"I have shortlisted two candidates for the post of the CEO. I want to discuss the selection with you" said Sundaresan, the Managing Director of the company.
"You could make the selection. What is the need to discuss this with me?" asked Agarwal, the Chairman of the company.
"One of the five Divisional Managers of our company has to be selected as the CEO. Shortlisting two candidates was easy. But I found selecting one of these two as the CEO challenging. Both have made valuable contributions to the company. I used certain parameters and come to a conclusion. I want to discuss my approach with you, before making the final selection. Here is the brief profiles of the two. Please go through them."
Agarwal quickly ran through the two profiles.
"I understand your dilemma. Both men score almost equally on all aspects of management. Who is your choice? What promoters did you use?" asked Agarwal.
"Of the two Divisional Managers Kumar and Ramesh, Kumar has been heading a division which is slightly larger than Ramesh's. So, Kumar will appear to be the obvious choice. But since both these men have been reporting to me and since I have been interacting with the executives working under them, I have some insight about the two!"
"From what you say, it appears that you have chosen Ramesh over Kumar. You have not left any room for suspense" said Agarwal, smiling.
"You will know whether there is a suspense or not, only after I outline the parameters considered by me!" said Sundaresan, smiling back. "However, whether there is a suspense or not, I am only concerned that you accept the substance in the criteria of my choice. That's why I wanted to discuss my approach with you, in detail" he continued.
"Go ahead" encouraged Agarwal.
"I considered six parameters. I took marketing efficacy as the first parameter. Marketing to a company is what an army is to a country. It is the strength of the marketing team that will decide the strength of an organization. Kumar has a large marketing team. His team members get more perquisites, incentives etc. But Kumar's marketing team doesn't have the level of enthusiasm that Ramesh's marketing team has, though marketing is more challenging for Ramesh's division, in view of the high competition for its product. Ramesh's marketing team works with a lot of energy and enthusiasm. This is because Ramesh frequently interacts with his team members, listens to their problems and suggestions and makes them feel enthused."
"Kumar has lost his wicket already. There is no room for any suspense!" remarked Agarwal.
"As I said, you need to look into the substance of my approach!" replied Sundaresan and continued "The second parameter considered by me was employee morale. Outwardly, the employees of both the divisions are happy. But in Kumar's division, there has been a recurring development of quite a few employees leaving their jobs and new people taking their places."
"You are talking about employee turnover. I am familiar with that management jargon!" said Agarwal, smiling again. it was clear that he was enjoying Sundaresan's presentation.
"Sir, I am aware that you are updated on everything relating to management. I avoided using the term 'employee turnover,' because I didn't want to use any jargon. Coming to the third parameter, we have given a degree of autonomy to each division in matters relating to providing facilities to employees. Though Ramesh's division has been earning a lower profit, its employees enjoy better facilities. Even canteen subsidy is higher there."
"That may be a reason for its profits being lower!"
"No, sir. This is about having concern for the welfare of the employees. The fourth parameter is the consultative mechanism. Kumar follows the practice of consulting only the senior executives. Ramesh, on the other hand, widens his consultation by inviting suggestions from all the employees and encouraging them to be a part of the consultative process. He considers valuable suggestions coming from any quarter."
"What more is there for you to consider?" asked Agarwal, wondering why Sundaresan has still not come to the stage of deciding on the selection.
"There are two more parameters to go, sir. The suspense you expect is also there. I would rather call it a surprise!" said Sundaresan and continued. "The fifth parameter is contacts. Ramesh has a good rapport with several executives in other organizations in the similar line of business. Not our competitors, of course. He could get help from them, in times of need. Some time back, when there was an unexpected raw material shortage, Ramesh procured some quantity for his immediate needs from another company, through his contacts. I learnt about this only much later."
"Ok. What is the sixth parameter?" asked Agarwal, his curiosity about what Sundaresan was holding back reaching a peak.
"I think, the sixth parameter is crucial. Preparedness for contingencies. Ramesh is very sensitive to the possibility of such contingencies. He has a research department to prepare contingency plans in the event of the demand for the product manufactured by his division falling or a substitute product entering the market. This might have contributed to the profit of his division being lower. But this is like an insurance, isn't it?" asked Sundaresan.
"So, Ramesh has scored over Kumar in all the six parameters considered by you. Therefore, you have selected Ramesh as the next CEO. Am I right?" asked Agarwal, a little disappointed that the surprise promised by Sundaresan didn't materialize.
"Yes, sir. Before revealing my selection, I wanted to check with you whether my approach is correct" said Sundaresan.
"Brilliant, Mr. Sundaresan! You are not a Management graduate! I wonder how you conceived these six parameters. By the way, you indicated that there would be a suspense or surprise. What is it?"
"Well, if you had considered my approach faulty, that would have been the suspense!" said Sundaresan, smiling.
"No. I think there is something I am missing! I have a suggestion. You can write a book about the approach you have followed."
"I can't do it, sir. Someone has done it already!"
"Oh, that is the surprise, then. Who did it? An American author, I believe" said Agarwal.
"No, sir. An Indian author. He wrote about this two thousand years back, in Tamil. His name is Thiruvalluvar" said Sundaresan.
Thirukkural
Section 2
Section 2
Materialism
The Might of a Ruler
Verse 381 (in Tamil):The Might of a Ruler
padai kudi kUzh amaichchu natpu araN ARum
udaiyAn arasaruL ERu.
Meaning:
The King who possesses a powerful army, loyal citizens and ministers (advisors), who ensures food security to his people, who has friendship with other kings and who establishes a system of strong defense is the most powerful among all kings.
(This is the English version of the Tamil story 'iruvaril oruvar' by the same author.)
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