Small scale industry

IMPACT OF LIBERALIZATION,  PRIVATIZATION & GLOBALIZATION ON SSI

Liberalization, Privatization and Globalization started in India in July ,1991 that had changed the face of the industry. It has attracted new areas of development, foreign direct investments and new business areas which were unheard before 80's. This made Indian Economy to grow to new heights. Past 3 years Indian economy is growing at an average steady rate of 5% of per-capita income. The exports have increased.

Liberalization has made import of scarce and non-available raw materials easy. This has lead to many new openings. New entrepreneurs have started many new SSIs which otherwise was not possible due to non availability of certain raw materials and resources, liberalization helped getting them from abroad and use them. The best example for effect of liberalization is electronic and computer industries that have seen enormous growth in the past two decades.

Privatization also helped in the growth of inustries in a big way. Earlier certain products/services were produced only by the government organizations and no competition existed. With privatization it threw open to many challenging entrepreneurs to produce similar goods and service at much competitive prize and of better quality.

Leadership & Management

Leadership and Management are often used interchangeably yet they describe two different components. Maccoby defines leadership as a relationship between the leader and the led and management as a function. The leader uses passion and emotion whereas a manager is more formal and rational method. Managers are quite often experiencedin their field and have worked up their way within the company; and a leader may be a new arrival to a company with fresh ideas.Often companies do not distinguish between the two positions and as a result may place a manager into a leadership role.
Some characteristics of the leader and manager are listed below:
Managers                                                                  Leaders

• Administer                                                     | Innovate
• Ask how and when                                        | Ask what and why
• Focus on systems                                          | Focus on people
• Do things right                                               | Do the right things
• Maintain                                                        | Develop
• Short-term perspective                                  | Longer-term perspective
• Imitate                                                          | Originate
• Are a copy                                                   | Are original

Leadership traits:

• Physical qualities of health,vitality and endurance.
• Personal attributes of personal magnetism, cooperativeness, enthusiasm, ability to inspire, persuasiveness, forcefulness and tact.
• Character attributes of integrity, humanism, self-discipline, stability and industry
• Intellectual qualities of mental capability, ability to teach others, and a scientific approach to problems.