A professor whose passion it is to study empowered organisations shares his findings........

Dr. Satyajit Majumdar  Professor, T A Pai Management Institute, Manipal 

Excerpts:

My talk is based on research experiences, grounded on empirical data based statements.

I'm trying to develop a theoretical framework on empowerment without concluding on best practices. I've seen that empowerment is essential for the growth of an organisation and is fundamental in people management. My journey into empowerment happened when I wanted to know why some organisations are successful and some are not. My statements are based on 2 of my Major case studies in entrepreneur managed organisations.

I'm proposing a framework which has 3 perspectives, first being the Leadership process,Purpose process and practices second one is and the third is Customer and Business goals.

In an empowered organisation, the Person who is at the helm of affairs will be having a vision, the vision is clarified by asking a lot of questions to themselves and others, when a conclusion is reached the vision is put into practice and communicated to the team. These leaders are very (self) confident with a strong belief in their success.

They are open to questions both from insiders and outsiders; they don't want consultation, more in the form of a reality check or validation on their practices. They don't accept whatever is available as best practice - they evolve their own best practices.

Ethics in personal and organisational life is very fundamental in empowered organisations; they are Honest and with a commitment to do good to the society, for example they don't indulge in bribing, will ensure they do not pollute the environment; they will influence the society to correct themselves. If their workers ride a cycle, then they should be riding it safely. Hence they spare no way in which they can influence society, in whatever small way they can influence all the people who come in contact with them.

These businesses are purpose driven organisations; Business goals are incidental or non existing. The first thing visible is the workplace management and the infrastructure; their workplace may not be a Jazzy place but a very simple, functional workplace. For e.g. you may not find a security at the gate, that's the physical communication of empowerment that they make even to a visitor. He does not need permission and is welcome.

When it comes to Relationships, respect to people as human beings is not just limited to the internal organisation, it extends beyond the organisation. You can see it even in the treatment of the truck drivers who just deliver goods and go away.

They believe in just paying right. Very strong in Discipline, and activities are value driven. The financial dealings are transparent. This is practiced not just by the leader but by all employees, promote self managed financial discipline, no questions asked when it comes to claims of TA or DA, fundamental trust in people is evident.

These companies are very Quality conscious, but it is less focused on product, more in practices. In other words the company practices trust based operations ‘Unless you trust people how can you expect to have quality products' is the mindset.

They work towards gradually achieving superiority in terms of best practices; empowerment induces innovation and developing ‘indigenous knowledge/technology'.

People are conscious about cost, in other words frugal management and no wastage. There are no fixed targets for cost cutting, but the team is constantly innovating. Cost cutting exists as a culture.

These businesses work with very high esteem, these are highly respectable companies. They Respect their customers and in turn earn respect from customers; this is a unique feature of empowered organisations. They participate in their customers developmental activities, whether it is product, problem solving or services. The paradox is that they are very customer friendly, strong in customer relationship but it is not subject to exploitation. They are ready to confront the customer if the deal is not fair.

Clarity in business purpose is very high and broader goals, less insistence on rigid numerical goals, collectively translated to organisational practices communicated to all.

Open communication on business results but no precise system for performance measurement.

How would they want to take their organisation to the next level? Not possessive about own leadership but concerned about culture. There is not much of concern about who will handle my organisation after me or will my successor follow my policies. They prefer to keep it open for people to decide, to the extent of keeping leadership open. No imposition of plans and programs, but allow people to think and plan.

Dr. Majumdar teaches entrepreneurship, entrepreneurial growth strategy and courses related to operations management including service operations at TAPMI Manipal.. He also advises companies on strategy planning and strategic business performance measurement. Prof. Majumdar's expertise is in small and medium organisation management. His research area is entrepreneurial growth strategy.

He was speaking at a Panel Discussion organized by Businessgyan and TASMAC  on the topic ‘Empowerment'. 

Compiled by Ms. Mangal D Karnad for Business Gyan.

Issue BG89 Aug 08

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