designing a creative and innovative india

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This article was downloaded by: [McGill University Library] On: 15 October 2014, At: 02:01 Publisher: Routledge Informa Ltd Registered in England and Wales Registered Number: 1072954 Registered office: Mortimer House, 37-41 Mortimer Street, London W1T 3JH, UK The International Journal of Human Resource Management Publication details, including instructions for authors and subscription information: http://www.tandfonline.com/loi/rijh20 Designing a creative and innovative India Pradip Khandwalla a a Indian Institute of Management, Ahmedabad, India Published online: 08 Jan 2014. To cite this article: Pradip Khandwalla (2014) Designing a creative and innovative India, The International Journal of Human Resource Management, 25:10, 1417-1433, DOI: 10.1080/09585192.2013.870313 To link to this article: http://dx.doi.org/10.1080/09585192.2013.870313 PLEASE SCROLL DOWN FOR ARTICLE Taylor & Francis makes every effort to ensure the accuracy of all the information (the “Content”) contained in the publications on our platform. However, Taylor & Francis, our agents, and our licensors make no representations or warranties whatsoever as to the accuracy, completeness, or suitability for any purpose of the Content. Any opinions and views expressed in this publication are the opinions and views of the authors, and are not the views of or endorsed by Taylor & Francis. The accuracy of the Content should not be relied upon and should be independently verified with primary sources of information. Taylor and Francis shall not be liable for any losses, actions, claims, proceedings, demands, costs, expenses, damages, and other liabilities whatsoever or howsoever caused arising directly or indirectly in connection with, in relation to or arising out of the use of the Content. This article may be used for research, teaching, and private study purposes. Any substantial or systematic reproduction, redistribution, reselling, loan, sub-licensing, systematic supply, or distribution in any form to anyone is expressly forbidden. Terms & Conditions of access and use can be found at http://www.tandfonline.com/page/terms- and-conditions

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Page 1: Designing a creative and innovative India

This article was downloaded by: [McGill University Library]On: 15 October 2014, At: 02:01Publisher: RoutledgeInforma Ltd Registered in England and Wales Registered Number: 1072954 Registeredoffice: Mortimer House, 37-41 Mortimer Street, London W1T 3JH, UK

The International Journal of HumanResource ManagementPublication details, including instructions for authors andsubscription information:http://www.tandfonline.com/loi/rijh20

Designing a creative and innovativeIndiaPradip Khandwallaa

a Indian Institute of Management, Ahmedabad, IndiaPublished online: 08 Jan 2014.

To cite this article: Pradip Khandwalla (2014) Designing a creative and innovative India,The International Journal of Human Resource Management, 25:10, 1417-1433, DOI:10.1080/09585192.2013.870313

To link to this article: http://dx.doi.org/10.1080/09585192.2013.870313

PLEASE SCROLL DOWN FOR ARTICLE

Taylor & Francis makes every effort to ensure the accuracy of all the information (the“Content”) contained in the publications on our platform. However, Taylor & Francis,our agents, and our licensors make no representations or warranties whatsoever as tothe accuracy, completeness, or suitability for any purpose of the Content. Any opinionsand views expressed in this publication are the opinions and views of the authors,and are not the views of or endorsed by Taylor & Francis. The accuracy of the Contentshould not be relied upon and should be independently verified with primary sourcesof information. Taylor and Francis shall not be liable for any losses, actions, claims,proceedings, demands, costs, expenses, damages, and other liabilities whatsoeveror howsoever caused arising directly or indirectly in connection with, in relation to orarising out of the use of the Content.

This article may be used for research, teaching, and private study purposes. Anysubstantial or systematic reproduction, redistribution, reselling, loan, sub-licensing,systematic supply, or distribution in any form to anyone is expressly forbidden. Terms &Conditions of access and use can be found at http://www.tandfonline.com/page/terms-and-conditions

Page 2: Designing a creative and innovative India

Designing a creative and innovative India

Pradip Khandwalla*

Indian Institute of Management, Ahmedabad, India

Creativity is an enormously important resource for speeding up economic growth andhuman development, especially in Third World settings in which social transformationfrom traditionalism to modernity is urgent. This paper takes the view that HumanResource Management models need to be extended to embrace whole societies, notconfined just to business organizations. It seeks to identify the factors that advancecreativity and innovation in Third World societies, especially India. Based on the viewsof a number of scholars representing diverse disciplines, it develops a model of the factorsthat propel a society towards more creativity and innovation. It makes a preliminary facevalidity test of the model on a few societies known to be relatively highly innovative. Onapplying the model to India, it locates three key areas for accelerating creativity andinnovation in India: government, educational institutions and civil society. The paperpresents a number of suggestions on how creativity and innovation in Third Worldcontexts can be spurred through innovation-enhancing design and functioning ofgovernment administration, educational bodies and civil society institutions.

Keywords: creativity; design; development; HRM; India; society

Scholars and practitioners of human resource management (HRM) have largely focused

on enterprise-focused HRM and HRD (human resource development) systems and

interventions. But given the urgency of transforming ThirdWorld societies struggling with

widespread poverty, deprivation and conservatism, the time has come to address the

question of how to harness HRM and HRD for societal regeneration. The revitalization of

Third World societies through widespread creativity and innovation as an important plank

of national HRM and HRD strategies has not received due attention. This paper attempts to

focus attention on this aspect in the context of India, a leading Third World society with

15% of the human population and about a fourth of the population of the Third World. As a

concept (Levy 1952), society can be smaller than a nation state (e.g. urban society) and

also larger (e.g. South Asian society or Islamic society). However, in this paper, unless

contraindicated by the context, I have used the term to mean the nation state.

There is a large research literature on individual-level creativity, a modest literature on

organizational creativity and relatively very little conceptual or empirical work on societal

creativity. Nonetheless, the more I waded into this relatively small literature on societal

creativity, the more excited I felt about identifying practical ways of bringing about a

seismic change in Third World contexts, especially in India. This was because of research

evidence that nearly 80% of the explained growth in the per capita incomes of western

countries, notably the USA, may have been generated by technological and managerial

innovations (Denison 1974). Thus, by developing a model of the forces that can give

rise to a creative society, one can conceive ways to spur creativity and innovation in

India and other Third World societies for speeding up their economic growth and social

transformation.

q 2014 Taylor & Francis

*Email: [email protected]

The International Journal of Human Resource Management, 2014

Vol. 25, No. 10, 1417–1433, http://dx.doi.org/10.1080/09585192.2013.870313

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Creativity has a positive halo around it; but it can be negative and even destructive.

Negative creativity is one of ingenious frauds, terrorism, torture, mass destruction and

violent crime. This paper is about fostering positive societal creativity, creativity that helps

to improve the quality of life and the well-being of people.

Most definitions of creativity agree that something is creative when it is relatively

novel as well as appropriate to the context (Mumford 2003). That is to say, it must be both

imaginative and practical. Creativity comes in different forms (Taylor 1975), and it is by

promoting these different forms that a society can aspire to be creative and innovative. For

this purpose, a useful classification is of six generic forms of creativity (Khandwalla

2004). The first is essence creativity or the creativity of ideas, viewpoints and concepts.

The second is elaborative creativity, or the creativity involved in putting together a

relatively novel or unique product, process, programme or event, one that is most

conspicuously present in innovations. The third is expressive creativity, or the creativity

displayed in expression, communication, packaging or design. The fourth is

entrepreneurial creativity, or the creativity involved in creating and running an innovative

venture, profit-oriented or otherwise. The fifth is existential creativity, or the creativity

involved in transforming oneself into a relatively unique and innovative individual

through a process of self-actualization and self-empowerment. The sixth is empowerment

creativity, or the creativity involved in empowering others in creative ways. Most artistic,

scientific, literary, reform-oriented and organizational creativity tend to arise from fusions

of these generic forms of creativity. A creative society is likely to emerge when all six of

these generic creativities are in full flow. That is to say, a society is creative when it buzzes

with challenges to the status quo; new ideas, viewpoints and approaches; scientific

breakthroughs; new products, technologies, processes and inventions; literary and artistic

creations and innovative designs and communications; innovative ventures; new

professions or innovations in established professions; new organizational forms or unique

organizational designs; plenty of creative self-actualizers and self-empowerers; and plenty

of creative mentors or change agents who help others in innovative ways to empower them

and actualize their respective potentials. Israel offers an example of what a creative society

can be like (see Wikipedia entry on Israel; Ferguson 2011).

Israel has just 8 million citizens, with a population and area about the size of a large

Indian district. Israel was established in 1948. It was then a poor and struggling society

surrounded by hostile forces. But it developed spectacularly thereafter. Between 1980 and

2000, the number of patents registered in Israel was nearly 8000 compared to less than 400

for all the Arab countries combined. In 2008 alone, Israeli inventors applied to register

some 10,000 new patents versus less than 6000 for all Muslim-majority countries

combined. Israel has more scientists and engineers as a percentage of its population than

any other country and produces more scientific papers per capita than any other country.

Its civilian R&D as a share of GDP is among the highest in the world. Internationally,

Israel is a leader in the use of solar energy, water conservation, geothermal energy,

software, communications, space technology, life sciences, etc. Six Israelis have bagged

the Nobel Prize since 2002. Besides, Israel boasts several internationally known

musicians, writers and film-makers. For its size, it also has the largest number of business

start-ups in the world.

My excursions into history, anthropology, economics, social psychology, management

and so forth led me to identify nine factors that seem to promote societal creativity. These

nine factors and their sub-factors are presented in the form of Figure 1. The model shown

in Figure 1 is an exploratory model, one based on cumulating the insights of diverse

scholars rather than one based on empirical findings or rigorous deduction from

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Page 4: Designing a creative and innovative India

hypotheses and assumptions. Briefly, the first factor requires the availability in the society

of certain kinds of resources, mainly a lingua franca and quality institutions of learning and

research (Arieti 1979). The second factor requires certain social norms, particularly a

Factors that Raise the Creativity of Societies

Availability of Certain + Shared Norms + Diversity and Dialogue

Resources -work ethic -diverse role models

-lingua franca and rich -scientific attitude -encouragement to

vocabulary -cooperation diversity and change

-testing facilities -win-win solutions -confrontation of

-high quality institutions -innovationist sharp differences

of higher learning mindset through dialogue

and research -freedom of choice

-investment in future

+ +

Challenge Facing by Competition

Rulers Rise of Creative - in the market place

- proactive mindset Society - in governance

- importance of individual +

initiatives lower down Rising Living

- effort to convert masses Standards and Competence Levels

to new ways -widespread empowerment

through health, education etc.

that promotes upward mobility

-modernization of

mindset

-self-actualization

by a growing number

+ +

Modification or Discarding + Enlightened, Dynamic + High Interactivity

of Obstructive Social Blocks Management of between People

like Untouchability and Major Institutions and Institutions

Gender Inequality of Society -within society

-government -between societies

-civil society

institutions

Figure 1. Factors that raise the creativity of societies.

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scientific approach, an innovationist mindset and a strong work and cooperation ethic

(Barnett 1953; Collier 1968; Stevens, Miller and Michalski 2000). The third factor

requires social diversity coupled with open dialogue about differences (Barnett 1953;

Stevens et al. 2000). The fourth factor requires proactive challenge-facing by the rulers

(Toynbee 1946). The fifth factor requires competition in the marketplace as in a

competitive market economy, and in the political arena, as in a robust democracy (Johnson

2010; Ferguson 2011). The sixth factor requires rising quality of life and capabilities of the

relatively poor and disadvantaged sections of society through investments in health,

education, welfare, infrastructure, municipal services, etc. for promoting upward mobility,

self-empowerment and widespread self-actualization (Rostow 1960; Maslow 1962). The

seventh factor involves the removal of social blocks, such as discrimination against

women and low-caste or class people that can have far-reaching, mostly positive social

consequences, something that Toynbee (1946) called change in the dominant correlate.

The eighth factor requires enlightened and dynamic management of such major

institutions of society as the government, educational and health institutions and the media

(Khandwalla 2003, 2010). The ninth factor requires high interactivity between people and

institutions, not only within the country but also with people and institutions abroad (Arieti

1979; Montuori and Purser 1999).

As a preliminary test of the face validity of this model, I tried to ascertain from

Wikipedia country entries and other sources whether these nine factors were present or not

in four societies that I believed were creative societies on the basis of their record of

creativity and innovation, namely contemporary USA (see Wikipedia entry on USA;

Johnson 1997; Galambos 2011), contemporary Israel (see Wikipedia entry on Israel;

Ferguson 2011), post-World War II Japan (seeWikipedia entry on Japan; McMillan 1984;

Shrivastava 1996) and nineteenth-century Britain (Feldman and Post 1979; Canning 1983;

Ferguson 2011).

Based on the information in the cited sources, I found the fit with the model reasonably

strong with all of these societies. For instance, all four have had a well-developed lingua

franca and high-quality institutions of learning and research. All four have had a strong

scientific approach, innovationist mindset and work and cooperation ethic. The USA and

nineteenth-century Britain both have had a good deal of social diversity because of

immigration, and other reasons such as the rise of new professions consequential on

industrial development. Israel has a dominant Jewish majority but drawn from many

European, West Asian and North African countries. Besides, it also has a sizeable Arab

minority. Japan is relatively the most homogeneous of the four, but modernization has

brought with it diversity of professions. Since all of these societies have favoured freedom

of expression, and have well-developed forums for exchange of views such as the media,

there is considerable confronting of differences in views. The ruling elite has faced up to

the challenges faced by all four societies. In the case of the USA, the Great Depression of

the 1930s was a great challenge; so were World War II, the power rivalry with the Soviet

Union and rampant racism, and all of these were met by the ruling elite. In the case of

nineteenth-century Britain, the great challenges were of building and retaining a great

empire and economic and political rivalry with Britain’s European rivals. British ruling

elite was able to meet these challenges. In the case of Israel, the great challenge was of

retaining its independence and identity in the midst of hostile neighbours, building a

modern, democratic society and rapid economic development. All of these challenges

were met by the elite. In the case of post-World War II Japan, the great challenge was of

rising from the ashes of an ignominious defeat and building a prosperous and democratic

Japan. These challenges were met by Japan’s ruling elite. All four societies have embraced

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democracy and market competition-based capitalism, which ensured a strong rivalry in the

political and market arenas. All four societies have had a robust economic growth that has

trickled down to the masses and created a dominant middle class with upward mobility

aspirations. Japan, Israel and the USA have developed a strong safety net called the

welfare state that invests heavily in education, health, welfare, infrastructure, public

services, etc. Nineteenth-century Britain was a laggard in this aspect. All four societies

have sought to remove social blocks such as racial, class, community and gender

discrimination, partly through government initiatives and partly through civil society

action. The USA, Israel and Japan have brought in a good deal of professional

management in public administration (Caiden 1991). Nineteenth-century Britain was slow

to bring in professionalism in public administration, but it did develop bureaucracy cadres

that served the empire reasonably well. All four societies have boasted some of the best

educational institutions in the world. Since all four societies have shunned autarchy and

instead embraced relatively free trade and flows of capital, and given freedom to their

people to travel within the country and abroad and engage in joint ventures with

enterprises and institutions not only within the country but also abroad, there has been high

interactivity between people and institutions in all four societies.

I then wanted to know whether these factors were largely absent in a society that I

believed had not been creative for the past 50 years or so, and I turned to Burma or

Myanmar. The factors were either absent or weak in Burma (see Wikipedia entry on

Burma; Charney 1999). I therefore felt that we have now got a provisional handle on what

may contribute to the evolution of a creative society. The nine factors and sub-factors

could be used as a way of diagnosing the weak spots impeding the evolution into a creative

society. Indeed, I used this model to assess the prospects for India.

My assessment of contemporary India in terms of the nine factors and their sub-factors

indicated that India is presently fairly good in most of the factors and sub-factors. But there

are serious flaws in some crucial factors. If India can overcome these flaws, then India may

emerge rapidly into a major creative society. In this paper, I focus on just three of these

flaws and on possible ways of overcoming them. The first is poor quality of governance.

The second is poor quality of education. The third is a civil society that does not

sufficiently promote positive creativity.

Governance for widespread creativity and innovation

Good governance is vital for the emergence of widespread positive creativity, and bad

governance (high levels of corruption, nepotism, incompetence) can be a major source of

negative creativity. The Indian state is huge. In all, there are nearly 18 million employees

in all its branches and levels (Khandwalla 2010). It also conducts highly diverse activities.

The Central Government alone has over 50 ministries each with one or more departments,

and each department has, in turn, a large number of sub-departments and sections. Each

such sub-department or section carries on one or more distinct activities. One estimate is

that India’s Central Government carries on some 3000 distinct activities, each with its own

organization, each activity being aimed at either providing some service to the people and/

or to organizations, or at regulating some activity or the other (Khandwalla 2010). If these

services are provided competently and innovatively, the quality of life of the people would

improve. Besides, people’s ability to succeed in innovative ventures would also go up

dramatically due to the support from governmental service delivery systems. These

include health, education, security, municipal services, welfare services, transport, helping

the disadvantaged, and investment in effective communications, power and infrastructure.

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Effectively delivered government services would raise the quality of life and living

standards of the people, open up many opportunities in relatively non-traditional

occupations and may trigger the need for self-actualization (Maslow 1962) and self-

empowerment, which in turn may promote different forms of creativity.

Indeed, there are some great plusses in Indian governance. After Independence,

literacy has gone up from 20% to about 70%, longevity has gone up from 30 years to

nearly 70, India’s per capita income in real terms has increased five times, hard-core

poverty has greatly diminished, there has been no major famine and India has emerged as a

major industrial power (Malayala Manorama 2012). These achievements are in large part

because of the proactivity of the Indian state.

Unfortunately, there have been serious flaws as well (Khandwalla 2010). India is not,

of course unique in poor quality of public administration – this seems to be endemic in the

Third World (Caiden 1991). In India the permit-license regime, initiated in the 1960s, bred

much corruption and stifled the Indian growth rate. The quality of many public services

has been pretty poor (World Bank 2006). Indian growth has been less inclusive than it

should have been, and about a third of the population is below the so-called Poverty Line

of minimal existence.

There are fundamental design flaws in Indian public administration that give rise to

poor governance (Khandwalla 2010). Unless these are redressed, the situation may not

improve appreciably, and may well deteriorate. Indian governance has fostered some

positive creativity, but it has also fostered a lot of negative creativity in the form of

ingenious scams and corruption, and violence bred by widespread frustration with

mal-governance.

A fundamental design flaw of the Indian state is that its vast range of activities is

mostly managed not by people with domain expertise but by politicians and bureaucrats

without domain expertise. This raises a serious question of competence. Added to this is

political instability on account of coalitional politics. The situation goes from bad to worse

if politician and bureaucrat heads of most organs of the state get frequently changed, as

they do in the Indian system, for then there is very little management continuity. All these

defects add up to a system of governance malfunctioning rather than effective

management. Policies may, on the whole, be sensible, but their implementation tends to

be quite poor.

India is not unique in mal-governance. Many developing countries around the world

are doing comparably badly (Kaufmann and Kraay 2002). But many governments have

taken up the challenge of getting rid of, or ameliorating, bad governance through a variety

of innovations, and much can be learnt from their experiences as to how to tackle the

cancer of governance mismanagement. They, especially such Commonwealth countries

as Britain, Canada, Australia, Malaysia and Singapore, have demonstrated that good,

innovative governance is possible, both in the First and the Third World contexts

(Commonwealth Secretariat 2002), and if this quality of governance is attained, the

emergence of a creative society could be imminent. A new paradigm of public

administration has emerged, initially in the West, but now, with suitable local

modifications, in many Third World countries as well, that delivers much better

governance, and therefore facilitates positive creativity. This paradigm is called New

Public Management (or NPM; Hood 1991).

The core principles of NPM that have emerged over the past few decades through

trial and error processes in a number of First and Third World societies are the

following (Caiden and Sunderam 2004; Sarker 2006; Siddiquee 2006; Khandwalla

2010):

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1. Performance accountability for efficiency, results and social impact through a

computerized Performance Management System (PMS) that delivers periodic

snapshots of departmental performance on a number of quantitative and

qualitative indicators.

2. Professional management of implementing government bodies and the use of

various NPM tools and techniques.

3. Breaking up of unwieldy departments into highly focused, professionally

managed bodies called executive agencies.

4. Participation of stakeholders in apex-level decision-making in government

bodies through departmental boards representing key stakeholders and including

domain experts.

5. Citizen-friendly provision of public services by professionals with tenure and

incentives, with a grievance redress procedure, buttressed by extensive

computerization in the delivery of public services.

6. Bolstering of people’s voice mechanisms through, for example, surveys of

citizens concerning their satisfaction with government services.

7. Preference for change and innovation over status quo in government

organizations by, for example, instituting awards for innovation and by

engaging in widespread brainstorming by departmental groups for innovations

that improve services or cut costs.

8. Public–private–civil society partnerships to increase resources and management

capacity, and extensive but transparent outsourcing to cut costs and bring in

professional provision of services.

9. Expert, consensus-based policy making and emphasis on periodic review of

policies by experts.

10. Emphasis on self-regulation and expert regulation and avoidance of excessively

bureaucratic regulation; emphasis on periodic professional and participative

review of regulations; the use of Regulatory Impact Assessment to improve

regulations and get rid off useless or harmful regulations.

Many of these principles are now being utilized not just in the West, but also in Asian

countries like Malaysia, Singapore, Thailand, South Korea and Japan, and in several South

American countries, Ghana, etc. (Khandwalla 2010). In India, there is at least one example

of their systematic, though incomplete, application. That example is that of the state of

Andhra Pradesh (AP), comparable in size and population to Germany.

AP is one of the larger states of India, with a population of over 80 million. AP began

reinventing governance in the late 1990s (Mohanty 2003; Naidu 2003). One of the

strategic initiatives of the proactive chief minister of the state for improving governance

was the setting up of a think tank called Centre for Good Governance. The latter was

formed in 2001 to provide analytical, research and training backup to the governance

innovations effort. It drew heavily on NPM principles. Here are some of the major changes

and innovations (Mohanty 2003; Naidu 2003):

A change management programme, involving departmental workshops, was instituted

titled ‘Governing for Results’. In these workshops, a SWOT (strengths, weaknesses,

opportunities and threats) exercise was conducted for each department and action plans were

developed. In each department, change agents were identified and trained to take the reform

agenda forward. Experts monitored the implementation of each change agenda. Innovation

units were set up to promote innovations in such key departments as education, health,

welfare, agriculture, irrigation, industry, local self-government departments and police.

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Many initiatives were implemented in e-governance. E-Seva offered 42 services to

citizens under one roof, such as the payment of utility bills, issue of certificates and

licenses, rail reservations, etc. An online system was set up to connect 16 government

departments with rural citizens, to provide such services as information on land records

and transactions. E-cops connected up police stations. The Police Department also

instituted a performance-tracking system involving nearly a dozen indicators of

performance of senior police functionaries. The government set up e-procurement and a

system for issuing driving licenses to reduce corruption and delays. Between 1993 and

2002, nearly 1,00,000 teachers were recruited through the use of information and

communication technology, and not a single complaint or grievance was recorded.

Nearly a third of the civic services provided by the municipalities were outsourced

through the mechanism of public–private partnership. These included garbage disposal,

de-silting of drains, street lighting, maintenance of parks, finalization of accounts and

collection of advertisement tax.

Voluntary tax compliance was encouraged. A scheme for self-assessment of property

taxes payable to the municipality was introduced in the capital city Hyderabad as a form of

self-regulation. Despite a steep reduction in the tax rate, the collections tripled between

1997–1998 and 2002–2003.

A governance-related PMS provided valuable information online on physical,

financial and social impact indicators to government decision-makers on the progress of

the government’s developmental programmes and projects.

The loss-making State Electricity Board was broken up into power-generating and

power-transmitting corporations. The transmission and distribution losses came down

from nearly 40% in 1999 to about 25% in 2002–2003, and power theft was brought down

by metering electricity sales more extensively. Between 1999 and 2002, 10 public-sector

companies were privatized, 11 were downsized through voluntary retirement schemes,

22 loss-making companies were shut down and in 4 the government divested its stake.

Overall, the attempt in AP was to turn the operating culture of the government from a

bureaucratic one with much political interference to one of getting results, innovation and

self-regulation, and being much more accountable to the people.

A number of Indian states and the Central Government as well have adopted some of

the tenets of AP, but few as systematically as AP. There is one sector of Government of

India in which most of the tenets of NPM have been adopted, and with relatively good

results. This is the Central Government-owned corporate public sector (Bureau of Public

Enterprises 2000). The 250-odd Central public enterprises are headed by professional

chief executives who are competitively selected for a specific term. There are several other

full-time directors on the Board, with functional expertise in such areas as operations,

finance, marketing and HRM, who are also similarly selected by the Public Enterprises

Selection Board. The boards have at least a few eminent independent directors, who are

also professionals. This ensures considerable professionalism in taking policy and

operating decisions. There is a Memorandum of Understanding system that sets down the

targeted performance of each enterprise along some 20 indicators, and a PMS for

monitoring performance periodically. There is considerable operating autonomy.

Contrast this system with the system prevailing in the enterprises owned by the various

Indian states. The heads, for the most part, are Indian Administrative Service officers with

no domain expertise and no fixed tenure. There is considerable political interference and

very little operating autonomy. There is generally no sophisticated PMS for monitoring

performance. The boards are stuffed with cronies of politicians. A Planning Commission

study revealed that during 1991–1998, the aggregate losses of these 750-odd public

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Page 10: Designing a creative and innovative India

enterprises increased by a compounded 17% per annum (Planning Commission 2002).

During the same time, the data published by the Bureau of Public Enterprises, Government

of India, showed that the aggregate profits of the Central public enterprises rose by 14%

per annum compounded (Bureau of Public Enterprises 2000).

The examples of AP and of the public enterprises owned by the Government of

India indicate that the principles of NPM, with suitable local modifications, can be

widely employed in Indian governance, with consequential benefits to the people. This

can provide a platform for the widespread increase in creativity and innovation in the

society.

Education for widespread creativity

Another area that needs focused attention for transforming India is education. Barring

some excellent educational institutions, the million or so schools in India, the 20,000-odd

colleges, the 300 plus universities and the so-called deemed universities provide poor

quality of education (seeWikipedia entry on Education in India; World Bank 2006). These

institutions provide some information but not much learning, and certainly very little

stimulation to the creativity of students and teachers as well.

What type of education fosters creativity? There is fairly extensive research literature

on the kind of academic environment that nurtures the creativity of students (Torrance

1965; Pagano 1979; Feldhusen and Clinkenbeard 1986). When education is stimulating

(rather than boring), when creativity is encouraged (rather than discouraged or punished),

when expert feedback is available on one’s creative efforts, then the academic

environment promotes creativity. Also, when the academic institution provides ample

opportunities to learn techniques and know-how relevant to one’s creative pursuits, when

a conscious effort is made in the academic institution to expose students to diverse

perspectives (rather than brainwash them into a single dogma or viewpoint) and when

there is considerable freedom to pursue one’s creative interests but at the same time there

is emphasis on honest effort, there is strong possibility that the alumni of the institution

will make creative contributions to society. One especially important contributor to

students’ creativity is the exposure of students to role models who are pioneers and

innovators. Thus, for creativity to blossom in an academic setting, students need freedom

of thought and expression to engage in creative activity, and for this purpose they also

need to be provided reasonable facilities, expert guidance and evaluation, and a

stimulating environment. Neither a laissez-faire regime for students nor an authoritarian

one is effective in stimulating creativity.

Besides scanning the research literature on fostering creativity in educational bodies,

I looked at a number of educational institutions that provided information in publications

and the Wikipedia indicated were creative. These included India’s elite The Doon School

(Chopra 1996), and Shreyas School (Sarabhai 2010) run on the principles enunciated by

Madam Montessori (1948). They also included the elitist St. Stephens College in New

Delhi (St. Stephens College 2000), and the non-elitist Lokbharati, a group of colleges and

post-graduate departments run on Gandhian principles (Salla 2001); Indian Institute of

Management Ahmedabad (IIMA; Sherry Chand and Rao 2011) and three famed

universities, namely Cairo University (see Wikipedia entry on Cairo University),

Cambridge University (see Wikipedia entry on Cambridge University; Leedham-Green

1996) and Harvard University (see Wikipedia entry on Harvard University; Wasserman

1979; Mehta 2012). Thereafter I came up with the model of creative education in

educational institutions shown in Figure 2.

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Lokbharati, a group of colleges and post-graduate departments founded and run on

Gandhian principles, provides an interesting example of how an institution with meagre

resources can make a significant contribution to transforming rural mindsets through

innovative educational practices (Sarvaiya, Desani, Chaudhari, Solanki and Khant 1997;

Salla 2001; Pathak 2009). Lokbharati was established in 1953 at a place called Sanosara in

the state of Gujarat in Western India. Its mission was to demonstrate how higher education

can contribute in practical ways to tackling the problems of rural India. Lokbharati boasts

alumni of over 3000, of which nearly 60% are engaged in teaching, thus multiplying the

impact of Lokbharati. Some distinguishing features of this residential institution are its

family-like atmosphere, a rich and variegated community life and encouragement to the

freedom of thought. Despite severe resource constraints, the institution has a library of

over 50,000 books, plus periodicals and reference works. The language of instruction is

Gujarati, but English is not neglected.

Community life at Lokbharati lays emphasis on co-education, physical labour,

education in mother-tongue, wearing of khadi (cloth made of cotton spun at home),

agriculture, cow nurturing and cooperation. The institution teaches subjects like

economics, science, philosophy and politics, but as anchors for practical living. It lays

Design of Creative Education

Stimulating + Encouragement + Expert Feedback

Education to Creativity on Creative Effort

+ +

Diversity Pioneers

of Perspectives Creative Education and

Innovators

as Role Models

+ +

Freedom, but with Relevant

Accountability Learning

for Honest Effort Opportunities

Widespread and Variegated

Creativity among Students:

Essence Creativity

Elaborative Creativity

Expressive Creativity

Entrepreneurial Creativity

Existential Creativity

Empowerment Creativity

Figure 2. Design of creative education.

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stress on values and character building, the dignity of labour and the application of higher

knowledge to the solving of the problems that beset poor people, especially the rural poor.

For instance, knowledge acquired through studies is applied by the students to alleviate

suffering during famines, floods, earthquakes, communal riots and so forth. Even during

the many cultural festivals that are celebrated at Lokbharati, the emphasis is on social

awareness and how to become more serviceable to society.

There are several distinguishing features of Lokbharati. For instance, study is

interdisciplinary at Lokbharti. Every student must study both the sciences and the

humanities. The idea is to fuse technical expertise with wisdom and compassion. Second,

the practical use of knowledge is strongly emphasised. As an example, students studying

chemistry may be asked to go to a village, analyse the water from its wells to identify

impurities and counsel the locals on how to solve the problems created by the impurities.

While learning economics, the students may be asked to go to a village and find out what

price the farmers got when they sold off their produce to middlemen, and the much

higher price prevailing in the market after some weeks, to comprehend the exploitation

of the farmers by middlemen, and then advise the farmers on how to eliminate or

minimize exploitation. The students cover on their own about a fifth or more of the

syllabus through self-learning. Every student is required to write articles and a

dissertation.

At Lokbharti, camps and educational tours are parts of the pedagogy. For instance,

there may be a camp on how to deal effectively and on Gandhian lines with situations of

social unrest; a camp to understand better the tensions between humans and their

environment; a camp in a tribal area to understand better the tribal culture and economy.

Lokbharati has adopted several dozen villages and in one of these villages a 10-day camp

may be organized to get the students to understand the pulse of an Indian village and its

problems, strengths and weaknesses. To develop literary and intellectual sensitivity, a

week’s study may be organized to study the works of writers like Rabindranath Tagore,

and memorial lectures on a wide variety of topics are held.

For the student and teaching community, there is a programme of extension work in

villages. Every Thursday, students and teachers go to selected villages to work with village

families and develop programmes for improving their quality of life. In the medical and

social work faculties, there is a system of internship to test and strengthen the student’s

skills through a programme of work experience.

At Lokbharti, community life in the dorm is considered an integral part of the syllabus.

It is regarded as the most effective way of developing a balanced, multi-sided and noble

personality, and good citizenship. Promotion is contingent, not just on grades, but on the

student demonstrating this sort of development and goodness. Self-reliance and goodness

are inculcated by the students through preparing and serving food, cleaning up vessels and

latrines, elimination of caste and gender inequality, evening get-togethers, etc. The best

teachers are appointed as managers of the dorms. Students at Lokbharati operate a number

of study groups such as music, drama and literature groups, forums for studying planning,

agriculture, animal husbandry, health, science, cultural preservation, etc.

Lokbharati’s Community Science Center aims to develop a scientific approach in

every sphere of life, to familiarize students with new inventions, to help them grasp the

principles of science behind everyday life and natural occurrences and to free them from

superstitions. Science programmes prepared by students are exhibited in the villages to get

rid off superstitions. Lokbharati has researched the cross-breeding of cows to yield more

milk for longer periods, experimented with varieties of crops for higher productivity and

quality and then propagated the results to farmers.

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A survey revealed that what seems to distinguish the alumni of Lokbharati is the

alumni’s compassion for the underprivileged, reliability, the capacity for hard work and

self-assurance that comes from manual work and from constant and productive interaction

with the underprivileged (Pathak 2009). It also revealed that over 60% had taken to

teaching and these teachers were propagating Lokbharati values and processes. In

addition, another 25% were playing social change agent roles in various government and

non-government bodies. Multiply Lokbharati a thousand times, and a country like India

can experience a surge in high-quality, socially relevant, character-building education at

the grass-roots level that can spur extensively innovation and creativity.

How can high-quality, stimulating education be delivered to millions of children who

in Third World countries are indifferently taught in numerous schools with poor facilities?

Educomp, a company founded and promoted by a management graduate, offers a way

forward (Bansal 2008). As of 2010, as per Educomp’s annual report and other documents,

Educomp was catering to over 25,000 schools across India and was serving over 15

million students. It was offering multimedia educational content via satellite technology

to over 3.5 million students in about 4500 private schools and to nearly 7.5 million

students in about 14,000 government urban and rural schools, with content in English as

well as in India’s regional languages. It also operated hundreds of preschools, schools and

vocational training centres. Teachers were provided training, and were enabled to make

learning exciting.

Educomp has developed a digital library of over 16,000 multimedia modules for

assisting teachers. Multimedia education has several features: audio-visual aids,

animation, additional learning facilities, interactive facility, questions to probe

comprehension by the students and assistance to teachers to make learning truly

exciting. Such education offers much hope for bypassing decades of pathetic schooling

and alongside the computer and telecom revolutions, it can provide creativity-

enhancing education at relatively low cost to practically all the students of Third World

countries.

Civil society and widespread creativity

Civil society is society minus the government, the family and the business enterprise

sectors (Alagappa 2004; Edwards 2004). In Third World contexts, along with government

and educational institutions, the civil society can be a major prop for the emergence of a

creative society. What features of civil society institutions can promote widespread

creativity? I reviewed some 20 civil society institutions all over the world that I considered

to be innovative to seek a better understanding of these features. The institutions included

creativity-fostering movements (Tarrow 1994), like the Gandhian movement for

empowering the disadvantaged (Narayanasamy 2003) and the movement for sustainable

development (United Nations 1989; Neiland, Bennett and Townsley 2005); unions, like

Histadrut of Israel (Sachar 1989) and SEWA (Self Employed Women’s Association) of

India (Bhatt 2006); think tanks, like Transparency International (Transparency Review

2008; see Wikipedia entry on Transparency International); societies, like India

International Centre (India International Centre 2012) and National Geographic Society

(Poole 2004); media, like Discovery and its sister channels (see Wikipedia entry on

Discovery Channel); social enterprises, like Grameen Bank of Bangladesh (Yunus and

Jolis 2007) and Wikipedia (see Wikipedia entry on Wikipedia); cooperatives like

Mondragon of Spain (Whyte and Whyte 1991; see also Wikipedia entry on Mondragon)

and Amul of India (Heredia 1997); communications facilities, like the Internet and the

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World Wide Web (Cantoni and Tardini 2006); and NGOs like Arvind Eye Hospital Group

in the Indian state of Tamil Nadu (see Wikipedia entry on Arvind Eye Hospital and its

founder Dr Venkataswamy), Society of Jesus (Martin 1987) and Ramakrishna Mission

(Belur Math 2010). Despite the enormous diversity of these civil society institutions, seven

factors seem to characterize most of them. On the basis of available information, I have

indicated in Table 1 the presence or absence of these factors in these civil society

institutions.

For a civil society institution to make a significant contribution to the emergence of

societal creativity, two energizing factors seem to be an innovative, audacious and

Table 1. Creative civil society institutions and factors buttressing their creativity.

Creativity-supportive factors

P = Factorpresent

? =Uncertain A = Absent

Institution 1 2 3 4 5 6 7

Creative MovementsGandhian movement for empowering thedisadvantaged (India)

P P P P P P A

Movement for sustainable development(international)

P P P P P P P

Creative unionsHistadrut (Israel) P P P P P P PSEWA (India) P P P P P P P

Creative think tanks/research centresTransparency International (International) P P P P P P P

Creative societiesIndia International Centre (India) P P P P P P PNational Geographic Society (USA) P P ? P P ? P

Creative mediaDiscovery and sister channels (USA) P P ? P P ? P

Creative social enterprisesGrameen Bank (Bangladesh) P P ? P P ? PBHEL (Bharat Heavy ElectricalsLimited; India)

P P ? P P ? P

Wikipedia (International) P P P ? P P PCreative cooperativesMondragon (Spain) P P P P P P P

Amul (India) P P P P P P PCommunication facilitiesInternet and the Web (International) P P P P P ? P

Creative NGOsIAC (USA) P P ? ? P P PAKRSP (India) P P P P P P P

Creative philanthropiesArvind Eye Hospital (India) P P ? P P ? PSir Dorabji Tata Trust (India) P P ? P P ? ?

Creative religious bodiesSociety of Jesus (International) P P P P P ? PRamakrishna Mission (India) P P P P P P P

Note: Creativity-buttressing factors: 1¼ bold, altruistic mission; 2 ¼ top leadership’s strong commitment to themission; 3¼ dispersed leadership (many local leaders); 4 ¼ diverse mission-inspired ventures; 5 ¼ innovativeresponses to challenges; 6 ¼ participatory management; 7 ¼ use of professional expertise.

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altruistic mission, such as the milk-for-all revolution of India (the so-called White

Revolution) promoted by Amul, or knowledge at one’s fingertips for everyone in the world

as in the case of the Wikipedia, or SEWA’s mission to empower millions of illiterate self-

employed women. Equally important is the passionate commitment of the apex leadership

to this mission. But these are not enough. They create a potential for contribution, but that

needs to be fructified by a distributed leadership (that is, plenty of competent local leaders

committed to the cause). Equally important are mission-oriented entrepreneurship and

innovation and diversification as a response to the mission. Professional expertise and

participatory management further improve the prospects. The result then is a huge synergy

that can make for a highly significant contribution to the emergence of a creative society.

The emergent model of a creative, impact-making civil society institution is shown in

Figure 3.

SEWA provides a remarkable example of how a civil society institution, working

innovatively with the weakest of the weak, can bring cheer to their lives through the

mechanism of cooperation (Bhatt 2006; Chen, Mirani, Parikh and SEWA Academy

2006). The Self-Employed Women’s Organization (the acronym SEWA means service)

was founded in 1972 in Ahmedabad in Western India. SEWA is a union of self-

employed poor women. Its members are rag-pickers, tailors, street vendors, day wage

labourers, tiny scale producers, etc. The strength of SEWA, barely 300 in 1973, has

grown to nearly 1.7 million now. About 80% of the members are from India’s rural

areas. SEWA is the first trade union of its kind in the world, that is, of self-employed

workers who earn their livelihood in the informal or unorganized economy, and is also

one of India’s largest unions. SEWA is inspired by Gandhian ideals. It aims at gainful

employment for its members by organizing, training, educating and empowering

illiterate or semi-literate women.

Model of Significant Contribution of Civil Society Institution to Emergence ofCreative Society

Innovative, Bold and AltruisticMission

Apex Leadership’s Passionate Commitment to Mission

Potential Contribution to Emergence of Proactive, Creative Society

++ + + +

Distributed Entrepreneurship Professional Participative Mission-related

Leadership & Innovation Expertise Management Diversification

(Capable

Local Leaders)

Significant Contribution to Emergence of Proactive, Creative Society

Figure 3. Model of significant contribution of civil society institution to emergence of creativesociety.

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SEWA is much more than a mere union to protect and further the rights of its

members. It has taken a comprehensive view of the requirements of its members and

diversified its activities accordingly. To empower its members, it runs a bank that

funds its members and channels their savings; it operates a body to organize poor

women; a body to provide health care, child care and insurance services; a body to do

research on women’s issues and to provide training; a body to market its members’

products and services; and a body to provide housing and related services to them.

SEWA also actively formulates and pursues the adoption of policies that aid poor

women at both the national and international levels. SEWA has increasingly turned to

consultants and professional managers to carry out these diverse and complex

activities.

SEWA is managed democratically. Representatives are elected from its various

organizations to the SEWA Council. The current president of SEWA is a former migrant

worker. It is very alive to getting feedback on how well it is performing, and for this

purpose it conducts a number of surveys. Twenty-one surveys of various facets of

SEWA’s activities have indicated many positives, such as increased employment for

women members; increasing number of women engaging in entrepreneurial activities;

higher and more regular income of the members; lesser indebtedness; more assets; better

nutrition for the children in SEWA day care centres; greater awareness of prenatal, natal,

and post-natal care; lower mortality of the girl child; better birth control; more health

insurance; more durable housing; and greater financial self-reliance (Chen, Khurana,

Mirani and SEWA Academy 2005).

SEWA actively creates women leaders through various sorts of leadership-enhancing

training and exposure, including training in values. A survey (Chen et al. 2005)

indicated that these leaders speak out their views more than the ordinary members of

SEWA, argue more effectively, deal more effectively with local self-government bodies

and the police and other government functionaries, and enjoy more prestige in the local

communities.

SEWA provides an interesting example of how a strong sense of mission and zeal on the

part of leadership, combined with mission-directed diversification, dispersed leadership,

participative management, the use of professional expertise and innovative responses to

challenges can make a huge, positive impact on innumerable downtrodden lives in a Third

World setting, and pave the way for much creativity and innovation on their part.

Concluding comments

Creativity is one of the most precious of human resources. Properly harnessed through

society-level HRM, it can profoundly transform the quality of life and living standards in

relatively poor, underdeveloped societies. To bring the glory of widespread and positive

creativity and innovation to a Third World country like India, its society needs to revamp

governance, primarily through NPM. It needs to use multimedia-based distance education

much more extensively to bring intellectual and visual stimulation to the classroom.

It needs to promote a civil society whose institutions passionately and creatively pursue

causes. These institutions need to do so through decentralized leadership, participative

functioning, use of professional expertise, and creativity and innovation energized by an

entrepreneurial spirit. The Third World is about 70% of humankind. If Third World

societies can harness one of this most precious of human resources, namely positive

creativity, then not only these societies but humankind itself could levitate to a far more

vibrant and decent civilization.

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