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A REDEFINED PRODUCTIVITY MODEL & 
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MANAGEMENT DECISIONS

           
FULL TEXT  OF THE  RESEARCH PAPER PUBLISHED BY

      DR.VSR.SUBRAMANIAM.MBA., Ph.D., D.Litt.,
     SHARJAH. UAE 

===============================================
View in Social Science Research Net Work (SSRN)
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"It is less important to have unanimity than it is making the right decision and doing the right thing, even though at the outset it may seem lonesome"
By US Defence Secretary Donald Rumsfeld on 29th August 2002. From the Middle East Economic Digest (MEED), 30th August 2002. Page 2

                                        FROM VIEWER'S VIEWS                                            
I am looking forward to your earliest reply to the same email address, as a we are working on a research project on effective management tools for government sectors in developing countries - Dr.Malvyn Copen
Here I provide the exhaustive details on how every aspect of Socio-Economic Development, Management Input / Output factors could be quantified, in order to assist your research project - DR.VSRS 
You talk of productivity by Socioeconomic goals. What it has to do with me
Angello Bocelli
Unless every industry think and do something about this, the nation cannot survive, continue and progress - DR.VSRS

KEY WORDS
Algebraic Model, Decision Methodology,
Economic Development, Management Decision, Productivity,   Redefined Productivity,
Social Development,
Socio-Economic Development

JEL CLASSIFICATIONS
A13, B41, C52, C67, D78, D84, M21,M33,P27

PALMTREE

PUBLISHED IN ALTIJARAH 
                 Journal of the Sharjah Chamber of Commerce &  Industry,
 United Arab Emirates   

ISSUE

Pages Details

Publication

May 2001 26 to 28 Part - 1

Part 2 here is Part
2 + 3 of  ALTIJARAH

September 2001 20 to 23 Part - 2
March 2002 32 to 35 Part - 3

  REPRODUCED WITH PEMISSION IN
 The ICFAI Journal of Managerial Economics
The ICFAI University, Hyderabad, India. August 2004, Pages - 25 to 41

Animated Computer- Slide Supported Presentation is available with  DR.VSRS
An Innovative Productivity & Management Decision Model for 2000s  

Sharjah has a strong industrial base in United Arab Emirates (UAE), with cheap gas / water / electricity, no taxes in corporate income, state-of-the art telecom / transport facilities, ultra- modern sea / air ports, and a modern urban infrastructure.

ALTIJARAH , the monthly Economic Magazine of the Department of Commerce and Industry, Sharjah Government. UAE.

ALTIJARAH is an authoritative source to report the latest economic developments in the Gulf, Arab world and at International levels, over the past 25 years. It has a wide and accredited readership all over the world. The "International Diamond Star of Quality" was awarded in recognition of the advanced standard for its professional expertise, in terms of contents, readership and world circulation.
PALMTREE

SUMMARY OF THE RESEARCH PAPER
Mgmtbrief

SUMMARY OF CONCEPTS DERIVED

  • 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

  • Universallly Applicable to All Developed/Developing/Under-Developed Nations.

MANAGEMENT DECISION & REDEFINED  PRODUCTIVITY
CONCEPT SUMMARY SCHEMATIC
MGMTCONS
PART-1 : EXPANDED PRODUCTIVITY MODEL.
       CONTENTS

 EXECUTIVE SUMMARY
   01.   TECHNO INVESTMENT CONCEPT
   02   CONGLOMERATION OF EXPERIENCE
   03.   PRODUCTIVITY REDEFINITION
   04   PRODUCTIVITY MODEL
   05   IMPACT ON MANAGEMENT DECISIONS
   06.   MANAGEMENT DECISION GUIDELINES 
  LINK DIAGRAM - 1      Press Release               Go To Part - 2

EXECUTIVE SUMMARY

In the 1977 Nobel Symposium held in Stockholm, Harry.G.Johnson (1923 - 1979. Canada) defined technology as an intangible investment in any productive operation. This techno-investment concept opened the channel to evaluate the effectiveness of any techno-commercial operation in terms of its return to the Social and National Cultural environment. Using this as a thought-provoking guide-line, I happened to discuss the modus operandi followed by persons, who are committed to accelerate the pace of Socio-Economic development, among nations in different brackets of development. This covered a range of active and accredited persons in Administrative, Business, Nobel Laureates in Economic Science, Political, Professional and. Social circles. Based on the outcome of these discussions and the concept of techno-investment, I redefined Productivity as a Ratio between pre-determined Socio-Economic Development goals and the Inputs, subject to a favourable ratio of Physical outputs to Inputs . Between 1978 and 1998, I applied this expanded Productivity model in my Socio-Economic development and Management oriented assignments in different parts of the world, in different brackets of development, in different areas of management span, and evaluated its utility during my know-how update visits to these countries,. Based on these experiences, this paper is prepared to design a suitable Management-Decision model with reference to this enlarged Productivity definition, so as to aid an accelerated pace of Socio-Economic Development as a Prime goal.

Assuming n inputs, m outputs, x goals, y ratios of outputs to inputs and z ratios of goals to inputs, the expanded Productivity model is developed in this Part-1. But the integration of this model with Management Decisions relating to input and output, and generation of conditions with reference to Socio-Economic Development goals, need a vicious dimension in its implementation. The conditions generated in Part - 1 provide a lead to integrate the Management Decision process in the world, with the expanded Productivity model and operating constraints, in Part-2.
              f =  Function of   
SIGMA =  Sigma ( Summation )
*******************************************************

01.  TECHNO-INVESTMENT CONCEPT.

Harry.G.Johnson (1923 - 1979. Canada) in his paper "Technology, technical progress and international allocation of economic activity", presented in the 1977 Nobel Symposium held in Stockholm, Sweden, summarised his views as "Technology is a form of capital, and its availability alterable by investment. Consequently, satisfactory analysis of it must be treated broadly in terms of social and national cultural encouragement or discouragement of this form of investment, and the investments in general".

This infers the narrowing of the gap between capital investment, a tangible motivator to the productive activity in a nation; and the techno-commercial know-how, an intangible innovator to convert the inputs to outputs, at socially acceptable quality and economically justifiable cost. If the technology assumes a form of an intangible investment, then its effectiveness and productive analysis should be oriented towards the social, cultural and intangible contributions to a broad-based society in each nation. Hence, technology in the current millennium could be designated as a Techno-Investment .

Effective evaluation of the throughput technology is measured through the concept of Productivity, a ratio of physical outputs to inputs. If the technology assumes the role of an intangible investment, then the Productivity should measure a broad-based social and cultural encouragement of the techno-investment, through its contribution to the Socio-Economic development of the nation. With these thoughts as a basis for my discussion, I exposed this new dimensional approach to a team of diversified, but critically responsible persons in different nations, committed and working towards an accelerated Socio-Economic development.

02.   CONGLOMERATION OF EXPERIENCES.

During my international assignments and on-the-assignments know-how update visits to different countries in the world, during the period 1978 to 1998, I had the opportunity to meet, discuss, read and collect the experiences about their approach to optimise the Socio-Economic upgrade in their respective nations and regions, from the following :-

  1. Prime Minister of a large self-sufficient and self-reliant developing nation in   Asia.

  2. Secretary General of the Commonwealth nations.

  3. President of a Regional Development Bank in West Indies.

  4. A Nobel Laureate in Economic Science from West Indies / USA.

  5. Cabinet Secretary of a stable and developing nation in the Africa.

  6. Members of the Project implementation and Post-appraisal team From the World Bank

  7. A successful Lebanese business man.

  8. A leading Arabic business-man operating in Middle-East with German collaboration.

  9. A Japanese consultant from an organisation which has collaborated projects in America and Europe.

  10. General Manager of a Multi-national American corporation.

  11. An internationally accredited American University Professor, conducting seminars and work shops on computer technology in different parts of the world.

  12. Technical director of an American organisation, which has under-taken the project of` Forestation of deserts in Middle-East, through Horticultural innovation.

  13. A progressive Congressman of the United States of America, who has substantially contributed for up-gradation of the developing world..

  14. A leading Farmer and accredited village Social worker from Tamil Nadu, India, who pioneered to create a School and drastically altered the Socio-Economic infrastructure of a backward village.

The conglomeration of their experiences indicate that the term Productivity has enlarged its scope in the current millennium, to synchronise with many techno-commercial innovations in different parts of the world. If their views supported by the Techno-investment approach is used as a basis to define Productivity, then it can no more remain as a simple arithmetic ratio between two physical units, namely the outputs and inputs. If the output has to provide the products and services at socially accepted quality, and economically justifiable costs, then the term Productivity needs an updated definition.

03PRODUCTIVITY REDEFINITION.

As supported by the above developments and experiences, I have expanded the definition of Productivity as below :-

"Productivity is represented by the ratio between the Socio-Economic development goals and the inputs, subject to a favourable ratio of Physical outputs to inputs".

The Socio-Economic development goals should be determined by each nation in line with their national objects, reviewed and updated at periodic intervals. Even-though the redefinition of Productivity has imparted a vicious dimension to its frame of reference, a closer review of the approaches of different nations in the world, indicates a positive and practical value for this redefinition.

All the current world environments support the concept that Socio-Economic development goals of each nation takes priority, and all the outputs, inputs and technology are strategically applied towards the attainment of these goals. However, the velocity, quality and quantum of the Socio-Economic achievement is controlled by the elasticity of outputs to inputs. It is also observed that any activity, even-though highly productive in terms of the output to input ratio, if they do not contribute towards the expected Socio-Economic objects of the nation, then they are discouraged by promulgating suitable ordinances on priority basis. Nationalisation of profitable and well managed multi-national operations in developing nations, is an example of discouragement of productive operations, which drain the internal resources to benefit an external developed nation, against the domestic Socio-Economic development goals.

Hence, the objective of this paper is to critically review the enlarged Productivity definition, and design a suitable Management-Decision methodology, using an algebraic approach.

04.  PRODUCTIVITY MODEL  (ALGEBRAIC   MODEL)

PRODUCTIVITY & MANAGEMENT DECISION DIAGRAM  LINK DIAGRAM - 1

Productivity is the critical indicator of the performance of any operation, and traditionally it is arrived as a ratio of the physical outputs O and the corresponding physical inputs I . If the scope of Productivity is enlarged to consider Socio-Economic Development goals G as superior to the output O, then the inputs I should be evaluated with reference to G primarily, and with reference to O with secondary preference .

Any evaluation process becomes optimum, if the different components are properly quantified, simulated into a mathematical model, solved and the results are interpreted into implementable guidelines. The modelling technique also aids the integration of the practical constraints in the solution process. In order to make this approach, the following are assumed to exist in the productive cycle of a nation :

  • Inputs          I     ( I1 to In ).
  • Outputs       O ( O1 to Om )
  • Goals           G    ( G1 to Gx )
  • Ratios          R   ( Ratios of output to input R1 to Ry )
  • Productivity PG ( Ratios of Goals to Input & Goals to Ourput
                               P1 to Pz )

To synchronise the approach towards the Socio-Economic development orientation, in the assumptions, Productivity PG is taken as the ratio of the goals G to the applicable input I , and the ratios R of outputs to inputs are considered as a peripheral guideline. The assumptions cover n inputs, m outputs, x goals, y ratios of outputs to inputs, and z ratios of goals to inputs. Then the possible Productivity ratios are :-

PG1 = G1 / ( I1 + I2 + ------- + In ) &
          G1 / ( O1 + O2 + ------- + Om )
PG2 = G2 / ( I 1 + I2 + ------- + In ) &
           G2 / ( O1 + O2 + ------- + Om )

  PGz = Gx / ( I 1 + I2 + ------- + In ) = Gx SIGMA In & ---- ( 01 )
            Gx / (O1 + O2 + ------- Om )

 From  ( 01 ) Total Productivity PG

  PG = PGz = SIGMA {Gx / SIGMA  In } &  ---------------------- ( 02 )
                     
SIGMA {Gx / SIGMA  Om }

Possible Outputs to Input ratios are :-

R1 = O1 / ( I1 + I2 + ----- + In ) , R2 = O2 / ( I1 + I2 + ----- + In ) etc......

Ry = Om / ( I1 + I2 + ----- + In ) = { Om / SIGMA  In }

The conditions on outputs to inputs are so that each ratio R1 to Ry should be greater than, 1, or

Ry = { Om / SIGMA In }    >   1 -------- ( 03 )

The objective of each nation should be to optimise the Productivity PG given by ( 02 ), subject to the condition ( 03 ). This is diagrammatically shown in Link Diagram -1, under Dimension-1.

05.  IMPACT ON MANAGEMENT DECISIONS.

Acquisition of input resources and pattern of output products / services generation are the functions of the throughput Management Decisions. Under the normal definition of Productivity, the Decision methodology is highly flexible, permitting any combination of output selection, and a scope to get any input resources, only ensuring that their ratios are always favourable.

But the enlarged redefinition of Productivity with Socio-Economic development goal as the prime third dimension, controls the Decision through the following : -

  1. Select outputs, which will aid the Socio-Economic goals optimisation.

  2. Obtain inputs without violation to the Socio-Economic goals.

  3. Ensure that the cumulative goals are optimised through inputs, subject to a favourable ratio of outputs to inputs.

Using the above quantum representations, it is possible to derive the following conditions for Management Decisions.

a) Providing a given combination of output products or services Om, is  a function of Output Decisions DO or

Om = f ( DO ) -------------- (04)

b) Acquisition of needed inputs In to meet the decided outputs Om, is a function of Input Decisions DI or

 SIGMA  In = f ( DI ) ------------ ( 05 )

c) Productivity, measured with reference to Socio-Economic
   development goals Gx through the utilisation of the inputs In ,
   corresponding to the relationship ( 02 ) is given by

 SIGMA{Gx / SIGMA In }  =  SIGMA {Gx / f ( DI ) } --- ( 06 )

Outputs to input ratios corresponding to ( 03 ) is given by

Ry  =  SIGMA { Om / SIGMA In } >   1  =  f { DO / DI } > 1 ---- ( 07 )

In addition to the above, the outputs Om should be synchronised with the Socio-Economic development goals Gx , or

Gx =  f ( DO ) -------- (08)

The Management Decision guideline should be to optimise the relationship ( 06 ) subject to conditions ( 07) and ( 08 ). These establish a vicious span to the area of Management Decisions under the redefined Socio-Economic Productivity objective. This is shown diagrammatically in Link Diagram - 1 under Dimension-2.

06.   MANAGEMENT DECISION GUIDELINES.

The mathematical relationships derived above, supported by Link Diagram - 1 provides a basis to view the scope and dimensions of Management Decisions, relative to the Socio-Economic development oriented Productivity guidelines.

Now it is possible to integrate this Decision equations with the constraints in any operating environment, and develop an implementable Management-Decision model.

This paper has provided a lead towards the development of such a model, solve and interpret the operating guidelines, in Part-2.

 MGMTSLIDE

 

 

 

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WATCH  SPAM GROWTH WITHOUT SE  DECISIONQUANTITAVE  PRODUCTION  APPRECIATIONPRODUCTIVITY STATUS
A   REDEFINED PRODUCTIVITY MODEL &
 SOCIO-ECONOMIC DEVELOPMENT ORIENTED MANAGEMENT DECISIONS
PART-2 : MANAGEMENT DECISION MODEL

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Research & Development

Socio-Economic Development Acceleration

SUMMARY OF THE RESEARCH PAPER
Mgmtbrief

SUMMARY OF CONCEPTS DERIVED

  • 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
  • Universallly Applicable to All Developed/Developing/Under-Developed Nations. NOBEL Nominated Millennium Publication.

MANAGEMENT DECISION & REDEFINED  PRODUCTIVITY
CONCEPT SUMMARY SCHEMATIC
MGMTCONS
CONTENTS

  EXECUTIVE SUMMARY
  07.   EXTENDED PRODUCTIVITY MODEL 
  08.   ASSESSMENT OF CONSTRAINTS
  09.   MANAGEMENT DECISION MODEL
  10.   MANAGEMENT DECISION INFERENCES
  10 A.  SOCIAL RATE OF RETURN OVER   QUANTUM RATE OF    RETURN
  10 B.  SOCIO-ECONOMIC DEVELOPMENT OVER QUANTUM OUTPUT
  10 C. INTANGIBLES OVER TANGIBLES
  10 D.  BILATERAL INPUT & OUTPUT   INTEGRATION
  11.   CONCLUSION
  LEGENDS     LINK DIAGRAM - 2 
  BIBLIOGRAPHY-1      BIBLIOGRAPHY-2       Press Release         Go To Part - 1

 EXECUTIVE SUMMARY

Like a capital investment to initiate a productive activity, technology is an intangible investment to convert the inputs to the outputs. Hence, both these should be evaluated with reference to their return towards the social and national cultural environments. This concept initiated by Harry.G.Johnson (1923 - 1979. Canada) during the 1977 Nobel symposium, is endorsed by the persons in the international scene, who are committed to the Socio-Economic development of their nation or region, This warrants a redefinition of Productivity to suit the expanded scope. Accordingly, the Productivity is redefined as the ratio of Socio-Economic development goals to Inputs, subject to a favourable ratio of Outputs to Inputs. In order to apply this enlarged Productivity concept under practical operating environments, a mathematical model is framed in Part-1.

In this Part-2, the dominant constraints to implement the enlarged Productivity are identified as Psychological, Social, Local, International, and Universal in nature. Their relative influences with reference to Input, Output, and Socio-Economic development acceleration, along with the utilisation of techno-commercial throughputs, are identified, and fitted into a Mathematical model. An algebraic approach to solve this Management-decision model infers that Decisions of Psycho-Techno-Commercial (PTC) intensive contents should be cautiously made. The relative influences of Social, Universal, International and Local constraints on Socio-Economic goals G and outputs O, should be pre-assessed and reduced to a possible minimum, as well as their influence should be assessed more critically on the former ( G ) than the latter ( O ). Bilateral Input Decisions relative to Socio-Economic development goals and Outputs should be pre-evaluated and well synchronised with unilateral Output Decisions.

The Optimum Management Decision  is a favourable Ratio between pre-determined Socio-Economic Development goals to the Input Management Decisions, as well as the Ratio between pre-determined Socio-Economic Development goals to the Output Management Decisions, subject to a favourable ratio of  Output Management Decisions to Input Management Decisions.

Hence, the final redefinition of Productivity is a favourable Ratio between pre-determined Socio-Economic Development goals to the Inputs, as well as the Ratio between pre-determined Socio-Economic Development goals to the Outputs, subject to a favourable ratio of Physical outputs to Inputs.

These algebraic inferences are supported by the practical occurrences among various nations in different development brackets in the world.

The development of this model and the solutions are expected to indoctrinate an environment for better quality and standard of life among world population, through optimum integration of the research and development in the area of Economics, Science, Technology and Management, in line with the expectations of the human society from the dawn of the civilisation till the current millennium.

f  =  Function of    SIGMA =  Sigma ( Summation )

07. EXTENDED PRODUCTIVITY LEAD.

Part-1 expanded the definition of Productivity to relate the inputs to Socio-Economic development goals, and to use the ratio of output to input as a peripheral guideline. This is developed based on the techno-investment concept of Harry.G.Johnson (1923 - 1979. Canada), presented in the 1977 Nobel symposium in Stockholm, Sweden, and discussion with accredited personal from various nations in the world, who are committed to accelerate the pace of Socio-Economic development. This enlarged Productivity concept is used as a guideline to develop a Management Decision methodology model, assuming a flexibly large number of Socio-Economic development goals, inputs and outputs. This enlarged the scope of Management-Decision area, and provided a lead to integrate the Management Decision process with the identification of constraints. This Part-2 is devoted to develop a Management-Decision model, solution and its interpretation, using a mathematical approach.

08. ASSESSMENT OF CONSTRAINTS.

In order to assess the constraints relative to the Socio-Economic development oriented Management Decisions, it is necessary to divide the world into two groups, namely those which are economically developed, and those in developing / under developed status.

In developed nations, the Management Decision-process are more flexible because of the following infrastructures:

  1. As the achieved development provides adequate Biological ( food, clothing and shelter ), Psychological ( ego, id ), and Sociological ( status, luxury ) needs for the domestic population, the distracting variables to any productive operation are limited.

  2. Because of exportable surplus commodities providing a base to barter for the local needs, strong local currency to exchange, and facility to exploit foreign labour, they could use the leverage of cheap-imports to bridge the domestic gap in the input resources.

Historically, the economically developed nations used the impact of industrial revolution during 1700s to replace manual labour with machines, and opened the channels of techno-commercial research, mass production and cost reduction. Subsequently, during 1900s, the world wars, dominated by the developed nations, utilised the techniques to analyse the occurrence relationship between targets and achievements, to develop a predictive-type of commercial models, in the from of Operations research . These two Management dimensions aided these nations to precisely quantify the inputs, outputs, through-put processes, time, and solve them towards optimum solutions, utilising the advancement in electronic technology. The sizeable budgets available to the planning and implementation process among developed nations, combined with these advanced techniques, not only sustained their developed status, but also bound the growth rate of the developing nations to that of theirs, during the last 100 years (Sir. Arthur.W.Lewis, Nobel prize paper "The slowing down of the engine of economic growth", December 1979).

These environments are not obviously true for the developing and under developed world. These regions, even-though economically weaker, are historically, culturally and spiritually stronger. These introduced a vicious dimension to the intangible (non-quantifiable) components and constraints to the area of Management Decision. Hence, any Management-Decision model applicable to the lesser developed world should well-fit within the dimensions of developed world, and the reverse may not be true in most of the cases.

Based on the enlarged Socio-Economic Productivity concept and its impact on Management-Decision process, discussed in Part-1, the goals G1 to Gx are achieved through the outputs O1 to Om . These outputs in turn are generated from the inputs I1 to In , acquired through input Management Decisions, related to manpower, materials, finance, technological conversion processes, and management facilities. Acquisition of these inputs should not violate the frame of reference of the Socio-Economic development goals.
To the extent of the quantifiable limits, the technical systems could optimise the utilisation of inputs, and the commercial systems could optimise the planning, control and appraisal processes.

But the quantifiable dimensions of both technical and commercial systems do not provide any successful application guarantee to the following environments, peculiar to the developing and under-developed third world nations.

  1. The psychological behaviours P of domestic manpower, due to the limited education, poor economic background and deeply rooted philosophical outlook towards material wealth.

  2. The social influence S of the domestic groups controlled by their biological, geographic, linguistic, religious, and political diversities. These constraints impose limitations on the quantum outputs and Socio-Economic development achievements.
  3. All other inputs ( non-manpower ) are influenced by the following.
  • Local constraints L comprising village, district, state, and national level laws, restricting financial outlays, monopoly restrictions, price controls, import bans, export restrictions etc.... They also guide and control the output consumption, public distribution methods, taxes, and exercise a strong social-audit on corporate goals.

  • Impact of International politico-economic situations W, such as fluctuations in currency exchange rate, changing export demands, limitations in the availability of foreign know-how, machineries and materials, as well as cargo movement and travel limitations. These influence the output Decisions related to production priorities, pricing, product or service mix, warehousing, and transportation plans.

  • Universal disturbances U in all parts of the world, such as cyclones, draughts, earthquakes, floods etc..., which drain the budgets intended for essential needs, affect the demand patterns, disturb the production and service priorities, and limit the supplies, movement of materials, personnel etc...

All these could exercise an intensive influence on the input / output Decisions, as well as the priorities on Socio-Economic development goals.

09.  MANAGEMENT DECISION MODEL.

DEVELOPMENT COMPONENTS & CONSTRAINTS LINK DIAGRAM - 2
        (   ** means to the power )

Link Diagram - 2 summarises the Socio-Economic goal transfer through output / input Decisions to the Management aspects of the commercial systems CS , technical systems TS , and the relative influences of the four intangible constraints.

As seen from this Link Diagram - 2, S, U, W, L respectively represent the Social, Universal, International
(World ), and Local constraints.

Using this schematic, it is mathematically possible to correlate the two systems, four intangibles, along with the psychological aspects P, to the Decision variables, relative to the goals Gx , outputs Om , and inputs In, using the relational constants A, B, E, and coefficients of correlation a to v, as below :-
 Om =
f ( DO ) = A ( S**a U**b W**c L**d )-------- ( 11 )

 corresponding to the relationship ( 04 ) in Part - 1.
 In =
f ( DI ) =
 B ( S**e U**g W**h L**j ) ( P** k CS**l TS**p )
 -- (
12 )
corresponding to the relationship ( 05 ) in Part - 1.
Also, the Socio-Economic goals Gx are influenced by the intangible constraints. This could be mathematically represented as
Gx = E ( S**q U**r W**t L**v )---------------- ( 13 )
Hence, the enlarged Productivity, as a ratio between Socio-Economic goals and the inputs could be represented as

  SIGMA {Gx   / f  ( DI ) }  =

 { E ( S**q   U**r W**t   L**v ) } Divided by
       { B ( S**e  U
**g W**h   L **j ) ( P**k CS** l TS**p ) }
 = { E / B ( P
**k C**l T**p ) }{ S**( q - e ) U**( r - g ) W**( t - h ) L**  ( v - j ) }
 = Y { S**( q - e ) U**( r - g ) W**( t - h ) L**( v - j ) }
   --- (
14 )
 where Y = { E / B ( P
**k CS**l TS**p ) }------------- (
15 )

Output to Input peripheral ratio could be represented by
f
  ( DO / DI ) = { A ( S**a U**b I**c L**d ) }Divided by
   { B ( S
**e U**g I**h L**j ) ( P**k CS**l TS**p ) } > 1
 = { A / B ( P**k C**l T**p ) } { S**( a - e ) U**( b - g ) I**( c - h )
        L
** ( d - j ) }
 = V { S**( a - e ) U**( b - g ) I**( c - h ) L**( d - j ) }
 ------ (
16 )

 where V = { A / B ( P**k CS**l TS**p ) }-------------- ( 17 )

Synchronisation of Output decisions to the Socio-Economic development goals is represented by

  SIGMA {Gx   / f  ( DO ) }

 Gx =  f  ( DO ) or  { E ( S**q U**r W**t L**v ) } =
     { A ( S
**a U**b W**c L**d ) } from (
11 ) and ( 13 ).      Hence,
 { A / E } = { ( S**q U**r W**t L**v ) / ( S**a U**b W**c L**d ) }  or
Q = [ S**( q - a ) U**( r - b ) W**( t - c ) L**( v - d ) ]
 ----- (
18 )
 where Q = ( A / E ) ------------------------------------------ (
19 )

From ( 15 ), ( 16 ) and ( 18 ), the following could be derived.
 [ V / Y } = { A / B ( P
**k CS**l TS**p ) } Divided by
                  { E / B( P
**k CS**l TS**p ) } = { A / E } = Q
 ------ (
20 )

10.  MANAGEMENT DECISION INFERENCES.

The guidelines set by the algebraic solution could be logically and systematically interpreted into different Management Decision directions, with reference to the expanded Socio-Economic development oriented Productivity model.

10A.  SOCIAL RATE OF RETURN OVER QUANTUM RATE  OF RETURN

Equations (15) and (17) are the constant of proportionality for the Socio-Economic development Productivity and Output to input relationship respectively. In both these equations, the coefficients of correlation k, l, p relative to Psychological, Commercial and Technical aspects appear in the denominator.

It implies that higher the values of k, l and p , then lesser the Socio-Economic Productivity as well as the ratio of output to input.

The developing world population is more elastic to philosophical, political, religious and other environmental disturbances, which attract and appeal to their psychology. Hence, psycho-intensive Management Decisions could lead to industrial unrest, strikes, and large-scale immigration of local skills outside the geographic boundaries ( Village, State or National boundaries ). Hence, cautious approach should be followed while making any psycho-intensive Decisions.

Also, over-intensive commercial or technical Decisions could either lead to an un-employment situation or inadequate adaptability of domestic households and local professionals to such mechanical environments.

The experience of multi-national Corporations among developing nations in Asia, to synchronise their mechanised and computerised operations with their head-quarters in America or Europe, has caused many problems. The first is the psychological resistance to change attitude from the domestic management and labour class. The second aspect is from lack of social infrastructure to plan, process, utilise, update and optimise the use of both hardwares and softwares (of automated program controlled machines or computers). The third impact is from the lack of local support both from the government and the labour unions. The local labour laws view the creation of unemployment by any corporate sector so seriously, to the extent that they even nationalise the sector, to maintain the minimum employment guarantee.

The last impact is from the weak domestic currency in the international exchange market, which cannot buy even the cheapest machineries or softwares, available from economically advanced nations. This experience demonstrates a broad-spectrum coverage of the constraints out-lined in this model.

As per this model guideline, the solution is to view the mechanisation or computerisation as a techno-intensive investment decision, and apply it in phase, by considering the Social Rate of Return as more important than the Quantum Rate of Return. Then the Management action shall be to start with optimisation models, cost-reduction projects and Socio-Economic development oriented modules, and consider all other areas as low priority items in the mechanisation / computerisation process.

10B.  SOCIO-ECONOMIC DEVELOPMENT OVER
        QUANTUM OUTPUT

The resultant Coefficients of correlation for Social, Universal, International and Local environments in equation ( 14 ) and ( 16 ) are expressed as
( q - e ), (
r - g ), ( t - h ), ( v - j ) and ( a - e ), ( b - g),
( c - h ), ( d - j ) respectively. This implies that both the Decisions related to Socio-Economic-Development, Productivity and Output to Input ratio could be favourable, only if
{ e > a and q } , { g > b and r } , { h > c and t }, and
{ j > d and v }

This provides a relational guideline on Social, Universal, International, and Local ( SUWL ) constraints on the three Management Decision areas.

a, b, c and d relate their influence to Output Decisions e, g, h and j relate their influence to Input Decisions. q, r, t and v relate their influence to Socio-Economic-Development goals.

These algebraic derivations infer that the relative influence of these four ( SUWL) intangible constraints should be ensured that it is less in both Output and Socio-Economic-Development goals formulation than the Input area.

Hence, the Management Decisions sequence should be :

  • Stabilise the Socio-Economic-Development infrastructure of the operation first, by optimally utilising the available inputs to produce the basic-need outputs.

  • Secondly, after an acceptable level of Socio-Economic-Development stability, plan the output upgrades, by properly synchronising the domestic and imported input supplies.

  • Thirdly, improve the domestic input supplies to attain a full self-sufficiency level.

By following this sequence, the influence of intangible constraints on Socio-Economic-Development goals and outputs are tackled at first, and reduced to a minimum. Subsequently, when the input upgrade decisions are under implementation, the relative influence of these intangible constraints will be either negligible or even nil .

Japan is a good example which adopts a bottom to top Decision-pooling technique in all productive operations. This is a built-in methodology to avoid the psychological resistance to change attitudes, post-implementation social problems, and divergent group-interests among the local communes, as well as the unforeseen set-backs at the international level and unexpected calamities due to universal disturbances. They are met jointly with moral and physical courage. Their techno-commercial superiority in the world, inspite of the lack of domestic oil and steel, and inadequate land area to house giant-size projects, is because of their management methodology in line with this model.

10CINTANGIBLES OVER TANGIBLES

When the Social, Universal, International, and Local constraints are related and graded between Socio-Economic-Development and output Management Decisions, their relative correlation coefficients appear as
( q - a ), ( r - b), ( t - c ),and ( v - d ) respectively, in equation
(
18 ). This infers the occurrence of optimum synchronisation between Socio-Economic-Development and output Management Decisions, only when

q > a, r > b, t > c, and v > d. It means that the Socio-Economic-Development oriented Decisions are relatively guided intensively by these four intangible constraints, than output Management Decisions.

Some developing nations in Asia, motivated by their interest to substantially increase the domestic quantum production capability, than their Socio-Economic-Development goals, nationalised the large-scale multi-national petroleum, chemical and research-intensive electronic industries. This is obviously contradictory to this algebraic inference.

Subsequently, these developing nations are forced to either invite back the multi-national management teams of these nationalised sectors, or open these sectors to private operators. This is because of these following environments :

  1. Even-though the output quantum production capability of the sectors were adequate at the time of nationalisation, the social infrastructure to support, manage, and produce "quality" outputs to meet the domestic and export standards, were absent.

  2. Technological security and safety standards were sacrificed by the outdated and traditional government management, in the post-nationalisation period. The market leadership of these sectors deteriorated, and non-adherence to public health standards resulted in environmental pollution, causing problems to large volume households around, as well as the in-house labour.

  3. Lack of international research and development facility and closure of avenues for the exchange of experiences, kept their products and services outdated within their nation, and obsolete in the international market.

  4. Techno-intensive local skills developed within these sectors, migrated to comparatively developed nations abroad, looking for opportunities to optimally utilise their skills, and get adequate incentives for their know-how.

These current situations among developing nations support this algebraic inference of the Management-Decision model.

10D.  BILATERAL INPUT AND OUTPUT INTEGRATION

The ratio A/E is equal to the ratio V/Y is derived in equation ( 20 ). The inference is that the bilateral Input Decisions relative to both Output and Socio-Economic-Development Productivity (represented by V/Y), should be equally balanced by output Decisions ( unilateral dimension ) towards Socio-Economic-Development goals
(represented by A/E).

It means that any nation directing their efforts towards self-sufficiency and self-dependency through proper infrastructure to deliver the output products and services, should also pre-evaluate their implications on input resources relative to :-

  1. The feasibility to develop and maintain the supply of input Materials, Machinery, Management and Productive skills from domestic sources. This is represented by [ Gx / ( DI ) ] should be optimum.

  2. Impact on output products and services to supply them at economically justifiable costs and socially acceptable quality. This is represented by [ Gx / ( DO ) ]

Thus the input should serve in such a way to assist the Socio-Economic Development goal optimisation as well as Productive Output. In addition, the Output should also be oriented towards Socio-Economic development optimisation.

The Optimum Management Decision  is a favourable Ratio between pre-determined Socio-Economic Development goals to the Input Management Decisions, as well as the Ratio between pre-determined Socio-Economic Development goals to the Output Management Decisions, subject to a favourable ratio of  Output Management Decisions to Input Management Decisions.

Hence, the final redefinition of Productivity is a favourable Ratio between pre-determined Socio-Economic Development goals to the Inputs as well as the Ratio between pre-determined Socio-Economic Development goals to the Outputs, subject to a favourable ratio of Physical outputs to Inputs .

11.  CONCLUSION.

Money is the medium of exchange for wealth, and its usefulness to the domestic society is attained when it is pooled and productively utilised as a Capital investment . Technology is a medium of conversion for the generation of utilisable output goods and services, from the input resources. Management is a methodology to match and optimise the productive utilisation of both money and technology, to serve their optimum purposes, towards a broad-based Socio-Economic-Development goals. Socio-Economic Development is the cumulative upgrade in the standards of living and peaceful co-existence between different groups and societies within a nation.

Thus, the tangible wealth and intangible technology are inter-tangled to serve their productive purposes by the Management-Decision methodology, terminating at the Socio-Economic-Development offspring. The effectiveness of all these three ingredients should hence be evaluated with reference to the ultimate end-use, namely the Socio-Economic-Development.

With this in view, the Productivity, which measures the effectiveness of all the inputs with the outputs is redefined to reflect their contributions towards the Socio-Economic-Development goals, with an advantageous output generation potential. The Management Decision process, which designs, implements, and monitors these productive achievements, need proper directive orientation, with reference to this enlarged Socio-Economic-Development Productivity model.

Development of an algebraic Management-Decision model and its solution leads to the conclusion that

  • There is a need for cautious approach to the psycho-techno-commercial intensive Decisions.

  • Consider Social return as more important than quantum returns.

  • Pre-assessment and control of the influence of social, universal, international, and local constraints on Socio-Economic-Development and output { with more emphasis on the Socio-Economic Development than on Output }.

  • Bilateral synchronisation of inputs and outputs with reference to Socio-Economic-Development goals.

The practicality of these inferences are obvious from the experiences of various nations in the world, in different Socio-Economic-Development brackets. As per historical guidelines,

Nomenclature is mere identification. Expression is greater then the name (nomenclature). Innovation is greater than the expression. Execution is greater than the innovation. Results are greater than execution. Knowledge updating and perfection is greater than results. Improved utilisation is greater than the knowledge. The highest level of utilisation is their unification into the Life and make it Valuable.
Source : The Chandogya Upanishad from the Hindu "Sama Vedham"  Chapter 7, Section VII, Verse 1.4 (Ancient Sanskrit astro-scientific scripture dated back to about 1500 B.C)

Economics and other sciences in the world developed different concepts, and designated them with different nomenclatures. The research and development activities innovated and propagated their advancements. Technology executed them to produce tangible and intangible results, updated them and perfected them through feed-back systems. Management utilised the improve systems gained from all these processes. Ultimately, they should serve the betterment of the value of life of people in the national and international society.

This expanded Productivity and management-Decision model, the algebraic solution and their interpretation is a magnificent attempt towards this vicious Socio-Economic-Development upgrade in the new Millennium.

====================================================
LEGENDS

CS  Commercial Systems  Coefficient of Correlation with reference
  to  DI is l
D I  Decisions on Input  B - Constant of Correlation with reference
 to L, S, W, U
DO  Decisions on Output  A - Constant of Correlation with reference
 to L, S, W,  U

G

Socio-Economic  Development goals

  1 to x

 E - Constant of Correlation with
 reference to  L, S, W, U

I

  Inputs  ( 1 to n )

L

Local
( Domestic ) disturbances
Coefficient of Correlation with reference to DO is d, DI is j , G is v
O Outputs ( 1 to m )

P

Psychological constraints Coefficient of Correlation with reference to
DI is k
PG Productivity relational to Socio-Economic Development ( 1 to z )

Q

  A / B V / Y R Output to Input ratios ( 1 to y )

S

Social disturbances Coefficient of Correlation with reference to
O  is a ,  DI is e,   G is q.
TS Technical Systems Coefficient of Correlation with reference to
DI is p
U Universal disturbances Coefficient of Correlation with reference to
DO is b,  DI  is g,  G is r
W International
( World )
disturbances
Coefficient of Correlation with reference to
DO is c ,  DI is h , G is t

V

 Correlation constant between Output and Input Decisions, relative
 to P, CS, TS

Y

 Correlation constant between Socio-Economic Development goals
 and Input Decisions, relative to P, CS, TS.

 

 

 

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MANAGEMENT DECISION & REDEFINED PRODUCTIVITY
CONCEPT SUMMARY SCHEMATIC
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Harry.G.Johnson (1923 - 1979. Canada). Department of Economics, University of Chicago, USA.
Technology, Technical Progress, and International Allocation of Economic Activity.Proceedings of a Nobel Symposium held in Stockholm (35th), on the International Allocation

Economic Activity. ( 1976 ).          Pages 314-324. 
Comments   : Sune Carlson.       Pages 325-327
                          Ronald.W.Jones.  Pages 328-334.
Summary of Discussions.           Pages 335-339.
Editors        : Bertil ohlin, Per-ove Hessellborn, Per Magnus
                        Wijkman.
Publishers : Holmes and Mier publishers Inc, 101 - 5th Avenue,
                        Newyork 10003, USA.

  BIBLIOGRAPHY - 2
{ Author's Other Research Publications }

1. Accelerate Your Socio-Economic Development :  An Eccentric
    Bi-circular Model and Solution.

  • ALTIJARAH, Monthly Economic Magazine of the Sharjah Chamber of Commerce & Industry. UAE.
  • April 2000 - Pages 36 to 38, May 2000 - Pages 44 to 48,
    June  2000 - Pages 43 to 44, July 2000  - Pages 42 to 44.

2.  Mrs. Gandhi Gave New Economic Approaches.

  • Barbados Advocate (Daily News Paper),  Barbados, West Indies.
  • January 8, 1985. Page 4 - Centre Page Article.

3.  Corporate Infrastructure for 5th Generation Computers.

  • INDIAN MANAGEMENT, Journal of the All India Management Association.  June 1985 - Pages 19 to 28.

4. Other Past Publications : ( In various Indian and International
    Journals )

  • Economic Science & Management - 10
  • Manpower Management - 8
  • Materials Management - 3
  • Productivity - 2
  • Resource Optimisation - 8
  • Research & Development - 4
  • Training Management - 2.

***************************************************

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Press Release
A Redefined Productivity Model & Socio-Economic Development Oriented Management Decisions.
Author : Dr.VSR.Subramaniam.MBA.,Ph.D.,Post Doctorate in Computer Science
URL : www.drvsrs.com/concepts.htm

*********************************************
 

01. Till now, Management Decision and their optimisation
       are constrained to the area of Commercial and
       Technical fields.
02. This paper opens up the span of Management Decision
        to a vast and important area namely "Socio-Economic
       Development" not thought of, so far.
03.  The effect of Intangible (un-quantifiable) components
        are added and integrated as part of constraints to the
        Decision Methodology.
04. Also the concept of Productivity is currently restricted
       to the Quantum ratios of Output and Input.
 05. This paper expands the definition of Productivity to a
       critical area namely "Socio-Economic Development",
        not extended so far by the faculties of Economics and
        Management.
 06. The Expanded range of Management Decision with the
       added constraints, and Redefined Productivity are
        integrated and framed into an Algebraic Model.
07. Solving the Algebraic links leads to selected, practical
       and implementable evaluation of Productivity rise or
        fall, as well as the Effectiveness of Management
        Decision, with reference to a broad-based
        Socio-Economic Development goal units.
08. The solutions provided by the Algebraic Model is also
        represented by a Schematic Diagram, to enable the
        understanding of all persons at different levels of  
        knowledge.
09. The  Algebraic theory is well supported by the Slide
        show and development experiences of over 44 nations
         in the world (in the Field support page).
10. 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).
 11. This research paper is considered as a valuable
       contributor to the International Development by

  • Social Science Research Network (SSRN), Rochester, NY 14618, USA.
    See at http://www.ssrn.com/author=360079.

  • Ideas/Research Papers in Ecnomics Net work, USA
    See at http://ideas.repec.org/e/psu50.html

  12. The Author has adequate practical experiences in the
        development and implementation of his model through
        his  past  assignments in International Socio-Economic
        development institutions as well as Private corporate
        units and Multi-nationals, Association with Nobel
        Laureates in Economic Science / Country Heads, Past
        Research and Development works / Publications,
        Faculty-ships in Training and Development of
        Manpower etc...
 13. This paper deserves to be seen and understood by the
        Heads of  the Governments/Corporate units,
        Professors / Researchers in Economics and
        Management Science, Universities / Economic /
        Management Education institutions etc... all over the
        world.
14. The Page "http://www.drvsrs.com/concepts.htm"
       provides hyper-links  to the Full Publication, Summary
       Page, About the Author, Past  Publications, Faculty-
       ships etc...

* * * * *


Management of Essential Needs
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. In Welches Gardens, St.Michael, Barbados. West  Indies,  on Saturday the April 20, 1985  
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PALACE   
                   05. DOMAINS & DECISIONS                            

KAUTILYA  {Alias CHANAKYA}
Prime Minister of India's First Great Emperor Chandra Guptha Maurya, (4th Century BCE) in his ARTHA SASTHRA

About good ruler (King)
In the happiness of his subjects lies his happiness, in their welfare his welfare, whatever pleases himself he shall not consider as good, but whatever pleases his subjects he shall consider as good.

{Source : www.wsu.edu}

Verse 3880, Chapter XII in "Mahabharatham"
The Indian Epic poem,  (About 1500 BC)

Enjoy  Thou  the   Prosperity   of    Others. 
Although  Thyself  Un-prosperous.   
Noblemen Take Pleasure in their Neighbour's Happiness.

KADAYAM KASTHURI KALYANI (KKK-1)

MANAGEMENT DOCTRINES OF MY (LATE) MOTHER Daughter of an Accredited and Highly  Honoured Rural Judge
==========================================

Evaluate your contributions with reference to the benefits achieved by all the members in the Home and the Society. Don't be selfish and
short-sighted.

With reference to the Home and the Society, what you contribute should be good, as well as the after effects and results, too should be good and acceptable.

Decide and take actions which will be good, and at the same time satisfy your conscience, bring happiness to the  group members, improve the welfare of the society and benefit a large circle of people around in the World. 

Think and take precautions on all possible problems and troubles that you may have to come across, when you are targeting to achieve certain Constructive and Productive goals.

Dissociate from people of un-constructive, un-productive, self-centered thoughts and actions, as well as who are not willing to recognise the individual greatness among every human being in the World, irrespective of their Social and Economic background and status.

Learning is an on-going process without any time constraint, in everybody's life.

This Research Paper is a Protracted version of the Productivity Dimensions, and an Algebraic Alleviation / Agility for the associated Management Decision Methodologies, based on  these  Basic  Motivating Doctrines.
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