I think, I feel, I care

Iv talked about ownership on this very blog before but I believe the context was with respect to owning up your faults.

This post is a little different.

Human Resource is another subject of my interest. One such theory in the subject is the theory of ownership which goes along the lines that when an employee begins to feel that he owns the company,he would be motivated to act in the beneficial interest of the company. Agreed from the overview.Thus was born your ESOP(Employee Stock Option Plans)

On deeper thought Im forced to think from another perspective which raised one big question in my head-

1.In these times of recession where every person's job is feared to be at stake, is ownership still appreciated?

My reasoning is that it wouldn't be. With no practical experience in the corporate world, Im free to run my reasoning on my general knowledge and rationale. Assuming the theory is true, this would be a boon if it happens in the top management. My question is what if a middle or lower level employee takes to the ownership theory? Logic follows that the employee would perform better. If a junior performs better, the chances of the senior (especially under current scenarios) feeling that his seat is being threatened is higher. If this happens the possibility of the senior taking credit for the junior's initiatives and performance would be prevalent. This would, in turn, mean that the junior is not being recognised for his efforts. Its an accepted theory that recognition often means a lot in terms of motivating an employee.One may infer that thus, the employee loses his motivation to perform despite the feeling of ownership which had motivated him to perform in the first place. Or is it safer to say that when such a situation occurs, the theory of ownership dissipates and recognition as a factor of motivation comes into play? May this be interpreted to mean that recognition is a better motivator than the feeling of ownership?

Last month, as I spent time studying for my CIMA Managerial Level P08 paper on Financial Analysis, I came across a topic which caught and has successfully retained my interest- CREATIVE ACCOUNTING.With the numerous high profile scandals (such as Enron, WorldCom,Satyam) associated with it, it didn't take much.Rest assured, I'm interested in reading up on it, not practising itAfter all, it takes a criminal to catch another.

It revolves around the idea of entities playing with their accounting records in a way which is within the letter of the law but going against the spirit of law. In simpler terms, creative accounting refers to businesses using the loopholes in law to give a rosier picture of their financial standing.

To make the concept clearer, here is a list of a few methods adopted which accounts to creative accounting:
-Playing with the minds of the financial analysts by forecasting lower figures than expected so that when the results come, the company appears to have exceeded expectations

-Exclusion of liabilities/Off-balance sheet financing: this is where the liability is not shown in the books

-Altering the timing of the transaction:companies may delay/hurry the despatch of sales, plan the timing of sale/purchase of assets

-Use of alternative methods of accounting which certain standards allow, especially in cases of depreciation and provisions

-Playing with the leverage given to the management to make some classification decisions

-Recognition of revenue before/after it is rightfully earnt

The motivation behind the concept of creative accounting is listed as-
1. For personal gains of the managers(who get bonuses and other benefits in the light of good performance)
2.For indirect personal gains (where the entity's reputation of a good performer sticks onto the employee)
3.Tax Avoidance (need i say more?)
4.An attitude of following the pack- where managers feel everyone/major players in the industry are doing it and hence they must too.
5.Meeting convenants(conditions)set by banks and financial institutions
6.Increasing shareholder confidence.

While studying the above, I was able to accept all the reasons (which at least to me seemed to revolve around internal factors) except the last one, which I believe has a huge external factor,sparked off an internal debate in me.

If entities are white washing their accounts to show exemplary performance and hence raise shareholder confidence in the company, what about when everything comes to light? Like in Enron and Satyam? At the same time, in my opinion no shareholder would like it if they come to know that the company they have invested in isn't doing well and would most probably withdraw their funds. Every entity is dependant on its shareholder's funds. This directly threatens the future growth of said entity. If this is taken as reasoning than one would be compelled to agree that perhaps its the external pressure on the company which is leading it to adopt unethical methods like creative accounting. However, one can easily argue that in all righteousness the pressure must lead to performance. My argument is- especially in these times where even the top performing companies feel the pinch, how can any entity which knows that most of its shareholders may not be very acquainted with technical commerce,be confident that its funds will not be threatened? At the end of the day, the shareholders are primarily-i repeat-primarily concerned with the return they get in the form of dividends and if this is going to go down a mile, im guessing the smile soon going to become a frown.

So, are we, as society, as shareholders partly in blame for the unethical methods adopted by entities? Can the last reason stated be completely justified as a reason?c

Since my last post went on and on about how my life has been looking uphill, heres a list of those small things which make my life as happy as it is.

Note: I am not saying the same things aren't there in countries. They are all simple stuff which every country might have but I know for a fact that India has.

Top Ten Things I love about India

1. Everyone is connected at some level-knowingly or unknowingly.You stand in the middle of the crowd and theres always some feeling of connection, even with people you have never met in your life before.

2. Everyone is family. The stranger who steps into the lift a minute later would be your kid's "uncle/aunty/brother/sister"

3. The variety of food-not only in the number of dishes or places but the ingredients-the spices, the vegetables, the cereals etc

4.You have everything within a radius of 7kms. May it be a slum, skyscrapers, temples, churches, mosques,shopping malls/areas, "colonies" (group of apartments),educational institutions,food courts,local market-anything else you would possibly need for a living is all within 7kms. Its all there, sometimes if you go a little further, you will find something that suits your requirement perfectly.

5.You can walk barefoot, hum to yourself, grin at the world and still feel perfectly at home. Nothing is out of place here.

6. The prices are to suit everyone. You get the same stuff, with little variance in quality in all price ranges, take your pick and feel your pocket grow heavier.

7. The people. Unbelievable.You have got to experience them to know what Im talking about.

8. The diversity. The number of languages, people's behavior and attitudes, their varied beliefs,their status in terms of literacy,economic conditions, the different customs,traditions (many of which are dieing a silent misunderstood death) the extremes you find in every nook and corner of the country.

9. The topography. Name it and its there in India. For a travel lover, theres plenty you can explore and experience here.

10. Anything you name is bound to be here. Sometimes in disguise,sometimes blatantly.

Keep your senses and brains on alert- India is a country to experience.

Finally another post rolls out after dilly-dallying in my head for a while.

Its been 4 years since I've moved to India.
I've loved every minute.
Had you told me 4 years ago that I would be the person I am today, I would have in all probability dismissed you with a scoff and rude childish remark.

True. India as a country, has its own faults, but which country doesn't? Which country doesn't have foiled politicians, cracked systems, weird people?

I know of none. None which don't have any of the above.

My belief is that every country has its own fouls, some make more noise than others dragging attention to it. The attention directed to the issue is not always corresponding to the intensity of the issue.The truth remains that the issue exists everywhere.

Perhaps one might spill venom when affected directly by the injustice of the fault but I can't comment on that. As far as I've figured, injustice is like death. You know its wrong but you don't realise how much it hurts until you have faced it yourself.

For me, moving to India 4 years ago was upsetting. In all honesty I wasn't bubbling with glee at the thought of having to move back to my homeland after living abroad for more than a decade. I was upset and I clearly remember a few tears rolling down my cheek when the plane took flight. I was upset because I had thought moving to India would be the end of my pampered,luxurious life, the foregone opportunity of having a chance at becoming the school vice-president(something like deputy head girl), the dread of having to yet again join a new institution and make a mark, the thought of leaving back friends and a happily established routine.

The foul mood stayed on for a while but not long like any of my moods. I cant quite point out when was it that I cheered up about the idea but Im guessing a month at the max. There were a few instances in the first 6 months which made me wish with all my heart to rewind time but overall, I knew I was in love.

In love with the mess, the madness, the cheer, the hope, the help, the health, the walks, the prices, the diversity, the food, the climate,the people and everything else to do with the country. Its a way of life- something fresh and interesting.

I dropped almost everything which had defined me till my tenth grade.Each day, I found a new aspect to myself. Each day I found myself growing to be a better person, stronger- physically and mentally. Each day I found myself waking up with a smile, eager to get up and run, to catch an auto who would most probably ask for extra fare seeing im in a hurry to reach class,to deny the auto driver with some unnecessary comment, to catch another auto(this time smiling)to dodge a dung stained swishing cow tail or running to reach class(more so to avoid the big black dog who loves to hate me) just in time and occasionally a lil late,smile at the teacher, get into class, wile away the next 4-5 hours in class with best friend miraculously getting something into my head too and walk home whenever I can with said best friend spending hours chatting and roaming one specific area before coming home tired but happy.It was a new routine, a routine with a difference which I began to love and cherish much more than my old routine which on retrospect,feels pretty dreary.

2 years later another shift- another new institution for my undergrad. This time I enjoyed the early mornings, the sunrise, the pleasant breeze in the morning, the lil walk to class and back out to head towards a playschool I work at to see the little ones grin their recognition,hug their affection and yell their content. Its lovely. Theres hardly a boring day. Theres always something happening. Nope, Im not kidding nor am I referring only to the time I spend with the kids. Im talking about everyday of my life. Theres always something happening, something which brightens up my day or makes it look dreadful but its definitely there, every single day.

And I know its because I live here, in India, my motherland, my country, my home.

Its shown a whole new me who by any and all standards is better than the one I was and I know its just going to get better.

Its made me who I am today.

Nothing is ever going to make me regret my living here.
Not today, not ever.