Raison d'être

Why does a mango tree exist? Does it exist for the purpose of giving shade? There are thousands of other trees that provide shade. Is it for producing leaves? There are several thousand other trees that can also give leaves. Is it for photosynthesis and releasing oxygen to the air? This is also done by many other trees around us. What distinguishes a mango tree from several other trees around us? It is the sweet mango fruits that this wonderful tree gives us once in a year. Giving shade, producing leaves which may be used for decoration on religious, social and cultural festivities are not the basic purpose of existence of a mango tree. The ultimate fruits it bears and gives to others defines the basic purpose for which the mango tree exists. Without these fruits, its existence is meaningless. A gardener may not even retain a mango tree which has grown fully and giving a lot of leaves and shade, but not fruits. He would rather cut it out and plant another mango tree that may give fruits in due course.

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Raison d'etre is the French word that is normally used to define the fundamental purpose of existence of someone or something. (Its Sanskrit equivalent is उद्देश्य, which is so in many Indian languages). It is defined in the dictionary as "the most important reason or purpose for someone or something's existence." Any other use or uses of the person or thing without fulfilling this basic reason or purpose is meaningless. By-product or a secondary or incidental product is something that is often derived as unforeseen or unintended. The action or process of manufacture is not for getting the by-products, but the desire to get what was originally intended to.

While evaluating a person or organisation, this is to be carefully considered. Someone wants to hire a driver. What should be the basic consideration for deciding on hiring? It is naturally the capacity to discharge the duties of a driver. If he is also a good actor, it is fine. But if he is an average driver and a very good actor, does he fit the bill? If the choice is between a very good driver but an average actor and an average driver but very good actor, the former is naturally be selected. But it is often observed that both at individual level as well at levels of many organisations, extraneous considerations are often kept in view while deciding hiring and putting people on various jobs.

Dr Laurence J Peter studied many hierarchies and came out with his famous principle known widely in management circles as "Peter's Principle". Dr Peter not only deals with raison d'etre while hiring but also while reviewing performance periodically. He stipulates that hiring and placing people in organisations should be done by always keeping core competency in focus. If an employee is able to discharge his duties effectively at a given level, he deserves to be promoted because he is competent. If he is not competent at a given level, he is naturally unfit for next promotion. It is the responsibility of the superior (reporting manager in today's language) to decide whether an employee is competent or not, in discharging his duties. No need to emphasise that the competency is to be determined on the basis of core competency. If the employee is competent, he deserves to be promoted. If he is found incompetent, he does not deserve promotion. It is as simple as that.

What happens if the reporting manager is unable to decide whether the subordinate is competent or not? Dr Peter suggests that such a reporting manager has reached his level of incompetence and time has come for his reporting manager to change him!

One of the greatest tragedies of modren management systems is people are promoted as long as they are competent, but promotion stops as soon as they reach their level of incompetency. Thus they continue as employees at their incompetent level since organisations do not send them one level down, the level at which were actually competent. Organisations are thus deprived of their competency but continue to hold them at incompetent levels! Thus incompetency rules.

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The recent tremors in the Banking Industry has shaken the managements, employees, depositors, regulators and political masters as well. Knee jerk reactions and decisions have become order of the day. Some of the decisions are absurd to say the least. Cutting off the nose to get rid of cold appears to be the remedy. Many curbs are being placed on lending in various forms. The effect of these decisions will be known a year or two down the line. The basic purpose of existence of banks is to raise resources (deposits) and deploy them, mostly as loans & advances, and part as investments. Wholesale curbs on some forms of lending hits at the raison d'etre of these institutions. There is no doubt that the times are indeed difficult; but that has to be negotiated with calmness and firmness. Seeing a fraud everywhere and creating more panic does not help remedy the situation. The problems of the industry lie elsewhere. They are indeed to be addressed firmly. Running behind non-core areas as a reason for the present mess is suddenly coming to sharp focus. Shade and leaves is fine. What about the fruits which is the basic purpose?

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Dr Laurence J Peter was also known for his wit and humour. One of his famous quotes is: "The noblest of all dogs is the hot-dog; it feds the hand that bites it!"

This is incidentally my 300th blog post. I am thankful to all readers and friends who have encouraged me over the last seven years, on roundtheclockstories.