EVOLUTION OF UNIVERSAL BUSINESS EXCELLENCE MODEL INCORPORATING VEDIC PHILOSOPHY

Abstract

Since time immemorial, the search for excellence and all-round growth has been the important objective of mankind. The pursuit of economic growth does not necessarily lead automatically to social progress. In many cases it actually led to a deteriorating physical environment, an unsafe workplace, needless exposure to toxic substances, discrimination against certain groups in society, urban decay, and other social problems. The recent financial scandals at large multinational corporations such as Enron and WorldCom have brought into focus the need for 'ethical' management (Saraswat, 2005). Corporate Social Responsibility (CSR) is now being widely used and debated by scholars, business leaders, investors, and by the society at large. Leading organisations across the world are taking actions for Corporate Governance and focusing on issues related to sustainable growth in developed as well as developing world. As mankind progressed, various management theories have evolved and practiced over the years to attain the excellence and sustainable growth. Though these management theories were found most suitable in a given environment; the same theory could not give desired results in a different environment. It led to development of another management theory to overcome shortcomings of the previous ones. The risk of bias always remains in any model or list of attributes or Critical Success Factors for TQM, because they are always simplification of realities in which companies are operating (Dhalgaard et. al, 2005; Harrington, 2004). Research question is whether this risk of bias can be eliminated by integration of Management Models with Vedic philosophy? The various Business Excellence Models (BEMs) have evolved during late 1980s and early 1990s to eliminate the risk of bias. These models IV also address the CSR issues. In the present study, 94 quality and business excellence awards being used in 77 countries have been identified. A comprehensive study of the BEMs has been done to identify the gaps in BEMs vis-a-vis essence of Vedic philosophy. To fill these gaps an empirical study has been carried out and with integration of the BEMs and Vedic philosophy, the Universal Business Excellence Model (UBEM) has been evolved. With implementation of UBEM it is felt that any organisation may succeed in attaining the sustainable growth, which happens to be the key concern of every business organisation across the globe. Excellence means perfection or quality of highest order. As one approaches perfection in his work, he approaches excellence. Man can attain excellence or perfection through his actions. Lord Krishna says in Bhagvad Gita (2-50), "Yoga is excellence in action (Karma)". Excellence means "Swa- Dharma" or "Self-ethics". Every one needs to perform his duty correctly & completely every time to attain it. Scriptures provide global perspective to quality with focus on 'Values' to attain sustainable growth. With conversion of market into global village, new dimensions of quality e.g. ethics, attitude, innovation are unfurling. Organisational quest for excellence has resulted in varied conceptualisation and "paradigms (Hermel, 1997), and a global perspective is emerging through integration of various aspects of quality in BEMs (McDonald et. al., 2002). MBNQA of USA, EFQM model of Europe and Deming Prize of Japan are worldwide recognised major BEMs and are considered as the mother of other BEMs/NQAs (Bohoris, 1995; McDonald et. al., 2002; Hughes et al., 2002; Miguel, 2001; MBNQA, 2006; EFQM, 2007; and JUSE, 2006). NQAs of 53 countries are based on MBNQA (Searle, 2005). EFQM model is being used in 26 countries (Koura et. al., 2005). In study of NQAs of 53 countries Tan et al. (2003) report that most NQA models are based on the MBNQA and EFQM. They have helped many organisations to improve their processes, customer and improvement orientations. In literature review of the 347 TQM research papers, Sila et al (2002) concludes that more research is needed to increase the credibility of BEMs as effective approach for performance excellence. In essence the award criteria of BEMs are comprehensive, scientific and focused on the needs of Total Supply Chain. Identifying the future challenge of BEMs Dhalgaard et. al, (2005) conclude, "Managerial tools and techniques can be more properly utilised and hence people better mobilised when there are consistencies between realities, intentions, people's basic beliefs (paradigms) and the chosen approaches." It can be achieved through integration of existing BEMs and essence of ancient wisdom enshrined in Vedic Philosophy. Vedic philosophy emphasizes that the business is a legitimate, integral part of society. Its core function is to create wealth for society through manufacturing, domestic distribution, foreign trade, financing and other such related activities. Sharma (2005) argues, corporate world needs 'Corporate Rishis' to teach market karma, social dharma and leadership charisma to improve material and spiritual conditions of humanity. In recent times, the term 'human values' has been used for theistic view of Value system, which endorses the super conscious insights of sages contained in the sacred religious literature as the basis of all ethical, social and other human values (Chakraborty, 1995a,b). Saraswat (2005) has identified the fourteen principles of human values from Bhagavad-Gita. A hymn for VI Manu-Smriti says, "Among all purity, purity of the money is supreme." It further lays down governing principles for purity of earning money. Vedic hymns stress on the importance of knowledge and justice over earning money. Chankya Niti, states adopting an ethical approach and meeting the expectations of the community at large best serve the long-term interest of the organisation. Vedic philosophy stresses on "Vasudhaiv Kutumbakam" indicating all living beings are part of one family and business needs to take care of them to ensure its long-term success. The roots of best practices of developed world e.g. Six Sigma, 5-S, TPM, Stakeholder focus, benchmarking, Leadership, HR development etc. too can well be traced to Vedic hymns and ancient Indian literature. Literature review of over 300 research papers in the study testifies that little efforts have been made so far, to integrate the BEMs with Vedic philosophy. A questionnaire was developed based on literature review, discussions with experts and brainstorming. The purpose of the survey was to empirically test applicability of Vedic concepts in current business scenario. The questionnaire addressed the research hypotheses and was divided in seven parts namely - a) Best practices of various organisations; b) Applicability of ancient wisdom (Vedic philosophy) for business excellence; c) Values, work culture & long term philosophy; d) Measuring multiple bottom-lines to enhance business growth; e) Fulfilling desires of stakeholders and global society; f) Sustainable growth through continuous improvement & learning; and g) Vedic model of governance. The survey respondents were carefully chosen from the cluster of quality professionals preferably those who were directly involved in the TQ Assessment process or have long experience in quality. VII The survey results were analyzed using Statistics (mean and standard deviation), Factor analysis, Reliability analysis, T-Test and Anova with help of SPSS software. Most of the survey respondents agreed with the applicability of the Vedic philosophy to attain business excellence. Survey analysis led to identification of the three clusters of parameters namely: Values based governance; Universal well-being and Sustainable success for inclusion in the contemporary BEMs/NQAs. The common features of BEMs and three clusters identified in empirical study have been integrated to evolve the Universal Business Excellence Model (UBEM) consisting of nine criteria. Six criteria are already there in existing BEMs, while three criteria namely 'Values & Process Flow', 'Universal Wellbeing' and 'Sustainable Success' are partly covered in BEMs. Examples of best practices of some select successful organisations were used for vetting of the additional features of UBEM. UBEM is an approach to eliminate the inter-firm and intra-firm competition and offers immense and unprecedented opportunities to bring forth the latent potential of organizations, by allowing individual employees and other stakeholders for expressing their capacity for learning and creativity. It is possible only through practice of human values integrated with the universal well-being. It will facilitate the organisations in setting their own standards rather than frittering away their energy in outsmarting competition. Finally, it is concluded that in this research a need for integrating BEMs across various countries vis-a-vis Vedic Vision for excellence has been visualised and an attempt has been made to fill the gaps and propose some useful insights through evolution of Universal Business Excellence Model. In VIII the new millennium, it will be essential for the Business Leaders to devise and adopt a unified theory focussed to attain excellence comprising of principles, methods, tools and systems appropriate to their companies. It needs no emphasis that the organisational excellence can be attained by developing proactive, self-responsible people concerned with achieving excellence inculcating values to achieve the goals. Success depends greatly on honest involvement of people in the organisations, willing to bring a change in tune with global environment. Business practices will be required to be changed and aligned with the growing needs & expectations of all Stakeholders. The lure of using isolated techniques will not be enough for transforming the industrial world. To bring excellence, integration of the Vedic studies and modern scientific & technological research is a must. It requires that various organisations from across the world come together and lead us through a transformation process. This will bring universal harmony and a happier, healthier and prosperous world to live.