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    -------------------------- 
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 03. MANAGEMENT 
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      J. SUPPORTS
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 05.   MUSIC 
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         B. COLOUR CDs
         C. DIATONIC
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Socio-Economic Development Acceleration

1.  PRODUCTIVITY  & MANAGEMENT   DECISION  ( 03A )

• PRODUCTIVITY = SED GOALS  /  INPUT  > 1  & SED GOALS  /   OUTPUT  > 1
  SUBJECT TO OUTPUT  / INPUT > 1
  (SED = SOCIO-ECONOMIC DEVELOPMENT UNITS)
• SOCIAL RATE OF RETURN IS IMPORTANT THAN QUANTUM RATE OF RETURN.
• INTANGIBLE ELEMENTS  ARE IMPORTANT THAN  TANGIBLE ELEMENTS.  
   (PSYCHO-SOCIO-INTER NATIONAL-UNIVERSAL)  
• MANAGEMENT DECISIONS ARE OPTIMUM WHEN 
  SED GOALS  /  INPUT DECISIONS > 1  &  
  SED GOALS  /  OUTPUT  DECISIONS > 1, 
  SUBJECT TO  OUTPUT DECISIONS / INPUT DECISIONS > 1
  ====================================================
  Universally Applicable to All Developed/Developing/Under-Developed Nations. ============================================================
  SEE :  03B. SUMMARY  /  03C. DETAILS   /  03D. SLIDE SHOW /
            03E. SUPPORT  /   03N. NOBEL NOMINATION 
  Viewer's Views : 03F. Management / Productivity 
  ===================================================

• View the Summary  of this in Social Science Research Network (SSRN), Rochester, Ny 14618, USA   http://www.ssrn.com/author=360079

• View in Research Papers in Economics Net Work (RePEc)  http://ideas.repec.org/e/psu50.html

• ==================================================

• This paper was published by the author in  ALTIJARAH, an accredited monthly journal  of the Sharjah Chamber of Commerce & Industry, Government of Sharjah, UAE. May 2001, September 2001 and March 2002  issues, in a serial.

• Reproduced with permission in the "ICFAI Journal of Managerial Economics", ICFAI University, Hyderabad, India. August 2004 issue. Pages 25 to 41.

03D       SHOPPING        GO TOP

2.   SOCIO-ECONOMIC   DEVELOPMENT  ACCELERATION ( 10A)

• DOMESTIC INVESTMENTS THROUGH DOMESTIC SAVINGS (INDIVIDUAL / CORPORATE / GOVERNMENT, EVEN THOUGH FOREIGN TO START WITH) 
  (EXOGENOUS CIRCLE)
• DOMESTIC  HUMAN POTENTIAL TO MAN THE DOMESTIC TECHNOLOGY (LATEST TECHNOLOGY MODERATED TO SUIT LOCAL ENVIRONMENTS) (ENDOGENOUS CIRCLE)
• SYNCHRONISE EXOGENOUS AND ENDOGENOUS CIRCLES & OPTIMISE THEIR DIMENSIONS.
  ===========================================================
  Universally Applicable to All Developed/Developing/Under-Developed Nations
  ======================================================
  SEE  :  10B.  SUMMARY  / 10C. DETAILS  /  10D. SLIDE SHOW /
               10E. SUPPORT    / 10N. NOBEL NOMINATION 
               10F. Viewer's Views (SED)  
  =====================================================
• View the Summary  of this in Social Science Research Network (SSRN), Rochester, Ny 14618, USA at
  http://www.ssrn.com/author=360079
• View in Research Papers in Economics Net Work (RePEc) at http://ideas.repec.org/e/psu50.html
• This paper was published by the author in  ALTIJARAH, an accredited monthly journal of the Sharjah Chamber of Commerce & Industry, Government of Sharjah, UAE.  April to July 2000 issues, in a serial.

10D     SHOPPING      GO TOP

  P1 .  PYRAMID FOR POWER

01) THE PYRAMID 
Pyramid is a structure of 3 or 4 triangles meeting in an apex from a triangular or square base.  It is a top narrow and bottom broad structure,  well founded and stable. Any vibration on the tip is expanded at the bottom (Mega phone). Inversely it acts a funnel to send all inflows from the bottom to the apex. That is why any organization (Government or Private) gets the power and functions with a Pyramidal management structure. 
02)  THE MANAGEMENT STRUCTURE.
The Pyramid  structure is suitable, stable and result oriented for any Private corporate sector and the Government. The components are,
(A) The top  Authority (A)  is at the tip (Chairman, CEO, Managing Director or the President). 
(B) The authority is delegated to the next level of a few Decision makers (D) in one or more echelons. 
(C) These decisions are implemented by many Work personnel (P) at the broad base (the office or factory or service points).
(03)  SUPPORTS.
These work infrastructure personnel are supported with Finance (F)  by way of Investments (Plant & machinery) and  Materials (M),  the input  for the Products (Car, Cloth, Soap etc…) or services (Entertainment, Insurance, Maintenace/repair, Transportation etc…).
(04)  THE INPUTS.
(A) The direct inputs (material; personnel time;  work support like use of machinery, power etc..) contribute to the Cost (C) of  the products or services.
(B) The indirect   inputs (over heads like rents, sales promotion, salary of the office and management personnel etc..), applicable to all the products or services, contribute  to the Expense (E) .  
(05)  THE OUTPUT. 
(A) The sale of items or provision of services, result  in getting an Income (I) from the public Socio-Economic groups (individuals, house holds or organizations).
(B)  The arithmetic of {Income (I)  – [Cost (C)+Expence(E)]} or the profits, contributes to the financial return of the corporate or government efforts.
(C) If “I” is more than “C+E” then the result is a financial  Profit.. Otherwise, If “I” is less than “C+E” then the result is a financial  Loss.
(D)  Profit is a surplus and support for growth. Hence the private corporate units aim and function towards a “Profit”.
(E)  Government, with a target to uplift the Socio-Economic groups, function with a “No profit/No loss” concept. But a nominal profit orientation is mandatory to get a positive financial return and protect the government from bankruptsy.
(F)  A Loss, to either a private or government sector is like an injury  to the organization.
(06) NO-LOSS ORIENTATION
Since the profit or loss is an arithmetic of  {I – (C+E)},  profit direction is to increase I or reduce C + E.
(A)  Say,  a sector (private or government) gets an income I = 1,500 (Quantum of sales/service 10 X Price per unit 150), with the  current Cost (C)  1,200 +  Expense (E)  800 = 2,000. The loss is = (1,500 – 2,000) = -500. To come out of the loss, the options are
Quantity  leverage.
a)  Increase the sales quantity from 10 to 20, through sales promotion strategies (advertisements, campaigns, customer incentives, new packing etc, .) . The sales promotions may increase expenses (E) from 800 to 1,000. The cost (C) for the 10 additional products (20 - 10)  may increase from 1200 to 1400.  Then theoretically, I = (20 X 150) = 3,000. The Cost  is 1,400 +  Expense  1,000 = 2,400. Profit = (3,000 – 2,400) = 600. This may sound good.
b) But practically it is difficult to double the sales, as the customer responses, reactions and competitor's strategies are un predictable !!. The sales promotion may or may not work.
Price leverage.
a)  Increase the unit price to 300.  Then theoretically, I = (10 X 300) = 3,000. The Cost  1,200 +  Expense 8,00 = 2,000. Profit = (3,000 – 2,000) = 1,000.
b) But  practically, the demand may go down with price increase. The sale could be 4 units instead of 10.  Then  I = (4 X 300) = 1,200, Tne Cost + Expense = 2,000. Resulting loss = 1,200 – 2,000 = -800.   
c)  The reverse strategy is to reduce the unit price to 100. The demand may increase from 10 to  25, due to the price reduction.  Then I = 25 X 100 = 2,500. Cost + Expense = 2,000. Profit = 2,500 – 2,000 = 500.
Cost+Expense leverage.
Keeping the price constant, progressively reduce the (Cost +  Expense).
a) Cost reduction  could be done by a “value analysis” of the input materials / services methods. (replace expensive stainless steel parts with pressure die-casted aluminium alloy), keeping the quality and performance same or better… provide bulk group service instead of individual service etc…).
b) Expense reduction by motivating the work group to produce or service more in a given time. This  could  also be supported by new technology like fast producing machinery, introducing email services etc…  This is a leverage through   efficiency and quantum productivity  optimisation.  
c)  For an income I of 1,500 (10 X 150), if the Cost+Expense is reduced from 2,000 to 1,100, the result will be a profit of 400 (1,500 – 1,100) .                                      GO TOP
*************************************************
     P2 .  PYRAMID FOR PROFITS  (PUSH - DOWN APPROACH)
LEGENDS :          A  - Authority.  C  - Cost.       D  - Decision makers
 E  - Expence.   F - Finance.       I  - Income.   M  - Material.
 P  - People. 
=================================================
Profit  management  with an unilateral financial and quantum rate of return approach,  uses a pyramidal organisa-tional structure with the “Tip on the Top” orientation for “Profits”. The profit generation methodology is the same as in P1 above.  In this approach, the authority A is on the top, management decision group D is in the middle, the work group personnel P are at the broad based bottom, The product/service output are provided to the national Socio-Economic group (Customers) spread below (out of the) pyramid.
The profit or loss is diverted to the top authority A, and subsequent actions are left to them  (applicable to the corporate or government  sector units,  in a narrow and in closed wall apex of the pyramid). The action summary is -
A) Investments are made from any source, without any motivation or consideration of the domestic savings from the people within the organisation or the socio-economic infrastructure, below the bottom of the pyramid.
B)  Any technology considered as suitable, is selected and manned by alien personnel (including foreigners) without any attempt to upgrade the domestic manpower capabilities, inside and below the bottom of the pyramid.
C) Productivity and Management decision effectiveness are measured with reference to the financial and quantum returns, and not with reference to  any positive contribution to the socio-economic groups, within and below the bottom of the pyramid.
D) Impact of the intangible components (Psycho-Socio-International-Universal),  on the organisation, nation and the socio-economic groups, within and below the bottom of the pyramid  are never considered in the overall decisions by the authority A on the top ( in a narrow and in closed wall apex) of the pyramid.                GO TOP
*************************************************
     P3 .  PYRAMID FOR PROSPERITY  (PUSH-UP  APPROACH)  
LEGENDS :          A  - Authority.  C  - Cost.       D  - Decision makers
 E  - Expence.   F - Finance.       I  - Income.   M  - Material.
 P  - People. 
=================================================
A Prosperity manage-ment with multilateral (Economic, Financial, Social and Technical) rate of returns  approach,  uses an inverted pyramidal organisational structure, with the “Tip at the Bottom” orientation for “Prosperity”. The profit generation methodology is the same as in P1 above.  In this approach, the operating people P  are  on the broad based top, are in  direct contact with the Socio-economic group (with feed backs), management decision group D is in the middle, the authority A is  at the protruding bottom, The product/service demands and their prices/contributions to the society and  national Socio-Economic group (Customers) spread above (out of the pyramid), are directly estimated. The profit or loss, due to the management decisions, made by the group D in the middle,  is diverted to the top authority A at the bottom tip.  Appropriate corrective actions are left to the top authority of the  (corporate or government  sector unit),  with reference to the contribution to the socio-economic group on the top.  The action summary is -
A) Investments are made from the domestic savings from the people within the organization and the socio-economic infrastructure, above the broad based top of the pyramid.
B)  Latest technology, moderated to suit the domestic conditions are selected, domestic manpower capabilities  are upgraded (inside and  above the top base of the pyramid.)
C) Productivity and Management decision effectiveness are measured with  reference to  the  positive contribution to the socio-economic groups, above the broad based top of the pyramid. This is in addition to the measurement of the effectiveness with reference to the Quantum ratios.
D) Rate of return on the production/service operations are worked out with reference to 4 guidelines (Economic, Financial, Social, Technical).
E) Impact of the intangible components (Psycho-Socio-International-Universal), on the nation and the socio-economic groups, above the broad base of the pyramid are considered in the overall decisions by the authority A,  on the bottom tip.                                   GO TOP

MANAGEMENT DETAIL