Friday, August 8, 2008

Assessment and Development Centres Notes for MHRDM at JBIMS Mumbai University

Assessment and Development Centres

Research demonstrates that that there is no substitute for objectively observing and systematically measuring how people actually perform "on the ground". A well designed Assessment Centre is the most effective tool available for assessing individuals in both individual and group based environments for selection or development.
We provide a complete range of Assessment Centre design and delivery services, from competency matrix design through assessor training, exercise design and the provision of psychometric testing. Even if an organisation has no prior experience of this most effective assessment method we can design and manage the whole process from scratch using either our own established procedures and assessment tools, or designing entirely new and highly organisationally relevant systems and exercises.
From the most basic unassigned role exercises to highly complex assigned role problem solving and decision making exercises for senior managers/directors, we apply psychometric rigour to every centre we provide to ensure it is highly accurate, stable and job relevant.
There is no such thing a 'standard' Assessment or Development Centre - some can last as little as half a day, while others can go on for three days or more. However, all demand considerable commitment from the host organisation. If you consider that an Assessment or Development Centre may be appropriate for your needs please contact us directly for advice.
What is an Assessment/Development Centre?
The term assessment centre does not refer to a physical place, instead it describes an approach. Traditionally an assessment centre consisted of a suite of exercises designed to assess a set of personal characteristics, it was seen as a rather formal process where the individuals being assessed had the results fed back to them in the context of a simple yes/no selection decision. However, recently we have seen a definite shift in thinking away from this traditional view of an assessment centre to one which stresses the developmental aspect of assessment. A consequence of this is that today it is very rare to come across an assessment centre which does not have at least some developmental aspect to it, increasingly assessment centres are stressing a collaborative approach which involves the individual actively participating in the process rather than being a passive recipient of it. In some cases we can even find assessment centres that are so developmental in their approach that most of the assessment work done is carried out by the participants themselves and the major function of the centre is to provide the participants with feedback that is as much developmental as judgmental in nature.
Assessment centres typically involve the participants completing a range of exercises which simulate the activities carried out in the target job. Various combinations of these exercises and sometimes other assessment methods like psychometric testing and interviews are used to assess particular competencies in individuals. The theory behind this is that if one wishes to predict future job performance then the best way of doing this is to get the individual to carry out a set of tasks which accurately sample those required in the job and are as similar to them as possible. The particular competencies used will depend upon the target job but one will often find competencies such as relating to people; resistance to stress; planning and organising; motivation; adaptability and flexibility; problem solving; leadership; communication; decision making and initiative. There are numerous possible competencies and the ones which are relevant to a particular job are determined through job analysis.
The fact that a set of exercises is used demonstrates one crucial characteristic of an assessment centre - namely that it is behaviour that is being observed and measured. This represents a significant departure from many traditional selection approaches which rely on the observer or selector attempting to infer personal characteristics from behaviour based upon subjective judgement and usually precious little evidence. This approach is rendered unfair and inaccurate by the subjective whims and biases of the selector and in many cases produces a selection decision based on a freewheeling social interaction after which a decision was made as whether the individual's 'face fit' with the organisation.
A History of Assessment Centres
The use of Assessment Centres in The UK
We can trace the existence of assessment centres back to 1942 when they were used by War Office Selection Boards (Anstey, 1989). Their introduction stemmed from the fact that the existing system was resulting in a large proportion of those officers it had predicted would be successful being 'returned to unit' as unsuitable. This is hardly surprising when one considers that the system as it was relied on interviewing to select officers and had as selection criteria things like social and educational background. Even the criteria of 'achievement in the ranks' which one might imagine as being more job relevant included things like 'exceptional smartness'. No wonder unsuitable people were chosen as officers and potentially excellent officers overlooked. The assessment centre approach subsequently adopted was an attempt to accurately elicit the types of behaviour that an officer was required to display in order to be successful in their job. The tasks included leaderless group exercises, selection tests and individual interviews by a senior officer, junior officer and psychiatrist respectively. This new system resulted in a substantial drop in the proportion of officers being 'returned to unit' as unfit for duty. During the post war years this system was so successful that it was introduced for selection to the Civil Service and a variation of it is still used for officer selection in the armed forces to this day.
The use of Assessment Centres in The US
In the United States assessment centres were initially used by the Office of Strategic Studies to select spies during the Second World War. Subsequently the use of assessment centres was taken up by the private sector especially the giant American Telephone and Telegraph Company (AT&T) which began using assessment centres for management selection in 1956 as well as Standard Oil Ohio, IBM, Sears and General Electric. There were differences between the US and UK approaches which largely stemmed from the original background to their introduction. In the UK a greater emphasis was placed on group exercises with an appointed leader, group discussions and long written exercises whereas in the US more emphasis was placed on in-tray exercises, leaderless group exercises with assigned roles and two person role plays (Woodruffe, 1993).
The use of Assessment Centres in Industry
Modern assessment centres in the UK tend now to follow the American format although there are still some which have their roots in the public sector Civil Service model. The growth of the use of assessment centres in the UK has been rapid. In 1986 Robertson and Makin reported that slightly more than one quarter of organisations who employed 500 people or more used assessment centres, in 1989 Mabey reported that more than one third of companies employing over 1000 people used them while most recently Boyle et al (1993) reported that 45% of organisations who responded used assessment centres and that their use was more prevalent in the private sector and by larger organisations. We have also seen a rise in the use of what we could term 'pure' development centres. The main reasons behind this have been the realisation that centres that have an element of selection decision making to them can have a demoralising effect on those individuals who have been deemed unsuccessful. Organisations have also come to realise that to be competitive they must constantly invest in the development of their staff in order to enable them to respond effectively to an increasingly uncertain marketplace. This has meant that rather than selecting new employees organisations are now investing more in their existing workforce. Traditionally companies who wished to train their staff would send them on a training course external to the organisation, indeed many still do, but there has been an increasing emphasis placed on delivering training that is relevant to the organisation's needs and business objectives. A development centre run as part of an integrated training strategy is an excellent way of ensuring that training is carried out in a context of organisational relevance. A final reason for the growth in use of development centres has been the widespread adoption of the idea of behavioural competencies in the human resource field, because development centres are designed around the job simulation format which requires the participant to actively do something they are a naturally effective way of assessing competencies in individuals.
What are the Differences Between Assessment and Development Centres?
The type of centre can vary between the traditional assessment centre used purely for selection to the more modern development centre which involves self-assessment and whose primary purpose is development. One might ask the question 'Why group assessment and development centres together if they have different purposes?' The answer to that question is threefold. Firstly, they both involve assessment and it is only the end use of the information obtained which is different i.e. one for selection and one for development; secondly, it is impossible to draw a line between assessment and development centres because all centres, be they for assessment or development naturally lie somewhere on a continuum somewhere between the two extremes; thirdly most assessment centres involve at least some development and most development centres involve at least some assessment. This means that it is very rare to find a centre devoted to pure assessment or pure development. The issue is further confused by the political considerations one must take into account when running such a centre, it is common practice for an assessment centre with internal candidates to be referred to as a development centre because of the negative implications associated with assessment.
It is easier to think about assessment centres as being equally to do with selection and development because a degree of assessment goes on in both. Development centres grew out a liberalisation of thinking about assessment centres and it is a historical quirk that while assessment centres were once used purely for selection and have evolved to have a more developmental flavour the language used to describe them has not. Another problem with using the assessment - development dichotomy is that at the very least it causes us to infer that little or no assessment goes in development centres. While you will hear centres being called assessment or development centres remember that assessment goes on in both and so to some extent at least they are both assessment centres. The end result of this is that it is not possible to talk about assessment or development centres in any but the most general terms. It is more useful to talk about the constituent parts and general processes involved in each. In these terms we can identify a number of differences between assessment and development centres that one might typically find:
Assessment centres usually -
· have a pass/fail criteria
· are geared towards filing a job vacancy
· address an immediate organisational need
· have fewer assessors and more participants
· involve line managers as assessors
· have less emphasis placed on self-assessment
· focus on what the candidate can do now
· are geared to meet the needs of the organisation
· assign the role of judge to assessors
· place emphasis on selection with little or no developmental feedback and follow up
· give feedback at a later date
· involve the organisation having control over the information obtained
· have very little pre-centre briefing
· tend to be used with external candidates
Development centres usually -
· do not have a pass/fail criteria
· are geared towards developing the individual
· address a longer term need
· have a 1:1 ratio of assessor to participant
· do not have line managers as assessors
· have a greater emphasis placed on self-assessment
· focus on potential
· are geared to meet needs of the individual as well as the organisation
· assign the role of facilitator to assessors
· place emphasis on developmental feedback and follow up with little or no selection function
· give feedback immediately
· involve the individual having control over the information obtained
· have a substantial pre-centre briefing
tend to be used with internal candidates

Development Center - Individual Development Reports

Development Center - Individual Development Reports

The Role of the Learner

Definition: Learning is a continuous process based on personal motivation to construct meaningful experiences. These experiences will facilitate understanding and competency in addressing situations in which the outcome is not fully known.

What is an Effective Learner?

§ Demonstrates Self Motivation
§ Sets Standards and Holds Themselves Accountable
§ Exhibit Natural Curiosity
§ Listens Carefully
§ Is willing to Take Risk
§ Invests Time & Energy
§ Acknowledges What is Not Known
§ Draws from Different Sources

How to use the Enclosed Report?

§ Read the entire Report carefully
§ Highlight Ideas that can quickly be put to use
§ Do Not Try too many ideas at once
§ Arrange A Time And Place to meet with your Manager / Coach
§ Have an One- On –One Conversation
§ Focus on Performance Improvement
§ Describe Behaviors That Need Changing
§ Reemphasize Your Strengths
§ Develop An Action Plan
§ Establish A Follow – Up Date to Review Progress

Simulations
Projective Technique

Through these exercises, participants can express their Self by projecting themselves in different situations through sentence completion. It also contains an exercise to stimulate participants to open out and present themselves symbolically through pictures, graphs, charts etc. in the form of a presentation to the observers on “Self”.

Case Study

This intensive exercise is a lay out of the challenges being faced by an organization. It gives the current position of the organization on various issues ranging from HR issues to survival in a competitive environment. Participants are expected to do the SWOT analysis of the organization and give their detailed plans on “The Way Forward / Turnaround Plan” for the organization.

Role Play

In this exercise the participant’s takes on a typical role from an organizational set up. They promote their respective ideas and interact to arrive at a common framework wherein organizational goals rise above the individual goals.

Mini Dairy Project / Binodia

The participants study the feasibility of a given project and provide recommendations on how the project can be pursued. The teams are split into two and one team debates for and the other against the Project being taken up.

The Binodia case study is to study a newly explored country and find opportunities of business for their organization in this country.

Leadership and Decision Making Styles

In this exercise participants will be briefed about the five different decision making styles. They will work individually on four different cases and will choose the decision style they think appropriate for each of the cases. Next the syndicates are formed and each syndicate will discuss to arrive at consensus on the Leadership / Decision Making Style.

Group Feedback
Each candidate gives a candid feedback on the strengths and areas for improvement to every other team member.

Entrepreneurship

“Ability to see the business and improvement opportunity, sizing them, and converting them into workable propositions”

Overall Indication and Observations on this competency:

Basic Developing Competent Mastery Role Model
1 2 3 4 5 6 7 8 9 10

· Finds different business opportunities and opportunities for improvement in familiar and unfamiliar situations· Ambitious, there is desire in him to excel· Makes recommendations for converting opportunities in to workable· Understands the business environment fairly well· Needs to improve the financial implications· Demonstrates need to influence others · Demonstrates initiative and drive

Strategic Thinking and Implementation

“Ability and drive to create organization direction in terms of vision, mission, goals, strategies, values”

Overall Indication and Observations on this competency:
Basic Developing Competent Mastery Role Model
1 2 3 4 5 6 7 8 9 10

· Identifies some of the business variables, analyses them· Tries to make projections · Takes overview considering multiple factors· Considers short term and mid term perspectives· Can create organization direction, however needs support to analyse· Works out strategies for growth· Can go beyond specialization · Makes financial implications, needs support to get greater understanding · Considers details

Innovative thinking and application

“Ability to find variety of options both divergent and convergent and making them to work”

Overall Indication and Observations on this competency:
Basic Developing Competent Mastery Role Model
1 2 3 4 5 6 7 8 9 10

· Identifies multiple options in known areas, goes beyond his specialization sometimes· Flexible · Considers different perspectives· Being judgmental at times · Self reliant · Positive self image· Expresses fully – to the extent dominates sometimes

Customer Orientation

“Committed desire to identify customer needs and work towards exceeding their expectations relentlessly, with love, to build long-term relationship for repeat orders”

Overall Indication and Observations on this competency:

Basic Developing Competent Mastery Role Model
1 2 3 4 5 6 7 8 9 10

· Understands the needs of the customer and works towards meeting the same· Can go beyond his call of duty to serve his customer· Openness · Willing to consider others view, if they are in line with his thinking· Understands business processes · Helpful, Co-operative· Makes good presentation· Strives to arrive at quick close, may or may not be mutually acceptable· Desire to add value to customer · Action oriented , Target oriented

Decision Making

“Identifying issues, analyzing them, defining the problems, specifying decision goals, defining criteria for evaluation, identifying options, evaluating the same, making a choice and implementing”

Overall Indication and Observations on this competency:
Basic Developing Competent Mastery Role Model
1 2 3 4 5 6 7 8 9 10

· Considers the key issues and finds relationship· Takes overview considering multiple factors , shows concern for details · Tries to define decision criteria in group situations · Considers short term and mid term perspective. · Takes risk · Can relate concrete and abstract data

Leadership and Team Development

“Ability and will to create team direction, and synergy aligning, inspiring, influencing, developing people for High Performance

Overall Indication and Observations on this competency:
Basic Developing Competent Mastery Role Model
1 2 3 4 5 6 7 8 9 10

· Can articulate and create team direction , with some support· Tries to influence others to accept his view point, however tries to impose on others , if his views are not received well· Takes initiative and tries to integrate people and processes· Generally composed , looses cool if the going gets tough· Collaborates · Assertive, sometimes aggressive· Decisive, Self confident

Relationship and Relationship Networking

“Ability to relate and create rapport for lasting bond with people both within and outside the organization”

Overall Indication and Observations on this competency:

Basic Developing Competent Mastery Role Model
1 2 3 4 5 6 7 8 9 10

· Understands the need of others, may or may not consider if they are not in line with his way of thinking · Tries to impose his views in group situations sometimes without using logic· Network with external agencies · Takes responsibilities · Demonstrates achievement drive

Change Management

“Ability to foresee change in business variables and working towards adapting to the emerging conditions”

Overall Indication and Observations on this competency:
Basic Developing Competent Mastery Role Model
1 2 3 4 5 6 7 8 9 10

· Anticipates changes in his areas of operations · Considers some of the changes and challenges in the overall context of Business · Can work out change management process with support· Flexible , willing to experiment· Can implement change · Can influence others , Self Confident & responsible

Global Mindset

“Positioning products and services to be globally competitive”

Overall Indication and Observations on this competency:
Basic Developing Competent Mastery Role Model
1 2 3 4 5 6 7 8 9 10

· Considers some of the factors influencing global business· Looks at opportunities in unfamiliar global situations· Tries to understand the needs of the customers · Helpful, Supportive to customers (external)· Demonstrates need to excel· Can go beyond boundaries· Influencing · Positive · Adaptable

Managing Work Pressure

“Ability to ride through varying demands on the job and produce results by being calm and composed”

Overall Indication and Observations on this competency:
Basic Developing Competent Mastery Role Model
1 2 3 4 5 6 7 8 9 10

· Generally maintains cool , however can be quiet imposing· Result oriented · Target oriented , can manage non- reporting relationship· Customer oriented · Tries to influence others to accept his view point· Decisive , may or may not find mutually acceptable solutions· Ambitious · Achievement oriented

· Recommendations:Mr X was very active and participative in all his exercises . He likes to interact and take initiative to drive the processes. However sometimes he can be quiet imposing, in team workTo facilitate his growth it is recommended that 1.0 He should attend an advanced course in marketing and sales management 2.0 Leadership and Team development 3.0 Course on General management 4.0 Should attend a course on finance management 5.0 He should also attend a course on Innovation & Decision making.

Individual Development Plan

Developmental Action Start Date End Date Behavior/ Competency Focus

HAY SYSTEM OF JOB EVALUATION - QUESTIONNAIRE FOR ASSESSING COMPETENCIES - MODEL QUESTIONS

HAY SYSTEM OF JOB EVALUATION

The Hay Guide Chart Profile System was developed in the United States in the periods immediately before and after the Second World War. It was designed specifically to cover administrative and managerial jobs in large organisations. Hay was first used in the UK in financial sector organisations. It subsequently spread to many other sectors, primarily, until the late 1980s for managerial and administrative jobs. Since then Hay has increasingly been used to cover all jobs in an organisation.
The scheme was amended in the late 1990s to accommodate local government manual jobs. A unique feature of the Hay system is that it is a universal scheme, in that the same scheme, with the same factors, factor levels and scoring system is intended to be applied in the same way in any organisation adopting the Hay system. A second unique feature of the Hay system is the Guide Charts. In summary, the factor headings are:

Know-How
Depth of Technical Know-How
Breadth of Management Know-How
Human Relations Skills

Problem-Solving
Thinking Environment
Thinking Challenge

Accountability
Freedom to act
Magnitude
Impact

Physical Demands
Physical Effort
Working Conditions

The numbers of levels used on some Hay factors can vary depending on the
organisation. Generally there are up to eight levels.

THE HAY GUIDE CHART-PROFILE METHOD OF JOB EVALUATION

General Use of the Hay Scheme

The nature of job evaluation schemes is such that only those schemes that compare jobs against jobs are universally applicable at any level in an organisation. The Hay scheme has found widespread acceptance because it:-

* is based on the step difference principle;

* it measures any job from office junior to the Chairman;

* will relate different cultures and styles of organisation; and

* is effective in all market sectors.

Consequently, it is now used by more organisations on a worldwide basis than any other single type of evaluation scheme. Hay has over 1000 consultants working from 76 offices in 36 countries around the world. In the British Isles, the HayGroup are working with over 1000 clients. Wherever the Hay Guide Chart-Profile Method of Job Evaluation is used it employs a number of well tried procedures and rules.

Procedures

1. Jobs must be properly understood before they can be evaluated hence, good quality information is required in the shape of job descriptions which make the content and context of the job clear.

2. Job evaluation is a judgmental, not a scientific, process thus every effort must be made to minimise subjectivity. This is achieved by having people with knowledge of the sector, function or organisation involved and by having a number of factors to make judgements about.

3. The task of the evaluators is to make consistent judgements and the use of the evaluation method is the tool which enables this to happen.

4. Each evaluation is checked using the profiling techniques.

5. As patterns of relativities begin to emerge they are reviewed on the basis of reason and fairness using the step difference and profile techniques to clarify judgements.

6. Each decision is properly recorded in order that the reasoning is documented for future use when maintaining the scheme as jobs change, or dealing with appeals when job holders consider the evaluators are at fault.

Rules

1. It is jobs that are evaluated not job holders.
2. The evaluation is based on a fully acceptable level of performance by occupants of the job.
3. The job is evaluated as it exists today.
4. Present pay, status or grading are not relevant.
5. Jobs can only be evaluated if they are understood.

The Hay Guide Chart-Profile Method has been developed empirically over a period of 50 years and has a number of key features:-

a) the three elements common to all jobs which facilitate comparison;

b) the step difference principle, which is the tool of comparison;

c) the numerical scale for relating different levels of jobs; and

d) the profiling technique for checking the consistency of each evaluation.

The Common Element

There are a number of different methods of job evaluation. Some compare whole jobs, the majority look at factors or elements which are common between jobs, such as knowledge, skills, experience, mental effort and responsibility. The Hay scheme is based on the analysis of three common elements, each element being measured on a separate guide chart which is set out like a grid. The elements are:-

KNOW-HOW The sum total of every kind of capability or skill, however acquired, needed for acceptable job performance.
PROBLEM SOLVING The original, self-starting use of KNOW-HOW required by the job to identify, define and resolve problems. "You think with what you know." This is true of even the most creative work. The raw material of any thinking is knowledge of facts, principles, and means. For that reason, PROBLEM SOLVING is treated as a percentage of KNOW-HOW.
ACCOUNTABILITY The answerability for action and the consequences thereof. It is the measured effect of the job on the end results of the organisation.
The Step Difference Principle

Some job evaluation schemes compare job factors against pre-determined scales. These are known as points rating schemes. The Hay scheme compares jobs against jobs using the step difference principle which works as follows:-

* if the difference between an element in two jobs is immediately evident and requires no consideration at all, then it is probably three steps or more;

* if, after some consideration, the difference is reasonably clear, it is probably two steps;

* if, after very careful consideration and scrutiny, a difference can just be discerned, then the difference is one step;

* if, after very careful scrutiny and consideration, no difference can be detected between the element in the jobs, then they are, for evaluation purposes, identical.

The Numerical Scale

Each intersect on the grid contains two or three numbers which overlap other intersects in order to provide the finest of tuning in evaluation judgements. The numbers themselves are directly proportional to each other in a geometric progression e.g. 100, 115, 132, 152. This avoids the difficulty that in an ordinary progression e.g. 1, 2, 3, 4, the numbers are in a constantly diminishing relationship to each other. The Hay scale of progression is 15% and means that each judgement is given this constant relativity wherever it falls on the scale.

Profiling

The Hay scheme also has a facility for checking the soundness of an evaluation by considering the shape or profile of the job. This is accomplished by testing the distribution of the three elements of Know-How, Problem Solving and Accountability in the evaluation of each job to see if it makes sense.

QUESTIONNAIRE FOR ASSESSING COMPETENCIES

BUSINESS ACUMEN

Q1. What are the various business opportunities, you see in your organization? (Ignore constraints)

Q2. How do you wish to convert them into workables?

Q3. What are the improvements that you would like to make:

· In your job
· In your organization

Q4. Prepare an organization direction for your present organization.

Q5. Make a SWOT Analysis of your Organization / Department.

Q6. Explain the financial viability of the case: Mini Diary Project

STRATEGIC PERSPECTIVE

Q1. Draw out a Road Map for this company / department if you were the Department Head or CEO of the organization? Give financial implications of each of the proposals.

Q.2 Find business opportunities for short term & long term in the given case:

CASELET: A
CASELET: B
CASELET: C

Q3. What is the likely business scenario by 2015?

INNOVATIVE THINKING & APPLICATION

Q1. What are the new ideas that you want to implement to improve the effectiveness in your current job / organization.

Q2. Explain the strategies for making the following products successful.

· A
· B
· C
· D

Q3. Mention an incident where you had to use a unique method to handle or resolve an issue.

Q4. A system / process / product have been doing well for your organization? Have you modified/altered or found an alternative for the same to get better output from the same?

Q5. What are the some of the reservations you have about doing a thing differently from what has been the practice?

Q6. What are the some of the ideas you have picked from elsewhere and implemented? Explain instances.

Q7. How do you get new ideas from your team members? How did you influence the team to implement? What has been the outcome?

LEADERSHIP

Q1. What are some of the leadership roles that you have assumed in your life?

Q2. What are some of the tools and techniques that you use to influence people performance?

Q3. Prepare a brief write-up on yourself to appear in a renowned Business Magazine in the year 2015? Name the magazine.

Q4. How do you identify talents, specify some of the talents you have identified and explain how you have developed them?

Q5. What are the major contributions you have made to your department which you are extremely proud of?

· Situation
· Process
· Outcome

Q6. What do you think are the priorities of people in work situations?

Q7. What are the contributing factors for high team output?

Q8. What are the different roles that you play in a Team?

1. Plant
(Advancing new ideas & strategies with special attention
to major issues)
2. Resource Investigator
(Exploring, reporting on idea developments & resources)
3. Co-ordinator
(Controlling in a way that team moves towards group
objectives)
4. Shaper
(Shaping the way in which a team effort is applied)
5. Monitor Evaluator
(Analysing problems, evaluating ideas and suggestions)
6. Team Worker
(Supporting members in their strengths)
7. Implementer
(Turning concepts and ideas into practical working
procedures)
8. Completer - Finisher
(Ensuring the team is protected from mistakes)
9. Specialist
(Contributing a professional viewpoint on the subject
under discussion)

CUSTOMER ORIENTATION

Q1. How do you build internal relationships?

Q2. In your tenure how did you build customer loyalty?

Q3. What did you do to identify customer needs?

Q4. Describe a Project team you managed, the people you involved. What was accomplished?
· Situation
· Process
· Outcome

Q5. Describe the situations of disagreement with your colleagues, boss, and what did you do to overcome the same?

Q6. Who are the people whom you regularly interact with?

Q7. You interact with people for --------
1. --------------
2. --------------
3. --------------

Q8. What are your most important values with respect to people?

Q9. Situation Test Questions.

DECISION MAKING

Q1. Have you ever planned a major Project? What was it? How did you handle?

Q2. What are three major decisions you have taken during the last one year? How did you go about making the decision? What was the impact

· Situation
· Process
· Outcome

Q3. Often we may have to take decisions, one which is less risky with minimum returns and other which is high risk and high returns. Have you been in any such situation? What decision did you take?

· Situation
· Process
· Outcome

Q4. What were the occasions you were required to take multiple decisions, under time pressure?

· Situation
· Process
· Outcome

Q5. What has been the most challenging performance standard set and achieved by you?

Q6. What are the reasons for non-adherence to schedule in an organization in general?

Q7. We sometimes exceed targets and/or complete work within timeframes. What could be the reasons?

Q1. What does work mean to you?

Q2. My preference in life: Rank them in order of preference

A) Completing assignments on record time with team of people
B) Generating new Product, Services
C) Creating direction for the team
D) Influencing others to produce high results

· Short case will be made available to be used in the discussion
· Role Play situations will be provided for different positions

Q1. In the context of globalization what are the various functions that would be necessary
for building competitive edge and organizational success. How do you measure the
success of HR Professionals in a large multinational organization ?

Q2 Explain the following (Any 3)

1.0 Development of Fast Trackers through Potential identification
2.0 Pay for Performance system
3.0 Hay MSL Job Evaluation system
4.0 HR Role in the coming years
5.0 Knowledge Management

Q3 Explain the function Engaging people for high performance. What are the practices
relevant to this function, how do you measure effectiveness of this function?

Q4 What are the various components of Performance Management System and explain
the same. How do you measure the effectiveness of Performance Management
System?

Q5 In large Indian multinational company operating in different countries it has been
decided to prepare a blueprint of HRM initiatives to be implemented in the next 2
years. What are the issues you would consider for preparing the above plans?

Q6 Analyse the case HI TECH COMPANY LTD and recommend your approach to
take the company forward

Q7 Recommend a compensation management system for a multinational company
which has manufacturing and marketing units in USA , Middle East , Singapore,
India and Japan. Recommendation should include the various issues and a common
Job Evaluation System

Q8 Apply change management model for making JBIMS a World Class Academic
Institute

Q9 How do you measure the effectiveness of following HR function?
1 - Leadership and Team Development
2 - Internal and External Customer Orientation

Q10 What are the various applications of Human Resource Audit, Explain the
processes. Recommend HRM benchmarking for an International Airline company

Q11 Why International Human Resource Management? , What are the competencies
required for HR Professionals to be effective in a global business scenario

Q12 Explain the various components of Talent Management in the context of an
International business organization.

In-basket Exercise _ MHRDM at JBIMS Mumbai University

In-basket Exercise

Instructions to the participants

1.0 You are promoted to the position as SBU Head / CEO of Consumer Products Division of Asiatic Pharma Limited. You have already spent about 6 months learning the new job. You have just returned from your brief holiday and today you have reported back to work.

2.0 As usual your mail box is full and you are required to take a number of decisions. The mail box contents are attached.

3.0 You may first classify all the papers as High, Medium and Low priority. – Task 1

4.0 Take decisions on high priority items. – Task 2

5.0 Your responses like “asking for more details” or “pass it on to the colleagues” do not qualify for scoring.

6.0 You can draw your own assumptions about the company in which you are required to take decisions.

7.0 MOST IMPORTANT:

You are required to send your recommendations immediately on the following items of the mail box; which will be discussed in the next top management team meeting.

7.1 Mini Dairy Project.

7.2 BINODIA

Asiatic Pharma Ltd – Consumer Product Division
Organization Structure

You have the following organization set up.

Response sheet for the participants

TASK 1

Please classify all the papers / items in the file in three categories: High Priority, Medium Priority and Low Priority.

- 4 -

Item No. 1
Asiatic Pharma Ltd

CEO

Sub: Mini Dairy Project

Task force meeting will be held in the next two days at 3 p.m. This was already communicated to you. Additional copy of the feasibility report is enclosed.

Please send your personal recommendations immediately, so that we can discuss the same in the above meeting and take a final decision. We expect you to take charge of this new project in addition to your current responsibilities.

M.D.

PROJECT PROFILE

MINI DAIRY (MILK PROCESSING PLANT)

1. GENERAL DESCRIPTION:

The Mini-Dairy capable of processing 3000 liters of raw milk per shift into different milk products is supplied, pre-assembled & ready to operate, to be installed in a locally constructed building.

The design specifications and supervision for this building can be provided for during the construction till acceptance of the building by the client.

Alternatively it is possible to supply this dairy in remodeled containers which are especially adapted to the industrial requirements. Due to the severe climatic conditions, these containers will have to be assembled inside a locally built structure/ production hall.

This Dairy production unit, will be based on advanced technologies, allowing optimal utilization and integration between equipments, structures and human resources.

Processing technologies, work routines and equipment have been especially developed and adopted for these mini-dairies. All these elements will assure, year round continuous operation, production/ processing, maintenance, etc.

Due to the fluctuations in the milk-supply to the dairy it is possible to use milk-powder to supplement the daily production capacity.

The proposed small-scale Dairy provides a sound basis for a wide range of products, but in view of the small-scale of production it is recommended to limit production in the early stages to a small number of products.

With relatively small additional investments, it would be possible to introduce at a later stage additional products such as hard yellow cheese.

2. PROCESSING CAPACITY:
3,000-liter milk (3.7% fat content fresh milk and reconstituted milk) per day, one shift.

3. PRODUCTS:
a. Consumption Milk (1 – 1.5% fat content)
b. Soft White Cheese (Quark)
c. Sour Cream (10% fat content)
d. Yogurt (1 – 1.5% fat content)
e. Butter (80 – 82% fat content)

Other products may be evaluated based on market demands and preferences.

4. PACKING:

One semi-auto. bag filling machine for liquids.
Capacity: 360 – 400 units/ hours (500 cc./1000cc. bags)

One semi-auto. cup filling machine for Soft Cheese, Yogurts, Sour cream, etc.
Capacity: 1,000 units/ hour (150 cc / 500 cc cups with clip on lids)

5. PRODUCTION TABLE:

Type of Product Quantity of Milk Quantity of Prod. Packing
Cream Cheese 1600 ltrs. 350 kg. 250 gr. Plastic cont.
Salted White Cheese 1100 ltrs. 160 kg. 1/2 kg
Sour Cream 60 ltrs. 60 ltrs. 200 ml. Plastic Cups
Yogurt 300 ltrs. 300 ltrs. 125 ml. Plastic Cups
Butter 30 kg. 1/2 kg.
Please note that the product range for a mini dairy project in India might be different and will be discussed with the client.

NOTE:

The above capacities are based on a one-shift operation and can be substantially increased without major additional investments.

It is an option to use the equipment / lines in order to produce milk based drinks and other products, such as choco and / or soft drinks based on reconstituted fruit juices, etc.

6. SPECIFICATIONS AND STANDARDS:

This proposal is for the standard Dairy but it is also possible to supply the unit according to specific requirements by the client.

7. The survey of the local market on the variety of diary products have already been carried out. The general conclusion is that there is a good market potential for diary products if quality of products can be matched to global standards.

INVESTMENT COST

The total investment cost of the project is estimated at Rs. 200 lakhs as follows:

APPLICATION OF FUNDS
Sr. No. Particulars Rs. in lakhs
1. Land (1 Acre including development cost) 10.00
2. Building (4000 sqft Built-up @ Rs. 500/-) 20.00
3. Plant and Machinery (including assembly & guidance) 120.00
4. Power connection & other infrastructure 10.00
5. Delivery Van 15.00
6. Preoperative Expenses 15.00
7. Margin for working capital 10.00
200.00

MEANS OF FINANCE
Sr. No. Particulars Rs. in lakhs
1 Promoters equity 60.00
2 Term loan from financial Institution 140.00
TOTAL 200.00

PROFITABILITY ESTIMATE

A) SALES TURNOVER
PRODUCT QTY PRICE SALES VALUERs. (in lakhs)
1. Cream Cheese 350 kg. 100.00 126.00
2. Salted White Cheese 160 kg. 125.00 72.00
3. Sour Cream 60 kg. 75.00 16.20
4. Butter 30 kg. 115.00 12.42
5. Consumption Milk 2000 lit 12.00 86.40
Total sale per Annum 313.02

Annual Working days 360
Annual Sale 313.02 lakhs

B) EXPENDITURE
1.Cost of Milk (3000 lit / per day @ Rs.12/-) 129.60
2.Consumables 21.00
3.Utilities (Power, Water etc.) 8.00
4.Manpower Cost 15.00
5.Overhead Cost 16.00
6.Financial Cost 30.00
7.Selling and Distribution 30.00
8.Depreciation 30.00
259.60

Net Profit 53.42

1. Break even point @ 64% capacity utilization can be achieved in the second year

2. Gestation period - 16 to 18 months

3. Pay-back period - 3 1/2 years.

Your Recommendations with reasons.

Item No. 2

Asiatic Pharma Ltd

CEO

Last week we had a meeting in which we had agreed to finalize the targets for the coming 12 months in this week.

Please come fully prepared, so that we can finalize the targets and review process etc. day after at 2 P.M. in my office.

CRITICAL SUCCESS FACTORS TARGETS KEY PERFORMANCE INDICATORS REVIEW PROCESS

M.D.

Item No. 3

Asiatic Pharma Ltd

150406

TELEGRAM

AWAITING MONEY TRANSFER FOR THE EQUIPMENT PAYMENT TO US MACHINERY COMPANY LTD FOR OUR NEW MACHINES. AM UNABLE TO SHIP THEM WITHOUT PAYMENT. YOUR GUIDANCE PLEASE.

REGARDS
AS

Item No. 4

Report on Population distribution in India

Area - sq. km. 3287273
No of states 25
No of Union territories 6
No of towns 58702
No of villages 938374

Urban and Rural population

Urban - 26%
Rural - 74%

Tea Main Distributors - 8399 all over India.

DDTE Market Share - 32%
No in market share - 2nd

Item No. 5

Asiatic Pharma Ltd

170406

Note from Maushami

Have received two tickets for you to Sri Lanka - one dated 220406 (to Colombo) and one dated 250406 (to our plantation in Sri Lanka). I can't make out why two tickets have come. Please advise.

Item No. 6
Billoria Fencing Company LTD

Ref: AEL/04/955
280306

Final Quotation

GM OPERATION

Sub: Final quotation

As discussed we are sending our final quotation for the supply of wire and posts for your requirement.

Wire - per meter - Rs. 33
Post - per Post - Rs.98
Installation Charge - Rs. 947 per 100 meters

This has been calculated based on your commitment to release full payment of the material 1 week in advance. Also we have given these bulk rates due to the quantity you have confirmed which is as below
Wire - 300 kms
Posts - 20000 Nos

The prices are valid only for the next fifteen days.

From,

Marketing Manager
Billoria Fencing Company.

Item No. 7

Asiatic Pharma Ltd
Consumer Product Division

120406

CEO

This is for your information that we have lost 6% market share in DDTEA during the last quarter. This is alarming, as there has never been such a steep drop. This may result into a drop of about 60 crores in our projected turnover and subsequent drop in profitability and cashflow.

Signed
GM Marketing.

Item No. 8
CEO

Interesting stuff - hope you love this.

Canoe racing … sound familiar?
A Japanese company and a California company decided to have a canoe race on the Columbia River. Both teams practiced hard and long to reach their peak performance before the race.
On the big day, the Japanese won by a mile.
Afterwards, the California team became very discouraged and depressed. The management of the California Company decided that they had to find a reason for the crushing defeat. A “Measurement team” made up of senior management was formed to investigate and recommend appropriate action.
Their conclusion was that the Japanese company had 8 people rowing and 1 person steering, while the Californians had 1 person rowing and 8 people steering.
So the management of the California company hired a consulting company and paid them incredible amounts of money. They advised that too many people were steering the boat and not enough people were rowing.
To prevent losing to the Japanese again the next year, the rowing team’s management structure was totally reorganized to 4 steering supervisors, 3 area steering superintendents and 1 assistant superintendent steering manager. They also implemented a new performance management system that would give the 1 person rowing the boat greater incentive to work harder. It was called the “Rowing Team Quality First Program”, with meetings, dinners and free pens for the rower. “We must give the rower empowerment and enrichment throughout this quality program”.
The next year the Japanese won by 2 miles. Humiliated, the management of the California company laid off the rower for poor performance, halted development of a new canoe, sold the paddles and cancelled all capital investments for new equipment. Then they used the money saved by giving a High Performance Award to the steering managers and distributed the rest of the money as bonuses tote senior executives.

Too long in a “Consultancy firm”
1. You ask the waiter what the restaurant’s core competencies are.
2. You decide to re-organize your family into a “team-based organization”
3. You refer to dating as test marketing
4. You can spell “paradigm”
5. You actually know what a paradigm is
6. You understand your airline’s fare structure
7. You write executive summaries on your love letters
8. Your Valentine’s Day cards have bullet points
9. You think that it’s actually efficient to write a ten-page presentation with six other people you don’t know.
10.You celebrate your wedding anniversary by conducting a performance review.
11.You believe you never have any problems in your life, just “issues” and “improvement opportunities”
12.You calculate your own personal cost of capital
13.You explain to your bank manager that you prefer to think of yourself as “highly leveraged” as opposed to “in debt”
14.You end every argument by saying “let’s talk about this off-line”
15.You can explain to somebody the difference between "re-engineering", "down-sizing", "right-sizing", and "firing people".
16.You actually believe your explanation in number 15.
17.You talk to the waiter about process flow when dinner arrives late.
18.You refer to your previous life as "my sunk cost".
19.You refer to your significant other as "my co-CEO".
20.You like both types of sandwiches: ham and turkey.

Item No. 9

Asiatic Pharma Ltd
Consumer Products Division

Notes for Today

Note from Maushami

News Reporter from THE TIMES OF INDIA has been trying to contact you, to make a write up on our organization. He wants you to contact him urgently.

Trade Team from South Africa is already being briefed in our Conference Room, by our DGM Technical. He desires that you also address the Trade Team for a while, as there are good opportunities of business development in South Africa.

Item No. 10

Asiatic Pharma Ltd

FAX

160406

FROM
EARL GREY COMPANY - London

URGENT: SHIP FIRST LOT IN THE NEXT TWO DAYS. ACKNOWLEDGE AND CONFIRM.

PRODUCTION HEAD UP
STEVE.

Item No. 11

Asiatic Pharma Ltd

20th April, 06

URGENT AND CONFIDENTIAL

CEO

We are launching the public Issue on 30th June 06. Please ensure that everything is in order at the Factory and that we are not in the newspapers for any wrong reasons. I don’t want any wrong signals to be passed on to the market. This is very crucial for us as a company.

M.D.

Item No. 12

Asiatic Pharma Ltd

170406

CEO

URGENT AND CONFIDENTIAL

Yesterday in Plant No. 2, Ram, our Ex-Trade Union leader had met with an accident. The doctor who is attending to him in the hospital feels that Ram will lose his right leg permanently. The Union has taken up this issue and they want compensation. Although, the accident was caused due to negligence, all the staff members are sympathetic towards Ram. The move is to get a huge compensation and job to his wife who is not educated. Union wants to see you immediately.

Production Manager.

Item No.13

Asiatic Pharma Ltd
170406

Message from Maushami

Data to be sent to HR Dept: By 30-04-06

TRAINING NEED IDENTIFICATION OF THOSE WHO REPORT TO YOU (Refer to the organization chart)

NAME PRESENT ROLE FUTURE ROLE(if constituted) WHAT KIND OF TRAINING

Item No. 14

Asiatic Pharma Ltd

VOUCHER FOR PAYMENT

Enclosed bills for Payment.
Total Amount Rs. 5507/-. Expenses incurred on account of Entertainment's to Company customers.

Please approve.
ACCOUNT ASSISTANT

Item No. 15

Asiatic Pharma Ltd

CEO

PRODUCTION PLANNING 2007-2008

We are considering the different aspects of bottlenecks, barriers, etc. for achievement of planned targets in our production units. I want you to prepare a note for discussion in our next strategic planning meeting to be held on 150506. Please confirm your participation.

In this meeting, we will also examine our future direction.

Please ensure that you EMAIL details to me as soon as possible.

M.D.

Item No. 16

Asiatic Pharma Ltd

Cost Sheet

FOURTH QUARTER 2005 FIRST QUARTER 2006
SALES 100 100.0
MATERIAL COST 35 37.0
EMPLOYEE COST 15 17.5
POWER, FUEL 9 9.0
COMMISSION 5 5.0
MAINTENANCE 7 10.5
OTHER 15 14.0
TOTAL 86 93.0
MARGIN 14 7.0
100 100.0

Item No. 17

Asiatic Pharma Ltd

CEO

170406

COST REDUCTION MEETING

The Meeting will be held on next Tuesday at 10 am. You are requested to contribute effectively in this meeting. Appreciate your giving points for discussion in advance. Please email.

TASK FORCE
Coordinator.

Item No. 18

Asiatic Pharma Ltd

CEO

BINODIA

A team has visited “BINODIA” to find out the business prospects. They have prepared a detailed report. Copy enclosed. You are requested to send your responses to me by 220406.

1. A chart comprising of relevant data from the report.
2. What are the strengths of this country?
3. What are the immediate business opportunities in this country?
4. What are the long-term business prospects?
5. What are the business prospects for a Pharma Company?

BINODIA

The Country

Binodia has an area of about 300,000 square kilometers and at last years sensus a population of 22 million, growing at about 2.5 % p.a. About two-thirds of the area lies in the plain which is bounded by the sea to the west. To the east of the plain lies the broad mountain area which covers the remaining third of the country, along the crest of which runs the frontier which isolates Binodia from white-ruled Brookstad, except for the broad valley created by the major tributary of the river Binod which feeds Lake Lava and its new Hiwata hydroelectric scheme. The valley provides a mountain crossing for the road and single track rail links between Brookstad and Binodia, which create an important source of revenue for Binodia and form the main access to and from the isolated plateau which forms the under-developed west of Brookstad. Binodia’s commercial contacts with the Islamic Socialist Republic of Jehadaland to the North and to the People’s Republic of Marxia to the South are currently limited by reliance on coastal shipping, as the colonial era left border areas devoid of roads and railways, while the cataracts on the Jehadaland border prevent river traffic.

The area of the capital, Igorata, contains 8 million of Binodia’s population and this figure is expected to almost double in two decades. An even faster population growth is expected in the region of the booming industrial city of Illogos, favoured by good communications and natural resources, where the 3 million population is currently growing at twice the rate of Igorata.

The Economy

The year 0 economic performance showed a GDP of Binodian Dollars ($b) 19 billions, about $b 850 per capita, with a GDP growth rate just under 5% p.a. Exports were $b 5.02 m, overbalanced by $b 5.87m important of which half were imported crude oil. The recent currency realignment leaves the official exchange rate at $b 1.03 to the US Dollar, currency controls exist but are not severe enough to produce a significant currency black market or unofficial exchange rate. Allowing for purchasing parity, the GDP per capita is assessed as about $US 1800.

The traditionally, Binodia has been an agricultural country with an export trade mainly in cereals and coffee conducted through Igorata port. The sedimentary rocks and alluvial deposits of the plain give way to the older rocks which form the mountains and extend across the north of the country to Petit Island. Tin is present on Petit Island, and is produced from a rather antiquated pre-colonial mine for export to Europe and Japan. A Uranium open pit in the foothills near Judytown was closed as uneconomic 20 years ago, but some copper is mined south of the river above Lake Lawa. In the foothills to the south of the lake there appears to be coal deposits, not yet exploited except by local hillmen for village use.

The country does not yet produce oil commercially, and onshore prospects seem slight. Offshore, there appears to be large potential reserves. Exploration to date handled by the Binodian State Oil Company (BINODOIL) has been unsuccessful, but promising offshore concessions have recently been opened for survey to Binodian-based oil majors.

Most commercial traffic is by coasters up to 3000 dwt which can also navigate upriver as far as Illogos. The river Binod allows year-round barge traffic as far as Judytown. One dual-carriageway round Igorata bay and down the Delha peninsular, and east of Ilogos alongside the single track railway to the Brookstadian frontier. Both the Eastern and Western blocks, however, are making bids to construct a grandiose from Jehadaland to Marxia. The location of the highway’s crossing point on the Binod is hotly disputed between Igorata and Ilogos.

The Eastern Block-build Hiwata Hydroelectric scheme at the outlet of lake Lawa is expected to give impetus to village industries in the mountains and foothills, besides rendering the Ilogos area less dependent on fuel oils shipped upriver from the Gama refinery installation.

Retail trade and local banks are mainly in the hands of overseas merchants, sometimes associated with and frequently ‘fronted’ by long established Binodian land-owning families from the region of large estate close to the capital. Government may introduce legislation to ‘rationalize the situation’. Most firms operating in Binodia depend on this group for brokerage and financing, and use their talents as agents, dealers and contractors.

The People

About 19 million of the population live in the plains and constitute a homogenous ethnic group, although lifestyle vary from the Northern nomads who extend across the Jehadaland border, through the fishermen and seamen of the coast and lower Binod and the peasantry and city dwellers of the central plain, to the sparse population of the Southern forests on the Marxian frontier. The population of the central plain includes an emerging middle class of landowners and of professionals and business people in the urban areas. They place great value on their children’s education, fostered originally two generation ago by mission schools, which still exist as an elite private educational sector. A colonial college taking external University of London degree in law and arts subjects was extended at independence to the University of Binodia with additional facilities of Physics and Chemistry. The degree, however, are considered less reputable than those awarded abroad. Many Binodian graduates and lawyers produced are absorbed into government service and politics. A government programme “Homeward Bound” attempts to attract scientists, technologists and engineers back to Binodia.

The culture of the plains people respect the wisdom which comes with age. There is a statutory retirement age of 65, and the majority of the business and community leaders are now in the 55-60 age band. The ‘Better Child Care’ programme which began 30 years ago resulted in a population bulge with half the population in the late twenties / early thirties and 20% in the late tens / mid-twenties. The programme changed early life expectancy dramatically, and the late life expectancy is expected to respond to the relative absence of childhood malnutrition and chronic disease among those who are now aged up to thirty-five.
Family life is matriarchal among both plainsmen and mountain people, with the women usually controlling the family budget (and doing a substantial amount of work). Although the university population contains an increasing proportion of women, currently 10%, there are few women in executive posts in industry, commerce, and government and feminist movement is developing, led by women members of profession like law and medicine, demanding more equal opportunities.

The number of mountain dwellers are uncertain but probably exceed million. Known as “hillmen” to the plain dwellers, they are a different ethnic group, which extends over the frontier into Brookstad. They were neglected before independence, except for a few isolated missions run by small sects. The presence of the government is still evident mainly in the tax collector, the recruiting officer and the army pensioner. This is also obvious in the Binodian armed forces, whose crack troops and technical crops tend to be predominantly hillmen with a reputation for decisive, even ruthless, action when required. The mountain tribal structure is matriarchal; the main tribal grouping is the Callovians, around Lake Lawa but extending East to Brookstad.

A Higher technical School was established at a mission in the Callovian area about 10 years ago, and has produced many good craftsmen / artisan, the best of whom have gone overseas to become graduate engineers of higher value to Binodian Industry than the pure scientists produced by the University of Binodia located in Igorata. Some have returned to their tribes and are teaching civilian skills, particularly to soldiers who might otherwise turn to traditional intertribal banditry, raids on the plains villages whose cultivation encroaches on winter pasture in the foothills, or mercenary service on Brookstad’s border with Marxia. Government approval is awaited on a proposal to raise the Higher Technical School to University College of Technical status, but has been delayed by objections from Interalia, the National University.

The Government

“Chairman” Aurelios (his preferred title) holds the Life Presidency and also heads a cabinet of young plainsmen, originating from the commercial / land-owning classes or fairly interactive administrative positions in the officer corps. The top hierarchy they represent are still steeped in the free market entrepreneurial spirit which created them. The Chairman’s own background is a leading Igorata family of landlords and merchants. He completed his legal education in the “mother country” in colonial times, and returned to join and eventually lead the comparatively peaceful struggle which resulted in independence for Binodia during the decade following World War 2. His first wife fulfills a magnified version of the role of a leading family matriarch, as Vice-Chairman and Ombus person. There is no obvious successor, but the Chairman, aged 63, seems to enjoy good health.

The unicameral parliament approves his decrees, officially, only one party “The Binodian People’s Congress”. The party contains a spread of opinions represented by factions ranging from the Blues, traditionally favouring an open market economy and strong in the agricultural areas to the Greens favouring a greater degree of state intervention, drawing support from the urban areas, and well represented in the officially-approved trade unions. Marxism undoubtedly influences the thinking of younger Green politicians and union leaders, who have social contacts with ‘Eastern Loc technicians’ working on foreign aid projects which may have contributed to a recent public split between elements looking towards Moscow and towards Peking.

The mountain tribes tend to ignore Binodian politics, operating through the strong family links cemented by tribal intermarriage, which extend into the NCO and lower commissioned ranks of the technically based public services like the National Airline, Binodair, the State Railways, and the Binodian Electricity. Undertaking which operates the recently commissioned Hiwata scheme and the distribution network. Although not represented in the cabinet and with only two members in parliament, mountain-born technocrats have tended to support the government in the times of stress – for example, when the Army Engineering Corps plus civilian technical staff maintained services during an unsuccessful strike by the left-wing led Utility Workers Union.

The Five levels of Leadership and The fifth discipline _ The art and practice of learning organization

The Five levels of Leadership

LEVEL 5 :
Level 5 Executive: Builds enduring greatness through a paradoxical blend of personal humility and professional will.

LEVEL 4:
Effective Leader: Catalyzes commitment to and vigorous pursuit of a clear and compelling vision, stimulating higher performance standards.

LEVEL 3:
Competent Manager: Organises people and resources toward the effective and efficient pursuit of pre-determined objectives.

LEVEL 2
Contributing Team Member: Contributes individual capabilities to the achievement of group objectives and works effectively with others in a group setting.

LEVEL 1
Highly Capable Individual: Makes productive contributions through talent, knowledge, skills and good

The fifth discipline

The art and practice of learning organization

Learning organizations are organizations where people continually expand their capacity to create the results they truly desire, where new and expansive patterns of thinking are nurtured, collective aspiration is set free, and people are continually learning how to learn together.

Learning organizations are possible because not only it is the nature to learn but also we love to learn. What fundamentally will distinguish learning organizations from traditional authoritarian "controlling organizations" will be the mastery of certain basic disciplines.

The disciplines of the learning organization

There are five components that build up learning organizations. Each provides a vital dimension in building organizations that can truly "learn", and can continually enhance their capacity to realize their highest aspirations:

System thinking: Organization are systems as they are bound by invisible fabrics of interrelated actions, which takes years to fully play out their effects on each other. So it is hard to see the whole pattern of change. System thinking is a conceptual framework, that helps to make full patterns clearer, and help us see how to change them effectively.

Personal Mastery: Personal mastery is the discipline of continually clarifying and deepening our personal vision, of focusing our energies, of developing patience, and of seeing reality objectively. The essential cornerstone of the learning organization is the organization's spiritual foundation. An organization's commitment to and capacity for learning can be no greater than that of its members.

The discipline of personal mastery starts with clarifying the things that really matters to us, of living our lives in the service of our highest aspirations.

Mental models: Mental Models are deeply ingrained assumptions, generalizations, or even pictures or images that influence how we understand the world and how we take action. Royal Dutch / Shell, one of the pioneers in the path of organization learning, defines institutional learning is the process whereby management teams change their shared mental models of the company, their markets, and their competitors. They believe planning as learning and corporate learning as institutional learning.
The discipline of working with mental models starts with turning the mirror inward; learning to unearth our internal pictures of the world to bring them to the surface and hold them rigorously to scrutiny. It also includes the ability to carry on learning conversations that balance inquiry and advocacy, where people expose their own thinking effectively and make that thinking open to the influence of others.

Building shared vision: A leader's capacity to hold a shared picture of the future inspires organization to excel. There is hardly any organization in any field of operation or business that had excelled in the absence of goals, values, and missions that are deeply shared throughout the organization. Given a choice people will opt for pursuing a lofty goal at all times but there should be a discipline for translating individual vision into shared vision.

The practice of shared vision involves the skills of unearthing shared pictures of the future that foster genuine commitment and enrollment rather than compliance.

Team learning: When teams are truly learning, not only are they producing extraordinary results but the individual members are growing more rapidly than could have occurred otherwise.

The discipline of team learning starts with dialogue, the capacity of members of a team to suspend assumptions and enter into a genuine "thinking together". "Dia-logos" in Greek means free flowing of meaning through a group, allowing the group to discover insights not attainable individually.

The discipline of dialogue also involves learning how to recognize the patterns of interaction in teams that undermine learning. The patterns of defensiveness are often deeply engrained in how a team operates. If recognized and surfaced creatively, they can actually accelerate learning.

Team learning is important, as teams not individuals are the fundamental learning unit in organizations. Unless teams learn the organization cannot learn.

The learning disabilities

It is common that most organization learn poorly. The way they are designed and managed, the way people's jobs are defined, and most importantly, the way we have all been taught to think and interact create fundamental learning disabilities. These disabilities operate despite the best efforts of bright, committed people.
The first step in curing them is to begin to identify the seven learning disabilities:

1.0 "I am my position": We are trained to be loyal to our jobs - so much so that we confuse them with our own identities. They feel they cannot do anything else but the job they are trained for.
When people in organization focus only on their position, they have little sense of responsibility for the results produced when all positions interact. When results are disappointing, it is difficult to know the reason.

2.0 "The enemy is out there": This is actually a by-product of "I am my position". When we focus on our position, we do not see how our own actions extend beyond the boundary of that position. When those actions have consequences that come back to hurt us, we misperceive these new problems as externally caused.

3.0 The illusion of taking charge: Managers frequently proclaim the need for taking charge in facing difficult problems. This means to face difficult issues, stop waiting for some one else to do something, and solve problems before they grow into crises.
But too often, proactiveness is reactiveness in disguise. If we simply become more aggressive fighting the "enemy out there", we are reacting - regardless of what we call it. True proactiveness comes from seeing how we contribute to our own problems. It is a product of our way of thinking, not our emotional states.

4.0 The fixation of events: Our fixation on events leads to event explanations. Today, the primary threats to our survival, both of our organizations and of our societies, come not from sudden events but from slow, gradual processes. Generative learning cannot be sustained in an organization if people's thinking is dominated by short-term events. If we focus on events, the best we can ever do is predict an event before it happens so that we can react optimally. But we cannot learn to create.

5.0 The parable of the boiled frog: Maladaptation to gradual threats to survival is pervasive in system studies of corporate failure. Learning to see slow, gradual processes requires slowing down our frenetic pace and paying attention to the subtle as well as the dramatic.

6.0 The delusion of learning from experience: We learn best from experience but we never directly experience the consequences of many of our most important decisions. The most critical decisions made in organizations have system wide consequences that stretch over years or decades.
Traditionally, organizations attempt to surmount the difficulty of coping with the breadth of impact from decisions by breaking themselves up into components. The result: analysis of the most important problems in a company, the complex issues those cross-functional lines, becomes a perilous or nonexistent exercise.

7.0 The myth of the management team: The collection of experienced managers who represent the organization's different functions and areas of expertise most often fail to sort out the complex cross-functional issues that are critical to the organization.

These learning disabilities continue today, along with their consequences. The five disciplines of the learning organization can, act as an antidote to these learning disabilities.

The laws of the fifth discipline

1.0 Today's problems come from yesterday's solutions: Solutions that merely shift problems from one part of a system to another often go undetected.

2.0 The harder you push, the harder the system pushes back: When our initial efforts to produce lasting improvements fail, we push harder and thereby glorify the suffering that ensues and blindfold ourselves to how we are contributing to the obstacles ourselves.

3.0 Behavior grows better before it grows worse: In complex situations there are always many ways to make things look better in the short run. Only eventually does the compensating feedback come back to haunt you. A typical solution feels wonderful, when it first cures the symptoms. But in two or three or four years the problem returns with bigger and complex magnitude.

4.0 The easy way out usually leads back in.

5.0 The cure can be worse than the disease.

6.0 Faster is slower. Virtually all-natural systems, from ecosystems to animals to organizations, have intrinsically optimal rates of growth. The optimal rate is far less than the fastest possible growth.

7.0 Cause and effect are not closely related in time and space: By effect we mean the symptoms that indicate that there are problems. By cause we mean the interaction of the underlying system that is most responsible for generating the symptoms. For eg. If there is a problem on the manufacturing line, we look for the cause in the manufacturing. If salespeople can't meet targets, we think we need new sales incentives or promotions.

8.0 Small changes can produce big results- but the areas of highest leverage are often the least obvious.

9.0 You can have your cake and eat it too, but not at once: For eg. Quality and cost at the initial phase do not go hand in hand but if a systems perspective is taken over a time frame real leverage is seen and both can improve over time.

10.0 Dividing an elephant in half does not produce two small elephants: Living systems have integrity. Their character depends on the whole. The same is true for organizations; to understand the most challenging managerial issues requires seeing the whole system that generates the issues.

11.0 There is no blame: Systems thinking show us that there is no outside; that you and the cause of your problems are part of a single system. The cure lies in the relationship with that " enemy" within the system.

A shift of mind

Seeing the whole new world

System thinking is a discipline for seeing wholes. It is a framework for seeing interrelationships rather than things, for seeing patterns of change rather than static snapshots. System thinking is needed more than ever because we are becoming overwhelmed by complexity.
Sophisticated tools of forecasting and business analysis, as well as elegant strategic plans, usually fail to produce dramatic breakthroughs in managing a business. They are all designed to handle the sort of complexity in which there are many variables: detailed complexity. But there is another type of complexity: dynamic complexity, situations were cause and effect are subtle, and where the effects over time of interventions are not obvious. Conventional forecasting, planning, and analysis methods are not equipped to deal with dynamic complexity.
When the same action has dramatically different effects in the short run and the long run, there is a dynamic complexity. When the action has one set of consequences locally and a very different set of consequences in another part of the system, there is a dynamic complexity. When obvious interventions produce nonobvious consequences, there is dynamic complexity.
The real leverage in most management situation lies in understanding dynamic complexity not detailed complexity. Balancing market growth and capacity expansion is a dynamic problem. Developing a profitable mix of piece, product or service, quality, design, and availability that make a strong market position is a dynamic problem. Improving quality, lowering total costs, and satisfying customers in a sustainable manner is a dynamic problem.
Unfortunately, most systems analyses focus on detail complexity not dynamic complexity. Simulations with thousands of variables and complex arrays of details can actually distract us from seeing patterns and major interrelationships.
The essence of the discipline of systems thinking lies in a shift of mind:
· Seeing interrelationships rather than linear cause-effect chains, and
· Seeing processes of change rather snapshots
The practice of systems thinking starts with understanding a simple concept called feedback that shows how actions can reinforce or counteract / balance each other. It builds to learning to recognize types of structures that recur again and again. System thinking describes interrelationships and patterns of change, which ultimately simplifies life by helping us, see the deeper patterns lying behind the events and the details.

There are two types of feedback processes: reinforcing and balancing. Reinforcing or amplifying feedback processes are the engines of growth. Whenever you are in a situation where things are growing, you can be sure that reinforcing feedback is at work.
Balancing or stabilizing feedback operates whenever there is a goal-oriented behavior. If the goal is to be not moving, then balancing feedback will act in such a way you do not move ahead. The goal can be explicit targets as when a firm seeks a desired market share, or as implicit such as a bad habit.
Many feedback processes contain delays, interruptions in the flow of influence which make the consequences of actions occur gradually.

Reinforcing feedback: if you are in a reinforcing feedback system, you may be blind to how small actions can grow into larger consequences - for better or for worse.
For eg. If I see a person as having high potential, I give him special attention to develop that potential. When he flowers, I feel that my original assessment was correct and I help still further. Conversely, those I regard as having lower potential languish in disregard and inattention, perform in a disinterested manner, and further justify, in my mind, the lack of attention I give them.
In reinforcing processes such as the Pygmalion effect, a small change builds on itself. Whatever movement occurs is amplified, producing more movement in the same direction. A small action snowballs, with more and more and still more of the same, resembling compounding interest.

Balancing feedback: In a balancing system, you are in a system that is seeking stability. If you like the system's goal, you will be happy. If not then you will find all your efforts to change matters frustrated - so you either change the goal or weaken its influence. Nature loves a balance - but many times, human decision-makers act contrary to these balances, and pays the price.

Delays: systems seem to have minds of their own. Nowhere is this more evident than in delays - interruptions between your actions and their consequences. Delays can make you badly overshoot your mark. They can have a positive effect if you recognize them and work with them.
Delays between actions and consequences are everywhere in human systems. We invest now to reap a benefit in the distant future, we hire a person today but it may be months before he or she is fully productive; but delays are often unappreciated and lead to instability.
Virtually all feedback processes have some form of delay. But often the delays are either unrecognized or not well understood. This can result in overshoot going further than needed to achieve a desired result.

Natures Template

One of the most important, and potentially most empowering, insights to come from the young field of systems thinking is that certain patterns of structure recur again and again. These are systems archetypes or generic structures, which embody the key to learning to see structures in our personal and organizational lives.

The purpose of systems archetypes is to recondition our perceptions, so as to be more able to see structures at play, and to see the leverage in those structures. Once a systems archetype is identified, it will always suggest areas of high- and low-leverage change.

Archetype 1: Limits to growth

Definition: A reinforcing process is set in motion to produce a desired result. It creates a spiral of success but also creates inadvertent secondary effects, manifested in a balancing process, which eventually slow down the success.

Management Principle: Do not push growth; remove the factors limiting growth.

Where it is found: Organizations grow for a while, but then stop growing. Working groups or individuals improve themselves for a period of time, but then stop getting better.

Structure: In the case of limits to growth, there is a reinforcing process of growth or improvement that operates on its own for a period of time. Then it runs up against a balancing process, which operates to limit the growth. When that happens, the rate of improvement slows down, or even comes to a standstill.

Understanding and using the structure, an example: When a professional organization, such as a consultancy firm, grows very rapidly when it is small, provides outstanding promotion opportunities. Morale grows and talented junior members are highly motivated, expecting to become partners within ten years. But as the firm gets larger, its growth slows. Perhaps it starts to saturate its market niche. Or it might reach a size where the founding partners are no longer interested in sustaining rapid growth. However the growth rate slows, this means less promotion opportunities, more in-fighting among junior members, and an overall decline in morale.

How to achieve leverage: in these cases, leverage lies in the balancing loop - not the reinforcing loop. To change the behavior of the system, you must identify and change the limiting factor. This may require actions you may not yet have considered choices you never noticed, or difficult changes in rewards and norms. For eg. Maintaining morale and productivity as a professional firm matures requires a different set of norms and rewards that salute work well done, not a person's place in the hierarchy. It may also require distributing challenging work assignments equitably and not to partners only.

Quality circles have succeeded wherever broader changes in managerial-employee relationships have developed. In particular, successes have involved genuine efforts to distribute control, thereby dealing with the union and management concerns over loss of control.

But there is another lesson from the limits to growth structure as well. There will always be more limiting processes. When one source of limitation is removed or made weaker, growth returns until a new source of limitation is encountered.

Archetype 2: Shifting the burden

Definition: An underlying problem generates symptoms that demand attention. But the underlying problem is difficult for people to address. So we shift the burden of their problem to other solutions - well-intentioned, easy fixes which seem extremely efficient. Unfortunately they leave the underlying problem unaltered. The problem grows worse, unnoticed because the symptoms apparently clear up, and the system loses whatever abilities it had to solve the underlying problem.

Management principle: Symptomatic solutions address only the symptoms of a problem, not the fundamental causes. In the long term, the problem resurfaces and there is increased pressure for symptomatic responses.

Structure: the shifting of burden is composed of two balancing processes. Both are trying to adjust or correct the same problem systom. The symptomatic intervention or the quick fix solves the problem symptom quickly, but only temporarily. The fundamental response to the problem works far more effectively and needs a longer time.

The core disciplines: building the learning organization

Personal Mastery

Organization learn only through individuals who learn. Individual learning does not guarantee organizational learning. But without it no organizational learning occurs. The active force is people. People have their own will, their own mind, and their own way of thinking. If the employees themselves are not sufficiently motivated to challenge the goals of growth and technological development there will simply be no growth, no gain in productivity, and no technological development.

Personal mastery goes beyond competence and skills, though it is grounded in competence and skills. It goes beyond spiritual unfolding or opening, although it requires spiritual growth. It means approaching one's life as a creative work. When personal mastery becomes a discipline it embodies two underlying movements. The first is continually clarifying what is important to us. The second is continually learning how to see current reality more clearly.

The juxtaposition of vision (what we want) and a clear picture of current reality (where we are relative to what we want) generate what we call creative tension. This is a force to bring them together, caused by the natural tendency of tension to seek resolution. The essence of personal mastery is learning how to generate and sustain creative tension in our lives.

There is some fear that personal mastery will threaten the established order of a well-managed company. So to empower people in an unaligned organization can be counterproductive. If people do not share a common vision, and do not share common "mental models" about the business reality within which they operate, empowering people will only increase organizational stress and the burden of management to maintain coherence and direction.

The way to begin developing a sense of personal mastery is to approach it as a discipline, as a series of practices and principles.

The ability to focus on ultimate intrinsic desires, not only on secondary goals, is a cornerstone of personal mastery. Real vision cannot be understood in isolation from the idea of purpose. By purpose, it means an individual's sense of why he is? But vision is different from purpose. Purpose is familiar to a direction, a general heading. Vision is a specific destination, a picture of a desired future. Purpose is abstract. Vision is concrete. Personal mastery is a process of continually focusing and reinforcing on what one truly wants, on one's visions.

People often have great difficulty talking about their visions, even when the visions are clear. This is because we are acutely aware of the gaps between our vision and reality. These gaps can make a vision seem unrealistic or fanciful. They can discourage us and make us feel hopeless. But the gap between vision and current reality is also a source of energy. If there is no gap, there would be no need for any action to move toward the vision. The gap is the source of creative energy. We call this gap creative tension. The principle of creative tension is the central principle of personal mastery, integrating all elements of the discipline.
Mastery of creativity tension leads to a fundamental shift in our whole posture toward reality. Current reality becomes the ally not the enemy. An accurate, insightful view of current reality is as important as a clear vision.

Most of us hold one of two contradictory beliefs that limit our ability to create what we really want. The more common is belief in our powerlessness - our inability to bring into being all the things we really care about. The other belief centers on worthiness - that we do not deserve to have what we truly desire. Robert Fritz , who has worked with literally ten of thousands of people to develop their creative capabilities, claims that he has met only a handful of individuals who do not seem to have one or the other of these underlying beliefs. But if we accept it as a working premise, it illuminates systematic forces that can work powerfully against creating what we really want. Fritz calls the system involving both the tension pulling us toward our goal and the tension anchoring us to our underlying belief as "structural conflict" because it is a structure of conflicting forces: pulling us simultaneously toward and away from what we want. If structural conflict arises from deep underlying beliefs, then it can be changed only by changing the beliefs. Most of us gradually change beliefs as we accumulate new experiences and develop personal mastery.

Commitment to the truth also helps to overcome the structural conflict. It relentlessly root out the ways we limit or deceive ourselves from seeing what is, and to continually challenge our theories of why things are the way they are. It means continually broadening our awareness, just as the great athlete with extraordinary peripheral vision keeps trying to see more of the playing field. It also means continually deepening our understanding of the structures underlying current events.

What our organization can do to foster personal mastery?
Leaders in organization can work relentlessly to foster a climate in which the principles of personal mastery are practiced in daily life. That means building an organization where it is safe for people for create visions, where inquiry and commitment to the truth are the norm, and challenge the status quo is expected - especially when people seek to avoid the current reality.
Such organization climate will strengthen personal mastery in two ways. First, it will continually reinforce the idea that personal growth is truly valued in the organization. Second, to the extent that individuals respond to what is offered, it will provide an "on the job training" that is vital to developing personal mastery. As with any discipline, developing personal mastery must become a continual ongoing process. There is nothing more important to an individual committed to his or her own growth than a supportive environment. An organization committed to personal mastery can provide that environment by continually encouraging personal vision, commitment to the truth, and a willingness to face honestly the gaps between the two.
Some of the practices most conducive to develop one's own personal mastery are - developing a more systematic worldview, learning how to reflect on tacit assumptions, expressing one's vision and listening to other's visions, and joint inquiry into different people's views of current reality. These need to be embedded in the disciplines for building learning organizations. So in many ways, the most positive actions that an organization can take to foster personnal mastery involve working to develop all five learning disciplines in concert.
The core leadership strategy is simple: be a model. Commit ting yourself to your own personal mastery will always open people's minds somewhat, and encourage others in their quest for personal mastery.

Mental Models

Developing an organization's capacity to work with mental models involves both learning new skills and implementing institutional innovations that bring these skills into regular practice. Approaches to mental models are different but their work required the same critical tasks. First, they had to bring key assumptions about important business issues to the surface. This goal is vital to any company, because the crucial mental models in any organization are those shared by key decision makers. Those models, if unexamined, limit an organization's range of actions to what is familiar and comfortable. Second, the two companies had to develop the face - to - face learning skills. This was of special concern because organizations wanted managers throughout the company to be skillful with mental models.
Both sides of the discipline - business skills and interpersonal issues - are crucial. On the one hand, managers are inherently pragmatic. They are most motivated to learn what they need to learn in their business context. Training them in mental modeling or balancing inquiry and advocacy, with no connection to pressing business issues, will often be rejected. It may lead to people having academic skills they do not use. On the other hand, without the interpersonal skills, learning is still fundamentally adaptive, not generative. Generative learning requires managers with reflection and inquiry skills, not just consultants and planners. Only then will people at all levels surface and challenge their mental models before external circumstances compel rethinking.

System thinking is equally important to working with mental models effectively. Contemporary research shows that most of our mental models are systematically flawed. They miss critical feedback relationships, misjudge time delays, and often focus on variables that are visible or salient not necessarily high leverage. Most players either don't see or don't take into account in their decision making the critical reinforcing feedbacks that develop when they panic.
The payoff from integrating system systems thinking and mental models will be not only improving our mental models but altering our ways of thinking: shifting from mental models dominated by events to mental models that recognize long-term patterns of change and the underlying structures producing those patterns.

Shared Vision

Shared vision is not an idea. It is rather a force of impressive power. It may be inspired by an idea, but once it goes further, it is compelling enough to acquire the support of others. People begin to see as if it exists. Shared vision is vital for an organization because it provides the focus and energy for learning. While adaptive learning is possible without vision, generative learning occurs only when people are striving to accomplish something that matters deeply in them.

Organizations intent on building shared visions continually encourage members to develop their personal visions. If people do not have their own vision then they sign up someone's else. The result is compliance and never commitment. On the other hand, people with a strong sense of personal direction can join together to create a powerful synergy toward what I or we truly want.
Personal mastery is the bedrock for developing shared visions. This means not only personal vision, but also commitment to the truth and creative tension. Shared vision can create levels of creative tension that go far beyond individuals' comfort levels. Those who will contribute the most toward realizing a lofty vision will be those who can hold this creative tension remain clear on the vision and continue to inquire into current reality. They will be the ones who believe deeply in their ability to create their future, because that is what they experience personally.

Building shared vision is actually only one piece of a larger activity, developing an enterprise's vision, purpose or mission and core values.
This answers three critical questions: "What?" / "Why?" / "How?".
· Vision is the "What?" - the picture of the future we seek to create.
· Purpose or mission is the "Why?" - the organization's answer to the question, "Why do we exist?"
· Core values answer the question "How do we want to act, consistent with our mission, along the path toward achieving our vision? They describes how the company wants life to be on a day-to-day basis, while pursuing the vision.

Building shared vision without system thinking is a shortcoming. Vision shows what we want to create. System thinking reveals how we have created what we currently have. The problem lies not in shared visions themselves, so long as they are developed carefully. The problem lies in our reactive orientation toward current reality. Vision becomes a living force only when people truly believe that they can shape up their future. Today most managers do not experience that they contribute in creating the current reality. So they do not see how they can contribute toward changing the reality. But as people in an organization begin to learn how existing policies and actions are creating their current reality, a new and more fertile soil for vision develops.

TEAM LEARNING

Within organizations, team learning has three critical dimensions. First, there is the need to think insightfully about complex issues. Here teams must learn how to tap potential. Second, there is the need for innovative and coordinated action. Outstanding teams in sports or great jazz or in an organization develop the same sort of relationship - operational trust. Here each team member remains conscious of other team members and can be counted on to act in ways that complement each other's actions. Third, there is the role of the team members on other teams. Learning team continually fosters other learning tams through inculcating the practices and skills of team learning more broadly. Though it involves individual skills and areas of understanding, team learning is a collective discipline. The discipline of team learning involves mastering the practices of dialogue and discussion. In dialogue there is the free and creative exploration of complex and subtle issues, a deep listening to one another and suspending of one's own views. By contrast, in discussion different views are presented and defended and there is a search for the best view to support decisions that must be made at the time. Dialogue and discussion are potentially complementary, but most teams lack the ability to distinguish between the two and to move consciously between them.

Team learning also involves learning how to deal creatively with the powerful forces opposing productive dialogue and discussion in working teams. Contrary to popular myth, great teams are not characterized by an absence of conflict. On the contrary one of the reliable indicators of a team that is continually learning is the visible conflict of ideas. In great teams conflict becomes productive. There may be conflict around the vision. In fact the essence of visioning process lies in the gradual emergence of a shared vision from different personal visions. Even if people have common vision they have different ideas of implementing. The free flow of conflicting ideas is critical for creative thinking. On the other hand in an ineffective team either there is no conflict or the members are highly polarised.

How can the internal politics and game playing that dominate traditional organizations be transcended?

Challenging the grip of internal politics and game playing starts with building shared vision. Without a genuine sense of common vision and values there is nothing to motivate people beyond self-interest. But we can start building an organizational climate dominated by merit rather than politics - where doing what is right predominates over who wants what done. But a nonpolitical climate also demands openness - both the norms of speaking openly and honestly about important issues and capacity continually to challenge one's own thinking. The first might be called participative openness, the second reflective openness. Without openness it is generally impossible to break down the game playing that is deeply embedded in most organizations. Together vision and openness are the antidotes to internal politics and game playing.
When organization foster shared visions, they draw forth this broader commitment and concern. Building shared vision leads people to acknowledge their own larger dreams and to hear each other's dreams. When managed with sensitivity and persistence, building shared vision begins to establish a sense of trust that comes naturally with self-disclosure and honestly sharing our highest aspirations. It can be started with people sitting in small groups and asking them to talk about them. When people begin to state and hear each other's visions, the foundation of the political environment begins to crumble - the belief that all we care about is self-interest. Organizations that fail to foster genuinely shared visions or that foist unilateral visions on their members and pretend that they are shared, fail to tap their broader commitment.

How can an organization distribute business responsibility widely ans still retain coordination and control?

Learning organization will increasingly be localised organization extending maximum degree of authority and power as far from the corporate centre. This means localness i.e. moving decisions down the organizational hierarchy and designing organization business units where employees confront the full range of issues and dilemmas intrinsic in growing and sustaining their business enterprise. This unleashes employee's commitment and freedom to act, to try out their own ideas and be responsible for producing results. This is very vital where things change rapidly. Local actors often have more current information on customer preferences, competitor actions, and market trends. So they are in a better position to manage the continuous adaptation that change demands.
But the bigger challenge is how to synergise between business units and collaborate efforts towards common corporate wide objectives.

Learning organizations invest in improving the quality of thinking, the capacity for reflection and team learning, and the ability to develop shared visions and shared understandings of complex business issues. It is these capabilities that will allow learning organizations to be both more locally controlled and more well coordinated than their hierarchical organizations.

The shift to localised organization gave birth a new role for the corporate managers. They will now be stewards for the organization, guiding ideas and evolving visions, missions and core values. They need to be researchers and designers also. As researcher they need to understand the organization as a system and the internal and external forces that drives change.

Corporate managers still will be involved in many important decisions, often in conjunction with other corporate and local managers. Designing the organization's learning processes is a unique role, which cannot be delegated. It cannot be done by the local managers because the local managers are too involved running their businesses and have much less breadth in their perspective to see the major and long term issues and forces that will shape how the business evolves.