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GANDHIAN MARXISM WITH ETHICS AND VALUES OF SUSTAINABILITY COEXISTING WITH CAPITALISM: LAL SALAM TO GOVERNANCE OF DAYAKAR REDDY Presentation by  Dr. K. Prabhakar &  P. Srilatha
International Conference on Entrepreneurship and New Venture Creation;IIM(B) Gandhian Marxism  ,[object Object],[object Object],[object Object],[object Object],Appears like an oxymoron
At present the very human existence is in question – in any part of the world with common problems and issues …    Global warming , Water scarcity , caste politics , inequalities based on religions, distrust among people and within families…   The present case study  will demonstrate how simple living people travelled through  rough patches and achieved great success by overcoming the world’s common challenges in their  small  space…  International Conference on Entrepreneurship and New Venture Creation;IIM(B)
Red  Salute – Lal Salam  ,[object Object],[object Object],[object Object],[object Object],International Conference on Entrepreneurship and New Venture Creation;IIM(B)
Struggle Begins  International Conference on Entrepreneurship and New Venture Creation;IIM(B)
Hyderabad Allwyn Ltd  ,[object Object],[object Object],[object Object],International Conference on Entrepreneurship and New Venture Creation;IIM(B)
HAL - Continued Losses  ,[object Object],[object Object],[object Object],[object Object],International Conference on Entrepreneurship and New Venture Creation;IIM(B)
Private  Profit  at  Public Cost  ,[object Object],[object Object],[object Object],International Conference on Entrepreneurship and New Venture Creation;IIM(B)
Alternatives for Dayakar Reddy  ,[object Object],[object Object],[object Object],[object Object],International Conference on Entrepreneurship and New Venture Creation;IIM(B)
1990s ,[object Object],[object Object],[object Object],International Conference on Entrepreneurship and New Venture Creation;IIM(B)
Project Housing- Avoiding Construction Sharks  ,[object Object],International Conference on Entrepreneurship and New Venture Creation;IIM(B)
Transparency-Project Completion  ,[object Object],[object Object],International Conference on Entrepreneurship and New Venture Creation;IIM(B)
Birth of Local Governance  ,[object Object],[object Object],International Conference on Entrepreneurship and New Venture Creation;IIM(B)
Need for Study  ,[object Object],[object Object],[object Object],International Conference on Entrepreneurship and New Venture Creation;IIM(B)
Objectives of Study  ,[object Object],[object Object],[object Object],[object Object],[object Object],International Conference on Entrepreneurship and New Venture Creation;IIM(B)
Research Methodology   ,[object Object],[object Object],[object Object],International Conference on Entrepreneurship and New Venture Creation;IIM(B)
Questions asked during focus group interviews of dialogic analysis   ,[object Object],[object Object],[object Object],[object Object],International Conference on Entrepreneurship and New Venture Creation;IIM(B)
Definition of Happiness  ,[object Object],[object Object],[object Object],[object Object],International Conference on Entrepreneurship and New Venture Creation;IIM(B)
Happiness Index and Satisfaction with Local Governance  ,[object Object],[object Object],International Conference on Entrepreneurship and New Venture Creation;IIM(B)
Financial Status  ,[object Object],[object Object],[object Object],[object Object],International Conference on Entrepreneurship and New Venture Creation;IIM(B)
Highlights  ,[object Object],[object Object],[object Object],[object Object],[object Object],International Conference on Entrepreneurship and New Venture Creation;IIM(B)
Volitional Trait, Transparency and Selfless Leadership   ,[object Object],[object Object],[object Object],[object Object],International Conference on Entrepreneurship and New Venture Creation;IIM(B)
Analogy  ,[object Object],[object Object],International Conference on Entrepreneurship and New Venture Creation;IIM(B)
How it happened? International Conference on Entrepreneurship and New Venture Creation;IIM(B)
Model Governance and Tipping Point  ,[object Object],International Conference on Entrepreneurship and New Venture Creation;IIM(B)
The Power of Context  ,[object Object],[object Object],[object Object],International Conference on Entrepreneurship and New Venture Creation;IIM(B)
Connectors, Mavens and Salesmen  ,[object Object],[object Object],[object Object],[object Object],Salesmen  Salesmen are people whose unusual charisma allows them to be extremely persuasive in inducing other’s buying decisions and behaviors. Paraná Kumar and Veeraiya fall into this category of persons.
International Conference on Entrepreneurship and New Venture Creation;IIM(B) Values and practices at Pragathi Nagar
Public Utilities  ,[object Object],[object Object],[object Object],[object Object],International Conference on Entrepreneurship and New Venture Creation;IIM(B)
International Conference on Entrepreneurship and New Venture Creation;IIM(B)
International Conference on Entrepreneurship and New Venture Creation;IIM(B)
International Conference on Entrepreneurship and New Venture Creation;IIM(B)
Majili-The Break in Journey  International Conference on Entrepreneurship and New Venture Creation;IIM(B)
Personal characteristics  of Dayakar Reddy  ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],International Conference on Entrepreneurship and New Venture Creation;IIM(B)
International Conference on Entrepreneurship and New Venture Creation;IIM(B) Struggle Continues…
Dilemmas of Dayakar Reddy and  his Team  ,[object Object],[object Object],[object Object],[object Object],International Conference on Entrepreneurship and New Venture Creation;IIM(B) What are  your suggestions? Do you have other alternatives?
[object Object],[object Object],[object Object],[object Object],International Conference on Entrepreneurship and New Venture Creation;IIM(B)
[object Object],[object Object],[object Object],[object Object],International Conference on Entrepreneurship and New Venture Creation;IIM(B)

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GANDHIAN MARXISM WITH ETHICS AND VALUES OF SUSTAINABILITY COEXISTING WITH CAPITALISM: LAL SALAM TO GOVERNANCE OF DAYAKAR REDDY

  • 1. GANDHIAN MARXISM WITH ETHICS AND VALUES OF SUSTAINABILITY COEXISTING WITH CAPITALISM: LAL SALAM TO GOVERNANCE OF DAYAKAR REDDY Presentation by Dr. K. Prabhakar & P. Srilatha
  • 2.
  • 3. At present the very human existence is in question – in any part of the world with common problems and issues … Global warming , Water scarcity , caste politics , inequalities based on religions, distrust among people and within families… The present case study will demonstrate how simple living people travelled through rough patches and achieved great success by overcoming the world’s common challenges in their small space… International Conference on Entrepreneurship and New Venture Creation;IIM(B)
  • 4.
  • 5. Struggle Begins International Conference on Entrepreneurship and New Venture Creation;IIM(B)
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  • 28. International Conference on Entrepreneurship and New Venture Creation;IIM(B) Values and practices at Pragathi Nagar
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  • 33. Majili-The Break in Journey International Conference on Entrepreneurship and New Venture Creation;IIM(B)
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  • 35. International Conference on Entrepreneurship and New Venture Creation;IIM(B) Struggle Continues…
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Notas do Editor

  1. Case Study on Gandhian Marxism with Ethics and Values of Sustainability Coexisting with Capitalism; Lal Salam to Governance of Dayakar Reddy 26/12/11 Internaional Conference on Entrepreneurship and new Venture Creation;Indian Institute of Management (B)
  2. Case Study on Gandhian Marxism with Ethics and Values of Sustainability Coexisting with Capitalism; Lal Salam to Governance of Dayakar Reddy 26/12/11 Internaional Conference on Entrepreneurship and new Venture Creation;Indian Institute of Management (B) Hyderabad Allwyn Limited (HAL)-Voltas HAL was incorporated in 1942 and is engaged in the manufacture of refrigerators and compressors, watches, steel furniture, bus bodies and LPG cylinders. It has factories in the state of Andhra Pradesh. Its immovable property covers 146 hectares (360 acres) of which 24 hectares (60 acres) comprise Sanatnagar plant located in the heart of Hyderabad city with Andhra Pradesh government holding 70 per cent (Rs 194 million) of its paid-up equity share capital. HAL was a dividend paying company till March 1990 but its operations suffered a set-back in 1990-91.It had 11,300 workers as on 31 March 1993. Due to continued losses and industrial sickness [1] of the unit caused by sudden onset of competition, it has been referred to Board for Industrial & Financial Reconstruction [2] during the year 1993 by Government of Andhra Pradesh. That is the time India was entering into the era globalization. In February 1992 The Andhra Pradesh Government had invited offers from about 200 companies and institutions for transfer of a controlling interest in the share capital and management of HAL. Voltas had in response suggested an amalgamation of HAL with Voltas. Voltas by that time was not a successful [3] organization and its machinery division had a sever set back. However, government for reasons not documented was willing to part with the HAL assets at throw away price of one rupee twelve paisa per square yard [4] while the market value at that time was eight thousand rupees. As an ex-Board for Industrial & Financial Reconstruction (BIFR) chief said decades ago (of ailing private units): the sicker the units grew, the healthier (financially) [5] the owners got [6] , according to P.Sainath present rural editor of The Hindu. The Proposed scheme of amalgamation provides for transfer of all assets and liabilities of HAL to Voltas with effect from 1st April 1993.Accordingly, Voltas on amalgamation carried on the business activities of HAL except bus building. The scheme also provides for taking back staff of only 5000 by Voltas and also provides for availing of the tax benefits of the carry forward accumulated business losses of HAL estimated at Rs 1005 million as on 31st March, 1993 for the benefit of Voltas expecting the organization will ensure continuity of the unit by government. In the Director's Report on 4th April 1994, the directors mentioned about the merger of HAL in the following words. “ BIFR approved the amalgamation of Hyderabad Allwyn Ltd. (HAL) with Voltas on 4th April, 1994 retrospectively from 1st April 1993… Your directors record their appreciation of the Andhra Pradesh State Government's decision to share these losses with the company.” It may be discerned that government sold the unit, which is a property of people, was given on a platter without much after thought to make privatization work. The out of the way in which the Voltas was helped is documented in the Directors note. However in reality none of the products are manufactured with required commitment and ultimately the operations were wound up in early 2000 by selling all land and real estate assets at several million times higher than the cost at which they were purchased. It may be discerned that getting rid of the employees was the major issue of both government and the business house rather than to run it effectively and efficiently and in the process make private profit. This provides another case of private profit with public money an effect of trickle down economics pioneered during those days (Chomsky, 1993). [1] The term industrial sickness goes beyond bankruptcy. It is described as the extreme state where accumulated losses exceed the net worth. (Anent et al, 1985) [1] [2] Board for Industrial & Financial Reconstruction was set up in January, 1987 and functional with effect from 15th May 1987. Government companies were brought under the purview of The Sick Industrial Companies (Special Provisions) Act, 1985 in 1991 determining industrial sickness, taking appropriate steps for revival of viable units or closure of unviable units. (http://bifr.nic.in) [3] http://economictimes.indiatimes.com/voltas-ltd/infocompanyhistory/companyid-12815.cms [4] Square yard is nine square feet. [5] Added by the researchers. [6] http://www.thehindu.com/opinion/columns/sainath/article2470835.ece
  3. Case Study on Gandhian Marxism with Ethics and Values of Sustainability Coexisting with Capitalism; Lal Salam to Governance of Dayakar Reddy 26/12/11 Internaional Conference on Entrepreneurship and new Venture Creation;Indian Institute of Management (B) Initiative of Workers Co Creation for Prosperity Sensing that privatization of Government during 1990s, is likely to affect livelihood of workmen Dayakar Reddy had plan to establish a housing colony for the workers as 90% of them have no permanent residence. He initiated the project of finding a place to live for workers. He examined 60 different places in Hydrabad and selected the present location after enough deliberations and purchased 80 acres [1] and named it as Pragathinagar [2] and a square yard was purchased for rupees 110. However, the place lacked all basic facilities. A committee headed by Dr.Pratap Reddy, Dayakar Reddy as secretary was formed with Satyanarayana, then General Manager of Human Resources at Hydrabad Allwyn as Mentor for the project. Initially the view of the workmen is to get plots allotted to them with one room with an attached bathroom and lavatory and not to construct houses. At this juncture role of mentor was crucial. Being general manager of the organization he established credibility as a people oriented person and strongly believed that an engaged employee is a the greatest asset to an organization. Strong leadership of Dayakar Reddy with meaningful mentoring of workers by Satyanarayana a plan was worked out and three sets of model homes are offered to the workers; 374 [3] square feet, 461 square feet and 734 [4] square feet land. The land costs are to be paid from the provident fund administered by Employee Provident Fund Organization [5] and from their savings. In order to construct houses LIC Housing Finance Corporation was convinced by Dayakar Reddy and Satyanarayana to provide loans; workers accepted the plan with some of them with great reluctance-some went to the extent of physical fights. Dayakar Reddy attributes this success to avagahana [6] meaning understanding and appreciation and this ensured gurthimpu [7] visibility and being brutally honest with the people that led to acceptance of his leadership . Seven hundred and twenty five workers opted for various plots. Satyanarayana opted out of having any house to ensure that there is not self interest. Dayakar Reddy and all members’ plots are allocated based on the lottery conducted at the meeting of all members, to show others that they are not for cornering the prime locations. These are the key confidence building measures in the leadership of the housing society that made the people to accept and follow their vision. They planned to construct the houses before 31 December 1993 and the project was to be completed in one and half years. At this juncture there is a need to examine how happy people are and their attitude towards governance need to be measured. If the index indicates sufficient evidence that the people are happy and express satisfaction with respect to the governance and financial success of running of local self governance, the evidence will justify further analysis. [1] One acre comprises 4,840 square yards 43,560 square feet or about 4,050 square meters (0.405 hectares). [2] Pragathi in Telugu means progress; Nagar is a shorter form for nagaram meaning town or village. [3] 1BHK indicating one bedroom, hall and kitchen [4] 2BHK indicating two bedroom, hall and kitchen. [5] The Employees' Provident Fund Organisation is a statutory body of the Government of India under the Ministry of Labour and Employment. It administers a compulsory contributory Provident Fund Scheme, Pension Scheme and an Insurance Scheme. It is one of the largest social security organizations in the world in terms of people covered and the volume of financial transactions. The total financial corpus managed by the EPFO is approximately$50 billion. [6] అవగాహనా   a Telugu word for understanding and appreciation. [7] గుర్తింపు   a Telugu word for visibility and acceptance.
  4. Case Study on Gandhian Marxism with Ethics and Values of Sustainability Coexisting with Capitalism; Lal Salam to Governance of Dayakar Reddy 26/12/11 Internaional Conference on Entrepreneurship and new Venture Creation;Indian Institute of Management (B) Research has been undertaken with respect to press reports, certificates and other documents available as secondary sources of data. The reports are impressive, authentic and balanced pointing out both positive and negative aspects of the model. Based on the secondary data, case study authors decided to stay in the village for three days, live with the residents and conduct a series of focus group discussions and arrived at the objectives. The initial interviews showed that people are happy being in Pragathinagar. However, there is no parallel model could be identified. Two similar panchayat models are examined. The panchayat at Kuthambakkam Village [1] near Tamilnadu headed by Elango Ramaswamy [2] , who established local governance as an antithesis to the caste discrimination by participating in the local elections with no political affiliation. With focus on local economy he established a self sufficient local consumption model with 80% of the goods and services purchased from cluster of seven villages. The model is based on local self sufficiency and self governance to ensure higher living standard of poor who are living below poverty line. Relegan Siddhi [3] is another example of local governance based on leadership of Anna Hazare [4] . The environmental concern, honesty, integrity and transparency of self governance are key commonalities of Relegan Siddhi and Pragathinagar. However, it is a rural experiment in self governance with strong religious underpinning. Pragathinagar is a satellite village for metropolitan town Hyderabad, developed itself as a model village with all urban amenities. There are villages in different parts of the country that are under the Communist Leadership and similar success is not reported if political ideology is considered as a single factor. Dayakar Reddy and his team avoided any cult like following that is likely to happen with such successful models. They are not ambitious to enter higher levels of political echelons. The intersections of these factors make it unique and offer itself as an ideal ground for study. Based on the secondary data research the following objectives are designed. [1] http://www.modelvillageindia.org.in/ [2] An interview with Elango Ramasamy http://www.lifepositive.com/Mind/Community/Village_Governance_The_Only_Way_Forward32009.asp . [3] http://www.annahazare.org/ralegan-siddhi.html [4] http://www.annahazare.org/
  5. Case Study on Gandhian Marxism with Ethics and Values of Sustainability Coexisting with Capitalism; Lal Salam to Governance of Dayakar Reddy 26/12/11 Internaional Conference on Entrepreneurship and new Venture Creation;Indian Institute of Management (B) Both qualitative and quantitative research methodology is used for present study. To measure the subjective well being of the residents 29 item Oxford Happiness Questionnaire (Hills and Argyle, 2002) is used. Five point Likert Scale is used in the present research. The questionnaire is translated into Telugu for ease of understanding. Another set of 17 questions are designed to find the satisfaction levels with the governance of local panchayat. The validity is established with discussion with experts from CEO Explore. Focus group discussions are conducted with Panchayat Members. Dialogic [1] methodology is used to meet the objectives. Dialogical analysis refers to a way of analyzing human communication which is based on the theory of  dialogism. Dialogism assumes that human communication entails the interaction of diverse perspectives, is embedded in a socio-historical context that the meaning of a communication can be different to the various participants, that it is important to examine the consequences of a communication that each participant in a communication is, to some degree, orienting to the orientation of the other. For the present research each one of them are indoctrinated to a large extent in the Marxist philosophy, but adopted to the coexistence with capitalism. However, they did not shift their loyalty as hardcore capitalists. They internalized the values of non exploitation of workers and sharing the surplus value created among workers. These dimensions make Dialogical analysis as an ideal tool for bringing divergent views to a convergence without loosing the diffusion of thoughts. Dialogical analysis is an interpretative methodology which closely analyzes spoken or written utterances or actions for their embedded communicative significance. Therefore all the interviews are recorded and uploaded in Vimeo and YouTube. Typical questions asked during the interaction by the case study authors include; What does each one of them think about themselves, the others, their leader, about people and what the other thinks of them? What do the given utterances and actions imply about the given activity or participants? Why was a given communicative act performed - why they say like that? What was the alternative that the utterance was trying to dispel what has been said by others? People found to borrowing words, phrases and ideas from other people, and accordingly, in the present dialogical analysis it has been observed who is doing the talking? Specifically, which voices and echoes are evident in the given utterance? The words used in Telugu and their translations are given to preserve the meaning and context in which they are spoken. [1] Dialogic  and  dialogism  often refer to the concept used by the  Russian  philosopher  Mikhail Bakhtin (circa 1960) in his work of literary theory  The Dialogic Imagination . Bakhtin contrasts the dialogic and the "monologic" work of literature. The dialogic work carries on a continual  dialogue  with other works of literature and other authors. w
  6. Case Study on Gandhian Marxism with Ethics and Values of Sustainability Coexisting with Capitalism; Lal Salam to Governance of Dayakar Reddy 26/12/11 Internaional Conference on Entrepreneurship and new Venture Creation;Indian Institute of Management (B) Happiness Index Happiness is an emotional state that is characterized by feelings of enjoyment, pleasure, and satisfaction. Happiness means different things to different people, for some it is the attainment of a life goal or contributing to the lives of others. Ones values guide every decision. The study has witnessed the formation of two relatively distinct, yet overlapping, perspectives and paradigms for empirical inquiry into well-being that revolve around two distinct philosophies. The first of these can be broadly labeled hedonism (Kahneman, Diener & Schwarz, 1999) and reflects the view that wellbeing consists of pleasure or happiness. The second view, both as ancient and as current as the hedonic view, is that well-being consists of more than just happiness. It lies instead in the actualization of human potentials. This view has been called eudaimonism (Waterman 1993), conveying the belief that well-being consists of fulfilling or realizing one’s true nature. The two traditions—hedonism and eudaimonism—are founded on distinct views of human nature and of what constitutes a good society. Based on these two concepts, developmental and social processes relate to well-being, and their explicit and implicit prescriptions to process of living. For the present study eudaimonism is found to be more appropriate for village and taken up for study. Twenty nine item scale created by Oxford Psychologists Argyle and Peter Hills is adopted for the study. Four hundred residents are randomly selected and questionnaire was distributed. Three hundred and twenty four were found to have complete. The Likert Scale for each of the statements consists of strongly disagree to strongly agree is summated and results are presented.
  7. Case Study on Gandhian Marxism with Ethics and Values of Sustainability Coexisting with Capitalism; Lal Salam to Governance of Dayakar Reddy 26/12/11 Internaional Conference on Entrepreneurship and new Venture Creation;Indian Institute of Management (B) Table 1 Happiness Index Scores of residents of Pragathinagar 1I don’t feel particularly pleased with the way I am (R)* 42I am intensely interested in other people.33I feel that life is very rewarding.4.14I have very warm feelings towards almost everyone.3.75I rarely wake up feeling rested.( R )3.16I am not particularly optimistic about the future.( R )3.37I find most things amusing. 48I am always committed and involved. 4.19Life is good.3.910I do not think that the world is a good place. (R)3.311I laugh a lot.3.612I am well satisfied about everything in my life3.413I don’t think I look attractive. (R)3.514There is a gap between what I would like to do and what I have done.(R)2.915I am very happy.3.816I find beauty in some things.417I always have a cheerful effect on others.3.818I can fit in (find time for) everything I want to.3.819I feel that I am not especially in control of my life.( R )320I feel able to take anything on.3.921I feel fully mentally alert.3.922I often experience joy and elation.3.923I don’t find it easy to make decisions. (R)324I don’t have a particular sense of meaning and purpose in my life. (R)3.725I feel I have a great deal of energy.426I usually have a good influence on events.3.727I don’t have fun with other people. (R)3.828I don’t feel particularly healthy. (R)3.8829I don’t have particularly happy memories of the past. (R)3.84Total3.62* R indicates that the scores are to be reversed. Argyle and Peter Hills (2002) indicated that if the scores of the people are 4 they can be considered as happy based on studies in different parts of the world. With 3.62, with no similar data available in India it may be argued that the residents are happy. Table 2 Satisfaction with the Local Governance 1I am living with nature and happy about it4.12I feel totally safe from physical danger3.53I am living in an ideal place for my children and family44Local governance makes me a happy citizen3.65I like to live in a place with no alcohol shops4.36I do not like if Gutka is available here though it helps me overcome stress.4.67Usage of plastic is not necessary though they are cheap and convenient for me. 4.28I am happy to pay taxes as I get better services needed 3.739My family happiness is more than my personal happiness.4.410If I have a say in local governance it is good411For local governance you require Leaders who are selfless and they need not be having Impeccable character.3.712I am happy to join in the feast along with all residents of the colony, irrespective of caste religion and region.4.313Imposing Penalties is the right way to make people behave as responsible citizens.3.914Place of living reflects person’s personality415Local leadership is more important than Regional and National leadership416Political affiliation is irrelevant in local governance3.517Local leadership is honest, dedicated & most effective in my village to serve my needs3.7Total 3.968 The summated scores of satisfaction with respect to different dimensions is 3.968, indicating that the residents agree with the majority statements establishing high level of satisfaction.
  8. Case Study on Gandhian Marxism with Ethics and Values of Sustainability Coexisting with Capitalism; Lal Salam to Governance of Dayakar Reddy 26/12/11 Internaional Conference on Entrepreneurship and new Venture Creation;Indian Institute of Management (B)
  9. Case Study on Gandhian Marxism with Ethics and Values of Sustainability Coexisting with Capitalism; Lal Salam to Governance of Dayakar Reddy 26/12/11 Internaional Conference on Entrepreneurship and new Venture Creation;Indian Institute of Management (B) Financial Analysis The financial status of the Gram Panchayat is obtained from the audited balance sheets submitted to Government. The complete details are provided in the appendix II. Does good governance lead to better revenue? Being a Marxist led panchayat how much will be the salary bill of the organization? What is the capital expenditure of the panchayat? If there is honesty and integrity on the part of the leaders will it lead to better tax compliance? These are some of the questions that will be answered by the financial analysis. There are 100% tax collections and none of the residents have dues either house tax or water tax to the end of fiscal year 31 March 2011. The residents expressed their happiness to pay taxes as they are getting value for money for the services rendered by the panchayat. From 2002-2010, the panchayat has a created a surplus of rupees 1,80,67,256, which is approximately 18 million rupees. The salary bill of the panchayat is 6.54% of the total expenditure and 4.87% of the total revenue. 71.29% of the total expenditure is used for building roads and creating capital assets and amenities. For the past 8 years, these figures clearly indicate that honest governance with leadership dedicated to the values will lead to financial success. Having established the model success in the dimensions of happiness, satisfaction with self governance and financial sustainability, it is appropriate to examine the leadership aspects. The strong financial success indicate learning orientation of the leader and the team. They are no more orthodox communists. They would like to have efficiency and effectiveness indicated by least spending on salaries and wages.
  10. Case Study on Gandhian Marxism with Ethics and Values of Sustainability Coexisting with Capitalism; Lal Salam to Governance of Dayakar Reddy 26/12/11 Internaional Conference on Entrepreneurship and new Venture Creation;Indian Institute of Management (B) The focus group discussion is conducted with the following objectives. What makes them to sacrifice when others found that there is no need for it? Why do individuals like some goals that they voluntarily set? Which mechanisms help a person or a group of persons to strive for goals for which they apparently have limited capabilities for the tasks they were assigned? What leadership dimensions help the process of achieving these goals which could not be achieved in India? The first question may be illustrated by an interview with Aruna, on sacrifices of her husband Dayakar Reddy. She understood the likely sacrifices to be made when Dayakar Reddy reached marriage hall two hours late with soiled dress wanting to complete the ceremony within next hour so that he can attend a party meeting. This is one of the glimpses of innumerable sacrifices he and his team have undertaken to create new sociological experiment. The first key driver for their movement of self governance is that they are keen to prove to the world that neither they can be considered as unemployable as they are aged and set with a public sector mindset. Many of them had a service of more than fifteen years before closure and they are not apologetic about their union activities; many of them are proud of their affiliation and continued to attend meetings of Communist Party (Marxist). Cooperative mindset, with strong sense of camaraderie based on values of honesty, integrity, selflessness, non exploitation of weaker sections and grouping not based on caste, religion or geographical affinity is the prime premise on which the village governance was designed according to Surya Prakash who is associated with the Allwyn from 1988 and with Pragathinagar genesis expressed this view which is accepted and elaborated by others. What are the implicit and explicit motives that made these workmen to achieve excellence in all their activities? How a group of villagers did not succumb to the temptation of behavioural impulses such as taking liquor or smoking which are not illegal? An analogy may be borrowed from American civil war, the losers of war from southern states grew deeply religious [1] ; in the absence of religion and inability fully focus on Marxist thoughts in public; it may be hypothesized that residents found hope in creating local self governance that is started with emphasis on morals such as not consuming alcohol, smoking, making environment greener and accepting collective simplicity. The growth of Hyderabad city did give rise to the incomes of the people who started occupying the rented houses constructed by the residents that ensured higher income. However, the collective simplistic living got internalized and the new residents started accepting the norms. In the process the safety of the property due to community policing, healthy environment, and safety for women as one interviewee has told that she came many a times at 11.30 pm due to her vocation in the night after completing her work and residents felt totally safe. This also helped the residents to realise higher rents, which the tenants are willing to pay for. It is a syntropic [2] kind of relationship where each instance lead impact other events and ultimately being impacted by others. Though American civil war analogy is quoted a more rigorous process is undertaken. Dialogic Method is adopted to understand the social under pinning of combining the Gandhian philosophy with that of Marxist ideals. The first observation is the existence of strong volitional trait among all the members that made them to work for the cause, which is the focus of Gandhian way of life [3] . Volition can be defined as an array of self regulatory strategies to support explicit action tendencies against competing behavioural impulses. This concept of volition is related to willpower (Metcalfe & Mischel, 1999; Mischel, 1996, 1999), self-control (Ainslie & Haslam, 1992; Muraven & Baumeister, 2000), and self-regulation (Kuhl & Fuhrmann, 1998) which formed basis for Gandhian thought who said swaraj [4] is self-control. Self control and self regulation was provided by the leadership who walked the talk. Without the leadership commitment and performance the momentum generated would not have sustained even though the workmen are indoctrinated in the ideals. Dayakar Reddy and his teams efforts to constantly reinforce their commitment as expressed by Sriramulu, Vali, the convener of Village Development Committee, Karunashree, resident by way of a story explaining why Pragathinagar is a model village ( ఆదర్శ కాలనీ ) [5] . A discussion on different motives and perceived abilities will be appropriate here. Implicit motives are related to unconscious needs (Maslow, 1943) and basic organismic needs (Deci &Ryan, 2000). They are not consciously accessible; they are subconsciously aroused and lead to preferences. The three motives are power, achievement and affiliation. While Thematic Apperception Test is suggested to be most appropriate, McCelland et al, (1989), observed that systematic self observation is one more method that can be used to find the implicit motives. Each one of the ward members has written a compilation of their thoughts published on the occasion of decennial celebrations (1997-2007) is accessed and appropriate inferences are obtained to discern the implicit motives. Explicit motives are the reasons people self-attribute for their actions. McCelland et al, (1989) to replace values for self-attribute. This indicates that the values can be accessed with the help of focus group interview. Perceived abilities are “an organism’s capacity to interact efficiently with its environment”. Perceived is being considered in this research compared to that of actual abilities as the actual abilities by way of education and other attributes showed no relation to performance. Moreover Ajzen (1991) has argued that if the focus is on motivationally relevant antecedents of behaviour and the dynamics in which these factors combine, perceived abilities are “of great psychological interest”. In the present case though many of them were workmen with diploma in engineering and training at Allwyn, they did compensate for their lack of competence with volitional regulation. Cognitive investigators propose that higher order cognitive preferences, may temporarily override lower-order, automatic behavioural impulses. Volitional regulation helps in regulating intrapersonal conflicts including resisting temptation, overcoming fear and persisting in serious tasks (Ainslie & Haslam, 1992; Bazerman et al., 1998; Kanfer & Heggestad, 1997). The intrapersonal conflicts are resolved by attention control, emotional control and motivation control. The attention control is achieved by them by participating in the street plays conducted by Praja Natya Mandali [6] and creating a branch in the village where the village artists performing once in two weeks at the open air theatre of the village; researcher has met Mr.Basavalingaih who is one of the ten best directors in the country who trains artists on People’s Theatre. Emotional control is achieved by way of adjusting their emotional states. The residents did not loose their faith in God despite their left leanings. Common properties are assigned to Temple, Mosque and Church where regular rituals are conducted to cater to the spiritual needs. In the neighbouring colony, which is one of the largest has large number of temples constructed catering to each caste. This was avoided by Pragathinagar. Each religion is offered specific place and their religious activities are confined to that place only. However, Pragathinagar neither promoted religion nor prevented religion practices, considering its impact on the people. These are the factors that ensured the stickiness factor. It is counter intuitive. There are no exhortations, there are no giant size cut-outs of leaders as generally practiced in the political arena, no cult like following, and no personalities are projected, there is no muscle power to coerce people to fall in line strongly suggesting the volitional trait and Gandhian thought of self-control. [1] http://nationalhumanitiescenter.org/tserve/nineteen/nkeyinfo/cwsouth.htm [2] Each event impacts other events and the present event is also impacted by others. [3] This site provides authentic information on Gandhian Thoughts. http://www.mkgandhi.org/ [4] Swaraj meaning self-rule in Hindi. [5] ఆదర్శ కాలనీ The word used by Karunashree in the special edition of decennial celebrations. [6] Praja Natya Mandali is a branch of the  Indian People’s Theatre Association  or IPTA. This was started in 1943. By 1948 it had ushered in a new cultural movement in Andhra Pradesh.( http://www.indianetzone.com/32/praja_natya_mandali_indian_theatre.htm ), ( http://www.youtube.com/watch?v=lHJ6xxs7P24&feature=related )
  11. Case Study on Gandhian Marxism with Ethics and Values of Sustainability Coexisting with Capitalism; Lal Salam to Governance of Dayakar Reddy 26/12/11 Internaional Conference on Entrepreneurship and new Venture Creation;Indian Institute of Management (B) Tipping Point Before acceptance of the idea of governance, few people championed the idea. These people are driven by passion to prove themselves who are out of jobs, but driven by values which are not popular across sections or government. These individuals advocated the idea of local self governance for the benefit of all, voluntarily accepting simplicity as a way of life an ideal of Gandhiji. The salaries or the expenses they accepted for doing the voluntary work are minimal. The Marxist thought process provided the stickiness factor, where ideology takes precedence over individual preferences, sacrifice is expected and strong unity is stressed. One of the key dimensions of Dayakar Reddy’s leadership is he never appreciated anyone for their work as told by Sudhir Reddy. Dayakar Reddy said that selflessness and honesty is expected out of every one, and if task is performed according to the needs of the people, everyone being part of masses will be benefitted. The fact is performing task itself provide them with the needed motivation. This is counter intuitive to the modern management that emphasizes the need for non monetary benefits. The ideology provides a solace that working for the cause of masses is the duty of every member. The question is what factors provided Power of Context? They are as follows ; Leadership of Dayakar Reddy and small group of twelve and a large group of seven hundred families with focus on class struggle and wanting prove themselves; continued judicial reverses; the mentorship of Satyanarayana to follow path of Gandhian values and not to go for violence and belief in satyamevajathe [1] ; honesty, transparency, willingness to adopt leadership; isolation by way of creation of a separate panchayat; dissatisfaction and wide spread corruption at different levels in various forms of governance in different parts of the state; area that is not extending more than 850 acres and total population of 30000 ( as per census 2011); conviction in green economy; influential changes such as banning of gutka, alcohol sales, use of plastics and fines for non payment of taxes, community policing that provided safety to property and women endeared women and men; the economic boom due to globalization and industrialization of Hydrabad with the advent of software organizations provided employment and economic growth. [1] సత్యమేవజేయతే   "Satyamevajathe" ( "Truth Alone Triumphs") is a  Hindu  mantra from the ancient scripture  Mundaka Upanishad . Upon independence of  India , it was adopted as the  national motto  of India.  ( www.wikipedia.com )
  12. Case Study on Gandhian Marxism with Ethics and Values of Sustainability Coexisting with Capitalism; Lal Salam to Governance of Dayakar Reddy 26/12/11 Internaional Conference on Entrepreneurship and new Venture Creation;Indian Institute of Management (B)
  13. Case Study on Gandhian Marxism with Ethics and Values of Sustainability Coexisting with Capitalism; Lal Salam to Governance of Dayakar Reddy 26/12/11 Internaional Conference on Entrepreneurship and new Venture Creation;Indian Institute of Management (B) Water Management Water management was identified as a key focus area by the panchayat. In order reduce incidence of disease water from Manjeera is obtained by laying pipeline for 2.5 kilo meters to get 1.85 lakh gallons of water every day at the cost of 55 lakhs. Each family consisting of two adults and children are provided with one thousand and five hundred litres of water. During 1997 there was a big storm and forty houses are inundated with water for one year. During this time the residents are provided with alternate accommodation and the complete village started taking care of the needs of the families. Panchayat board constructed a storm water drain to ensure that all excess water is emptied into the near by lake and the village was with no flood waters enter its homes. One hundred percolation tanks are constructed to store rain water. Sewage Treatment Plant One of the most successful plans of the panchayat is the sewage treatment plant. The sewage treatment plant has a capacity of 2.5 million litres per day. It includes physical, chemical, and biological processes to remove contaminants. Its objective is to produce an environmentally-safe fluid waste stream and a solid waste suitable for disposal or reuse as fertilizer. The water is reused for recharging the ground water, cleaning purposes and for plantation. The plant works for twenty hours a day to the tune of 70% capacity presently. People’s Hospital The basic value premise for health care is “should never look at the bottom-line as guiding force and extend service to as many people as possible and make no profit out of sickness of human beings. This made the doctors feel fulfilled as they are living with ethics with no financial pressure from the hospital administration. The salaries and consultancies doctors earn is 45% of the market rates. Initially three departments Gynecology, General Surgery, Pediatrics started functioning. Later Dental, Orthopedics, Physiotherapy and Dermatology departments are added. There are 100 employees - Doctors and staff together. Sixty of them are the employees of trust. Pharmacy responsibility was entrusted to an voluntary retired scheme [1] employee of Allwyn .with Profit sharing is 30% : 70% ratio between the partner and Trust . Consultant rooms and other facilities provided by the Trust. No targets are given to physicians to achieve financial goals of the hospital. Initially the price point offered was twenty rupees for any patient and this was looked down by people. Laboratory tests which are used as a razor and blades business model, where the consultation charges are less and laboratory tests are of high cost as practiced by most hospitals is discouraged. From July 2011 the hospital has reached break-even point.