Saturday, March 5, 2011

MBA - Crash course


Have you ever heard of a company with "No hire or fire" rule? 
Have you ever come across a company where "the employee has never retired or left the company?"
Have you seen a team of people working together, yet "Not a single error" ? A company which has "never faced a STRIKE" ? or there has never been a single "Police record!!!! 
These illiterate workers prove "YOU DONT NEED AN MBA TO RUN AN ORGANISATION"


MUMBAI DABBAWALLA : 
(Data collected from various researched articles and studies )



UNBELIEVABLE HISTORY :
Since 1890, still working without any faults
Average Literacy rate of the workers : 8th standard schooling. 

HR PRACTICES: 
  • Flat Organisation
  • No hire or fire rule
  • Community based recruitment 
  • Sharing common ethics, values and beliefs
  • Following strict dress code
  • Loyalty and trust in their monopoly
  • Training provided to new comers.
  • Owner + Employee is the designation of each
  • Quarterly meetings to discuss issues




Their Principles ......
 "Shakti aur Bhakti" (strength and passion for work)
"Work is Worship"
"Manav seva mein Bhagwaan seva milti hai" (service to mankind is service to God)
"Union is Strength"
"I trust in man only, coz I trust in God"


SUCCESS FACTORS :

  • Low cost delivery
  • Delivery reliability
  • Decentralization
  • Perceived equality
  • Subarban Railway network
METHOD:
The famous "6 Sigma" Method used by MBA's in MNC's worldwide.

Porter's 5 Force Model :
Competition - Nil to very Low - difficult to replicate.
                                                   - quality remain unchallenged
                                                   - No bargains . Cost effective
                                                   -Low infrastructures and practically no technology, only good   
                                                     planning.

MANAGEMENT PRINCIPLES:
  • Teamwork
  • Time Management
  • Innovation
  • Customer relationship management
  • 6 Sigma
  • Logistics and supply chain management
6 Sigma is a methodology to manage process variations that cause defects and to systematically work towards managing variation to eliminate defects.
objective : is to deliver high performance, reliability and value to the end customer.
Ideally 6 sigma performance is calculates numerical defects of 3.467 in 1 million opportunity. 

Mumbai Dabbawalla's beat this goal! 
Their error rate : 1 in 16 million transactions

No history of Strikes
No history of Police/Case records.