides essential technicalities. Ownership and

control of landholdings is the primary source of wealth in a feudal society.

Legitimacy of a king at the top of a centralised state is founded on the use of

power, backed by belief in supernatural authority. The king gets a lion’s share

of the lands conquered by him and owned by his forefathers. Considerable parts

thereof are granted to the noblemen who stand by him, in lieu of their military

service, above all in hard times. Noblemen allocate portions thereof to their

supporting lords, in return for their acts of gallantry. Such aristocrats at

the top are often bound together by kinship ties. They are often involved

internecine feud, give away a lot of their wealth for pomp and show for status

competition, and spend a lot of time on intrigues. The lords parcel out space

for living and cultivation to their tenants. Tenants bear the brunt of royal

expenditure of the royalty. All those above stand on the shoulders of their

tenants and depend upon the latter for loyalty. Breach of trust is severely

punished. The former expect loyalty in return for protection from predators as

well as a share of the harvested crop for their subsistence in exchange for

their toil. His rewards are meager. All of them are arranged in a rigid

hierarchy of hereditary obligations and privileges. Output is a gamble with

weather. Timely rains are the biggest donor. A large part the output is taken

away by the landlords, his paraphernalia, and money-lenders. Productivity is

low, because those involved in the process of production have no say in

decision making and are not in a position to adopt innovations. Except in

wartime a feudal state hardly ever provides facilities (irrigation, tools,

seeds, fertilizers, insecticides, marketing, etc.) for growing more food. ……………………………………………..

Tenants are marked by illiteracy, ignorance, poverty, fatalism and apathy.

Noblemen and landlords maintain law and order. Besides earnings from their

landed property and other privileges, they are entitled to honour and prestige.

Aristocrats sit in cushioned chair, while their servants stand before them with

folded hands, or sit down on mats on the ground. Employees are often

underpaid, overworked and treated with snobbery and disdain. All the actors in

this hierarchy are bound together by inherited relations of customary

entitlements. They are arranged in a hierarchy based on commensal, connubial

and other restrictions. Those below are expected to pay tribute in cash or kind

and show respect to those above, in order to let them do something. In India,

smaller and bigger feudal lords collect revenues and have civil and judicial

powers. Often the peasants are under debt. They are made to work without due

compensation. They cannot get married to a person of their own choice. Their

poultry birds, goats, foodgrains and women are forcibly taken away by

musclemen. The peasants suffer from ignorance, illiteracy and abject poverty.

Nobility lives in lavish luxury. Lords live extravagantly well. Peasants are

thrifty. Nomads wear old tattered clothes. Often they have to beg for mercy

and food.

Feudalism was abolished in India after Independence, at least on paper. It persists

in a part of Pakistan even now. In any case, the term feudalism is used in

different senses, according to place and time. After crossing certain level,

feudalism is unable to come up to the expectations and higher aspirations of the

exploding population.

Capitalism can be defined in terms of the means of production, distribution and

exchange being owned by private individuals. It is accompanied by a democratic style

of living and least interference by a rational legal state. The authority of the

state is based on the voice of the people, expressed through elections at periodical

intervals, and appeal to reason. There is freedom of enterprise. Flexible and

achievement-oriented individuals innovate, dare to invest their money in order to

earn more money and spend it. They maximize their profits by buying cheap and

selling dear. After crossing a particular level of accumulation of wealth, the

capitalistic pattern of society stands in the way of middle-classisation and

circulation of money for generating more money. The rich get richer and the poor get

poorer. Rural-urban differences widen. Bulls and bears in the market create

slumps. There is much more in globalization than is known to those who matter.

Dissatisfaction of feudal hurdles in the way of rise of capitalism in Europe led to

outmigration from Europe and settlement of countries like the United States of

America. Now the latter are interested in spreading their style of life all over

the world.

Society in India is neither feudal nor capitalistic, but in between the two.

Efforts by the British-Indian government to introduce some elements of capitalism

[Type text]

drew flak, both in their colony and back home. Feudalism is dead. Long live

feudalism. That is the state of society and culture at present.

E.g. 26: Donald Falshaw was the last ICS officer of British origin in Punjab. He was

known for his tactful handling, straightforward fair dealings and no-nonsense

support to the rule of law. This was a matter of honour for him. He was given high

pay and perks for his services. He lived with pomp and show in a spacious bungalow

in royal style in the state capital. Twelve servants ( liveried doorman, peons,

driver, cooks, sweepers, duster, gardeners, coolies. policemen as gatekeepers) were

at his beck and call. All of them were government servants. They also served who

stood and waited for him. Whenever he said ‘do this’, it was performed.

However, what is good for a cow need not be so for a calf.

Devyani Khobargade was a senior IFS diplomat in USA. She came of an upwardly mobile

and politically well-connected family. She was a pampered child, and always got what

she wanted. She possessed high status as well as preferential treatment, and

received a good salary, according to Indian standards. She lived in a modest flat in

New York. One day when on the way to drop here daughter at school, she was arrested

by the local police for ‘practicing slavery in USA’. She was charged with filing a

false affidavit for getting a visa for her maid servant, as well as giving

underpayment and getting overwork from her. A powerful trade union federation and

NGOs had protested against such conduct. Some pressure groups in India came to her

rescue and defended her citing her diplomatic immunity. This excuse was rejected by

the hosts. A feudalistic mindset in a capitalistic society is on the horns of a

dilemma to understand that rules are applicable to everybody in the same way.

Technically, ‘they’ are right. The go getter was indicted for visa fraud, and then

granted post facto diplomatic immunity.

Divergent reactions to these two instances of different ways of thinking, feeling

and acting can be attributed to a clash between remnants of feudalism and emerging

capitalism. Devyani won. Her maid lost. US ambassador had to quit India.

India is not well organised for the production of industrial goods. There are many

too many commercial establishments. The bazaars are congested with small shops,

stores as well as hawkers squatting on footpaths and carts wandering around on

pavements. Most of them have nothing to do except to kill flies all day long. There

are more spectators than customers. Their capacity to pay is low. Small scale sector

is functioning as a shock absorber against joblessness. Under the circumstances,

introduction of foreign direct investment in retail trade has increased competition

with supermarkets and malls. This has brought down the bargaining capacity of small

time traders. Exploding knowledge, changing technology, pressures for competitive

performance, new organizational forms, give rise to social and psychological stress

and strain for adjustment to the emerging realities. Chronically unemployed and

otherwise deprived young men voraciously look around for grabbing all the good ……………………………………………..

things of life, which are either illegal or illegitimate or too expensive for them.

Big fish eat small fish. Individuals have to bear the brunt by constantly adjusting

and readjusting and becoming competitive under the changing circumstances. Easier

said than done.

Table 13 : Feudalism and Capitalism

Feudalism Capitalism

Land ownership Business and industry

Feudal estates Commercial undertakings

Occasional gifts, tributes Fixed salary at regular intervals

Rule of the ruler Rule of law

Hierarchy Equality of opportunities

Closed society Open society

Status Contract

Community Society

Mind-boggling intrigues Disentangled smooth sailing

Corruption Calculation, calculability

Hectic activities now and then Even and steady

E.g. 27: Small retailer. In villages and street corners India customers find it

convenient to purchase goods from small shopkeepers. Their investments and margins

are low. Their services are personalized. They willingly sell in small quantities

and do not always insist on cash down payments. On the other hand, proliferating

supermarkets owned by large multi-national corporations have the advantage of size.

They can get huge loans from banks on convenient terms. They employ fewer people per

product and per turnover. Their pro rata costs are lower. Their returns tend to be

large. Under the changing circumstances, proliferating supermarkets are

outcompeting small commercial establishments. Their operators wait all day long,

busy doing nothing except killing flies. In a particular case, a father has four

sons. The property in his joint family is partitioned soon after his death. The

eldest son gets the shop. He faces stiff competition from others in the market. The

sales are not large enough to make both ends meet. He has to live in a rented shack.

He has three daughters. They are taken out of school. He starts looking out for a

suitable match for his eldest daughter. The purchasing capacity of those wandering

around in the bazaars, busy doing nothing, is low. He buys in small quantities and

cannot sell cheap, because he has to purchase dear. He works hard to raise his

sales, but in vain. His margins are low. In short, like the proverbial camel, the

proliferating supermarkets have driver small shopkeepers out of the small stores.

Selling the shop and becoming a hawker will adversely affect the marriage-ability of

his daughters. He fails to cope with the stress and get adjusted. He starts

suffering from depression.

[Type text]

Low investments. Inflationary trends. Interest rates higher than return on

investments. Benefits of the capitalistic model of growth will take a long time

trickling down. Pressure of domestic expenses makes small traders cross their

limits and resort to telling lies, giving short weight, adulterating goods, and

evading taxes. They lead sedentary lives. They suffer from a number of diseases

and disabilities.

Cost of living has gone up. Incomes have shrunk. Moreover, even education and

health facilities have also been commercialised. It can be predicted with a

reasonable degree of confidence that soon even professionals in India will not be

able to get their children educated in expensive institutions, pay for their

weddings, or build houses for themselves.

20.2 International division of labour

Globalisation replaces protectionism with open markets. Merchants buy cheap and

sell dear wherever they can whenever they can. They go far and wide to invest

wherever there is conducive atmosphere for its use to earn profits. Workers move in

wherever there are lucrative jobs. Goods are carried for sale to places where there

are consumers with purchasing capacity.

Impact of foreign direct investment in retail trade is already visible.

Superstores, headed by highly qualified managers, make use of computers for storage

and retrieval in warehouses, workflow, customer relations, human relations,

operations research, and son on. They do not, however, desist from playing tricks

to maximise their profits. They do go back on their words, putting forward lame

excuses: ‘Your potatoes are too sweet’. ‘Your tomatoes are sour’. Those farmers who

sell goods to them are compelled to use avoidably larger doses of fertilizers or

tractors manufactured by their Company, spoiling the fertility of their fields.

20.3 Ancilliarisation and outsourcing

Ancilliary units provide support to the main firm by subcontracting some

functions. Such units save on expenses. Small attachments work on low margins of

profit. They pay less in terms of wages and other benefits to their workers. The

latter are overworked. Their overhead expenses are lower. They get tax concessions.

They save with devious financial transations through banks in various parts of the

world. They resort to the use of underinvoicing and overinvoicing when it suits

their convenience. They become competitive in the market by dint of their

flexibility and dynamism. Ancilliarisation facilitates transfer of technology and

skills. It also rings up many cultural alarm bells.

E.g. 28: Ancilliarisation in India. A large public sector factory encourages its retiring

officers to become entrepreneurs. They are helped to get plots for their small

scale units in estates adjoining the mother factory at affordable prices. The ……………………………………………..

mother unit stands as a guarantor for bank loans for the seed money, buying

machinery, raw materials, and contingent expenditure. The main factory buys back

the goods produced by them (e.g. sheet metal covers, capacitors) and allows them to

sell the surplus in the open market. Their officers stand by them with advice and

guidance at all stages. While their mother unit encourages them to become

entrepreneurs, in return it gets assured goods and services at reasonable rates in

time. They earn more from sales than manufacture. Ancilliarisation also gives hopes

to their young employees that their interests will be taken care of in their old

age.

Globalisation promotes international division of labour. Imbalances get adjusted.

Many young men and women in under-developed countries get jobs. Their functional

equivalents in developed countries get retrained for higher level jobs , move

elsewhere or have to work for lower wages. When their future is uncertain, or when

they have a standard of living worth protecting, employees procreate fewer

children. Availability of a workforce of unemployed and under-employed workers,

and the rising proportion of old men and women, improves the bargaining capacity of

the employers.

E.g. 29: Socio-economic zones/regions (SEZs) intensify competition and integrate markets

in different parts of the world, especially through out-sourcing and

ancilliarisation. This provides abundant supply of low-wage labour for routine

jobs, at a fraction of the cost in the already developed countries. However,

resources become concentrated with multi-national corporations. Unorganised masses

get further impoverished. This widens disparities between the centre and the

periphery, creates tensions, promotes conflicts, and stands in the way of

systematic organisation. International specialisation and distribution has divided

work between different parts of the world. Banks and computer centres in USA have

take over marketing and finance. Goods are manufactured by their ancilliary units

in SEZs in countries like China and Korea. Furthermore, multinational corporations

in SEZs in China pay relatively higher wages to their employees, as compared to

other employers in their country. After meeting their day-to-day expenses, the

employees invest in buying household goods and invest in real estate. They go on

working harder and harder to pay back with installments on their loans on vehicles,

home loans, household goods, etc. GDP of the country and profits of MNCs go up.

Work becomes intensive and unbearable for the employees. However, they are left

with no time for satisfying their higher level needs. But they get so much

accustomed to a higher standard of living and consumerism that they cannot afford

to go back to their old jobs and places of living. Quality of life of the workers

goes down. Their health deteriorates. Growth is not followed up with sustainable

development. They suffer from stress, depression and alienation.

Social, psychological and ecological costs of adoption of technological innovations

and reorganization have to be properly foreseen, and balanced against each other.

[Type text]

21.0 Development, change, progress, growth, are partially inclusive terms.

Change means alteration from one state to another. Progress means change in a

desired direction. However, wants and preferences differ from person to person.

Change is a process, while transformation is culmination thereof. Growth involves

quantitative rise in chances to nurture and flower. Development means sustainable

enhancement, expansion, with rise in the standard of living and quality of life.

Equality of opportunity for acquiring education, getting jobs and earning income up

to the highest level are included in it. So are enjoying good health (nutritious

food, social and mental well-being, higher life expectancy, lower infant mortality),

sustainable environment (safe drinking water, clean air) freedom from oppression,

and empowerment for participation in decision-making. Inclusion of excluded sections

of society is part thereof. Growth creates wealth, while development removes

poverty through distributive justice. Several theories have been put forward to

explain the dual concept of development and underdevelopment. These theories

highlight various aspects of the phenomenon under consideration. For instance,

stages of development, colonialism and imperialism, dependence, modernisation,

cumulative circle of causes and consequences, satisfaction of basic needs, limits to

growth, and so on and so forth. Development provides means for improving the future.

Growth is an aspect of development. Capital investment by itself is not enough to

remove poverty. Development is a multidimensional concept with economic, social,

psychological, educational, and environmental and various other dimensions. Apart

from rational action, job skills, morality, work-values etc. are required to keep up

and go ahead. In addition to land, labour and capital, knowledge has come out as the

fourth, and currently the most important, factor of production. Recognition of the

need for development is the first step towards sustainable development. As a matter

of fact, growth and development are not mutually exclusive. These are partially

inclusive concepts. This is not a matter of clear cut either…or dichotomy but to

what extent his way or that.

Table 14; Growth and development

Growth Development

Sustainable Inclusive

……………………………………………..

21.1 Growth and development

There was a diversity of visions and directions for the economy. Big businessmen

and industrialists made considerable profits for supplying goods for war effort up

to 1945. Towards the end they started preparing for gaining through postwar

reconstruction. They guessed that political parties are going to come into power

after the war. But they did not want to be seen as stooges of the British empire.

They also wanted to improve their public image of being robber noblemen. A group 8,

lead by JRD data made Bombay Plan in 1944. It put forward a proposal for an

investment plan by Indian industrialists and businessmen in economic and social

infrastructure. These include financial and educational institutions, land reforms,

as well as agricultural research and extension as well as small scale irrigation. It

turned down the role of British collaboration and foreign direct investments.

However they were not able to mobilise the required resources to carry on their

plan, among others because of their reputation for turn arounds in business

dealings. The intentional pattern of Bombay plan was similar to the first three

five-year plans of the government of later . The direction of the proposed reforms

was movement away from feudalism to capitalism.

After departure of the colonial power in 1947, intellectual opinion in the

country was in favour of the starving multitudes getting the maximum benefit of

[Type text]

freedom. Create conditions for everybody getting three square meals a day (dal-roti),

two pairs of clothes (one to wear and one to wash) and a simple shelter over the

head. Aspirations of the general population were humble. Send the children to

school. Let them come out to become school teachers, patwaris and clerks in

government offices. Climate of opinion was in favour of self reliance and rural

development through encouragement of mass employment through indigenous handloom,

handicrafts and other village industries. This would make the country self-reliant,

curb inflationary tendencies, and provide modest jobs for unemployed and

underemployed persons, above all in rural areas. It was felt that mass consumption

would promote resources and generate surplus for economic growth. New employment

opportunities were generated by encouraging traditional craftsmen and shopkeepers

to upgrade their skills , and become higher level entrepreneurs. E.g. traditional

money lenders were given licences to ply buses on various routes. and liquor vends.

In the 1990s the climate of opinion started cautiously welcoming foreign direct

investment (FDI). FDI pulls investments from abroad, thus exploding the economy,

encouraging growth and development.

Even during the 1940s, ’grow more food’ program of the erstwhile government made

considerable efforts to raise production. In the 1950s, several canals were built

for irrigation. Since 1960s, concerted efforts have been made to raise agricultural

productivity by adopting agricultural innovations, chemical and mechanical inputs,

diversification, improved marketing, and so on on.

Nehruvian approach to centralised planning proceeds in the name of a socialistic

pattern of society. There you are with a hierarchy of government agencies. There are

some large capital intensive public sector undertakings at commanding heights of the

economy. They create basic resources for setting up lower level units. On the whole,

it is a mixed economy with some units in the public sector and many others in the

private sector. P.C. Mahalanobis from Calcutta was appointed as the big baboo of the

planning commission. Over the years, there has been uneven development in various

social and territorial units. Some have benefitted more than others. However, by and

large, apart from a few individuals here and there, even the developing sections of

society have remained underdeveloped. Nehru-Mahalanobis tradition is being carried

forward by left liberal scholar Amartya Sen.

He is keenly interested in the welfare of the underprivileged masses, and is in

favour of development of human capabilities by way of provision of facilities for

feeding, clothing and housing, clean drinking water, sewerage and electricity, and

medical care for one and all. Amartya Sen argues that enlightenment promotes growth

by way of cultural freedom and scientific advancement. Innovative and creative

entrepreneurs focus their attention on creating wealth. Their efforts to achieve

this goal become in a suitable setting. Unless there is growth, there will be no

development. However, wealth does not trickle down automatically. Sen emphasizes

that it is development that brings the multitudes out of the circle of their ……………………………………………..

ignorance, illiteracy and poverty. Appropriate education and job opportunities

provide income for them to purchase the things without which they cannot carry on

their existential needs. The importance of improvement in the quality of life,

gender equality, healthcare, clean drinking water, breathable air, and sanitation

facilities, cannot be underemphasized. The state helps individuals to help

themselves.

Later on, the pre-Nehru Bania approach for economic growth was extended by right

liberal scholar Jagdish Bhagwati. Unlike Sen, he gives primacy to growth over

redistribution. We have to generate resources before thinking of spending them for

development. To get growth going, we have to invest on infrastructure (railways,

roads, shipping, transmission lines, etc.). Bhagwati is not only a protagonist of

moving over to a higher level of technological inputs, but also democratisation of

business with social responsibility. Free entrepreneurs promote economic growth.

Motivated entrepreneurs work hard to become innovative and creative with a view to

generating wealth for themselves. Their efforts become fruitful in an enabling

environment. It is freedom of enterprise that promotes economic growth. They

push hard to become innovative and creative with a view to generating wealth for

themselves. Other scholars have pointed out that growth at any price benefits the

corporate sector at the cost of loss to the environment, the general population and

even the total economy. It gives rise to social disparities, creating tensions and

conflicts.

Stiglitz came to the conclusion that inequality stands in the way of economic

growth. Wide disparities cripple an economy. Even those who have accumulated a lot

of wealth have to bear the consequences of unequal development. When the rich go on

becoming richer, the middle class shrinks, and the poor go on becoming poorer, a

society remains neither stable nor sustainable. It can not function in a well and

proper manner. In that case, humpty dumpty has a great fall. Middle classisation

is the way out. Live and let live. A clever financial consultant advises his clients

to rotate the available savings and let their money work to make more money.

At present, only one-eighth of the population in India can afford to buy the

consumer goods imported from abroad. This is quite a lot, given the advantage of

size. On the other hand, a half to a third of the population is below the official

poverty line. They have been cruelly written off by the planning commission.

Benefits of growth have hardly trickled down for their development. Cost of living

is going u and up. Extrapolating the ongoing trends, it can be easily predicted that

in the next generation, even doctors and engineers will not be able to maintain

their current styles of living, get their wards educated in institutes of higher

education, pay the amount spent on their medicare, shell out the expenses on

weddings and other ceremonies, build their own houses to live in, or pay alimony to

their wives (if they choose to get divorced). Rate of bank interest being higher

than returns on investments, exclusive growth will fail to promote all round

development.

[Type text]

E.g. 30: Perception is functionally selective. Some western scholars honestly believe that

poverty and unemployment in India are due to other-worldliness, fatalism and apathy

of the general population. Those who have it, like to bury their wealth underground,

donate a part to temples, or spend it for status enhancement on the occasion of

weddings and other social ceremonies. Government policies of protectionism and

socialism and subsidies, as well as foreign aid, instead of trade, are also not

helpful. Add to that corruption and machinations of networks of political leaders,

bureaucrats and criminal gangs. Western powers are in favour of increasing the

purchasing capacity of the middle class, who are in a position to buy goods imported

from abroad. Their elite salesmen do not desist from manipulating the channels of

information and raising threat perception of third world rulers with a view to

making them willing to stockpile weapons sold by them. Foreign aid projects are

designed to promote bilateral trade with donor countries.

Gunnar Myrdal pointed out the limitations of value-free social scientific approach

in understanding such problems. He distinguishes between growth and development.

Development is not only economic. It includes historical, political, institutional

(economic and non-economic) dimensions as well as strategic policies for social

reforms. Myrdal’s theory of cumulative causation for development embraces the

following aspects:

(1) Low production and income;

(2) Conditions of production (lack of capital, level of industrialisartion, old

methods of agricultural cultivation, poor savings, lack of proper means of

communication, etc.);

(3) Low level of living ( shortage of food, clothing, housing, healthcare,

etc.);

(4) Attitude towards work ( apathy, superstitions, narrow horizons, non-

cooperation, etc.);

(5) Institutions (caste and untouchability, weak national integration,

corruption, unripe politics, soft state, unemployment, poor banking and financial

institutions, etc.);

(6) Policies for coordinating 1 to 5 above, for upward movement of the entire

system with a view to creating a virtuous circle of development.

21.2 Exclusive and inclusive growth

An organisation serves as a means for the achievement of certain goals. A state

is a super-organisation. It creates conditions for the existence of other

organisations within it. It exercises authority, i.e. legitimised and regulated

power. Power is the ability to get things done. A dictatorship arrives through the

muzzle of a gun. A democracy expresses the general will. The popular will expresses

itself through a legal framework approved by a constitutional assembly. It is

reiterated through free and fair elections at regular intervals. Elections delegate ……………………………………………..

authority to a set of political leaders till further elections. In a liberal

democratic state, political leaders decide what is to be done under the given

circumstances. They occupy spots with apical dominance. They get their positions by

dint of their popularity. Career bureaucrats are chosen by properly appointed

selection committees on the basis of their educational qualifications and merit.

They play secondary roles. They work out the logistics. They keep ready the means

(say manpower, materials and money) for attaining the goals (say, economic

development) laid down by the elected leaders. While passing final orders,

political leaders refrain from interfering in day-to-day affairs. Officers stand by

them with advise, and implement the orders given by political leaders. Political

leaders show the direction. Bureaucrats take necessary action in the matter.

Officers are in charge of vehicles. They provide cars with drivers. Leaders tell

them where to go. A bureaucrat is like a knife. A politician wields that knife. He

exercises control over records and memory of precedents. An officer can entangle a

political leader in the intricacies of rules and regulations. A legislator is not

supposed to interfere in day-to-day affairs. But he will not be effective if he

cannot make use of his interpersonal skills and experience of dealing with men and

matters to make the officers dance to his tune. Nexus between political leaders,

bureaucrats and criminals with a view to recycling organisational resources for

their own private use can play havoc with a state. On the other hand, interlocking

between the three can raise production and productivity manifold. If the leaders

are no good, watchful voters can remove them from office in the next elections.

Eternal vigilance is the price of liberty. In order to prepare them for a smooth

working relationship, officers have to be mentally prepared to act according to

instructions from democratically elected governments. This is a cultural

achievement. The state in India carries the remnants of its colonial and feudal

traditions. When Myrdal characterised the state in India as soft, he was asserting

that sometimes its writ does not run far, while now and then it strikes back with

anger.

Growth and development

Growth requires several inputs, like land acquisition, availability of disciplined

and hard working skilled manpower, investments, hydraulic dams and thermal power

plants for the production of energy, transmission lines, railway lines, roads,

shipping facilities, public and private transport services, telecommunications. Add

to that urbanization, communication facilities, literacy, and so on and so forth.

Exclusive growth means that some sections of society enjoy preferential access to

the available resources. This may be done on the basis of caste, colour, creed,

etc. Inclusive development leaves no stone unturned to reach all nooks and corners.

[Type text]

Table 16: Remove poverty - but how?

Exclusive growth Inclusive developmentLimited to for the elites For the masses tooFor the upper class Affirmative action for exterior castes, reservations for SC/ST OBC,

religious minorities, border areas, handicapped persons and other weaker sections tooEntrepreneurship Workers’ welfareHigher productivity Distributive justice Generating wealth Common man’s welfareNew middle class Circulation, accountability, responsibilityRaise productive capacity

(GDP)

Per capital income

Authoritarian DemocraticInequality of

opportunities

Equal opportunities for getting higher income, status and power

Higher standard of living for each and allExcludes some Includes everybodySupply DemandGet and spend Sustainability

Unplanned growth of a planned city

Due to the loss of Lahore to Pakistan in 1947, Chandigarh was designed as the new

capital of the Indian Punjab. The new city was planned for a population of 2 lakh

to begin with and 5 lakh in the long run. In order to make optimum utilisation of

the available resources, building actitivity on the periphery of the capital was

prohibited. Break up of a house into parts was not allowed. Soon, however,

overcrowding, encroachments could not be controlled. Due to political reasons, the

city was divided into three administrative units. They pursued their own cultural

policies and linguistic practices. Roads had to be widened to accommodate larger

traffic. Soon, the unplanned growth on the way to becoming an island of excellence

became a densely overgrowth village. …..

Human development index

Mahbub ul Huq occupies apical dominance in preparing a human development index for

united nations development program, in consultation with some other top notchers.

He applied it for comparing different nations at various points of time. For the

time being, some countries were excluded, for various reason. This index is composed

of the following indicators: life expectancy, education, and standard of living.

Their wheightage was changed from time to time, with a view to applying correctives.

Broadly speaking, countries like Norway, Australia, and USA can be classified as

……………………………………………..

highly developed. On the other end, Afghanistan, and Burma marked by a low grade of

human development.

22.0 Conclusions

Red threads from the above discussion can now be brought together and tied up at

their ends. Morality generates social solidarity. Segmentary societies are

maintained by collective conscience, while organised societies are held together by

the ethic of individual responsibility. They unite society by reinforcing mutual

trust and confidence. Mistrust slows down reactions and gets in the way of

spontaneous cooperation. Spontaneous cooperation without any doubt is a necessary

condition for team work. Joint activity makes the path towards organisation smooth.

Organisation based on systematic deployment of workforce is indispensable for a

higher level of development. It cannot be limited to economic growth alone.

Development needs an upward spiraling advancement towards a higher level of

existence. With the passage of time, simple hordes evolve into segments, segments

get organised, reorganised, and then more and more complex. Inadequate organisation

retards development. In India and its neighbouring regions, a variety of historical

epochs are surviving side by side. People are hardly ever bothered about how those

not belonging to them are living or dying. Some ethnic groups are used to crossing

the territorial boundaries now and then during disasters and crises. We are dealing

here with a heterogeneous, multi-epochal, multi-culural society. It is primarily

multi-segmentary, with enclaves of organization here and there. Cultural change and

social development are held back by a hotch potch of organisational forms and norms.

Bureaucracy is a rational legal formation. It is a historical achievement. In

India at present, its members continuously occupy their status without taking due

care of their roles. They become active only during emergencies. Role mix,

especially political interference in offices , courts of law and hospitals, with a

view to redressing personal grievances, is common. Rule of the ruler prevails. What

is written on paper is put into practice after looking at the face. Much of what

goes on above board or under the veil of being well and proper, is off the record.

Size of the organised sector of the economy (especially manufacturing) being small,

there is a lot of scope for informal procedures. Power is an important variable in

dominating, exercising control and decision making. Political support and approach

up to the topmost level is the way to managerial success and social empowerment.

Men of power cannot resist the temptation of refunctioning collective resources for

private use, even if under the thin veil of legal niceties. New bases of social

mobility, even though limited, are perpetuating the same old bases of social

stratification. Irrationality of rational legal forms, like unplanned growth of

planned structures, is a fact of life in India. Inadequate organisation, that is the

problem. In a functioning democracy, civil servants play secondary roles, while

[Type text]

elected representatives of the people are primary. The latter do as directed by the

former.

The synergetic work culture in the null tariff food distributaries stands in contrast

to the soft work culture in government offices, factories and banks in the country.

In an office, papers move at the pace of a snail drenched in wax. Those who want to

get or let things done have to chase the case files from one stage to another along

the top heavy steep hierarchy. Employees are loyal neither to the chair nor man in

the chair or organisational norms. They are always on the look out for some big fat

hen, who will shell out something for them They are bound to one another through

informal give and take, in the hope return favours at the time of their need.

Rampant games and fights like divide and rule, passing on the buck, mischief

mongering, refunctioning of public resources for private use, miscommunication, make

bloating bureaucratic organisations with due and undue privileges unwilling to do

what they ought to be doing. Organisational behavior in India is often illegal and

irrational.

Trade unions are indispensable for modern work organisations. Trade unions are

continuous voluntary combinations of employees for verbalising and safeguarding

their interests regarding division of work and allocation of rewards at their place

of work. For this purpose, they raise a hue and cry against their employers and

managements, when they find it necessary to do so. At different times and places,

they have used different strategies falling back upon various ideologies.

Effectiveness of red/pink trade unions in Germany stands in contrast to mock trade

unions in Japan. Rather than being continuous bodies trade unions in India are ad hoc

formations. They become active only during crisis situations. Workers’

participation in management remains on paper without being put into practice. The

supporting norms have not been internalised. Controls from outside do not work.

Rotation of headship reduces effectivenns without increasing democratisation.

Let us wrap up this discussion. Statesmen mould super-organisations. They lay

down policies and programs. They prepare the people to get organised and make

strides towards development. Entrepreneurs are interested in themselves. They set up

shops to earn money. Managers take care of tin tacks. Various actors in the

situation play the game in the spirit of the game. By and large, division of labour

in society promotes social solidarity and boosts productivity, reduces pro rata costs,

extends the market, improves profits, increases wealth. That calls forth a higher

degree of division of labour and a virtuous circle of development. Development is a

broader category. Growth creates the resources for sustainable development. The

latter includes equality of opportunity for aspiring to achieve higher education,

jobs and income, better health as well as pollution-free air and water. Several

factors are involved in this process. Above all, orderly organisation of those

wanting to fulfill their needs is indispensable for this purpose. Ideas apart, as

far as the situation on the ground is concerned, in comparison to the rest of the ……………………………………………..

world, the pace of social change and social mobility in India is slow. Under the

existing conditions of our living, capitalism very well means development.

Shifting over from feudalism to capitalism, that is the uppermost problem before us.

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