Managerialism for Economic Development: Essays on India

179 Pages·1968·4.91 MB·English

by  S. Benjamin Prasad Ph. D.

MANAGERIALISM FOR ECONOMIC
DEVELOPMENT
STUDIES
IN SOCIAL LIFE
EDITOR:
GUNTHER BEYER
ADVISORY BOARD
P.J. BOUMAN,
University of Groningen
JEAN GOTTMANN,
University of Paris
WALTER HOFFMANN,
University of Miinster
LIVIO LIVI,
University of Rome
MANAGERIALISM FOR
ECONOMIC DEVELOPMENT
Essays on India
S. BENJAMIN PRASAD, Ph. D.
Associate Professor Ohio University
and
ANANT R. NEGANDHI, Ph. D.
Associate Professor Kent State University
I I
MARTINUS NIJHOFF / THE HAGUE /1968
ISBN-13:978-94-011-7501-2 e-ISBN-13:978-94-011-7499-2
DOl: 10.1007/978-94-011-7499-2
© 1968 by Martinus Nijhoff, The Hague, Netherlands
Softcover reprint oft he hardcover 1st edition 1968
All rights reserved, including the right to translate or to
reproduce this book or parts thereof in any form
Economic Development is not
the main objective of life on this
planet ... But as a means it is not
to be underrated ... If we want
economic developmentfor this pur
pose ... we should want also to
develop the effectiveness and qual
ity of management ... But you
could have management without
development, but you cannot have
development without manage
ment.
Lord Lionel C. Robbins
FOREWORD
That a developing economy needs management even more
than resources is now becoming abundantly clear to all students
of growth. There was perhaps a facile assumption in the earlier
years that the rate of growth in a developing country depended in
almost direct proportion to two factors: the resources available
within the country, the land, water, minerals, savings and other
relevant inputs; and the initial importation of aid from without,
in terms of capital and skills not available within - but the factor
of good management was somehow ignored, as also the attitudes
of the people and their leadership to growth. These two factors
are now coming into their own as being crucial to development
and there is a new appreciation of the need for a good supply of
well trained managers and providing them with an environment
that is permissive and encouraging.
These essays are a timely analysis of this new-felt need, and a
valuable source of new leads and hypotheses, for they examine the
multi-facets of the problem of India's growth, but with keeping
the professional manager squarely in the middle of the study. And
after all it is he upon whom the major responsibility for develop
ment and growth will depend, given the chance.
The contributors to this symposium are seven young Indians,
all management educators of distinction at universities in the
United States, and one hopes that they will themselves pick up
some of the leads and pursue them.
P. L. Tandon, Visiting Regents' Lecturer,
Chairman, Hindustan Lever Ltd., Graduate School of Business
Bombay, India Administration,
University of California
Los Angeles, California
TABLE OF CONTENTS
Foreword . . . VU
Preface . .. . X
List of Tables. XUl
PART 1. MANAGERIALISM: PAST, PRESENT, FUTURE 1
1. Introduction . . . . . 3
2. Old Style Management. . . . 8
3. New Breed of Managers . . . 20
4. Relevance of Western Theories 45
5. Applicability of American Management 65
6. Organizational and Manpower Problems. 81
PART II. RELATED DIMENSIONS ....•..••... 95
7. The Small Entrepreneur and Economic Development 97
8. Economic Development and Management Education 102
9. Private Foreign Investment and Economic Development 113
10. Foreign Collaboration and Industrial Development 130
11. Human Resource Development for Economic Growth 139
12. ConcI usion: General Issues . . . . . . . . . . . . 151
Appendix: "The Application of Industrial Psychology in
Developing Countries" 157
Index ......... . 166
LIST OF TABLES
1. Education among four generations of Indian managers 23
2. Career paths of four generations of Indian managers 25
3. Occupation of fathers of four generations of Indian
managers. . . . . . . . . . . . . . . . . . . . 27
4. Religions of four generations of Indian managers and
Indian male population . . . . . . . . . . . . . 27
5. Religions of the Managers and Owners of various groups
of concerns in the Indian private sector. . . . . . . 28
6. Castes of four generations of Indian managers . . . . 30
7. Regional Origin offour generations ofIndian managers 32
8. Rank order of factors influencing foreign investments:
Questionnaire response. . . . . . . . . . . . . . 116
9. Rank order of factors influencing foreign investments:
Questionnaire response. . . . . . . . . . . . . . 116
10. Net Profits as a proportion of net growth: Indian and
Parent companies compared for three major groups,
1956-1961 . . . . . . . . . . . . . . . . . . . 118
11. Foreign collaborations in Indian Industry: countrywise
for selected years . . . . . . . . . . . . .. 132
12. Foreign collaborations with Top ten countries.. 133
13. Number of foreign collaborations: Industrywise, for
selected years and selected industries . . . . . . . . 135
ABOUT THE CONTRIBUTORS
SAGAR C. JAIN, Ph. D. from Cornell University, is an Assistant
Professor at the Graduate School of Business, University of North
Carolina, Chapel Hill, North Carolina.
AsHOK KAPOOR, Ph. D. from the University of North Carolina,
is an Assistant Professor at the Graduate School of Business, New
York University.
S. KANNAPPAN, Ph. D. from Tufts University, is an Associate
Professor of Economics at Michigan State University. He is the
author of Business Performance Abroad: The Case Study if Aluminium
Limited in India (1962), and the co-author of Industrial Relations in
India (1966).
ANANT R. NEGANDHI, Ph. D. from Michigan State University,
is on the faculty of the Kent State University. He is the author
of Private Foreign Investment Climate in India (1966), and the co
author of The United States Overseas Executive (1967).
SOM PRAKASH, Ph. D. from the University of Virginia, is an
Associate Professor of Economics at Duquesne University, Pitts
burgh.
S. BENJAMIN PRASAD, Ph. D. from the University of Wis
consin, is an Associate Professor at Ohio University. He is the
editor of Management in International Perspective (1967), and
Modern Industrial Management (1967).
DARAB UNWALLA, Ph. D. from the University of Bombay, is
an Associate Professor at the Graduate School of Business Ad
ministration, Michigan State University. He is the author of
Textile Technocracy, and co-author of The Enterprising Man (1964).
C. N. VAKIL is Professor Emeritus, University of Bombay,
and the noted Indian economist. He has authored several books.
PREFACE
The new countries of Asia and Mrica are now concerned, as
were the countries of Western Europe in the late eighteenth and
early nineteenth centuries, with understanding the process on
which economic and social progress of their peoples depends. In
the years since World War II, in almost all parts of the literate
world, there has been an exceedingly active discussion of "eco
nomic development". This is especially true of the United States
books, articles, symposiums, courses, and research projects in the
general area of "economic development" attest to this obser
vation. As John K. Galbraith noted a few years ago, "Americans
can be more than a little proud of the intensity of interest in the
economics of development in these last years in the United
States."
There is a plethora of literature in the area of economic de
velopment theories, economic planning and economic programm
ing. It has been duly recognized that the underdeveloped coun
tries need economic development and the State ought to play the
role of the entrepreneur wherever there is a need. The under
lying premise on the part of many scholars and national policy
makers appears to be that development is feasible and that the
countries should not only aspire for but plan to achieve sustained
economic growth or development. The popular instrument for
formulating national economic goals has been the Five-Year
plans which chart out the strategies for economic development.
This basic premise is valid. But we also think that there appears
to be a great need for effective implementation of the planned
projects as much as there is a need for careful economic planning.
The scope of what is generally referred to as economic develop
ment is vast. Our initial assumption is that economic develop
ment, especially as it takes place through industrial projects, has
been thwarted in many developing countries as a result of in-