By what they say and do, senior managers help shape their organizational culture and influence the

mindset and behavior of employees. But sometimes employee behavior can become institutionalized and serves as a hindrance to performance when it is not in step with the context the organization operates in. Bajaj Auto was one of Indias leading companies till the 1970s. In 1980, Bajaj Auto was the top scooter manufacturer in India, and there was a ten-year waiting list for the Bajaj Chetak. Bajaj Auto maintained it leadership position through operational efficiency and stringent control on costs, at a time when the Indian market did not have much to choose form in terms of quality, features, or models. Used to market leadership, Rahul Bajaj once famously remarked that he did not need a marketing department. Innovation, design-orientation, and service-orientation were low, consistent with the almost monopolistic market position of Bajaj Auto. However, the 1980s brought liberalization of the two-wheeler industry, with relaxation in capacity-licensing and foreign collaboration. All major global two-wheeler manufactures including Honda, Suzuki, Yamaha, and Piaggio started entering the Indian market through collaborations or joint ventures. In the 1990s, came economic liberalization, and with it, sweeping changes in demographic patterns and consumer preference. The Indian consumer started to tilt towards motor cycles. Scooter sales continued to drop, and industry analysts started writing off Bajaj Auto as a leading player in the two-wheeler industry. Around this time, Rajiv Bajaj entered the fray. Rahuls son came back to India, freshly armed with a masters degree in engineering from Warwick, UK. He quickly realized that the market had changed, and that Bajaj Auto needed to rethink its strategy carefully in order to reposition itself in the two-wheeler industry where consumer preferences were rapidly changing form scooters to motorcycles. Motorcycles had been a peripheral business at Bajaj Auto till now, and the resistance to re-orient from scooters to motorcycles was slowing down the change process. Moreover, quality and design orientations had to change. The customer was becoming more quality conscious, and much more demanding in terms of design, convenience, and performance parameters like power and fuel efficiency. Rahul Bajaj was used to operating his factories efficiently by the old norms of cost-cutting and production efficiency. Innovation and R&D were never the focus areas. Employees at Bajaj Auto, long used to unchallenged market leadership, were set in their old ways. To Rajiv, looking at the operation without the baggage of the past, it was time for drastic changes. He decided to set up a new, leaner, and more efficient factory at Chakan, 45 km from the headquarters. The objective was to create a break from the past systems and equipment that were rigid, inflexible, and incapable of the quality orientation. It was part of Rajivs dream to be able to produce Japanese quality in India. Quite apart from the rigidities of the systems and the equipment, Rajiv Bajaj realized that what they were trying to do would be difficult at the existing plants because mindsets had to change. Rajiv wanted to start a new plant with a totally new work force and work culture that could compete with the worlds best. Chakan was started an experiment. There were no workers. Everyone was staff. Rajiv was quick to take advantage of the easy and relatively inexpensive availability of diploma engineers and R&D scientists in India. The old factory at Akurdi had 20 percent daily wage workers, 80 percent skilled workers and no engineers at all on the shop floor. At Chakan, the workforce consisted of 80% diploma engineers and 20% skilled workers. Wages averaged just Rs.12 000 pm for engineers at Chakan against Rs. 11 500 for workers at Akurdi.

The hidden savings came from productivity gains. Since the productivity of the engineers was several times higher, costs decreased. The company was also able to increase focus on R&D, producing many more new designs, which allowed Bajaj to establish itself in the two-wheeler industry, and even take on market leader Honda. The advantage of using a fresh workforce was that they did not carry any baggage from the past, which made them more open to learning and innovation. Bajaj Pulsar, the hugely successful motor cycle from Bajaj, was indigenously developed at the Chakan plant, and more than one million of them have been rolled out of the Chakan plant already. Chakan has been producing 2,400 twowheelers a day, at a productivity level of three vehicles per employee, as opposed to 0.8 vehicles at the Akurdi factory. The lesson is clear. A highly successful organization in one set of conditions can go into decline when conditions change. The culture of an organization is often the most difficult to change, but can be a lasting source of organizational performance.

Industrial Revolution
The Industrial Revolution was a period from the 18th to the 19th century where major changes in agriculture, manufacturing, mining, transportation, and technology had a profound effect on the socioeconomic and cultural conditions of the times. It began in the United Kingdom, and then subsequently spread throughout Europe, North America, and eventually the world. The Industrial Revolution marks a major turning point in human history; almost every aspect of daily life was influenced in some way. Most notably, average income and population began to exhibit unprecedented sustained growth. In the two centuries following 1800, the world's average per capita income increased over 10-fold, while the world's population increased over 6-fold. In the words of Nobel Prize winner Robert E. Lucas, Jr., "For the first time in history, the living standards of the masses of ordinary people have begun to undergo sustained growth. ... Nothing remotely like this economic behavior has happened before." Starting in the later part of the 18th century, there began a transition in parts of Great Britain's previously manual labour and draft-animalbased economy towards machinebased manufacturing. It started with the mechanization of the textile industries, the development of iron-making techniques and the increased use of refined coal. Trade expansion was enabled by the introduction of canals, improved roads and railways. The first Industrial Revolution, which began in the 18th century, merged into the Second Industrial Revolution around 1850, when technological and economic progress gained momentum with the development of steam-powered ships, railways, and later in the 19th century with the internal combustion engine and electrical power generation. The period of time covered by the Industrial Revolution varies with different historians. Eric

Hobsbawm held that it 'broke out' in Britain in the 1780s and was not fully felt until the 1830s or 1840s, while T. S. Ashton held that it occurred roughly between 1760 and 1830 The commencement of the Industrial Revolution is closely linked to a small number of innovations, made in the second half of the 18th century: Innovations: Textiles Cotton spinning using Richard Arkwright's water frame, James Hargreaves's Spinning Jenny, and Samuel Crompton's Spinning Mule (a combination of the Spinning Jenny and the Water Frame). This was patented in 1769 and so came out of patent in 1783. The end of the patent was rapidly followed by the erection of many cotton mills. Similar technology was subsequently applied to spinning worsted yarn for various textiles and flax for linen. Steam power The improved steam engine invented by James Watt and patented in 1775 was initially mainly used to power pumps for pumping water out of mines, but from the 1780s was applied to power other types of machines. This enabled rapid development of efficient semi-automated factories on a previously unimaginable scale in places where waterpower was not available. Iron making In the Iron industry, coke was finally applied to all stages of iron smelting, replacing charcoal. This had been achieved much earlier for lead and copper as well as for producing iron in a blast furnace, but the second stage in the production of bar iron depended on the use of potting and stamping (for which a patent expired in 1786) or puddling (patented by Henry Cort in 1783 and 1784).