Business Ethics UNIT 1

Principles of Indian Management

1. The Basic Principles: a) Tat Tvam Asi: Everybody can make himself a Geniusb) Aham Brahmasmi: I have immense potential. I can make the impossible possible

2.  Why Work? Atmano Mokshaya Jagat Hitaaya Ca: - For my personal growth - For the Welfare of the World.

3. What is work? a. Yagnayacharatah karma: Work is to be done with the spirit of Yagna (Teamwork, Selflessness)b. Parasparam Bhavayantah: Nurture each other (Win-win approach).

4. How to work? Seva + Tyag: Serve others. Give your best for the good of others

5. Spirit of WorkYogah Karmasu Kaushalam: Cleverness & Excellence in action is Yoga (state of spiritual insight)

6. The Resources a) Sukshma or the subtle subjective, intangible factors are equally important than sthula or gross, concrete, objective, tangible factors. b) Karma-Kshetra is Dharma-Kshetra-implies that one should treat the workplace as sacred and keep it clean and bring in orderliness and cleanliness.

Model of Indian Management

Salient features of Model of Indian Management

There are two important principles of Indian model of Management:- 1. Human values2. Holism 1.) Human Values : – They refer to spiritual, ethical and moral values. – These values form a basis for thoughts, actions, skills and

behavior and eventually lead to formation of a good character.– These values will make good man, good manager and a good

organization and ultimately remove pollution from the minds of the people.

2.) Holism :– It means oneness or unity. – The Holism is wider than systems approach to western model of

management.– A human being has a soul, body, mind and intellect.– It is emphasized that all the above components of our personality must

be developed. – Holism is unity, the absence of duality, hence the absence of conflict and

disharmony. – Thus the Indian Model of Management is value driven holistic approach

and much better than Western Model of Management.

Theory of Karma

The law of cause and effect forms an integral part of Hindu philosophy. This law is termed as 'karma', which means to 'act'.

The theory of karma follows the Newton’s principle that every action produces an equal and opposite reaction.

Every person is responsible for his or her acts and thoughts, so each person's karma is entirely his or her own.

Hindu philosophy, which believes in life after death, holds the doctrine that if the karma of an individual is good enough, the next birth will be rewarding, and if not, the person may actually devolve and degenerate into a lower life form. In order to achieve good karma it is important to live life according to or what is right.

Types of Karma

– According to the ways of life chosen by a person, his karma can be classified into three kinds.

The satvik karma, which is without attachment, selfless and for the benefit of others

The rajasik karma, which is selfish where the focus is on gains for oneself The tamasik karma, which is undertaken without paying attention to

consequences, and is supremely selfish.

Holistic Management

Holistic management describes a systems thinking approach to managing resources that improves production, generates financial strength, enhances sustainability, and improves the quality of life for those who use it.

Holistic Management is a process of goal setting, decision-making and monitoring.

It was developed by Allan Savory a Zimbabwean Holistic management offers a new decision-making framework that

managers in a variety of enterprises, cultures, and countries are using to help ensure that the decisions they take are economically, socially, and environmentally sound, both short and long term.

Theory of Holistic Management

While the notion of thinking holistically has been around for a long time, Allan Savory is one of the first to develop a step by step process for holistic decision-making. His method can be used by individuals, families, communities, organizations, businesses, government agencies -- anyone or any group that needs to make a decision.

The holistic decision making framework uses the holistic goal to guide decision making.

All actions and decisions are tested to determine whether or not they will help reach the established holistic goal.

Testing and management guidelines, planning procedures and a feedback loop assure constant monitoring of the success of decisions.

This method first helps the decision-makers identify all the important people and resources relating to the issue at hand, especially those that are very often forgotten. The next step is to bring these elements together into a new "whole“

With this broad holistic goal in place, the group has a benchmark by which they can measure their future decisions. A subsequent testing phase reaches back to often ignored considerations to make sure that none are being forgotten.

Why is Holistic Management needed

Cost-effective

Organizations don’t need large amounts of capital or expensive technology to start this.

Highly scalable (can be evaluated)

Holistic management is readily deployable and works for any culture or landscape.

Regenerative (can be re-established)

Profitable

Organizations who use holistic management have seen their production commonly double or triple, increasing their profits and financial well-being.

Practices of Holistic Management

IDENTIFY THE WHOLE1. A group of decision makers agree to use Holistic Management

in their business, community, family, government agency, etc.2. They identify anyone else whose decisions will affect the entity

that they are managing and invite them to become part of the process. This includes owners, administrative assistants, volunteers, laborers, agency heads, elected officials, and so forth.

3. Next, they identify all the resources available to this group of decision-makers including physical resources and financial assets. They identify as a resource, anyone who will be affected by the decisions -- clients, suppliers, family members, community organizations, homeowners etc.

DEFINE THE GOAL1. The group produces a quality of life statement. This takes into account

individual needs as well as group considerations. It takes into account what constitutes economic well-being, what they want to achieve in relationships with others, how they will find challenge and growth, and what they see as their particular contribution to the community, family, workplace, etc.

2. They then create a list of what they will need to produce to meet each quality of life need. Allan Savory gives an example "If one of your desires was 'to enjoy what we do everyday,' that could be met in part by producing 'a balance between our work and personal lives','sufficient time for strategic planning', or a host of other things."

3. Finally, the group takes the future resource base into consideration. This includes the people, land, and community of the future which will sustain what you have to produce to meet your quality of life need.

TESTING Once the holistic goal is established, future decisions will be

tested by whether they are in line with the holistic goal.These are some questions which can help with this step:

Are we fixing the right problem? Are there other reasons why a problem might be occuring than

the one we think we're fixing? Are we spending a lot? Will the decision be beneficial to our resource base in the

future? Will the decision help us meet the quality of life goals stated in

our holistic goal?