Muhammad Yunus and the art of alternate organizational management

“There is at least one important thing that cannot be done unless you do it :- Unknown”

He is a Bangladeshi Banker, an Economist and above all a Social Business man, aiming to redesign the system as an inclusive system.  Having said that I saw a video where he was delivering a speech in Emory University and it helped me to understand what is microcredit but more over why any country in the world should include microcredit in its system?

Muhammad Yunus was teaching as a economics teacher in Atlanta when Bangladesh was cherished with the freedom. After this he returned to his homeland, and saw how LOAN SHARKS were taking control of the life of poor people by giving them small loans. Out of desperation he started to give small loans (which came from the conventional bank) to poor people. This led to the institution of GRAMEEN BANK which works on the following simple principle and these principles were opposite to the principles of conventional banks:-

1.Conventional banks give money to rich people, because they think poor people are not credit worthy. But Grameen Bank gives money to poor people which they need it to take control of their lives.

2.Borrowers of conventional banks were mostly men. On the other hand the borrowers of th Grameen bank are women (till now they have 97% women borrowers in total of 8 million borrowers).

3. Unlike conventional banks, Grameen banks are free from lawyers as they do not need collateral to give loans to people neglecting the past issues of these people.

The prime motto of the Grameen Banks is to increase literacy rate in Bangladesh and so they always motivate people to send their children to school, colleges etc. to get the education by giving them the opportunity in terms of small loans. We know a mind can only plan or work when it sees an opportunity of anything which leads to planning and put one in the driver’s seat of one self’s life. This education helped people to transform their life which consequently helped in the transformation of families and the villages. Now the question arises what creates poverty; is it in the person or it is imposed on him/her from outside. Looking at the successful results of the Grameen Bank we can say that poverty is created by the system and the institutions that had been built by us and in which we live in.

In the same terms Grameen bank replicate its model in America with the name of Grameen America and have more than 2000 borrowers (all women) in Queens and Brooklyn with average loan of USD 1500.

Muhammad Yunus is also the part of social business. Unlike other business the CEO of this social business looks after the number of children got out from malnutrition as the arsenic concentration in the water of Bangladesh is higher the many countries. With the help of several other companies this these people are helping the children, females and other malnourished people by giving them nutritious yogurts, micronutrient sachet, cheap mosquito nets etc. Currently with Adidas they are developing  low cost shoes so that the poor people can afford them to reduce the level of malnourishment.

Hence the answers of the questions asked in the first paragraph is that the micro-credit  is extension of very small loans (micro-loans) to impoverished borrowers who typically lack collateral, steady employment and a verifiable credit history. It is designed not only to support entrepreneurship and alleviate poverty, but also in many cases to empower women and uplift entire communities by extension. As people the are no different in any given countries so it can and should extend it's footprint to every country in the worlsd

The art of Alternative Organisational Management:-

The philosophy of organisational behaviour held by management consists of integrated set of assumptions and beliefs about the way things are, the purpose for these activities and the way it should be. These philosophies are sometimes explicit and occasionally implicit, in the minds of a manager. The selected elements are:-

1.       People should treat each other with consideration, trust and respect.

2.       Each person is valuable, is unique and makes a contribution

The basis of this type of management is trust, community and meaning. The managerial orientation is caring and compassion while the employee orientation is psychological ownership which leads to the passion and commitment to organisation goals in more effective manner. This model reflects the values underlying positive organisational behaviour, where managers focus their attention on helping employees develop feelings of hope, optimism, self-confidence and courage.