THE INTERNATIONAL WORLD OF BUSINESS - ROLE OF HRD IN ENGINEERING 8 MANAGEMENT EDUCATION.

Prof. P.B.Sharma Ashish Tiwari Anurag Sharma Principal Systems Engineer M. Engg. Sch.

DCE Computronics India KPI Kashmere Gate New Delhi 110048 Kharkov,Ukraine

ABSTRACT

The paperexaminesthe ptesent trendin globaleconomy

and the.& impact on the growth of the industries. A

review of the present status of free trade blocs with

special te&rem to GATT is presented. The role of

HRD in the changing scenanb is discussed. Effective

methods of honing the HRD to achieve the goals of Total

Qual* Management are discussed.

1. INTRODUCTION

We are nowat a tuming point in history. The post

war drive to create trade blocs and trade systems for

transnational business has nearly run out of steam. The

world today is in the throes of a completely new order.

Economics is taking precedence over politics. Today

many are of the view that GATT, a 1948 conception,

now has outlived its utility in the new challenges of world

economy [I]. It is therefore not surprising that the

historical pattem of economic relations among nations

is undergoing a significant change. The nations are

increasingly recognising that restrictive trade and in-

vestment policies are selfdefeating, and are a deterrent

to economicand technological growth [2]. The deadlock

in the world trade negotiations has given rise to three

regional trading blocs, namely NAFTA,EEC and

Japenese Yen bloc which account for most of the global

output. It can be said that economic nationalism is fast

cutting across regional nationalism.

As per a recent count, the world has splintered

into 32 trading blocs - which include 3 in Europe, 10 in

Americas, 4 in the Middle East, 10 in Africa and 5 in Asia

More of these blocs are in the offing. The changing

geo-political conditions have created the possibilities

for new economic groupings among Commonwealth of

Independent States, as well as Black Sea Trade Clique.

Japan and the emerging South East Asian countries are

informally operating like an economic bloc.

The critics argue that these regional arrange-

ments, despite their benign growth, successes and a

central role in the new world economic order, have hurt

rather than helped the world economy. These trade

blocs have been considered politically convenient and

economically dangerous. The European Common Mar-

ket proposal by Robert Schauman in 1949 , was per-

ceived as an antidote to European War [3]. Even the

driving force behind the European Common Market was

a European fear of Soviet Military might and the eco-

nomic supremacy of the United States. The NAFTA is a

result of the United States’ anxiety overa successful EC

1992. Japan’s yen bloc is emerging as a counterweight

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to Europe and North American bloc. There are strong

apprehensions that if the trading system collapses into

the Big Three( Europe, America and Japan), super power

politics based on butter instead of guns, will rule the

world of the twenty first century. The new econemic

order has been perceived by some as regional hege-

mony disguised as free trade. "Like empires that pre-

ceded them, the regional blocs may divide intoa handful

of protectionist superstars" says Joseph Brand [I;. This

protectionist tendency would prove to be damaging to

countries outside the bloc, rendering them helpless in

the world's larger markets and making them suffer trade

loses due to mounting external debt see Fig. 1. Japan's

structural restrictions, European Community's volun-

tary restraint agreements to limit competitive threats

makes it very difficult for outsiders to reach their con-

sumers. "Protection has been the rule and is now

developing rapidly as the world collapses around three

equally powerful blocs", says Gary Schilling .

Membership in the regional blocs would mean

"Surrender of National Sovereignty", since individual

nations are required to adopt the laws and policies of the

trading bloc.

Unfortunately the success of these regional eco-

nomic groupings are dependent on the economic con-

ditions of member nations. Cracks have already begun

to develop in the European bloc and in NAFTA.

II. ' EFFECTIVE MECHANISM FOR

MULTILATERAL TRADE

One ,must not forget that all these blocs are

sufficiently involved with one another, that none can

afford to put up barriers against the rest. According to

Robert Lawrence an economist at Harvard University

"the US, Canada and Latin America look to the rest of

the world for about 65 percent of their total trade, Japan

and South East Asia rely heavily on the rest Of the world

for about 66 percent of that area's trade. West Europe

more self sufficient than the other two, still depends on

outsiders for about 29 percent of its trade".

The trading blocs are not 'New Berlin Walls', but

are being viewed as a viable, efficient and effective

mechanism to multilateral trade liberalisation. It is the

geography, history and culture which is at work. A bloc

dealing with another bloc could be easier than a nation

dealing with another nation or as Robert Lawrence

rightly opines "just three seats at the table instead of

108 chairsfor a GATT talk show". A US trade represen-

tative Ms. Carla says "Faster growth, more jobs, better

working conditions and cleaner environments result in

regionalisation of economies [I]. Besides economic

gains, the political stake in lasting peace rises as

economies become increasingly dependent. Fig.2.

shows a bird eye view of economic growth around the

world. It may be observed that the great slump of 1991 - 1992 has taken a turn towards an upswing now and it is

expected to maintain its uprise. The interdependencies

of the nations and the globalisation of the economy is

beginning to pay dividends. A reference to Fig.3. con-

firms that the upswing owes largely to the growth of the

economies of developing countries which have main-

tained a steady growth from 1991 onwards and even

earlier their economies were able to sustain the pres-

sure of recession in the developing countries. The

growth of economy of the developing countries has

added to the growth of World Output as may be seen

from Fig.4. The developing market is also recovering

from recession as is evident from FigS.

188

111. PROSPECTS FOR FREE TRADE

& BUSINESS

It is a welcome signal that national govemments

all over the world are moving out of economic hideouts

and are gearing up for more appropriate and economic

policies to become part of the world economy. Free

trade remains the ideal for the emerging democratic

world. GATT is not dead as some people are inclined to

think, it is only sick. It is an engine which has the power

to drive the world economies into the 21st century. "If

NAFTA or any other regional group disowns GATT",

Artur Dunkel, Director General of G A P wamed "the

post cold war could degenerate into economic confu-

sion and regional trade wars" [4].

IV. ROLE OF HRD

The near future promises more changes in the

manner people work, unlike the traditional organisational

setting. In the fast emerging scenario the organisational

pyramids must be flattened and more employees must

be given empowerment Although there are great

developments taking place all around the world, it has

been accepted in general that out of critical resource

called 5 M s (men, money, machines, materials, meth-

ods) of management, management of Man is the most

important.It is absolutely essential that the human re-

source in any enterprise must be in a position to work

effectively and efficiently at all the times. It is in this

context that continuing education is absolutely essen-

tial to the ensure that the human resource remains in

tune with the advances in technology as well in require-

mentsfor skills. The founding fathers of human resource

development in India as early as the Vedic times laid a

clear emphasis on "Swadhyaya Pramaditiviyam" i.e.

one should continue to achieve knowledge through self

study and continuing education programmes through-

out working life to achieve perfection "Kusalan

Pramaditviyam" [5]. Clearly the education of man and

hisquest for continuing education to contrituteeff eciently

and effectively throughout life was given the highest

importance. This has resulted in the creation of a work

force which was envied for its excellence beyond the

seven seas.

Presently the technical education pattern in India

is based on a four tiers system . There are over 330

technical institutions at degree level and 880 polytech-

nics with a total intake of 66OOO and 121000 respec-

tively. Besides these there are 5 IITs, IISc, and 17 RECs

Among the degree level engineering colleges there are

over 130 colleges under private ownership turning over

almost 50 percent manpower of the total engineering

graduates annually in India [SI.

The setting up of IlMs had provided excellent

supporf to the education for training of management

personnel. Our bright engineering and science gradu-

ates tum toward these institutions to upgrade their skill

and knowledge of management techniques. The up-

surge towards management has given rise to a large

number of institutions imparting management diplomas.

This has greatly added to the inadequacy of quality

manpower in this rather important area of education

We must exercise utmost care to safeguard India's

interest and to see that India does not loose in the

intemational world. Its human resource must match the

competence of their counterparts in the advanced coun-

tries. Then only we shall be able to face the emerging

challenges withcourage and confidence. With this idea

behind a total haul up of the technical education system

is required to make technical and managerial education

more relevant to meet the needs of the industries.

.

V. THE CHANGING WORK FORCE

The near future promises more changes in the

manner people work. A complete transformation of work

ethics, attitudes and the skills is bound to take place if

the workplace is to respond to the emerging

challenges.Today employees expectations about the

job, the organisation, and the family are different from

those of a generation ago. Employees are requesting

job security, an acceptable level of earnings, fringe

benefits, more autonomy, responsibility and opportuni-

ties for self development [7].

The present day managers should pay increased

attention to the quality of work life of employees and

their main concern should be that how the quality of life

affects the productivity, morale, the well being of their

employees and the organisational culture. Most impor-

tantly, how can the quality of work life improve to help

accomplish meaningful organisations and employee

goals? [8]

VI. THE CHANGING ORGANISATION

Organisations are also continuallychanging. This

phenomenon occurs because it can take place across a

broad spectrum such as an industry wide revolution in

technology, or narrowly,, such as a refinement of an

individual job description. It is evident that change can

induce an erratic pattern of behaviour in most instances,

alongwith contradictions. Employees affected by change

must be psychologically willing to make an effort to

adjust. Edgar Schein [9] depicts the elements affecting

change as not only learning something new, but un-

learning which requires altering of attitudes.

While discussing the role of HRD we should look

into another aspect which is nothing but conflict which

arises due to the above mentioned changes. The vari-

ous types of human conflicts are : Role conflicts, Per-

190

sonality Conflicts, Group Conflict, Inter-Group Conflict

and Cultural Diversity Conflict.

A conflict resolution programme can be pro-

moted as a more effective way to handle employee

disputes within an organisation rather than exercise

authority. Some of the conflict resolution approaches

are: Negotiation, Conciliation and Mediation [9].

There is an emergent need to develop and effec-

tively implement an Employee Self Governed

Programme(ESGP). One of the reasons why the ESGP

can meet with success is because humans want to

participate in decisions that affect them. This is the

surest way to achieve high level of satisfaction among

the work force as the distinction between the decision

maker and those effected by the decision is completely

lost.

It is important for the members of an organisation

to feel that the organisation is responsive to their

particular needs or problems. We must establish trust

through a multifaceted program for employees at all

levels, and establish direct service needs for all groups.

The human resource development can integrate con-

flict resolution by providing training in conflict resolution

skills to employees at all levels and all sectors of the

organisation.

VII. CONTINUING EDUCATION

Today all organisations operate in a competitive

and sometimes hostile environment. which demands

well informed human resources. The knowledge based

on information is a must for engineers and managers, to

survive and succeed in the present unforgiving and

competitive environment.

The technocrats and technical staff must be fed

with quality information so as to keep them abreast with

the state of art. The scenario at 'most of the industrial

units today, is a picture of outdated equipments and

management techniques, which must be modemised by

the new information & knowledge inputs by means of

continuing education for the human resource as well as

the upgradation of the technology.

The role of non-formal education for practising

technicians and engineers is becoming more and more

significant in the present environment of fast changing

technologies. Organisation of short term courses and

in-house training and retraining programmes are to be

given a greater attention in the personal policy of an

organisation. A quality conscious and productivity

\ orineted work culture can only sustain the growth of a

modern enterprise. The pressure of global

competitivness has thrown open new challenges to

which the human resource in trade and industry is to

respond effectively. Well planned continuing education

and training programme are to be integrated with the

employees development programmes (EDPs).

VIII. GLOBAL COMPETITNENESS AND

QUALITY ASSURANCE

The whole glamour of the quality lies on the skill

level of people, their mental outlook, sense of commit-

ment towards quality and the appropriate physical ac-

tivities for attaining the ultimate goal of quality from

product design stage to the product delivery, installation

and post delivery service stages . No doubt the task is

challenging but can be performed well with trained

manpower and by the use of improved technology within

the especially created quality environment adopting

customer satisfaction concept 161

The whole glamour of the quality lies with the

trained human resource, effective leadership and com-

mitted top management. The quality earlier was only in

respect of acceptance or rejection of a product. Then

came the quality circles for productivity improvement.

Today we are in the era of Total quality Management

(TQM) assisted by IS0 9000/ IS0 14000 series quality

system certification. It must remembered that assur-

ance only once even at the world standards, is not

enough as one has to remain competitive throughout.

What it really means that in the world of international

business, it is the capability toassure continuous quality

that is vital to retain one's hold on his share of market.

TQM has therefore to integrate in its fold well defined

mechanisms for &ntinuous Quality Management, CQM.

For CQM to be a real time pursuit, the human resource

i.e. the work force, management and leadership has to

be continually aspiring for education and training so as

to retain its calibre and skills to meet the emerging

challenges of competition and quality assurances at all

times.

The quality is not a one dimensional parameter,

rather, it is a multidimensional index having sevenfold

orientations such as Product oriented, Process ori-

ented, System oriented, Humanistic, Society oriented,

Cost oriented and Consumer oriented. In all these

quality indices the human resource plays highly signifi-

cant roles. A organisation having a well defined quality

assurance system cannot succeed to assure quality to

the customer if its human resource does not exhibit a

total commitment to quality culture.

IX. C O N C L U S I O N S

0 In the context of the changing scenario of work

ethos, and organisational culture we have no .

other viable altemative but to promote regional

economic cooperation among nations to

ensure peace, prosperity and freedom for all.

191

0 In a decade of profound organisational restruc-

turing, the world economy is to be revamped

and managed most effectively through regional

cooperation breaking all trade barriers.

a In the emerging World of International Business

the role of human resource, effective leader-

ship and top management has become most

crucial.

a Sndividual autonomy both as reward and incen-

tive, will be pivotal to the work ethics and

values for the century 21 employees.

0 An organisation shoirid move away from the

factory model and come closer to the empow-

erment of all employees.

a A major thrust for implementing a more

effective scheme for HRD through continuing

education is required to be given to ensure that

human resource remains quality and work con-

scious all the times.

0 The presently practised TQM must integrate in

its fold well defined mechanisms for Continuous

Quality Management CQM. .PA

R E F E R E N C E S

[ l ] Shyam s. Lodha, Splintered World Economy",

Business Journal, Southern Connecticut State

University, spring 1992, pp 2-3.

[2] Misra & Puri, Indian Economy, pp 38-39,43,60.

[3] Thomas Pyzdek, "Marcel Dekker, Inc. NewYork,

1989, pp 54-55.

[4] Hans J. Morgenthau. Politics among Nations -

The Struggle for Power & Peace, pp 554-559

[5]1 Taittraiya Upnisad, Ch.1 .anuvak 11.

[6] P. B. Sharma, Prof. P. K. Gupta, "Quality and

Productivity in Higher Technical and

Managerial Education - Challenges Ahead.

EME'93, proceedings, New Delhi.

[7] Steiner, John F. (1991). Industry Society

and Change, Hightstown, New Jersey:

Mc Graw-Hill.

[8] Ted, Cocheu, "Training for Quality

Improvement",Training and Development

Journal, January, 1989, pp 56-57.

[9] Schein, Edgar H. (1 980). Organisational

Psychology, Englewood Cliffs,

New Jersey: Prentice Hall.

192

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