-1-

FORSTERING HUMAN CAPITAL FOR INSTITUTIONAL DEVELOPMENT: AN INDIAN MODEL

Dr C Chendroyaperumal Professor and Head Department of Management Studies Saveetha Engineering College, Chennai Ccp_dr@yahoo.co.in Key words: Human Capital, Institutional Development, Indian Model

Abstract
Resources like buildings, machines, policies, rules, regulation, etc of any organization are only passive factors by their very nature in not only in day-to-day activities but also in the development of the organization. The only factor that is active by their nature is the human resource. It is only this active resource that turns all other passive resources into active resources to carry out the basic functions of an organization. The role of human factor has gained importance only very recently and hence is aptly renamed as human capital. Thus development of any institution depends primarily on the human capital. This paper attempts to highlight the principles of fostering or managing associates (recent term for employees) relationships, and build a model for developing human capital in any organization, from a 2000 year old Indian work namely Thirukkural.

Human Capital Activates Other Resources

All other resources are only passive instruments. Only the active human resource or capital activates these resources. All institutions are established and developed by the human capital. The strategic role of human capital was brilliantly glorified in the great Indian epic Mahabharata in which the Pandavas preferred Lord Krishna as a single person to all his army and the final victory was on Pandavas side. Only Western management thought has been much written and talked about leading to indicate lack of any original contribution from the Indian intellegentia. Hence this paper attempts to highlight an Indian thought and build a model on fostering or managing human capital (i.e. employee relationship) especially from Thirukkural, from chapter53 only, existing since only 2000 years only!

II

Principles of Developing Human Capital from Thirukkural

Development of any organization is possible only through its efficiency. Organizational efficiency depends on the efficiency or utilization of all resources that are determined by the efficiency of the human capital. The principles of managing the human capital have been propounded as back as 2000 years in Thirukkual. These principles are presented below in brief followed by the couplet.

Electronic copy available at: http://ssrn.com/abstract=1335184

-21 Determination of mind of the worker is work efficiency and nothing else.

Accoridint to Thirukkural work efficiency is nothing else but the determination of the mind (of the worker), as stated thus: Vinaithitppam enbadhu oruvan manathitpam Matraya ellam pira. (Kural-661) 2 Development of associates will give productivity.

Thirukkural states that the development of the associates (i.e. employees) will certainly result in increased productivity whereas work development will give all that that is desired as in: Thunainalam aakkam tharum vinainalam Wayndiya ellam tharum. (Kural-651) 3 Appreciate the associates!

Thirukkural suggests that the associates be appreciated in the work place. It is only the fellow associates who appreciate another fellow associate even though poor. Therefore the manager should devise, as implied in Thirukkural, strategies and methods for the associates to appreciate their fellow associates, as in: Pattratra kannum palaimai paarattudhal Suttrathaar kannay vula. (Kural-521) 4 Create strong bond among associates!

Thirukkural prescribes in Kural-522 that if an organization establishes a strong bond or attachment among associates then that will result in manifold profitability for constantly growing wealth. Viruppuaraa suttram eyaiyin aruppuaraa Aakkam palavum tharum. (Kural-522) 5 Foster socialization in the organization to build bond to retain human capital!

Thirukkural suggests a method to create strong bonds among associates in Kural-523. It states that life without socialization is useless like the boundless pond being filled with water (water does not stay in the boundless pond since it flows out immediately). This implies that lack of socialization will result in increased employee turnover problem. Thus it recommends that the organization should develop and maintain socialization if it wants to increase the attachment (i.e. bond) among the associates and retain them in the organization. Alavalaavu illaathan vaalkai kulavalaak Koduindri neer nirainthatru. (Kural-523)

Electronic copy available at: http://ssrn.com/abstract=1335184

-3-

Richness attracts the associates, hence pay well!

To Thirukkural, the benefit of acquisition of wealth is to pay well and thus have the associates compete to remain in the organization, as in: Suttrathal sutrapada olugal selvandhan Petradhal petra payan. (Kural-524) 7 Speak nicely to strengthen the bond with associates!

Thrirukkural suggests that if the boss performs the acts of payments to the associates and speaking nicely (pleasantly) to the associates, then that will build the associates bond and this will bind them to the organization as below: Koduthalum insollum aatrin adukiya Suttrathal suttrap padum. (Kural-525) This couplet also implies that the performance contribution of the boss in employee retention is important and is indicated by two parameters namely payments and nice-talk. Therefore it is the duty of the boss to be nice in talk and payments as well. 8 Reward associates generously! Nurture not anger!

Thirukkural recommends that the boss should gift or reward the associates very generously, but at the same time the boss should take care not to nurture anger, to have the greater wealth (human capital) and following like none on this earth, thus: Perungkodaiyaan paenaan veguli avanin Marungudaiyaar maanilathu ill. (Kural-526) 9 Dine with associates!

Thirukkural states that the boss should also dine with his associates, like a crow calling its kindred and then shares and eats the available food; wealth, development and growth also remain with the people of this quality only: as below: Kakkai karavaa karaindhunnum aakkamum Unna neeraarkay vula. (Kural-527) 10 Pay personal attention and Distinguish associates on merit!

Many people will live looking forward, as per Thirukkural, to receiving personal or special attention by the boss rather than in public or in a meeting equally, thus: Podhunokkaan waendhan varisaiya nokkin

-4Adhunokki vaalvaar palar. (Kural-528)

This concept indicates the Hawthrone Effect which is, the possibility that workers who receive special attention will perform better simply because they received attention. (Stoner, et al, p-42) 11 Remove the cause of employee exit!

Thirukkural states that those who became associates and then disassociated themselves (from the organization) will come back (for employment) if the cause for their exit is removed, thus: Thamaraagi thatrurandhaar suttram amaraamaik Kaaranam indri varum. (Kural-529) 12 Probe the reason for quitting before appointing an ex-associate!

Thirukkural cautions that, if an associate quits the organization for some reasons and return seeking employment, then the boss should discuss (the reason with the ex-associate) and probe the reason before taking in, thus: Vulaipirindhu kaaranthin vandhanai vaendhan Elaithirundhu yenni kolal. (Kural-530) This implies that the employer should not employ an ex-associate automatically when returns.

III

Human Capital Development Model

Integration of the ideas presented above provides us a model for developing human capital in an organization. Three factors namely fostering socialization, bosss nice-talking, bosss dining with the associates influences the bonding of the associates with the organization positively whereas bosss anger proneness discourages (negative influence) the associates bonding. Associates bonding positively causes associates development and inversely causes employee turnover (i.e. positive effect on the human capital). Generous gifting or rewarding to associates is a symptom (effect) of appreciation and recognition of merit and with good payments and personal attention influence the mental determination (i.e. the intensity of desire) of the associates. This in turn along with the development of associates cause efficiency positively. The causes of associates exits should be removed to maintain the human capital of the organization. These causal relationships of this model are presented in Figure-1.

IV

Application of the model

The model for developing the human capital of an organization is simple and easier to implement even today. In fact this model is widely in use world over. For instance, organization of events such as tea parties, luncheons, dinner party, picnics, sport activities, cultural activities, family get together, celebration of festivals, etc execute the following causes in the model namely fostering socialization, boss dinning with the associates, boss performing nice-talks, bonding of associates (thus development of associates), appreciation of associates, personal attention, recognizing

-5merit, generous gifts or rewards (thus the mental determination or intensity of desire of the associates) resulting in the efficiency of the associates and thus the efficiency of the institution as a whole.

Reference:
1 2 3 4 Luthans, Fred., Organisational Behaviour, 10th Edition, McGraw Hill, New Delhi, 2005. Robbins, Stephen, P., Organisational Behaviour, Prentice Hall India, New Delhi, 2006. Stoner, James, A.F., Freeman, R.E., Gilbert, Daniel, R.J., Management, 6th Edition, Prentice Hall India, New Delhi, 1996. Drew, W.H., and Lazarus, J., Thirukkural, Asian Educational Services, Madras, 1996.