The Leadership of DR Verghese Kurien in
The Leadership of DR Verghese Kurien in
The Leadership of DR Verghese Kurien in
INTRODUCTION
. The rate of milk production being important because of India’s sizeable vegetarian
population ensures a constant demand for dairy products and milk has been an integral part of the
Indian diet for millennia. The tradition of cattle keeping and milk consumption is as ancient as
the civilization and culture of India. Ancient Indian history is replete with praise for cattle
wealth, high quality milch animals, and India being a land of milk, butter and plenty. Reference
to cattle as the symbol of prosperity and wealth appears in all the Vedas, epics and Puranas.
Indian flokloric [folkloric] figures depict Lord Krishna disporting with playful milkmaids. Cow's
milk has been variously referred to as the elixir of life. Property in cows was offered as dowry or
as gift signifying love and reverence until the Mahabharata period (5,000-6,000 years ago) fights
were more often for securing animals rather than occupying land1. Milk and dairy products
continue to be important in the cultural life of modern Hindus. Hindus offer mitais (dairy sweets)
at weddings, birthdays and all religious occasions.
In the 1950s and 1960s, India faced severe milk shortages and relied heavily on milk
imports. Millions of Indian farmers, most with just a few cows, produced milk, but they had no
way of delivering their highly perishable products to the fast-growing cities where demand for
milk was high and rising. In response to the limitations of this system, milk producers of the
Anand district in the state of Gujarat organized themselves into a private cooperative called
Kaira District Cooperative Milk Producers’ Union Ltd (AMUL)2. in 1946. After a visit to the
cooperative, Prime Minister Lal Bahadur Shastri decided that this model should be replicated
throughout India. His dream came to fruition in a bold initiative to “flood India with milk”
through a sophisticated procurement system using rural production to satisfy urban demand.
Operation Flood, a national-scale, federally sponsored intervention, began in 1970 and lasted
until 1996. After that, India is becoming the largest milk producer in the world , surpassing the
USA in 1998. It continues to be the largest milk producing nation in the world with close to 17%
of global production in 2010-113.
1
Suku Baskaran, Culture's Consequences: Dairy Market Opportunities in India, Marketing Bulletin, 1996, 7, 39-50,
Article 5, p. 1
2
Amul(अमूल) is derived from the Sanskrit word Amulya(अमू य), meaning invaluable. The co-operative is also
sometimes referred to by the unofficial backronym: Anand Milk Union Limited.
3
Hindustan Times, India largest milk producing nation in 2010-11: NDDB, December 20, 2011
http://www.hindustantimes.com/India-news/Ahmedabad/India-largest-milk-producing-nation-in-2010-11-
NDDB/Article1-785018.aspx 20 February 2013
1
In this paper we will discuss about management leadership of Kaira District Cooperative
Milk Producers’ Union or sometimes referred to by AMUL (Anand Milk Union Limited)
cooperative that inspires operation flood program in India. In particular, we will highlight the
leadership of Verghese Kurien for a manager at Amul
4
John P. Kotter, Leading change, Harvard Business School Press, 1996, p. 175
5
James A.F. Stoner, Management, Pearson Education, 2005,p. 470
2
Fourth, leadership is about values. Moral leadership concerns values and requires that followers
be given enough knowledge of alternatives to make intelligent choices when it comes times to
respond to a leader’s proposal to lead
A. BEHAVIORAL THEORIES6
Behavioural theory of leadership emphasis that strong keadership is the result of
effective role behaviour. Leadership is shown by a person’s acts more than by his traits.
researchers exploring leadership role have come to the conclusion that to operate effectively,
groups need someone to perform two major functions : task related functions and group
maintenance functions. Task related functions, or problem solving functions, relate to providing
solutions to the problems faced by the groups in performing jobs and activities. Group
maintenance functions, or social functions, relate to actions of mediating disputes and ensuring
that individuals feel valued by the group. An individual who is able to perform both roles
successfully would be an effective leader. These two roles may require two different sets of
behaviour from the leader, known as leadership styles.
Leadership behaviour may be viewed in two ways : functional and dysfunctional. functional
behaviour influences followers positively and includes such functions as setting clear goals,
motivating employees for achieving goals, raising the level of morale, building team spirit,
effective two way communication ,etc. Dysfunctional behaviour is unfavourable to the followers
and denotes ineffective leadership. Such a behaviour may be inability to accept employees ideas,
display of immaturity, poor human relations, etc
6
L.M. Prasad, Principles and Practice of Management, 2010, pp. 736-737
3
appears to be dysfunctional. researchers who have taken behavioural theory for analysing
leadership behaviour have prescribed various leadership styles which may be applied in
managing the people in organizations
This theory suffers from two basic limitations. First, a particular behaviour may be functional at
a point of time but it may be dysfunctional at another point of time. Thus, the time element will
be a decider of the effectiveness of leadership behaviour depends on various factors which are
not in the leader but external to him like nature of followers (subordinates) and the situations
under wich the leader’s behaviour takes place. These factors have not been given adequate
consideration. To that extent, the theory does not explain leadership phenomenon fully.
7
Stephen P. Robbins, Instructor Manual: Essentials of Organizational Behavior, Prentice Hall, 2012, pp.
148-149
4
appeared to be related to measures of performance effectiveness. They also came up with two
dimensions of leadership behavior that were critical:
a. Employee-Oriented. Leaders who were employee oriented were described as emphasizing
interpersonal relations. They took a personal interest in the needs of their employees and
accepted individual differences among members.
b. Production-Oriented. These leaders tended to emphasize the technical or task aspects of the
job. Their main concern was in accomplishing their group’s tasks and the group members
were seen as a means to that end.
c. University of Michigan Summary. The results of these studies were closely related to those
from Ohio State. Employee-oriented leadership is similar to consideration and production-
oriented leadership is similar to initiating structure. The Michigan researchers strongly
favored leaders who were employee-oriented in their behavior. Such leaders were
associated with higher group productivity and higher job satisfaction.
3. Blake and Mouton's Managerial/Leadership Grid. Building from the results of both the Ohio
State and Michigan studies, Blake and Mouton created a leadership assessment instrument
that was based on the styles of “concern for people” and “concern for production.” This tool is
still very popular today and is used in both leadership selection and training programs.
8
D. Ravindra Prasad, Administrative Thinkers, Sterling Publishers, New Delhi, 2011, pp. 190-192
5
kinds of attitudinal responses evoked from them. The operating characteristics include
leadership, motivation, communication, interaction, influence, decision making, goal setting,
goal performance,and control analysed
B.1. Exploitative-authoritative (System – 1)
Likert’s first system is characterized by goal setting and decision making by the top
management and communications flow downwards. The subordinates do not participate in the
decision making process. In this management system the subordinates are not trusted by the
management and the employee’s job is to abide by the decisions of the managers. The
organization is concerned only about completing the work. It uses fear and threats and sporadic
rewards to make employees complete the work assigned. There is no teamwork involved
B.2. Benevolent-authoritative (System-2)
As in the exploitive-authoritative system, decisions are made at the top of the
organization and management. Employees, however, are motivated through rewards for their
contributions rather than fear and threats. Information flows from subordinates to managers but it
is restricted to what management wants. The system is based on master- servant relations
between management and employees. More rewards are given than in System 1. There is slightly
better upward communication and employees are given marginal autonomy.
B.3 Consultative (System-3)
In this management system, the employees are consulted by management before taking
decisions and their involvement in the decisional process exists. Though upward communication
is encouraged, employees are cautious not to send unfavorable information. In this system,
managers partly trust subordinates, use both rewards and involvement of employees to inspire
motivation, foster a higher level of responsibility for meeting goals and inspire a moderate
amount of teamwork.
B.4 Participative (System 4)
Participative management systems are characterized by complete confidence and trust in
their employees, open communication flows and the employee participation in the decision
process. Subordinates freely express their views and team work exists. There is collective
responsibility for meeting organisational goals and objectives and collaborative teamwork exists.
Employees are offered rewards for achieving collectively determined goals.
6
III. PROFILE OF Dr. VERGHESE KURIEN
Born : November 26, 1921
Died : September 9, 2012
Dr. Verghese Kurien is better known as the “Father of the White Revolution” in India. He
is also called as the Milkman of India. Dr. Varghese Kurien was the architect behind the success
of the largest dairy development program in the world, christened as Operation Flood. He was
the chairman of the Gujarat Co-operative Milk Marketing Federation Ltd. (GCMMF) and his
name was synonymous with the Amul Brand
Born on November 26, 1921 in Kozhikode, Kerala, Dr. Verghese Kurien graduated with
Physics from Loyola College, Madras in 1940. Subsequently, he did his B.E. (Mechanical) from
Madras University and went to USA on a government scholarship to do his Masters in
Mechanical Engineering from Michigan State University. In between, he completed special
studies in engineering at the Tata Iron and Steel Company Institute at Jamshedpur, Jharkhand, in
February 1946 and underwent nine months of specialized training in dairy engineering at the
National Dairy Research Institute of Bangalore
Dr. Verghese Kurien returned from America in 1948 and joined the Dairy Department of
the Government of India. In May 1949, he was posted as Dairy Engineer at the Government
Research Creamery, a small milk-powder factory, in Anand, Gujarat. Around this time, the
newly formed cooperative dairy, Kaira District Cooperative Milk Producers’ Union Limited
(KDCMPUL), was engaged in the battle of survival with the privately owned Polson Dairy, a
giant in its field. Enthused by the challenge, Dr. Verghese Kurien left his government job and
volunteered to help Shri Tribhuvandas Patel, Chairman of KDCMPUL, to set up a processing
plant. This led to the birth of AMUL and the rest is history.
In 1965, the then Prime Minister Lal Bahadur Shastri created the National Dairy
Development Board (NDDB) under the leadership of Dr. Verghese Kurien to replicate the
success story of Amul throughout the country. In 1973, Dr. Kurien set up GCMMF (Gujarat
Cooperative Milk Marketing Federation) to market the products produced by the dairies. Under
Dr. Kurien’s stewardship, India became the largest producer of milk in the world. Dr. Kurien
breathed his last on September 9, 2012, after a brief illness, in Nadiad, Anand, Gujarat. He was
90yearsold.
7
During his illustrious career, Dr. Verghese Kurien won many accolades and awards. These
include: Ramon Magsaysay Award for Community Leadership (1963), Padma Shri (1965),
Padma Bhushan (1966), Krishi Ratna Award (1986), Wateler Peace Prize Award of Carnegie
Foundation (1986), World Food Prize Laureate (1989), International Person of the Year (1993)
by the World Dairy Expo, Madison, Wisconsin, USA, and Padma Vibhushan (1999).
9
Darm P.S. Bawuk, From Social Engineering to Community Transformation: Amul, Grameen Bank, and
Mondragon as Exemplar Organizations, p. 19
http://www.humiliationstudies.org/documents/BhawukMrazekMunusamyBeyondSocialEngineeringinPeaceandPo
licy.pdf
8
around 230 kgs of milk per day, stood transformed. Dr. Kurien’s efforts had brought into the
Milk Producers’ Union 219 farmer societies with 46,400 members.
Dr. Kurien described his humble beginnings in the town of Anand in 1949, “a dusty small
town of 10,000 people,” which was anything but pleasant. He narrated his story in an interview :
“I was compelled to come here because my education was paid for by the government, then
British government. Therefore, my obligation to the British government was transferred to the
Indian government. So I was sent to Anand. People were not modern. Road, communication,
everything was bad. There was no bathroom. Three corrugated sheets made my bathroom. That
is how I started.” He could not find a decent rental place because he was “Christian, and outsider,
and above all a bachelor.”10 So he lived in the garage of the dairy plant. He had to construct his
own lavatory. He lived in the same modest condition as that of the community he represented.
But he stayed back because of the warmth he received from the farmers. And he states, “It is
here that I found myself, and I am glad that I stayed here.”11 The world-renowned social
entrepreneur who created a world-class organization, and led India to become the largest milk
producer in the world in his senior year claims to have found himself in Anand. This shows the
power of mutual transformation. When a change agent stays committed to the community, the
transformation is bidirectional, and the change agent transforms with the
community.
It is plausible that the farmers could relate to him as he was no different from them in his
living conditions despite his elitist education. In the interview, he further noted: “I could have
gotten a high paying salary in a city. But I could not have received the warmth, affection, and the
love of the people that I worked with, and people for whom I worked in those environments.”
A. Team Work
At the beginning, there is a team that greatly influenced the development of cooperatives
Kaira. The members of the team is Kurien Vergeshen, the man who become educated
professionals in engineering and dairying, in agricultural and veterinary sciences. The second is
Mr. Tribhuvandas Kishibhai Patel (October 22, 1903 – June 3, 1994) was the founder of the
10
ibid., p. 21
11
ibid., p. 22
9
Kaira District Co-operative Milk Producers' Union Tribhuvadas became a follower of Mahatama
Gandhi and Sardar Vallabhbhai Patel during the Indian independence movement, and especially
the civil disobedience movements, which led to his repeated imprisonment in 1930, 1935 and
1942. By the late 1940s, he started working with farmers in Kheda district, with the guidance
of Sardar Vallabhbhai Patel, and after setting it the Union Mr Tribhuvadas has hired a young
manager named Verghese Kurien in 1950. the third person is H.M. Dalaya the man who became
Kurien assistance of manager. His background is a technologist who created innovation of
making skim milk powder from buffalo milk for the first time anywhere in the world and a little
later. The initiative and dynamism shown by Verghese Kurien-a professional manager,
Tribhuvandas Patel-a visionary farmer, H.M.Dalaya- technologist to fight against all the odds is
quite commendable. The extrovert Kurien, the introvert Dalay and the equable Tribuvindas, in
consequence of sharing a single minded commitment to the cooperative movement, made a
harmonious and effective team
10
managerial professionalism and the specific challenges of rural management, Dr. Kurien
advocated the creation of the Institute of Rural Management, Anand (IRMA) to train young
aspirants to become professional rural managers. One of its main missions is to “educate a new
breed of professional rural managers having appropriate values and ethos to help rural
organizations and institutions in professionalising their management and empower rural people
22 through self-sustaining processes.” Community building requires allowing leaders to emerge
from the community who understand the needs of the community. This is not to downplay the
role of the expert, which clearly in this partnership is represented by Dr. Kurien, a mechanical
engineer by training.
C. Democratic model.
Under the AMUL model, the entire value chain –from procurement, to processing and
marketing – is controlled by the farmer’s cooperative, which is directly linked to the final
customer There are no middlemen; the cooperative collects the milk directly at the producers’
doorsteps. The model envisages that democratic elections are held every three years, to elect the
members of the management committees who, in turn, elect the chairman. This ensures an active
participation of farmers in decision-making, as well as transparency and democratic
management. Membership is open to anyone who owns at least one cow and is able to provide at
least 700 litres of milk per year. The final price of Amul products are decided by KDCMPUL,
which conducts market surveys on aspects including the costs of milk, labour, processing,
packaging, advertising, transportation and taxes
11
Amul has not only installed more than 4000 Automatic Milk Collection System Units
(AMCUS) at the level of Village Societies, but also proved the cynics wrong by successfully
producing powder milk from buffalo milk. In fact, in 2005, the total annual production of milk
product from buffalo milk was higher than cow’s milk and its contribution in terms of financial
value was twice as large as the contribution of cow’s milk. This is despite the fact that many
years ago the expert from New Zealand advised Dr. Kurien that they should not try to make
powder milk from buffalo milk because it would not work. Amul went ahead and did it and now
makes more powder milk than New Zealand and is the largest producer of milk in the world
(Roger, 2007).
12
managed like profit-oriented organizations that are hungry for quarterly growth. Dr. Kurien
faced an uphill task in the initial years of Amul, but he was flexible to seek remedies. For
example, the rapid growth of the Amul movement resulted in overcapacity of milk in winter
months when the production of milk was on average 2.5 times higher than other months. Farmers
again were forced to sell at lower rate to middlemen. Dr. Kurien among others sought the
assistance from the Central Food Technological Research Institute (CFTRI) in Mysore to
produce baby food and cheese from buffalo milk. This was the world’s first commercial cheese
and baby food production from buffalo milk.12 His skillful handling of challenges and moving
forward earned him the praise of Prime Minister Lal Bahadur Shastri on many occasions in the
sixties, and he commended his "extraordinary and dynamic leadership."
13
showed that he was not alone in deciding organizational policy. Third, Under the AMUL model
procurement, processing and marketing – is controlled by the farmer’s cooperative, which is
directly linked to the final customer The model envisages that democratic elections are held
every three years, to elect the members of the management committees who, in turn, elect the
chairman, This ensures an active participation of farmers in decision-making, as well as
transparency and democratic management. Membership is open to anyone who owns at least one
cow and is able to provide at least 700 litres of milk per year. Fourth, the highlight of Dr.
Kurien leadership in AMUL is how the organization can encompass community building. As we
know, Community building is a field of practices directed toward the creation or enhancement of
community among individuals within a regional area (such as a neighborhood) or with a
common interest. It is sometimes encompassed under the field of community development. The
leader should defining problems in organization with the community. On the other word, we can
say Community building requires allowing leaders to emerge from the community who
understand the needs of the community. That is why participation in decision making process
being important in organization.
12
Shanti George, Operation Flood and Rural India : Vested and Divested Interests, Economic and Political
Weekly, Vol XX, No 49, December 7, 1985 p. 2163
14
ontribution of females to dairying is restricted by this practice. Speaking more generally, women
ar not significant part of the cooperative structure.
REFERENCES
Bruce A. Scholten, White Counter Revolution ? India’s Dairy Cooperatives in a Neoliberal Era,
Human Geography Vol 2 (1), 2009
Darm P.S. Bawuk, From Social Engineering to Community Transformation: Amul, Grameen
Bank, and Mondragon as Exemplar Organizations,
http://www.humiliationstudies.org/documents/BhawukMrazekMunusamyBeyondSocialEngine
eringin PeaceandPolicy.pdf
Hindustan Times, India largest milk producing nation in 2010-11: NDDB, December 20, 2011
http://www.hindustantimes.com/India-news/Ahmedabad/India-largest-milk-producing-nation-
in-2010-11-NDDB/Article1-785018.aspx 20 February 2013
Ruth Heredia, The Amul India Story, Tata McGraw Publishing, New Delhi, 2007
Shanti George, Operation Flood and Rural India : Vested and Divested Interests, Economic and
Political Weekly, Vol XX, No 49, December 7, 1985
15