satyam - group 6

8/2/2019 Satyam - Group 6

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GROUP 6

MEMBERS:

HISHAMRAJESHGEETHIKAGANANYSHANIJATHSHRUTHI


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A Recent Corporate Disaster:

A Deeper Insight

ByGroup 6

MBA 3rd Semester (A1)


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In todays world corporate scam is not at all a new happening. Its

quite common to all of us.

The emerging world is beginning to get its own share of blue

chip scams as the list keeps growing longer and longer.

Last year one of the biggest scams to rock the corporate world

was 100% home grown Indian. Satyam Computers was always a

well known brand name.


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WHY DID IT HAPPEN?

Investors of Sathyam computers and general public got

shocked when the chairman of India's fourth largest IT

company B Ramalinga Raju announced that the

company's profit figures have been falsely inflated over

the years.

He wrote a 5-page letter to the former Board outlining the

deception in detail.


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Truth is that Raju managed this enormous fraud even though

Satyam did everything according to the rulebook.

An international firm audited its books, accounts were

declared in accordance with Indian and US standards.

Its board included some independent directors with excellent

credentials, including a Harvard business school professor and

a former federal cabinet secretary.


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All that analysts and experts could manage by

way of explanation was that there were "systemic

flaws" in accounting and audit practices.


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Raju's biggest violations were

Fudging Numbers: Pumped up revenue, profit, bank deposits and cash

reserve numbers.

Undisclosed Pledges: Procured a loan of Rs. 1,230 crore without

disclosure.

Insider Trading: Sold most of his 26% stake while tweaking numbers to

keep the share price high.

Take over Code: Probable violation if he knew when his stake fell below

5%

Foreign Exchange Management Act: Converted fictitious export

income into cash.


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Raju's Educational Background and

Corporate Career.

Ramalinga Raju did his B. Com from Andhra Loyola College atVijayawada and MBA from Ohio University, USA.

He also did an Owner / President course at Harvard. Way backin 1977 he started his venture with a spinning and weavingmill.

Then he moved into the construction business. Ten years on, in

1987, he founded Satyam Computer Services.

Satyam became the first company to enter the Indian internetservice market with the brand Satyam Infoway (Sify)


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his company attracted a variety of national and international

awards in the next 12 years .These include:

Ernst & Young Entrepreneur of the Year Services Award

1999Dataquest IT Man of the Year Award 2000

CNBCs Asian Business Leader - Corporate Citizen of the

Year award in 2002

E&Y Entrepreneur of the Year 2007 (revoked after the scam)

Golden Peacock Award for Corporate Governance 2008


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What made him do so ?

Lack of education was not the reason whyRamalinga Raju did what he did

Greed is what triggered the Satyam scam.- Greed for money

- Greed for power,

competition,success,

prestige


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View of Mr. Narayana Murthy on

Satyam Scam

The IT industry has done a pretty good job of raising

the country's image in the world and Satyam has

hurt it

Satyam - Company with a feudal culture

There is opacity due to a centralised authority and insuch an environment best practices are subordinated

to quick profits


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INDIAN ETHOS AND VALUES

INMODERN MANAGEMENT


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What constitutes Indian

Ethos?


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Set of beliefs, ideas, etc. about social

behaviour and relationship of a person or

group.

The moral ideas and attitudes that belong to

a particular group or society.


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Formally, the body of knowledge whichderives its solutions from the rich and huge

Indian system of ethics (moral philosophy) is

known as Indian Ethos in Management (IEM).


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Is IEM some kind of Hindu concept ofmanagement?


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The salient ideas and thoughts of Indian Ethos inManagement revealed by our ancient scriptures are:

Atmano Mokshartham, Jagat hitaya cha: All work is anopportunity for doing good to the world and thusgaining materially and spiritually in our lives.

Archet Dana manabhyam: Worship people not onlywith material things but also by showing respect totheir enterprising divinity within.


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3) Atmana Vindyate Viryam: Strength and inspiration forexcelling in work comes from the Divine, God within,through prayer, spiritual readings and unselfish work.

4) Yogah karmashu Kaushalam, Samatvam yoga uchyate:He who works with calm and even mind achieves the most.

5) Yadishi bhavana yasya siddhi bhavati tadrishi: As we

think, so we succeed, so we become. Attention to meansensures the end.


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Parasparam bhavayantah shreyah param bhavapsyathah: Bymutual cooperation, respect and fellow feeling, all of usenjoy the highest good both material and spiritual.

Tesham sukhm tesham shanti shaswati: Infinite happiness

and infinite peace come to them who see the Divine in allbeings.

8) Paraspar Devo Bhav: Regard the other person as adivine being. All of us have the same consciousness thoughour packages and containers are different.


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Basic principles of Indian Ethos for Management

Immense potential, energy and talents for perfection as humanbeing has the spirit within his heart.

Holistic approach indicating unity between the Divine (The Divinemeans perfection in knowledge, wisdom and power), individual self

and the universe.


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Subtle, intangible subject and gross tangibleobjects are equally important. One must develop

ones Third Eye, Jnana Chaksu, the Eye ofWisdom, Vision, Insight and Foresight. Innerresources are much more powerful than outerresources.

Divine virtues are inner resources. Capital,materials and plant & machinery are outerresources.


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Karma Yoga (selfless work) offers double benefits,private benefit in the form of self purification andpublic benefit.

Yogah Karmasu Kaushalam - Excellence at workthrough self-motivation and self- development withdevotion and without attachment.

Co-operation is a powerful instrument for teamwork and success in any enterprise involving collectivework.


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Principles of IEM are universally applicable.

IEM can help develop an effective and holisticmanagement pattern which will assure all round growth in

productivity, marketing and profitability.

This will help in synchronizing private and public benefitsand encourage individuals to lead an enriched quality of lifetogether with worldly achievements.

The best form of management has to be holistic and value

driven which is the objective of IEM.


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Ch t i th f d ti f l


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Character is the foundation of values

The sequence being

Character

Values

Attitudes

Behaviour


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Human Values is the sum total of

qualities like

Truthfulness,

Integrity

Gratitude

Humbleness

Forgiveness

Patience

Transparency

Charitableness

Simplicity


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Human Values make a personAntarmukhi

(interiorized)

Skills will make him more and more Bahirmukhi

(exteriorized).

Human values transcend moral, ethical and

spiritual values


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Values v/s Skills

1. To become, we need values. To do, we need skills.

2. Becoming (needing values) must precede doing (needingskills). Values should act as the basis of the skills acquired.

3. Values are the means of perfection. Skills must have soundsystem of values as the base. Otherwise, one can manipulateskills for ulterior motives.

4. Values are internal, dealing with internal development of aperson, purifying mind and heart. Skills on the other handonly make a person proficient. Values are the means ofperfection of personality


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5. The field of values is governed by union, holism and

relatedness. More often than not, skills are used to bring

about division, fragmentation and separation.

6. Values bring about excellence and universal good. Skills seeus through mechanics of management.

7. Skills are not enduring, values are.

8. Skills change with passage of time. Policy is flexible,

principles and values are not.We have permanent

fundamental values.


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Skills must pass through the corridors of values and

the corridors have to be kept not dark and untidy, but

well lit and clean.


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Value-Oriented Holistic

Management

It is the essence of the Indian Management thought

Enriched by the rich Indian heritage and culture;

It is based on values supplemented by adequate

skills

This time tested approach to Management can help

stop the rot that has crept into individuals and

organizations


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It can be looked from the following two

approaches

1)Rationalis a bottom up approachputting

together the fragments or components or

constituent elements and thus construct the

whole.

2)Theperceptive approach is a top down

approachsee the whole first and then go into

the constituent elements. This is considered to be

real holism.


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Indianizing Total QualityManagement

Sashkin and Kiser have defined TQMas Creating an

organizational culture committed to the continuous

improvement of skills, teamwork, processes, product and

service quality, and customer satisfaction.

TQM stresses three principles: customer satisfaction,employee involvement, and continuous improvements in

quality, which some refer to as the quality trilogy.


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TQM is also said to be based on four fundamental

commitments:

1. Commitment to the customers total satisfaction

2. Commitment to understanding and improving the

organizations processes

3. Commitment to employee improvement

4. Commitment to data-based decision making


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HRD Interventions in TQM

TQM is now directly equated with HRD and they are

regarded as two sides of the same coin.

we are talking of primarily two thingsEmphasis on

Quality of Life and Focus on Quality of Work Life.

HRD intervention is needed to bring about Total Quality

People,


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Stress & Indian Ethos

Stress is a dynamic condition in which an individual is

confronted with an opportunity,constraint, or demand

related to what he or she desires and for which the outcomeis perceived to be both uncertain and important.

More typically, stress is associated with constraints and

demands.


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Causes of Stress

Mostly external and outside our control

Stress generating events & situations in life

Mostly internal and by and large within our control

(a) Strong negative emotionsthe 5 As of anger, ambition, anxiety,

apprehension and arrogance.(b) Materialistic world view including a hedonistic culture that

promotes crass consumerism and is sustained by some powerful

unwholesome emotions like selfishness, greed, grabbing mentality,

envy, egocentricity, etc.


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(c) Living an impure, illegal and unethical life ruled by

the senses

(d) Personality composition / make-up

(e) Interplay of duality that is a fact of life and human

existence


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Consequences of Stress

Physiological

Emotional

Behavioral

Cognitive


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Methods of Stress Prevention

Effective management of the 5As

Developing a spirit of progressive renunciation

The ethico-moral law of cause and effect (The

Theory of Karma)

Conscious efforts towards developing a healthy

personality


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Managing Anger

Anger could be both a cause and an effect of stress. There are

two methods for dealing with anger.

The Modern (Western) Approach which says accept &

express

The Classical (Eastern) Approach which says deny & reject.

There is almost complete unanimity among the psychologists

that the classical approach is valid.


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The Indian View on Stress

In ancient Indian literature some of the terms used are bishad, klesha and dukh

Klesha refers to the stressor aspect

Ancient literature does talk of tritap which refers to three kinds or rather

sources of distress and miseries (dukhatraya) in human life, mainly

Adhibhautikadue to beings, i.e., wild animals, reptiles and cruel humans

Adhidaivika due to Acts of God, i.e., natural calamities which are

ordinarily beyond human control

Adhyatwikarelating to ones own body and mind, i.e., physical and mental

illness


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The Dwandik Theory of Stress

It is a contribution from The Gitawhich says that stress

arises from the universalphenomenon of the constant

interplay of dualities or opposites or contraries in thefabric of lifeof our existenceboth the outer/physical

world (e.g., night and day or hot and cold) and the

inner/psychological domain (e.g., pleasure and pain orsuccess and failure).


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The Gita suggests two alternative approaches to deal with

Dwanda or Dualities, Samattwa (i.e.,treating the two as equal)

and Nirdwandwa (i.e., transcending the dualities).

The first approach suits the Bhakta and is called the Bhakti-Yoga.

The second is for the Gyani and is called the Gyan-Yoga.

The first approach is relatively easier.


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Few ways to stay way from stress

Control anger by all means

Exercise regularly

Have good food habits Work efficiently but avoid competition with others

Dont be a workaholic

Look for sat sangh(company of wise and good people)

Remember The Theory of Karma Be content with whatever you have

satyam - group 6

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