Tag: International Finance Mumbai University BMS Notes

Project Selection is a process to assess each project idea and select the project with the highest priority.

Projects are still just suggestions at this stage, so the selection is often made based on only brief descriptions of the project. As some projects will only be ideas, you may need to write a brief description of each project before conducting the selection process.

Benefits of Project Selection and Prioritization

Project selection and prioritization are all about having a game plan that accounts for both capacity and strategy. Let’s take a look at the benefits that companies stand to gain when these are balanced right.

Increased efficiencies: By investing effort upfront to evaluate the project pool, companies weed out inefficiencies that may creep up later due to not having enough capacity for execution.

Strategic alignment: A project that does not cater to organizational goals, even if executed flawlessly, is a waste of time. The right selection helps companies stay on track with their goals.

Importance

Better ROI: The fundamental outcome of any project selection process is to increase the ROI. Several selection criteria and prioritization methods, discussed later in the article, can be used to weigh projects against each other, based on their returns.

Consistency and transparency: A standard selection approach helps the PMO benchmark projects against well-defined criteria rather than use ad-hoc processes that lead to inconsistent approvals. The upside of this consistent approach is transparent downstream communication, as project managers get clarity on why a certain project was approved or rejected.

Shorter time-to-market: As companies become larger, they struggle to maintain an aggressive time-to-market, with a sea of projects competing for attention. Prioritization of projects gives companies the first-mover advantage, enabling them to reach customers before competition.

Successful project delivery: When organizations have good project selection and prioritization processes in place, it leads to the successful delivery of projects.

Selection of projects is based on

(i) Benefits: A measure of the positive outcomes of the project. These are often described as “the reasons why you are undertaking the project”. The types of benefits of eradication projects include:

• Biodiversity
• Economic
• Social and cultural

Fulfilling commitments made as part of national, regional or international plans and agreements.

(ii) Feasibility: A measure of the likelihood of the project being a success, i.e. achieving its objectives. Projects vary greatly in complexity and risk. By considering feasibility when selecting projects it means the easiest projects with the greatest benefits are given priority.

Reason of Project Selection

Often you will have a number of suggested projects but not enough resources, money or time to undertake all of the projects. The ideas for eradication projects may have come from many sources including: the community, funders, local and national governments and Non-Governmental Organizations (NGOs). You will therefore need a way of deciding on a priority order and choosing a project.

If your organization has limited experience in conducting eradications then it is recommended to concentrate on a small number of projects, ideally one project at a time, until the people in your organization have developed the skills and experience. Grow capacity and build up to undertaking multiple projects at any one time. Do the easy projects first. Work towards the most difficult and rewarding projects. Use the easy projects to help answer questions/solve issues for the more difficult projects. Use the best opportunities to learn.

You may have a mix of straight forward and difficult eradication projects and do not know where to start. The Project Selection Stage will assist you by providing a process to compare the importance of the projects and select the most suitable project to undertake.

By following the Project Selection Stage you will follow a step by step objective method for prioritizing projects – this can be used to explain to stakeholders the reasoning behind why you selected a particular project.

The benefits of completing the Project Selection are:

A transparent and documented record of why a particular project was selected

A priority order for projects, that takes into account their importance and how achievable the project is

Involvements:

Agency Management: Set selection criteria to ensure the selection process aligns with agency strategies. Selection processes are often run as a management initiative before the implementing Project Manager is assigned.

Stakeholders: Stakeholder participation at the start of a project creates strong community ownership and support, and increases the chances of a successful outcome. Stakeholder input should be included at the ideas stage; consult widely as you are developing the ideas for projects as the community will be the source of many of the best project ideas. Stakeholders must be informed of the outcome of the Project Selection Stage.

Project Manager: Involving the Project Manager in the Project Selection process will help build ownership in the project and support a successful project in the long run.

Process of Project Selection

(i) Identification of Projects

The first step of this process, identification, requires a clearly defined and communicated strategy. The best option would be to set up a strategy development process that contains project identification and project selection as an integral part (cf. “How to Find the Right Projects” in sub-section White Papers). In fact, we observe that most organizations identify investment projects within their strategy development process, but delegate the identification of customer projects to their key account and sales departments.

(ii) Evaluation and Prioritization of Projects

Central part of the project selection process is evaluation and prioritization of identified projects. There are a couple of methods available:

• Net Present Value (NPV)
• Internal Rate of Return (IRR)
• Benefit / Cost Ratio (BCR)
• Opportunity Cost (OC)
• Payback Period (PP)
• Initial Risk Assessment

These methods require a certain minimum level of “planning” for each one of the projects to be evaluated. We need to know

• Project life cycle duration, in number of accounting periods.
• Expected project cost per accounting period.
• Expected project revenue per accounting period.
• Overall risk values of the projects to be evaluated.

(iii) Selection and Initiation of Projects

Project selection and initiation is the step that naturally follows evaluation and prioritization. A particularly delicate step of project initiation turns out to be the staffing of project teams. As mentioned earlier, resources are scarce, and in most organizations appear to be the most limiting factor in project selection. If we take in too many projects we overload our resources, if we do not take in enough we do not utilize them economically enough. As discussed in the sub-section Multi Project Management, having too many staff members working in multi-tasking mode, i.e. on two or more projects at the same time, decreases overall productivity of the organization. On a medium / long term scale, it seems to be the better option to initiate projects in a way so that the teams can focus and work on one project at a time, thus, avoiding disturbances of one project by the others. Of course, that needs clear prioritization of the selected projects, based on evaluation done in the previous step.

(iv) Review of Projects

After project selection we need to regularly review projects that are under way in order to find out if they are still in-line with our strategy. Thus, the first way of checking them is repeating the initial evaluation with more accurate estimates as they become available; the second way is holding regular project management review meetings in order to identify major problems on a per-project basis, via project status reports.

Role of Consultants in Project Management

• Getting familiar with the client’s business environment in order to lead projects effectively.
• Coordinating with relevant stakeholders, both inside and outside the organization.
• Allocating tasks to the project management team and providing regular guidance to team members.
• Ensuring the scope and schedule of projects are achievable within the given time and budget.
• Undertaking periodic reviews to make sure that projects are on track.
• Updating project documentations on a consistent basis and conveying them to the management.
• Developing positive relationships with associates and clients.
• Defining the structure of a project, its goals, and resource requirements.
• Applying theoretical, managerial, and technical skills to fulfill identified objectives and deliverables.
• Implementing a solid project management strategy for task interdependency.
• Consulting issues associated with a project with the project management team, clients, and other interested parties.
• Managing project risks, contingency and mitigation plans.
• Maintaining high team performance and productivity.

Some of the benefits of becoming a consultant are:

• You can choose which projects to take on.
• You’re in charge of your time and typically have more schedule flexibility.
• You get to set your rates and often make more money per hour.
• You can work with many different companies and in various industries.

Selecting Criteria for Project Manager

• Exceptional analytical skills
• Proficiency in project management tools and software
• Strong leadership and motivational skills
• Experience in leading both virtual and physical teams
• Ability to collaborate with diverse stakeholders in a variety of project environments
• Excellent time and cost management skills
• Deep organizational knowledge
• Superb problem-solving and resource planning skills
• Expertise in creating project reports
• Solid interpersonal skills
• Efficiency in managing and prioritizing tasks
• First-class verbal and written communication skills

Payback Period

It is a basic selection model that gives you the time a project will require to return the investments. The projects that have a lower payback period are taken over those with a higher payback period.

Scoring Model

The scoring model is an objective selection method. The PMO executives consider every relevant criterion and score them. The value written against each is then cumulatively added to rate the project. The one with the highest score is chosen.

Opportunity Costs

The opportunity cost model tells you about what you will lose if you give up a certain project. In this case, the project with the lowest opportunity costs is taken up.

Discounted Cash Flow

This model evaluates the future value of money against the current one. Of course, USD 2000$ won’t worth the same in the future. It is a critical factor that should be given due importance while selecting a project.

Net Present Value (NPV)

It is the difference between the current cash inflow and the potential outflow of a project. The only difference between the payback period and NPV is that it considers the discounted cash flow rate, enhancing its accuracy. Note that NPV must be positive for the projects you plan to accept.

Internal Rate of Return

The internal rate of return tells you the interest rate at which the NPV becomes zero. It basically means when the inflow and outflow of the project are equal. You will get an idea of project profitability based on the IRR value.

In business, a strategic business unit (SBU) is a profit center which focuses on product offering and market segment. SBUs typically have a discrete marketing plan, analysis of competition, and marketing campaign, even though they may be part of a larger business entity.

An SBU may be a business unit within a larger corporation, or it may be a business into itself or a branch. Corporations may be composed of multiple SBUs, each of which is responsible for its own profitability. General Electric is an example of a company with this sort of business organization. SBUs are able to affect most factors which influence their performance. Managed as separate businesses, they are responsible to a parent corporation. General Electric has 49 SBUs.

Companies today often use the word segmentation or division when referring to SBUs or an aggregation of SBUs that share such commonalities.

Strategic Business Unit (SBU) implies an independently managed division of a large company, having its own vision, mission and objectives, whose planning is done separately from other businesses of the company. The vision, mission and objectives of the division are both distinct from the parent enterprise and elemental to the long-term performance of the enterprise.

Simply put, an SBU is a cluster of associated businesses which are responsible for its combined planning treatment, i.e. the company engaged in a diversified range of businesses, categorises its multitude of businesses into a few separate divisions, in a scientific way. The task may include analysis and bifurcation of a variety of businesses.

It can be a business division, a product line of the division or even a specific product/brand, targeting a particular group of customers or a geographical location.

Characteristics of Strategic Business Unit

• Own set of competitors.
• Separate business or a grouping of similar businesses, offering scope for autonomous planning.
• A manager who is accountable for strategic planning, profitability and performance of the division.

A SBU is generally defined by what it has in common, as well as the traditional aspects defined by McKinsey: separate competitors; and a profitability bottom line. Four commonalities include:

• Revenue SBU
• Like Marketing Cost SBU
• Like Operations/HR Profit SBU
• Like sales judged on net sales not gross

Success factors

There are three factors that are generally seen as determining the success of an SBU:

• The degree of autonomy given to each SBU manager.
• The degree to which an SBU shares functional programs and facilities with other sbus.
• The way in which the corporation handles new changes in the market.

The structure of SBU consist of operating units; wherein the units serve as an autonomous business. The top corporate officer assigns the responsibility of the business to the managers, for the regular operations and business unit strategy. So, the corporate officer is accountable for the formulation and implementation of the comprehensive strategy and administers the SBU by way of strategic and financial controls.

In this way, the structure combines related divisions of business into the strategic business unit and the senior executive is empowered for taking decisions for each unit. The senior executive works under the supervision of a chief executive officer.

There are three levels in a strategic business unit, wherein the corporate headquarters remain at the top, SBU’s in the middle and divisions clustered by similarity, within each SBU, remain at the bottom. Hence, the divisions within the SBU are associated with each other, and the SBU groups are independent of each other. From the strategic viewpoint, each SBU is an independent business.

A single strategic business unit is considered as a profit centre and governed by the corporate officers. It stresses over strategic planning instead of operational control so that the separate divisions of the SBU can respond as fast as they can, to the changing business environment.

Risk Adjusted Discount Rate Method:

This method calls for adjusting the discount rate to reflect the degree of the risk and uncertainty of the project. The risk adjusted discount rate is based on the assumption that investors expect a higher rate of return on risky projects as compared to less risky projects.

The rate requires determination of:

(i) Risk free rate

(ii) Risk premium rate.

Risk-free rate is the rate at which the future cash inflows should be discounted. It is the borrowing rate of the investor. Risk premium rate is the extra return expected by the investor over the normal rate. The adjusted discount rate is a composite discount rate.

It takes into account both time and risk factors. In this technique, the discount rate is raised by adding a risk margin in it while calculating the NPV of a project. For example, if the rate of discount is 10% for the project, it may be raised to 11% by adding 1% to take account of risks and uncertainties.

The increased discount rate will reduce the discount factor, thereby lowering the NPV. Thus the project would be judged as undesirable. This method is used for ranking of risky projects. But the problem with this method is that there is no ‘specified margin’ which should be added to the free risk rate.

The Certainty Equivalent Method:

According to this method, the estimated cash flows are reduced to a conservative level by applying a correction factor termed as certainty equivalent coefficient. The correction factor is the ratio of riskless cash flow to risky cash flow.

The certainty equivalent coefficient which reflects the management’s attitude towards risk is

Certainty Equivalent Coefficient = Riskless Cash Flow/Risky Cash Flow.

If a project is expected to generate a cash of Rs. 40,000, the project is risky. But the management feels that it will get at least a cash flow of Rs. 24,000. It means that the certainty equivalent coefficient is 0.6.

Under the certainty equivalent method, the net present value is calculated as:

Where α_t = Certainty Equivalent Coefficient

A_t = Expected Cash Flow for year t

I = Initial outlay on the project

i = Discount rate

Sensitivity Analysis:

The future is not certain and involves uncertainties and risks. The cost and benefits projected over the lifetime of the project may turn out to be different. This deviation has an important bearing on the selection of a project.

If the project can stand the test of changes in the future, affecting costs and benefits, the project will be selected. The technique to find out this strength of the project is covered under the sensitivity analysis of the project. This analysis tries to avoid overestimation or underestimation of the costs and benefits of the project.

In sensitive analysis, a range of possible values of uncertain costs and benefits are given to find out whether the projects desirability is sensitive to these different values. In this analysis, we try to find out the critical elements which have a vital bearing on the costs or benefits of the project.

In investment decision, one has to consider as many elements of uncertainty as possible on costs or benefits side and then arrive at critical elements which affect the expected costs or benefits of the project. How many variables should be tested to carry out the sensitivity analysis in order to find out its impact on costs or benefits of the projects. It is a matter of judgement.

In sensitivity analysis, one has to consider the changes in the various factors correlated with changes in the other. In order to arrive at the degree of uncertainty, the decision maker has to make alternative calculation of costs or benefits of the project.

When there are several uncertain outcomes, three cost-benefit calculations are made in this analysis:

(i) The most pessimistic where all the worst possible outcomes are estimated.

(ii) The most likely where all the middle of the range outcomes are estimated.

(iii) The most optimistic where all the best possible outcomes are estimated.

It explains how sensitive the cash flows are under these three different situations. If the difference is larger between the optimistic and pessimistic cash flows, the more risky is the project. The most likely outcome can give a good guide to how ‘borderline’ is the project.

Probability Method:

Another method for dealing with risks and uncertainties is to estimate the probable value for a result. Here one has to see a range of possible cash flows from the most optimistic to the most pessimistic for each pertinent year. Probability means the likelihood of happening of an event. It is the proportion of times an event occurs i.e. its frequency. It is the ratio of favourable number of events to the total number of events.

In a particular situation, if all possible outcomes of an event are listed and the probability of occurrence is assigned to each outcome, it is called a probability distribution. For any probability distribution there is an expected value. The expected value is the weighted average of the values associated with the various outcomes, using the probabilities of outcome as weights.

If NPV₁ NPV₂ and NPV₃ are three possible estimates of the net present value of a project under uncertainty, and’ the probability of each outcome of NPV is P₁ P₂ and P₃ then the expected net present value is

E_v (NPV) = P₁ (NPV₁) + P₂ (NPV₂) + P₃ (NPV₃).

This method is conceptually sound. But it lacks objectivity as it is not possible to find out the probabilities of different outcomes.

Project Risk Management

Managers can plan their strategy based on four steps of risk management which prevails in an organization. Following are the steps to manage risks effectively in an organization:

• Risk Identification
• Risk Quantification
• Risk Response
• Risk Monitoring and Control

Risk Identification

Managers face many difficulties when it comes to identifying and naming the risks that occur when undertaking projects. These risks could be resolved through structured or unstructured brainstorming or strategies. It’s important to understand that risks pertaining to the project can only be handled by the project manager and other stakeholders of the project.

Risks, such as operational or business risks will be handled by the relevant teams. The risks that often impact a project are supplier risk, resource risk and budget risk. Supplier risk would refer to risks that can occur in case the supplier is not meeting the timeline to supply the resources required.

Resource risk occurs when the human resource used in the project is not enough or not skilled enough. Budget risk would refer to risks that can occur if the costs are more than what was budgeted.

Risk Quantification

Risks can be evaluated based on quantity. Project managers need to analyze the likely chances of a risk occurring with the help of a matrix.

Using the matrix, the project manager can categorize the risk into four categories as Low, Medium, High and Critical. The probability of occurrence and the impact on the project are the two parameters used for placing the risk in the matrix categories. As an example, if a risk occurrence is low (probability = 2) and it has the highest impact (impact = 4), the risk can be categorized as ‘High’.

Risk Response

When it comes to risk management, it depends on the project manager to choose strategies that will reduce the risk to minimal. Project managers can choose between the four risk response strategies, which are outlined below.

• Risks can be avoided
• Pass on the risk
• Take corrective measures to reduce the impact of risks
• Acknowledge the risk

Risk Monitoring and Control

Risks can be monitored on a continuous basis to check if any change is made. New risks can be identified through the constant monitoring and assessing mechanisms.

Risk Management Process

Following are the considerations when it comes to risk management process:

• Each person involved in the process of planning needs to identify and understand the risks pertaining to the project.
• Once the team members have given their list of risks, the risks should be consolidated to a single list in order to remove the duplications.
• Assessing the probability and impact of the risks involved with the help of a matrix.
• Split the team into subgroups where each group will identify the triggers that lead to project risks.
• The teams need to come up with a contingency plan whereby to strategically eliminate the risks involved or identified.
• Plan the risk management process. Each person involved in the project is assigned a risk in which he/she looks out for any triggers and then finds a suitable solution for it.

Risk Register

Often project managers will compile a document, which outlines the risks involved and the strategies in place. This document is vital as it provides a huge deal of information.

Risk register will often consists of diagrams to aid the reader as to the types of risks that are dealt by the organization and the course of action taken. The risk register should be freely accessible for all the members of the project team.

Project Risk; an Opportunity or a Threat?

As mentioned above, risks contain two sides. It can be either viewed as a negative element or a positive element. Negative risks can be detrimental factors that can haphazard situations for a project.

Therefore, these should be curbed once identified. On the other hand, positive risks can bring about acknowledgements from both the customer and the management. All the risks need to be addressed by the project manager.

Project management is about delivering outputs to maximize benefits to an organization. Listed below are some more convincing reasons why use project management. It provides:

• Clear Focus and Objectives
• Quality Control
• Risk Management

Better Employee Engagement:

Strategic alignment in an organization is why project management dictates that there be collaboration and communication with employees. When employees understand how their work complements the company strategy, they become more productive and contented with their work.

Establish Plan and Schedule:

Having agreed on a project schedule, sticking to it inculcates discipline required to avoid delays. A pre-determined process through the project lifecycle gives the project a clear path.

Minimal Wastage of Resources:

Strategic alignment in an organization discerns between activities that spur growth and those that play more of a supporting role. A clear delineation ensures that the company uses limited resources for the right activities to facilitate growth and align functional and business priorities.

Reduced Customer Confusion:

A strategically aligned organization will have mechanisms to ensure that processes consistently deliver results. Besides, knowing what are the benefits of project management will equip teams to tackle technical glitches to ensure seamless delivery of results.

A Clear Project Plan and Process:

The more multifaceted the project, there is more scope for chaos in the organization. That is where proper planning and the importance of project management come in. The primary function of project management is to avoid confusion by outlining a clear plan and a process from the beginning to the end.

Improved Speed in Decision Making:

Uncertainty can weaken productivity and lead to missed deadlines. Having strategic alignment in an organization results in quicker decisions and reduced execution time. It is also why project management stresses clarity.

Teamwork:

People are made to work in a team on a project, due to the benefits that accrue through sharing and knowledge of skills. It inspires team members to collaborate on a project.

Maximize Resources:

It is well known that human and financial resources are likely to be expensive. Project risk management and project tracking with regular reporting ensure economic and efficient use of all the resources.

Keep Control of Costs:

Based on the project scope, some projects may incur high costs. So, it is essential to keep track of the budget. Incorporating project management strategies eases the budget overrun risks.

Build on Knowledge:

When businesses embark on more projects, they will acquire more experience over time. Project management serves as a knowledge asset to a company and helps to build on both experience and knowledge.

Manage Quality:

It is crucial to ensure top-quality results. Project management identifies, controls, and manages standards. This results in a high-quality product/ service and a satisfied client.

Continuous Oversight

Project management methods ensure that organizations gain control over ongoing projects and make sure they are on the right track and within the stipulated budget. Project deliverables should be managed well so that you do not lose track of the progress of the project.

A single failed project may not seem like a great thing to the company; nevertheless, when we talk about large organizations with multiple projects in the pipeline, the importance of project management increases manifold.

The absence of project management leads to chaos in the organization, which gradually induces higher rates of failure, uncertainty, and stress.

Karma is the concept of action or deed understood as that which causes the entire cycle of cause and effect. It is also seen as the total effect of a person’s actions and conduct during successive phases of one’s existence.

Karma is a distinctive feeling, aura or the idea that one reaps what one sows-destiny; fate. Its the effects of all actions which are viewed as actively shaping one’s past, present and future experiences.

Karma is the concept of an “Action” or “Deed” which fuels the entire cycle of cause and effect. As a leader, you and your corporation help communities. Acting and responding in an ethical and moral manner is building up a positive corporate Karma either knowingly or unknowingly because it is displaying a positive corporate culture; employees are empowered, and the surrounding community feels valued, rather than feeling as though they are being taken advantage of (e.g. resources, tax breaks etc.).

Methodology

The relationship between the soul and karma, states Padmanabh Jaini, can be explained with the analogy of gold. Like gold is always found mixed with impurities in its original state, Jainism holds that the soul is not pure at its origin but is always impure and defiled like natural gold. One can exert effort and purify gold, similarly, Jainism states that the defiled soul can be purified by proper refining methodology. Karma either defiles the soul further, or refines it to a cleaner state, and this affects future rebirths. Karma is thus an efficient cause (nimitta) in Jain philosophy, but not the material cause (upadana). The soul is believed to be the material cause.

The key points where the theory of karma in Jainism can be stated as follows:

Karma operates as a self-sustaining mechanism as natural universal law, without any need of an external entity to manage them. (absence of the exogenous ‘Divine entity’ in Jainism)

Jainism advocates that a soul attracts karmic matter even with the thoughts, and not just the actions. Thus, to even think evil of someone would endure a karma-bandha or an increment in bad karma. For this reason, Jainism emphasise on developing Ratnatraya (The Three Jewels): samyak darśana (‘Right Faith’), samyak jnāna (‘Right Knowledge’) and samyak charitra (‘Right Conduct’).

In Jain theology, a soul is released of worldly affairs as soon as it is able to emancipate from the karma-bandha. In Jainism, nirvana and moksha are used interchangeably. Nirvana represents annihilation of all karmas by an individual soul and moksha represents the perfect blissful state (free from all bondage). In the presence of a Tirthankara, a soul can attain Kevala Jnana (‘omniscience’) and subsequently nirvana, without any need of intervention by the Tirthankara.

The karmic theory in Jainism operates endogenously. Even the Tirthankaras themselves have to go through the stages of emancipation, for attaining that state.

Jainism treats all souls equally, inasmuch as it advocates that all souls have the same potential of attaining nirvana. Only those who make effort, really attain it, but nonetheless, each soul is capable on its own to do so by gradually reducing its karma.

Eight Karmas

There are eight types of Karma which attach a soul to Samsar (the cycle of birth and death):

Gyanavarniya (Knowledge-obstructing): Like a veil prevents a face and its features from being seen, this karma prevents the soul from knowing an object along with details about that object. This karma obstructs the soul from realizing its essential quality of knowledge. In its absence, a soul is omniscient. There are five sub-types of gyanavarniya karma which prevents the five types of knowledge: mati gyan (sensory knowledge), shrut gyan (articulate knowledge), avadhi gyan (clairvoyance), mana paryay gyan (telepathy) and keval gyan (omniscience).

Darshanavarniya (Perception-obstructing): Like a gatekeeper prevents the sight of the king, this karma prevents an object from being perceived, hiding it. This karma obstructs the soul from realizing its essential quality of perception. In its absence, a soul completely perceives all substances in the universe. There are nine sub-types of this karma. Four of these prevent the four types of perception; visual perception, non-visual perception, clairvoyant perception and omniscient perception. The other five sub-types of darshanavarniya karma bondage induce five kinds of sleep causing reduction in consciousness: light sleep, deep sleep, drowsiness, heavy drowsiness, and sleep-walking.

Vedaniya (Sensation-producing): Like licking honey from a sword gives a sweet taste but cuts the tongue, this karma makes a soul experience pleasure and pain. The soul’s bliss is continuously disturbed by experiences of external sensual pleasure and pain. In the absence of the vedaniya karma, the soul experiences undisturbed bliss. There are two sub-types of this karma; pleasure-producing and pain-producing.

Mohniya (Deluding): Like a bee becomes infatuated with the smell of a flower and is attracted to it, this karma attracts the soul to the objects that it considers favorable while repelling it from objects it considers unfavorable. It creates a delusion in the soul that external objects can affect it. This karma obstructs the soul’s essential quality of happiness and prevents the soul from finding pure happiness in itself.

Ayu (Lifespan-determining): Like a prisoner remains trapped by iron chains (around his legs, hands, etc.) this karma keeps a soul trapped in a particular life (or birth).

Naam (Body-producing): Like a painter creates various pictures and gives them various names, this karma gives souls various types of bodies (that are classified based on various attributes). It is the naamkarma which determines the body of living organism into which the soul must enter.

Gotra (Status-determining): like a potter makes short and tall pots, this karma bestows a low or high (societal) status on the body of soul. It creates social inequalities and, in its absence, all souls are equal. There are two sub-types of gotra karma: high status and low status.

Antaray (Power-obstructing): Like a treasurer obstructs a king from spending his wealth, this karma prevents the soul from using its innate power for acts of charity, profit, enjoyment, repeated enjoyment and will-power. It obstructs and prevents the soul’s essential quality of infinite power from manifesting. In its absence, a soul has infinite power.

Guidelines for good Corporate Karma

1. Be clear about your organisation’s values: Most companies have mission statements and values that dictate their corporate vision, but how many truly conduct their business with these at the forefront of their minds? Research shows that if people are exposed to a strong value code, it can have a profound, subconscious effect on their behaviour and decision-making. But it is important that an organisation’s values are created in collaboration with staff so that they become the natural way of doing business.
2. Make it personal: It is vital that you not only employ ‘good’ people, but also people who approach everything that they do with a ‘good’ mindset because they will have a net positive effect on the business and those around them. The best way to encourage employees to adopt this attitude is to help them look at the bigger picture by thinking about long-term goals and approaching tasks from an enterprise-wide perspective. One way to achieve this is to create objectives for staff that reflect the organisation’s values. Too often, objectives are set without considering the ways in which they will be met. As a result, it is important to make clear that it is better to act with integrity than lose sight of what is ‘good’ to meet short-term goals. Research has also shown that people respond better to values that are personal to them rather than those that are dictated by someone else. By working with them to create value-based objectives or a personal code of conduct, you can help to equip your employees with the ‘good’ hardwiring that will inform their daily decisions and career development.
3. Think about the long-term: To be ‘Good’, individuals have to understand how their actions contribute to the long-term success of the business. This means that it is important to communicate your company’s long-term goals and clarify ongoing performance against those goals. If staff have a clear understanding of the bigger picture, they are more likely to comprehend how they can help to meet these goals through their day-to-day activities. Discussing the ‘how’ is a useful way of bringing this concept to life.

A gurukula or gurukulam, गुरुकुल, is a type of education system in ancient India with shishya (‘students’ or ‘disciples’) living near or with the guru, in the same house. The guru-shishya tradition is a sacred one in Hinduism and possibly appears in other dharmas in India, such as Jainism and Buddhism. (In the Sikh tradition by contrast, the word Guru has a very restricted use and not generally applied to individual teachers, while the institution of Gurdwara has a major social role instead of a monastic one.) The word gurukula is a combination of the Sanskrit words guru (‘teacher’ or ‘master’) and kula (‘family’ or ‘home’). The term is also used today to refer to residential monasteries or schools operated by modern gurus. The proper plural of the term is gurukulam, though gurukulas and gurukuls are also used in English and some other Western languages.

The students learn from the guru and help the guru in his everyday life, including carrying out of mundane daily household chores. However, some scholars suggest that the activities are not mundane and very essential part of the education to inculcate self-discipline among students. Typically, a guru does not receive or accept any fees from the shishya studying with him as the relationship between a guru and the shishya is considered very sacred.

At the end of one’s education, a shishya offers the guru dakshina before leaving the gurukula. The gurudakshina is a traditional gesture of acknowledgment, respect and thanks to the guru, which may be monetary, but may also be a special task the teacher wants the student to accomplish.[3] While living in a gurukula, the students would be away from their home from a period of months to years at a stretch.

Features

• The emphasis was on holistic learning with an incremental focus on professional, social, religious and spiritual education.
• The education given was profusely influenced by the culture and religion which were incremental elements of the ancient Indian society.
• The basis of being selected by a gurukul was an impeccable attitude and moral strength that could be displayed through impeachable conduct.
• The gurukul education system resulted in all-around development of the individual and emphasized on a psychological method of teaching.
• Alongside knowledge of the art, literature, scriptures and philosophy, students were also taught practical skills and trained for different tasks.

Advantages:

• The students of gurukul are more disciplined and organized. They are taught to follow a well- planned schedule in school.
• The students are more focused and possess more concentration power than normal students. This is because they are trained through techniques such as meditation which enhances their focusing power.
• In a gurukul, students are taught to respect everyone irrespective of their caste, creed, ethnicity, culture, religion and perspective. So, such students grow up as people with strong character and values.
• The ‘guru-shishya parampara’ is an integral part of Gurukul. Here, the students highly respect their teachers and share a good bond with them. They are molded under the guidance of their mentors.
• In a gurukul, ‘Gurus’ also take complete responsibility for their ‘shishyas’. They share their experiences, inculcate good habits and mold the character of the students in a positive direction.
• The students are developed into strong individuals. They are taught to stay firm and face any adverse situation in the outside world.
• Gurukul students are taught to value nature. So, they are very close to nature. They worship nature and also learn a lot of things from it.
• Students are spiritually elevated which gives them an optimistic, calm and composed personality.
• Every student is given proper attention as the student-teacher ratio is properly planned, unlike other schools where students aren’t given individual attention.
• Gurukul emphasizes on practical knowledge which is quite beneficial to build the concepts of the students.
• Students are taught to follow the principle of ‘simple living and high thinking’ which is a great lesson for life.

Disadvantages

In the olden days:

• They were kept away from their parents and family.
• The children had to stay away from home for long periods of time, i.e. for more than 12 years. Hence when the children returned the felt lost in the real world.
• They led a sheltered life at the gurukul.
• They did not face the harsh realities of everyday life at the gurukul.
• They had to blindly follow the guru in all aspects whether he was right or wrong.

At present:

• The children of today would have respect neither for the guru nor for the gurukul.
• It’s an outdated system of learning that is way too behind for today’s jet age.
• The skills taught in the gurukul would not arm the children of today for the present life.
• People would scoff at the ideologies and teaching that are offered the gurukuls of yester years.

Karma कर्म means action, work, or deed. For the believers in spirituality the term also refers to the spiritual principle of cause and effect, often descriptively called the principle of karma, wherein intent and actions of an individual (cause) influence the future of that individual (effect): Good intent and good deeds contribute to good karma and happier rebirths, while bad intent and bad deeds contribute to bad karma and bad rebirths.

For the believers, the concept of karma is closely associated with the idea of rebirth in many schools of Indian religions (particularly Hinduism, Buddhism, Jainism and Sikhism), as well as Taoism. In these schools, karma in the present affects one’s future in the current life, as well as the nature and quality of future lives one’s saṃsāra. This concept has also been adopted in Western popular culture, in which the events which happen after a person’s actions may be considered natural consequences.

In the context of theory, karma is complex and difficult to define. Different schools of Indology derive different definitions for the concept from ancient Indian texts; their definition is some combination of:

(1) Causality that may be ethical or non-ethical.

(2) Ethicization, i.e., good or bad actions have consequences.

(3) Rebirth.

Other Indologists include in the definition that which explains the present circumstances of an individual with reference to his or her actions in past. These actions may be those in a person’s current life, or, in some schools of Indian traditions, possibly actions in their past lives; furthermore, the consequences may result in current life, or a person’s future lives. The law of karma operates independent of any deity or any process of divine judgment.

Importance of Karma to Managers

Karma is a chameleon. You cannot always see it, but it is an energy that transforms from good to bad and to neutral. This energy is derived typically from our actions – what we say and what we do. It is that simple.

But, in a fast-paced environment, such as a place of work, considering someone else’s thoughts and feelings before we ‘act’, can easily get overlooked for prioritising results and getting the job done. And why should this matter if we are constantly producing cracking results? It matters. When it comes to karma in the workplace, even the smallest of things matter. From our body language to our tone of voice (both written and verbal), to the way we say hello to our colleagues in the morning. The way we act can have a huge impact on work relationships and getting the job done.

With the right team in place, the benefits of creating and maintaining positive energy and good karma can manifest into higher productivity, job satisfaction and more healthy, cohesive teams. This in turn can save time and money by way of employee retention and enhancing business results.

For managers, along with the demands of daily workflow and routines, it is important to instil the concept of good karma into the workplace. This can be achieved as simply as setting some basic fundamentals:

• Show gratitude and respect of others
• Offer praise for efforts
• Be honest
• Listen effectively and communicate succinctly
• Be patient
• Be mindful of others’ workloads
• Be sensitive to others’ feelings
• Support colleagues and act collaboratively

Nishkama Karma

Nishkam Karma self-less or desireless action, is an action performed without any expectation of fruits or results, and the central tenet of Karma Yoga path to liberation. Its modern advocates press upon achieving success following the principles of Yoga, and stepping beyond personal goals and agendas while pursuing any action over greater good, which has become well known since it is the central message of the Bhagavad Gita.

In Indian philosophy, action or Karma has been divided into three categories, according to their intrinsic qualities or gunas. Here Nishkam Karma belongs to the first category, the Sattva (pure) or actions which add to calmness; the Sakam Karma (Self-centred action) comes in the second rājasika (aggression) and Vikarma (worst-action) comes under the third, tāmasika which correlates to darkness or inertia.

he opposite of Sakam Karma (self-centered actions) or actions done with desires, Nishkam Karma has been variously explained as ‘Duty for duty’s sake’ and as ‘Detached Involvement’, which is neither negative attitude nor indifference; and has today found many advocates in the modern business area where the emphasis has shifted to ethical business practices adhering to intrinsic human values and reducing stress at the workplace.

Another aspect that differentiates it from Sakam or selfish action, is that while the former is guided by inspiration, the latter is all about motivation, and that makes the central difference in its results, for example, Sakam Karma might lead to excessive work pressure and workaholism as it aims at success, and hence creates more chances of physical and psychological burnouts. Moreover, Nishkam Karma means a more balanced approach to work, and as work has been turned into a pursuit of personal excellence, which results in greater personal satisfaction, which one would have otherwise sought in job satisfaction coming from external rewards. One important fallout of the entire shift is that where one is essentially an ethical practice inside-out leading to the adage, ‘Work is worship’ show itself literally at the workplace, leading to greater work commitment, the other since it is so much result oriented can lead to unethical business and professional ethics, as seen so often at modern workplace.

Since the central tenet of practicing Nishkam Karma is Mindfulness in the present moment. Over time, this practice leads to not only equanimity of mind as it allows the practitioner to stay detached from results, and hence from ups and downs of business that are inevitable in any business arena, while maintaining constant work commitment since work as now been turned into a personal act of worship. Further in the long run it leads to cleansing of the heart but also spiritual growth and holistic development.

The true definition of karma can vary depending on who you ask. Some people adhere to the traditional meaning grounded in Eastern religions, while others interpret it from more of a Western view of good and bad. As a result, this can lead to different views on how karma applies to life.

The Great Law or the law of cause and effect

According to this law, whatever thoughts or energy you put out, you get back good or bad. In order to get what you want, you have to embody and be worthy of those things. It’s the concept of what you reap, you sow.

“For example, if you want love in your life, be loving to yourself,” she says.

Law of Creation

The law of creation underscores the importance that life doesn’t just happen to us. To make things happen in your life, you need to take action, instead of waiting for something to magically come your way.

Also consider how you can use your skills, talents, and strengths to create something that not only benefits you but others, too.

Law of Humility

the law of humility is based on the principle that you must be humble enough to accept that your current reality is the result of your past actions.

For example, if you’re blaming your colleagues for your poor performance at work, Harrison says you must accept that you created this reality by not performing as well as you could have.

Law of Growth

To positively shape the world, you need to start with yourself. That’s because real change or personal growth begins with what you have control over, which is yourself, not others.

The law of growth also looks at the things you can’t control and how you deal with accepting this fate. Ultimately, your focus should be on you, not trying to control the people or things around you.

Law of Responsibility

“It’s a reminder that you own what happens to you in life. It’s a great reminder that what happens to you is because of you. This eliminates the opportunity for you to look outward to find the cause of your problems,”

Law of Connection

This law is based on the principle that everything in your life, including your past, present, and future, are connected.

“Who you are today is the result of your previous actions,” And who you will be tomorrow will be the result of your actions today.

Modern Education is the latest and contemporary version of education that is taught in schools and learning institutions in the 21st century. Modern education doesn’t just only focus on prominent academic disciplines of Commerce, Science and Arts but it also aims to foster critical thinking, life skills, value education, analytical skills and decision-making skills in students. Modern Education also makes use of the latest technology such as mobile applications, audio and video platforms like YouTube, Podcasts, E-books, Movies, etc. to educate learners and make the learning process more engaging and interesting.

We have all been educated in a teacher-centric classroom, a system where the teacher is upfront and the students are seated in nice neat rows, listening to the lecture and taking notes. This system has been, and to some extent, still forms the core of our education system. Schools have relied on it for decades, and have only recently undergone major changes. Living in the 21st century, technology has become an integral part of our everyday lives. None of us can deny that it has brought about nothing short of an overhaul of our world, and more importantly of our educational system. From chalkboards to whiteboards and now to smart boards, technology has become our main source of research, knowledge, and teaching.

Features

Learner-Centered

One of the essential characteristics of the modern teaching methods in basic science and technology (BST) is it is learner-centred. It focuses on learners while using or applying during classroom and laboratory lectures. The teacher acts only as a guide, and all the learning process involves learners. Learners significantly appear as a dominator in classroom interactions.

Resource-Based

BEST teachers should be resourceful. They should collect and distribute all the required study material to the learners for their learning or to understand the topic clearly. The resources can be collected from the school environment or any other place where it is available. Also, a learner can be the source to bring study material or resources from their end.

Task-Based or Activity-based

The teacher or guide of BST organizes activity or task and engages students to learn through this way. Hence it is an activity-based or commission-based. Students are offered or asked to take part in classroom interaction through these interactive activities.

Integrative in Nature

One of the vital characteristics of modern teaching methods is it is integrative. Teachers link topics of one subject, e.g., social science topics like drug use, domestic violence, safety, pollution, food distribution, crime etc. to other issues and make it integrative. By this, a learner can gain knowledge of more topics studying one.

Advantages

Equality in education

Traditional education which was provided in schools was not meant for all the children. There was a lot of discrimination between the children. It was considered that education was meant for only high society people. The children who belonged to the families of lower society were not allowed to enter the schools. The traditional education was not meant for everyone. The modern education is accessible by all. Anyone can take admission in a school and learn the modern education. We can say that it is because of the modern education that modern education is accessible by all the children. As the modern education spread, the principle of equality was taught.

The Advent of Online Learning

Amongst the core features of Modern Education, Online Education has become a quintessential part of the learning process and pedagogy in the contemporary age. Offering an immense scope of learning anything, anytime and anywhere, the Internet has become a vast pool of knowledge welcoming people of all ages to furnish their skills and expand their expertise in different fields of study. Further, online learning is just a constituent of Smart Education which utilised technology to facilitate an interactive process of teaching and learning. The importance of technology in education is imperative today and you can learn anything and anywhere just with the help of a functioning network connection and a smartphone, tablet or computer.

The knowledge imparted

As mentioned above, in the traditional education the students are taught about traditions, customs, rituals, and religion. In the modern education, the students are taught about science, technology, language skills, and mathematics etc. the knowledge imparted in the traditional education system was enough for one’s own living, but it was not enough to match the whole world.

Peer Collaboration

Modern teaching methods not only encourage students by allowing them to present their ideas or initiative by noticing their responses, studying their research, and allowing them to answer during interaction in BST classes but also selects students based on interest, needs, and feelings.

Disadvantages

Students have not enough time for getting ready for classes. In current times, they receive an awful lot of tasks every day. They receive information and need to learn it instead of understanding. They swot for an exam, pass it and forget the material in several months. Instead of helping students to grasp the material, teachers just provide them with lectures and this is not their fault.

Any exam is an opportunity to check the knowledge of a student. At a glance, everything is okay because the knowledge evaluation is an inseparable part of the educational process. Unfortunately, the modern approach to exams just conduces to the competition between colleges. Some of them frequently feel nervous about the upcoming exams.

The majority of pupils or students are made to pay for tuitions. They can’t understand one or another theme and are sent to afterschool tuitions. They simply don’t understand the material and are made to overpay in order to understand a topic. This is not the eternal fitness of things.