CRISIS MANAGEMENT & ITS RESULTANT EFFECT IN FINANCIAL
FUNCTION
Crisis management, prima-facie is nothing but the technique of facing and managing the crisis situations in the management of the organization. It could be in managing the crisis in production, marketing, personnel, FINANCE etc. The concept and objective of crisis management is “decisions have to be taken sensibly and instantly”
One of the main reasons for crisis in an organization is due to FAILURE in PLANNING, and the sources of crisis for crisis situations are due to mismanagement of organization’s resource i.e. FINANCE, human resources, and materials and of all these finance is of utmost important as it is the life blood of business. In many business organizations the top financial people (say CFO, CFC, Sr.Managers etc) are facing financial crisis and fighting the situations by finding quick but temporary solutions instead of finding integrated solutions and remedies to the financial crisis.
The financial crisis is of two types (a) short term crisis (b) long term crisis. The former is usually related to the operational modalities of the organization and is generally connected with “ funds management”. The latter on the contrary also known as strategic origin is of two types i.e. (a) genetic (b) brewed, the former arises as a result of situations born within the organization estimating the long-term requirement of funds for Capital Structure. The latter slowly emerging with the organization as a result of growth of Industry and products.
One of the main causes of short-term crisis is due to uneven cash flow created because of supplier driven problems –for instance the supplier of goods/raw materials suddenly imposes a stiff credit terms/squeeze, which was never anticipated by the Finance Manager. This will naturally end up with an unanticipated funds crunch. The prime supplier of materials, due to his own problems forces the organization to buy more than usual quantity of materials and insists on instant payment ignoring the credit terms, resulting in unexpected cash out flow. Customers also cause cash crunch to the organization. For instance an important& long standing customer, a customer of special significance fails to honour the financial commitments requesting the organization for extended credit terms all of a sudden, puts the organization into funds crunch and also the fact remains that the FM will find it extremely difficult to turn down the request of the customer.
Another major concern and cause of crisis is UNPLANNED capital outflows due to sudden turn of events in the organization. By way of unplanned modernization in technology. Diversification etc. will force diversion of funds meant for normal and usual operations, will lead to the funds crisis situation. Projects over run affecting cost and time will lead to increase in cost of funds, as the cost of borrowings is extremely high in such circumstances.
Genetic crisis is as mentioned earlier, born with the organization due to initial faulty financial planning and capital structure heavily based towards debt which will have to bear its own implications in on the cost of the capital, expectations of the share holders and on the debt service. The right planning would be that the cost of the permanent part of the working capital should be financed with long-term funds and any failure on the part of the FMs on this can cause technical insolvency to the organisation. Capital restructuring may also be done to rectify the technical differences and may need adjusteements in production, sales, recoveries and substitution of debt for equity.
Brewed crisis is a typical and long-term crisis and arises due to factors like industry competitors, Inter-company rivalry, and arrival of new entrants and threat of substitute products and will assume a massive proportion in the course of time. Yet another harmful effect is the increase of then new entrants causing rising capital cost, reduced market share, inter-company rivalry will result in increased market cost due to sales promotion measures and activities. It also forces the organization to expand the product range leading to cost increase with constraints for price revision.
It is all good for the customers. as their bargaining power increases, additional and favorable credit terms with delayed recoveries. This kind of quick change in the ratio will adversely affect the liquidity of the organization. The rule to be followed is that such crisis situations should be averted and anticipated than tackled. However limited the resources are, the FMs should learn to face the crisis situations. The degree of success is not in the number of times one falls into it or faces such situations but how quickly one recovers completely.
A true introspection on the matter will revel that nothing but failure in planning causes the crisis one after another.
DO NOT FAIL TO PLAN
UNLESS YOU HAVE PLAN
TO FAIL
J.KANNAN
Monday, June 26, 2006
MANAGEMENT OF THE COMMUNICATION
Effective and efficient communication is one of the vital implements in management. If you are into managing your organization effectively and efficiently, your communication must also be at par, as you are into managing your organization. Once the communication is effective and has no escapism and loopholes but to be positively result oriented, once the results are positively oriented, you on the right path of reaching your aim and achieving your set target and mission within the stipulated time frame.
Kindly make note that major part of our active hours are spent in communication, it could be oral, written, reading, listening etc. The best of communication originates from the best of listener (my personal observation). It is also necessarily to be noted that effective communication is of utmost important in every aspect of life. Therefore it will not be out of place to reiterate that the communication is the capacity coupled with capability of an individual in expressing and conveying the ideas, feelings, suggestions, opinions etc. to another individual or individuals to evolve a desired response. In business quite often, the mere act of sending messages, memorandum, letters, holding discussions or delivering a speech etc is considered to constitute a communication. All said and done an effective communication is brought about only if it evokes the desired response from the recipients.” Passing on the bucks” should not at all to be encouraged in communication- it is too easy a job any one and every one can do. Convey exactly what you expect the receiver of the communication to understand, comply with and perform. If this is not contained and conveyed in the communication it is very clear that the effectiveness in communication of the sender is poor/low.
Make your expression in communication sensible, understandable and graspable by the receiver. To make this work this way the individual ability, clear thinking and skill in expression are very important. In organizational communication there has to be a properly devised system in all forms of communications. Be it individual communication or organizational communication both are vital and interrelated. It will be very important to note, observations of almost of the problems in human relations will by and large reveal communication flaws and failures, it could be organizational, personal or a combination of both.
In the present scenario, business environment is changing day by day. The average working day becoming longer and people are in the move than ever before as business is competing in a global market place. It will not be wrong to mention that work has become an activity than a mere WORK IN A PLACE. You find people keep working in flights, trains, and hotel rooms and even at home. People are in contact with business world while traveling. Outsourcing is becoming more common in business more so in corporate services. Employees, customers, outside vendors etc are forming virtual corporations to complete projects within the assigned time. Consumers too are turning for technology as never before and are in the look out for convenience and comforts within their working and living place with remote and on line access. Bank accounts, voice messaging SMS, mobile contacts, access to on line shopping etc has become a matter of routine in everyday living with a view to gain time to use in their personal lives. With the fast changes continues to take place in the economy and business scenario, wireless based communications such as mobile phones, internet, on line services etc has now become a necessity and priority to cope up with the competitive trend all around. What’s behind all these developments and growth? COMMUNICATION. These are all as a result of the innovative development in communication and also of its importance in changing business patterns, which is necessarily and imperative to be put in application in business environment and living pattern.
In any business organization, effective communication serves several purposes and yield good benefits in numerous ways. It facilitates proper exchange of ideas, information as well as coincidence of minds. It plays a vital role in planning which needs lots of inputs like facts and figures, which is based on effective communication. It also plays a pivotal role in decision-making, organizational control, development and maintain of human relations and its high morale. Communication also plays an immense role in striving for excellence, creativity, sense of identity and responsibility leading to the desired functions.
Therefore it is essential on the part of the organizational management to own its responsibility of its shortcomings and eliminate the shortcomings and implement the communication system appropriate and adaptable to the circumstances, apart from understanding that the communication is the prime source of planning, implementing and keeping up the desired requirements of various projects and programmes for organizational development and growth.
“EFFECTIVE AND EFFICIENT COMMUNICATION IS FIRST AND REST ALL COMES NEXT.”
J.KANNAN
Effective and efficient communication is one of the vital implements in management. If you are into managing your organization effectively and efficiently, your communication must also be at par, as you are into managing your organization. Once the communication is effective and has no escapism and loopholes but to be positively result oriented, once the results are positively oriented, you on the right path of reaching your aim and achieving your set target and mission within the stipulated time frame.
Kindly make note that major part of our active hours are spent in communication, it could be oral, written, reading, listening etc. The best of communication originates from the best of listener (my personal observation). It is also necessarily to be noted that effective communication is of utmost important in every aspect of life. Therefore it will not be out of place to reiterate that the communication is the capacity coupled with capability of an individual in expressing and conveying the ideas, feelings, suggestions, opinions etc. to another individual or individuals to evolve a desired response. In business quite often, the mere act of sending messages, memorandum, letters, holding discussions or delivering a speech etc is considered to constitute a communication. All said and done an effective communication is brought about only if it evokes the desired response from the recipients.” Passing on the bucks” should not at all to be encouraged in communication- it is too easy a job any one and every one can do. Convey exactly what you expect the receiver of the communication to understand, comply with and perform. If this is not contained and conveyed in the communication it is very clear that the effectiveness in communication of the sender is poor/low.
Make your expression in communication sensible, understandable and graspable by the receiver. To make this work this way the individual ability, clear thinking and skill in expression are very important. In organizational communication there has to be a properly devised system in all forms of communications. Be it individual communication or organizational communication both are vital and interrelated. It will be very important to note, observations of almost of the problems in human relations will by and large reveal communication flaws and failures, it could be organizational, personal or a combination of both.
In the present scenario, business environment is changing day by day. The average working day becoming longer and people are in the move than ever before as business is competing in a global market place. It will not be wrong to mention that work has become an activity than a mere WORK IN A PLACE. You find people keep working in flights, trains, and hotel rooms and even at home. People are in contact with business world while traveling. Outsourcing is becoming more common in business more so in corporate services. Employees, customers, outside vendors etc are forming virtual corporations to complete projects within the assigned time. Consumers too are turning for technology as never before and are in the look out for convenience and comforts within their working and living place with remote and on line access. Bank accounts, voice messaging SMS, mobile contacts, access to on line shopping etc has become a matter of routine in everyday living with a view to gain time to use in their personal lives. With the fast changes continues to take place in the economy and business scenario, wireless based communications such as mobile phones, internet, on line services etc has now become a necessity and priority to cope up with the competitive trend all around. What’s behind all these developments and growth? COMMUNICATION. These are all as a result of the innovative development in communication and also of its importance in changing business patterns, which is necessarily and imperative to be put in application in business environment and living pattern.
In any business organization, effective communication serves several purposes and yield good benefits in numerous ways. It facilitates proper exchange of ideas, information as well as coincidence of minds. It plays a vital role in planning which needs lots of inputs like facts and figures, which is based on effective communication. It also plays a pivotal role in decision-making, organizational control, development and maintain of human relations and its high morale. Communication also plays an immense role in striving for excellence, creativity, sense of identity and responsibility leading to the desired functions.
Therefore it is essential on the part of the organizational management to own its responsibility of its shortcomings and eliminate the shortcomings and implement the communication system appropriate and adaptable to the circumstances, apart from understanding that the communication is the prime source of planning, implementing and keeping up the desired requirements of various projects and programmes for organizational development and growth.
“EFFECTIVE AND EFFICIENT COMMUNICATION IS FIRST AND REST ALL COMES NEXT.”
J.KANNAN
Thursday, June 08, 2006
WHO WAS HE THE GREAT? READ AND FINDOUT
An incarnation of Goddess of strength and power, personification of dynamism and fearlessness arose from the experience of the immortality of the soul. Flaming words were the vibrations of his immortal soul. Powerful words and teachings like and similar to God become words as there is no end to his power reserve of his words.
His stupendous and marvelous works, while reading thrills like an electric vibration. A personality with puissant knowledge and immeasurable wisdom. He does not know at all what FEAR is. The fierce was not fierce and terrible was not terrible to him. His massive intellect was at par with his burning enthusiasm for the welfare of the poor. Had luminous and passionate vision to meet God face to face. This quest and thirst for God got him the breakthrough and made him a great monk.
At the age of 30, he stood as an intellectual giant and rose to speak at Chicago, USA, at the World’s parliament of religions. Sense of Indian righteousness flowed through his lips. Profundity of the message he delivered and the impact it created on the world was staggering.
An embodiment of energy with vibrations and was known as Cyclonic monk, Warrior monk, Indian Napoleon etc. for his dynamism. The triumphant march by him all over the country demonstrated to the people that Hinduism had regained its vitality and force. He breathed life into our moribund religion by forcefully explaining the strength giving ideas and ideals. He further explained and emphasized that “all power is within us”. Purity, unselfishness and sincere love for a holy and serene cause will bring out that power.
He further reiterated that “physical weakness is the cause of the human miseries” to some extend. He further re-emphasized that, this is not the time for us to weep, as we had enough of weeping, and this is not the time to remain soft. What our country now needs are muscles of iron, nerves of steel and gigantic will. Have faith in you and stand erect on that faith. Theme of his message was “arise, awake and STOP NOT till the goal is achieved.
It was indeed a great task and daring adventure to bring solidarity in the hopelessly divided Hindu fold. I t was of course of a matter of first blasting away the boulders of ignorance by the sheer force of his dynamic personality and every single word emanated from the granary of his spiritual experience. He symbolized India’s aspirations and vindicated our manhood in the eyes of the world. Pride, a self confidence swelled in the breast of the people and the enthusiasm swept the nation like a wild forest fire. The mental shackles were broken and India was made free spiritually.
And who could be this great personality responsible for all these? No need to guess. It is none other than the Great SRI SWAMI VIVEKANANDA.
My salutations added with humble reverence to this great person.
J.KANNAN
An incarnation of Goddess of strength and power, personification of dynamism and fearlessness arose from the experience of the immortality of the soul. Flaming words were the vibrations of his immortal soul. Powerful words and teachings like and similar to God become words as there is no end to his power reserve of his words.
His stupendous and marvelous works, while reading thrills like an electric vibration. A personality with puissant knowledge and immeasurable wisdom. He does not know at all what FEAR is. The fierce was not fierce and terrible was not terrible to him. His massive intellect was at par with his burning enthusiasm for the welfare of the poor. Had luminous and passionate vision to meet God face to face. This quest and thirst for God got him the breakthrough and made him a great monk.
At the age of 30, he stood as an intellectual giant and rose to speak at Chicago, USA, at the World’s parliament of religions. Sense of Indian righteousness flowed through his lips. Profundity of the message he delivered and the impact it created on the world was staggering.
An embodiment of energy with vibrations and was known as Cyclonic monk, Warrior monk, Indian Napoleon etc. for his dynamism. The triumphant march by him all over the country demonstrated to the people that Hinduism had regained its vitality and force. He breathed life into our moribund religion by forcefully explaining the strength giving ideas and ideals. He further explained and emphasized that “all power is within us”. Purity, unselfishness and sincere love for a holy and serene cause will bring out that power.
He further reiterated that “physical weakness is the cause of the human miseries” to some extend. He further re-emphasized that, this is not the time for us to weep, as we had enough of weeping, and this is not the time to remain soft. What our country now needs are muscles of iron, nerves of steel and gigantic will. Have faith in you and stand erect on that faith. Theme of his message was “arise, awake and STOP NOT till the goal is achieved.
It was indeed a great task and daring adventure to bring solidarity in the hopelessly divided Hindu fold. I t was of course of a matter of first blasting away the boulders of ignorance by the sheer force of his dynamic personality and every single word emanated from the granary of his spiritual experience. He symbolized India’s aspirations and vindicated our manhood in the eyes of the world. Pride, a self confidence swelled in the breast of the people and the enthusiasm swept the nation like a wild forest fire. The mental shackles were broken and India was made free spiritually.
And who could be this great personality responsible for all these? No need to guess. It is none other than the Great SRI SWAMI VIVEKANANDA.
My salutations added with humble reverence to this great person.
J.KANNAN
Wednesday, June 07, 2006
VALUES OF RIGHT THINKING AND LIVING FOR PEACE AND
ALLROUND DEVELOPMENT IN LIFE.
Life is the prime source of all things and thinking and is required to be made divine through and through, therefore the fundamental problems of life can be solved only when we are able to discover our hidden divinity, the essence of life. The image of divinity of life is a projection of the thought in spite of diversity of thoughts which is natural and remediable. The erosion of the positive life building value is a major set back facing the modern society. Today’s modern person by and large is irreverent and casual on deeper questions of quality of life and as a result is not exposed to sane values. The healthy and ethical attitude of life can be cultivated; stability, integrity& loyalty of life can be actualized under different situations, if only the main objective of healthy scheme of way of living is sincerely and earnestly pursued. There is an emergency need for one and all to develop holistic view of life with realistic implementation and it is believed that noble and humble sense of understanding and realization may invoke interest in these directions for the seekers of peace, prosperity and happiness. Do not try to direct ones perspective to reach heaven but direct it to reach the supreme. Mind is the apparent cause and effect to reach your life’s aim... The question comes where is your mind? It is scattered all over the place in the world excepting where it is suppose to be. Bring it back inside oneself with tranquility and experience the greatness and happiness of supreme that lives in your heart rather than being outside of yourself. Mind you, God is the nearest object to you than you yourself.
As long as humanity exists, pursuit of ethical values for living and quest for attaining the ultimate reality should be the matter of manifestation for one and all and it should be imbibed in the right perspective and in the right manner. One should make life a ceaseless striving for higher degrees of peace, happiness and knowledge which can make life meaningful, harmonious and peaceful. This is what is the world is very much in need of and looking for, indeed.
While countries across the globe have their own culture and heritage, India has an ancient culture, rich heritage and spiritual wealth unmatched by any other culture in the world. Value system is based on and aims at direct realization of the ultimate reality, holds great assurance and promise for the future benefit, betterment and well being of the humanity. Let us not fail in our duty to express our bountiful thanks, gratitude, reverence and benevolence to all our ancient great men, instrumental and cause of magnanimous knowledge and wisdom given to this world.
J.KANNAN
ALLROUND DEVELOPMENT IN LIFE.
Life is the prime source of all things and thinking and is required to be made divine through and through, therefore the fundamental problems of life can be solved only when we are able to discover our hidden divinity, the essence of life. The image of divinity of life is a projection of the thought in spite of diversity of thoughts which is natural and remediable. The erosion of the positive life building value is a major set back facing the modern society. Today’s modern person by and large is irreverent and casual on deeper questions of quality of life and as a result is not exposed to sane values. The healthy and ethical attitude of life can be cultivated; stability, integrity& loyalty of life can be actualized under different situations, if only the main objective of healthy scheme of way of living is sincerely and earnestly pursued. There is an emergency need for one and all to develop holistic view of life with realistic implementation and it is believed that noble and humble sense of understanding and realization may invoke interest in these directions for the seekers of peace, prosperity and happiness. Do not try to direct ones perspective to reach heaven but direct it to reach the supreme. Mind is the apparent cause and effect to reach your life’s aim... The question comes where is your mind? It is scattered all over the place in the world excepting where it is suppose to be. Bring it back inside oneself with tranquility and experience the greatness and happiness of supreme that lives in your heart rather than being outside of yourself. Mind you, God is the nearest object to you than you yourself.
As long as humanity exists, pursuit of ethical values for living and quest for attaining the ultimate reality should be the matter of manifestation for one and all and it should be imbibed in the right perspective and in the right manner. One should make life a ceaseless striving for higher degrees of peace, happiness and knowledge which can make life meaningful, harmonious and peaceful. This is what is the world is very much in need of and looking for, indeed.
While countries across the globe have their own culture and heritage, India has an ancient culture, rich heritage and spiritual wealth unmatched by any other culture in the world. Value system is based on and aims at direct realization of the ultimate reality, holds great assurance and promise for the future benefit, betterment and well being of the humanity. Let us not fail in our duty to express our bountiful thanks, gratitude, reverence and benevolence to all our ancient great men, instrumental and cause of magnanimous knowledge and wisdom given to this world.
J.KANNAN
Monday, June 05, 2006
JAGADGURU ADI SANKARA (THE WORLD’S GREAT TEACHER) AND ALEXANDER THE GREAT (THE GREAT EMPEROR)
JAGADGURU ADI SANKARA (THE WORLD’S GREAT TEACHER) AND
ALEXANDER THE GREAT (THE GREAT EMPEROR)
History provides the details of two totally different personalities (1) a Divine , Benevolent personality (Adi Sanakara) & (2) an outstanding personality with triumph and tragedy (Alexander the great) yet with contrast of world of difference.
Brief: -
JAGADGURU SRI ADI SANKARA
Born in Kalady in Kerala (now known as God’s own country) 788 CE in an orthodox Brahmin family to Sri Shiva guru (father) and Aryamba (mother). Parents under went penance at Vadakkumnathan Temple in Trichur, Kerala and as a result the Lord Vadakkumnathan appeared before the couple and blessed the couple for a divine child who would but be short lived- and in gratitude to the God, the child was named as Sankara (One of the many names to Lord Parameswara) The prefix Adi means Prime, Original & First was conferred on him after mastering all four Vedas at the tender age of 8 and later known and called as Jagadguru (World Teacher). Jagadguru Adi sankara lived only just 32 years, 6 months and 10 days. During this brief span he did the useful and purposeful work of several long lives. His powerful mind, sharp intellect, rich personality, ceaseless activity, stupendous achievements were so much so, that he left an indelible impression on the hearts, minds and thoughts of not only his contemporaries but also of succeeding generations with evidence. He has to his credit numerous divine and religious writings of extremely valuable in nature in the form of verses and poems, which are being used today by the people and will continue to be used by people forever.
As a matter of fact, his name, fame, profounding thoughts and amazing organizing power influenced the lives and work of many and will continue for many new generations to come, and these will remain immortal even beyond the existence of universe (if at all happens) As already mentioned earlier, Adi sankara was a son of a humble and pious Brahmin and did not posses any worldly wealth or power worth to mention. He was a monarch of mind, thought and spirit of man and too subtle for mortal eyes. He was imbued with the divine compassion, which exerts in the direction of providing enlightenment to the humanity and blossomed as a moral leader, a mentor of mankind and the spiritual ruler of the world. He exemplified the success of spiritual power. Though transient, remained a world teacher all times. He remained excellent in leadership, spirituality, management ideas and inspirational thoughts apart from being an ocean of compassion and magnanimous teacher.
He has also established four Madhas (Institutes of religious order) at: -
Sringeri (Karnataka) South
Dwaraka (Gujarat) West
Puri (Orissa) East
Jyothirmath (Uttranchal) North..........................................
For continuing his work to complete his mission.
Attained Sarvajna pitha in Kashmir and shortly after that attained Mahasamadhi (pre-determined and unperturbed departure of soul from the body) at Kedarnath in 820 CE.
It is also said and known that Adi Sankara has attained Mahasamadhi at Vadakkumnathan Temple the place of his origin. With short and light life attained long and heavy ideologies and religious creations in the form of hymns, versus and literature to understand the values and realities of human life and living . An erasable accredit to the whole universe and its living being.................................for ever.
ALEXANDER THE GREAT
Alexander was born BC356 in Pella, ancient capital of Macedonia to King Phillip II (father) and princess of Epirus later known as Olympias (mother) and lived for just 32 years. His relation to triumph is obvious. What is not known widely is how tragic was his life full of. Being the son of a king, he was able, strong, powerful and thorough. . Success and its impact were ephemeral for him. Had excellent motivating force behind him. He was ignited and fired by the ambition to become the temporal leader of people and ruler of world. Alexander exemplified the success of physical power and he became world conqueror for a brief period.
Aristotle was his teacher who trained him in rhetoric, and literature and stimulated his interest in science, medicine and philosophy
His father was assassinated in BC336 when Alexander was too young and took over the regime himself, which was in a very bad shape. He grew up to deal with disputes, revolts and rivals. He killed many people including his friends who were instrumental in saving his own life. Most of Alexander’s life was spent with problems after problem, miseries after miseries to end with mysteries.
He inherited from his father King Phillip II, the best military formation of his time he was the first great conqueror to reach Greece, Egypt, and Asia and up to western India from victory to victory and triumph to triumph, and created and empire.
After playing and doing all havoc, with people and country, near the point of his death, he began to believe he was a God and began telling his people that he was descend from Hercules, minted coins embossing him and Hercules in the coins-His mother Olympus was also instrumental in making him believe to be God and took control of the most of the known world and made people believe him to be God like and invincible.
He fell sick at a splendid entertainment party at Babylon, he was over drunk and yet after filling a huge beacon downed it a gulp and remained in bed for ten days with acute pain, sufferings and fever. Indeed an unerasable discredit to all his countrymen and other living being.
Last question to Alexander:.......................
To whom do you leave the kingdom?
Last answer by Alexander:
To the Best & Strongest
And then passed away on 10th June, BC 323 leaving his entire kingdom in pin drop silence.
Please know what to learn from above................
All that begins well only will end well.
J.KANNAN, M.Com, FIATA
"WE DON'T THINK TO BREATHE
WE BREATHE TO THINK"
Thursday, June 01, 2006
MBA Vs MBA (Is it Master of Business Administration or Master of Buffoon’s
Administration)
Are we heading towards a paradoxical tragedy and disaster in the name of MBA? Come on find solutions and prevent the happening of tragedy and disaster on a war footing.
Those were the days, when I trace back to my memory lane the qualification MBA had its accreditation, merit, name, fame, academic reputation, strength and status unlike the present scenario. It was indeed difficult to obtain the MBA qualification unless a student puts earnest efforts and serious studies to sit for entrance examinations, qualify in the entrance examination to get into effective MBA study. Those days there were very less number of business schools and imparting professionally value added MBA education added with, covering all parameters of management syllabus and applied management skills without compromises in texting and testing the students.
The present day’s situation is totally different to be indifferent for business schools. There are more number of business schools offering MBA education and equally more number of students seeking enrolment in these schools and at the end of the academic session walks out with their graduate certificate. As a matter of fact business education has now turned out to be a fortune and big business for the business schools and its faculty…Money is everything Honey has become the concept and policy of the many business schools. Many business schools imparting MBA education has dispensed with entrance examination and if you have money, you can have an MBA added to your name. Then again the currency you are able to manage will determine the country of MBA. Surprisingly and hardly any evaluation of the impact of business schools on either their graduates or professional management exists. A good number of business schools are ineffective with reference to the mode of study, substance of study, code of conduct and this will be evident when co-related with career success most of their turned out graduates. This further indicates how the business school prepares their students for the future. There is also hardly any evidence to establish that business schools research is influential in management development, skill and practice by its graduates. There are several occasions, MBAs miserably failed to manage not only crisis in the organization but also various other related issues as they lack in knowledge and wisdom as a result of inadequate imparting of MBA education.
It has also been observed by the articulate critics of business school, that the curriculum and syllabus is focused on analytics with hardly any emphasize on problem finding and solving. Over emphasize on analysis at the cost of integration and developing wisdom, leadership, interpersonal skills and teaching method, which forms the core elements of business management.
In a recent observation few of the most accomplished CEOs as quoted by the people most often, when asked, replied – None of them had business school degree and have still achieved greater heights and goals in their business. In fact Mr. Galvin of Motorola and Mr. Bill Gates of Microsoft did not even complete college. 40% of US CEOs as mentioned in an article “Why CEOs FAIL” had MBAs. The point of the observation is, MBA neither guarantees business success nor prevents business failures. It may also be noted that most of the best of business ideas in management for the past over a decade or so did not originate from business schools. Business schools considers themselves as scholarly communities through their academic journals that are totally divorced from the challenges of day to day management. While analyzing the actual effects of business schools on two counts of most relevance and importance (1) careers of their graduates (2) the knowledge they posses, the scenarios is quite bleak, There is hardly any evidence and scope to that mastery of knowledge acquired in business schools enhances the student’s career. Who has to be blamed? Of course the business schools for their ineffective coaching and teaching of the students.
The latest trend is that some of the leading business schools and institutes are entering into agreement/MOU to co-sign the MBA graduate certificate for a price, thereby leasing their institutional logo and image to the sprouting and mushroom new schools/existing low profile schools.
The solution to the problem is only by way of incorporating Regulatory authorities with stringent rules and governing procedures covering existing business schools and extremely stringent guidelines for the fresh applicants intending to open new business schools. The Regulatory authority has to ensure by personal verification and inspection that required infrastructure, systems and faculty staff and members are in its proper and appropriate place before grating permission to run the business schools. The Regulatory authorities should also consist of various committees and governing councils covering all aspects of business management consisting of experts in management field, management thinkers and management faculty under the direct control of Educational department of respective countries with independent panels with ample scope, power and authority for monitoring the activates of the committees as well as the business schools. After all the education should have its right value and standard and at the end of the academic term student should be enriched with knowledge-otherwise what’s the use claiming to be an MBA It is very essential to measure the aptitude, attitude, skill and tolerance of the aspirants before they are enrolled to business schools-Do not allow the schools to use money as a yardstick for entrance and enrolment as MBA students
Let all of us tray and put in earnest efforts to bring out Masters in Business Administration instead of Masters in Buffoons Administration. This article does not have any malafide intentions to harm/hurt any one’s (whosoever it may be) feeling but written with genuine interest for betterment of business school’s results and products, hence being presented with out any prejudice whatsoever.
J.KANNAN
Administration)
Are we heading towards a paradoxical tragedy and disaster in the name of MBA? Come on find solutions and prevent the happening of tragedy and disaster on a war footing.
Those were the days, when I trace back to my memory lane the qualification MBA had its accreditation, merit, name, fame, academic reputation, strength and status unlike the present scenario. It was indeed difficult to obtain the MBA qualification unless a student puts earnest efforts and serious studies to sit for entrance examinations, qualify in the entrance examination to get into effective MBA study. Those days there were very less number of business schools and imparting professionally value added MBA education added with, covering all parameters of management syllabus and applied management skills without compromises in texting and testing the students.
The present day’s situation is totally different to be indifferent for business schools. There are more number of business schools offering MBA education and equally more number of students seeking enrolment in these schools and at the end of the academic session walks out with their graduate certificate. As a matter of fact business education has now turned out to be a fortune and big business for the business schools and its faculty…Money is everything Honey has become the concept and policy of the many business schools. Many business schools imparting MBA education has dispensed with entrance examination and if you have money, you can have an MBA added to your name. Then again the currency you are able to manage will determine the country of MBA. Surprisingly and hardly any evaluation of the impact of business schools on either their graduates or professional management exists. A good number of business schools are ineffective with reference to the mode of study, substance of study, code of conduct and this will be evident when co-related with career success most of their turned out graduates. This further indicates how the business school prepares their students for the future. There is also hardly any evidence to establish that business schools research is influential in management development, skill and practice by its graduates. There are several occasions, MBAs miserably failed to manage not only crisis in the organization but also various other related issues as they lack in knowledge and wisdom as a result of inadequate imparting of MBA education.
It has also been observed by the articulate critics of business school, that the curriculum and syllabus is focused on analytics with hardly any emphasize on problem finding and solving. Over emphasize on analysis at the cost of integration and developing wisdom, leadership, interpersonal skills and teaching method, which forms the core elements of business management.
In a recent observation few of the most accomplished CEOs as quoted by the people most often, when asked, replied – None of them had business school degree and have still achieved greater heights and goals in their business. In fact Mr. Galvin of Motorola and Mr. Bill Gates of Microsoft did not even complete college. 40% of US CEOs as mentioned in an article “Why CEOs FAIL” had MBAs. The point of the observation is, MBA neither guarantees business success nor prevents business failures. It may also be noted that most of the best of business ideas in management for the past over a decade or so did not originate from business schools. Business schools considers themselves as scholarly communities through their academic journals that are totally divorced from the challenges of day to day management. While analyzing the actual effects of business schools on two counts of most relevance and importance (1) careers of their graduates (2) the knowledge they posses, the scenarios is quite bleak, There is hardly any evidence and scope to that mastery of knowledge acquired in business schools enhances the student’s career. Who has to be blamed? Of course the business schools for their ineffective coaching and teaching of the students.
The latest trend is that some of the leading business schools and institutes are entering into agreement/MOU to co-sign the MBA graduate certificate for a price, thereby leasing their institutional logo and image to the sprouting and mushroom new schools/existing low profile schools.
The solution to the problem is only by way of incorporating Regulatory authorities with stringent rules and governing procedures covering existing business schools and extremely stringent guidelines for the fresh applicants intending to open new business schools. The Regulatory authority has to ensure by personal verification and inspection that required infrastructure, systems and faculty staff and members are in its proper and appropriate place before grating permission to run the business schools. The Regulatory authorities should also consist of various committees and governing councils covering all aspects of business management consisting of experts in management field, management thinkers and management faculty under the direct control of Educational department of respective countries with independent panels with ample scope, power and authority for monitoring the activates of the committees as well as the business schools. After all the education should have its right value and standard and at the end of the academic term student should be enriched with knowledge-otherwise what’s the use claiming to be an MBA It is very essential to measure the aptitude, attitude, skill and tolerance of the aspirants before they are enrolled to business schools-Do not allow the schools to use money as a yardstick for entrance and enrolment as MBA students
Let all of us tray and put in earnest efforts to bring out Masters in Business Administration instead of Masters in Buffoons Administration. This article does not have any malafide intentions to harm/hurt any one’s (whosoever it may be) feeling but written with genuine interest for betterment of business school’s results and products, hence being presented with out any prejudice whatsoever.
J.KANNAN
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