NO. 11 BUSINESS MANAGEMENT: A CHALLENGE
Our management should be such that even if we are away from the factory the production should not get affected and the plant should keep running smoothly. We should make an effort that we remain in touch with the officers and are in know of the activities going on. We should also have a system in place in our establishment where we keep getting the updates about what is happening in the market. At what cost are our competitors selling their products, what is their quality and what is their future strategy – we should remain informed about them. Our future plans and the quality improvement measures that we plan to introduce should remain a secret in order to prevent our workers and officers from disclosing the details to our competitors. Improvement is an ongoing process in any industry and does not ever end and that is why we should always have an internal audit. This will keep us informed of the incoming and outgoing of our capital and we will not remain in dark. Ups and downs are always there in a business. At times, instead of being profitable, the business or trade turns into a loss incurring venture. The main reasons behind this are listed below -
Not keeping pace with technological advancements.
No demand for the product in the market.
Entry of an alternative to our product in the market.
Failure to make capital available when needed.
Cost of production exceeding the selling cost.
Differences cropping up between the management and the workers, strikes etc.
There are two conditions under which any industry shuts down – first, when shutting down the industry takes care of the reasons behind the problems and second, when shutting down the industry does not take care of the reasons behind the problems. In the second case, it is preferable to shut the industry down. This is similar to the case when treatment for someone ailing is continuing but there is no cure for a dead person. The continuous losses being incurred by the business warn us about its future. When a business is shutting down, it should not happen abruptly. This could have two repercussions – first, we will fail to realize our credits from the market and second, tension, which may also become violent, between the management and workers can escalate. One strange thing about our country is that to shut down a business employing more than 100 employees, we need to seek the permission of the state government. Owing to political reasons, one never gets this permission, however much be the loss being incurred by the business. This is a very grave situation, both for the employer and the employees. Since the business could not shut down when time permitted, the workers get deprived of their compensation and gratuity which is a great loss for them. After Independence, the laws which were made for our industries were driven by socialist ideology. The result was that the importance of a businessman was negated. The laws were made treating him as a merciless exploiter. As a result industrial growth in our country could never catch pace and secondly, difficulties being faced by the industrial sector remained unaddressed and numerous industries shut down and remain so even today. Thus industries could not play the part that they could have in fighting unemployment and also the government banks suffered losses amounting to crores and crores. We have accepted mixed economy. We could neither remain Marxists nor become true capitalists. We now find ourselves caught between a rock and a hard place. At one time our governments rode high on the wave of nationalization and this irrevocably harmed our industries which otherwise could have played a significant role in the country’s economic growth- result being a steady fall in our Gross Domestic Product. Countries all around the world were developing where as we kept marching towards downfall. Industries play a deciding role in determining a nation’s social advancement and industrial growth. They should contribute to education and medical fields. Industrialists can play a role in strengthening the moral fiber in our society, making it more socially aware. A few years back, some social workers had come to the factory asking help to resolve the problem of drinking water. They wanted to have tube-well dug and expected the factory to extend financial help. Since it was a matter of public welfare, the Chairman of the company financed not one but, eleven tubewells. He believed that because he had the finances, he should not hesitate in spending it for public welfare. When we spend on a good cause, both, Goddess Laxmi and Saraswati shower blessings on us. When we help others we display our refined humaneness. There is no greater satisfaction than this. It gives us a feeling of self-satisfaction and happiness and we experience eternal peace. There is a folk lore which says that once Goddess Laxmi and Goddess Saraswati decided to walk over the earth together. When people saw Goddess Laxmi, they started to bow down to her feet and started pleading for her blessings. Goddess Saraswati was hurt by the disregard shown to her. Goddess Laxmi could guess that and she told her worshippers, “Fools, pray to Goddess Saraswati first. She is the giver of knowledge and wisdom. I am nothing without her. My blessings bring good to only those who have been blessed by her”. Men repented for their mistakes. They prayed for Goddess Saraswati’s forgiveness and bow low before her feet. The lore also says that since then, the two do not abide together at one place until and unless the God almighty himself has blessed the place. This realization is an important step in a man’s success that his life is incomplete till he is blessed by both.
NO. 12 COMPETITION – A SIGN OF PROGRESS
I have an industrialist friend. They are 2 brothers. Since one of them owned many factories, he had ample money. Just so that his brother’s factory should run in loss, this brother started selling his goods at cost lower than the production cost. As expected, the sales of his brother’s goods dropped to nil. With huge losses, the brother could not run his factory for more than 2 years and ultimately, had to shut it down. This established the monopoly of the other brother in the market and he started selling his goods at prices he desired and earning huge profits. From business point of view, there was nothing wrong with what he had done but it was morally wrong. We should abide by the principle of ‘Live and let live’, meaning we should allow others to grow along with us. It is very necessary to remain alert in life. When one starts progressing in life and touching new heights of success, those near and dear to him may start to get jealous. A rich industrialist’s son was turned into an addict and made to indulge in gambling, betting, alcoholism and fornication by his own people. This resulted not only in a loss of huge amount of money, but also tore the family apart thereby harming their growth in business too. Thus, one should not only be careful in business but also in this direction. Mutual competition in business and trade can assume disastrous proportions and turn competitors into enemies who then cross all moral boundaries and are pushed towards their downfall. Factories of one of my friends and his relative produced similar goods and soon from being relatives they turned into competitors. Of these, one of the factories was well located where the raw material was easy to acquire and the finished products easy to sell. As compared to the other factory, his profit was much more. One day, the owner of the factory decided to crush his friend and so he started selling the goods produced in his factory at the cost price itself i.e. without any profit. Over the time, this resulted in loss for his friend’s business. That friend too, was astute and far sighted. Before his losses became insurmountable, he surrendered without protest. When the time was right, he claimed that he needed the capital for investing in some other business and sold his factory at a mutually agreeable price to his friend and established a new business for himself. Now this friend, who had bought the factory in half the price, in the absence of competition, increased the rates of his goods thereby increasing his profits by leaps and bounds. Although, this is not a constructive example, but it is a very common happening in the business world and one we should always be watchful about. We should also be in the know about the basic laws of the country and work while remaining within the limitations of the law. For example, we should make timely payments of Provident Funds, ESI, Income Tax, Property Tax, Excise Duty, Service Tax etc. This will enable us to work peacefully. When we fail to pay on time, we get entangled into unnecessary legal issues which lead to a loss of our time, money and prestige. This stress affects are daily working also. Whenever we submit any affidavit we should not write ‘This is true as per my knowledge’, instead we should write ‘This is true as per the information provided to me’. Similarly, when in doubt, do not submit anything in any court of law- instead ask for an extension of time. In such cases we should not resort to speculations and assumptions. Once we are sure of the facts only then should we give any submission in the court. Whenever you establish a business the society starts looking up to you with respect as a businessman and people, in their belief that you are wealthy, start expecting monetary help from you. Today the definitions of civilized, cultured and mannerisms have changed. Today, one who borrows is not indebted instead the fault lies with the person who lends. Once he has given the money then, like a whimsical man, he keeps after the borrower in the hope on recovering the amount. There was a time when borrowing was regarded as a disgraceful act. Not to repay was regarded against our cultural norms. Society used to look down upon such people. Now things have changed and money holds sway. Now money has to be earned – by whatever means – whether rightly or wrongly. Tables have now turned. People criticize those who lend money. The borrower walks with his head held high whereas the lender is worried sick. This is the scene now and we should keep this in mind before we lend money to anybody. I don’t mean to say that every person in the world is the same, in fact there are many who do return the money borrowed on time. Such people earn respect of the society. There is a place near Jabalpur, Sleemnabad. A financially well off farmer, Ram Manohar used to live there. He had ample agricultural land but family disputes and irrational decisions taken by his sons brought upon bad times. Gradually they were forced to sell off their lands in bits and pieces and soon a day dawned when even to cater to his family’s daily needs he had to borrow money from a landlord, Mohan Singh, from a nearby village. But whenever he borrowed, he made sure that he returned it back on time. Once, he had to borrow an amount of 1 lakh. The deadline to pay the loan back ended. Mohan Singh waited for a few more days but then reached Ram Manohar’s home to find out the reason behind the delay. When he reached there, he was shocked to know that Ram Manohar had expired the previous night. Actually, owing to his faith in Ram Manohar, Mohan Singh had lent the money without having done any paper work. Now with Ram Manohar’s sudden demise, had died all hopes of Mohan Singh ever getting his money back. He felt helpless because there was no point in expecting anything from the sons. It was with a very heavy heart that he attended the last rites. Evening fell and Mohan Singh sat with a very heavy heart for having lost a true friend. On one hand, he had seen his long time friend turn to ashes and on the other, he had lost a big sum of 1 lakh rupees. Suddenly Ram Manohar’s youngest son came up to him and said, “Sir, my mother wishes to see you.” Mohan Singh thought that may be his sister-in-law needed his help for something and accompanied the son to his dead friend’s home. When he reached there, the lady gave him a packet saying that Ram Manohar used to keep the packet under his pillow. His ill health had prevented him from going anywhere but he had told his wife that in case any misfortune befalls she should give the packet to Mohan Singh. She also said that she had no idea what the packet contained. When Mohan Singh opened the packet he found 1 lakh rupees in it. Ram Manohar’s face flashed before his eyes and tears started rolling down his eyes. With the money Mohan Singh built a memorial platform in the name of Ram Manohar which till date is famous as a memorial of an honest man.
NO. 13 ALERTNESS
Normally, when our enterprise is showing profit we invest more capital in it with the intention of increasing the production but when recession hits and there is a drop in the sales, we are in need of more working capital but find ourselves in trouble because we do not have the required finances. We should never forget that at such times even the banks do not lend a helping hand. In the same way, when a business runs well, the person invests the earned capital in expanding his business and saves nothing for any adverse time that he may be faced with in future. Later, if such a thing happens, he is troubled. Thus it is clear that future expansion plans of an industry or a business should always cater for unusual circumstances. When you are earning well, you should always remain conscious of your family members also. It should not happen that the members of your family become over-indulgent and start falling into bad habits. If such things start happening in your family, then your entire enterprise will turn into a failure. Such a situation will not only harm you financially, but also create problems for you in future. We should never become boastful, instead be more respectful and humble so that we earn more good name and good will in the society. Besides business, it is very necessary to pay attention to our family also. A human life is like a river. Like a river, which starts from its mouth to gets lost in the ocean, our life too begins from our mother’s womb and ends in ashes. Life is the struggle between birth and death. Using his skill and intelligence, a boatman navigates his boat on the waves and takes it towards a harbor. Struggling with the strong waves, stormy weather and rapids, the boatman successfully brings his boat to the coast. In the same way, a businessman too struggles against all adverse times and succeeds in achieving his target. An incapable boatman, who fails to take correct decisions when faced with difficult times, keeps struggling to find the right way. His boat is bound to sink. In the same way, an inexperienced and insensitive man cannot find any standing in the society. The boatman then leaves behind his experiences and skill set for his children to learn from. Similarly, a successful businessman too leaves behind his experience for his children to take lessons from. The oar gives direction and speed to a boatman’s boat. It is our conscience and wisdom that help us in our enterprise and once a man understands this fact, his life will become hassle - free and success will always be his. He will earn wealth, happiness and live a respectful life in the society. We should give time for a business to start running smoothly. Along with our business, we too should grow in a holistic manner. We should take out time for our hobbies and take interest in literature, art, music, social welfare etc. Only then will we be able to experience life in its entirety. The famous Chinese philosopher, Confucius, had said that a man spends half his life in earning wealth and the remaining half in spending it to protect his health. When he is on his death bed, the reality strikes him that he could neither save his wealth, nor his health. His life has been a complete waste. What I mean to say is that we should invest time of our life not only in the growth in our business but also in other areas. Only then will we continue to live with respect in the society. However hopeful we may be with regards to our family, we should never forget that only what we have labored for will come to our aid. I have seen that there are many who give away everything to their wife and children in the hope that whenever they will need, their wife and children will take care of it. Such people have always suffered and felt disappointed. Realities of life are very harsh. When one asks his wife for help, very often the reply is something that one had never ever dreamt of. At that moment we feel so humiliated and insulted and remind ourselves of the times when we use to earn, the entire household ran on our earnings and everyone had enjoyed all comforts of life. But no one has the time to listen to you now and we feel cheated. In this reference the following lines of an old Hindi movie song still hold relevance – Kasme vaade pyaar wafaa sab Baatein hain, baaton ka kya? Koi kisi ka nahin, ye jhoote Naate hain, naaton ka kya? That is why we should always be careful and never be financially dependent on our children and wife. We should always save separately for our old age. Mohanlal Ji used to live in a multi-storey building near Jaslok Hospital on Pedar Road in Mumbai. He was intelligent as well as kind hearted. Near his building there lived a hermit who remained in God’s worship the whole day. Since years, Mohanlal Ji’s household had been providing for the hermit’s dinner. One day the hermit told the servant who had brought him dinner to ask Mohanlal Ji to come and meet him. The moment Mohanlal Ji heard this he rushed to the hermit wanting to know why he had been called. The hermit said, “Today the food from your house had a different taste. I read this as a warning of impending bad times that may befall you. Definitely, you are to take one or the other major decision of your life very soon.” Mohanlal Ji said, “I plan to divide my property between my wife and my sons. My requirements are very limited which they will very happily accommodate.” On hearing this, the hermit said, “Divide your property not into 3 but into 4 parts and keep one part for yourself. This will save you from being dependent on others for the remaining part of your life.” Mohanlal Ji smiled and said, “We are a happy family and we all love one another. I don’t think this will be necessary.” Mohanlal Ji left and after some time divided his property into only 3 parts and gave them away to his wife and sons. For some time everything was fine but then he started to feel that his sons do not like his interference in matters relating to business, trade and family. Mohanlal Ji started feeling ignored and neglected. One day when all limits were crossed, with a very heavy heart he left his household for an unknown destination. Before leaving town he went to the hermit who asked the reason for his visit. Mohanlal Ji said, “I had gone from light to darkness but now I am going back towards light. I have no idea what future holds for me but I hope that I will be able to respectfully earn two bites of food.” The hermit said, “I had tried to warn you. Now, work very hard. You will shine like the sun and your light will guide others.” “Many people come to me and offer a lot of money to me but I have no use of it. You make good use of it and move ahead in life. Become a good example for others to follow. Even those who have ill-treated you should be taught a lesson.” Saying this, the hermit gave lakhs of rupees, which had been lying with him, to Mohanlal Ji. Using this money, Mohanlal Ji restarted his business. He had both, experience and astuteness, with him and also had a good repute in the market. Very soon he re-established his business in the market. Meanwhile his two sons robbed their mother of her share of the property also. Soon their relations grew sour. Their business crashed. Meanwhile Mohanlal Ji had become more prosperous than before. The sons approached him and requested his help. Mohanlal Ji clearly said that he had no right over the money he earned because it was being controlled by a trust and he was just a trustee who was taking care of the wealth. Whatever there was belonged to the hermit. If the sons wanted help, they had to go and request the hermit. When the sons approached the hermit, he denied any help and told them clearly that they have to bear the burden of their ill-deeds.
NO. 14 BRAINDRAIN – CONCERNS, CONTEMPLATION AND BRAINSTORMING
There used to be a time when in India workers and officers were paid very less. But now, with time, things have started to change. The workers have started realizing the worth of their labour and the officers have started valuing the requirement of their skill and their rights. Now workers can no more be exploited. They are being paid well. Similarly, even the officer class is being paid to match their skill. In this way, all have become aware of their rights and very soon will become conscious about their duties too. Now we see that there are hardly any lock-downs or strikes in industries. The main reason behind this is the substantial increment in their wages. No businessman, trader or officer should waste his time in dealing with unnecessary people. They should keep in mind that in order to maintain their respect and exclusiveness they should meet only selected people. Life gives us many chances to meet people with multidimensional personalities. If you meet a proud person, then in your conversation, you should always keep praising him so that he remains happy and if you disagree with anything that he says, rather than entering into a debate, remain quiet. If you meet a distrusting person, then you should clear all his doubts at the first opportunity. If you meet an unintelligent person, then you will be wasting your precious time, energy and intellect while talking to him. Always keep in mind that no person should feel humiliated when talking to you. However unimportant or inconsequential the person may seem to you, remember that you may need him anytime in future. However knowledgeable you may be but when you are among other businessmen, try and understand their thinking and show your knowledge only at the right moment. Remain focused on your task so that the quality of your work impresses others. For this, rather than getting caught up in many things at a time, prioritize your work and finish them one by one. One should never boast about one’s performance. This makes you an object of other’s mockery and criticism. Your image should be one of a hardworking and talented person. You should advise others based on your experience only. You should praise the good work done by others. If you keep looking for faults then you will come to be known as a critic and your comments will become a cause of annoyance and irritation to others. If you appreciate the achievements of others, they too shall appreciate your work. Develop flexibility in your attitude so that you are able to adapt to changing times and circumstances. You cannot grow to like everybody because all are not the same. If the aim of your life is to find a good job, then you should target being one of the top 5 officials of the company. For this you will have to keep working incessantly. If at the beginning you are given any important post, you should take advantage and use the opportunity to grow and reach the highest echelon in the company. A few years back, the youth were greedy for going to foreign countries and earning money but now the times have changed. Good industrial organizations in our country now appoint people at good salary packages. With this growing patriotism in people now they do not move to foreign countries for jobs. In order to provide his expert and dedicated services to the Indian Railways, Mr. Sachin Shukla, an IITian from Mumbai and awarded with Gold medal at Director General level, the General Manager Award etc. is now posted as Deputy General Manager at Jabalpur. Sharing his experience, he said that when he was in his last year of Electrical Engineering at IIT, Mumbai then most of his friends were trying to go to American universities for higher education. American universities would always welcome IITians who were good at academics because such students were intelligent, hard working and dedicated. Most of his friends had been admitted to one American university or another and had been granted scholarships also. They were extremely happy about it, as if God had granted them a second life. His friends advised him also to go to America because talent was not given its due recognition in India. There was only corruption and caste based reservation here. In America he would get easy opportunities of growth and would soon become financially strong too. Getting influenced by his friends, he too tried going to America, and by God’s grace got admission with scholarship in a university there. He started preparing for his move, but his heart was not in it and he kept wondering whether he should give up his motherland in order to live a so- called better life in a foreign country? Was it not possible to earn an honest livelihood in our own country? If the exodus of talent continued then how would our country ever prosper and develop? He was caught in this dilemma when he was offered a high post in the Indian Railways. Even then people were of the opinion that only the corrupt and sycophants got promotions in jobs. They told him to settle down in America and live a peaceful life. While his mind was still struggling between the two options, he was reminded of a Sanskrit shlok that he had learnt in his school days ‘janani janhbhoomich swargadapi gariyasi’ (जननी जन्मभूमिश्च स्वर्गादपि गरीयसी) which means that our motherland is greater than heavens. As soon as he was reminded of this he made his decided that if one does not take the initiative to improve the conditions then the person does not have the right to criticize the system. In order to run well, any administrative set up requires good people. If there were no honest and committed people around then how will administration be able to work for the welfare of the masses? The moment this thought came into his mind, he dropped the idea of going to America and decided to remain in India and took up the job in the Indian Railways. He tells the youth that he took the path in life which he believed to be correct. He appeals to the talented young people that, just so that they may earn more they should not leave their country, instead they should remain here and work determinately with a positive outlook.
