Issn 2231-4172

Print ISSN: 2231-4172
Volume IV Issue 1 (2) January 2013

EDITORIAL BOARD Dr. V. S. More, India Dr. S. M. Ahire, India Dr. Manoj Kumar, India Dr. Abha Gupta, U.S.A. Dr. Ravindra Rena Namibia Dr. Rifki Ismal, UK. Dr. Haitham Nobanee, UAE. Dr. Pinaki Mazumder, USA. Dr. Amit Kumar Dwivedi, India Michael Sunday Agba, Nigeria Dr. Y. T. Pawar, India. Dr. Shakeel Ahmed, India Dr. (Mrs.) Swalehak Pathan, India. Dr. El-Nabulsi Ahmad Rami,S. Korea. Dr Balakrishnan P, Malaysia Dr. Hj. K. Jusoff, Malaysia Dr. Mohd Zainal Abidin, Malaysia Dr. Vicky Mody, USA. Dr. Rusli Bin Hj Abdullah,Malaysia Dr. Lynn C. Dailey,USA Dr. Bhanu Shrestha, Korea Dr. Ahmed Umar Khan,India Hamou Reda Mohamed, Algeria Dr. Ghous M Khan, USA Edib Smolo, Malaysia Prof. Ekta Arora, India. Dr. (Sr.) Jaya Shanthi, India. Prof. Nawab Ali Khan, India Prof. Shiv K. Tripathi, Tanzania Pravin P. Ingole, Germany Dr. Ananda. S., Sultanate of Oman Dr.Mohammad Waqar Ashraf, Saudi Arabia Dr. Amitabh Deo Kodwani, India Dr. Anand Agrawal, Malaysia. Emil R. Kaburuan, Ph.D. ,Taiwan Dr.Tanu Kashyap,,India Dr. G.Ananthapadmanabhan, India Dr.Setyabudi Indartono, Indonesia. Dr.Mohammed Belal Uddin, Bangladesh Dr. S. D. Sindhkhedkar, India
Editor-in-Chief : Dr. V. S. More (India) Associate Editors: Wichian Sittiprapaporn (Thailand), Chee-Keong C.(Malaysia) Susana Garrido Azevedo (Portugal)
Managing Editor: Dr. Arif Anjum (India)
Website: www.researchersworld.com
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-Journal of Arts, Science & Commerce
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INDEX
Succession Planning and Leadership Development in Software Organizations (With Reference to Select Leading Information Technology Companies in Bangalore) A.H.Masthan Ali & Dr. P.Premchand Babu (India) I Statistical Review of the Problem of Crime against Women in India
Dr. B. D. Karhad (India) I
1.
01-12
2.
13-19
3.
Promoting Sustainable Development among Teacher Trainees An Observational Study Rashmi Sinha, Sister Saroj M. A. C.& Dr. Durga Sharma (India) , & Vizai Bhaskar is an Emerging Fourth-World Playwright with Deeper Social Concern and Humanism Critical Evaluation of His Select Plays Hari Babu Thammineni (India) Love and Spirituality in Management and Business
Dr. Vidhu Gaur (India)
20-24
4.
25-28
5.
29-36
6.
A Study on Mobile Banking in Nationalised Banks with Reference to Coimbatore City K.Jeyabalan (India) How does Training help to Develop: Cause and Effect Relationship
S. Amolak Singh (India)
37-42
7.
43-51
8.
Restructuring - A Successful Turnaround Strategy: Case of Delta Airlines Dr. Sneha Mankikar (India) Performance Appraisal with Reference to Textile Sector in Coimbatore H.Geetha (India) Primary School Teachers Views and Practices towards ICT in Rural Area (A Case of South Solapur) Prof. Dayanand Dundappa Mhetre & Mr. Sachin Surywanshi (India)
52-55
9.
56-63
10.
64-73
11. Capital Budgeting - A Review of the Theoretical and Practical Aspects

Sushma Verma (India) I
74-80
International Refereed Research Journal www.researchersworld.com Vol. IV, Issue1(2) January 2013
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12. Framework for Recommender Systems

Mrs. Ketaki S. Pathak, Mrs. Chetana A. Desale & Dr. A. V. Patil (India) I
81-85
13. Tsunami Disaster Management and Cosatal Development

Dr. Pagar Mansaram Pandit & Dr. K.T.Khairnar (India)
86-90
14.
Innovative Distribution Stratergies A Case Study of Life Insurance Companies in India Prof. Prakash.K.Vadavadagi & Dr.R.G.Allagi (India) Causal Relationship between Household Saving and Economic Growth in India: A Granger and Co- Integration Approach Rajni Pathania (India)
91-99
15.
100-105
16. Quality of Work Life in it Sector & its Impact on Employee Productivity Dr. Ashfaque Ahmed (India) 17. Innovative Learning: Face Book Vs Linkedin
Ms. Bharti Keswani (Ms. Riya Malukani) & Dr. Sourabhi Chaturvedi (India)
106-117
118-121
18. Green Marketing: Marketing & Social Issue

Prof. Chetan N. Jagale & Prof. Sharad D. Dalvi (India)
122-129
19.
Green Advertising A Corporate Communication approach towards Sustainable Future Dr. Meera Mathur & Jyoti Jain (India)
130-134
20. Inflation Nature and Causes of Food Inflation

Prof. Hamdani Rizwana (India)
135-138
21. Womens Empowerment Programmes: A Review of Literature

Miss Chandan Medatwal (India)
139-147
22. A Comparative Study of NPA of New Private Banks & Old Private Sector Banks Dr. Tanmaya Kumar Pradhan (India)
148-152
International Refereed Research Journal www.researchersworld.com Vol. IV, Issue1(2) January 2013
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SUCCESSION PLANNING AND LEADERSHIP DEVELOPMENT IN SOFTWARE ORGANIZATIONS

(With reference to select leading Information Technology companies in Bangalore)
A.H.Masthan Ali, Project Leader, BAeHAL Software Ltd, HAL Estate, Airport Lane, Bangalore, India
ABSTRACT
Dr. P.Premchand Babu, Professor MBA, S.K.Inst. of Management, S.K.University, Anantapur, A.P, India
Software Organizations often fail to utilize lower level and middle level personnel effectively for leadership development and succession planning systems, and many execute these critical practices through separate human resource functions that shift the responsibility for leadership development away from line managers. The purpose of this article is to present a best practices for optimal development of the leadership pipeline and a series of practical recommendations for software organizations. Keywords: Leadership, Management development, Succession planning, Leadership development, Best practice
International Refereed Research Journal www.researchersworld.com Vol.IV,Issue1(2),January 2013[1]
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INTRODUCTION:
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Software Organizations of all sizes are currently facing leadership development challenges that often rob high-potential managers of critical on-the-job experiences, depleted resources for employee development, and a rapidly aging workforce that may create shortfalls of experienced managerial talent for senior leadership positions (Rothwell, 2002). The widespread flattening of organizational structures and significant changes in work arrangements force executives and management development professionals to rethink how high potential managers attain the requisite developmental experiences for senior leadership. In addition, a recent Journal of management Development article (Kilian et al., 2005) articulated the specific career advancement challenges that women and people of color often face in corporate environments, including a lack of mentors and personal networks, stereotyping, and a lack of visible and/or challenging assignments. However, research evidence suggests that many highly successful companies overcome these and other challenges by marrying the leadership development and succession planning processes for optimal identification, development, and placement of leadership talent (Conger and Fulmer, 2003). Eli Lilly, Dow Chemical, Bank of America, and Sonoco Products are examples of firms that avoid the near-sighted replacement approach to succession planning and adopt a long-term perspective for developing and managing talent throughout their organizations. Indeed, Kur and Bunnings (2002) recent review of succession planning and leadership development practices argued that corporate leadership development can no longer simply rely on planning the replacement of existing leaders (p. 761) and that organizations must focus on developing the leadership function rather than individual leaders. Unfortunately, many software organizations confuse effective talent management with replacement planning, which is focused narrowly on identifying specific back-up candidates for given senior management positions and essentially functions as a forecast (Kesler, 2002). Conversely, highly successful organizations focus on creating a comprehensive set of assessment and development practices that support the entire pipeline of talent across the organization (Charan et al., 2001). There is also growing evidence that software organizations are increasingly engaging managerial personnel in the leadership development process, and that managers add unique value to building the leadership pipeline beyond that of management development specialists, consultants, academics, or other professionals (Tichy, 2004; Allio, 2003). The most prominent example of this approach is General Electrics (GE) John F. Welch Leadership Center at Crotonville, a comprehensive development program in which executives and managers at all levels are largely responsible for teaching the curriculum and delivering a range of leadership development activities (Tichy, 1989). Each year several thousand GE managerial employees attend leadership development programs primarily taught by corporate officers, business unit CEOs and other senior executives, and early-career managers. In addition to conducting workshops on key GE strategic challenges, executives facilitate action-learning projects in which participants return to their organization with aggressive agendas for change. PURPOSE OF THE STUDY: The purpose of this article is to better understand how software organizations effectively hitch leadership development and succession planning systems while fully engaging managerial employees in the process. The exemplary talent management approaches by leading companies suggest that the field of management development stands much to gain by a clearer understanding of how leadership development and succession planning are effectively integrated, and the roles that managers and management development professionals perform in such a process. LITERATURE REVIEW: Over the last two decades, the software industry has evolved causing senior-level professionals to have a greater share of knowledge and experience. The consequence of this one-sided shift of knowledge to senior level professionals is that the knowledge can rapidly disappear when the senior level professionals decide to leave the company. (Bill Kaplan, Leveraging Our Critical Knowledge, Defense AT&L, p. 11, January-February 2008). In the 2009 edition of their book, Execution: The Discipline of Getting Things Done, Larry Bossidy and Ram Charan make a case that one of the most important parts of an executive job is to pass the knowledge he has acquired over the years to the next generation of leaders. Its how an executive gets results today and
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leave a legacy that the executive can take pride in when he moves on (Bossidy, 2009, p.74). It further discusses the importance of developing the leadership pipeline through continuous improvement, succession depth, and reducing retention risk, and a leadership assessment matrix to identify those who are ready for a bigger role vs. those who need to be replaced (Bossidy, 2009, p.150). In Succession PlanningKey to Corporate Excellence, Arthur X. Deegan II notes that the specific purpose of succession planning is to provide an organized approach for the most effective identification and utilization of the organizations management resources (Deegan, 1986, p.7). In the Sixth edition of the book Leadership Research Findings, Practice, and Skills, Andrew J. Dubrin notes that in a well-managed organization, replacements for executives who quit, retire, or are dismissed are chosen through leadership succession, an orderly process of identifying and grooming people to replace managers (Leadership, 2010, p. 461). With predictions ranging from one-third to one-half of todays employees who may resign and retire in the next five years, succession planning is a means to address what has recently been termed the crisis in human capital. Viewing employees as human capital means seeing them as assets or investments to be valued and managed, rather than human resources that are consumed with the goal of minimizing costs. Once an organizations employees are viewed as human capital, their value is recognized as critical to the organizations success and even viability (GSA, Succession Planning Guide, Summer 2001, p. S3). The basis for dealing successfully with staffing surprises is succession planning. When a sudden loss of a manager occurs, the void is a serious problem (Beverly Behan, Lessons from BofA: Avoiding a Succession Debacle, Business Week, Oct. 6, 2009). In the 13th edition of Human Resource Management, Robert L. Mathis notes that succession planning must include a well-designed employee development system to reach its potential. Succession planning is the process of identifying a plan for the orderly replacement of key employees (Mathis, p. 288). LEADERSHIP DEVELOPMENT: The best practices of leadership development are Formal Development Programs 360 feedback Executive Coaching Job Assignments Mentoring Networking Reflection Action Learning Outdoor challenges
FORMAL DEVELOPMENT PROGRAMS: The backbone of most leadership development systems is the formal program. At minimum, a formal program consists of a classroom seminar covering basic theories and principles of leadership. The classroom is the most frequent delivery method with approximately 85 percent of companies using this venue to engage in leadership development (ASTD, 1995). Most best practice programs go beyond this traditional classroom format to include any or all of the following: structured reflection, 360-degree assessment and feedback, coaching, action learning, and outdoor challenge. The formal program serves as a shell under which a variety of practices can be introduced to address the desired training objectives. Formal programs typically last several days (three to five is usual) and tend to be delivered in an off-site location. Given the expense of tailored program development, many organizations instead opt for openenrollment programs offered by private organizations such as the Center for Creative Leadership, or through the executive education programs at major colleges and universities. To develop the next generation of leaders, a program must be based on a curriculum customized to that companys special needs (or so goes the logic). Custom program are often viewed as investments, and are leveraged to provide value-added by linking the program content with company-specific business imperatives. Custom programs may be designed and delivered in house, or developed in conjunction with an external partner such as a university
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or a consulting firm. Programs tend to be favorably received if delivered by local heroes (i.e., those members of the organization who are widely known and admired for their leadership skills). The message is seen as especially relevant if delivered by someone inside the company with a world-class reputation for success, as compared with an external person (often a business school professor). This approach is epitomized at PepsiCo, where Chairman and CEO Roger Enrico spends more than 100 days a year personally conducting workshops for senior executives. PepsiCos Building the Business program is modeled on Enricos personal leadership philosophy. It heavily emphasizes feedback and personal coaching for the nine participants included in each workshop. At Federal Express (FedEx), CEO Ted Weise spends two to three hours with participants in every supervisory leadership course. He discusses the companys strategic objectives, his definition of leadership, and how important front-line people are to the success of FedEx and its basic philosophy of People-ServiceProfit (PSP). CEO Jack Welch (GE), as well as the Chief Financial Officer and Chief Human Resources Officer, attend every Change Acceleration Process course given at their Crotonville, NY campus. Pepsi, FedEx, and GE are exceptions in having CEOs personally conduct aspects of a leadership development program. More often, the internal instructors are high potential managers (working with internal training specialists) who are recruited and groomed to share their insights with others in the organization. FedEx also uses what they call Management Preceptors to teach their courses. These are senior managers and managing directors who are recognized as outstanding leaders and are nominated by a vice president. Preceptors undergo intensive training, primarily in the areas of teaching and facilitation prior to entering the classroom. They serve a term limited to 24-30 months, which provides for a continual rotation of new instructors and introduces fresh viewpoints and ideas into the curriculum. 360-DEGREE FEEDBACK: 360-degree feedback, multi-source feedback, and multi-rater feedback are all terms used to describe this method of systematically collecting perceptions of a managers performance from different viewpoints. Rating sources typically include peers, direct reports, supervisors, and multiple stakeholders outside the organization (e.g., customers and suppliers). An advantage of such intense, comprehensive scrutiny is that a more complete and accurate picture of an individuals performance is obtained. An advantage of the multi-source approach is that it compensates for differences in opportunities to observe various aspects of an individuals performance. Research findings corroborate these assumptions in showing that ratings across sources correlate only moderately. Rather than being a problem, this suggests that performance is different with various constituents, and that 360-degree ratings are needed to capture this variety of behavior and perspective. 360-degree feedback is gaining in popularity, with some authors suggesting that practically all of the Fortune 500 companies currently using some form of the practice (Hughes, Ginnett, & Curphy, 1999, p. 267). The gaining popularity of this approach may have to do with its effectiveness for development, its initial ease of implementation. 360-degree feedback is a developmental tool that can be used to build leadership as well as help with employee retention. There are several decision points that often dictate the ultimate success of 360-degree feedback, including choosing a sound instrument; collecting the data and the related issues of rater selection and preparation; enhancing acceptance of the feedback; and creating a development plan for behavioral change (Chappelow, 1998). EXECUTIVE COACHING: Coaching is used to improve individual performance, enhance a career, or work through organizational issues such as change initiatives. It tends to be a relatively short-term activity aimed at improving specific leadership competencies or solving specific problems. The content of the coaching began with the issue of conflict management, but was allowed to diverge over the sessions to address any individual need. Providing a coach to an entire executive group has the advantage of having all recipients on equal footing. Coaching is not a secret neither a stigma nor perceived source of favoritism when everyone has a coach. However, coaching an entire team can sometimes be a charade for getting one particular executive help without appearing to single him or her out. This strategy is almost always transparent to the team, and can create more ill-will than if coaching is focused on the one individual who truly needs it.
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JOB ASSIGNMENTS:
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Job assignments are helpful to managers in learning about building teams, how to be better strategic thinkers, and how to gain valuable persuasion and influence skills. An example is the Coca-Cola Company, which transferred more than 300 professional and managerial staff to new countries in one year under its leadership development program. Gillette International makes 12- to 36-month assignments to take U.S. managers overseas to get broader experience and exposure to other countries and operational areas before returning to a U.S. assignment, usually of greater authority (Laabs, 1991). However, Paul Bossidy, the CEO of Allied Signal, points out that the most fascinating assignment in the world may not teach much unless the boss allows an employee the latitude to try out different leadership approaches as part of the developmental assignment. General observations regarding the developmental nature of job assignments have been learned from practice as well as from research. The message from industry is clear: There are things organizations can do to promote learning from experience and there are things that can impede it. Some types of jobs are more developmental than others, and different kinds of developmental assignments are associated with different kinds of learning (McCauley & Brutus, 1998). Jobs that are more developmental include stretch assignments that put a manager in a new situation with unfamiliar responsibilities especially highresponsibility and high-latitude jobs. Those projects requiring a manager to bring about change or build relationships also tend to be associated with the most significant learning. As mentioned previously, research suggests that negative experiences or hardships tend to promote learning and trigger self-reflection. MENTORING PROGRAMS: Another type of on-the-job developmental experience is that associated with formal developmental relationships. Formal mentorships differ from the informal kind in that the former are assigned, maintained, and monitored by the organization. But as Yotaro Kobayashi (Chairman of Fuji Xerox) observes, mentoring relationships whether they be formal or informal develop from a mix of chance and intent. Most commonly, formal mentoring programs pair a junior manager with a more senior manager, although the pairing can occur with a peer or an external consultant (Douglas, 1997). In latter cases, however, the line between mentoring and coaching becomes blurred. McKinsey & Company provides a concrete example of how mentoring is used to develop employees. Consultants work on teams of mixed rank, and senior people are expected to help junior people. Although many of these relationships are of an informal nature because the organization does not make an explicit pairing, part of the process is formal because mentoring is an important criterion in partners appraisals. According to McKinsey senior partner Joel Bleeke, When mentoring for leadership, you need to convey much more than problemsolving skills and a personal network you need to convey aspirations, instill values, excitement, a view that almost anything is possible. You need to instill positive energy (Sherman, 1995, p. 100). NETWORKS: As a way of breaking down functional silos, some organizations include development activities aimed at fostering broader individual networks. An important goal of networking initiatives is to develop leaders beyond merely knowing what and knowing how, to knowing who in terms of problem-solving resources. Another type of networking involves the interaction of groups of managers and executives who have common training or job experiences. These groups meet regularly over lunches or through electronic dialogue to share their mutual challenges and opportunities, with a goal of applying their learning on an informal, ongoing basis. Enhancing individual networks is believed to be an effective way to increase managers innovation and problem-solving capacities. Working in a globally dispersed yet technologically sophisticated organization presents numerous challenges (and creative opportunities) with regard to networking. The telecommunications giant, Nortel, uses its advanced video and data-networking technologies to air a Virtual Leadership Academy once a month. The show is simulcast in offices in 47 countries, with simultaneous translation from English into Spanish and Portuguese. Although the technology does not facilitate personal face-to-face networking between participants, managers can call with questions or concerns and get real-time responses. The program is geared to reinforce a core Nortel value that technology is about elevating, not replacing, human interaction (Global Reach, Virtual Leadership, 1999, p. 80.).
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REFLECTION:
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Introspection and reflection are types of personal growth training for leadership development that are used to uncover peoples hidden goals, talents, and values, and how they are enacted at work (Conger, 1993). The relevance of reflection to leadership development is twofold. Reflection can enhance a better understanding of who you are. In a more academic vein, the action-observation-reflection model (Kolb, 1983) is based on the assumption that people learn more from their experiences when they spend time thinking about them. These activities include journal writing, small-group discussions, and individual sharing with a learning partner. Successful reflection activities are tied to continuous learning. However, not all organizations value reflection and introspection. For example, Proctor & Gamble dropped those programs that relied on personal reflection from their leadership development practices portfolio. Their analysis suggested insufficient evidence of a direct link between individual reflection and better business outcomes. ACTION LEARNING: Numerous organizations have begun to realize that the type of traditional, lecture-based, classroom training found in most formal leadership development programs is ineffective at preparing leaders for 21st century problems (Dotlich & Noel, 1998). In particular, the lessons learned from traditional classroom development programs do not last much beyond the end of the program. Soon after the course ends, people slip back into their old ways of leading, and little developmental progress is achieved. The sponsors of traditional programs became justifiably frustrated. For these reasons, a number of organizations have embraced the action learning process, which is as a continuous process of learning and reflection, supported by colleagues, with an emphasis on getting things done. A key advantage of action learning is that it is problem- or project-based. Action learning ties individual development to the process of helping organizations respond to major business problems. As such, action learning advances both the agenda of the organization as well as the development of its leaders. Perhaps the most well-known of the industry action learning initiatives is GEs Work-Out program. Welch picked up on the multiple meanings of the work-out term (also in reference to fitness making a flabby organization lean) and chose it for his culture transformation effort beginning in 1989 (Vicere & Fulmer, 1997, p. 289). A key cultural aspect of Work-Out is its link to a core management value at GE: empowered or boundaryless behavior. GE leaders must have the self-confidence to involve others and behave in a boundaryless fashion to be open to ideas from anywhere. Although there are a number of critical roles in Work-Out, a key to implementation success is the champion. Somebody has to own the idea and make it happen. There is nothing new about having groups of people come up with ideas and propose them to management (e.g., Quality Circles). The only new feature in GEs program was the idea of a champion somebody in the group who owns the idea and has to make it happen. The champion is the person who frames the central issue of the Work-Out session, clarifies the specific topics to address, and selects the participants for the Work-Out team. Selection of participants is particularly important. Because action learning projects are tied to a business imperative, there should be a careful matching of individuals to the core problem at hand. Not every developmental need can be addressed in every problem context. Many of the GE action learning projects focused on sending managers to foreign countries as a way of accomplishing two goals: (a) figuring out how to expand globally and open new markets for GE products, and (b) developing a managers capability to lead in different cultures. OUTDOOR CHALLENGES: The outdoor challenge, also known as wilderness training, is another popular means of developing teamwork and team-based leadership skills. Such programs might be seen as the opposite of reflection, because outdoor challenges are action-based. However, many of the programs also include structured reflection as a valuable component to learning. The origins of outdoor leadership development programs can be traced to Outward Bound (Conger, 1993). In the 1960s and 1970s Outward Bound programs served adolescent youth who sought out outdoor challenges as part of a rite of passage into adulthood. As the baby-boomer generation aged, this market shrank to the point that Outward Bound needed to expand into providing programs to adults and businesses. In addition to building teamwork and leadership skills, outdoor challenges also encourage participants to overcome risk-taking fears. Outdoor adventure activities can include whitewater rafting, rappelling, and even mountain climbing (Long, 1987; McClenahen, 1990).
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BEST PRACTICE ORGANIZATIONS: GENERAL ELECTRIC: The corporate motto GE: We Brings Good Things to Life is evident in its products and practices. GE was named as Americas Most Admired Company in 1998 and 1999 by Fortune magazine (Brown, 1999; Stewart, 1998), in addition to being named as the Worlds Most Admired Company (Kahn, 1998). GEs success is not attributable to any single factor that differentiates it from the also-rans. However, one factor that is widely acknowledged as very important to GEs unparalleled success in the 1990s is leadership. In terms of fostering a positive culture for leadership, there is little denying that GE is in a class of its own. This can be seen starting at the top with CEO Jack Welch, who has served in the top role since 1980. In the period from 1993-1996, Welch received the honor of most respected CEO four times by Industry Week magazines survey of fellow chief executive officers. He lost out to Bill Gates by one vote in 1995. Contrary to the recent accolades, early in his tenure at the helm of GE, Welch was labeled Neutron Jack by the business press because of the severe employee reductions he mandated. At one point in the early 1980s, he had reduced employee numbers at GE by more than 100,000. He was regarded as a neutron bomb destroying people but supposedly leaving the structures intact. One thing that is very evident about Welch, however, is that he hates bureaucracy. Despite the nickname, he definitely did not leave the structures intact. In fact, he changed the structure of GE drastically in his vision of boundarylessness. According to GE, boundaryless behavior is defined as business behavior that tramples or demolishes all barriers of rank, function, geography, and bureaucracy in an endless pursuit of the best idea in the cause of engaging and involving every mind in the company. The previously described Workout program is an effort to achieve boundaryless behavior through a combination of culture change, leadership development, and action learning projects. This exemplifies leadership development that is tied to a core organizational value. MOTOROLA: A distinctive feature of Motorolas approach to leadership development is the Motorola University. Originally called the Motorola Training and Education Center (MTEC), it was founded in 1980 with an original investment of $40 million. This investment was made despite financial hardships created by a deep recession that year. The original mission of MTEC was to design and deliver training services that support Motorolas business objectives. Since 1990, Motorola University has diversified its mission by establishing partnerships with institutions around the world. It is now considered to be the strategic learning arm of the corporation, complementing the training that takes place in Motorolas business groups. Also in 1990, Motorola University partnered with ABB, Digital Equipment, Eastman Kodak, and IBM to accelerate the development of Six Sigma Quality and to transfer this knowledge in the most effective manner. Much of the Universitys development efforts are directed at helping managers become catalysts for change and continuous improvement in support of the corporations business objectives. Six Sigma had such a profound impact on Motorola that it attracted the attention of luminaries such as General Electrics Jack Welch. For years, Welch claimed that there was only one person in the country who hated quality more than him, and that was Larry Bossidy (who left GE to become CEO of AlliedSignal). They misjudged the quality movement as nothing more that a bunch of slogans. However, once Bossidy and then Welch found out what was behind Six Sigma and the results that it helped achieve, both became converts. GE adopted Six Sigma in 1995, and Welch claims that in 1999 alone it will provide for a profit gain of $1.2 billion (The Jack and Herb Show, 1999, p. 166). Motorola claims that the Six Sigma initiative was responsible for reducing the number of defects in its products from 4 to 5.5 sigma, yielding $2.2 billion in savings. Besides the Six Sigma initiative, Motorola has other important leadership development initiatives. The company spends more than $150 million annually on corporate education and development. At present, Motorola requires a minimum of 40 hours a year on job-relevant training and education for every employee. The leadership curriculum at Motorola varies by level (supervisors, first-time managers, executives), but each leadership development program uses the same general framework with different curricula (Whitmire & Nienstedt, 1991). Much of the program content for lower level managers is based on Hersey and Blanchards Situational Leadership Theory. At the senior executive level, Motorola offers the Vice President Institute (VPI) to foster leadership development in new vice presidents. The biggest issue that the VPI addresses is how to sustain growth in a
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corporation that already grows by more than 15% annually. The overall goals in establishing VPI were to teach about the companys unique heritage as a second-generation, family-owned business. VPI was also designed to help the vice presidents explore ways to invent new technologies and new businesses (not just new products), with a focus on innovation, globalization, and communications. As such, leadership development is tied directly to a key business imperative. Another important aspect of the continued success of Motorolas leadership development system is the active involvement of those at the top of the Motorola hierarchy. The corporations chairman, Bob Galvin as well as many of the rest of the senior team members attends development programs. Some of the top leaders, including Galvin, serve as instructors and facilitators at executive development programs. Top-level leaders also serve on the advisory board for Motorola University and on the corporate policy committee that determines the level of funding for development. This type of high-level support is critical to the success of systemic leadership development in any company. PEPSICO: Chairman and CEO Roger Enrico is personally committed to leadership development in both spirit and action. Even as the top honcho of a $22 billion corporation with over 150,000 employees, Enrico spends more than 100 days a year personally conducting leadership workshops for senior executives. A number of other leadership development programs involve top-level executives as guest speakers. However, Pepsis Building the Business program is different in that Enrico is the full-time lead instructor, supported by several other executive teachers. Pepsis central program philosophy is simple but powerful: The most important responsibility of a leader is to personally develop other leaders. This is especially important in an organization in which 86 percent of executive vacancies are filled from within. Program participants are carefully selected, and only nine executives attend the program at any one time. This allows Enrico to formally mentor a number of high potential managers simultaneously. The participants are those who are expected to be the future generation of top management. Enrico uses his time with program participants to help socialize key leadership values and to share his perspectives and personal philosophies of management and leadership. Enrico distinguishes between running the business, which is the role of management, and building the business, which is the role of leadership. Those at the top need to do both, he argues, but also need to distinguish between these key roles. There is a parallel between Pepsis and Motorolas leadership philosophies of placing the responsibility of continued business growth on the heads of the companys anointed future top leaders. FEDERAL EXPRESS (FEDEX): The guiding philosophy at FedEx is that when people are prioritized first, they will provide the highest possible service, and profits will follow (People-Service-Profits, or PSP). Leaders at all levels are expected to nurture a people-first culture at FedEx. Distinctive features of the FedEx approach include comprehensive, system-wide leadership development initiatives that socialize managers to the PSP philosophy, and process that link selection with development. An integral piece to effective leadership development at FedEx is the Leadership Institute. The Institute was founded in 1984 when several senior-level managers concluded that the organization was effective at preparing people for traditional management functions, but fell short in preparing them for leadership. The mission of the Leadership Institute has evolved to focus on developing leaders throughout FedEx by applying principles of successful leadership. Some of these principles are based on well-known models such as Hersey and Blanchards Situational Leadership Theory and Greenleafs servant leadership model. These two theories are used as foundations in a number of other leadership development programs in other organizations. A somewhat unusual theoretical underpinning is FedExs use of the transformational leadership model most recently advanced by Bernard Bass (1985). Transformational leaders are thought to arouse higher-order needs in followers, and motivate performance beyond expectations. The FedEx version of transformational leadership is based on three specific behavioral dimensions: charisma, individualized consideration, and intellectual stimulation. These dimensions are combined with six other leadership competencies: courage, dependability, flexibility, integrity, judgment, and respect for others. Together these nine dimensions form the backbone of the Leadership Evaluation and Awareness Process (LEAP).
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LEAP is a thorough individual evaluation process that links leader selection with development. Before being given the opportunity to apply for managerial positions, a candidate must have demonstrated excellence along all nine of the LEAP competencies. JOHNSON & JOHNSON: In addition to a shared commitment to leadership development, J&J is also similar to GE in being listed as one of Americas most admired companies in 1998, and one of the top-twenty most admired companies worldwide. It is also one of the 10 Best companies for working mothers as chosen by Working Mother Magazine. A major reason for these accolades is the J&J Credo. Credo is a one-page document written originally by General Robert Wood Johnson in 1943 outlining the corporations responsibility to customers, employees, the community, and stockholders. Johnson saw to it that the Credo was internalized by the company, and urged J&J managers to apply it as part of their everyday business philosophy. The Credo was, and still is, seen as visionary in terms of putting customers first and stockholders last, and for promoting the concept of fair return rather than maximum profitability. RESEARCH METHODOLOGY: RESEARCH DESIGN: The type of research that is adopted in this study is Descriptive in nature. Descriptive research is also called Statistical Research. The main goal of this type of research is to describe the data and characteristics about what is being studied. The idea behind this type of research is to study frequencies, averages, and other statistical calculations. Descriptive research is mainly done when a researcher wants to gain a better understanding of a topic. It is quantitative and uses surveys and panels and also the use of probability sampling. Descriptive research is the exploration of the existing certain phenomena. The details of the facts wont be known. The existing phenomena, the persons do not know facts. So the present study undertaken by the researcher is descriptive in nature. The research is initiated with the notion of understanding the succession planning process in IT companies and its impact on organizational performance. DATA SOURCES AND COLLECTION: After identifying and defining the problem and the specific information required to solve the problem, the next step is to look for the type and source of data, which will yield the desired result. There are mainly two types of data that a researcher can collect, they are primary and secondary data. The Primary data are collected through the Questionnaire by survey method. SAMPLING: SAMPLING UNIT: Select leading IT companies in Bangalore (Assocham). The companies selected are like, 1 Tata Consultancy Services Ltd. 2 Infosys Technologies Ltd. 3 Wipro Technologies Ltd. 4 Mahindra Satyam. 5 HCL Technologies Ltd. SAMPLE SIZE AND POPULATION: Population size is only likely to be a factor when the researchers work with a relatively small and known group of people (e.g., the members of an association). Here the population size is 9,900 employees forming part of select leading five IT companies in Bangalore as shown in Table 1.
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Table 1: Strength of Employees in select IT companies Company Name No. of Employees Tata Consultancy Services Ltd 2002 Infosys Technologies Ltd 1993 Wipro Technologies Ltd 1980 Mahindra Satyam 1972 HCL Technologies Ltd 1953 TOTAL 9,900 Source: Through HR Managers of select IT companies The employees are classified based on their designation as shown in Table 2. Sample size is determined by taking 5% of total population size. The total sample size has come to 495 software professionals. These employees are taken on the basis of simple random sampling method. Table 2 Classification of Employees based on designation Designation Software Engineers Senior Software Engineers Project Leaders Project Managers Total Source: Through survey questionnaire. SAMPLING TECHNIQUE: The sampling technique used for this research is simple random sampling. In a simple random sample of a given size, all such subsets of the frame are given an equal probability. Each element of the frame thus has an equal probability of selection: the frame is not subdivided or partitioned. Furthermore, any given pair of elements has the same chance of selection as any other such pair. This minimises bias and simplifies analysis of results. In particular, the variance between individual results within the sample is a good indicator of variance in the overall population, which makes it relatively easy to estimate the accuracy of results. SAMPLING METHOD: The sampling technique used for this research is simple random sampling. In a simple random sample of a given size, all such subsets of the frame are given an equal probability. Each element of the frame thus has an equal probability of selection: the frame is not subdivided or partitioned. Furthermore, any given pair of elements has the same chance of selection as any other such pair. This minimises bias and simplifies analysis of results. In particular, the variance between individual results within the sample is a good indicator of variance in the overall population, which makes it relatively easy to estimate the accuracy of results. LIMITATIONS OF THE RESEARCH: 1. The study is restricted to the select leading information technology companies in Bangalore city only. 2. The time and cost is one of the major constraints in restricting the sample size is 495 respondents who are working in the information technology companies in Bangalore. 3. Utmost care is taken to arrive at the authenticity of the data gathered in spite of that the research shall have its own bias of answers for the queries raised. 4. The respondents are not willing to reveal their name and organization where they observed confidentiality for the research purpose. SUGGESTIONS: TOP MANAGEMENT PARTICIPATION AND SUPPORT: Sl.No 1. 2 3 4 No. of Employees 5800 1540 1500 1060 9900 Sampling 290 77 75 53 495 Sl.No 1. 2 3 4 5
Top Management should hold responsibility for establishing succession policy for developing future leaders
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Allocate sufficient resources & management attention to sustain the program To successfully implement the process, plans for implementation will need to be dispersed to all program
executives within the organization. There should be regular reviews to evaluate the succession planning practices. NEED DRIVEN ASSESSMENT:
A need driven assessment to be carried out, for positions where succession plan is identified. This list of
positions should be referenced and specifically addressed when implementing succession plan. Create a competency matrix Interacting with HR department on competencies is necessary. Identify the high fliers in the organization Be more systematic in selection Reinvent exit interviews as a tool for succession planning
TRAINING:
Organizations currently provide employees with the opportunity for professional development through
training and job shadowing/rotation for some positions; however, the organization should ensure that this opportunity is implemented for all positions identified through the need driven assessment. OTHER FORMAL PROFESSIONAL DEVELOPMENT OPPORTUNITIES:
Encourage leadership development through varied job assignments, education / training & selfdevelopment.
Encourage senior level feedback. Focus on action learning. Establish an effective knowledge management system. Career planning workshops need to be organized across all organizations Career counseling should be given priority Employees in respondent organizations are currently able to express their career goals with management
through the employee evaluation process. Employees are also encouraged to make training choices, as current training opportunities are emailed to all employees when available. To further enhance focus on individual attention in succession planning, management should be more proactive in communicating with employees on their career goals when determining criteria for the annual employee performance evaluation process. DEDICATED RESPONSIBILITY:
Each organization should identify a single employee who will be responsible for monitoring and
evaluating succession planning at the agency. Additionally, an employee will be designated from each program area as a liaison who will monitor succession planning within their program area, and report findings on a regular basis to the organizations succession planning coordinator. There should be dedicated funds set apart for the same. EXTENDS TO ALL LEVELS OF THE ORGANIZATION:
The directors should design detailed criteria for successors at senior level. For the middle & lower level,
the managers can spend a few hours building a talent profile for each direct report. Definition & articulation of steps the employees in the lower grades to develop their competencies. The succession plan should be communicated throughout the organization. Currently organizations are practicing succession planning at the senior level, but for the plan to truly be successful, it must be organized at middle & lower levels, which will ensure accountability for participation.
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EMPLOYEE VALUES AND ATTITUDES:
Create a culture for effective succession planning and leadership development. Increasing diversity as a part of their strategic plan. To boost the morale of employees, ensure that succession planning initiatives are included as one of the
attributes in performance appraisal, which in turn is linked to the variable pay. OTHER ASPECTS:
It should be made a part of the Strategic and Workforce Plan Ensure employee names are not listed on succession planning documentation; only position titles should be used. Write a policy & practices to guide the program Use web based products, which facilitates the collection, organization & use of succession planning information. Benchmark SP & management practices in other organizations.
Add disclaimers to all succession planning documentation stating that the plan is not a guarantee of promotion, but simply a framework. CONCLUSION: It is clear that organizations of all sizes and industries face incredible challenges in preparing managerial personnel to assume future leadership positions. The specific practices that organizations and management development professionals must execute to effectively build their leadership pipeline are summarized below: Develop the organizations mentor network by fully engaging all managers in mentoring relationships with direct reports and high potential employees in other work units; Ensure active manager participation in the organizations method of identifying and codifying high potential employees; Fully engage managers at all levels in leadership development activities, including teaching courses and creating projected-based learning experiences (e.g. stretch assignments and action-learning projects) for high potentials; Ensure a flexible and fluid succession planning process by avoiding heir apparent designations, frequently updating lists of high potentials based on project-based performance, and basing succession decisions on a diverse pool of candidates; Create organization-wide forums (e.g. leadership academy) for exposing high potentials to multiple stakeholders, including senior executives and board members; Establish a supportive organizational culture through active CEO and senior management participation in development programs and performance appraisal and reward systems that reinforce managerial engagement; and Evaluate the effectiveness of leadership development practices through empirical studies that model program theory and assess knowledge, behavior, and results outcomes. REFERENCES: [1] Rothwell, W.J. 2005, Effective Succession Planning: Ensuring Leadership Continuity and Building Talent from Within, 3rd ed., New York: AMACOM. [2] Lambert, H. 2005, Succession planning, [online at: www.hayspersonnel.com, accessed September 2, 2007). [3] Roberts, B. 2002, Matching Talent With Tasks, HR Magazine, Vol.47. [4] Day, David V and Halpin, Stanley M. 2001, Leadership Development- A Review of Industry Best Practices. [5] Neetha Mary Avanesh, January 2011 A Study on Succession Planning & Its Impact On Organizational Performance In IT Sector, Journal of Arts Science & Commerce, Vol. II, Issue 1. ----
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STATISTICAL REVIEW OF THE PROBLEM OF CRIME AGAINST WOMEN IN INDIA
Dr. B. D. Karhad, Vice-Principal, Chintamanrao College of Commerce, Sangli, India
ABSTRACT Crime is a dark side of human society and an authentic data on different aspects of crimes and criminals is required to analyse the trends and patterns so that effective control measures can be taken to prevent, reduce and eliminate the crimes. This research paper deals with the nature, trends, causes, and suggestions on the crimes against women in India. The study is based on the secondary data collected from reports published by NCRB, websites, Journals, and books. Nature of crimes against women includes rape, kidnapping and abduction, homicide for dowry, torture, molestation, sexual harassment, and the importation of girls. Inferior status of woman in a male dominated society, lack of education, lack of education and guidance, loopholes in existing laws, are the major reasons for increase in crime against women. The statistical review of the data published by NCRB show that crimes against women are increasing day by day. Suggestions offered by the researcher include provisions of financial assistance; rehabilitation of traffic woman victims; change of social norms governing marriage, education, and jobs; inclusion of woman in administrative and legal system; physical training; recreation facilities; institutional support for counseling and occupational training; provision of free of cost medical treatment; and change in religious, social, cultural, attitudinal norms about women, to control the problem. Keywords: Crime against Women, Rape, Dowry, Harassment, Society, Legal System
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Crime is a wrong act done intentionally. It is dangerous to the individual and the society. Generally, it involves the violation of social law, moral law and countrys law. Its objective is to cause harm or injury to other. Violence against women is a technical term used to collectively refer to violent acts that are primarily or exclusively committed against women. Similar to a hate crime, this type of violence targets a specific group with the victim's gender as a primary motive. MEANING AND DEFINITIONS: Definitions of the terms crime and women are given as under1. Crime: According to Paul Tappan Crime is an intentional act or omission or violation of criminal law, committed without defence or justification. Mowrer has defined crime as an anti social act. The Oxford English Dictionary defines it as an action which constitutes a serious offence against an individual or the State and is punishable by law. 2. Woman: A woman is a female human. The term woman is usually reserved for an adult, with the term girl being the usual term for a female child or adolescent. However, the term woman is also sometimes used to identify a female human, regardless of age, as in phrases such as "Women's rights". Unlike men, women are typically capable of giving birth. OBJECTIVES: Major objectives of the study are1. To study the existing laws in India relating to crimes against women. 2. To study the present problem of crimes against women in India. 3. To discuss the main causes of increase or decrease of crimes against women in India. 4. To suggest measures to combat crime against women in India. METHODOLOGY: The study is based on the secondary data collected from crime reports published by National Crime Records Bureau, Government of India, internet, Journals, and Books etc. HYPOTHESIS: Crimes against women in India have been increased in 2011 over the previous year. SCOPE OF THE STUDY: The present study deals with the nature, trends, causes, discussion and suggestions on the crimes against women in India. It also includes the study of existing laws, its use in controlling such crimes. NATURE OF PROBLEM: 1. The National Crime Records Bureau (NCRB) is collecting and publishing data about the head wise crimes against women and its trend. According to its prediction the growth rate of crimes against women would be higher than the population growth rate in the near future. At present, women in India are subject to all forms of violence like female infanticide, discrimination within the household, lack of opportunity to work, honor killings, women as property, rape, molestation, etc. 2. The country has failed to convert the constitutional dream of gender equality in reality, even after the continuous painstaking efforts to improve the status of women. 3. Even today, Indian society is male dominated. The issues of women are considered as private and expected to be solved by the male members of the family. What is right and what is wrong for women is decided by the society in general and religion, caste and customs in particular. Any act done against the accepted norms of behaviours is punished by the society, which sometimes amounts to violence. The victims of violence are generally women and her supporters for such acts.
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4. Many studies are conducted by the government and NGOs about crimes against women, its causes and effects. In all such studies, the legal and administrative system of the country is blamed for its inefficiency in controlling crimes against woman in India. The finding of all such studies is just a partial reflection of the extent of crimes happening against women in India as most of the incidents of violence against women are not reported. 5. The United Nations has termed violence against women as a gross violation of human rights. In India, a survey conducted by NGOs showed that for each incidence of domestic violence, which is generally not reported; women lost an average of 7 working days. 6. The problem of violence against women in India is a result of a long standing power imbalance between men and women. CAUSES OF CRIME AGAINST WOMEN IN INDIA: Official statistics published by NCRB show that there has been an increase in the number of reported crimes against women during last year. Following are the causes of crime against women: 1. Situational Cause: In this case the crimes are committed because of a particular situation or chance factor. The victim or offender may or may not be intending to do harm are to assault the women but to take the benefit of the situation such acts are done by the offenders. Many times, it is not possible to find out who seduced or forced whom, for what reason, but in the situations like working women or college girl living alone away from home, women coming alone from their working place or parties at late night, have become victims of this chance theory. In addition to this, conflict over the time and money spending pattern of working woman, or ill treatment to husband may provoke him to assault his wife. Sometimes or man employer found taking advantage of his female employee when she is alone in his office, or when she needs some financial help due to some family problems. 2. Mans Supremacy: Social structure and ideology of male domination, is the major cause of violence against women in India. It is observed that male members always try to force their supremacy over female members of their family. 3. Effect of movies: Scenes like, Kidnapping e.g. Girl child of Gautam Bhosale was kidnapped for protection money (Singham), rape e.g. helpless police officer begging for release of his wife (Rowdy Rathore), Dirty dialogues e.g. Phir to ye apko kuch bhi bana sakte hai (Dabbang), love scenes (Dirty Picture), Western dance e.g. sheela ki jawani (Tees Mar Khan) etc., is spoiling the life of young generation. Some students are found copying of criminal acts or scenes and applying them in real life. 4. Cheap literature: Adult literature is available easily at railway flat form, bus stations, crowed places, and tourist places. This literature is spoiling career of many students, migrated workers, single parents, and creating big force of criminals. 5. Near and dear ones: According to the data released by the National Crime Records Bureau, elsewhere, in 2011, in India, victims of rape are assaulted by someone known to her from before. Of the 24206 victims of the crime in 2011, 22549 knew the rapists. So an astounding 93.1 per cent of victims knew their assaulters. While 7835 of them were neighbors, 1560 relatives too perpetrated the heinous act on their near ones. There were 267 instances where parents raped their own daughters. The 12887 known others obviously include: boyfriends, friends, colleagues, etc. REVIEW OF LITERATURE: Crimes in India (2011), is the informative publication brought out by NCRB. The data for this publication is collected by State Crime Records Bureaux (SCRBx) from the District Crime Records Bureaux (DCRBx) and sent to NCRB at the end of year. Data from mega-cities (cities having population of 10 lakh or more as per the latest census) is also collected separately. The first edition of 'Crime in India' pertains to the year 1953 and the latest edition of the report pertains to the year 2011. The report contains comprehensive information on (i) cases registered and their disposal and (ii) persons arrested and their disposal under major heads of Indian Penal Codes and Special and Local Laws. Further, age-group-wise and sex-wise details of persons arrested under these crime-heads are also available in the report. The report contains a chapter on crime against some vulnerable sections of the society - women, children, Scheduled Castes / Scheduled Tribes.
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INCIDENTS OF CRIME AGAINST WOMEN IN INDIA: According to the details published by the National Crime Records Bureau (NCRB), a total of 2,28,650 incidents of crime against women were reported across the country under various sections of Indian Penal Code (IPC) and special and local laws (SLL) in 2011, as given below. Table 1: Crime Head-wise Incidents of Crime Against Women during 2010 - 2011 and Percentage variation in 2011 over 2010 Sr. No. 1 2 3 4 5 6 7 8 9 10 11 Rape Kidnapping And Abduction Dowry Deaths Cruelty By Husband & Relatives Molestation Sexual Harassment Importation Of Girls Sati Immoral Traffic Indecent Representation Dowry Crime Head Year 2010 2011 22,172 24206 29,795 8,391 94,041 40,613 9,961 36 2,499 895 5,182 35565 8618 99135 42968 8570 80 1 2435 453 6619 % Increase over 2010 9.2% 19.4% 2.7% 5.4% 5.8% -14.0% 122.2% 100.0% -2.6% -49.4% 27.7% 7.1%
213,585 228,650 Source: Crime In India 2011, National Crime Records Bureau (revised) INTERPRETATION:
The total number of incidents of crime against women stood at 2,28,650 in 2011 while the same stood at 2,13,585 in 2010. A head-wise interpretation of the crimes listed in table 1 is as under: 1. Rape: Rape cases have reported an increase of 9.2% over the previous year. The main cause of incidents is the societys construction of female sexuality and its role in social hierarchy. 2. Kidnapping and Abduction: These cases have reported an increase of 19.4% over the previous year. 3. Dowry Death: Dowry deaths have reported an increase of 2.7% over the previous year. The main cause of dowry deaths is the societys concept of a woman as dependent of the male protector, father, husband, son, etc. 4. Cruelty by Husband and Relatives: These cases have reported an increase of 5.4% over the previous year. The main cause of torture is the societys concept of a woman as a property. 5. Molestation: Incidents of molestation in the country have increased by 5.08% over the previous year. 6. Sexual Harassment: The numbers of such incidents in the country have decreased by 14% over the previous year. 7. Importation of Girls: These cases have reported an increase of 122.2% over the previous year. 8. Sati Prevention: No case of sati was registered under the commission of sati prevention act, in the year 2010. Unfortunately, one case of sati is reported during the year 2011. 9. Immoral Traffic: Cases of immoral traffic have registered a decrease of 2.6% during the year as compared to previous year. 10. Indecent Representation of Women: A decrease of 49.4% was noticed in cases relating to Indecent Representation of Women as compared to previous year.
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PROPORTION OF CRIME AGAINST WOMEN (UNDER IPC) TOWARDS TOTAL IPC CRIMES: Table 2: Proportion of crime against women (IPC) towards total IPC crimes Sr. No. 1 2 3 4 5 6 7 8 Year 2003 2004 2005 2006 2007 2008 2009 2010 Total Crimes (IPC) 1716120 1832015 1822602 1878293 1989673 2093379 2121345 2224831 Crime Against Women (IPC) 131364 143615 143523 154158 174921 186617 203804 213585 Percentage 7.6 7.8 7.9 8.2 8.8 8.9 9.2 9.6 9.4
9 2011 2325575 219142 Source: Crime In India 2011, National Crime Records Bureau (revised)
INTERPRETATION: Table 2 shows that there is a sharp increase in crime rate from 7.6% in 2003 to 9.4% in 2011, which is serious matter for safety and security of Indian women. HYPOTHESIS TESTING: An analysis of data given in table1 and table 2 reveals that in most of the cases crimes against women in India are increased in 2011 over the previous year. This proves the hypothesis, therefore accepted. DISCUSSION AND SUGGESTIONS: In India, the rate of crime against women has increased drastically in the last few years. According to reports, crime against women in India is increasing significantly because of the ever-increasing gender gap. Day by day the situation is becoming dangerous. Therefore, significant steps are required to be taken immediately to control it before it worsens further. The steps should include providing following type of help and arrangement. 1. Financial: Unless there is substantial progress on socio-economic empowerment of women, crime against women will not decrease. Therefore, economic empowerment of women should be given priority in all government funded programmes like education, jobs etc. All Grant-in-aid schemes providing assistance for rescue and rehabilitation of trafficked women victims should be upgraded or revised. 2. Social: Due to low education, women in India, particularly, are not considered to be competent enough to participate in decision making thus, decisions are taken by the male members in the woman's life about issues even pertaining to her own life such as, about females work, marriages, major purchases, number of children, and even the decisions regarding female's education. These so called social norms create more difficulties for women. They should be upgraded or changed. Therefore, government should (a) give right, to every woman, to take decisions regarding the work, marriage, property buying, number of children, her education etc. without her written consent, any decision taken in-absentia should not be enforced under any law, (b) change the so called social norms which are creating difficulties in the progress of women in the country, c) give right to abortion to the woman, to save her from domestic violence, (d) check blind traditional and cultural norms which are perceived as a way of living, and (e) re-evaluate the role of men in the family and in society. 3. Administrative: the enforcement of any law in the country depends on the co-operation of various administrative officers working in the system. Therefore, to reduce crime against women, government should (a) ensure wider recruitment of women police officers, (b) sensitization of judiciary and police and civil administration on gender issues, c) sensitizing of police officials charged with the responsibility of
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protecting the women. (d) set up women police cells in police stations and exclusive women police stations, and (e) train police personnel in special laws dealing with atrocities against women Legal: The legal system of the country should be very competent, honest and quick to vigorously enforce the existing legislation relating to crime against women. Therefore the government should (a) take review of the laws relating to crimes against women, from time to time, and makes necessary amendments to improve the present laws, (b) change laws to include punishments like life imprisonment, death etc in the rarest of the rare cases, c) give to the commission for women constitutional status with magisterial powers to deal strictly with the dowry seekers and wife beaters, and (d) set up of family courts for hearing cases of crime against women. Political: Government should support and increase women participation in politics. The government should also provide training necessary for their capacity building on politics. However, the woman should not believe and expect any support from the government. They have to fight for their rights. The reason being "Hundreds of men accused of sexual violence towards women have been allowed to stand in Indian elections in the last five years, including more than 30 charged with rape." (The Guardian, Dec 21, 2012) Physical and recreational: Women should be trained to know karate, use of weapons, for self defense, and government should develop recreational facilities in cities and also in villages like family parks, and other entertaining places where women along with their family can enjoy and relax. Institutional: NGOs are quicker than the government in providing necessary support to the victimized women. Therefore, the government should (a) not hesitate to take support NGOs in helping women in distress (b) take help of NGOs to provide counseling facilities to the married couples (c) set up of help lines for women in distress, and (d) provide shelter, maintenance, counseling, capacity building, occupational training, medical aid and other services to the victims of violence. Medical: At present, particularly in villages, women are more confined to their homes and they are not allowed to go outside, meet any relatives, or even seek any medical help. So far as medical help is concerned, the government should provided all medical treatment free of cost to victims of violence and screen all types of crimes against woman with the help of medical practitioner. Cultural: In all religions, cultural and societal leaders almost comprises completely of men, and they make their decisions on their own regarding the rights of women which have already caused suffering for women not only in terms of domestic violence but, also in terms of social neglect. To change this situation, participation of woman should be allowed in deciding what is right and wrong for the woman in the country. According to ICRW survey It is observed that men acknowledge an overall cultural change happening around gender-based violence, but have not yet internalized this change into their personal behaviors. Therefore, positive change in culture about gender problem, to reduce the crime against women, is solicited. Religious: There are different norms in different religions about the inter-religion, inter-caste, interracial marriages, co-education, live-in-relationship, family planning, Pardah system, pre-marital and post marital sex etc. most of these norms are for putting restrictions for the females. Though the rationale behind it is to provide security to the women, many times it is working against the progress of the women in the country. Attitudinal: Survey conducted by ICRW in India revealed the complex and at times contradictory nature of many Indian mens attitudes about gender equality. In their survey, they found that 65 percent of Indian men surveyed said that they believe there are times that women deserve to be beaten. This attitude needs to be changed. In another survey, The NGOs CORO and Population Council conducted a research and an intervention program called Yaari Dosti in four slums of Mumbai. It is revealed that attitude of the men surveyed is altered to some degree. The men in the study became more sensitive, started helping more at home, and overall became more respectful of women. Even the eve-teasing complaints against the boys decreased. Many of the young men also reported that they became quieter and less aggressive after the program. They said that they had become changed from within. Their selfesteem is increased and their relationship with women is improved. Such programmes should be funded and arranged with the help of NGOs. Educational: The education enables women to be confident in reporting, struggling for their rights and be aware of their surroundings. therefore, the government should (a) start awareness programs both for women
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and other people to prevent domestic violence, (b) implement scheme for awareness generation and advocacy among women, c) organizing legal literacy and legal awareness camps for women, d) providing education to women residing in remote, backward and distant areas of the country, e) and take help of media i.e. television, radio and newspapers to create awareness about the pitfalls of violence against women. 13. Rehabilitation related: Government should arrange counseling; provide necessary assistance for rehabilitation such as re-location, credit support and job opportunity etc to the victims of violence, particularly women. CONCLUSION: Crime against women in India is at an alarming rate. In India women is always subjected to physical, psychological and sexual abuse in their home by husbands, friends, relatives, and outside by anyone. The factors responsible for the domestic and public crimes against women in India are poverty, dowry system, and literacy. Other factors responsible includes, religious and social beliefs, changing lifestyle, movies, pornography, empowerment issues, social structure, weak legal system and inefficiency of the government. Government should provide support to victimized women in the form of re-building and recovering their lives after violence, their counseling, relocation, credit support and employment. In order to reduce crimes against women, government should also provide necessary medical, judicial and legal support, start programmes to help the victims, in collaboration with doctors, religious and social workers, NGOs, police and people. REFERENCES: [1] Lateef, S. Muslim Women in India: Political and Private Realities. New Delhi, Kali, 1990. [2] Tripathi N.K., Crime in India 2011 Statistics, National Crime Records Bureau, ministry of home affairs, 2011. [3] Rupsayar Das, (2012) Representation of Violence against Women in Indian Print Media: A Comparative Analysis, Global Media Journal Indian Edition/ISSN 2249-5835, pp. 1 24. [4] Linz, D., et al (1984), The effects of multiple exposure to filmed violence against women; Journal of Communication, 34(3), pp. 130 147. [5] en.wikipedia.org [6] ibnlive.in.com [7] ncrb.nic.in [8] nitawriter.wordpress.com [9] timesofindia.indiatimes.com [10] www.azadindia.org [11] www.deccanherald.com [12] www.epw.in [13] www.icrw.org [14] www.mumbaiboss.com [15] www.swayam.info ----
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PROMOTING SUSTAINABLE DEVELOPMENT AMONG TEACHER TRAINEES AN OBSERVATIONAL STUDY
Rashmi Sinha, Assistant Professor Department of Education Patna Womens College, Patna, India
Sister Saroj M. A. C., Assistant Professor Department of Education Patna Womens College, Patna, India
Dr. Durga Sharma, Assistant Professor Department of Education Patna Womens College, Patna, India
ABSTRACT Sustainable development is a pattern of economic development in which resource use aims to meet human needs while preserving the environment so that these needs can be met not only in the present but also for generation to come. Considering the importance of the issue a month long observational study Nurture the Nature was designed with the objective : to develop among the teacher trainees a sense of appreciation and preservation of natural environment. Purposive sample of 100 students enrolled in the Department of Education Patna Womens college, Patna for the session 2011-12 formed the participants. Pre and Post observation effect was measured through personal interview which included the observed changes in the nurtured plant as well as behavioral change among the sampled participants. The observed result was a considerable improvement in the attitude of the participants towards nature. Keywords: sustainable development, nurture the nature, Patna
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There have been more than 30 years of intense discussion and research on the environmental crisis. Nevertheless, the problems continue to worsen daily because humans (individuals, governments, and private corporations) are the cause of the environmental problems occurring almost everywhere. Integrated approaches with the social sciences and the humanities are needed if this trend is to be reversed. Environmental education has a very strategic and important role in preparing people to solve global environmental problems, as pointed out internationally in Chapter 36 of Agenda 21 (Keating, 1993).Environmental education has become even more important, because almost every decision we make has an environmental component. Only through environmental education people can develop a sense of concern for what is happening on a local and global scale and be encouraged to take appropriate action (Hale, 1993). In 2007, an international conference was held at the Centre for Environment Education (CEE) at Ahmedabad. Prior to that, Smt. Indira Gandhi, the then Prime Minister of India, commented at a United Nations Conference on Human Environment in Stockholm in 1972, Environment cannot be improved in conditions of poverty, thus highlighting the link between environment and poverty. The World Commission on Environment and Development in 1987 defined sustainable development as development that meets the needs of the present without compromising the ability of future generations to meet their own needs. The objective of sustainable development is to provide the well-being of the present and the future generations and to maintain a healthy environment and life support system. The sustainable development framework entails thinking far into the future and how our present actions might affect our ability to live a wholesome and fulfilling life. One can look at sustainable development on a global, regional, national, state, local and even individual scale. The World Watch Institute (WWI) in its annual publication state of the world 2006 specially focuses on the dramatic rise of the two Asian nations (India and China) with about 40 percent of world population and says the choice of development they make in the next few years would lead the world either towards a future a path of development or of acceleration towards a collision course with worlds ecosystems and resources. It is said (Schuyler, 1983): a point has been reached in history when we must shape our actions throughout the world with a more prudent care for their environmental consequences. Through ignorance or indifference we can do massive and irreversible harm to the earth environment on which our life and well being depend.Since teachers play a major role in the education of children, their own education on these sensitive issues must therefore create necessary understanding among them about their roles and responsibilities. The courses of teacher education need to be enriched to enable teachers to understand the attributes of modernity and sustainable development. Much of the research work has illustrated students and teachers attitudes, beliefs and knowledge about the environment (Culen and Mony, 2003; Hines et.al., 1986/87; Khalid, 2003; Lane and Wilke, 1994; Lijmbach et.al., 2002; Looughland et.al., 2003; Middlestat et.al.;1999; Moseley et.al., 2002; Plevyak et.al., 2001). Within environmental education research however, there is dearth of discussion about successful and practical application of environmental education in teacher education programs. Oulton and Scott suggest that practical application should be a part of teacher education course objectives so that, as a result of preservice teacher education programs, novice teachers should be both willing and able to make a contribution to environmental education through their own work with learners(cited in Oulton, 1998,p.264). Apart from it, it may be added that role of a teacher is very crucial to achieve the objectives of sustainable development. They play an important role in moulding the behavior of children (future citizens of the country) in the classroom formally and people in the society informally to promote desired quality for sustainable development. In India, NCTE (National Council of Teachers Education) has observed environmental education as a compulsory curriculum for teachers education, to stress development of critical awareness about pressing problem of environmental degradation, its consequences and methods to curtail it. Hence, investigators being teacher educators made an attempt to foster behavioral change among prospective teachers towards nature and environment as a whole. DATA AND METHOD: SAMPLE: The present study was a month long observational study therefore investigators preferred to conduct experiment in their own institution. Therefore, a purposive sample of 100 teacher trainees in the department
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of Education, Patna Womens College, Patna for the session 2011-12 formed the participants. TOOL OF DATA COLLECTION: Pre-intervention and post-intervention experience of the participants was obtained through personal structured interview. EXPERIMENTAL DESIGN: The Experiment was named as Nurture the Nature which was of one and half month duration. The whole exercise was carried out in three phases which were: I Phase Pre-Intervention II PhaseIntervention III Phase Post-Intervention PHASE I PRE-INTERVENTION: At the outset the trainees were given an orientation about the project. The participants were given instructions in detail which are as follows: size of the pot should be uniform 4, Sapling to be selected should only be ornamental, height of the selected sapling was clearly specified i.e. approx 6-8, creepers were told to avoid, season and soil should be kept in mind while selecting the sapling and lastly they were instructed to use only organic manure. They were also told to make and record initial and final observation along with regular observations date wise in the Report to be submitted at the end of the exercise. After the orientation participants were provided with plants with pots Immediately after the allotment of the pots each of the participant went for personal interview and a still photograph with plant Lastly, pre-intervention ended with a display of all the plants. PHASE II- INTERVENTION: The activities carried out during intervention phase are outlined as follows: Nurturing of the sapling for one and half month Making initial and regular observations by the participants. Recording the observations in data sheet. PHASE III POST- INTERVENTION: Phase III of the experiment included the following steps : Terminal observation of the plant, report writing, second display of the plant followed by the interview of the participants and then still photography with the plant. Report prepared by each participant included Pre-intervention and Post-intervention photograph of the plant, general information about the plant viz. Common name, Botanical name, region of the plant and its nativity. Further, it also had data record for initial and final observation along with data record for regular observations, an example of the data record schedule have been given as table 1 and table 2. Final page of the report had narration of the experience of the participants during and at the end of the exercise along with a final lesson they will carry along by carrying out this exercise. Table 1: Data record for intial and final observations S.No 1 2 3 4 5 Parameter Plant Height Diameter of Stem Number of Leaves Number of Flowers Pigmentation Initial Observation 6 0.4 20 Nil Light to Dark Green Terminal Observation 6.5 0.5 20 Nil Yellow to Light Green
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Size of The Leaves Other
Medium 2 Leaves Lost
Medium 2 New Leaves
Table 2: Data record for regular observation Date 29.10.11 2.10.11 6.10.11 10.10.11 16.11.11 23.11.11 Height (inches) 6 6.2 6.2 6.4 6.5 6.5 Diameter 0.4 0.4 0.4 0.5 0.5 0.5 Number of leaves 21 22 21 21 21 22 Other changes New leaflet No No No No No
CONCLUSION: The following observations were drawn from the personal interview conducted pre and post exercise from each of the participants: 1. Almost all of them felt that Nurture the Nature exercise has helped in developing a feeling of love and care for the plants. 2. Most of them reported that during the exercise they nourished and nursed the sapling like a concerned mother. Post-exercise the same concern they fee for Mother Nature. 3. Many of them felt responsible for growth and protection of their plants which post exercise has transformed their behavior towards their surrounding environment. 4. Some of the teacher trainees reported that they have found a new companion in their plant. 5. Nurturing a sapling helped to bring a realization among teacher trainees that destruction is easier than construction. 6. It was common realization among the teacher trainees that humans are turning selfish by giving priority to satisfy their endless wants instead of meeting of basic human needs. 7. The practice turned to be fruitful as teacher trainees pledged to extend the feeling of love for nature among their students in future. 8. Nurturing a sapling helped them feel responsible for the conservation of the environment. 9. Some teacher trainees also realized that dedication of a few moments to plants can help to protect the precious gift of human life. IMPLICATIONS OF THE STUDY: 1. Teacher training institutions can work as an instrument to propagate the concept of sustainability. 2. Orienting teachers and teacher trainees with planning, designing and conducting of project activities and case studies in local contexts. 3. Teachers can expose students to different kinds of community projects already in operation in their locality. 4. Developing skills to establish closer school and community contacts for social and environmental sustainability. 5. Using co-scholastic activities in other subjects as a medium of teaching environment sustainable development. 6. To incorporate proactive actions for motivating students for sustainable development. SUGGESTION: Undoubtedly, the achievement in developing the appreciation for sustainable development brought about by the experiment could be possibly be short term because value and attitude education demands a long time to have the effects penetrate to form habitual behavior amongst students. So, this experiment serves as one of the catalysts only. It is necessary for teachers to uphold similar learning activities with an emphasis on learning sustainable development.
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REFRENCES:
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[1] Culen,G.R. and Mony, P.R.S. 2003, Assessing Environmental Literacy in a non-formal youth Program. Journal of Environmental Education, 34(4), pp. 26-28. [2] Hale,M., 1993, Ecology in Education, Cambridge University press, p 191. [3] Hines, J. M., Hungerford, H.R., and Tomera, A.N. 1986/1987, Analysis and Synthesis of Research on Responsible Environmental behavior: A meta-analysis. Journal of Environmental Education, 18 (2), pp. 1-8. [4] Keating, M., 1993, Agenda for Change: A Plain Language Version of Agenda 21 and Other Rio Agreements, Centre for our Common Future, Geveve, Switzerland, p70. [5] Khalid, T., 2003, Pre-service High school teachers Perceptions of three Environmental Phenomena. Environmental Education Research, 9 (1), pp. 3-20. [6] Lane, J. and Wilke, R., 1994, Environmental Education in Wisconsin: a teacher survey. Journal of Environmental Education, 25(4), pp. 9-18. [7] Lijmbach, S., Arcken, M.M., Van Koppen, C.S.A., and Wals, A.E.J., 2002, Your view of Nature is not Mine!: Learning about Pluralism in the Classroom. Environmental Education Research, 8 (2), pp. 121-135. [8] Loughland, T., Reid, A., Walker, K., and Petocz, P., 2003, Factors influencing young Peoples conceptions of Environment. Environmental Education Research, 9(1), pp. 3-20. [9] Middlestat, S.E., Ledskey, R., and Sanchak, J., 1999, Elementary School Teachers beliefs about teaching Environmental Education. Rock Spring, GA: North American Association for Environmental Education. [10] Moseley, C., Reinke, K., and Bookout, V., 2002, The Effect of teaching outdoor Environmental Education on preservice teachers attitudes toward self-efficacy and outcome expectancy. Journal of Environmental Education, 34 (1), pp. 9-15. [11] Plevyak, L.H., Bendixen-Noe, M., Henderson, J., Roth, R.E., and Wilke, R., 2001, Level of teacher Preparation and Implementation of EE: Mandated and non-mandated EE teacher preparation states. Journal of Environmental Education, 32(2), pp. 28-36. [12] Schuyler, A.H., 1983, Population, resources and environment: All one problem. The Journal of Environmental Education, 15 (1):pp 1-2 ----
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VIZAI BHASKAR IS AN EMERGING FOURTH-WORLD PLAYWRIGHT WITH DEEPER SOCIAL CONCERN AND HUMANISM CRITICAL EVALUATION OF HIS SELECT PLAYS
Hari Babu Thammineni, M.A., M.Phil., Ph.D. Candidate Associate Professor of English, Lendi Institute of Engineering and Technology, Jonnada, Vizianagaram Road, Vizag, India.
ABSTRACT Deerghasi Vizai Bhakar -born in 1958 in Ampolu village in Srikakulam district of Andhra Pradesh-is a notable playwright in the contemporary Telugu theatre. He has pursued academic studies in theatre, and done his PhD on Brechts influence on Telugu drama. In his own works, he has engaged with sociopolitical issues and the idea of social justice using Vedic, Upanishadic and Puranic references, and popular religious symbols and metaphors to convey his message of emancipation. Fourth World is a raised era for social emancipation and all his works deal with the core values of emancipation such as humanity, social concern, and moral values. This paper attempts to critically evaluate Vizai Bhaskar as an emerging Fourth-World Playwright with deeper social concern and humanism. His major plays include Ruthwik, Kurchi, Kalakootam and Riding the Tiger. All of these have been translated into English and performed in languages including Kannada, Malayalam and Hindi. Keywords: Fourth World, Social Concern and Humanism.
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INTRODUCTION:
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Fourth world literature emerges as a diverse and universal field of study characterized by blooming of native consciousness. It is included with undercurrent experiences of caste, creed, conflict, exploitation and brutality. Social existence is at stake in the Fourth World. Humanism and Morality are believed to be the rare commodities and they are proved to be difficult methods of practice. Hence they become worthy and many emerge themselves as writers giving an emphasis to the said human virtues in their works. Dr. D. Vizai Bhaskar is also such an established Playwright in Telugu with an inquisitive spirit of presenting Fourth World perspectives. Vizai Bhaskar is known for his versatile genius in writing the dramas in Telugu and which have been translated into English and several other Indian languages. It is to his greatness that he is one of the greatest budding dramatists of Indo-Anglian literature. His greatness is hidden in quality in place of quantity. He has only five or six plays that have been translated into English to his credit. The best of them are Ruthwik; 'Kalakootam; Riding the Tiger'; The Chair Vizai Bhaskar is a civil servant, a humanist, and above all a dramatist. Certainly, his 'Chair' has been popular far and wide. Vzai Bhaskar is highly influenced by trends in Telugu literature and he has also taken legend, history and myth for the plots of his plays. HIS CONTRIBUTION: Vizai Bhaskar is believed to be one of the pioneers in the field of new drama and all his plays are actable. Their story is generally borrowed from his own philanthropic conscience that he has developed towards the down-trodden and the exploited in the contemporary society. Besides, his plays deal with ethical values and he sheds tears for the deteriorating human relations, de-tracking virtues. The difficulty of literature is not to write, but to write what you mean; not to affect your reader, but to affect him precisely as you wish . . . The business of life is mainly carried on by means of this difficult art of literature, and according to a mans proficiency in that art shall be the freedom and the fullness of his intercourse with other men (Stevenson). As Stevenson speaks of the deft use of writing.Vizai Bhaskar successfully succeeds in writing commendably content filled dialogues for each of his dramas. RUTHWIK: Vizai Bhaskars play ' Ruthwik' presents an inevitable need of ethical living in the modern context. It is based on the theme of human beings responsibility in living with ethics and wisdom. Integrated Society is Vizai Bhaskars aim. He desires that the whole mankind should not be torn by strife in the name of caste, creed and religion etc., He envisages life of human being should be coupled with ethical living entwined with logical reasoning as Ravindra Nath Tagore appeals in one of the Rhapsodic songs of his great book Gitanjali: ..Where the clear stream of reason has not lost its way Into the dreary desert sand of dead habit. (Tagore) Thus his success lies in discussing modern problems with the help of an ancient myth. It is interesting to read old tales in the light of contemporary concerns. Ruthvik is a central character which satirically highlights the very common evils of the society for the greed of money. It depicts how blood relations, familial accountability, love and affection too de-track and deteriorate for greed of money. KALAKOOTAM: Vizai Bhaskars 'Kalakootam' is based on present day murderous and pathetic political system. Its plot is based on present days politicians enigmatic envy towards power-mongering. This play is an excellent example for Vizai Bhaskars adept use of symbolism. It is proved while he makes Kodanda Ramaihs ghost speaks to Raghava who kills Kodanda Ramaih and aspires to be a politician through murderous way You, the inexperienced calf! In democracy, you should make your opponent politically dead, not physically. You should disable him, not kill him. (Vizai P. 14)
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Dramatists should know about the hearts of their viewers. The experiments of dramatists cant become experiences of viewers unless they are influenced by the feelings of a dramatist. Through Kalakootam, Vizai Bhaskar succeeded by giving a life to the ideas of him. THE CHAIR: This play is meant for understanding the love and anxiety for an orderly society that comes with the gaining of greater respect and prosperity. Narsaiah, a poor dalit, who becomes sarpanch of a village, undergoes different experiences, which ignites in him interest and sympathy towards the dalit masses who have come to a state of attaining greater power. The responsibility of the educated dalit youth at this important juncture of their history is also dealt with in this play. This play has received NANDI Award from Govt. of Andhra Pradesh in 1999 as a best play. The chair signifies the power and it fights for social, economic and political democracy. RIDING THE TIGER: This play deals with factionism that has ruined quite a few group politicians in Rayalseema Region of Andhra Pradesh. This play brings out the essence directly through incidents instead through its characters or through its technical values. It is the play that advocates how dangerously Tirupatayya and Obulesu (who work as Murderers at Reddy and Naidu) riding the Tiger only to offer themselves to the Tiger after their riding is over. As Literature is believed to be the helping tool for people, people those who cannot read and write, this play has appealed the attention of around 70 faction widows of P. Kotakonda village of Kurnool district of Andhra Pradesh. One can estimate the power of this drama as it is played by police in order to describe the ills of Factionism to those who attract towards it. USE OF CONTRARIES: It is Vizai Bhaskars skill that both incident and situation are correlated with characters. In Kalakootam events and incidents originate from the paradoxical actions of Raghava to become some how the leader by not bothering about peoples needs. The dramatic devices of parallelism and contrast have been widely employed. The plot is based on opposites and paradoxes. Power or Politics has always been regarded as means to correlate leader with state. In this play, Power has changed its sense. Raghava kills his opponent Kodanda Ramaih for the sake of power. He is responsible for the death of his friend Dawood who also aspires to be a leader. Maria is also held responsible for Raghava becoming the prey to the murder politics as she resists Raja Sahib trails of Raghava not entering politics. Please think a bit practically, Uncle! Now, you gave me the jewellery. If I am criminally assaulted and if it is taken away, can I resist at all? Or, can you resist it? Education is a hard nut to crack for him, and for doing any business or cultivation, no patience or potency at all! Then, there remains the political field alone, isnt it? He is craving for some power and position. Let him take a chance! You protested, but did he refrain from it? Hell beg, borrow or steal here or there and proceed with his monstrous mission. Except that, he is not a person to heed to you and stop his plans, isnt it? For that atrocity and vandalism, why should you indirectly give scope, is my point. By preaching goodness, why should you become bad in his eyes, Uncle? I think, you better throw on his face whatever he wanted! (Vizai P. 97-98) Finally Raghava becomes mad. Apparently, he is very particular about power and politics but he is frustrated. USE OF SYMBOLISM: Vizai Bhaskar is a modern dramatist and wishes to express his viewpoint through symbols. For example, 'The Chair' by Vizai Bhaskar is a great symbolic play. It is true one can enjoy the play on the stage without paying much attention to its rich and complex symbolism. The play has an interesting story, a natural plot, scope for demonstration. Besides it, the play reflects the complex political oppression of the outcastes which fills disillusionment. In the play the Chair has its own symbolic value. For example in the
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final scene, we find that Narasaiah, a dalit surpanch is hesitant to adorn the seat, Bhimaiah, brother of Narsaiah welcomes him and acclaims... .. This tendency should not be perpetuated any longer! My dear brother! This particular Chair does not indicate only power, its a symbol of our social freedom and reform. This Chair should become a Gandeevam in our hands, a Paasupataastra to tumble all the social barricades erected around us! The Chair is ours! Adorn it! The power is ours! Exercise it! Its reigns are in our own hands! You start ruling the system? (Vizai P. 64-65) ART OF PLOT CONSTRUCTION: As a play writer, Vizai Bhaskar pays a great attention to the plot. He knits it so well that each incident gets closely related to the other. To know Vizai's skill 'Ruthvik' is an ideal play. It is a play of moral soothing. It throws light on the immoral living conditions of the contemporary society. The 'Alienation Effect'a technique which 'estranges' the audience and forces them to question the social realities of the situations being presented in the play is successfully employed in this play. Ruthvik plays the pivotal role by invoking the inner conscience of the audience. The play being didactic teaches a moral lesson and succeeds by satirizing the modern evils. ART OF CHARACTERIZATION: Vizai Bhaskar employs the devices of dialogue, contrast, parallelism and irony for characterization. Only those points of character are emphasized, which develop the plot. Ruthvik has been portrayed with great psychological depth. Raghava in Kalakootam proves that thirst for power corrupts the mind of a person. Narasaiah in Chair is an example for a hapless dalit who has been exploited by the affluent leaders and machinations. CONCLUSION: Indian English drama needs real theatre for stage performance and live audience. As MK Naik Points it out. A play, in order to communicate fully and become a living dramatic experience, needs a real theatre and a live audience. It is precisely the lack of these essentials that has hamstrung Indian drama in English all along. (M.K. Naik: 81) KR Srinivas Iyengar is highly depressed at the dismal sight of the birth and progress of Indian English Drama Modern Indian dramatic writing in English in neither rich in quantity, now on the whole of quality enterprising Indians have for nearly a century occasionally attempted drama in English but seldom for actual production (Iyengar: 226) But, Vizai Bhaskar with his versatile genius is contributing to Indian Drama for its growth in leaps and bounds. He possesses observation, first hand knowledge of social condition and ability to put forth views in simplest and effective spoken language to write dramas effectively filled with deep social concern and humanism. Lets hope he should become the greatest dramatist of Indo-Anglian literature. REFERENCES: [1] Stevenson, Robert Louis. Truth of Intercourse. Great Literature Online. 1997-2010 <http://stevenson.classicauthors.net/TruthOfIntercourse/>. [2] Tagore Rabindranath. Gitanjali (Song Offerings) Branden Publishing Co. ISBN0-8283-1436-5 Song 35 P26-27 http://www.hindu-blog.com/2011/10/download-gitanjali-by-rabindranath.html [3] Vizai Bhaskar. Ruthwik & Kaalakootam Indo American Books 2007 [4] Vizai Bhaskar. Chair [5] M.K.Naik, The achievement of Indian Drama in English, C Perspectives of Indian Drama in English [6] K.R.S. Iyengar, Indian writing in English, New Delhi: Sterling, 1985) ----
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LOVE AND SPIRITUALITY IN MANAGEMENT AND BUSINESS
Dr. Vidhu Gaur Assistant Professor, Alliance University, Bangalore, India.

ABSTRACT Love and spirituality have a real and crucial place in the modern corporate world. The concepts of love and spirituality are if anything more valid in today's challenging corporate environment than the traditional business leadership pursuit of economic ruthlessness. Organizations have started accepting to look at and accept that the whole person has a place in the workplace, as opposed to the historical perspective that subscribes to the adage that the person who turns up for work is part of a machine as a human resource. It's about having the recognition that the whole person has a whole life and that we don't have to turn off parts of our lives and ourselves as we walk in the door. Once we can get people to get that, then they're up for doing the transformational work. It makes intuitive sense that if people are their whole selves and are authentic with each other that the positive relationships that result will produce in an up lift in productivity. Concept with big shift towards more people-focused business has come up in the present era. People who connect more openly and honestly with others are more likely to have far deeper more meaningful conversations that are transforming the world. Keywords: Feminine Strengths, Left-side brain Perspectives, Fair Trade, Collaborative Mindset
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INTRODUCTION:
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Love is a strange word to use in the context of business and management, but it shouldn't be. Love is a normal concept in fields where compassion is second-nature; for example in healthcare and teaching. For those who may find the concept of 'love' too emotive or sentimental, the word 'spirituality' is a useful alternative. Spirituality is a perspective in its own right, and it also represents ideas central to love as applied to business and organizations, i.e., the quality of human existence, personal values and beliefs, our relationships with others, our connection to the natural world, and beyond. Some people see love and spirituality as separate things; others see love and spirituality as the same thing. Either view is fine. In business and organizations, 'love' and/or 'spirituality' mean genuine compassion for humankind, with all that this implies. Love and spirituality do not imply or require a religious component or affiliation at all. Anyone can love other people. And everyone is in their own way spiritual. Love (or spirituality, whatever your preference) particularly encompasses compassion and consideration for other people. Love in business and work means making decisions and conducting oneself in a way that cares for people and the world we live in. So why is love (or spirituality) such a neglected concept in business? HOW LOVE, COMPASSION AND SPIRITUALITY BECAME UNFASHIONABLE IN CORPORATIONS: 20th century business was largely concerned with 'left-side brain' perspectives, for example: performance management, critical reasoning, total quality, strategic planning, financial results, profit, etc. These are necessary aspects of good business and management, but they are fundamentally dispassionate. Also they tend to be 'male-oriented' areas. Not always, but they tend to be so, probably because men are generally more prone towards left-side-brain thinking and working. Historically men dominated the business landscape, and still do today to an extent. Not surprisingly then male-oriented ideas and priorities especially dispassionate left-side-brain factors have tended to dominate business and organizations. Conversely love, compassion and spirituality are generally perceived to be female traits. Men are less likely than women to demonstrate loving, compassionate, spiritual behavior because of cultural and social expectations, especially when reinforced by the business traditions already mentioned. Additionally, in some cases successful business people owe much of their success to a personal drive borne of insecurity the motivation to fill a gap or want, which can manifest as relatively unloving, dispassionate behavior. Some successful people seem to suppress their spirituality, and to actively resist love to the point that they cannot even discuss it. Where unloving dispassionate behavior exists in a business leader, whatever its cause, this unavoidably sets the tone for the whole organization to be unloving and uncaring, and devoid of spiritual awareness. If this situation is replicated across very many large organizations, as arguably it has been during the 20th century, then inevitably business and work as a whole tends to be characterized in the same way - as unloving and uncaring, and certainly not spiritual. It doesnt mean that the western world is run by a load of emotionally insecure mentally dysfunctional ruthless men (although I bet we've all worked for at least one of them in our time), but arguably there are certain correlations between aggressive resultsdriven male behavior, the short-term business success demanded by western economic systems, and the organizational and economic cultures that arose and endured from 'successful', dispassionate anti-spiritual (and mostly male) leadership. However, unloving uncaring methods, which tend to predominate in organizations and to be passed on through successive leadership generations, are not the entire and only way to run a business or organization. Not surprisingly therefore, ideas about loving people, being compassionate and spirituality are unlikely to appear in many management training manuals or training courses. Nor are the principles of genuine tolerance and selfless giving, or the values of forgiveness, or of nurturing your own spirit, because after all we must love ourselves before we can unconditionally love everyone else, and what's the point of loving yourself if the idea of loving anyone else is a totally alien concept in the conventional corporate world? People who extol the virtues of love and spirituality in organizations have until recently largely been regarded as cranks not because love and spirituality doesn't work but because organizations, and also the developed western economic world, have evolved to ignore and exclude the deepest of human feelings and needs. Which when you think about what we actually all are, and what we actually all need as people, is a bit strange and a bit daft. Work and organizations in recent times have simply not aligned with some of humankind's most basic needs to be loved, and to find our own purpose and meaningful connections in
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life, which often brings us full circle to loving and helping others. For a hundred years or more, millions upon millions of people who need love and spiritual meaning like they need food and drink, are denied these basic life requirements at a place that occupies the majority of their useful existence (their work), because love and spirituality seemingly don't feature on the corporate agenda. THINGS ARE CHANGING: People are most certainly now seeking more meaning from their work and from their lives. People in far flung exploited parts of the world now have a voice, a stage, and an audience, largely enabled by technology and the worldwide web. Customers, informed by the increasing transparency and availability of information, are demanding that organizations behave more responsibly and sensitively. Increasing numbers of people are fed up with the traditionally selfish character of corporations and organizations and the way they conduct themselves. The growing transparency of corporate behavior in the modern world is creating a new real accountability for the organizations which hitherto have protected the self-interests of the few to the detriment of everyone and everything else. Now, very many people staff, customers, everyone demand and expect change. Leaders need now to care properly for people and the future of the planet, not just to make a profit and to extract personal gain. And so businesses and corporations are beginning to realize that genuinely caring for people everywhere is actually quite a sensible thing to do. It is now more than ever necessary for corporations to make room for love and spirituality to care for people and the world alongside the need to make a profit. Love, compassion, and spirituality consideration for people and the world we live in whatever you choose to call it is now a truly relevant ethos in business and organizations. THE CONCEPT OF LOVE AND SPIRITUALITY IN BUSINESS IS NOT A NEW ONE: Love, compassion, spirituality, and real ethical principles (to some a modern interpretation of the preceding concepts), actually provided the platform for the formation and success of many very large and famous corporations. Dating back to the 18th and 19th centuries some very big businesses were originally founded on loving and spiritual principles. For example the early huge Cadbury and Rowntree British enterprises were founded by Quakers and run on far more compassionate principles than we would consider normal in business today. We can also look to longstanding examples of co-operatives, employee ownership organizations, mutual and credit unions becoming increasingly successful in modern times. Many of these organizations openly advocate and support more caring and sharing ideals that place people and ethics ahead of profit, and significantly some are now beginning to demonstrate that a more caring philosophy can translate into competitive advantage, and better commercial performance. As we know, management ideas tend to be cyclical, and this is a case in point: Love and Spirituality are back in business. LOVE IN BUSINESS IS BECOMING A POPULAR CONCEPT AGAIN: There are increasing numbers of writers, gurus and now even a few business leaders who advocate greater love, compassion and spirituality in corporations. Some interpretations have a compassionate or spiritual foundation; others are quite rightly incorporated within wider issues of corporate social responsibility and ethical business. Other ideas approach the concept from the environmental angle, or sustainability, or 'fair trade'. It is a challenge for modern managers and leaders to develop an interpretation of love and spirituality that will work for their organizational situation. Barbara Heyn, a Cincinnati-based consultant, sees love and spirituality in organizations from the perspective of feminine instincts and behaviors. This is not to say that men are useless at it; not at all: men, like women, can actually do anything they put their minds to. Everyone can. The concept of 'feminine spirit' emphasizes that the biggest challenges in modern work and organizations respond to what we traditionally consider to be 'female' strengths and styles. Globalization is creating these new organizational challenges: 1. Managing and developing global teams which require far more sensitive treatment than traditional localized structures. 2. Approaching cultural diversity as strength not a hindrance which requires great perception, awareness and openness to possibilities.
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3. Creating inclusive responsible plans, and making ethical decisions which requires a strong sense of what is right and good, including compassion, humanity, and spiritual connection. Most of this is traditional 'female' territory, but it must now part of the 'male' compass too, because these are the big issues facing all managers, leaders and organizations today. As such, this is a call for everyone in management and business to be more loving and spiritual to be more sensitive and understanding and compassionate and a warning to all to adopt more 'feminine' ways of doing things. Sonia Stojanovic, a McKinsey consultant, explains her vision and views about the cultural shift facing business and the world at large. Sonia Stojanovic's methodology illustrate that Love and spirituality have a real and crucial place in the modern corporate world. The concepts of love and spirituality are if anything more valid in today's challenging corporate environment than the traditional business leadership pursuit of economic ruthlessness. LOVE IN BUSINESS: A NOVEL CONCEPT: Most of us are probably used to a traditional culture at work where 'proper' reserved behavior is expected. People keep their distance and approach work and relationships with a sense of formality. What if that paradigm were to shift towards a more compassionate and spiritual model? In the past, traditionally male behaviors such as tough-minded decision-making and competitive aggression were the standard. At job interviews and when assessing performance and potential, leaders would assess whether the employee had 'fire in his belly' or was a fist-pounding-on-the-table kind of guy or gal. There was little tolerance of sensitivity, never mind tears. Now however a sea-change is occurring that recognizes the value in management and leadership of feminine traits such as warmth, affection, nurturing and intuition. In fact, love flows naturally when you create a space for it. People are naturally inclined to good. It's the business world that makes us resistant and skeptical. If you are open and accepting, people can feel comfortable around you. People feel better when they are allowed and encouraged to connect on a deeper level with others, especially with managers and superiors. Fear and anxiety is no help in organizations. Connecting openly dispels anxiety and makes for harmonious relationships. An increased sense of humanity and trust positively impacts the bottom line, because people and entire organizations work far better when folk are happy. FOLLOWING ARE SOME POINTERS FOR CREATING A HUMANE AND PRODUCTIVE BUSINESS ENVIRONMENT, FOR ANYONE WHO SEEKS TO MAKE A POSITIVE DIFFERENCE IN THEIR WORK: ESTABLISH A COLLABORATIVE MINDSET: Your peers can be an excellent support system. View your colleagues as potential allies rather than threats especially people in 'warring' departments. Ask for their opinions and listen to what they have to say. Incorporate their input into your decision making. Work on inclusion and resist exclusion. Business processes often encourage unhealthy competition, exclusion, alienation, lack of consultation and noncollaborative behaviors, so look out for these negative situations, and use collaboration and cooperation to remove tensions. Look out especially for policies and systems that discourage (unintentionally or intentionally) collective working and team-work, especially between departments. In the belief that it raises overall performance standards, certain leaders encourage unhealthy competition and 'free-market' methods which are designed to see only the best performers survive, leaving less experienced or less capable people to struggle. Of course this can raise performance at the top level, but it's not a recipe for building strengths in depth, nor for organic growth and self-sufficiency throughout the organization. In such environments traditionally female strengths such as relationship building, empathy and listening skills are suppressed if you allow them to be, so instead consciously use these capabilities. The ability to work in partnership and collaborate with others is a behavior that should be encouraged, rewarded and leveraged. Foster collaboration ahead of competition. REACH OUT TO OTHERS: Find ways to connect personally with others on an honest human level. Ask sensitive questions and identify common areas of interest. Proactively look for opportunities to help team members in a meaningful way. Do
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something outrageously kind for a co-worker with no expectation of anything in return. Maybe unexpectedly treat the colleague ahead of you in the cafeteria line to lunch. Just for the heck of it. Throw surprise parties for people or baby showers for soon-to-be moms and dads. When engaging with anyone managing, coworking, collaborating, networking, directing, following, whatever focus on what you can do to benefit the other person, not vice versa. Your positive, genuine efforts will have a lasting impact. Some people use the word 'Karma' in referring to this sort of concept, and while Karma has other deeper and complex meanings in Buddhist and Hindu ideology, one of the central principles is quite irresistible when you get the habit: namely that people who do good things generally find that they experience good things as a result. The universe or whatever life force is out there does seem to keep checks and balances. USE YOUR INTUITION: There's much truth to the concept of 'female intuition'. Intuition is invaluable especially in dealings with people. This skill isn't limited to the female gender. Men have it too if they simply tune into it, rather than denying its existence or relevance as can be the tendency. Take note of your physical and emotional feelings associated with intuition. Your hunches are often correct and are based on information that may not be readily apparent to your consciousness. We all know deep down whether something is right and good. You develop your intuitive abilities by first of all accepting that you have them, and then by practicing paying attention to your feelings. Trusting your intuition is a wonderful way to enhance your decision-making skills. Listen to your instincts and afterwards, debrief with a trusted colleague or mentor. What decisions did you make? What were the repercussions of these? Do you notice any patterns? Does your intuition play a larger role in certain areas, (people, processes, teams, aims, tactics, problem-solving, etc) so that you might transfer the intuitive approach to other aspects of your decision-making? Note the outcomes of your intuitive decision-making and capture them in writing. You don't need to write a book just jottings or little diary notes suffice for many people. This way you'll remember things and be able to refer back to them, which mean you are more likely to spot the connections between your intuitive feelings and actual results, which helps develop intuitive ability. It's in all of us, or the human race would not have survived. Did you ever see a caveman with a spreadsheet or a psychometric test? Of course not they used their instincts and intuition to succeed and survive. MEDITATE DAILY: Meditation, like love and spirituality, is an option that's available to us all. Anyone can do it. It's essentially a deeper state of thought and relaxation than we normally achieve, because simply we normally don't bother. If you put your mind to it, literally, you can do it and get better at it, and maybe one day even try the crosslegged thing too. And there are plenty of other fragrances. Incidentally the reason why darkened rooms, fragranced candles or incense and soft music or other soothing sounds are used in meditation, is similar to why we bathe toddlers and read them a story before bed it all helps condition and trigger the mental response towards the intended feeling and behavior. Logically if you want to relax, it helps if the body is encouraged to do so through as many senses and sensations as possible your brain is part of your body remember if your body is being distracted and kept ready for action because of lots of simulation, then relaxation and meditation is a bit trickier to achieve. Instead, do things to relax your body and your brain will relax too. And don't get the children all excited before bedtime or they won't go to sleep. Meditation, aside from being good for health, healing, de-stressing, and general relaxation, is an extremely powerful way to heighten your connection to your intuition, and is also remarkably good for bringing forth your 'feminine' aspects (for men and women alike). When you meditate you help your mind and body to be 'centered' again to restore your natural balance. In this way helps awaken and enhance 'feminine' strengths that we all possess to one degree or another, that are commonly suppressed by the pressures of work and life.
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Meditating is bit like running a 'full system restore' on a personal computer it's cleansing and helps get us back closer to our 'factory settings'. Start by meditating once a day for ten minutes. A quiet darkened room helps, but really you can do it anywhere even in the car, although best not while driving. It's even possible after a little practice to sneak a quick two minutes of meditative re-charge or relaxation at your desk in front of the PC any time you feel the need. Obviously the environment has an effect on the ease and depth of experience you can achieve, hence why a darkened room is a good idea for beginners or serious sessions. If you fancy it, lighting a scented candle or playing some soothing sounds can help. The crackle of an open fire is good for some people. The sound of water and waves also help. Whatever, it's a matter of what makes you feel comfortable. Focus on your breathing and if thoughts come to mind, don't fight them, just accept them, and then let them go. View your mind as a chalkboard (or wipeboard if you prefer a modern slant) and mentally erase all thoughts from the space. As a beginner, if you are able to hold your mind clear of thoughts for one to two minutes, you are doing great. Our 'monkey minds' are constantly jumping around and it takes a bit of discipline and practice to slow or eliminate our thoughts. With practice and repeating the sensory ideas that work for you, you will soon be meditating like a Buddha. Build up to meditating twice a day for ten minutes, and any other time you feel the need to re-charge or relax. You'll find yourself grounded and attuned more closely to your feelings. And the incense will make you smell great. BUILD YOUR CONFIDENCE: Appreciate what you have to offer and encourage open dialogue with those who may share different strengths. Professionals who are truly comfortable in their own skin are often the most competent and humble. By valuing your inner worth, it will be much easier to rid yourself of jealousy and competitive thoughts. Rise above petty conversations at work. Refrain from initiating or contributing to gossip. Judge no-one. If you need to assess situations and performance focus objectively on behavior and causes rather than subjective personal criticism. Feel comfortable wearing clothes that express your personality. Relaxing and lightening up is more helpful for confidence than taking yourself seriously. Remember the laid-back teachers at school who were always calm, and who never seemed to lose their temper at anything? The ones who always had that air of confidence? Being relaxed and calm about things counting to ten' instead of blowing up is a way to build confidence, as much as it is a sign of confidence. You can be the same. In addition, a little self-deprecating fun can lighten any situation. Someone who can break the ice or the tension of a difficult moment is regarded as a mature and calming influence. People who cannot take a joke might be stern, but they are almost always regarded as lacking in self-assurance too. If you have the strength to enjoy a laugh at your own expense you automatically exude confidence. PUT YOURSELF OUT THERE: Take a risk. When it comes to connecting with others, challenge yourself outside your comfort zone. Although this may go against the grain in traditional corporations, initiate emotional engagement with other people, and maybe even a bit of physical contact within acceptable boundaries of course. It's safest with someone of the same gender, unless you know the other person well. Physical contact is an immensely powerful thing. Many people really enjoy a good hug in fact sometimes it's the only cure when people are upset or angry. Physical contact does however carry certain risks in the workplace because of the risks misinterpreting signals, so if in doubt don't use it. Nevertheless there are times when you can trust your instincts and reach out to people in this way, even if it's a gentle touch on the arm, or a pat on the back. Being friendly though is perfectly safe. Go out of your way to greet a colleague you haven't seen in a while. Be the first to say hello. Never ignore someone because you think they ignored you first they probably never even noticed you because they were still thinking about the big game last night, or whether they left the oven on. The world is full of people who wait
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for the other person to initiate contact. No wonder people don't generally communicate well they are all too busy thinking they've been ignored, when in fact nothing can be further from the truth. Everyone longs for the other person to initiate content and give them a big friendly smile. And that's the way it starts - then you do begin to do it more often, and then other people try it too because they see it's safe and nobody dies, and before long everyone on the floor is happy to make the first move, then it spreads to the whole building. Because everyone realizes it's okay to be open and friendly. Individuals at all levels of an organization welcome being treated as a full person, not just a workmate or a phone extension, or an email address. So put yourself out there: approach people as people in a genuinely friendly way be affectionate and caring through hugs and pats when it's okay, or simply through a big warm smile. DO THE RIGHT THING BECAUSE IT'S THE RIGHT THING TO DO: Demonstrate integrity and stand up to unethical comments or decisions. Move past your own discomfort when it comes to doing the right thing, even (and especially) when no one is watching. Challenge that inappropriate joke or derogatory remark. If it's wrong don't laugh because everyone else does and it's difficult not to. It's not always necessary to challenge things vocally sometimes staying silent is challenge enough. Stand up for people who are not represented in the conversation. You'll be recognized as a leader for enhancing the conscience of the group or organization. Sometimes it's very difficult indeed to do the right thing, especially if the whole organization and all the people around you are advocating and accepting something that's wrong. But often all it takes is one brave soul to ask a sensible question, "Do we all really believe that this is the right thing to do? I mean is this really ethical and good?" Or to say, "I'm really sorry but actually I can't go along with that because to me it's not right." And then lots more people will feel strong enough to say they don't agree either, and then you have a real basis for building something good and ethical. Sometimes all it takes is one brave soul, and that can be anyone. It can be you. Use your deepest instincts to decide what is right, to feeling centered and confident, and to connect with and value other people. These are the behaviors which enable organizations to respond successfully to the challenges of the modern world. It's not about table-thumping or shouting, and it's not about costs and profit. It's about fundamental spiritual things like love, caring for and respecting people (including you); the quieter gentler 'feminine' strengths and skills that all of us possess men and women and which we all must now to be able to use. Organizational culture-shifts happen not because someone at the top makes a pronouncement a culture-shift happens when the attitudes and behaviors of their people change. At the root of any successful change you will increasingly find the qualities of love and trust, which together create the freedom for us to make the right decisions, to connect with others, to challenge and to innovate. A trusting organization that values and encourages the softer 'feminine' traits among its entire people is one that leverages diversity and harmony. And that, in anyone's book, makes good business sense. CONCLUSION: Love and Spirituality are already relevant and applicable concepts in business and work. This is already happening. It is possible, quite easy, and actually very natural to develop and interpret some very specific principles and actions for any organization based on loving and spiritualistic ideals. Love and Spirituality are very much connected with motivation and change. People in modern organizations sometimes struggle to think how to 'motivate' their people as if motivation is some sort of force you apply to somebody. In fact everything that truly motivates people whether to perform better, to be more dependable and committed, to take initiative, to be courageous, to do the right thing, to adapt to change, etc., can be included within Love and Spirituality. Love makes people believe in themselves and feel valued, and liberates them to have this same effect on others. This builds confidence and trust. Spirituality enables people to connect with each other and with the things that truly matter in the world and their lives. This gives people meaning and purpose and relevance, which is at the heart of
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true motivation. In terms of corporate initiatives, Love and Spirituality are about as natural as you can get. These needs and tendencies are basic human nature, and they are in all of us. REFERENCES: [1] Gaur, Vidhu. (2012), 6th International Conference on Contemporary Business 2012 convened by IIT Delhi & Curtin University, Australia, A Refereed International Conference: Role of Inner Attributes in Improving Productivity, Delhi: IIT. Oct. 18-20, 2012. [2] Kalra, J. B. (2010), Self Motivation: Management and Motivating Concept, M. S. Marknet. Delhi. [3] Mellowship, Dawn. (2009), You can only Achieve What is Possible, Indra Publishing House. Bhopal. [4] Sirshree, Tejguru. (2005), How to be ever Successful, Tej Gyan Foundation. Pune. [5] Sirshree, Tejguru. (2007), Self Encounter: Transformation, Macmillan. New Delhi. [6] Sukh, Shammi. (2001), How to Improve Productivity for Greater Profits, Better Yourself Books. Mumbai. [7] Usha Sis. B. K. (2002), Self Managing Leadership, Literature Dept. Mt. Abu. [8] Waite, Rob. (2009), The Lost Art of General Management: Life Skills, Indra Publishing House. Bhopal. ----
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A STUDY ON MOBILE BANKING IN NATIONALISED BANKS WITH REFERENCE TO COIMBATORE CITY
K.Jeyabalan, Assistant Professor, Department of Business Management, Rathnavel Subramaniam College of Arts & Science, Sulur, Coimbatore, India
ABSTRACT In present day banking, total automation of banking operations is an imperative need for all banks to attract more customers, provide efficient services, and survive in the emerging new competition, apart from the profit motive which is the primary objective of the business. In order to achieve these goals of business, various channels have been developed through technology. Mobile banking is one of the best alternative channels available to customers for quick, correct and efficient service at anytime and anywhere. Mobile banking (also known as M-Banking, m banking, sms Banking) is a term used for performing balance checks, account transaction, payments, credit applications and other banking transactions through a mobile device such as a mobile phone or personal. The study is devoted to explore the extent of mobile banking in Indian banking industry where cell phone users are increasing at unexpected rate. It has also concentrated on customers satisfaction level of the mobile banking services provided by Nationalized Banks, its advantages, disadvantages and the improvement measures it requires. It also focuses on the drawbacks on mobile banking in nationalized banks. Keywords: Bank, Mobile banking, automation, technology
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Mobile banking (also known as M-Banking, m banking, sms Banking) is a term used for performing balance checks, account transaction, payments, credit applications and other banking transactions through a mobile device such as a mobile phone or personal. In the world of wide spread mobile communication, its no surprise that mobile phones are increasingly popular with banks as a tool for online rise management, payments, account management, information, making and other services. Mobile banking is not just about providing bank customers with real anytime/anywhere banking and substantially decreasing service costs. It makes communication between the bank and its customers truly point to point, paving the way to high service volumes, a multitude of day to day mobile banking services, and increasing customer loyalty. The private and omnipresent character of mobile banking makes it the perfect access tool for personalized financial servicing in true 24X7 fashions. Mobile Banking helps give the customer's anytime access to their banks. Customer's could check out their account details, get their bank statements, perform transactions like transferring money to other accounts and pay their bills sitting in the comfort of their homes and offices. Customers now don't need access to a computer terminal to access their banks, they can now do so on the go when they are waiting for their bus to work, when they are traveling or when they are waiting for their orders to come through in a restaurant. The scale at which Mobile banking has the potential to grow can be gauged by looking at the pace users are getting mobile in these big Asian economies. According to the Cellular Operators' Association of India (COAI) the mobile subscriber base in India hit 40.6 million in the August 2004. In September 2004 it added about 1.85 million more. The explosion as most analysts say, is yet to come as India has about one of the biggest untapped markets. China, which already witnessed the mobile boom, is expected to have about 300 million mobile users by the end of 2004. South Korea is targeted to reach about 42 million mobile users by the end of 2005. All three of these countries have seen gradual roll-out of mobile banking services, the most aggressive being Korea which is now witnessing the roll-out of some of the most advanced services like using mobile phones to pay bills in shops and restaurants. The biggest advantage of Mobile Banking provides to the banks is that it helps to cut down the costs as it's even more economic than providing tele-banking facilities where banks have to keep hundreds of tele-callers. Additionally, Mobile Banking helps banks to upgrade the quality of services and nature of customer relationship management. Using Mobile Banking, banks can communicate to the defined cluster of clients. The offers can be customized and this personalization can give the banking industry a huge mileage, even at a lower cost. Again, using the same mobile channels, banks can up-sell and cross-sell their highly complex financial products to the specific set of customers which can be coupled with the selling strategies of Credit Cards, Home Loans and Personal Loans etc. On the contrary, the service providers can also accrue more business by providing the Mobile Banking services to their clients. Countries like Japan, Korea or Singapore where the mobile connectivity has already reached its saturation, the service providers can make handsome business by providing additional banking services to the same static client base. Banks are the most significant players in the Indian financial market. They are the biggest purveyors of credit, and they also attract most of the savings from the population. Dominated by public sector, the banking industry has so far acted as an efficient partner in the growth and the development of the country. Driven by the socialist ideologies and the welfare state concept, public sector banks have long been the supporters of agriculture and other priority sectors. They act as crucial channels of the government in its efforts to ensure equitable economic development. THE REVIEW OF RELATED LITERATURE: Total automation of banking operations is an imperative need for all banks to attract more customers, provide efficient services, and survive in the emerging new competition, apart from the profit motive which is the primary objective of the business. In order to achieve these goals of business, various channels have been developed through technology. Mobile banking is one of the best alternative channels available to customers for quick, correct and efficient service at anytime and anywhere. Simple statistical tools like average, standard deviation, co-efficient of variation are used to calculate the efficiency of various bank groups providing the service of M-banking. On the basis of analysis, the study concludes that the private sector banks are on the top in providing the M-banking services to their customers
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and have high profitability as compared to other bank groups under study except foreign banks Avasthi & Sharma (2000-01) have analyzed in their study that advances in technology are set to change the face of banking business. Technology has transformed the delivery channels by banks in mobile banking. It has also impacted the markets of banks. The study also explored the challenges that banking industry and its regulator face. Janki (2002) analyzed that how technology is affecting the employees productivity. There is no doubt, in India particularly public sector banks will need to use technology to improve operating efficiency and customer services. The focus on technology will increase like never before to add value to customer services, develop new products, strengthen risk management etc. the study concludes that technology is the only tool to achieve their goals Janki (2002) analyzed that how technology is affecting the employees productivity. There is no doubt, in India particularly public sector banks will need to use technology to improve operating efficiency and customer services. The focus on technology will increase like never before to add value to customer services, develop new products, strengthen risk management etc. the study concludes that technology is the only tool to achieve their goals. Husain (1988) also highlighted the importance of IT in various sectors. In the introduction of any new technology or system various organizational, financial and functional problems are faced in the initial stages. People are generally reluctant to accept new system, howsoever beneficial it may be. Such various issues, which are involved in computerization, have been critically and vividly discussed. Pathrose (2001), banking the world over is undergoing a rapid and radical transformation due to the all pervasive influence of IT and breath taking developments in the technology of telecommunications and electronic data processing. The winds of change are blowing in India too. The IT which implies the integration of information system with communication technology has radically altered the traditional ways of doing banking business and allowed banks to wipe out the difference in time as well as distance Shastri (2001) analyzed the effect and challenges of new technology for banks. Technology has brought a sea change in the functioning of the banks. The earlier manual system of preparing of vouchers, etc. is slowing being automated thereby saving a lot of time and effort. The use of ATMs and introduction of more than in the past, especially in the post-VRS scenario METHODOLOGY: The Descriptive Research Design methodology was adopted for study and the period of study was from December 2011 to March 2012. Random Sampling method was done and the frame consisted of School students, Graduates and professionals. Out of the whole size only 100 respondents was selected for the study. The Primary data collection was done through structured questionnaire and the Secondary data was collected from past records and publications of research conducted by various scholars on employee morale. The simple percentage method and Chi Square method was used as statistical tools to analyze the collected data RESULTS AND DISCUSSION: The following information contains the data interpretation of the questionnaires. The respondents responses for the questions have been interpreted and a finding has been made based on the respondents responses. Table: 1 Results Showing the Personal Data of the Customers taken for the study S.N 1 2 3 4 Age 18-25 26-35 36-45 Above 46 Total % 41 29 20 10 100 Gender Male Female % 58 42 100 Education SSLC HSS Graduate Professional % 22 32 36 10 100 Occupation Student Government Private Other % 30 25 35 10 100 Salary Less than10,000 1000020000 2000030000 Above Rs.40000 % 46 33 18 3 100
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The above table gives the complete details of the respondents. It shows that 41% respondents are in the age group of 18-25yrs. 29% of respondents are in the age group of 26-35yrs, 20% of the respondents are in the age group of 36yrs-45yrs, and 10% respondents are in the age group of above 46 yrs. Around 58% respondents are in the category of male and 42% respondents are in the category of female. Moreover 10% of the respondents are in the category of Professional. The employment details of the respondents are also found to be 35% in the category of Pvt. Employee. 30% of them in the category of Student whereas 25% of Govt. Employee, and 10% of respondents are in the category of other. From the above table it is inferred that 46% of the respondents earn less than Rs. 10,000, 33% earn Rs. 10,000 to 20,000, 18% earn Rs. 20,000 to 30,000 and 3% earn Rs. 40,000 and above. Majority of the employment from the private sector greatly influence the banking system. Pathrose (2001) in his article clearly states that there is a radical and rapid transformation due to IT. This has increased the private employment opportunities more. SERVICES PREFERRED BY THE RESPONDENTS: Table 2 Results showing the Type of Service Most Preferred by the Respondents Particulars No. of Respondents Percentage ATM Service 38 38 Internet Banking 22 22 Mobile Banking 26 26 Others 14 14 Total 100 100 The above table shows that 38% of respondents prefer the ATM service. 26% of respondents prefer the mobile banking, 22% of the respondents prefer internet banking and 14% of the respondents prefer other service. Husain (2004) also highlighted the importance of IT in various sectors. In the introduction of any new technology or system various organizational, financial and functional problems are faced in the initial stages. People are generally reluctant to accept new system, howsoever beneficial it may be. Table 3: Results Showing usefulness and risk of mobile banking by the respondents Particulars % of respondents Riskness % of risk Useful 65 High 45 Not useful 22 Moderate 35 Not Sure 13 Low 11 No 9 Total 100 From the above table it is inferred that 65% of the respondents say that mobile banking is useful and 22% of the respondents say it is not useful. Around 45% of the respondents are saying that the risk in mobile banking is high and 5% of respondents says the risks are moderate, 11% says the risks are low and 9% are saying that there is no risk in mobile banking. According to Shastri (2001) the effect and challenges of new technology for banks has brought a sea change in the functioning of the banks. The earlier manual system of preparing of vouchers, etc. is slowing being automated thereby saving a lot of time and effort. IMPROVEMENTS NEEDED IN THE MOBILE BANKING: GRAPH1 IMPROVEMENTS NEEDED IN MOBILE BANKING: Sl.No. 1 2 3 S.No. 1 2 3 4
Percentage
100 0
55
20
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The graph shows that 55% of the respondents are saying that improvement in mobile banking is needed. 25% of the respondents feel that they dont need improvement in mobile banking. And 29% of the respondents are in the category of stable MOBILE BANKING IN FUTURE: Graph2 Growth of mobile banking in future by the respondents
The Graph shows that 63% of respondents feel that there will be definitely the growth of mobile banking in the future. And 20% of respondents feel there would not be much growth. And 17% of the respondents are not sure. This indicates that the technology is the only way to reach the goals and a focus on technology will increase like never before to add value to customer services develop newer products, Strengthen risk Management etc.,(Janaki,2002). INCOME LEVEL VS. TYPE OF SERVICES PREFERRED: A Chi2 Analysis Was Performed To Test Check The Relationship Between The Income Level And Types Of Services Preferred From The Banks Types of Services Preferred Income Level Internet Mobile Atm Service Others Total Banking Banking 31 11 4 1 Less than Rs. 10000 47 2 11 6 13 Rs. 10000 to 20000 32 4 0 14 0 Rs. 20000 to 30000 18 Rs. 40000 & Above TOTAL 3 40 0 22 0 24 0 14 3 100
Degree of Freedom (V) = (row-1) (column-1) V= (4-1) (4-1) 3x3=9 Table Value for V=9 (X2) 0.05= 16.919 Calculated Value (X2) =32.58 INFERENCE: The X2 value at 9 degree level of freedom at 5% level of significance is 16.919. The calculated value is greater than the table value; hence the null hypothesis is rejected. There is significant relationship between the income level and types of services preferred. The X2 value at 9 degree level of freedom at 5% level of significance is 16.919. The calculated value is greater than the table value, hence the hypothesis is rejected. TEST 2: The relationship between the level of satisfaction and reason for choosing mobile banking service was also checked with chi square test
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Degree of Freedom (V) = (row-1) (column-1) V= (4-1) (4-1) 3x3=9 Table Value for V=9 (X2) 0.05= 16.919 Calculated Value (X2) =23.92 The X2 value at 9 degree level of freedom at 5% level of significance is 16.919. The calculated value is greater than the table value; hence the null hypothesis is rejected. There is significant relationship between the satisfaction level and the reason for choosing mobile banking service. The X2 value at 9 degree level of freedom at 5% level of significance is 16.919. The calculated value is greater than the table value, hence the hypothesis is rejected. Simple statistical tools like simple percentage and Chi2 analysis are used to calculate the efficiency of various bank groups providing the service of M-banking. On the basis of analysis, the study concludes that there is higher satisfaction level among customers for choosing mobile banking service. The paper also highlights the benefits of M-banking to customers as well as to bankers. CONCLUSION: Without a sound and effective banking system in India it cannot have a healthy economy. The banking system of India should not only be hassle free but it should be able to meet new challenges posed by the technology and any other external and internal factors. For the past three decades India's banking system has several outstanding achievements to its credit. The most striking is its extensive reach. It is no longer confined to only metropolitans or cosmopolitans in India. In fact, Indian banking system has reached even to the remote corners of the country. This is one of the main reasons of Indias growth process. Thus the study says that there is much more need to improve in mobile banking services and it suggests that the concerned banks have to take some initiatives. The bank can post a list of services that they are rendered to the customers inside the bank premises and they can post demo of all these services in their bank website. They can concentrate more on the respondents falling under the age group 18-25yrs.The banks can concentrate on customer complaints handling. The bank can also send a post to their customers informing about their services and how to proceed with that and all details they can mention it in the post. REFERENCES: [1] Avasthi GP, Sharma M (2000-01). Information Technology in Banking: Challenges for Regulators, Prajanan 29(4): 17. [2] Husain F (1988). Computerization and Mechanization in Indian Banks (New Delhi: Deep & Deep Publication) [3] Hussain M.E., and Hassan M.K., 2004. Basel capital requirements and bank credit risk taking [4] in developing countries, working paper, University of New Orleans/Drexel University, LeBow [5] College of Business, Department of Finance [6] B. Janki (2002). Unleashing Employee Productivity: Need for a Paradigm Shift. Indian Banking [7] Association Bulletin. XXIV(3). March. 7-9. [8] Pathrose P P (2001), Hi Tech. Banking Prospects and Problem, IBA Bulletin, Vol. XXIII, No. 7 (July) [9] Shastri R V (2001), Technology for banks in India - Challenges, IBA Bulletin, Vol. XXIII, No. 3 (March) [10] Swami S B and Subrahmanyam G (1993), Comparative Performance of PublisSectoe Banks in India, Prajanan, Vol. 23, No. 2 [11] Verma D (2000), Banking on Change, The icfai reader, May 2008 ----
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HOW DOES TRAINING HELP TO DEVELOP: CAUSE AND EFFECT RELATIONSHIP
S. Amolak Singh, Lecturer, Department of Commerce and Business Management Vivekananda P.G. Collge,Jagtial Road, Karimanagar, India
ABSTRACT Training is an avenue to achieve a highly knowledgeable and skilled workforce. Pharmaceutical industry is very much one that is performance oriented. So, one should able to have a full grasp of the impact of performance. The paper attempts to study the effectiveness of training on development of employees by using the regression analysis. These tests provide us more accuracy or precision desired by the management in their estimates or results is essential before and after any enquiry. The study is based on the primary data. The paper also tries to analyse and compare the opinion of employees on the effectiveness of training in sample unit. The results found that there are divergent views of employees towards training. Keywords: Employee development, Employee performance, Employee up gradation, Impact of training, Regression analysis.
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INTRODUCTION:
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In the past human resources were considered a cost to be controlled. In the new economy it is an asset to be developed. Most companies now or in the near future will face a severe shortage of all types of labour, others indicate that the labour supply will be sufficient but that a rebounding economy will create pressures for companies to secure workers with the right skill sets. Much will depend on the balance between economic growth and technological innovation. External environment changes most often results in internal changes and every time more or less impact on employment skills. However it also creates new jobs that require higher levels of knowledge or skill than the old jobs it eliminated. Organizations are social units where individuals are conscious of their membership and legitimize their cooperative activities primarily by reference to the attainment of impersonal goal. The new competitive standards such as variety of products demanded by consumers, customization of products and services, affordability of convenience by consumers, and shorter product cycles times effect organizational structures, requiring a move away from top down systems towards more flexible networks and cohesive work teams. Technical Changes result in new work process and procedures require constant updating of employer specific technical knowledge. In a world of rapid change, obsolescence is an interminable danger and if skills dont enhance it is like hitting axe on our own feet. As technology replaces more of the hands on work, more employees will be dedicated to service functions where they will spend more time face to face with co-employees and customers. The belief in organizing development programs for workers has taken root after the growing realization by corporate that about 80% of the people or workers and they can make or break the organization and its impact can be measured at several levels of economy, the organization and the employees. Hence, most of the forward looking organizations have focused on developmental programs using the term training to also signify development programs. As training is being increasingly used as a major tool for developing competencies and improving performance in various fields all over the world and companies has begun investing time, money and efforts in exploring ways and means to improve its delivery. Considering the present practices in the corporate sector we may say that the term training is being used for all types of development programs. In addition to technical training with regard to there jobs and machines development programs are being conducted in attitudinal, behavioral and self development areas for employees. A whole set of skills and competencies and a wider range of knowledge is required in the new economy where as training and development has become a critical tool to enable organizations to survive and compete which makes demonstrable difference in the ability to meet the new competitive standards with improved agility to an organization by providing required or forecasted knowledge, skills, attitudes, behavior and competencies which enable them to effectively carry out the machine and objectives of the organization and also continuously gain returns on investment to satisfy needs of customers, stake holders and employees. Finally, there is the issue of attracting and retaining the best people in the industry, which is critical to the success of any organization and is also a very real problem in the pharmaceutical industry at the moment. Developing the skills of employees is now seen as one of the attractions of a good employer and ensuring good personal skills development acts as a retention tool. NEED FOR THE STUDY: Development of the employees depends on the several personal commitment and organizational support. As it is a continuous process at every stage of employment due to change in business requirements, personal or organizational needs and change in attitudes etc. Causes to need for enhancing the skill set of work force. Training seems to be as one of the most effective method in the development of the employees. Especially in the pharmaceutical companies high expertise is required to complete their tasks. With the help of trainings employees can be benefited in several ways like: Fast learning, communicate with experts, understanding the practical problems, practice session etc. OBJECTIVE: To ascertain the significant training variables affect employees development and help the managers in decision making.
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LITERATURE REVIEW: Dayal (1970) Study of jobs and skill analysis is necessary. The training thus imparted would help the employees to adjust to their job requirements. Sundaram (1970) Training needs for supervisors need to be identified through careful observations, which indicate poor performance, low production, high cost, poor product quality, high scrap, spoilage, wastage, accidents, absenteeism, and turnover. Banerji (1981) most of employees thought that training did improve their self-confidence, motivation, identification with the management goals, communication ability and skills. Maheswari (1981) Though managers found training programmes less effective with respect to their contributions to job performance, they did endorse the usefulness of formal training. Bhatia (1981) A shift from knowledge to attitude is the main objective of training and identifies three areas of training: technical, skills and knowledge. He suggests that the emphasis on these three must vary according to the levels of the employees. Agarwal (1982) A study on graduate engineering trainees in three large Public Sector Organizations found that the trainees perceived both the method and contents of the training as demotivating and dissatisfying. Saxena (1997) cited a study conducted by American Society of Training and Development (ASTD) on the practice of evaluation. It was reported that the actual practice of evaluation did not often follow the strict recommendations of evaluation literature. This was largely explained by the fact that many training practitioners had not found the literatures advice applicable or useful for their organisation. Most of the training managers who participated in ASTDs research effort believed that there was value in a concerted effort to increase the practice of employee training evaluation. Srivastava. et al. (2001) evaluated the effectiveness of various training programmes offered by the in-house training centre of Tata Steel, Shavak Nanavati Training Institute (SNTI), India. Effectiveness of training was measured in terms of various outcomes such as satisfaction level, reaction and feedback of participants, and change in performance and behavior as perceived by participants, their immediate supervisors, and departmental heads. SURVEY METHOD AND TECHNIQUE: 150 questionnaires were supplied to the employees of various departments of Dr. Reddys Lab, Hyderabad. However simple random sampling questionnaire methods were used. Out of 150 only 132 responses were collected and 105 (79.54) were found suitable for the purpose of further analysis. STATISTICAL TOOLS: To draw valid conclusions and test them empirically, before starting the regression test the data was tested using mean, median, and mode. Thus test represented the data is partially non normal. The Cronbachs Alpha ( ) test was used to test the reliability and the values are above 0.8480. Where as the value more than Alpha = 0.70 indicate the data is reliable. Thus an extensive statistical technique of multiple linear regression was used to examine the relationship, nature and extent of relationship between training and development variables which includes the ANOVA to identify the existence of relationship. These statistical tests on data were made by using SPSS. Table 1: Mean, Median, Mode rating and Cronbachs Alpha values of Training variables Variable Perfect System Followed To Identify Training Needs Training Content Match The Skill Requirement Combination of Skills Training Fulfill Requirement of Competencies Overall Satisfaction With Training Programs Source: Primary Data Independent X1 X2 X3 X4 X5 Mean 2.62 1.91 2.73 2.28 1.93 Median 3 2 2 2 2 Mode 2 2 1 2 2 Alpha Value ( ) 0.9382 0.8963 0.8940 0.9380 0.9323
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Table 2: Mean, Median, Mode rating and Cronbachs Alpha values of Development variables Variables Training is Useful Multi Skilled Improves The Performance Personal And Organizational Growth Increase Productivity Source: Primary Data HYPOTHESIS: H0: X1=X2=X3=X4=X5=0 (This means Y1 does not depend on any of the Xs) H1: At least one Xi 0 (This means Y1 depends on at least one of the Xs) Table 3: Regression analysis on training is useful for development. Summary Multiple R R2 Adjusted R2 0.660 Mean squares 7.216 0.174 t-Value 2.628 -1.541 4.694 6.226 -6.044 5.810 Std. Error of Estimate 0.417 F- Ratio 41.405 p-value 0.10 0.133 0.000 0.000 0.000 0.000 Dependent Y1 Y2 Y3 Y4 Y5 Mean 2.67 1.85 2.46 1.94 2 Median 3 2 2 2 2 Mode 3 2 2 2 2 Alpha Value ( ) 0.8480 0.8742 0.8843 0.8905 0.8883
0.822 0.676 ANOVA Table Sum of Squares df Explained 36.080 5 Unexplained 17.254 99 Regression Table Coefficient Standard Error Constant 0.641 0.244 Training needs -0.176 0.116 Combination of skills 0.225 0.048 Match content 0.998 0.160 Fulfill requirements -0.642 0.106 Satisfaction level 0.735 0.127 Note: Predictor: (Constant) Training is useful for development Source: Primary Data ANALYSIS:
p-Value 0.000
The adjusted R2 is 0.660 which indicates that approximately 66 percent variation is observed in training is useful for development. This amount of variation caused by providing the necessary content coefficient value is 0.998, satisfying in the total duration of the program 0.735 and maintaining the both skills technical and behavioral 0.225 in the content of training program to enhance the efficiency and as a result to perform better at work place. Thus it implies that one unit increase in content, satisfaction level and combination of skills causes to increase the usefulness of the training program for development is 0.998, 0.735 and 0.225 units respectively. Where as fulfilling the requirements coefficient value is -0.642 and perfect system followed is -0.176. Thus it implies that one unit increase in fulfilling the requirements and perfect system followed causes to decrease the usefulness of the training program for development is -0.642 and -0.176 units respectively. The critical value at 5% level of significance is 2.38 which is less than the F-ratio value 41.405. Therefore, null hypothesis is rejected and we accept above independent variable(s) cause in variation of the dependent variable (Training is useful for development). The p-value 0.000 indicates the independent variables do a good job in explaining the variation in the dependent variable. HYPOTHESIS: H0: X1=X2=X3=X4=X5=0 (This means Y2 does not depend on any of the Xs) H1: At least one Xi 0 (This means Y2 depends on at least one of the Xs)
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Table 4: Regression analysis on training will improve the performance Summary Multiple R R2 Adjusted R2 Std. Error of Estimate 0.309 F- Ratio 76.884 p-value 0.000 0.000 0.175 0.279 0.015 0.442 p-Value 0.000
0.892 0.795 0.785 Sum of Mean ANOVA Table df Squares squares Explained 36.625 5 7.325 unexplained 9.432 99 0.095 Regression Table Coefficient Standard Error t-Value Constant 0.741 0.180 4.106 Training needs 0.117 0.035 5.985 Combination skills 0.212 0.086 1.365 Match content 0.129 0.118 1.088 Fulfill requirements 0.195 0.079 2.476 Satisfaction level 0.072 0.094 0.772 Note: Predictor: (Constant) Training will improve the performance Source: Primary Data ANALYSIS:
The adjusted R2 is 0.785 which indicates that approximately 78.5 percent of the variation is observed in training programs improve performance for their development. This amount of variation caused by maintaining the combination of skills coefficient value is 0.212, fulfilling the requirements 0.195, providing the necessary content 0.129, following perfect system 0.117, and by satisfying in the total duration of the program 0.072 to enhance the efficiency and as a result to perform better at work place. Thus it implies that one unit increase in combination of skills, fulfilling the requirements, content, following perfect system and satisfying in the total duration of the program causes to increase the performance by 0.212, 0.195, 0.129, 0.117 and 0.072 units respectively. The critical value of F at 5% level of significance is 2.38 which is less than the F-ratio value 76.884. Therefore we accept above independent variable(s) cause in variation of the dependent variable (Training will improve the performance). The p-value 0.000 indicates the independent variables do a good job in explaining the variation in the dependent variable. HYPOTHESIS: H0: X1=X2=X3=X4=X5=0 (This means Y3 does not depend on any of the Xs) H1: At least one Xi 0 (This means Y3 depends on at least one of the Xs) Table 5: Regression analysis on training will make the employee multi skilled Summary Multiple R R2 Adjusted R2 Std. Error of Estimate 0.384 F- Ratio 39.2 p-Value 0.009 0.398 0.035 0.932 0.000 0.733
0.815 0.664 0.647 ANOVA Table Sum of Squares df Mean squares Explained 28.943 5 5.789 Unexplained 14.619 99 0.148 Regression Table Coefficient Standard Error t-Value Constant 0.603 0.225 2.685 Training needs 0.091 0.107 0.849 Combination skills 0.094 0.044 2.137 Match content 0.013 0.148 0.085 Fulfill requirements 0.499 0.098 5.099 Satisfaction level -0.040 0.117 -0.342 Note: Predictor: (Constant) Training will make the employee multi skilled Source: Primary Data
p-value 0.000
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ANALYSIS:
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The adjusted R2 is 0.647 which indicates that approximately 64.7 percent of the variation is observed in training makes the employees multi skilled. This amount of variation caused by fulfilling the requirements 0.499, maintaining the combination of skills in training 0.094, following the perfect system to identifying training needs 0.091 and by providing the content matching to required skills 0.013 in training program to enhance the efficiency and as a result to perform better at work place. Thus it implies that one unit increase in fulfilling the requirements, combination of skills, following the perfect system and content causes to increase in making the employees multi skilled by 0.499, 0.094, 0.091 and 0.013 units respectively. Where as, satisfaction levels of training program coefficient value is -0.040. Thus it implies that one unit increase in satisfaction levels causes to decrease the training makes the employees multi skilled by -0.040 units respectively. The critical value of F at 5% level of significance is 2.38 which is less than the F-ratio value 39.2. Therefore we accept above independent variable(s) cause in variation of the dependent variable (Training makes the employee multi skilled). The p-value 0.000 indicates the independent variables do a good job in explaining the variation in the dependent variable. HYPOTHESIS: H0: X1=X2=X3=X4=X5=0 (This means Y4 does not depend on any of the Xs) H1: At least one Xi 0 (This means Y4 depends on at least one of the Xs) Table 6: Regression analysis on training contributes in personal and organizational development Summary ANOVA Table Explained Unexplained Regression Table Multiple R 0.914 Sum of Squares 56.522 11.135 Coefficient R2 0.835 df 5 99 Standard Error Adjusted R2 0.827 Mean squares 11.304 0.112 t-Value Std. Error of Estimate 0.335 F- Ratio 100.505 p-Value
p-Value 0.000
Constant -0.378 0.093 -0.236 0.057 Training needs -0.022 0.196 -1.926 0.814 Combination skills 0.180 0.039 4.672 0.000 Match content 0.064 0.129 0.501 0.618 Fulfill 0.289 0.085 3.390 0.001 requirements Satisfaction level 0.571 0.102 5.615 0.000 Note: Predictor: (Constant) Training contributes in personal and organizational development. Source: Primary Data ANALYSIS: The adjusted R2 is 0.827 which indicates that approximately 82.7 percent of variation is observed in training contributes to personal and organizational development. The amount of variation is caused by satisfying the trainees coefficient value is 0.571, fulfilling the requirements 0.289, by maintaining the combination of skills in training 0.180, and by providing the content matching to required skills 0.064 in training program to enhance the efficiency and as a result to perform better at work place. Thus it implies that one unit increase in the satisfaction level, fulfilling the requirements, maintaining the combination of skills and content causes to increase in the training contributes for personal and organizational development by 0.571, 0.289, 0.180 and 0.064 units respectively. Where as, in identifying the training needs coefficient value is -0.022. Thus it implies that one unit increase in the identifying training needs causes to decrease the training contribution in personal and organizational development by -0.022 units respectively. The critical value of F at 5% level of significance is 2.38 which is less than the F-ratio value 100.505. Therefore we accept above independent(s) variable(s) cause in variation of the dependent variable (Training causes to personal and organizational
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improvement). The p-value 0.000 indicates the independent variables do a good job in explaining the variation in the dependent variable. HYPOTHESIS: H0: X1=X2=X3=X4=X5=0 (This means Y5 does not depend on any of the Xs) H1: At least one Xi 0 (This means Y5 depends on at least one of the Xs) Table 7: Regression analysis on training causes to increase productivity Summary Multiple R R2 Adjusted R2 Std. Error of Estimate 0.296 F- Ratio 121.365 p-Value 0.016 0.474 0.000 0.246 0.000 0.000
0.927 0.860 0.853 ANOVA Table Sum of Squares df Mean squares Explained 53.304 5 10.661 Unexplained 8.696 99 0.088 Regression Table Coefficient Standard Error t-Value Constant -0.426 0.173 -2.460 Training needs -0.059 0.082 -0.718 Combination skills 0.123 0.034 3.621 Match content 0.133 0.114 1.166 Fulfill 0.294 0.075 3.903 requirements Satisfaction level 0.683 0.090 7.596 Note: Predictor: (Constant) Training causes to increase productivity.. Source: Primary Data ANALYSIS:
p-value 0.000
The adjusted R2 is 0.853 which indicates that approximately 85.3 percent of the variation observed in training causes in improved productivity. The amount of variation is caused by satisfying the trainees coefficient value is 0.683, fulfilling the requirements 0.294, providing the content matching to required skills 0.133 and maintaining the combination of skills in training 0.123 in training program to enhance the efficiency and as a result to perform better at work place. Thus it implies that one unit increase in the satisfaction levels, fulfilling the requirements, content and combination of skills causes to increase the training improve the productivity by 0.683, 0.294, 0.133 and 0123 units respectively. Where as, identifying training needs coefficient value is -0.059. Thus it implies that one unit increase in identifying training needs causes to decrease the productivity by -0.059 units respectively. The critical value of F at 5% level of significance is 2.38 which is less than the F-ratio value 121.365. Therefore we accept above independent(s) variable(s) cause in change or variation of the dependent variable (Training causes to improve in productivity). The p-value 0.000 indicates the independent variables do a good job in explaining the variation in the dependent variable. FINDINGS AND CONCLUSIONS: The analysis which has been carried out above has been yielded a number of interested findings concerning the development of employees. The results of investigation of perceptions of the employees towards training program can go a long way in providing the information to management. Identifying the variables which will give effective results and ultimately contribute to reach the peak by work force as well as satisfy the management. Employees are experienced that the content 0.998 and their satisfaction 0.735 are the two significant variables to make the training program useful. Due to the age, experience and attitudes etc. It will become difficult to manage the adults and managing them will become mounty responsibility in the training sessions. If they get feel that this training content does not correlate with their requirements, they start disturbing others which causes to reduce the succession rate of the program. In the current organizational environment, management is expecting high performance with acceptable behavior at workplace. The regression equation value of combination of skills 0.212 indicates that to improve the overall performance of
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the employees organization should provide the training in technical and behavioral skills. Due to inevitable qualities of the human being every organization tries to utilize its employees for several purposes instead of single or limited roles. On the other side it also became necessary to employees to make them multi-facet, causes to increased career development opportunities and enhances the chances of multi utilization of employees by the organization. The regression equation value 0.499 of fulfilling the required skills indicates the more influence on employees to become multi skilled. The common objective of the training program is to improve the efficiency of the employees causes to increased organizational productivity. Due to inappropriate identification of training needs and improper training design, management fails to provide all those benefits as they expected to provide and in practical it is not possible to provide every thing what trainee requires. On other side practically management unable to fulfill all the requirements of every employee due to the individual differences in the requirement the content, combination of skills and fulfilling the all other requirements causes to still they lack with some skill set. But if the training succeed in providing all current and near future required competencies then, employees may be satisfied. The regression equation value of satisfaction 0.517 indicates that the content of the training program has fulfilled their required competencies which cause to improve their performance and help for personal and organizational growth. The ultimate purpose of any skill up gradation program is to increase the output of the employees. The regression equation value of satisfaction 0.683 indicates that the training has made them to produce more or enhanced their capacity. By the means of using empirical research data, the study has managed to present striking results regarding significant predictors of development. The outcome of the results is able to stretch the influence of training in enhancing the competencies. The results of this research revealed that Content and satisfaction levels are caused to be high variation in making the training useful to improve the work efficiency. Combination of skills are caused satisfactory variation in the improving the performance of the employee. In making the employees multi-skilled major variation caused by fulfilling the requirements. Personal and organizational growth and increased productivity is caused by satisfying the employees at training period. Poor variation is observed by few predictors but it is not possible that development depends on one or few variables. This fluctuation may be occurred due to sample population (n), change in departmental needs, and employees perception and so on. For development variables like, training improved the performance, useful for personal and organizational growth, and training always make the employees to produce more; indicate that employees and organization has benefited with the training programs. REFERENCES: 1. Anthony, Una and Ian (2003), Yield managment (2/e), Thomson learning, bangalore 560099, pp: 131 137. 2. Aswathappa (2010), Human Resource management: Text and cases (6/e),Tata Mc Graw Hill publishing house limited, New Delhi 110008, pp: 238 264. 3. Beri (2003), Marketing research (3/e), Tata Mc Graw hill publishing house limited, New Delhi 110008, pp: 120 127, 234 245 & 282-297. 4. Beri (2008), Business Statistics (2/e), Tata Mc Graw Hill publishing company ltd, New Delhi 110008, pp: 72 90, 140 149, 300 318, & 361 477. 5. Bhattacharya (2010), research methodology (2/e), excel publications, new Delhi- 110028,pp: 112 - 122. 6. Biswajeet (2002), Human Resource management (eastern economy edition), Prentice Hall India, New Delhi 110001, pp:143 165. 7. Blanchard and Thacker (2009), Effective training (3/e), Perason education, Delhi 110092, pp: 4 19, 30 51, 79 81, 101 139 and 440 456. 8. Decenzo & Robbins (2001), Human Resource management (7/e), John welly & sons India, Kondli 131028, pp: 215 230. 9. Dessler (2004), Human Resource management (9/e), Pearson Education, Delhi 110092, pp: 187 210. 10. French & Bell Jr. (2001), Organizational Development (1/e), Pearson Education, Delhi 110092, pp: 243 250. 11. Gupta (2002), Statistical Methods (13/e), Sultan Chand & sons, New Delhi, pp: 1110 - 1120. 12. Gupta (2005), Fundamentals of Statistics (6/e), Himalaya Publishing house, Mumbai 40004, pp: 1.5 1.9, 2.4 2.5.
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13. Indartono and vivian chen, Moderating effects of tenure and gender on the relationship between perception of organizational politics and commitment and trust, South Asian Journal of managment, Vol:18, issue No: 1, jan-march 2011, pp: 8-14. 14. Jyothi and Vekatesh (2009), Human resource management (1/e), Oxford university press, New Delhi 110001, pp: 166 191. 15. Kothari (2007), Research Methodology (2/e), New age International, New Delhi 110002, pp:130-144. 16. Michael (2004), Research Methodology in management (5/e), Himalaya publishing house, Mumbai400004, pp: 254 - 269. 17. Rathan Reddy (2007), Effective human resource training and development strategy (2/e), Himalaya publishing house, mumbai 400004, pp: 13 18, 20 27 and 452 466. 18. Richard and David (1994), Statistics for Management (6/e), Prentice hall India, New Delhi 110001, pp: 648 657. 19. Quader, Perception of Leadership Styles and Trust Across Cultures and Gender: A Comparative Study on Barack Obama and Hillary Clinton, South Asian Journal of managment, Vol: 18, Issue No: 2, AprilJune 2011, pp: 30-48. 20. Satish & Srininvasan (2010), Total quality Management and innovation performance: An empirical study on the interrelationship and effects South Asian journal of management, vol: 17, issue No.3, July-September 2010, pp: 8 - 20 and 85 90. 21. Shaun tyson (2003), Strategic Prospects for HRM (2/e), Jaico publishing house, Mumbai 400023, pp: 232 242. 22. Thirupathi (2002), Human resource Development (3/e), Sultan chand & sons, New Delhi 110002, pp:131 146. 23. Tull & Hawkins (2001), Marketing research: measurement and method (6/e), Prentice Hall India, New Delhi 110001, pp: 543 547. 24. Venkata Ratnam and Srinivasan (1999), Personnel management and Human resources (11/e), Tat Mc graw hill publishing company, New Delhi 110008, pp:148 163. 25. Wilkinson and Bhandarkar (2000), Methodology and techniques of social research (16/e), Himalaya publishing house, Mumbai - 400004, pp: 76 88. ----
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RESTRUCTURING - A SUCCESSFUL TURNAROUND STRATEGY: CASE OF DELTA AIRLINES
Dr. Sneha Mankikar, Assistant professor MBA Krupanidhi School of Management, Chikkabellandur, Bangalore, India
ABSTRACT Delta Air Lines was the third biggest airlines in the US in the early 2000s. After the 9/11 incident airline industry has faced lot of problems employees as well are passengers. Problems like the pilot union impasse, increasing operational expenses and legacy costs, falling yields and severe competition from low cost airlines had cropped up. The case discusses about the restructuring strategy that the airline industry adopted as a turnaround strategy, emergence of Song and shares as to how they revived from the bankruptcy. When Delta Air Lines emerged from bankruptcy in the fall of 2007, their goal was to come back stronger than ever. Drawing on years of experience with Delta and sister-carrier Song, MKG has developed a progressive experiential strategy that elevates the brand identity while simultaneously highlighting on the brands strengths: global scope, diverse resources & partnerships, and industry-leading hospitality. Keywords: Case Study, Strategy, Airlines Industry
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INTRODUCTION:
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What started as a humble, little aerial crop dusting operation called Huff Daland Dusters in 1924 has now grown into one of the worlds largest global airlines, helping more than 160 million travelers get to the places they want to go to each year. Delta Air Lines was the third biggest airlines in the US in the early 2000s. After the September 11 attacks, which led to the decline of the airline industry in the US, many of the major carriers in the industry went bankrupt. Delta was one of the few major carriers that managed to stay afloat. However, in mid 2004, the airline announced that it might have to file for bankruptcy protection if it failed to obtain pay cuts of $1 billion from its pilots, who were the only unionized employees at the airline. The case discusses the problems at Delta and their role in the financial decline of the airline. Issues like the pilot union impasse, increasing operational expenses and legacy costs, falling yields and severe competition from low cost airlines are discussed in detail. The case also outlines the restructuring plan of Delta, and the future of Song, the airline's low cost subsidiary. ISSUES: To appreciate the issues facing airlines in the early 2000s, which were thought to be the most difficult years in the history of airlines To analyze the problems facing a major full service carrier in the US airline industry To understand the power of unionized labor in the US airline industry To study the increasing power of low cost airlines in the US and the sources of their competitive advantage To examine the restructuring plan of an airline on the verge of bankruptcy and to analyze its potential efficacy in restoring the airline to profitability DELTA'S RESTRUCTURING PLAN: Amidst speculations of a Chapter 11 filing by the end of 2004, Delta Air Lines Inc. (Delta), the third largest airline in the United States, announced in early September 2004, that it would embark on a major restructuring program aimed at restoring the airline to profitability by the end of 2006. The restructuring would involve making significant changes in the way the airline operated and include major cost cutting initiatives. As a part of the program, Delta announced the layoff of 7000 workers. The restructuring would involve making significant changes in the way the airline operated and include major cost cutting initiatives. As a part of the program, Delta announced the layoff of 7000 workers (approximately ten percent of its workforce) over a period of 18 months. The airline also planned to slash 90 percent of its flights into and from Dallas (one of its major hubs) by February 2005, eventually leading to the shutdown of the hub. More than 2000 of the layoffs would also be from Dallas. Company officials announced that retained workers would also have to take deep cuts in their wages and other benefits during the restructuring. These steps were expected to save Delta $5 billion by 2006, and help restore financial stability. Top officials at Delta said that the restructuring was designed to launch the 'right airline for the new era'.6 Delta's CEO Gerald Grinstein (Grinstein) described the program as a "comprehensive, 360-degree plan that reinvents Delta."7 Delta had been making losses since 2001 and was fast depleting its cash reserves. It was also burdened by over $20 billion in debt, $1.2 billion of which was due to be repaid by early 2005. In addition to this, analysts were downgrading Delta's credit rating at frequent intervals, and this made it expensive for the airline to borrow funds to meet its financial obligations. Delta's predicament was similar to that of several other airlines in the US. The exceptions in the airline industry were the low cost airlines, namely Southwest Airlines (Southwest), JetBlue Airlines (JetBlue) and AirTran Airways (AirTran). Operating in an industry that was unpredictable at the best of times, airlines had to deal with difficult situations as part of the nature of their operations. Analysts said in September 2004, that the restructuring would help Delta recover in the long run, but that the airline was very likely to enter bankruptcy in the shorter term. Delta's management had also warned that it would file for bankruptcy if its pilots union refused to accept wage cuts by the end of September 2004. "If we cannot make substantial progress in the near term toward achieving a competitive cost structure that will permit us to access the capital markets on acceptable terms, we will need to seek to restructure our costs
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under Chapter 11 of the U.S. Bankruptcy Code," the airline said in its second-quarter report to the Securities and Exchange Commission.8 Delta's history can be traced back to 1924, when Huff Daland Dusters, an aerial crop dusting company, was set up in Georgia (USA) by B.R Coad (Coad) and C.E Woolman (Woolman), who were associated with the US Department of Agriculture. In 1928, Woolman bought out Coad's stake in the airline and renamed it Delta Air Service. In 1929, Delta diversified from crop dusting and made a foray into passenger airline services. The first passenger flight flew from Dallas (Texas) to Jackson (Mississippi) in the same year. In 1934, the airline's name was changed to Delta Air Lines and subsequently, in 1941, its headquarters were moved from Monroe in Louisiana to Atlanta in Georgia. In 1945, Delta was officially incorporated as Delta Air Lines Inc., with Woolman as the President and general manager, and the airline continued to expand through the late 1940s. In 1953, Delta merged with Chicago and Southern Airlines, thus adding more routes, especially in the upper Midwest and Caribbean regions. Delta pioneered the hub-and-spoke flight system in 1955, where passengers were brought to a hub airport from various smaller places and then connected with other planes to their final destinations. The late-1950s, the airline adopted its logo of a red, white and blue triangle resembling the swept-wing appearance of a jet. Woolman died in 1966 and was succeeded by Charles Dolson (Dolson). Soon after Dolson took over, the crop dusting division of the company was shut down, and Delta began focusing on passenger services. In 1970, Delta entered the wide-body jet era with the purchase of Boeing 737 aircraft, which could carry more passengers farther, and at a cheaper overall cost. In 1971, W.T. Beebe became the Chairman and CEO of Delta. In the same year, the company started Delta Dash, a cargo service for small packages. In 1972, Delta purchased Northeast Airlines, which strengthened its presence in the northeastern parts of the US... DELTA'S DIFFICULTIES: Analysts said that Delta's problems were primarily a result of the airline's bloated cost structure and extremely high cost of labor. They said the operational elements of the airline were also more suitable to a time when people were willing to pay a premium for quality air service, and had become obsolete in the early 2000s In the late 1990s and early 2000s, the airline industry had changed and many of the older airlines like Delta found it difficult to adapt to the new paradigm. It was estimated that Delta had lost over $5.6 billion in the period between 2001 and mid-2004. It was also burning cash very rapidly and had used up $700 million of its unrestricted cash reserves within the first six months of 2004. (Analysts expected the airline to burn cash at the rate of $350 million per quarter for the rest of 2004 as well.) Analysts said that one of the main reasons for the high cash burn rate was the contribution to pension funds, which rose drastically in 2004, as many of Delta's pilots opted for early retirement. However, there were several other problems which the airline also needed to tackle, before it could be restored to financial health... PILOT PROBLEMS: In 2004, Delta was involved in long drawn negotiations with its pilots union - the Airline Pilots Association (ALPA), aimed at getting the union to accept pay cuts that would help the airline balance its precarious cash position. Comparatively, captains of similar-sized jets were paid around $113,000 a year at American Airlines and $152,000 a year at Southwest. Delta pilots also enjoyed more generous work rules, benefits and furlough protections than pilots at other airlines. Many analysts believed that excessively high pay and benefits for pilots were the main reason for the high labor costs at Delta. THE ROAD AHEAD: By mid 2004, there was no doubt that a comprehensive restructuring program was the need of the moment at Delta. Analysts said that, while Delta had managed to stay in a relatively better position than United, US Airways and American, it was fast going downhill. Despite passenger numbers increasing marginally in 2004, Delta was not only still making losses, but the quantum of the losses was rising. Analysts also expected the airline to keep posting losses, given that fuel costs were expected to rise by $680 million in 2004, and that its cash reserves were declining rapidly due to pension payments and increased
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operational expenses. In August 2004, Grinstein announced a comprehensive restructuring plan, called 'The Delta Solution', aimed to put Delta back on the growth path. "Decisive and comprehensive, this is a 360-degree plan which, when complete, will transform our product, fleet, network, and cost structure into an airline that is designed to carve out new and previously uncharted network airline territory," said Grinstein in his presentation of the plan to the board. DELTA TODAY: "We've made significant strides to reduce our greenhouse gas emissions and are pleased to now be a part of an organization that verifies and validates our commitment," said Ken Hylander, Delta's Senior Vice President Corporate Safety Security & Compliance. "Increased transparency is a significant part of Delta's efforts to build a business model that continually improves sustainability over the long term, which is why we support consistent and transparent standards to calculate, verify and publicly report greenhouse gas emissions." Delta continues to invest in fuel-savings initiatives such as improving operating procedures, removing unnecessary weight, installing aircraft winglets and retiring inefficient aircraft and replacing them with planes that produce fewer emissions per passenger. The airline has lowered its annual absolute greenhouse gas emissions by 7.6 million metric tons since 2005, a 17 percent reduction in six years. Delta also supports greenhouse gas emissions goals of the International Air Transport Association and Airlines for America, including improving average fuel efficiency by 1.5 percent by 2020, stabilizing emissions with carbon neutral growth from 2020 and reducing net emissions by 50 percent by 2050, relative to 2005. Delta has achieved the annual fuel efficiency goal each year since the goal's inception in 2009. "Climate-Registered organizations understand that there are both environmental and economic benefits to understanding and managing your carbon footprint," said David Rosenheim, Executive Director of The Climate Registry. "Delta has become part of a powerful community of Climate-Registered organizations, with substantive data guiding and supporting its sustainable activities." The Climate Registry is a non-profit organization that operates the only carbon footprint registry in North America supported by states, provinces, territories and tribes. Registered companies demonstrate environmental leadership by identifying and managing their greenhouse gas risks and opportunities. To achieve membership, organizations must undergo a rigorous verification of their greenhouse gas inventories by an external Verification Body in accordance with The Climate Registry's General Reporting Protocol. SCS Global Services provided third-party verification for Delta. "We commend Delta for committing itself to this critical task and joining other corporate leaders pursuing common-sense climate solutions," said Eileen Claussen, President of the Center for Climate and Energy Solutions. "Measuring and verifying emissions is an essential step in effectively managing them." Delta last year joined the Center for Climate and Energy Solution's (C2ES) Business Environmental Leadership Council (BELC). Delta Air Lines serves more than 160 million customers each year. During the past year, Delta was named domestic "Airline of the Year" by the readers of Travel Weekly magazine, was named the "Top Tech-Friendly U.S. Airline" by PCWorld magazine for its innovation in technology, won the Business Travel News Annual Airline Survey and was the recipient of 12 Executive Travel Magazine Leading Edge Awards for U.S. airlines. With an industry-leading global network, Delta and the Delta Connection carriers offer service to nearly 315 destinations in 59 countries on six continents. Headquartered in Atlanta, Delta employs 80,000 employees worldwide and operates a mainline fleet of more than 700 aircraft. A founding member of the SkyTeam global alliance, Delta participates in the industry's leading trans-Atlantic joint venture with Air France-KLM REFERENCES: [1] Filiz McNamara, O. U. (February 21, 2011). Improving Deltas Profit Margin. [2] Financial times (Filiz McNamara, February 21, 2011 [3] www.delta.com ---International Refereed Research Journal www.researchersworld.com Vol.IV,Issue1(2),January 2013[55]
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PERFORMANCE APPRAISAL WITH REFERENCE TO TEXTILE SECTOR IN COIMBATORE
H.Geetha, Assistant Professor Department of Management (PGDM), Sreevee Business School, Dindigul, India.
ABSTRACT The present study was under taken with such a task in mind and it aims at unearthing the strengths and weakness of the current performance appraisal system in textile industry Coimbatore that is prevalent in the organization that sponsored this research work. Since organizations exist to achieve goals. The degree of success that individual employees have in reaching their individuals goals is important in determining organizational effectiveness. The assessment of how successful employees have been at meeting their individual goals, therefore, becomes a critical part of Human Resource Management. This leads us to the topic of Performance Appraisal. This project aims at knowing Performance Appraisal System in this research has studied the work atmosphere and the welfare measures provided by the organization. It also aims at finding out the employees relationship with the management. This survey is done within the organization. The sample size is 110. The data was collected by administering questionnaire and by adopting direct personal contact method. The persons met are all employees of the industry. Collections of data were analyzed and tabulated in a sequential manner and the interpretations are given along with the tabulation. The conclusion observations are also given in this report for the improvement of this system in the organization. Keywords: Appraiser, Self reliant, Appraisal, Judgmental, Distributive, Interactional
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INTRODUCTION: The performance appraisal plays a vital role in identifying the productivity of workers; it also helps the company for its overall growth. It is the systematic evaluation of the performance of employees and to understand the abilities of a person for further growth and development. Performance appraisal is generally done in systematic ways which are as follows, the supervisors measure the pay of employees and compare it with targets and plans, the supervisor analyses the factor behind work performance of employees, and the employees are in the position to guide the employees for a better performance. In India, Textile Industry is one of the oldest and foremost industries and it provides tremendous opportunities for employment and huge amount as revenue. The Indian Government is also playing a major role in promoting the textile industries. Cotton is the most popular fiber and used to make clothing. Textile Industry is providing one of the most basic needs of people and it hold importance. Maintain sustained growth for improving quality of life. It has a unique position as a self-reliant industry, from the production of raw materials to the delivery of finished products, with substantial value-addition at each stage of processing; it is a major contribution to the countrys economy. TEXTILE INDUSTRY IN COIMBATORE: Coimbatore is called the South Indian Manchester. The climate in Coimbatore city is very favorable for the development of textile industries. The easy availability of raw materials, sufficient skilled laborers, humid and soft wind prevailing in Coimbatore district are the other major factors for the development of the textile industry in Coimbatore. There are 98 textile firms in Coimbatore district in which few of the industry are taken into account for the study on the same. India has abundant natural resources in terms of availability of natural fibers like cotton, silk, wool etc. India is the third largest producer of cotton in the world and accounts for about 12% of the total world production. The availability of cheap cotton has been one of the biggest advantages to Indian exporters. OBJECTIVES: To study about the employees opinion about performance appraisal. To gain practical knowledge about the various factors that forms part of performance appraisal To study about how they view the present appraisal method To provide opportunities for the employees to express their ideas
REVIEW OF LITERATURE: Mowday, R.T., Steers, R.M., Porter, L.M. 1979 an employees perception of justice in the performance appraisal process will also affect the effectiveness of the performance appraisal process. Justice is thought to have three categories, procedural, distributive, and interactional justice. In a performance appraisal setting, a lack of justice in one area is predicted to have the same effect as a violation of justice in all areas. If an employee perceives that the system processes are fair, the supervisors efforts to distribute rewards and punishments based on outcomes of the process, and that the employee is treated fairly, the employees perception of justice will be high. Craig Eric Schneier and Richard W. Beatty, July 1979 Despite its standard practice in most public and private organizations for more than 50 years, performance appraisal still has many problems. Raters show resistance to criticizing subordinates, and the judgmental aspect of evaluating human performance is subject to both covert (subjective and individual) and overt (prejudice and bias) errors. Raters often aren't trained in employee counseling and may be forced to conduct performance appraisals with inadequate or erroneous information about rate performance. American Institutes for Research, Washington, D.C.: AIR, 1979 In a 1984 study in New England, 16 raters (Extension administrators designated by their state Extension director as having agent performance appraisal responsibility) completed EABRARS on 141 rural New England Extension agents.5 Reliability analysis of the total ratings indicated that EABRARS was an internally consistent, highly reliable instrument. Differences between New England agents were detected at the .05 confidence level with respect to age, subject-matter area, years of experience, and state of employment.
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Nemeroff & Wexley, 1979 study shows that employees are likely to feel more satisfied with their appraisal result if they have the chance to talk freely and discuss their performance. It is also more likely that such employees will be better able to meet future performance goals. Employees are also more likely to feel that the appraisal process is fair if they are given a chance to talk about their performance. This especially, when they are permitted to challenge and appeal against their evaluation. Proper feedback has to be given about their performance to the appraises. Robert M. Guion, the State of the Art, November 5-6, 1982, pp. 3-4Twenty years ago, nearly all civil servants in the central government of OECD member countries were paid according to service-incremental salary scales. This is not to say that civil servants previously lacked performance incentives. Promotions, and especially those into senior management, were rigorously controlled, serving partly as an incentive but partly also as a way of ensuring the independence of the public service with regard to the executive and thus its ability to serve governments of different political persuasions. Remuneration has been seen as an alternative or a complementary incentive to promotion. Socio-economic pressures have led to the need for types of incentives other than promotion to strengthen performance management. Craig Eric Schneier and Richard W. Beatty, May 1988 To try to rectify some of the problems, Smith and Kendall developed Behaviorally Anchored Rating Scales, better known as BARS. The BARS format deals with measurable behaviors, not personality, provides raters and rates with clear statements of performance goals, and is based on a specific, thorough job analysis. Using BARS, raters focus on specific rate behaviors. These behaviors are compared to specific examples (job dimensions and anchors developed from the job analysis) that provide concrete benchmarks for making appraisal judgments. BARS are mainly used to measure the behaviors of rates. Dulewicz (1989), a basic human tendency to make judgments about those one is working with, as well as about oneself." Appraisal, it seems, is both inevitable and universal. In the absence of a carefully structured system of appraisal, people will tend to judge the work performance of others, including subordinates, naturally, informally and arbitrarily. This study, by Heneman, Greenberger & Anonyou (1989) reported that in groupers are subordinates who seem to be favored by their supervisors. In their relationship with the boss, they enjoy "a high degree of trust, interaction, support and rewards." Tsui, A.S. & OReilly, C.A. 1989 most studies focus on the performance appraisal where the supervisor evaluates his or her employees. In this paper, based upon two research projects, we look at both sides of the coin. In one study subordinates evaluated their supervisors, in the other one the focus was upon supervisors perception of their subordinates. The contribution aims to determine whether age-related stereotyping plays a significant role in performance appraisals. In both studies, it was determined whether the assesses age is negatively related with the assessors view on his or her competencies. Age is taken into consideration for appraisal rating in the above study. Longenecker (1989) argues that accuracy in performance appraisal is impossible to achieve, since people play social and political games, and they protect their own interests. "No savvy manager...", says Longenecker, "... is going to use the appraisal process to shoot himself or herself in the foot."Accuracy in performance appraisal is a major drawback to the system. Recent research (Bannister & Balkin, 1990) has reported that appraisees seem to have greater acceptance of the appraisal process, and feel more satisfied with it, when the process is directly linked to rewards. Such findings are a serious challenge to those who feel that appraisal results and reward outcomes must be strictly isolated from each other. Rewards and work performance are directly linked with each other. METHODOLOGY OF THE STUDY: The study was more of a descriptive in nature and it was the survey research design that was used in, by taking a sample of elements at one point of time. The researcher adopted this type of research design to systematically gather the information from the respondents for the purpose of understanding and predicting some aspects concerned with the performance appraisal system in their organization. The sample unit of the study was 110 employees of Textile Company in Coimbatore Primary data: Primary data has been collected through a structured questionnaire. Secondary data: Secondary data has been collected from the books, journals, project reports and Internet.
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Data was collected through structured questionnaire. The questionnaire was divided into three parts First section dealt with the queries relating to the personal details of the employees Second section dealt with the queries relating to the awareness about performance appraisal Third section dealt with queries relating to views about the present appraisal system. TOOLS FOR ANALYSIS: The primary data for the study was collected through structured questionnaire and has been analyzed using percentages and represented by pie charts and bar diagrams are used wherever necessary. Mean score value has also been used. 1) Score value = No. of respondents*score Mean score value = score value/No. of respondents 2) Percentage value = no of respondents/total no of respondent*100 CHI-SUARE [X2] TEST: X2 test is based on the Chi- Square distribution and it is a parametric test. It is used for comparing a sample variance to a theoretical population variance. In a non- parametric test, no assumption about the parameters of the population is made. These tests have become very popular because, they can be applied in any type of distribution, they are easy to compute and they can be used in situations when parametric test cannot be applied. Conditions to be satisfied for applying chi-square test 1) Data should have been collected at random. 2) Items constituting the sample should be independent. 3) The total number of items should be at least 50. ANALYSIS & INTERPRETATION: TABLE INDICATING THE AGE AND EDUCATION FACTOR OF THE EMPLOYEE: FACTORS \ AGE & EDUCATION DIPLOMA UNDER GRADUATE POST GRADUATE ENGINEERING 20-35 12 9 3 1 36-45 5 16 3 8 46-55 20 7 10 6 >56 8 2 0 0
From the chart above it is understood that most of the employees in textile industry fall under the category of the age group between 46-55 years and also most of the employees are from the under graduate background.
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TABLE INDICATING THE YEARS OF SERVICE AND THE INCOME OF EMPLOYEES YEARS OF 5001 8000 >8001 SERVICE / <3000 3001 5000 INCOME < 2 YEARS 2 6 0 0 2 5 YRS 0 5 0 0 6 10 YRS 0 2 10 1 >10 YRS 0 0 15 67 From the chart above it is clearly understood that the workers with more than 10 years of experience only earning a return of Rs. 8001 and more. The employees with more years of service are expected to perform well as they have very good experience in their work.
FACTORS INFLUENCING PERFORMANCE APPRAISAL Ranking Factors Dependability Discipline Initiative Cooperation Job knowledge Attendance Behavior & attitude towards superior Quality of work Behavior & attitude with peers Achievements of targets 1 0 18 0 15 16 16 13 14 0 18 2 0 6 24 3 6 12 13 21 13 12 3 12 19 12 7 10 11 5 16 4 14 4 13 8 15 26 6 6 5 12 5 14 5 13 15 6 21 21 9 3 6 13 3 6 11 4 13 17 27 5 2 15 2 14 7 15 12 5 7 12 15 15 5 20 4 8 14 1 9 14 12 12 27 1 7 1 9 6 315 12 0 0 20 14 12 13 18 10 26 0 14 0 0 4 13 8 33 12 TSV 750 541 607 514 529 593 678 503 778 557 Rank 2 7 4 9 8 5 3 10 1 6
The ranking of factors given by the respondents show that behavior with peers, dependability, behavior and attitude towards superiors, initiative, and attendance were ranked very high. They felt those factors have to be given higher weightages in the appraisal form. There are respondents who have ranked quality of work and cooperation on lower side. There were respondents who felt that all the factors in the appraisal system should be given equal weightage and there was no meaning in awarding high weightages to few factors.
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OPINION ABOUT THE PERFORMANCE APPRAISAL RATING SCALE VIEWS Need of Appraisal for employee Knowledge about the exact appraisal system Raters encouragement in Cooperation among Employee Opportunities provided by raters to increase job satisfaction Assistance by organization in fulfilling the potentials Extent of closeness between formal appraisal rating and corresponding monetary reward Possibility of unbiased assessment of performance relative to that of the colleagues Satisfaction with the present confidential system 5 15 10 15 10 10 5 0 10 4 65 50 55 60 50 63 46 44 3 30 30 35 35 45 32 50 48 2 0 20 0 0 5 8 7 6 1 0 0 5 5 0 2 7 2 MSV 3.86 3.45 3.68 4.18 3.59 3.55 3.23
3.49 MSV=3.63 The above table clearly shows that opportunities to increase job satisfaction, need of appraisal for employee, encouragement by raters and knowledge about the appraisal system, are high for employees. Assistance by organization, monetary reward unbiased assessment and satisfaction with the present system were rated average. This may be due to reasons like the employees are not given feedback about their performance since it is maintained confidentially. But the need of appraisal, knowledge about system, encouragement and opportunities to employees were rated high because they want to know about their work performance. CHI-SQUARE ANALYSIS: GENDER AND YEARS OF SERVICE: TEST STATISTIC: Null hypothesis (Ho): There is no significant relationship between gender and years of service. Alternative hypothesis (H1): There is a close relationship between gender and years of service. OBSERVED VALUE: GENDER MALE FEMALE TOTAL EXPECTED VALUE: 99*10/110 9 11*10/110 1 99*5/110 4.5 11*5/110 0.5 99*13/110 11.7 11*13/110 1.3 99*82/110 73.8 11*82/110 8.2 2 YEARS 10 0 10 2-5YRS 3 2 5 6-10YRS 10 3 13 >10YRS 76 6 82 TOTAL 99 11 110
CALCULATED VALUE X2 = (O-E)2 /E WHERE O = OBSERVED VALUE E = EXPECTED VALUE CALCULATED VALUE = 2.73 DEGREE OF FREEDOM = (2-1) * (4-1) = 3 degrees of freedom @ 5% level of significance. TABULATED VALUE = 7.815 RESULT: The result that the calculated value is less than the tabulated value, we accept the null hypothesis. Therefore, there is no significant difference between the gender and years of service.
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MARITAL STATUS AND MONTHLY INCOME (in Rs): TEST STATISTIC: Null hypothesis (H0): There is no significant relationship between marital status and monthly income of the individuals. Alternative hypothesis (H1): There is a significant relationship between marital status and monthly income of the individual. OBSERVED VALUE: Marital Status Married Unmarried Total EXPECTED VALUE: 85*2/110 1.5 25*2/110 0.5 85*15/110 11.59 25*15/110 3.41 85*25/110 19.32 25*25/110 5.68 85*68/110 52.54 25*68/110 15.45 <3,000 0 2 2 3001 5000 7 8 15 5001 8000 20 5 25 > 8001 58 10 68 Total 85 25 110
CALCULATED VALUE X2 = (O-E)2 / E WHERE O = OBSERVED VALUE E = EXPECTED VALUE CALCULATED VALUE = 16.58 DEGREE OF FREEDOM = (2 1) * (4 1) = 3 degrees of freedom @ 5% level of significance. TABULATED VALUE = 7.815 RESULT: The result that the calculated value is more than the tabulated value, we reject the null hypothesis and accept the alternative hypothesis. Therefore there is a significant difference between the marital status and monthly income. CONCLUSION: From the study it if found out that, most of the respondents feel that the appraisal system creates confidence and hence increase the production level of the employees which in turn will increase their income in one hand. Many employees in the textile industry are not aware of the errors that is caused by performance appraisal like halo effect, horns effect, central tendency and leniency. Majority of them have no idea about errors and its types in the appraisal system. Good training can help improve the appraisal system to prevent errors while rating. Raters are expected to observe the performance in order to judge ones effectiveness and skill in the work condition. Also the superior should avoid bias in appraising their subordinates. The system could be made open to a possible extent and discussions could be encouraged. The employees can come to know about their performance appraisal, how are they rated and what other improvements they can do to their performance. The organization might take up steps to arrange discussions and make the employee aware of how he is getting along and what improvements he needs, where and how he can best utilize his capabilities and skills. Most traditional methods emphasize either the task or the personality of the individual while making an appraisal. In such evaluations, bias always prevails. To bring about a balance the evaluation of task and personality and the modern methods of appraisal by results of MBO can be used.
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Performance appraisal motivates employees and influences their productivity and ensures that they are producing at acceptable levels. Performance evaluation system could be linked to company objectives to get better results and good performance of the employees. Effectiveness of any appraisal system depends on how all the users of the system understand the purposes, accept and strive for achieving them. For designing any system, employee and managerial performance should be taken into consideration. From the study, it is found that feedback to the employees is not proper in the organization. Periodical and routine feedback can be given to the employees for their good performance in the work, which motivates the employee to enrich the relationship between the superiors and subordinates. REFERENCES: [1] Palmer, J.K. and Feldman, Jack M, Accountability and Need for Cognition Effects on Contrast, Halo, and Accuracy in Performance Ratings, Journal of Psychology, 139 (2), 2005, 119-137 [2] F. J. Landy, And Farr, J. L. Performance Rating, Psychological Bulletin, 87, 1980, 72-107 [3] Murphy K.R. and Cleveland, J.N. Performance Appraisal: An Organizational Perspective, Boston: Allyn and Bacon, 1991 [4] Roberts G.E., The Influence of Participation, Goal Setting, Feedback and Acceptance on Measures of Performance Appraisal Effectiveness,, Dissertation Abstracts International (Doctoral dissertation, University of Pittsburgh, 1990 [5] Arvey, R.D., &Murphy, K.R. (1998), Performance evaluation in work settings. Annual Review of Psychology. 49:141-168. [6] Baker, G.P., Jensen, M.C., & Murphy, K.J. (1988). Compensation and incentives: Practice vs. theory. The Journal of Finance, XLIII, 1988. [7] Bandura, A, 1977. Social Learning Theory. Englewood Cliffs, New Jersey: Prentice-Hall. [8] Barney, J., 1991. Firm resources and sustained competitive advantage. Journal of Management, 17:99-120. [9] Barney, J., 1986. Organizational culture: Can it be a sustained competitive advantage. Academy of Management Review, 11(3): 656-665. ----
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PRIMARY SCHOOL TEACHERS VIEWS AND PRACTICES TOWARDS ICT IN RURAL AREA (A CASE OF SOUTH SOLAPUR)
Prof. Dayanand Dundappa Mhetre Assistant Professor, B.Sc. (Chem) M.C.A Bharati Vidyapeeth Deemed University, Pune, India.
Mr. Sachin Surywanshi, Librarian, Abhijit Kadam Institute of Management and Social Sciences, Solapur, India.
ABSTRACT The focus of the study is the investigation of primary school teachers ICT relates practices and views. This study indicated the need for further teacher training that goes beyond the development of basic ICT literacy skills, putting emphasis on educational use of ICT and schoolbased programmes. This paper relates to primary school teacher's use of ICT for various activities. Data is presented that illustrates primary teachers' attitudes towards ICT and its use for various activities; their access to ICT and satisfaction with this; their views about students interest in the ICT, views about school practices and views about their knowledge and skill towards ICT; and their use of ICT including frequency of use, and factors that influence their use. Keywords: Administration and management, ICT, Primary teachers, Views and Practices
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INTRODUCTION:
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Solapur is a beautiful city of India, that is located about 433 km from Mumbai and 244 km from Pune. It is basically found on the south-eastern border of Maharashtra state and touches the border of Karnataka state. Solapur contains eleven talukas and the administrative work of North and South Solapur is going on. Solapur was known as the labour city because of the textile capital city in ancient times. The literacy rate on average in Solapur is an incredible 71.2%, 7.5% higher than the national average of 59.5%. Again males seem to dominate the percentage in this area with male literacy at 82% and females at 59.8%. Solapur city provide connectivity between the Andhra-Pradesh, Maharashtra and Karnataka with an important junction situated on the north-south railway line and also connected by both road. Religious place close to the Solapur city like Akkalkot and Pandharpur found located here. If you look at Solapur geography, you find that it is located between 17.10 to 18.32 degrees to the north latitude while it is about 74.42 to 76.15 degrees to the east longitude. On reading about Solapur geography, you learn that it covers an area of 14844.6 sq. km which covers about 4.83% of Maharashtra State. A majority of the land in Solapur is rural; to be precise, 338.8 sq. km of Solapur is urban area while the remaining 14505.8 km of Solapur is plain, rural area. Information and communication technologies (ICT) are increasingly being used to deliver on promises of universal education. The most of the use of ICT have attracted by academia, business, government and communities to use it for innovative profitable propositions. Now and in the coming days it is becoming simpler to use devices like desktop palm top, iPod etc. Information and communication technologies (ICT) are increasingly being used to deliver on promises of universal education. Indian Government has announced that 2010-2020 as the decade of innovation. For the innovation skills like reasoning and Critical thinking are necessary. Building the base of these skills is laid at school level. For developing the required skill of student now it is pleasing that reasonable ICT tools and techniques should be include into classroom instructions right form primary stage. With the use of web most of the tools, techniques and tutorials are available in Open domain. Now there is an uptrend to adopt ICT based technologies in schools and other educational institutions. Many schools have adopted ICT based dynamic and exciting virtual learning methods in which students access to study materials, skills questions, sample papers and assignments. Some of the schools are using smart interactive white boards for teaching. Pupils find it more interesting and they become more skilled in ICT related subject when engaging with them in their assignments. Now days Computers are very important in education sector and becoming a popular tool and computers take place early in primary school for supporting the teachers and students in teaching and learning process. However, the computer used in the schools between the teachers varies depending on their knowledge and experience. Using technology in their classrooms is the biggest obstacle for the teachers because of lack of adequate teacher training. Hence it is necessary to provide more support and technical knowledge of computer practically and other ICTs in the educational system. LITERATURE REVIEW: PANAGIOTIS GIAVRIMIS & STELLA GIOSSI & ADAMANTIOS PAPASTAMATIS (2011): The ndings of the research study show that one of the main reasons for primary schoolteachers participation in ICT programmes is their interest in exploiting ICT, in both their teaching and in their personal lives. They consider lifelong education as necessary to the practice of teaching anduseful in settling educational inequalities, while at the same time they think that in-service education should be in accordance with the requirements of the modern social-cultural environment1. YILDIRIM (2010): Which investigated 120 pre-service teachers' attitude towards computer showed no gender differences in attitude towards computer2. LEVIN AND WADMANY (2007): Emphasize the importance of a clear focus on teachers attitudes, values, and beliefs as a primary focus in supporting teacher learning3.
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VARANK (2006):
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Found that learning computer literacy skills in a classroom or laboratory environment motivates students more than learning these skills in a computer based environment4. IAN SELWOOD (2004): The findings point to low levels of use of ICT for administration and management. Reasons for this lack of use relate to lack of quality training and the availability of time and quality ICT resources5. (BECTA, 2004c): Indicated that as teachers age increases, the percentages of teachers using computers and the internet decreases6. (BECTA, 2003): Research on teacher workloads is extensive but there is relatively little on the role ICTcan play in reducing teacher workloads7. (YILDIRIM, 2000): Research supports the idea that the biggest obstacle to teachers using technology in their classrooms is the lack of adequate teacher training8. ATHANASIA MARGETOUSAKI, ANDREAS KOLLIAS, PANAGIOTIS MICHAELIDES: This study indicated the need for further teacher training that goes beyond the development of basic ICT literacy skills and also they do not believe that ICT will bring any innovative changes in teaching methods and practices9. PELGRUM (1993): schools, whose principals have positive expectations regarding the educational impact of com-puters, tend to emphasize computer integrated learning more than schools with principals who are less positive (p. 209)10. SIGNIFICANCE OF THE STUDY: As a teacher plays very prominent role in moulding up tomorrows citizen, the teachers should possess training in using the most modern technologies in the field of education. So the views and practices of teachers is very important as it is a tendency which helps them to be favorable or unfavorable towards the usage of most modern technology in the field of education. The introduction of ICT in education will encourage and motivate the students to explore new areas of advancement with reference to its latest developments in various subjects. OBJECTIVES: 1. To find out the literacy of teachers towards ICT 2. To find out the primary teachers different views towards ICT 3. To find out the current practices of ICT. DEFINITION OF ICT: The ICT Stands for "Information and Communication Technologies." ICT refers to technologies that provide access to information through telecommunications. The term Information and Communication Technology means the storage, retrieval, manipulate, transmit or receive information electronically with the use of computers or computer related technology
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METHODOLOGY: SAMPLING:
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In total 100 teachers participated in the research. The teachers were belonging to three different areas like taluka place, town and village. Among the 100 respondents 10 are principles of schools, 65 are computer education teachers and 25 are the other subject teachers. Teachers were categorized depending on their age (less than equal to 30, in between 31 to 50 and above 51) as youth, middle age and older. The participants were asked to complete a questionnaire tested previously in a pilot study. The questionnaire was consisted of closed and open questions designed to collect data on all three objectives. Descriptive statistics were used for the analysis of the data. RESULT AND ANALYSIS: AGE WISE RESPONDENTS INTEREST TOWARDS USE OF ICT: Table 1.1 showing the Age wise Respondents Interest towards use of ICT Age Category Youth Middle age Older Own PC 22% 4% 1% use of computer 58% 11% 4% Use of Internet 48% 9% 1% Use of e-mail 40% 8% 1% VideoConferencing 1% 0% 0%
Youth: age below 30
Middle Age: age between 31-50
Older: age above 51
Reference to the previous table the table no 3.1 (Teachers ICT related practices) which is categorized the teachers with their age, total 27% teachers are having their own pc at home, among that 22% youth teachers, 4% middle age teachers and only 1% older age teachers are having their own pc at home. In the same way total no. of teachers that they use computer is 73%, among that 58% youth teachers, 11% middle age teachers and 4% older age teachers use computer. 58% teachers use the internet among that 48% is youth, 9% are middle age and 1% is older teachers. In the same way 49% teachers use the internet among that 40% are youth, 8% are middle age and 1% are older age teachers. The use of video-conferencing in the middle age and older age is 0% but 1% in the youth. The awareness is not created about the video conferencing in the primary school level education, so usage is negligible. SCHOOL ARCHITECTURE ABOUT ICT: Table 1.2 showing the School Architecture about ICT No. of Computer Labs are as per student capacity Computers are sufficient as per students capacity Availability of Internet connection to the computer in the school Printer, scanner and other hardware are available as per the need Software's are available as per my need Yes 17% 24% 64% 98% 86% No 83% 76% 34% 2% 14%
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The above table shows the school architecture about the ICT and teacher's interest and satisfaction about the hardware, software and other ICT component. 83% teachers are not satisfied with the statement that ' No. of computer labs are as per student capacity', and 17% teachers are agreed for the above statement. 76% teachers are not agreed that 'computers are available as per the student capacity', 24% teachers agreed the statement. Internet is most useful technology for the education system. 64% teachers are saying that they are having internet connection in their school and 34% teachers are not agreed to this. The most basic components of the ICT are printer, scanner, mouse, CD-ROM and other hardware. 98% teachers are posted the report that these basic peripherals are available as per the need. And only 2% teachers are not agreeing. Software is the basic and important part of the ICT. 86% teachers submitted the report that 'software's are available as per the need'. And 14% teachers are not agreeing for this statement. TEACHERS VIEWS ON ICT: OBSERVATION AND OPINION OF THE TEACHERS ABOUT THE STUDENTS TOWARDS ICT: Table 2.1 showing the Observation and Opinion of the Teachers about the Students towards ICT Views of teachers about the students towards ICT teaching. S.D. Dis. Agree S.A. students are enjoying the ICT teaching 7% 10% 48% 35% students become nervous with ICT Teaching 35% 53% 7% 5% ICT makes students more productive 6% 10% 45% 39% ICT makes students learning faster and easier 6% 9% 56% 29% In all tables VSD=Very strongly Disagree, SD= Strongly Agree, Dis=Disagree, SA=Strongly Agree, VSA= Very Strongly Agree
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The table shows the opinion about the student towards ICT. In total 83% teachers are positive about the statement that students are enjoying the ICT Teaching, among that 48% teachers are agree and 35% teachers strongly agree. Whereas total 17% teachers are not agree with the statement. Students become nervous with ICT teaching for this statement total 88% teachers reported negative report, among that 35% are strongly disagree and 53% are disagree. Whereas 7% teachers are agree and 5% are strongly agree with the above statement. 43% teachers posted the report that ICT makes students more productive and 39% teachers are strongly agree with the statement. Whereas 10% teachers are disagree and 6% teachers are strongly disagree about the statement. ICT makes student learning faster and easier, 24% teachers are strongly agree and 56% teachers are agree with this statement. Whereas 9% are disagree and 6% are strongly disagree about the above statement. TEACHERS VIEWS ABOUT THE SCHOOL PRACTICES TOWARDS ICT: Table 2.2 showing the Teachers Views about the school practices towards ICT School Practices towards ICT Does your school have ICT specialized teacher has your school implemented/introduced a remote education system by using internet (e-learning) Does your school has intranet Does your school has electricity backup facility Yes 8% 59% 92% 02% No 92% 41% 8% 92%
In the above result 92% teachers are saying that there is no specialized teacher appointed in their school where as 8% teachers posted the report that their school appointed the ICT specialized teachers. 59% teachers agreed that their school has introduced an e-learning facility. Descriptively they are using online pictures, images and animated movies for childrens as a part of syllabus. 41% teachers are not agreed about this. 92% teachers submitted the report that intranet is available in their schools whereas 8% teachers replied that there is no intranet is available in their school. 98% teachers are saying that there is no electricity backup facility is available in their school. Whereas 2% teachers are saying that they are having the backup facility. TEACHERS VIEWS ABOUT THEIR SKILL/KNOWLEDGE: Table 2.3 showing the Teachers views about their Skill/Knowledge I know but, I never used 1% 18% 10% 16% I have good knowledge about this 15% 6% 11% 11% I need practice and training 14% 30% 28% 29% I need most of the skills 12% 20% 26% 19% Skill is sufficient for my need 21% 12% 15% 16% I have sufficient skill to teach others 37% 14% 10% 9%
Teachers Skill / Knowledge Word processor Power point presentation Spreadsheet Database
I dont know 0% 0% 0% 0%
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Internet e-mail Videoconferencing Multimedia software Peripheral devices Desktop application Programming
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0% 0% 70% 8% 0% 0% 5%
2% 8% 10% 51% 0% 16% 80%
29% 36% 1% 5% 27% 10% 1%
16% 12% 15% 12% 9% 19% 11%
13% 10% 4% 16% 5% 21% 2%
29% 24% 0% 5% 29% 24% 1%
11% 10% 0% 3% 30% 10% 0%
By the above table it is clearly identified that all the teachers are computer literate. An initial benchmark of the percentage of teachers who responds positively to any of the three statements I need most of the skills, skill is sufficient for my need and I have sufficient skill to teach others is used. Across all primary schools, six software application attract agreement from 50% or more, word processor (70%), spreadsheet (57%), internet (53%), email (51%), peripheral devices (64%) and desktop (O.S.) (55%). The percentage of teachers who responds negatively for the two statements I dont know, I know but I never used. Across all primary schools three applications attract agreement from 50% or more, video-conferencing (80%), multimedia software (59%) and programming (85%). All the primary school teachers are computer literate and most of the teachers make the maximum use of applications like word processor, internet, peripheral devices and operating system. Video conferencing, multimedia and programming these applications are not used by the majority of the school teachers.. At the end of the questionnaire open ended questions were asked to give example of what they needed to further develop their role through use of ICT. In response to both questions the most common response was need for more and better training for staff and need for time to practice what they learnt. TEACHERS ICT RELATED PRACTICES: Table 3.1 showing the Teachers ICT Related Views Teachers ICT related Practices I have my own PC (Personal Computer) at home Yes, I use computer Yes, I use Internet Yes, I use e-mail Yes, I use video-conferencing Agreeing 27% 73% 58% 49% 1%
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It is interesting to point out that 27% teachers reported that they are having their own pc at home, 73% teachers said that they use computer, 58% teachers agreed that they use internet, 49% teachers using e-mail and only 1% teachers use video-conferencing. The internet users among the computer users are considerably high. But the teachers lack in use of video-conferencing because of its complication, and this is only 1% which is very negligible. The e-mail users are average users. TEACHERS USE COMPUTERS: Table 3.2 showing the Computer used by Teachers I use computer for to make teaching material I use computer for communication purpose I use computer for administration purpose I use computer for entertainment S.D. 10% 14% 4% 4% Dis. 17% 20% 8% 8% Agree 43% 41% 56% 52% S.A. 26% 25% 32% 36%
FREQUENCY OF COMPUTER USED BY TEACHERS: Table 3.3 showing the Frequency of computer used by Teachers
Don't use 6% 29% 9% 3% less than once a month 30% 20% 19% 6% At least once in a month 27% 32% 26% 10% At least once in a week 29% 12% 28% 30% 1-2 hours a day 6% 4% 16% 31% More than 2 hours a day 2% 3% 2% 20%
Teaching Material Communication Administrative Entertainment
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Teachers are using the computers for various school and personal activities (for example preparing the teaching material, internet access, watching video, movies, listening music, for the communication purpose, preparing result sheet, maintaining the student record and other school and personal work,); the above table shows the frequency of the use of computer by the teachers. 6% teachers are not using computer for preparation of teaching material, whereas 30% teachers use computer for making a teaching material less than once in a month, 27% teachers using computer for the same at least once in a month, where as 29% teachers using at least once in a week and 6% are using 1-2 hours per day and only 2% teachers using more than 2 hours per day for making a teaching material. By using the internet peoples can make the communication with their friends, relatives and other related peoples, they use chat, email, video conferencing or any social networking site like facebook, orkut etc. here 29% teachers are not using such facility. They dont use computer for communication purpose. Whereas 20% teachers are using less than once a month. 32% teachers use at least once in a month and 12% teachers use computer for communication at least once in a week. Daily 1-2 hours used by 4% teachers. And 3% teachers use daily more than 2 hours. 9% teachers are not using the computer for administrative purpose and they perform the entire administrative task manually. Whereas 19% teachers use less than once a month. 32% teachers use a computer for administrative work at least once in a month. Whereas 28% teachers use at least once in a week. 16% teachers use 1-2 hours daily and 2% use more than 2 hours daily. By using computer we can watch video, movies, listen music, download songs like mp3, mp4, 3gp video, and also we can play the games online, download the games etc. but in this research the researcher identified that 3% teachers are not using the computer for such type of entertainment. 6% teachers using it for less than once a month. Whereas 26 teachers are using it for at least once in a month and 28% teachers use at least once in a week. And 16% teachers are using 1-2 hours daily and 2% is using more than 2 hours daily. KEY FINDINGS: The researcher identified that the youths are very much interested in the use of ICT, and also use of computer, internet and email in youth is very high as compared to middle age and older age teachers. Students are very much interested in learning ICT and they enjoy ICT teaching. The researcher found that the teachers have positive attitude towards use of ICT School Practices towards ICT is very weak because of lack in infrastructure, non-availability of resources like (lab assistant, software, computers) CONCLUSION: It can be concluded beyond doubt that primary school teachers have positive views about the use of ICT however it is been found that their level of actual use of ICT is quite low. They use ICT for different purposes namely administrative work, preparing teaching material, communication and for entertainment. It is been found that all the teachers are computer literate. They have working knowledge of computers and most of them confessed that they need to have more training to acquire higher skills. The researcher could identify that they are very much keen to undertake such training. It has come to the observation of the researcher that the ICT architecture is not maintained the way it is required to, they need to have assistance from professional institutions. Schools are suggested to have MOU or collaboration with such professional bodies operating in the nearby vicinity.
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REFERENCES:
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[1] Teachers attitudes towards training in ICT: a critical approach Panagiotis Giavrimis, Stella Giossi, Adamantios Papastamatis, (2011) "Teachers' attitudes towards training in ICT: a critical approach", Quality Assurance in Education, Vol. 19 Issue: 3, pp.283 296. [2] Yildirim, S. & Kaban, A. (2010). Attitudes of pre-service teachers about computer supported education. International Journal of Human Sciences, 7(2). Retrieved 1 July 2011 from, http://www.insanbilimleri.com/ojs/index.php/uib/article/view/1102/576 [3] Levin, T. & Wadmany, R. (2007). Teachers beliefs and practices in technology-based classrooms: A developmental view. Journal of Research on Technology in Education, 39(2), 157181. [4] Varank, I. (2006). A comparison of a computer based and lecture based literacy course: A Turkish case. Eurasia Journal of Mathematics, Science and Technology Education, 2 (3), 112-123. [5] Ian Selwood Primary School Teachers' Use of ICT for Administration and Management The University of Birmingham, School of Education, Edgbaston, Birmingham, UK Information Technology and Educational management in the knowledge society IFIP TC3 WG3.7, 6th International Working Conference on Information Technology in Educational Management (ITEM) 2004 ISBN: 978-0-387-24044-2. [6] BECTA. (2004c). Enabling teachers to make successful use of ICT. Coventry: BECTA. Retrieved 15 July, 2008 from http://partners.becta.org.uk/page_documents/research/enablers.pdf [7] Becta, (2003). What the research says about ICT and reducing teacher workloads. Coventry: Becta. www.becta.org.uMresearchiictrn [8] Yildirim, S. (2000). Effects of an educational computing course on Pre-service and In-service Teachers: A Discussion and Analysis of Attitudes and Use [Electronic version]. Journal of Research on Computing in Education, 32(4), 479-497. [9] In-service and pre-service primary school teachers' views and practices on ICT: a Greek case study Athanasia Margetousaki, Andreas Kollias, Panagiotis Michaelides: Department of Primary Teachers Education, University of Crete, Greece. [10] Pelgrum, W. J. (1993). Attitudes of school principals and teachers towards computers: Does it matter what they think? Studies in Educational Evaluation, 19(2), 199-212. ----
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CAPITAL BUDGETING - A REVIEW OF THE THEORETICAL AND PRACTICAL ASPECTS
Sushma Verma Asst. Professor Sinhgad Institute of Business Management Mumbai, India.
ABSTRACT Capital Budgeting Decisions are among the most crucial decisions for any Business Organization as they are related directly to the growth and survival of the firm. It is considered to be one the major four decision areas falling within the scope of financial management. There are various stages in the process of Capital Budgeting. Present scenario of unpredictable inflation and borrowing costs has made it a very difficult decision. Futurity of implications adds to the risk in the process of Capital Budgeting making it further difficult to take a rational investment decision. Main Objective of this paper is to understand the various stages in the process of Capital Budgeting and the practices commonly employed. This is done through systematic analysis of the literature. Keywords: Capital Budgeting process, Decision rules, Discounted Techniques, Non discounted techniques.
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INTRODUCTION:
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Capital Budgeting Decisions are considered to be one of the core four major decision areas falling within the scope of financial management. As per Olawale etal. 2010, Capital Budgeting has been described as the formulation and financing of long term plan for investment. Capital Budgeting and Investment Decisions are generally considered as synonyms. Keeping in mind the present scenario which comprises of unanticipated changes in inflation, cost of financing and other unpredictable economic difficulties, capital budgeting decisions can be considered as one of the most difficult decisions since they involve the assessment of future conditions. As per Bierman&Smidt, 1993:4, if the expected benefits are likely to accrue over a relatively long period of time, the solution is more complex and chances of making an incorrect decisions increases. Capital Budgeting Decisions are supposed to be very important decisions affecting the survival and growth of the company. Business Enterprises across the globe have been undertaking various types of capital investment Projects. The process of choosing capital investment projects for investment requires the application of capital budgeting techniques. Even in the Indian Context, as per Shweta Singh, P.K Jain &Surendra . S. Yadav(2012), trend towards increasingly sophisticated and sound capital budgeting techniques have continued in India. Highlighting the significance of capital budgeting techniques, a number of empirical studies have been conducted to find the correlation between the usage of sophisticated scientific capital budgeting techniques and firms performance. However the results obtained are mixed and varies depending upon the variables chosen . Objective of this paper is to analyze the theoretical and conceptual aspect of capital Budgeting process. Research Methodology: Research Methodology used can be described as exploratory and descriptive based on systematic analysis of the existing literature on the subject matter. Capital Budgeting Process: Capital Budgeting process can be defined as the art of finding assets that are worth more than what they cost( Richard pike, 1981). As per Newland &Oost(1997:2), capital Budgeting is the process of identification, evaluation& selection of the long term or fixed assets that will increase shareholders value. Thus Capital Budgeting essentiallyis the decision of any firm of investment in those fixed assets which give them benefits which are more than its cost. It incorporates the decision as to the amount of fund to be invested and also the selection of long term assets in which the investment needs to be done. Empirical Researches have suggested that the process of capital Budgeting varies from industry to industry.( HO and Pike , 1998; Kaka et al, 1985; Aggarwal, 1980) There are two main approaches to the process of capital Budgeting. They are:- Normative approach and Process approach. Normative approach focuses on financial evaluation, selection of assets for long term investment and also on the development of advanced capital budgeting techniques.(Madhani&Pankaj(2008).Angelou and Economides(2009). Process approach is broader in perspective and it focuses on actual ways by which investment decisions are actually taken in companies. Depending upon the way the capital budgeting process is influenced by investment decisions, there are three categories of investment projects. These are: Mutually exclusive investment projects, Independent projects and contingent project. Those projects which can not be pursued simultaneously because they serve the same purpose are called as mutually exclusive projects. Acceptance of one project necessarily involves the exclusion of others. Independent projects serves different purposes and hence do not compete with each other. Acceptance of one project does not lead to elimination of other projects or even does not necessarily reduces their chances of acceptance or rejection. Contingent projects are those dependent projects whose acceptance or rejection depends upon acceptance or rejection of other project. Empirical literature suggests that there are several options as far as the stages in the process of capital Budgeting is concerned. Maccarronne(1986) has identified six fundamental phases in the process of capital
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budgeting. It comprises of the following: Identification of investment opportunities, development and evaluation of each alternative investment proposal followed by its screening, project approval, implementation/ control and then finally post auditing. As per Koch et al.(2009), there are six stages in the process of Capital Budgeting. They are identification, search, acquisition of information, selection, financing and finally implementation and then control. As per Burns and Walker (2009), there are four phases in the process of Capital Budgeting. They are identification, development, selection and control. However from the above mentioned literature analysis, it can be said that though the usage of terms may vary, process sequence remains the same and it comprises of the following: 1. Identification , Development of Investment Proposal 2. Financial Evaluation 3. Implementation 4. Project review /Post Implementation Audit IDENTIFICATION OF INVESTMENT PROPOSAL: This is considered to be an important step in the process of capital Budgeting. Investment opportunities should fit in with in a larger framework of corporate goal, vision and long range strategic plan. Investment proposals can also be suggested and suggestion can come up from any level of hierarchy, many a time through informal employee chat also. In case of several firms, a separate R & D division is also created for generation of new ideas which can be later converted into investment proposals. All investment proposals under consideration are subjected thereafter by management to preliminary screening process. Preliminary screening involves usage of basic quantitative techniques and Qualitativejudgment. FINANCIAL EVALUATION: Investment proposals which are passed in stages of preliminary screening are evaluated strictly in financial parameters to assess if they are truly profitable to the organization. As per (Brain Baldin, 1997), financial appraisal may predict the expected future cash flow of the project, analyze the risk associated with the cash flow, develop alternative cash flow forecast, examine the sensitivity of the results to possible changes in predicted results cash flows, subject the cash flow to stimulation and prepare alternative estimates of the projects net present value. In this stage following steps are involved: 1. Measurement of Income/ Cash Flow 2. Estimation of Cost of capital 3. Application of appropriate decision rule. MEASUREMENT OF CASH FLOW/ INCOME: This is one of the most crucial steps in the process of Capital Budgeting. Most of the techniques of Capital budgeting is based on the concept of Cash flow. Whereas only one technique that is Accounting rate of return is based on the concept of Accounting profit. No amount of sophistication at the later stage can lead us to the correct decision if the prima facie there is a mistake in the estimation of cash flow/ accounting profit. ESTIMATION OF COST OF CAPITAL: Cost of capital determination is also a very important step in the process of capital budgeting. Cost of capital of any project is the minimum rate of return which a firm needs to earn of the amount of funds committed to the project. It is also known as cut off rate or hurdle rate. It depends on the risk characteristics of its cash flows. Given the involvement of huge volume of funds in Capital Expenditure Projects, it is imperative to select right technique for estimation of cost of capital. At this juncture it is important to mention that cost of capital of individual projects is different from the firms cost of capital. Firms cost of capital will be an overall or the average required rate of return on aggregate investment projects.As per Ivanovic, Karanovic& Bogdan(2010), cost of capital depends upon the structure of the collected capital necessary to start the investment project. Gitman and Mercurio(1982) surved 177 fortune 1000 firms
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regarding their practices in measurement and utilization of cost of capital and concluded that the practices of the company does not go along with the concepts and theories of Financial management. As Per a study conducted by U.Rao Cherurkuri(1996) on selected Indian and South East Asian Companies, WACC is the most widely used discount rate.Graham and Harvery (2001) conducted a comprehensive survey of US companies and they concluded that Capital Asset Pricing Model (CAPM) was the most popular method of estimating the cost of equity. In a survey conducted by Mc Laney et al.(2004) of UK companies, it was concluded that CAPM is must popularly used for estimation of cost of capital and also that more than half of he survey companies used Weighted Average Cost of Capital (WACC) for project appraisal. Thus we can safely conclude from the above references that WACC is used commonly as a discount rate and CAPM is used for estimation of cost of equity. APPLICATION OF DECISION RULE: There are various techniques of capital budgeting in practice which are available. They are also known as capital budgeting decision rules. They are Net Present Value(NPV), Internal rate of return(IRR), Profitability Index(PI) , Accounting rate of return(ARR) and Payback Period. In these, the first three are referred to as Discounted Capital Budgeting Technique as they are based on the concept of time value of money . Last two are called as non discounted technique. They are also known as Nave techniques of Capital Budgeting(Bierman&Smidt, 1993).In addition to the above we also have an modified version of Pay back technique taking into account time value of money which is called as discounted Pay Back technique. Copeland and Weston (1992) , came up with a number of criterion to be fulfilled for any capital Budgeting techniques to be considered as appropriate for the objective of Shareholders Wealth Maximization. Some of them are: 1. All Cash flows till the end of project life needs to be considered 2. Cash Flow should be discounted so as to arrive at their Present Value 3. Capital Budgeting Technique should be capable of selecting that project which can lead to shareholders wealth maximization 4. It should also be in a position of considering one projects independently of all the projects (Value additive Principle) As Per Copeland&Weston(1992), Pay Back Period and Accounting rate of return clearly fails to fulfill first two criterion. Discounted Pay Back period considers time value of money but still suffers from same weakness as Pay Back Period (NorthCott, 1995). As Per Copeland and Weston(1992), IRR does not fulfill fourth criterion of Valve Additive Principle. Whereas Net Present Value (NPV) techniques fulfills all of the above mentioned criterion. There are various empirical studies showing the preference as to the choice of capital budgeting techniques. In NPV technique, expected net cash flows are discounted using a discount rate. Discount rate is a sum of risk free interest rate and risk premium rate (Qizhi, 2009). In situation of Capital rationing problem occurs in using NPV method. In that case IRR or PI method is used. Initially non discounted techniques were preferred over the discounted techniques due to the lack of awareness of sophisticated computer technology. Later studies saw a change in trend. As Per Miller (1960). Pike (1966), Schale, Sundem&Geijsbeek(1978), Pay Back period was considered as the most preferred one. As per Blatt(1979), A Payback time limit is used by almost every responsible manager. Prassana Chandra (1975) conducted a study of 20 Indian Companies and observed that Pay Back Period is the most commonly used method for evaluation of small size investment. For large size investment, ARR is primarily used followed by Pay Back Period as supplementary criterion. Klammer(1972) concluded that there is a preference for discounted cash flow technique. Existing Literature clearly suggests that IRR is always more preferred by management as compared to NPV technique which is against the fundamental concepts as provided in text books. As per Evans and Forbes (1993), management considers IRR as more efficient measure of comparison. Empirical Researches have also shown that Companies tend to prefer a combination of method for evaluation of capital Budgeting proposals. In a study conducted on Indian Companies by Porwal(1976), it
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has been observed that most of the companies were using a combination of Traditional and Modern Evaluation techniques for capital expenditure Proposals. As per Ann, Farragher and Leung (1987), In Malaysia, Singapore and Hongkong, Companies prefer using several Techniques in Evaluating an Capital Investment project. Risk should be thoroughly considered in the process of Capital Budgeting. Risk basically means the uncertainty as to the predicted outcome. Nonconventional techniques for the risk handling in capital Budgeting are Payback Period, Risk adjusted discount rate and Certainty Equivalent. There are also other sophisticated techniques for risk analysis like Sensitivity analysis, Scenario Analysis, Decision tree etc. As per Smith, 1994 they can be classified into two categories, Intuitive and analytical. As per the study conducted by Hogaboam and Shook(2004), companies rarely use CAPM or other sophisticated technique for risk adjustment. Instead of that they shorten their pay back period, raise the required rate of return or subjectively adjust the cash flow to incorporate risk. However other Empirical Evidence suggests that sensitivity analysis and scenario analysis are conducted in many countries for risk assessment. Kester et al; Kester&Tsui(1998); and Ryan & Ryan (2002)researched that companies prefer to use Scenario and sensitivity analysis for risk assessment. However it is very important at this level to mention that Capital Budgeting decisions are not based entirely on financial factors. As per Chan (2004), Capital Budgeting decision making process depends both on Quantitative factors as well as Qualitative factors. Significant Qualitative factors include strategic planning, Social responsibility, employee morale, employee responsibility, corporate image and market share. Meier and Tarhan(2007) concluded that the usage of more sophisticated capital budgeting method is also related to CFOs education. Later on Brunzellet. al.(2011) have also concluded that the sophistication of the capital budgeting is related both to the company and CFO characteristics. IMPLEMENTATION: This stage comes after the decision to accept an investment proposal has been taken by the management. In this stage monitoring of the project progress is also done so as to keep a check on the progress of the project as per stipulated guidelines. Post Implementation Audit: this stage is basically the post mortem of past implemented projects. Analysis of past decisions goes a long way in improving the current decision making process. As per Drury et. Al (1993), If the projects which were undertaken in the past within the organizations current strategic plan framework do not turn out to be as lucrative as per the prediction, the information may prompt management to consider a thorough review of the organizations current strategic plan. CONCLUSION: Correct Capital Budgeting Decision making is very crucial for the survival of companies, so this area has always interested management professionals. It has always been a focal area for academicians as well to analyze and find out ways to help companies improve their capital investment process. But any study for improvement in any process has to ideally start with the thorough understanding of process itself first. Best Practices of capital Budgeting will always be in lines with finance theory. So going by this it can be said that companies can increase the shareholders wealth by choosing the right technique of capital Budgeting. Emphasis should be on the application of scientific methods of appraisal of capital expenditure projects. This will lead to greater efficiency. Strong management accounting information system will be instrumental in setting up of a system which involves scientific appraisal of all proposed capital expenditure plans. REFERENCES: [1] Aggarwal,Raj.(1980),Corporate Uses of sophisticated Capital Budget Techniques: A strategic perspective and a critique of Survey Results, Interfaces 10( No.2, April 31-34) [2] Angelou,G.N; Economides,A.A.(2009).,A compound real option and AHP methodology for evaluating ICT business alternatives Telematics and Informatics,VOL.26, Issue 4,353-374 [3] Ann,W.K., Farragher,E.J., and Leung,R.K(1987),Capital investment Practices : A survey of large Corporation in Malaysia,Singapore and Hongkong Asia Pacific Journal of Management,4(2),112-23
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[4] Babu,C.P; and Sharma,A;(1996): Capital Budgeting in Indian Industry: An Emperical Study Administrative Staff College of India (ASCI) Journal of Management 25 [5] Bierman,H and Smidt,S.(1993), The Capital Budgeting Decision. 8th Edition, NewYork: Macmillan, 591 P. [6] Blatt,JM(1979). Investment Evaluation under Uncertainity, Financial management,8(2): 66681(2) [7] Brain Baldwin(1997) : Economic Justification of Process improvement and automation projects,ABB Industrial System Inc [8] Brunzell T, LiljeblomE,Vaikekoski(2011),Determinants of Capital Budgeting Methods and hurdle Rates in Nordic Firms Account.Finance51(4): 1-26. [9] Burns,R.M.,Walker,J.(2009). Capital Budgeting Surveys: the future is now Journal of Applied Finance,Vol.19,Issue1/2,78-90 [10] Chan,Y.C.L.(2004), Use of Capital budgeting techniques and an analytic approach to capital investment decisions in Canadian Municipal Governments, Public Budgeting & Finance, Vol.24 No.2,pp.40-58. [11] Chandra,P(1989). Financial management :- Theory and Practice.New Delhi: Tata MC GrawHill [12] Copeland ,Thomas E. and J. Fred Weston(1992) Financial theory and Corporate Policy, Reading: Addison Wesley publishing Company,Inc., 1st Edition [13] Drury.C. Braund,S., OS borne.P, and Tayles,H(1993), A survey of Management Accounting Practices in UK Manufacturing Companies. Chartered Association of Certified Accoauntants, London. [14] DU Toit, G.S.,Neuland,E.W and Oost, E.J.1997. Capital Investment Decisions., Pretoria: Unisa Press,321 P. [15] Evans,Dorla A. And Shawn M. Forbes,1993,Decision making and Display methods: The case of prescription and practice in Capital Budgeting, The Engineering Economist 39(No.1,fall),87-92 [16] Gitman,Lawrence J. And Vincent Mercuria,(1982), Cost of Capital Techniques used by major U.S firms: Survey and Analysis of fortunes 1000, Financial management 11( No. 4. Winter),21-29. [17] Graham J. and C. Harvey(2001),The Theory and Practices of Corporate Finance: Evidence from the field, Journal of Financial Economicss60(2-3),187-243 [18] Hogaboam,L.S and Shook,SR.(2004), Capital Budgeting Practices in the US Forest product industry: a reappraisal, Forest product Journal, Vol. 54 No.12, pp149-58 [19] Ivanovis,Z; Karanovic,G; and Bogdan,S;(2010), Impact of Discount rate on the decision making process of investment projects. HotelsksKuca(pp, 931-939) [20] Kester,G.W and Tsui,K.C(1998), Capital Budgeting Practices of listed Firms in Singapore, Singapore management review, VOL 20 No1,PP 9-23 [21] Koch,B.S.,Mayper,A.G.,Wilner,N.A.(2009), The interaction of accountability and Post Completion audits on Capital Budgeting Decisions. Academy of Accounting and Finance Studies Journal,Vol.13,1-26. [22] Klammer,Thomas,(1972), empirical Evidence of the adoption of sophisticated Capital Budgeting techniques, the Journal of Business 45( No.3, July),387-397. [23] Maccarronne,P(1996),Organizing the capital Budgeting Process in Large Firms. Management Decisions,Vol 34, Issue6, 43-56 [24] Madhani ,Pankaj,M.(2008),RO-Based Capital Budgeting: A dynamic approach in New Economy. ICFAI Journal of Applied Finance,VOL.14;Issue 11,48-67 [25] Mc LaneyE.J.Pointon, M.Thomas and J.Tucker(2004), Practioners Perspectives on the UK cost of capital, The European Journal of Finance 10, 123-138. [26] Meier I,. Tarhan,V(2007),Corporate Investment Decision Practices and the hurdle rate premium Puzzle. http://clx.doi.org/10.2139/ssrn.960161 [27] Miller,Jmaes H(1960), A Glimpse at Practice in calculating and using return on Investment N.A.A Bulleting( now Management Accounting),June,65-76 [28] Northcott,Deryl(1995),Capital Investment Decision making,London: The Dryden Press. [29] Olawale F, Olumuyiwa O, George H(2010), An investigation into the impact of investment appraisal techniques on the profitability of small manufacturing firms in the Nelson Mandela Bay Metropolitan Area, south Africa. Afr J. Bus. Manage.4(7): 1274-1280. [30] Pike,Richard(1966), A longitudinal Survey on Capital Budgeting Practices, Journal of Business Finance and Accounting 23(No.1,Januaary),79-92
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[31] Pike Richard, (1981) "Capital Budgeting and Corporate Performance", Management Research News, Vol. 4 Iss: 1, pp.17 - 18 [32] PorwalL.S(1976). Capital Budgeting in India, New Delhi:S Chand & Co. [33] Qizhi,H.(2009),Decision making for Investment Based on option and Term Structure. Jornal of software, 4(3), 191-198. [34] Ryan,P.A and Ryan, G.P.(2002), Capital Budgeting Practices of the Fortune 1000: How have things Changes? Journal of Business and Management, Vol 8 No 4, PP 355-64 [35] Schall, Lawrence D., Gary L. Sundem and William R. Geijsbeek, Jr., (1978), Survey and Analysis of Capital Budgeting Methods, journal of Finance 33( No. 1, March), 281-288. [36] ShwetaSingh,P.KJain,SurendraS.Yadav(2012) Capital Budgeting Decision :- Evidence from India, Journal of advances in Management research, Vol.91ss.1,99.96-112 [37] Smith,D.J(1994),Incorpoating Risk into Capital Budgeting decisions using Simulation. Management Decision(20-26) [38] U.RaoCherukuri(1996): Capital Budgeting Practices: A comparative study of India and select South East Asian Countries(ASCI), Journal of Management 12.5 ----
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FRAMEWORK FOR RECOMMENDER SYSTEMS
Mrs. Ketaki S. Pathak, Asst. Professor, Ashoka Center for Business and Computer Studies College, Nasik, India. Mrs. Chetana A. Desale, JJTU Research Scholar Lecturer, Panchavati college of Management and Computer Science, Nasik, India. Dr. A. V. Patil, Associate Professor, Electronics Science, L.V.H. College Panchavati, Nasik
ABSTRACT In this paper, we combine both content based and collaborative filtering approaches for providing advices to users about items they might wish to purchase or examine for finding approximate results on matching criteria for developing framework for recommender systems. Using content based and collaborative filtering algorithms will provide results to the user and accepts feedback from him. As per the feedback it does changes in the rating of recommendations and accordingly gives the results. This software will be useful in many applications for example book library, movie library, audio library, e-shopping products etc. Keywords: Content based filtering, Collaborative filtering
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In this information age, searching is the key driver of the corporate and economic growth. People want everything to be done on their finger-tips from anywhere, anytime and that too very fast and precisely. Recommender systems give advice to users about items they might wish to purchase or observe. Recommendations made these systems can help users navigate through large information spaces of product descriptions, news articles or other items These systems combine/collect data about customers purchasing habits or preferences, and gives recommendations to other users based on similarity in overall purchasing patterns. DETAILED PROBLEM DEFINITION: Basically, our system is a framework for recommender system. It can be used for any application. It will give choice to the administrator to add his applications and give recommendations to his clients. The administrator will be the one who wants this software, will decide his applications and also will provide software developer the whole information required to feed to the software. Mainly there are two algorithms used for recommender system. One is collaborative filtering another is content based filtering. COLLABORATIVE FILTERING: It explores technique for matching people with similar interest and then providing recommendation on this basis. Collaborative filtering builds a database of preferences for products by consumers. A new consumer is matched against the database present already to discover neighbors, which are other consumers who have historically had similar purchasing habits with new consumer. CONTENT BASED FILTERING: Content based recommenders build on the intuitions find the things like I have liked in past. It learns preferences through user feedback .Feedback may be of two kinds implicit and explicit. Using these algorithms, will provide results to the user and accepts feedback from him. As per the feedback it does changes in the rating of recommendations and accordingly gives the results. This software will be useful in many applications for example book library, movie library, audio library, e-shopping products. CURRENT MARKET SURVEY: According to the current market survey, the systems available are very typical. The systems are through and through only recommender systems that is the systems implemented till date are solely based on a particular type of application for example E-shopping, music Shoppe, book library etc. These systems can only suggest to the user the items they possibly can like but they dont have any particular system to take users feedbacks into the account after they have taken the recommended items. For these recommendations either they depend upon the other users or if the user is coming for the nth time they can use his own profile for recommending items. This can be done by using collaborative filtering algorithm or content based filtering algorithm. But there is no such system using both algorithms for giving recommendations. NEED OF THE SYSTEM: The new millennium is an age of information abundance. The 1990s have seen an explosion of information and entertainment technologies, and thus of choices a person faces. People may select from thousands of television channels and videos, millions of books, CDs and multimedia, interactive documents on the World Wide Web (WWW) and on the face of it countless other consumer items presented in catalogs or advertisements in one or another medium. The web in particular offers a large indefinite number possibilities in addition to interactive documents, there are items to purchase. There are a vast number of possibilities of them, and they vary widely in quality. So what is to be done? When people have to make a choice from a group of choices without any personal knowledge of the alternatives, a natural course of action is to depend on the experience and opinions of others. We need recommendations from people who are familiar with the choices we face, who have been helpful in
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the past, whose perspectives we value, or who are recognized experts. We might turn to friends or colleagues, the owner of a neighborhood bookstore, movie reviews in a newspaper or magazine, or Consumers Union product ratings. And we may find the social process of meeting and conversing with people who share our interests as important as the recommendations we receive. Today increased numbers of people are turning to computational recommender systems. These systems focus on mediating, supporting, or automating the everyday process of sharing recommendation. UPDATIONS TO THE PREVIOUS SYSTEM: The systems that are available are designed solely for the purpose of entertaining any single application under the recommender system for e.g. E-shopping, etc. But what is provided under the Para-Host Framework for Recommender System is the freedom of choosing any application for which Recommender system can be implemented. All the fields or parameters that are to be introduced into the system, that will be needed for giving recommendations can be dynamically changed or entered by the administrator. Two algorithmic approaches are combined to give the precise results namely collaborative filtering algorithm and content based filtering algorithm. After some recommended items are taken by the user the feedback is taken related to the recommended items, if the feedback is positive then that type of recommendations are continued by the system in the future also but somehow if the recommendations are not appreciated by the user then that type of recommendations are avoided in the future. PURPOSE: Decision-making is an integral part of everyday life. When faced with a dilemma, most of us are likely to gather some relevant information before making an informed decision. Recommender systems provide a way of surrounding this problem. The main aim is to identify challenges and suggest new opportunities. People may select from thousands of television channels and videos, millions of books, CDs and multimedia, interactive documents and apparently countless other consumer items presented in catalogs or advertisements in one medium or another. PRODUCT SCOPE: Generally, content based filtering and collaborative filtering algorithms which we are going to use in our system, are used widely in many applications. In future, expansion of project can be done by implementing more algorithms such as particle swarm optimization, this will help for comparative study of algorithms and this framework can possibly be further used in more specialized applications to give much more desirable and precise recommendations according to the nature of the application and the personality of the user. OVERVIEW: Requirements specification is organized as in two major sections Overall descriptions and Specific requirements. The first section describes the general factors which affects the product and requirement of that. This section does not state specific requirements. Instead, it provides a background for requirements. This section of the SRS contains all of the software requirements to a level of detail which sufficient to enable designers for designing a system which satisfies those requirements and testers to test that the system satisfies those requirements. OVERALL DESCRIPTION: Basically, our system is a framework for recommender system. It can be used for any application. It will give choice to the administrator to add his applications and give recommendations to his clients. The administrator will be the one who wants this software, will decide his applications and also will provide software developer the whole information required to feed to the software. Mainly there are two algorithms used for recommender system. One is collaborative filtering another is content based filtering.
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PRODUCT PROPERTIES: EXISTING SYSTEM:
Fig.1: Existing Recommender System NEW SYSTEM:
Fig. 2: New Framework for Recommender System PRODUCT FUNCTIONS: The framework for recommender system will provide the following: Administrator can implement the framework for any random application. Administrator can ask for the relevant information from the user as needed by the recommender system to recommend and also decides other specifications and give attributes. On the basis of this information recommendation is given to the user. After that the feedback regarding recommendations is taken from the user so as to check the satisfaction of the user and the precision of the given results to improve the future recommendations. USER CHARACTERISTICS: There are two types of users administrator and recommendation seeker. The administrator will enter the metadata and the master data along with the questions related to the personal and basic information that is to be filled by the recommendation seeker. The users would login and they will be asked various types of questions in order to help the system to understand the personality and the exact requirements of the user. System would be user friendly and will not need any typical or extra knowledge about computers to use the system. EXTERNAL INTERFACE REQUIREMENTS: The external interfaces requirements provide a description of all inputs and outputs framework of recommender system. USER INTERFACES: The user interface is the mean of communication between the user and the software system. It has to be simple and easy to use and learn.
associated with the
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SOFTWARE INTERFACES: The software interfaces are nothing but the flow of screens of forms that are occurring one after the other when user is using the system. SYSTEM FEATURES: Feedback is the main feature that will be provided in the system as an additional improvement. Feedback will be taken from the user based on his/her previous experiences which would decide the actual percentage of success achieved by the system. If the feedback is positive that means the recommender system is providing the correct suggestions, otherwise it will have to change the strategy and try to give more precise recommendations using the feedback obtained from the user, which in turn increases the efficiency of the system. RESULTS: The framework for recommender is basically designed for the purpose of providing recommendations to the user among the large quantity of options .The framework is designed and developed in such a way that it can be implemented for any kind of application .All the parameters that are used to determine the recommendations are decided by the administrator himself and for providing such facility all the fields are kept dynamic i.e. it can be decided or changed by the administrator. And after deciding the application the master data (information of items related to the application), metadata (parameters related to the items), and training set is to be added to the administrator module. After this, the user that is using this system has to enter their profiles and then the recommendations will be provided on the basis of the algorithm namely, collaborative filtering and content based filtering. Collaborative filtering gives the recommendations on the basis of matching of neighboring profiles with the user who needs recommendations. The content based filtering algorithm is used only after the feedback of the user contains at least ten entries. Altogether the results of this system are the recommendations, the detailed display of liked and disliked items. Framework for recommender system contains various modules. On administrator side metadata module contains the format for master data. Master data is actual data accepting module. Questioner is module for accepting questions from administrator these questions will be then displayed to the user. Training set is module provided for giving training profiles to recommender system. Status part shows the information about current users present in the system. REFERENCES: [1] MICHAEL J. PAZZANI, A Framework for Collaborative, Content-Based and Demographic Filtering, Netherlands. [2] Sean M. McNee, John Ried, Joseph A. Konstan, Making Recommendations Better: An Analytic Model for Human- Recommender Interaction, April 2227, 2006, Montreal, Canada. [3] Loren Terveen and Will Hill, Beyond Recommender Systems: Helping People Help Each Other, 2001 [4] Badrul Sarwar, George Karypis, Joseph Konstan, and John Riedl, Analysis of Recommendation Algorithms for E-Commerce, University of Minnesota ,Minneapolis [5] Robin van Meteren1 and Maarten van Someren, Using Content-Based Filtering for Recommendation, The Netherlands [6] J. S. Breese, D. Heckerman & C. Kadie. (1998). Empirical Analysis of Predictive Algorthms for Collaborative Filtering. In Proceedings of the 14th Conference on Uncertainty in Artificial Intelligence. [7] www.libra.com [8] www.dooyoo.com [9] www.amazon.com [10] www.movielens.com ----
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TSUNAMI DISASTER MANAGEMENT AND COSATAL DEVELOPMENT
Dr. Pagar Mansaram Pandit, Department of Geography, L.V.H.Collage, Panchavati.Nashik, India
Dr. K.T.Khairnar, Department of Commerence, L.V.H.Collage, Panchavati.Nashik, India
ABSTRACT Tsunami is a tidal wave (Harbour Wave). Most Tsunamis occur in the Pacific because the ocean is rimmed by the ring of fire, a long chain of earth's most seismically active spots. The main aim or purpose of disaster management is to mitigate sufferings as well as find their causes and solutions. The purpose of disaster management is to mitigate sufferings as well as find their causes and solutions. The objective of the decade is to reduce through concerted international action, especially in developing countries, the loss of lives, property damage and social & economic disruption by naturla disasters. Almost half a billion people live within 100 km (60 miles) of coral reefs where they benefit from fisheries, wave and storm surge protection, and tourist income. The huge tourism infrastructure developments have dramatically altered the natural dynamics of Mediterranean coastal ecosystems.It simply watched thousands and lakhs of people being washed away on the costal areas. Keywords: Tsunami.Disaster.Management.Development
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The titanic Tsunami that wrought unprecedented death and destruction in south and south-east Asia will go down in history as one of the greatest natural calamities of modern times. The great disaster caught the people and government off guard and in a matter of minutes, sunffed out more than 2,30,000 lives across more those 13 countries of the Indian Ocean region. The number of people rendered homeless ran into millions and many children ran homeless and turned orphans. The strength and magnitude of the quake was 9.15 on Rietcher Scale, the biggest in 40 years, it was so big that earth was ringing like a bell. After this quake many shall earthquakes triggered showing its magnitude. Several governments and multi lateral agencies have donated more than 6.9 billion dollars while private donations amounted to 4.5 billion dollars. To rehabilitate more than 2,50,000 houses are to be built with more than tens of thousands of schools are to be constructed. This disaster caused unusual lung and sinus infections and even paralyzing brain infections. The catastrophe spawned by Tsunami once again underscores the need for a well planned disaster management. It has shown that we are totally ill-prepared to cope of with any king of crisis, natural or man made. The offcial machinery that must swing into action with alacrity has reacted the most sluggish way. There could be a hundred excuses in failing to rise up to the magnitude of the present tragedy but now that we have been administered a shock therapy that Tsunami's would not spare us, we need to be forewarned and accordingly prepared well in advanced to take adequate preventive and safety measures. There are only 26 countries that make up the international co-ordination group for the Tsunami warning system. the system predicts where Tsunamis will strike up to 14 hours in advanced. It relies on a network of earthquake seismic sensors and tidal gauges attached to buoys in the oceans. However the network's western edge stops near Thailand and Singapore and does not extend in to the Indian Ocean. The membership of Tsunami warning system include Australia, Canada, Chile, China, Colombia, Cook Islands, Costa Rica, Ecuador, Fiji, France ( because it controls French Polynesia and other Island territories), Guatemala, Indonesia, Japan, Mexico, New Zealand, Nicaragua, North Korea, Peru, Philippine, Russia, Singapore, South Korea, Thailand, Hong Kong, United States and Western Samoa, The warning system is designed to alert nations that potentially destructive waves may it their coastlines within three to 14 hours. Scientist said that seismic networks recorded the massive earthquake of December 26, 2004 but without sensors in the region, then there was no way to determine the direction a Tsunami would take. There is a technical solution as per our President Dr. A. P. J. Abdul Kalam's view, that after earthquakes occurs beneath the sea bed, it takes three hours for the dynamic waves of great height to build up, by which time all communities can be evacuated from the epicenter of the quake to Safety. WHAT IS TSUNAMI: Tsunami is a tidal wave (Harbour Wave). Most Tsunamis occur in the Pacific because the ocean is rimmed by the ring of fire, a long chain of earth's most seismically active spots. Tsunami waves typically radiate out in the directions opposite from the seismic disturbance. In the case of the Sumatra Quake, the seismic fault ran north to south beneath the ocean floor, while the Tsunami waves shot out west and east. Tsunami is distinguished from normal coastal surf by their grat length and speed. A single wave in a Tsunami series might be 160 km long and race across the ocean at 965 km ph. When it approaches a coastline, the waves slow dramatically, but it also rises to great heights because the enormous volume of water piles up in shallow coastal bays. And unlike surf, which is generated by wind and the gravitational tug of the moon and other celestial bodies. Tsunamis do not break on the coastline every few seconds. Because of their size, it might take an hour for one to come. HOW ARE TSUNAMIS GENERATED? Tsunamis are generated by any large, impulsive displacement of the sea bed level Earthquakes generate tsunamis by vertical movement of the sea floor. If the sea floor movement is horizontal, a tsunami is not generated. Earthquakes of M > 6.5 are critical for tsunami generation. Tsunamis are also triggered by landslides into or under the water surface, and can be generated by volcanic activity and meteorite impacts. DISASTER MANAGEMENT: The main aim or purpose of disaster management is to mitigate sufferings as well as find their causes and solutions. International Decade for Natural Disaster Reduction has set the following objectives and Goals.
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When the UN General Assembly adopted resolutions 44/236 in 1989 and formally decided on IDNDR, the following objectives and goals were established. The objective of the decade is to reduce through concerted international action, especially in developing countries, the loss of lives, property damage and social & economic disruption by naturla disasters, such as earthquakes, wind storms, Tsunamis, floods, land slides, volcanic eruptions, wildfire, grasshopper & locust infestations, draught and desertification and other calamities of natural origin. GOALS: The goals of IDNDR are; 1. To improve the capacity of each country to mitigate the effects of natural disasters expeditiously and effectively paying special attention to assisting developing countries in the assessment of the disaster damage potential and in the establishment of early warning systems and sisaster resistant structures when and where needed. 2. To devise appropriateguidelines and strategies for applying existiong scientific and technical knowledge taking into account the cultural and economic diversity among nations. 3. To foster scientific and engineering endeavors aimed at closing critical gaps in knowledge in order to reduce loss of life and property. 4. To disseminate existing and new technical information related to measures for the assessment, prediction and mitigation of natural disasters. 5. To develop measures for the assessment, prediction, prevention and mitigation of natural disasters through programs of technical assistance and technology transfer, demonstration projects and educations and locations and locations and to evaluate the effectiveness of those programs. TARGETS: Three targets of the decade to be completed all countries were adopted. a) Comprehensive national assessments of risks from natural hazards, with these assessments taken into account in development plans. b) Mitigation plans at national and/or local levels, involving long term prevention and preparedness and community awareness. c) Ready access to global, regional, national and local warning systems and broad dissemination of warnings. We see that the objectives, goals and tagets for the IDNDR are straight forward. However, natural disasters occur in many different shapes and cause a wide spectrum of impacts. PROGRAMMED TO DEAL TSUNAMI: The international warming system against Tsunami was started in 1965 after tsunamis associated with a magnitude 9.2 tremor struck Alaska in 1964. It is administered by the National Oceanic and Atmospheric Administration. Member states include all the major Pacific rim nations in North America, Asia and South America, the Pacific Islands, Australia and New Zealand. It also includes france, which retains sovereignty over some Pacific Islands and Russia. The international warming system analyses earthquake information from several seismic networks including the US Geological Survey. The seismic information is fed into the computer models that Picturise how and where a Tsunami might form. It sends warmings about imminent Tsunami hazards. Not all sub sea earthquakes trigger giant waves. The key is monitoring the motion of the water, not the shaking of the ground. The most hi-tech nature of the warning system in the Pacific is a series of pressure sensors on the sea bed. These detect changes in the weight of the water above them causesd by shifts in sea level as small as one cm and send updates through cables to buoys on the surface. The information is transmitted by satellite to a control station in Hawaii. A pressure sensor that indicates resulting wave cost dollars 200 thousand while the data from the Indian Ocean can be relayed by existing satellites. INDIAS PROGRAM: India formulated an Act called National calamity Management Act-2000 which extends to all parts of the country. Under this Act, India constituted National Center for Calamity Management (NCCM) which is
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headed by Director general of the rank of Joint Secretary to Government of India. Under him every state has a central relief commissioner (CRC). CRC shall be placed in charge of and be responsible for calamity management in calamity affected areas and all such operations in supervision and control. Government of India after setting up of High Powered Committee on Disaster Management in 1999 for having uniform policy and decentralized planning mechanism in place, but we observed at the time of Tsunami disaster and what has been done after that disaster is still an unfulfilled commitment by the government in tacking disasters. Even though government was struck unaware of Tsunami waves and its disasters but still it could have done far better had its planning, organizing capacity or the infrastructural setup was active and ready. But unfortunately Government did not have any developed mechanism or technology to pull people out of epicenter of the disaster. It simply watched thousands and lakhs of people being washed away on the costal areas. PROGRAMS TO REDUCE THE EFFECT OF TSUNAMI DISASTERS: 1) India should develop technology and build disaster sensors in waters such as Tsunami warning Systems. 2) In order to mitigate the impact of natural fury on the people inhabiting the costal eco system, government should encouraged mangrove eco systems development along costal areas. As a high priority sunami risk mitigation such as construction of cyclone shelters, shelter belt plantation, preservation and regeneration of mangrove forests, construction of embankments and missing road links and commissioning of technical assistance/studies to sustain these initiatives, besides strengthening coastal zone management frame work in the States and Union Territories. 3) Social service voluntary organizations should be encouraged to mobilize and educate volunteers especially the youth to show great aptitude towards relief and rehabilitation works. These institutions should be encouraged to develop funds and be tax-free in obtaining all infrastructural requirements. 4) Task forces from schools, colleges and institution should be encouraged, trained and instigated towards punctual, daring and humanity activities at the time of disasters. 5) Indian military should be given additional charges of training student masses for helping NGO voluntary organizations to work on disaster sites. ROLE OF VOLUNTARY SECTOR: The IDNDR program for decade has been of great stimulation to the voluntary sector and NGOs in India. A number of NGOs and private Industrial houses have initiated various activities. Some of the leading NGOs like OXFAM (India) Trust, CASA, CARE-India, Ramakrishna Mission, DMI, Dasholi Gram Swarajya Mandal etc have been active in responding to almost every disaster with timely and effective relief operations. Almost half a billion people live within 100 km (60 miles) of coral reefs where they benefit from fisheries, wave and storm surge protection, and tourist income. With the worldwide coastal population expected to double by 2050, coral reefs will be facing increased pressure from unmanaged development along coasts. Unplanned coastal developed is not only a serious threat to coral reefs, it also leads to long-term socioeconomic loss. By using Integrated Coastal Zone Management (ICZM) practices, policy makers can create sustainable coastal development projects that protect their coral reef resources while meeting other economic needs. The huge tourism infrastructure developments have dramatically altered the natural dynamics of Mediterranean coastal ecosystems. Coastal ecosystems are a vital livelihood resource for millions of fishers, a protective barrier against storms, tidal surges and tsunamis and a source of recreation for millions. This makes coastal real estate the most prized for tourism, industries, aquaculture, nuclear and thermal power plants or ports all of which leave behind a devastated coastal environment. Industry and sections of government are colluding to grab huge swathes of land in coastal India at the cost of local communities, the environment and biodiversity. An example of coastal land grab is the rampant port proliferation that is changing the Indian coastline. Over 300 ports are proposed for the coast of mainland India thats an average of one every 25 km! Many of these are in or near mangroves, mud flats, nesting and breeding grounds for important marine creatures. But do we really need so many ports? Or is this a massive private land grab by gullible or corrupt government planners? The Coastal Regulation Zone (CRZ) notification 1991 was originally meant to protect our coasts. It divided the coast into zones of varying ecological sensitivity and prohibited industrial activities in the most sensitive ones. However, over the last 20 years, the notification has been progressively diluted and weakened to suit industrial
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and development interests. Greenpeace is demanding that the CRZ notification be strengthened and implemented so that industries and infrastructure projects can be kept away from the most eco-sensitive areas. CONCLUSIONS: India has been doing something now. It has suggested to Australia, US, Japan & United Nations, The possibility of setting up a Tsunami warning system in the Indian Ocean Region. While there is no permanent warning system in the area, there is a possibility of a floating seismic monitoring vessel being stationed temporarily. The Institutions are engaged in Oceans research, planning deployment of a series of tidal gauges ISRO too, is doing research for a possible satellite based system to read the changing moods of waters around the peninsula. REFERENCES: [1] Ahmad, M. 2004. Living in the coast: people and livelihoods. Dhaka, Program Development Office for Integrated Coastal Zone Management Plan Project, Water Resources Planning Organization. March 2004. [2] Ahmad, M. 2005. Living in the coast: urbanization. Dhaka, Program Development Office for Integrated Coastal Zone Management Plan Project, Water Resources Planning Organization. June 2005. [3] Alam, S.M.N. & M.J. Phillips. 2004. Coastal shrimp aquaculture systems in southwestern Bangladesh. Asian Fisheries Science, 17: 175189. [4] Alam, S.M.N., Demaine, H. & M.J. Phillips. 2002. Landuse diversity in south western coastal areas of Bangladesh. The Land, 6.3: 173184. [5] Choudhury, J.R. 2006. Earthquakes and tsunamis: vulnerability of Bangladesh and mitigatory measures. Jabbar Memorial Lecture, presented at the Golden Jubilee Convention of the Institution of Engineers on 26 February 2006. Dhaka, February 2006. (MA thesis) [6] Majid, M.A. & M.V. Gupta. 1997. Research and information needs for fisheries and development and management. In: Proceedings of a national workshop on Fisheries Resources Development and Management in Bangladesh, 29 October to 1 November 1995, pp. 160177. MOFL/BOBP/FAO/ODA. [7] Meghna Estuary Study (MES). 2001. Hydro-morphological dynamics of the Meghna Estuary. Dhaka, Meghna Estuary Study (MES) Project, Bangladesh Water Development Board. [8] Mia, A.H. & M.R. Islam. 2005. Coastal land use and indicative land zones. Dhaka, Program Development Office for Integrated Coastal Zone Management Plan Project. [9] Ministry of Food and Disaster Management (MoF&DM). 2005. Bangladesh country report: national report and information on disaster reduction for the World Conference on Disaster Reduction, KobeHyogo, Japan, 18 to 22 January 2005. Dhaka, Ministry of Food and Disaster Management in Concert with Disaster Risk and Reduction Stakeholders. [10] Ministry of Water Resources (MoWR). 2005. Coastal Zone Policy. Dhaka, Ministry of Water Resources, Government of the Peoples Republic of Bangladesh. [11] MoWR. 2006. Coastal Development Strategy. Dhaka, Ministry of Water Resources, Government of the Peoples Republic of Bangladesh. [12] Nishat, A. 1988. Review of present activities and state of art of the coastal areas of Bangladesh. In: Coastal area resource development and management Part II, pp. 2335. Dhaka, Coastal Area Resource Development and Management Association (CARDMA). [13] Program Development Office for Integrated Coastal Zone Management Plan (PDO-ICZMP). 2004. Areas with special status in the coastal zone. Dhaka, PDO-ICZMP project. [14] Sadhuram, Y. 2005. Tsunami of 26 December 2004. Current Science, 88(10):15301531. [15] http://www.geophys.washington.edu/tsunami/general/mitigation/mitigation.html [16] http://www.drgeorgepc.com/index.html [17] http://www.prh.noaa.gov/pr/itic/library/pubs/great_waves/tsunami_great_waves ----
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INNOVATIVE DISTRIBUTION STRATERGIES A CASE STUDY OF LIFE INSURANCE COMPANIES IN INDIA
Prof. Prakash.K.Vadavadagi, Assistant Professor B.V.V.Sanghas Institute of Management Studies, Vidygiri, Bagalkot, India.
ABSTRACT
Dr.R.G.Allagi Director B.V.V.Sanghas Institute of Management Studies, Vidygiri, Bagalkot, India.
The insurance sector in India has come up with an open competitive market to nationalization and back to a liberalized market again. With impact of liberalization, privatization and globalization many multinational national insurance companies have entered Indian market by forming joint ventures with Indian firms. The entry of multinational companies in Insurance sector has given rise to the competition, forcing the companies to use innovative strategies to enhance and retain their market share. Among the various strategies, distribution strategy is one of the important strategies. The main aim of the distribution strategy is to make the products and services available and accessible to customers whenever they want to make purchase. This paper intends to analyze the various innovative distribution strategies such as distribution through agents, through Banks, retail assurance, tying up with NGO, through mobile banking, etc., used by different life insurance companies to market its product. Keywords: Multinational, Retail assurance, Competition, Strategies, Innovative
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INTRODUCTION:
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The insurance sector went through a full circle of phases from being unregulated to completely regulated and then currently being partly deregulated. Life insurance in India was completely nationalized on January 19, 1956, through the Life Insurance Corporation Act. All 245 insurance companies operating then in the country were merged into one entity, the Life Insurance Corporation of India. Until 1999, there were not any private insurance companies in India. The government then introduced the Insurance Regulatory and Development Authority Act in 1999, thereby de-regulating the insurance sector and allowing private companies. Furthermore, foreign investment was also increased from 26% to 49% holding in the Indian insurance companies. The Indian Life Insurance industry is one on the strongest growing sectors in the country. Currently a US$ 41-billion industry, India is the fifth largest life insurance market and growing at a rapid pace of 32-34% annually. Today there are 23 life insurance companies operating in India out of which 19 Insurance companies have JVs with foreign partners and only three companies LIC, Reliance Life Insurance and Sahara Life Insurance Company are not having JVs. All the major international players are present in the Indian Insurance market. The Indian life insurance industry has witnessed immense growth in the past few years. Today, it is second only to banks for mobilized savings and forms a formidable part of the capital market. Now Life Insurance Market in present scenario is a booming sector and market has changed from simpler to complex, less challenging to more challenging. As all most all major players of the world are entered in the market the life insurance market has become more competitive. To beat this competition and tap the untapped market all Companies all the companies are using Innovative distribution strategies. In Marketing of Insurance products distribution channel is the life blood of insurance business. Traditional distribution channel of agency still rules the roost in life insurance in India. Life Insurance companies are using Innovative Distribution Strategies for following reasons; To increase the Life Insurance penetration in the country. To differentiate Life Insurance Products on basis of customer service. To retain and attract new customers so as to expand business. To increase Life Insurance awareness and knowledge among people. To satisfy the needs of more demanding customers. To improve cost efficiency in Life Insurance distribution. LIST OF LIFE INSURANCE COMPANIES AND THEIR FOREIGN PARTNERS S.N. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 INSURERS Life Insurance Corporation of India HDFC Standard Standard Life Assurance Max New York New York Life ICICI Prudential Prudential Plc Kotak Mahindra Old Mutual Old Mutual Birla Sun Life Sun Life TATA AIG SBI Life ING Vysya Bajaj Allianz Metlife Reliance Aviva Sahara Shriram Sanlam Bharti AXA Future Generali IDBI Federal Canara HSBC OBC FOREIGN PARTNERS UK USA UK South Africa Canada American International Assurance Co., USA BNP Paribas Assurance SA, France ING Insurance International B.V, Netherlands Allianz, Germany Metlife International Holdings Ltd., USA Aviva International Holdings Ltd., UK South Africa AXA Holdings, France Generali, Italy Ageas, Europe HSBC, UK
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20 21 22 23 24
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Aegon Religare DLF Pramerica Star Union Dai-ichi IndiaFirst Edelweiss Tokio
Aegon, Netherlands Prudential of America, USA Dai-ichi Mutual Life Insurance,Japan Legal & General Middle East Limited, UK Tokio Marine Holding Inc,Japan
MARKET SHARE OF INDIAN LIFE INSURANCE COMPANIES: MARKET SHARE OF LIFE INSURERS INSURER REGULAR PREMIUM LIC PRIVATE SECTOR TOTAL SINGLE PREMIUM LIC PRIVATE SECTOR TOTAL FIRST YEAR PREMIUM LIC PRIVATE SECTOR TOTAL RENEWAL PREMIUM 2009-10 43.13 56.87 100.00 92.19 7.81 100.00 65.08 34.92 100.00 2010-11 56.73 43.27 100.00 81.26 18.74 100.00 68.85 31.15 100.00
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LIC PRIVATE SECTOR TOTAL TOTAL PREMIUM LIC PRIVATE SECTOR TOTAL
73.64 26.36 100.00 70.10 29.90 100.00
70.49 29.51 100.00 69.78 30.22 100.00
IMPORTANT MILESTONES IN LIFE INSURANCE BUSINESS IN INDIA Milestones of Life Insurance India 1912 The India assurance companies act enacted as the first statue to regulate the life insurance business. The Indian companies act enacted to enable the government to collect statistical information 1928 about life insurance The earlier legislation was consolidated and amended by the insurance act with a view to protect 1938 the interest of the insuring public Nationalization of life insurance sector and life insurance corporation came in to existence. The 1956 LIC absorbed 154 Indian, 16 non-Indian insurers and 75 provident societies. 1990 The process of re-opening of the sector has begun. Insurance sector was reopened to the private sector. 1993 R.N.Malhotra committee was set up to propose recommendations for reforms in the insurance sector. R.N.Malhotra committee submitted the report; it recommended that the private sector be 1994 permitted to enter insurance industry. They stated that foreign companies be allowed to enter by floating Indian companies, preferably a joint venture with Indian partner. Insurance Regulatory and Development Authority (IRDA) was constituted as an autonomous 1999 body to regulate and develop the insurance industry. IRDA was incorporated as a statutory body. The key objective of the IRDA includes promotion 2000 of competition, so as to enhance customer choice and lower premiums, while ensuring the financial security of the insurance market. INDIVIDUAL NEW BUSINESS PERFORMANCE OF LIFE INSURERS FOR 2010-11-CHANNEL WISE Individual Direct Total Individual Corporate Agents Brokers Agents Selling New Business Banks Others* Private 46.89 33.21 8.70 4.77 6.43 100.00 LIC# 97.45 1.81 0.59 0.04 0.11 100.00 Total 78.95 13.30 3.56 1.77 2.42 100.00 *Any entity other than banks but licensed as a corporate agent. #Does not include its overseas new business premium. Note: 1) New business premium includes first year premium and single premium. 2) The leads obtained through referral arrangements have been included in the respective channels. Insurer TRADATIOANL AND INNOVATIVE DISTRIBUTION STRATERGIES: In today's scenario, insurance companies must move from selling insurance to marketing an essential financial product. Channels of Distribution are what has always traditionally been called "Place" in the 4 P's model of Marketing. Distribution Channels provide the utility of place; of having products where the customer wants when the customer wants them. The terms Place and Channels of Distribution are synonymous. Insurance marketplace is undergoing a transformation that may eventually lead to significant changes in how consumers purchase insurance products. A variety of distribution channels are currently used in this market place and some insurers utilize a combination of distribution channels. Traditionally, in Insurance the channel member will be the insurance agents; some private insurance
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companies now call them as advisors. Agents form the prime front line force with all insurance companies and they remain to be the most basic and most important channel members to reach the customer. Few insurance companies have taken the initiative of appointing barefoot insurance agents in order to penetrate rural markets. Apart from agents, the insurance companies take various innovative routes to spearhead their marketing plans and to capture a larger pie of market share. In distributing Life Insurance, the distributors have to become trusted financial advisors for the clients and trusted business associates for the insurance companies. This calls for leveraging multiple innovative distribution channels in a cost effective and customer friendly manner. To deliver the services, Life Insurance players take various routes to reach and service the customers. With just 70 million insured out of 1000 million, there is enormous potential in the industry. "Spreading to the longest length and the remotest corner" is the mantra of Insurance players. To reach this objective, their distribution channel strategies have taken different 'avatars' like Corporate agents, Bancassurance and Retailassurance etc. AGENCY: Agency, as a channel of Insurance distribution involves selling Insurance policies through tied agents which are hired by Insurance companies on a commission basis. Prior to 2000, the Life Insurance Corporation of India was the only player in the Indian Insurance market and it emphasised on hiring agents to sell its Insurance policies. At that time, LIC had around 800000 agents across the country. For decades, agency was the only distribution channel for life insurance in India. Even today almost 80% of business is carried through insurance agents.Through agency, personal contact and relationship can be established with the customer. The system of agents is a major source of both presales and post sales services to customers, since it has the direct relationship with customers. Due to personal contact, it can provide valuable feedback about the need and expectation of consumers. However, it is nowadays considered as an old fashioned channel and not fully updated with latest technologies. However, agency still forms an important part of the distribution network for many companies given that this had been a tried and tested distribution channel in the past, this channel is seen to deliver a top-line growth. It accounts about 78% of new business across the industry. In all, the industry employs over 2.6 million agents and this figure is expected to grow further in the coming years. Companies such as Max New York Life, Bajaj Allianz have majority of their new business from tied agents. This channel has various merits:Through agency, personal contact and relationship can be established with the customer. Agents usually enjoy personal credibility with customers. Agents provide various presales and post sales services to customers. It involves no capital investment This channels awareness and acceptability is maximum among people Cross selling is possible through this channel Due to personal contact, it can provide valuable feedback about the need and expectation of consumers. DETAILS OF INDIVIDUAL AGENTS: LIFE INSURERS Insurer Private LIC Total DIRECT SELLING: Direct selling is normally done by the company executives also referred as their own sales force in other firms. The agents commitment level with the insurers is low in India as they work primarily on part time basis. To reduce the dependence on the tied agents, insurance organizations have started looking at the direct sales channel. As on April 1, 2010 1575476 1402807 2978283 Additions During 2010-11 395467 306296 701763 Deletions During 2010-11 668615 372039 1040654 As on March 31, 2011 1302328 1337064 2639392
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CORPORATE AGENTS: In order to spread awareness about insurance and to increase the coverage of a large section of population who have remained outside the radius of insurance coverage all these years, the IRDA introduced a variety of intermediaries as distribution is key to insurance penetration. The Corporate Agent is a concept introduced with a view to taking advantage of the presence of a large number of firms, corporations, banks, NGOs, cooperative societies and panchayats who are in contact with people in normal discharge of their activities and utilize their presence and services for canvassing the sale of insurance contracts. The corporate agency channel is a key for Life Insurance companies. Corporate agency is a cross selling type of channel. Insurance companies tie up with business houses in other industries to sell insurance either to their employees or their customers. Corporate agents have become a major force to reckon with in distributing insurance products. DETAILS OF CORPORATE AGENTS: LIFE INSURERS Insurer Private LIC Total BANCASSURANCE: Bancassurance channel was introduced in India when insurance industry was opened up for private players. Bancassurance as the name suggest, refers to sale of Insurance policies through the banks established branch network. It is basically selling Insurance products and services by leveraging the large customer base of a bank and fulfilling, both, the banking and Insurance needs of the customer at the same time. All most all insurance players have tie up with one or more banks for wider reach. Bancassurance may sell insurance as customized solutions or in the form of bundled products along with bank products. The Reserve Bank of India (RBI) being the regulatory authority of the banking system, recognizing the need for banks to diversify their activities, permitted them to enter into the insurance sector through the bancassurance model. With the entry of private players in the Indian Insurance market, bancassurance emerged as an important channel of distribution for Insurance products. For private Insurers, bancassurance channel contributes about 33% of the business volume. Bancassurance is the need of hour for private life insurers to tap the vast emerging market where incomes are rising. As of now life insurance industry was witnessing the growth of 30-35% growth but regulatory changes brought by IRDA deeply impacted its business. Bancassurance contributes for one-third of the private insurers new premium income. According to the survey by Deliotte life insurance companies having bancassurance partner have higher chances of achieving profitability than those depends mostly on agency channel. Bancassurance as channel of distribution is considered to be more profitable than agency. The primary advantage is offered by banks as compared to the other channels are the customer relationships and a relative cost advantage. Events that trigger sales of banking products generate a potential customer to cross-sell the Insurance products too. This reduces the cost per sales lead and improves the productivity of bancassurance. There are three types of models for bancassurance: 1. Corporate agency: Bank acts as corporate agent without risk participation. Enters into service level agreement 2. Referral arrangement: Referral is not permitted to banks acting as agents, it is used for sharing bank database, providing physical infrastructure and displaying of publicity material. 3. Joint venture between bank and insurance company: In India, a bank can tie up with one general insurance and one life insurance Company as mandated by regulation. As on April 1, 2010 2420 510 2930 Additions During 2010-11 1919 16 1935 Deletions During 2010-11 2469 231 2700 As on March 31, 2011 1870 295 2165
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LIST OF LIFE INSURANCE COMPANIES AND THEIR PARTNERS Insurance Company Partner Bank and number of branches ICICI Bank (2524) Citi Bank (15) Allahabad Bank Fderal Bank (120) South Indian Bank Lord Krishna Bank Punjab and Maharashtra Co-operative Bank. SBI (9000), Associate Banks (4000) Development Credit Bank (52) Deutsche Bank (3), Citi Bank (15) Bank of Rajasthan (348) Andra Bank, Catholic Syrian Bank (329) Bank of Muscat (1) Vysya Bank (450) ABN Amro (12), Lakshmi Vilas Bank(212) American Express (6), Canara Bank (2421) HDFC bank Union Bank Indian Bank Corporation Bank (800), Central Bank (3115) Bank of Punjab (20), Andra Bank(1018) Nedungadi Bank (150) Karnataka Bank (356) Dhanalaxmi Bank (153) J & K Bank (150)
ICICI Prudential Life Insurance
SBI Life
Birla SunLife Insurance
ING Vysya Life Aviva Life Insurance HDFC Standard Life Insurance
Life Insurance Corporation of India
Met Life
RETAILASSURANCE: Selling of insurance products through retail outlets is called retailassurance. Another innovative distribution channel that could be used are the non-financial organizations. The Indian retail market is the most fragmented in the world and at present, organized retail channel is around 3% of total retail business according to CRISIL report. But the organized sector is expected to grow at rate of around 30% per annum. With this huge growth rate of retail sector it can become viable distribution channel for life insurance products. However, repeat business or renewal of business cannot be assured in this system. Scope of retail business in life insurance is limited as compared to non-life insurance. ICICI Prudential Life Insurance has discovered an innovative way to distribute its products and services to potential customers in Mumbai. The company has tie up with Dabbawallahs in Mumbai. The company found that over 2 lakh people employed in offices in Mumbai get their lunch from Dabbawallahs who have a wide distribution network that is extremely reliable. The company sends around 50,000 direct mailers to office goers in Mumbai by hanging a mailer to the handles of meal dabbas. Further, the company has also tied up with Dominos Pizza and BPCL loyalty- card holders in some cities to expand its distribution network. INTERNET: Initially, insurance was seen as a complex product and buyers preferred face-to-face interactions with intermediaries. Nowadays, the advantage of technology allows insurers to increase their reach into the market. All insurers have websites through which they provide information about products and services. In India Internet penetration is still low and the insecurity associated with transactions over the net is still an inhibiting factor.
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WORK-SITE MARKETING: Worksite marketing is the process of distributing individual or group insurance products to people at their place of work on a voluntary, payroll-deduction basis. Under a worksite marketing arrangement, an insurer approaches an employer about offering its employees the opportunity to buy insurance coverage at work. If the employer agrees to the offering, the insurers sales representative then markets the products directly to the employees at the worksite. The employer implements a payroll deduction plan to withhold employees premium payments from their paychecks and then submits the premium payments to the insurance company. This is one of the high potential distribution channels, the companies need to tap the market through this channel and increase their market share. INDIVIDUAL FINANCIAL ADVISER: Individual Financial Adviser (IFA) is another potential channel for Insurance distribution, through presently it is virtually non-existent in India. IFAs are independent professionals who offer unbiased advice on financial matters. In the UK, the term IFA was coined to describe advisors working independently for their clients, rather than representing an Insurance company. AS of now Life Insurance business written through IFAs is relatively low in India, but looking at the experience of other developed markets, this channels potential cannot be ruled out. ELECTRONOC MAIL OR TELE MARKETING: Another set of channels which are not well developed in India are Electronic Mail or Tele Marketing. This mainly refers to marketing of Insurance policies through e-mail or Telephone. The main reason for slow development is for the complexity of the Insurance products which makes it difficult for the customer to understand the details of the product and general distrust of people in telemarketing. ICICI Prudential has already set up a direct marketing team to generate leads through target database acquisition and communicating customized product information through e-mails, telemarketing and innovative direct mailers. TELECASSURANCE: This is the new distribution channel to Life Insurance industry whose potential is yet to be fully explored. Telecassurance means selling of Life Insurance products and advice on financial protection through using distribution channels of the rapidly grooving telecom sector- customers will pay for premiums using mobile phone money transfers. In India Bharti AXA Life launched the Telecassurance targeting Bharti Airtels 40 million strong customers base. With an initiative of Association of Kenya Insurance (AKI), the Insurance companies plan to diversify from relying on agents to other technology-enabled platforms like telecassurance to reach more customers. VIRTUAL MARKETING: Virtual Marketing includes activities such as electronic kiosk stands, mobile advertising and the Internet are emerging as alternative distribution channels. Kiosk marketing is a direct marketing channel that is increasingly used in reaching a wider customer base. In typical kiosk sale, a customer enters basic information (such as name, gender, type of policy, and amount to be insured) and the system generates a quote. The customer has the option to approve the terms and make a payment. These kiosks makes ideal for selling complimentary policies to existing services. Examples of Insurance solutions offered through kiosks include kiosks in shopping malls offering Life Insurance products, Banks selling Insurance products through ATMs. Kiosks are helpful to reach customers who are not connected to financial services like banks RURAL CHANNELS: To tap the untapped vast area of rural India the Insurance companies may use some of the following channels Tie up with NGOs in rural area and agriculture & dairy cooperatives. Tie up with Micro Finance Institutions, Self Help Groups, Youth Clubs, Co-operative societies, can be utilized for selling Life Insurance.
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These channels play very important role in reaching rural people. At present very few player is using these channels for effective rural reach. ICICI Prudential Insurance and HDFC Standard Life Insurance have partnered with NGOs to sell some low cost insurance in rural areas. REFERENCES: [1] B.T Reporter, Insurance Go Mobile to Tap Market July 30, 2012. Published in Business Today. [2] David C Pulido, Alternative Insurance Distribution Models in Asia Pacific by Deloitte. Global Finacial Service Industry. Deloitte Touche Tohmatsu. [3] Gulati, Aastha, Maheshwari, Kunj Behari and Sharma, Shobhna Distribution Of Life Insurance Products In India And Inherent Risks Published In 10th Global Conference Of Actuaries. [4] John Oyuke (2012) Insurance Ride On Technology To Widen Reach Dated August 14, 2012. Published In Business Weekly. [5] Manvendra Pratap Singh, Ms. Arpita Chakraborty, & Dr. Raju G. Contemporary Issues in Marketing of Life Insurance Services In India International Journal of Multidisciplinary Research Vol.1 Issue 7, November 2011, ISSN 2231 5780. p.p-47-61. [6] Neha Singhvi & Prachi Bhatt,(Jan 2008) Distribution Channels In Life Insurance NIASoM, Pune, Bimaquest - Vol. VIII Issue I, January 2008. [7] Rajendra Prasad Sharma, Karunesh Saxena (2009)Life Insurance Marketing In India: Leveraging The Strengths Of Multi-Channel Distribution presented in International Marketing Trends Congress-2009 [8] Sanjay Manocha, Sr. Subhash Chand Chitkara, A Study of Choice of Customers Towards Distribution Channels of Life Insurance Industry (Vol 1, No 7 (2012). [9] T.Venkateswara Rao, Alternative Distribution Channels in India 6th Global Conference of Actuaries 18 19 February, 2004. ----
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CAUSAL RELATIONSHIP BETWEEN HOUSEHOLD SAVING AND ECONOMIC GROWTH IN INDIA: A GRANGER AND CO INTEGRATION APPROACH
Rajni Pathania, Research Scholar Department of Business Economics Faculty of Commerce The M.S. University of Baroda, Vadodara Gujarat, India
ABSTRACT This study investigates the causal relationship between household saving and economic growth in India for the period 1991-2010, using Annual secondary data. The objectives are empirically analyzed using the Granger causality test and establish the link between household saving and economic growth. The statistical techniques used include the unit root Augmented Dickey Fuller test in order to fulfill the objective of stationarity for all the time series. The Johansen co integration test is used to investigate whether the variables are cointegrated of the same order taking into account the trace statistics tests. The result shows that household saving and GDP cointegrated with each other. The findings imply that the causality between economic growth and household savings runs bidirectional. Keywords: Household Saving, Economic Growth, Granger Causality, Cointegration, Bidirectional
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INTRODUCTION:
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Savings play an important role in economic Growth. Savings which is defined as that part of income not immediately spent or consumed but reserved for future consumption, investment or for unforeseen contingencies, is considered as an indispensable weapon for economic growth and development. Higher Savings provides the main source for investments Its role is reflected in capital formation through increase capital stock and the impact it makes on the capacity to generate more and higher income (Temidayo 2011). Typically, investments are funded through domestic savings mostly and the remainder through foreign capital. Domestic savings are from three sources -households, private and public sector. Household savings is the largest part of total savings The household savings contribute a major part of the national savings. The household savings and economic development are closely related with each other. Fundamentally, the household savings are the main domestic sources of funds for capital investment in infrastructure, education, technology etc. which are necessary for the growth in economy. Besides, higher levels of household savings allow a larger portion of a countrys overall debt to be financed internally (instead external, foreign creditors) and also have a positive impact on economy and its growth (Frczek,2011). In India, Savings constituted 33.7% of GDP in 2010, though pre-crisis it was higher at 36.9% in 2008. The economic slowdown in 2009 saw gross domestic savings fall to 32.2% of the GDP, down from 36.9% in 2008. This increase in gross domestic savings bodes well for Indias economy. Private savings account for 24% of total savings. It stood nearly around 10% of total savings for four decades since independence. As India embraced a market-based economy, corporate savings started increasing. Corporate savings have risen sharply because open markets provided competition, market access and better efficiency. Economic reforms in the 1990s increased corporate savings sharply to around 17% in the same decade. Although adverse economic conditions in 2009 led to diminished corporate profitability and retained earnings, the deterioration in private savings was reversed following recovery as gross domestic savings from corporations increased in 2009-2010. Public sector savings stood around 21% in 1951-1960 and increased to around 25% in the next two decades. In subsequent decades, it lost its share. In the 1990s, it fell to 5.2% of total savings. 1990s saw losses in public enterprises and huge deficits by government that pushed public savings into negative territory. While the household share of gross domestic savings declined from 74% to 69.6% of total gross domestic savings, household savings showed overall improvements, contributing Rs.15,361 billion in gross domestic savings, up from Rs.13,310 billion in 2008-2009. Indeed, household savings remain the largest source of savings, followed by private corporate savings with 24.1% and public savings with 6.3% of gross domestic savings in 2009-2010. Household savings being the largest provides resources not only for household investments but also for private and public investments. Apart from this introduction, this paper is divided into four sections. Section two discusses the previous studies related to relationship between household saving and Economic Growth, Objective of study, source of data and methodology, While section three analyzes the causal relationship between Household savings and Economic Growth in India during 1991 to 2010, section four highlights the main findings, limitation and suggestions. REVIEW OF LITERATURE: A lot of studies have been done on the different aspects of saving and investment relation at national and international level. A few studies have been taken for review: Mohan (2006) investigated the relationship between domestic savings and economic growth for various economies with different income levels for period 1960 to 2001. This study also examined whether the income level of the economy plays an important role in influencing the direction of causality. This paper differs from other studies in the literature primarily in dividing the countries under investigation into lowincome (LIC), low-middle income (LMC), upper middle income (UMC) and high-income (HIC). This study included 25 countries, including ten HICs. Typically, HICs have lower savings and economic growth rate. This paper used Granger causality to compare the no causality or unidirectional/bi-directional causality relationship between savings and economic growth. Empirical results suggest that the economic growth rate Granger causes growth rate of savings in 13 countries. The opposite results prevailed in two countries. In five countries, a bi-directional causation was found. The main conclusion of this study was that income class of a country does play an important role in determining the direction of causality. Sajid And Sarfraz(2008) investigate causal relationship between savings and output in Pakistan. The coInternational Refereed Research Journal www.researchersworld.com Vol.IV,Issue1(2),January 2013[101]
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integration and vector error correction techniques are used to explore direction of causality for the period 1973:1- 2003:4. The results of the co-integration test show that there was long run equilibrium relationship between different measures of savings and level of output. There was mutual short run causality between gross domestic product (GDP) and domestic savings. The unidirectional short run causality runs from output (GNP) to national and domestic savings and from GDP to private savings, only the national savings causes the GDP in the short run. there was unidirectional long run causality from public savings to output (GNP and GDP), and private savings to gross national product (GNP). The results also indicated that the speed of adjustment in case of savings was stronger than that of level of output. Anderson (1999) conducted a study to investigate the causal relationship between real output and savings for Sweden, UK and USA. The results indicated mutual long run relationship between variables only for Sweden and UK. The result also indicated short run bidirectional causality for USA and unidirectional causality from saving to output for UK. No significant evidence of short run causality was found for Sweden. He concluded that the causal chain linking savings and output might differ across the countries. He also suggested that causality in the long run might go in different directions than causality associated with short-term disturbances. Saltz (1999) investigated the direction of causality between savings and growth rate of real GDP for 18 Latin American and newly industrialized countries for the period of 1960-1991. This paper explores an alternative hypothesis: that higher growth rates of GDP cause increased savings. Higher growth rates of income boost the rate of savings and attract more foreign savings. The difference between these two hypotheses was the direction of causality. This study investigated the direction of causality using the EngleGranger error-correction model or the Granger causality test. The results lent for greater support for the hypothesis that faster growth rate of real GDP caused higher growth rate of savings. Lean (2009) examined the relationship between the growth of domestic savings and economic growth in China. Cointegration and causality tests covered the country as a whole and four of selected representative provinces for the period of 1955-2004. Economic growth is found to have a long-running relationship with household savings and enterprise savings. Bilateral causality exists between the domestic savings growth and the economic growth in the short-run. In the long-run, a unidirectional causality exists running from the domestic savings growth to the economic growth. However, the provinces show a different statistical relationship between these two variables. Moreover, a lot of studies have been done on the causal relationship between saving and Economic Growth at national and international level. Our research study is somewhat unique in the sense that so far, no study has been covered during the period 1991 to 2010-11 at national level on Causal Relationship Between Household saving and Economic Growth in India. . There is enough scope of research in this area. OBJECTIVE OF THE PAPER: The main objective of this paper is to investigate causal relationship between household saving and Economic Growth in India. We want to empirically investigate the effect of domestic saving on Economic Growth and also examine the impact of Economic Growth on Household saving in India during 1991 to 2010. HYPOTHESES OF THE STUDY: The present paper aims at determining empirical causal relationship between Domestic saving and capital formation in India: 1. There is no significant relationship between Household saving and Economic Growth in India. RESEARCH METHODOLOGY AND DATA SOURCES: a) SOURCES OF DATA : The study used secondary data available in published sources. The time series data on Household Saving and Gross domestic Product was compiled from the Reserve Bank of India website and Economic Survey 2011-12. b) TIME PERIOD: Data used in this paper are covering the 1991-2010 periods. Variables used in this study are HSAV (Household Saving) and GDP (Gross domestic Product).
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c) METHODOLOGY: In order to determine the order of integration of the time series variables we first conduct the unit root test, we employ the augmented Dickey-Fuller test to test for the Stationarity of data. After that we proceed to test the co-integration among the different variables with the help of Johansen co-integration test. Based on the results of co-integration test we perform Granger-Causality test. d) GRANGER CAUSALITY TEST BETWEEN HOUSEHOLD SAVING (HSAV) AND ECONOMIC GROWTH (GDP): The Granger-causality test is used to ascertain the direction of causality between Household saving and Economic Growth. This test assumes that the underlying time series are stationary, i.e., I(0) processes. Therefore, it is imperative to examine whether HSAV and GDP are stationary. Augmented Dickey-Fuller (ADF) test is employed to check the stationary property of these two variables. One of the implications of Granger- causality test is that if two variables, say X, and Y, are cointegrated and each is individually I(I), that is, integrated of order one, then either X, must Granger-cause Y, or Y, must Granger-cause X, Therefore, it is necessary to ascertain whether two variables X, and Y, are cointegrated, that is, whether there is any long-run relationship between these two variables. The casual relationship between HSAV and GDP is examined by standard Granger-causality test. Following equations are estimated for this purpose:
n m
1t
HSAVt =
ai GDPt i + b j HSAVt j +
i =1 j =1
-------(1) -----------------(2)
m i t i
GDPt =
c HSAV
i =1
+ d j GDPt j +
j =1
2t
where: GDP = Gross domestic Product HSAV = Household Saving a,b,c,d = Sensitivity coefficient, U = Residual component, t = Period of analysis i = Number of variable delays EMPIRICAL RESULTS: AUGMENTED DICKEY FULLER (ADF) UNIT ROOT TESTS: We first examine the unit root test for Household Saving and Gross Domestic Product. For this analysis, we conducted the standard augmented Dickey-Fuller test (Dickey F., 1979), (Fuller, 1979) for variables (GDS and GDCF) simultaneously to test whether each variable taking individually was stationary or not. The results of ADF tests on the stationary of Household saving (HSAV) and gross domestic Product (GDP) are given in table 1. Table 1: Augmented Dickey Fuller (Adf) Unit Root Tests Variable HSAV Adf Test Statistic -4.08869 (0.0009) Order of Integration Stationary at level Lag Order 1 Critical Value
1% = -2.7057 5%= -1.9614 10%=-1.6257 1%=--2.6968 -5.06981 GDP Stationary at level 1 5%= --1.9602 (0.0001) 10%= --1.6251 Source: Researchers own calculation based on HSAV and GDP data 1991-2010. The critical value provided at 1% and 5% level of significant is -2.7057 & -1.9614. And the computed tua value is 4.088646. The ADF test states if the computed tua value is more negative than the critical value or the absolute of computed tua value is more positive than the absolute of the critical value, so we reject the
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null hypothesis of unit root. From this test, the computed tua value is more positive than the absolute 1% and 5% critical value, so we reject the null hypothesis of unit root. This is meant that the data of Household saving Growth is stationary. The critical value provided at 1% and 5% level of significant is -2.6968 and -1.9602. The computed tua value is -5.06981 which is more positive than the absolute 1% and 5% critical value. Therefore, reject the null hypothesis of unit root. This is meant that the data of gross domestic product is stationary. JOHANSEN BASED CO INTEGRATION TEST: Table 2: Results of the Johansen Based Co Integration Test Lag Interval 1 to 1 Test assumption Eigen value Likelihood ratio/ trace Value 22.16337 5%Critical Value 1% Critical Value 20.04 Hypothesized No. of CE(s) None** At most 1**
Linear 0.626746 15.41 deterministic 0.217923 6.724427 3.76 6.65 trend in the data Source: Researchers own calculation based on HSAV and GDP data 1991-2010. *(**) denotes rejection of the hypothesis at 5%(1%) significance level L.R. or trace value test indicates 2 co integrating equation(s) at 5% significance level
The second stage was to perform the cointegration test using the popular method developed by (Johansen S. , 1988) and (Juselius K. , 1990). The Trace-Statistic value is shown to be greater than the critical values at both 1% and 5% levels, thus indicating 2 co-integrating equations at both 1% and 5% levels. GRANGER-CAUSALITY TEST: Table 3: Granger-Causality Test CASE Null Hypothesis: M (Lag) F-Statistic CASE I HSAV does not Granger Cause GDP 2 4.60505 CASE II GDP does not Granger Cause HSAV 2 7.66855 Source: Researchers own calculation based on HSAV and GDP data 1991-2010. Probability 0.03076 0.00631
When two variables are cointegrated then Granger causality exists in at least one direction. These results suggest that the direction of causality is from GDP growth rate to Gross domestic saving growth rate since the estimated F-statistic is significant at the 5 % level of significant; Reject the null hypothesis that GDP does not Granger Cause GDS. On the other hand, there is also reverse causation from Gross domestic saving growth to GDP growth, because the F value is statistically significant in both cases. The results in Table 3 suggest that there is a statistical evidence of bidirectional Granger causality in between GDP and GDS. Thus the results in Table 3 suggest that there is bidirectional causality between economic growth and saving growth in India. SUMMARY, CONCLUSION AND SUGGESTIONS: The main objective of this research study was to test the direction of causality between household saving and economic growth for India. The technique employed was the Granger Causality Test approach. The results of the co-integration test show that there is long run equilibrium relationship between different household saving and GDP. The results of the Granger causality test suggest a bi-directional relationship between household savings and economic growth in India. If savings is the mover of growth then policies should be implemented which give savings incentive The results imply that policies should be implemented which are in favour of savings, so that more economic growth can be promoted in India and more Economic growth promote more household savings in India. One major limitation of this paper is that we have not examined relation of the Public, Private savings and Economic Growth in India. We are hope this issue will receive some empirical attention in future studies
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REFERENCES:
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[1] Anderson, B. (1999), On the Causality between Saving and Growth: Long and Short Run Dynamics and Country Heterogeneity. Department of Economics, Uppsala University, Sweden [2] Boena, F.(2011) The factors affecting the level of household savings and their influence on economy development, 8th International scientific conference Financial management of firms and financial institutions Ostrava, faculty of economics, finance department 6th 7th September 2011 [3] Lean, H. (2009) "The domestic savings and economic growth relationship in China", Journal of Chinese Economic and Foreign Trade Studies, Vol. 2.No.1, pp.5 17. [4] Mohan, R(2006) "Causal Relationship Between Savings And Economic Growth In Countries With Different Income Levels.." Economics Bulletin, Vol. 5, No. 3 pp. 112 [5] Sajid And Sarfraz(2008), Savings And Economic Growth In Pakistan: An Issue Of Causality, Pakistan Economic and Social Review Vol.46, No. 1 (Summer 2008), pp. 17-36 [6] Saltz, I. S. (1999), An examination of causal relationship between savings and growth in the Third World, Journal of Economics and Finance, Vol.23, No. 1, pp. 90-98. ----
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QUALITY OF WORK LIFE IN IT SECTOR & ITS IMPACT ON EMPLOYEE PRODUCTIVITY

Dr. Ashfaque Ahmed, Lecturer (Business Studies), Al Mussanna College of Technology, Oman.
ABSTRACT Many factors determine the meaning of quality of work life (QWL), one of which is work Environment. A group of workforces that is greatly affected in QWL as a result of dynamic changes in work environment is information technology (IT) professionals. This article reviews the meaning of QWL, analyses constructs of QWL based on models and past research from the perspective of IT professionals in many countries and in Malaysia. The constructs of QWL discussed are health and well-being, job security, job satisfaction, competency development, work and non-work life balance. The article concludes that QWL from the perspective of IT professionals is challenging both to the individuals and organizations. The implications of this meaning and constructs for future research in QWL from the perspective of IT professionals are discussed. Keywords: Quality of Work Life, Information and Technology Professionals, Job Security, Work-Life Balance, Competency Development and Job Satisfaction.
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INTRODUCTION:
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The success of any organization is highly dependant on how it attracts, recruits, motivates, and retains its workforce. Today's organizations need to be more flexible so that they are equipped to develop their workforce and enjoy their commitment. Therefore, organizations are required to adopt a strategy to improve the employees quality of work life'(QWL) to satisfy both the organizational objectives and employee needs. In a highly competitive work environment, there is great pressure on professionals to not just perform, but excel. There is also excessive expectation from their organisations to increase productivity at any cost. This takes its toll on the physical and mental well-being of professionals. In fact, striking a right balance between work and life is better said than done. Effective HR activities can help employees to enjoy their work as well as not neglect their personal life. The obvious benefits for the organisation are higher productivity, lower staff turnover, reduction in absenteeism and better utilisation of talent. This study aims at providing inputs, and recommendations for the successful implementation of quality of work life programs. The Questionnaire has been filled by 100 samples with respect to various criterias, they are: DESIGNATION: 1. Sr. Consultant 2. Consultant 3. Technical Analyst 4. Programmer Analyst 5. Programmer Analyst Trainee EXPERIENCE: i. ii. iii. iv. 1-5 years 6-10 years 10-15years 16 and above
GENDER: i. Male ii. Female
AGE: i. ii. iii. iv. 20-29 30-39 40-49 50 and above
Based on these above criterias 20 factors affecting quality of work life were framed. The employees had to mark them according to the preference order. Based on the responses the data was analyzed. LITERATURE REVIEW: Quality of work life (QWL) is considered a philosophy as it is rooted in strong, humanistic values. It focuses on the problem of creating a humane working environment. It embodies the following inter-related set of ideas: a) Ideas dealing with a body of knowledge, concepts, experiences related to the nature, meaning and structure of work; b) Ideas dealing with nature and process of introducing and managing organization change ,and c) Ideas dealing with outcomes or results of the change process.
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RELATIONSHIP BETWEEN QUALITY OF WORK AND QUALITY OF LIFE:

Good health
Quality of work
Job satisfaction
Happiness and hope in life Self actualization
High life expectations
Other work factors
THE LINK BETWEEN QUALITY AND PRODUCTIVITY: 1. Effective quality improvement can be instrumental in increasing productivity and reducing cost. 2. The cost of achieving quality improvements and increased productivity is often negligible The impact of increased quality on organizational performance is depicted below:
Increased reliability Increased Quality Increased productivity Lower costs Higher prices Higher Profits
RESEARCH METHODOLOGY: HYPOTHESIS: HO = The Quality of work life does not affect the employee productivity. Ha = The Quality of work life affects the employee productivity. TYPE OF DATA: RESEARCH TYPE: Exploratory research SAMPLE PROCEDURE: Universe :- The employees of IT sector Population:-The employees of who have attended the Quality of Work life (QWL) programmes earlier
SAMPLE FRAME Sample unit 100 employees Sample design Convenience sampling.
METHODS OF DATA COLLECTION: PRIMARY DATA: The primary data used for this project are: Questionnaire-A questionnaire has been designed, wherein the respondents were asked to answer. It contained 3 sections. It has been answered by 100 employees of different designations corresponding to 20 quality of work life factors SPSS-It is software used for statistical analysis and interpretation of the data. The SPSS version 16.0 was used for this project. SECONDARY DATA: The secondary data used for this project are:International Refereed Research Journal www.researchersworld.com Vol.IV,Issue1(2),January 2013[108]
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Books Journals Newspapers Magazines Websites
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STATISTICAL TOOL USED: CORRELATION: Karl Pearsons coefficient of correlation is considered and is determined by the following formula: XY r= Nxy XY= product of deviations N = No.of observations (pair of items) x =Standard deviation of X y = Standard deviation of Y r = Coefficient of correlation But instead of representing the same in above in above order, for simple understanding, we can restate it as follows: XY r= X2Y2 FINDINGS, FREQUENCIES: Statistics Dsgn Gender 100.00 100.00 0.00 0.00 3.14 1.47 3.00 1.00 3.00 1.00 1.155 .502 314.00 147.00 Exp. 100.00 0.00 1.37 1.00 1.00 .747 137.00 Age 100.00 0.00 1.43 1.00 1.00 .891 143.00
Valid Missing Mean Median Mode Std. Deviation Sum
DESIGNATION & EXPERIENCE: Frequency 9 20 32 26 13 100 Dsgn Percent 9.0 20.0 32.0 26.0 13.0 100.0 Exp Percent 76.0 13.0 10.0 Valid Percent 9.0 20.0 32.0 26.0 13.0 s Cumulative Percent 9.0 29.0 61.0 87.0 100.0
Valid
Sr.consultant Consultant Technical Analyst Programmer Analyst Programmer Analyst Trainee Total
Valid
1-5yrs 6-10yrs 10-15yrs
Frequency 76 13 10
Valid Percent 76.0 13.0 10.0
Cumulative Percent 76.0 89.0 99.0
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16 and above Total
1 100
1.0 100.0
1.0 100.0
100.0
PIE CHART- DESIGNATION
PIE CHART- EXPERIENCE
GENDER & AGE: Frequency 53 47 100 Gender Percent Valid Percent 53.0 53.0 47.0 47.0 100.0 100.0 Age Percent 74.0 16.0 6.0 4.0 100.0 Cumulative Percent 53.0 100.0
Valid
Male Female Total
Valid
20-29 30-39 40-49 50 and above Total
Frequency 74 16 6 4 100
Valid Percent 74.0 16.0 6.0 4.0 100.0
Cumulative Percent 74.0 90.0 96.0 100.0
PIE CHART-GENDER
PIE CHART-AGE
ANALYSIS: DESCRIPTIVE STATISTICS: N 100 100 100 Descriptive Statistics Minimum Maximum 3 5 2 5 2 5 Mean 4.26 4.31 4.18 Std. Deviation .733 .813 .857
Benefits JobSec Flexitime
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WLBal PrcptMgt Recgn Funatwrk Prsnlgrth CarGrth FairCmpn OrgInv TrngOpp SupvSprt PeerSprt Involmnt WrkStres WrkCond JobStcftn LeaveOpt WrkGrp Valid N (listwise)
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100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100
1 2 2 1 2 1 2 2 2 1 1 1 1 1 2 1 1
5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5
4.14 3.73 4.13 3.50 4.20 4.12 4.08 3.85 3.95 3.87 3.70 3.59 3.05 3.81 4.04 3.55 3.34
.841 .941 .825 1.176 .853 1.066 .992 .892 .880 .872 1.000 1.093 1.359 .992 .887 .947 1.007
CORRELATIONS: CORRELATION BETWEEN DIFFERENT QWL FACTORS AND EMPLOYEE PRODUCTIVITY: CORRELATION BETWEEN BENEFITS AND EMPLOYEE PRODUCTIVITY: Correlations Benefits RELTN Pearson Correlation 1.000 .349** Benefits Sig. (2-tailed) .000 N 100.000 100 Pearson Correlation .349** 1.000 RELTN Sig. (2-tailed) .000 N 100 100.000 **. Correlation is significant at the 0.01 level (2-tailed). INTERPRETATION: Benefits and employee productivity are related with 0.349 correlation CORRELATION BETWEEN JOB SECURITY AND EMPLOYEE PRODUCTIVITY: Correlations Pearson Correlation Sig. (2-tailed) N Pearson Correlation Sig. (2-tailed) N JobSec 1.000 100.000 .126 .212 100 RELTN .126 .212 100 1.000 100.000
JobSec
RELTN INTERPRETATION:
Job security and employee productivity are related with 0.126 correlation
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CORRELATION BETWEEN FLEXI-TIME AND EMPLOYEE PRODUCTIVITY: Correlations RELTN Pearson Correlation 1.000 Sig. (2-tailed) RELTN N 100.000 Pearson Correlation .214* Sig. (2-tailed) .033 Flexitime N 100 *. Correlation is significant at the 0.05 level (2-tailed). INTERPRETATION: Flexi-time and employee productivity are related with 0.214 correlation CORRELATION BETWEEN WORK AND LIFE BALANCE AND EMPLOYEE PRODUCTIVITY: Correlations Pearson Correlation Sig. (2-tailed) N Pearson Correlation Sig. (2-tailed) N RELTN 1.000 100.000 .194 .053 100 WLBalance .194 .053 100 1.000 100.000 Flexitime .214* .033 100 1.000 100.000
RELTN
WLBalance
INTERPRETATION: Work and life balance and employee productivity are related 0.194 correlations. CORRELATION BETWEEN PARTICIPATIVE MANAGEMENT AND EMPLOYEE PRODUCTIVITY: Correlations RELTN Pearson Correlation 1.000 Sig. (2-tailed) RELTN N 100.000 Pearson Correlation .224* Sig. (2-tailed) .025 PrcptMgt N 100 *. Correlation is significant at the 0.05 level (2-tailed). INTERPRETATION: PrcptMgt .224* .025 100 1.000 100.000
Participative Management and employee productivity are related 0.224 correlation. CORRELATION BETWEEN RECOGNITION AND EMPLOYEE PRODUCTIVITY: Correlations Pearson Correlation Sig. (2-tailed) N Pearson Correlation Sig. (2-tailed) RELTN 1.000 100.000 .218* .029 Recgn .218* .029 100 1.000
RELTN Recgn
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N *. Correlation is significant at the 0.05 level (2-tailed). INTERPRETATION: Recognition and employee productivity are related with 0.218correlation.
100
100.000
CORRELATION BETWEEN FUN AT WORKPLACE AND EMPLOYEE PRODUCTIVITY: Correlations Pearson Correlation Sig. (2-tailed) N Pearson Correlation Sig. (2-tailed) N RELTN 1.000 100.000 .025 .802 100 Funatwrk .025 .802 100 1.000 100.000
RELTN
Fun at work INTERPRETATION:
Fun at workplace and employee productivity are related with 0.025correlation CORRELATION BETWEEN PERSONAL GROWTH OPPORTUNITIES AND EMPLOYEE PRODUCTIVITY: Correlations Pearson Correlation Sig. (2-tailed) N Pearson Correlation Sig. (2-tailed) N RELTN 1.000 100.000 .029 .772 100 Prsnlgrth .029 .772 100 1.000 100.000
RELTN
Prsnlgrth INTERPRETATION:
Personal growth opportunities and employee productivity are related with 0.025correlation CORRELATION BETWEEN CAREER GROWTH OPPORTUNITIES AND EMPLOYEE PRODUCTIVITY: Correlations Pearson Correlation Sig. (2-tailed) N Pearson Correlation Sig. (2-tailed) N RELTN 1.000 100.000 .189 .059 100 CarGrth .189 .059 100 1.000 100.000
RELTN
CarGrth
INTERPRETATION: Career growth opportunities and employee productivity are related with 0.189 correlation. CORRELATION BETWEEN FAIR COMPENSATION AND EMPLOYEE PRODUCTIVITY: Correlations RELTN RELTN Pearson Correlation Sig. (2-tailed) 1.000 FairCmpn -.058 .568
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N Pearson Correlation FairCmpn INTERPRETATION: Fair compensation and employee productivity are not related with -0.058 correlation. Sig. (2-tailed) N
100.000 -.058 .568 100
100 1.000 100.000
CORRELATION BETWEEN ORGANIZATIONAL INVOLVEMENT AND EMPLOYEE PRODUCTIVITY: Correlations Pearson Correlation Sig. (2-tailed) N Pearson Correlation Sig. (2-tailed) N RELTN 1.000 100.000 .134 .183 100 OrgInv .134 .183 100 1.000 100.000
RELTN
OrgInv
INTERPRETATION: Organizational Involvement and employee productivity are related with 0.134 correlation. CORRELATION BETWEEN TRAINING OPPORTUNITIES AND EMPLOYEE PRODUCTIVITY: Correlations Pearson Correlation Sig. (2-tailed) RELTN N Pearson Correlation Sig. (2-tailed) TrngOpp N **. Correlation is significant at the 0.01 level (2-tailed). INTERPRETATION: Training opportunities and employee productivity are related with 0.292 correlations CORRELATION BETWEEN SUPERVISORY SUPPORT AND EMPLOYEE PRODUCTIVITY: Correlations RELTN Pearson Correlation Sig. (2-tailed) N Pearson Correlation Sig. (2-tailed) N RELTN 1.000 100.000 .186 .064 100 SupvSprt .186 .064 100 1.000 100.000 RELTN 1.000 100.000 .292** .003 100 TrngOpp .292** .003 100 1.000 100.000
SupvSprt
INTERPRETATION: Supervisory support and employee productivity are related with 0.186 correlations
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CORRELATION BETWEEN SUPPORT FROM PEERS AND EMPLOYEE PRODUCTIVITY: Correlations RELTN Pearson Correlation 1.000 Sig. (2-tailed) N 100.000 Pearson Correlation .239* Sig. (2-tailed) .016 N 100 PeerSprt .239* .016 100 1.000 100.000
RELTN
PeerSprt
INTERPRETATION: support from peers and employee productivity are related with 0.239 correlation CORRELATION BETWEEN INVOLVEMENT AND EMPLOYEE PRODUCTIVITY: Correlations Pearson Correlation RELTN Sig. (2-tailed) N Pearson Correlation Involmnt Sig. (2-tailed) N **. Correlation is significant at the 0.01 level (2-tailed). RELTN 1.000 100.000 .303** .002 100 Involmnt .303** .002 100 1.000 100.000
INTERPRETATION: Involvement and employee productivity are related with 0.303 correlation INTERPRETATION: Interpretation is facilitated by correlating the various factors for QWL and relating it to employee productivity. QWL factors independently affect the employee productivity in an organization. Following interpretations can be derived from the study: Few QWL factors should be emphasized in an organization like Benefits, Job Security, Flextime, Work and life balance etc so that employee productivity increases. Fair compensation, working conditions, job satisfaction and adequate leave options though are very useful for improving quality of work life but are not an active player in increasing employee productivity. Thus, Quality of work life has an impact on employee productivity and both of them have a correlation of 0.24092436. Various other interpretations can be derived from the SECTION III of the questionnaire. Are any Quality of work life (QWL) programmers conducted in your organization? Frequency Percent Valid Percent Cumulative Percent No 23 23.0 23.0 23.0 Valid Yes 77 77.0 77.0 100.0 Total 100 100.0 100.0
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QWL PROGRAMMES WILL HELP IN BRINGING OUT CHANGE IN PRODUCTIVITY: S_3_1 Frequency Didnt attend QWL programme Strongly Disagree Disagree No Opinion Agree Strongly Agree Total 23 2 1 16 35 23 100 Percent 23.0 2.0 1.0 16.0 35.0 23.0 100.0 Valid Percent 23.0 2.0 1.0 16.0 35.0 23.0 100.0 Cumulative Percent 23.0 25.0 26.0 42.0 77.0 100.0
Valid
Here the respondents who have attended the QWL programme gave their response on their productivity level. A large population of employees agrees that QWL programmes have enhanced their productivity. This question was used as a variable for correlating the QWL factors which helps in employee productivity. DO YOU FIND ANY USEFULNESS AFTER ATTENDING EARLIER QWL PROGRAMS? Frequency Didnt attend QWL programme Yes No Total 23 68 9 100 S_3_2 Percent Valid Percent 23.0 68.0 9.0 100.0 23.0 68.0 9.0 100.0 Cumulative Percent 23.0 91.0 100.0
Valid
Respondents who have attended the QWL programmes find that it has a great usefulness and they are quite satisfied with it. ACCORDING TO YOU WHICH PROGRAMME SHOULD BE GIVEN MORE ATTENTION? S_3_3 Frequency Percent 23 23.0 19 19.0 45 45.0 13 13.0 100 100.0 Valid Percent 23.0 19.0 45.0 13.0 100.0 Cumulative Percent 23.0 42.0 87.0 100.0
Valid
Didnt attend QWL programme Training Programme QWL Programme Issue Oriented Programmes Total
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Respondents who have attended earlier QWL programmes agree with the fact and need of more and more QWL programmes in the organization as compared to Training programme and Issue oriented programme Thus, the alternate hypothesis is accepted and the null hypothesis is rejected. RECOMMENDATION: It is hereby recommended that quality of work life has a close correlation with employee productivity. If the QWL programmes are emphasized in an organization it can lead to a more motivated and productive workforce. Looking at the current scenario of the IT sector following suggestions can be given: Employers should concentrate on the compensation part. The employees should be fairly compensated so that they can contribute more towards the organizational goal The working conditions should be better i.e. the ambience, culture, so that the employees can feel more connected to the organization and contribute their 100% If the above two conditions are satisfied the employee satisfaction would come which means less of attrition rate, high employee motivation and thus more of productivity The IT sector employees do not get enough leave options, due to which they do not find their work excited and leads to boredom. Organizations can take provisions to increase the leave options. More and more QWL Programmes should be conducted so that they can have a close interaction with their employees. Proper feedbacks and suggestions should be generated from the QWL Programmes so that the discrepancies can be removed. Feedbacks can lead the employees to be a part of the organizations vision and they would be satisfied Thus, it would lead to a productive workforce which has all his personal and professional life balanced. REFERENCES: [1] Foy nancy,1996, The Empowering Organisation, Empowering People at work,p3-9 [2] Deb tapomoy,2006 Quality of Work Life,Human Resource Development,o 425-460 [3] Carter c.c.,1994 Human Resources management and The Total Quality imperative, New York, AMACOM [4] Rao V.S.P;2007,2nd Ed; Participation and Empowerment; Human Resources Management; p 544-547. [5] Malhotra Naresh K,2007, ,5th Ed Correlation and Regression, Marketing Research,p534-546. ----
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INNOVATIVE LEARNING: FACE BOOK VS LINKEDIN
Ms. Bharti Keswani (Ms. Riya Malukani), Research Scholar DAVV, Sr. Lecturer LNCT-MER, India
Dr. Sourabhi Chaturvedi, Professor SVITS Indore, India
ABSTRACT Learning is acquiring new or modifying existing knowledge, behaviors, skills, values, or preferences and may involve synthesizing different types of information. Learning is a remarkably social process. Social groups provide the resources for their members to learn. In VCs group of people communicate with each other through electronic media and share common interests. VC can be good platform for learning. In March 2010 it has been reported by Financial Times that Facebook gets more hits per week than the popular search engine Google. The objective of this research is to compare the perception for learning between two popular site Facebook and LinkedIN. Keywords: Learning, Facebook, LinkedIn, Readability, Accuracy, Completeness, Reliability, Timeliness, Indepthness.
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INTRODUCTION:
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Each time we keep a perception in our mind is learning. Learning is a continuous ongoing process. Learning is acquiring new or modifying existing knowledge, behaviors, skills, values, or preferences and may involve synthesizing different types of information. Learning is a remarkably social process. Social groups provide the resources for their members to learn. ONLINE COMMUNITIES: FACEBOOK AND LINKEDIN: The social networking concept in online environment was started on 1997 with the launch of six degrees.com Growth of social networking site like Facebook, linkedIn is now worldwide phenomenon, It store large volume of data of their member. In March 2010 it has been reported by Financial Times that Facebook gets more hits per week than the popular search engine Google . FaceBook is a social networking service . It was founded by Mark Zuckerberg with his college roommates and fellow Harvard University students which launched in February 2004. As of September 2012, Face Book has over one billion active users. The website is the most popular for uploading photos, with 50 billion uploaded cumulatively. LinkedIn is also a social networking website but for people in professional occupations. Founded in December 2002 and launched on May 5, 2003. It is mainly used for professional networking. As of June 2012, LinkedIn reports more than 175 million registered users in more than 200 countries and territories. LinkedIn has also been praised for its usefulness in fostering business relationships VC AND LEARNING: Online communication tools such as newsgroups, discussion boards, chat and messaging programs, etc. are used by many online learning courses. In Virtual Communities group of people communicate with each other through electronic media and share common interests. VC eliminates the limitation of Offline Communities geographical location, physical interaction or ethnic origin. VC can be good platform for learning. VC play a important role in supply of knowledge, Individual can use VC in two ways either they can get information or give information. Getting information is simply reading the ongoing conversation in the community, as well as actively soliciting information by posting questions and comments. Giving information, on the other hand, is done by posting conversation, It can be direct response to another members post or simply intiating a new topic in the community by posting commentary. The Member can share experiences, problems and solutions, tools, methodologies. Such communication results in the improvement of the knowledge of each participant in the community and contributes to the development of the knowledge within the domain.VC can helps in providing Enhanced Learning Environment, Collaborative Knowledge, Deepening Of Knowledge and Cyclical Knowledge development. LITERATURE REVIEW: Igbaria et al. (1998). suggested that sustaining the virtual community does not only motivate knowledge sharing, it also has significant impact on online business activity. Barab et al. (2001) considered the discussion forum system as important for mutual learning. Teo et,al.(2003) focused on the virtual learning communities. He examined the impact of information accessibility and community adaptively on the sustainability of virtual learning communities. The results indicated that both information accessibility and community adaptively have significant effects on user perceptions and behavioral intention. Sharratt and Usoro(2003) discussed the importance of knowledge as an organizational resource and sustainable source of competitive advantage. They explored the role of technology within KM and identified the emergence of CoPs in KM which play an important role for the creation and sharing of knowledge. They ascertained the importance of both information systems and social interaction in leveraging knowledge. Phang et al.(2009) The chief objective in many online communities is to allow for knowledge sharing and learning, Individuals placed significantly greater importance on ease of use and reliability in evaluating usability, Whereas knowledge tracking fulfillment is perceived to be more important when individuals contribute knowledge. Ease of Use, System Reliability, Knowledge Tracking Fulfillment, Social Interactivity, Perception of Moderator usability and sociability as antecedents.
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Chen et al.(2009) provides a framework for online knowledge sharing behavior in virtual learning communities. Their finding shows positive and significant relationship between subjective norm and intention which suggests that the opinions from teachers, friends or classmates help to form an atmosphere which facilitates the earnestness of joining in online discussion to acquire or apply knowledge. The result also shows that Web-specific self-efficacy positively and significantly influences the intention. Social network ties also positively and significantly associated with knowledge sharing intention. This implies that once an individual build up relationships with other Virtual Learning Community (VLC) members that he feels comfortable to share his ideas, thoughts, or story, his intention of performing such behavior will be stronger. Thus Overall result shows that Learners initial attitude toward sharing knowledge through the Web site of the VLC is shown to be significantly associated with their intentions of performing such behavior. Zhaoli et al.(2009) Their result shows two groups of people are important in driving the growth of communities. First there are 85% people which were pure contributors and seldom ask any questions. The second group of users are those who seldom answer questions, but always ask questions. They states that their behavior seems selfish at the surface but they are actually the key factors driving the growth of online knowledge sharing communities. It is precisely because of these users questions that the online communities see reasons of existence. They also investigated motivations of contributing knowledge. Reward Points and reciprocal supportiveness are factors consider for knowledge sharing behavior. They also found that the value of shared knowledge sees a positive correlation with past behavior. Those members who historically contributed a lot tend to award members higher who answer their questions. These people are also the core members driving the growth of online communities. The objective of this research paper is to compares members perception of usablity for Learning through Facebook and LinkedIn . The Hypothesis we assume H0 H0: There is no significance difference between the perceptions of usability for Learning through Facebook and LinkedIn We develop Five construct from Literature Review Readablity, Accuracy, Completeness, Reliability, Timeliness, Indepthness . Readability is the ease in which text can be read and understood.Accuracy is the state of being accurate, freedom from mistakes, this exemption arising from carefulness. Completeness is the state of being complete and entire; having everything that is needed. Reliability Yielding the same or compatible results in different clinical experiments or statistical trials Timeliness is Occurring at a suitable time. Indepthness is carefully worked out, detailed and thorough. For these survey was conducted from the members of Facebook and Linkedin about their perception for learning through Facebook and Linkedin. For this 30 members of LinkedIn and 30 members of Facebook were surveyed using Likert 5 Point Scale. For this aggregate of Readablity, Accuracy, Completeness, Reliability, Timeliness, Indepthness of each comminity was taken. After that T test is conducted between two samples. SPSS 17 was used to conduct ttest in order to compare the difference in perception of Facebook and Linkedin. Readability : My VC provide me better readability. Accuracy : My VC provide accuracy of the knowledge Completeness : My Vc provides me complete Knowledge Reliability : My Vc is Reliable. Timeliness : My Vc provides me timely Knowledge Indepthness My Vc provides me deep knowledge The Hypothesis we assume H0 H0: There is no significance difference between the perceptions of usability for Learning in two different VC Group Statistics Online Communities FaceBook OverAllPerception LinkedIn N 30 30 Mean Std. Deviation 3.40 .441 3.47 .834 Std. Error Mean .081 .152
The above table provides useful descriptive statistics for the two groups i.e Facebook User and LinkedIn
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User that we compared including the mean and standard deviation. Independent Samples Test
Levene's Test for Equality of Variances t-test for Equality of Means 95% Confidence Interval of the Difference F Equal variances assumed Equal variances not assumed Sig. t Df 58 Sig. (2Mean tailed) Difference .706 -.065 Std. Error Difference .172 Lower -.410 Upper .279
Over All Percept ion
7.489 .008 -.379
-.379 44.043
.706
-.065
.172
-.412
.282
As the variance (Levene's test for Equality of Variances) is greater than .05 we will use the Equal variances assumed Row Since the p value .706 is more than -.379 we accept the null hypothesis and conclude that there is no significant difference between the mean score in the perception for learning through FaceBook & LinkedIn at 5% significance level. We conclude that there is No significance difference in the perception for learning between two communities. There is no significance difference in Readablity, Accuracy, Completeness, Reliability, Timeliness, and Indepthness. Member perceived no difference in Facebook & LinkedIn in Learning Thus, we can say that learning is social process, and the tools play an important role in learning. Vcs fosters an online environment that affords rich social interactions with their tools to aid the communication. This research can be useful for Organization Employees for providing them training through Virtual Communities and for usage of knowledge repository and Students will be benefitted through this VC for learning. Learners could discuss case studies, trends and analyses and can share their findings, analyses, reports or, projects with others. REFERENCES: [1] Barab, S. A., J. G. Makinster, J. A. Moore, D. J. Cunningham, and The ILF Design Team (2001) Designing and Building an On-line Community: The Struggle to Support Sociability in the Inquiry Learning Forum,Educational Technology Research and Development, (49)4, pp. 71-96. [2] Chen, I. Y. L., Chen, N.-S., & Kinshuk (2009). Examining the Factors Influencing Participants Knowledge Sharing Behavior in Virtual Learning Communities. Educational Technology & Society, 12 (1), 134148. [3] Igbaria, M., Shayo, C., & Olfman, L. (1998). Virtual societies: their prospects and dilemmas. San Diego, CA: Academic Press [4] Phang Chee Wei , Kankanhalli Atrevi and Sabherwal Rajiv(2009), Usability and Sociability in Online Communities: A Comparative Study of Knowledge Seeking and Contribution" Volume 10, Issue 10, pp. 721-747. [5] Sharratt Mark and Usoro Abel (2003), Understanding Knowledge-Sharing in Online Communities of Practice, Electronic Journal on Knowledge Management, Volume 1 Issue 2 , 187-196 [6] Zhaoli Meng(2009) , Knowledge Sharing In Online Communities , 17th European Conference on Information Systems. [7] http://en.wikipedia.org/wiki/Facebook , Last Accessed 31/12/12 [8] http://en.wikipedia.org/wiki/LinkedIn Last Accessed 31/12/12 ----
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GREEN MARKETING: MARKETING & SOCIAL ISSUE
Prof. Chetan N. Jagale, Assistant Professor, Matoshri College of Management & Research Centre, Eklahare, Nasik., India
Prof. Sharad D. Dalvi, Assistant Professor, Matoshri College of Management & Research Centre, Eklahare, Nasik., India
ABSTRACT Since time immemorial, human beings are using natural resources for their own benefits. But with this selfish and unsystematic use, it seems that we forget, some of these resources are nonrenewable. We know that if we dont use them properly, our next generation will suffer for the scarcity of such resources which may hamper their development and after a period of time; also affect their survival. Marketing is related with all the processes; right from production to Consumption. So knowingly or unknowingly, marketing is also one of the contributors for this detrimental human act. Green or Environmental marketing is a marketing where human needs are satisfied with minimal detrimental impact on the natural environment. Green marketing includes consumer goods, Industrial Goods and services sector as well. So manufacturing and distribution of such products and services creates ecological imbalance. Innovating and developing of such manufacturing and distribution process having least threat to the environments is a big challenge in front of todays business houses. Ultimately Green marketing incurs extra cost to the manufacturer or service providers, but all the stakeholders should be ready to bear that cost. Business firms have already started to respond to Green marketing concept by adopting and practicing new strategies. The most important advantage of Green marketing is competitive advantage by having eco-friendly product. At the same time, it should be accepted by all that it is everyones responsibility towards society. Thinking by this way, we are putting a small step towards our future betterment and that of next generation. Keywords: Green Marketing, Ecological Marketing, Environment, Eco-Friendly, Consumer.
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INTRODUCTION:
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As on today, everyone prefers for natural environment which is basis of all activity. Natural environment and eco-system services provide us with basic needs of every human being that is food, water, shelter and materials for living. As all the economic activities rely on the natural resources and the environment, it is duty of all stakeholders to preserve it. We should take utmost care to preserve both renewable and nonrenewable energy sources. If we fail to do so, the future generation will face severe problems in all dimensions. Major reasons behind this imbalance are improper use of these energy resources and population Explosion. Green marketing concept in fact is an effort to tackle above said situation. Environmental, Eco-logical and green marketing are similar terms used in literature. Green marketing refers to selling product or rendering services based on environmental benefit. In the last decade, consumers have become more enlightened on environmental issues. Hence Green marketing is growing rapidly and consumers are willing to pay a lot for green product. WHAT IS GREEN MARKETING? According to the American Marketing Association (AMA), Green marketing is the marketing of products that are presumed to be environmentally safe. Thus it incorporates a broad range of activities, including product modification, changes to the production process, packaging changes, as well as modifying advertising. Yet defining green marketing is not a simple task where several meanings intersect and contradict each other; other similar terms used are Environmental Marketing and Ecological Marketing. Green marketing can also be defined as, "All activities designed to generate and facilitate any exchange intended to satisfy human needs or wants such that satisfying of these needs and wants occur with minimal detrimental input on the national environment."Green marketing involves developing and promoting products and services that satisfy customers want and need for Quality, Performance, Affordable Pricing and Convenience without having a detrimental input on the environment. EVOLUTION OF GREEN MARKETING: The green marketing has evolved over a period of time. The evolution of green marketing has three phases. First phase was termed as "Ecological" green marketing, and during this period all marketing activities were concerned to help environment problems and provide remedies for environmental problems. Second phase was "Environmental" green marketing and the focus shifted on clean technology that involved designing of innovative new products, which take care of pollution and waste issues. Third phase was "Sustainable" green marketing. It came into prominence in the late 1990s and early 2000. Why Green Marketing? As resources are limited and human wants are unlimited, it is important for the marketers to utilize the resources efficiently without waste as well as to achieve the organization's objective. So green marketing is inevitable. There is growing interest among the consumers all over the world regarding protection of environment. Worldwide evidence indicates people are concerned about the environment and are changing their behavior. As a result of this, green marketing has emerged which speaks for growing market for sustainable and socially responsible products and services. THE CONCEPT OF GREEN WITH RESPECT TO INDIAN CONTEXT: As far as Indian culture is concerned, Indians consider Land, water, Air, Fire, Nature and the Environment ( Prithvi, Jal, Vayu, Agni & Prakriti) as the protectors of human beings. Indians take elements of nature as sacred for them. However, the systematic study on the reasons for ecological imbalance, loss of ozone layer started only after the mass production and consumption of goods and services started across the globe. Indian literate and urban consumer is getting more aware about the merits of Green products. But it is still a new concept for the masses. The consumer needs to be educated and made aware of the environmental threats. The new green movements need to reach the masses and that will take a lot of time and effort. By India's ayurvedic heritage, Indian consumers do appreciate the importance of using natural and herbal beauty products. Indian consumer is exposed to healthy living lifestyles such as yoga and natural food consumption.
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In those aspects the consumer is already aware and will be inclined to accept the green products. SIGNIFICANCE OF THE PROBLEM UNDER STUDY: In last few decades, population has been increased exponentially across the globe. Due to this increase in population, mass production is inevitable. The manufacturing concerns have to meet the global demands with limited and exhaustible resources. Therefore, a strategic way of satisfying the consumers need is the crucial issue today. Awareness about environment related goods is constantly increasing across the globe. Thus, focusing on green marketing has its relevance in the present context. OBJECTIVE OF THE STUDY: The following are the objectives of the present study: 1) To study the basic concept of Green Marketing across the world in general and with reference to Indian context. 2) To identify the problems in implementation of the green marketing concept in marketing activities. 3) To examine Green concept in the marketing mix components. 4) To suggest procedures to increase the practices of green marketing. RESEARCH METHODOLOGY: The study is basically based on secondary data and review of available literature. Based on the available literature and research material, the present paper makes an assessment of the importance of green marketing, the associated cost and benefits of green marketing. Through this paper, the researcher also intended to draw the attention of traditional customers towards green marketing. The application of green marketing through 4P's has been keenly discussed with the help of examples. The suggestions with regards to implementation of green marketing concepts in production and distribution of goods services in the Indian context are provided in the concluding section. LITERATURE REVIEW: Relevant and recent literature have been studied and analyzed for the development in green marketing concept. Walker et al. (1998) observed the reduction of waste in input and output of production and its usefulness to the society. Azhagaiah et al. (2006) observed the impact of green marketing and environmental protection. In their study they found that environment issue has significant impact on modern society. The environment problems are the result of mass consumption and production across the globe. The buy-use-dispose cycle for goods and services directly affect the environment. Murugesan (2008) observed in his study Green-Trust and distrust that Green Marketing is a combination of Social Marketing Concept and the Ecological Marketing Concept. The concept of green can be used in a broad range of activities-such as product modification, changes in the production process, packaging changes and also in advertising strategies and promotional methods. Thakur et al. (2009) investigated customer awareness with reference to green marketing of automobiles. An empirical study was conducted at Indore, Madhya pradesh. The study reveals that significant awareness about green marketing was encouraged among customers. Mishra et al (2010) traced that three segments of green consumers and explored the challenges and opportunities that business have to deal with in green marketing. The study highlighted the challenges of green marketing like involvement of green myopia, educating the customers, price factors etc. BASIC PARAMETERS OF GREEN MARKETING: Many global players in diverse businesses are now successfully implementing green marketing practices. Just as we have 4P's called product, price, place and promotion in marketing, we have these 4P's in green marketing too, but they are a different. They are buttressed by three additions P's namely people, planet and profits. Green marketer can attract customers on the basis of performance, money savings, health and convenience, so as to target a wide range of green consumers. The 3R's are the nerve of this concept which is
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shown in the following figure.
Companies which embark on green marketing should adopt the following principles in their path towards in greenness: Adopt virgin green technology/process so as to reduce environmental impact. Establish a management and control system that will lead to the adherence of stringent environmental safety norms. Using more environment-friendly raw materials at the production stage itself. Explore possibilities of recycling of the used products, so that it can be used to offer similar other benefits with less wastage. PROBLEMS WITH GREEN MARKETING: While company adopting green marketing, at the same time there are a number of problems that must overcome. One of the main problems is that firms using green marketing must ensure that their activities are not misleading to consumers or industry and do not breach any of the regulations or laws dealing with environmental marketing. A problem of the firms face is that consumer's perceptions are sometimes not correct. When firms attempt to become socially responsible, they may face the risk that the environmentally responsible action of today will be found to be harmful in the future. Following are the challenges before the green marketing. Green products require renewable and recyclable material, which is costly. It requires a technology, which requires huge investment. Majority of the people are not aware of green products and their uses. Majority of consumers are not willing to pay a premium price for green products. GREEN MARKETING AND INDIAN CORPORATE SECTOR: Many companies in India are beginning to realize that they are members of the wider community and therefore must behave in an environmentally responsible fashion. This translates into firms that believe they must achieve environmental objectives as well as profit related objectives. This results in environmental issues being integrated in to the firm's corporate culture. There are basically five reasons for which a company should go for the adoption of green marketing. i. Organizations perceive environmental marketing to an opportunity that can be used to achieve its Objectives. ii. Companies believe that they have a moral obligation to be more socially responsible. iii. Governmental bodies are forcing firms to become more responsible. iv. Competitors environmental activities pressure firms to change their environmental marketing activities. v. Cost factors associated with waste disposal forces firms to modify their behavior. TOP GREEN INDIAN COMPANIES: Judging by the number of large, small and mid-size Indian companies that are setting the trend with green initiatives, India is serious about building environmental sustainability into its business practices. The following companies who made it to the list of top ten green Indian companies prove the statistics right. SUZLON ENERGY: The world's fourth largest wind turbine maker is among the greenest and best companies in India. They are saving coal, uranium with production of electricity by using huge number of wind-mills. They also
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attempting for clean and green energy. The concept of a Inspiring place to work is deep rooted in the mission of 'powering a greener tomorrow, today' begins by translating these very words into action by creating an environment that is powered by renewable energy. Suzlon One Earth has unique features that make it stand for the very purpose it was built. ITC LIMITED: ITC has strengthened their commitment to green technologies by introducing 'Ozone-treated elemental chlorine free' bleaching technology for the first time in India. It is also manufacturing eco-friendly business use paper 'papercraf's'. ITC also providing an opportunity to consumers to be a partner in efforts to mitigate the adverse impact of climate change and create positive environmental footprints. It is also selling 'Classmate' notebooks which are also environment friendly. TATA METALIKS LIMITED (TML): Every day is Environment Day at TML. It is one of the top green companies in India. A practical example that made every employee sit up and take notice is the company's policy to discourage working on Saturdays at the corporate office. Employees follow the practice of switching off Lights during the day, because the entire office depending on sunlight. TAMIL NADU NEWSPRINT AND PAPERS LTD.(TNPL): TNPL's vision is to be the market leader in manufacture of world-class eco-friendly paper adopting innovative technologies for sustainable development. TNPL was awarded the green business leadership award in pulp and paper sectors in 2009-10. TNPL makes paper primarily from Bagasse, namely sugarcane waste using as little wood as Possible. The Company uses renewable raw materials with minimum impact on the environment. TNPL's Chemical Recovery Boiler No: 3 have been awarded as Most Innovative Environmental Project in the Confederation of Indian Industry (CII) - Environmental Best Practices Award 2012 competition held in CIISohrabji Godrej Green Business Centre, Hyderabad on 9th & 10th February, 2012 at Hyderabad. WIPRO TECHNOLOGIES: The list of top green Indian companies is never get completed without Wipro which climbed to the top five brand league in Green peace's 'Guide to Greener Electronics' ranking. 'Green Peace' is a global consortium dedicated to achieving advancement energy efficiency in data centers and business computing ecosystems. Wipro has held quickly to its commitment towards energy efficiency and had launched energy star compliant products in the global market. HCL INFO-SYSTEMS: HCL also had worked for a cleaner air, fresher water and fertile soil. HCL Info-systems have always tried to take green-concepts to the masses. HCL Info-systems are up with an initiative drive to train the customers and general public about the threats of e-waste. E-waste, is nothing but electronics-no-longer-usable. All of us might have a bunch of non-working CDs, earphones, mobile-phones, DVDs, cassette-players, power guzzling CRT monitors in store-room, and what not! Now is the time to dispose-off all this e-waste lying at your house, or office-cabin! All these things are properly managed by HCL. OIL AND NATURAL GAS COMPANY (ONGC): India's one of the largest oil producers, ONGC, is all set to lead the green Indian company with energy efficient, green crematoriums that will soon replace the traditional wooden pyre across the country. ONGC's Mokshada Green Cremation initiative is saving 60 to 70% of wood and a fourth of the burning time per cremation. INDUSIND BANK: Green banking has been catching up as among the top Indian green initiatives ever since IndusInd Bank had opened the first solar-powered ATM in India and pioneered an eco-savvy change in the Indian banking sector.
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The IndusInd bank is planning for more such initiatives in addressing the challenges of climate change. IDEA CELLULAR: IDEA, paints India green with its national 'Use Mobile, Save Paper' and save the trees campaign. The company had organized Green Pledge campaigns various Indian metro cities where many came forward and pledged to save paper and trees and to protect the environment. IDEA has also set up some bus shelters with potted plants and tendril climbers to convey the green message in Mumbai. HERO HONDA MOTORS (NOW HERO MOTO CORP): Hero Moto Corp is one of the largest two-wheeler manufacturers in India and an equally responsible top green firm in India. The company's philosophy of continuous innovation in green products and solutions has played a key role in striking the right balance between business, mankind and nature. GLOBAL SCENARIO: PHILIPS LIGHT'S "MARATHON" Philips Lighting's first shot at marketing a standalone compact fluorescent light (CFL) bulb was Earth Light, at $15 each versus 75 cents for incandescent bulbs. The product had difficulty climbing out of its deep green niche. The company re-launched the product as "Marathon, "underscoring its new "super long life" positioning and promise of saving $26 in energy costs over its five-year lifetime. Finally, with the U.S. EPA's Energy Star label to add credibility as well as new sensitivity to rising utility costs and electricity shortages, sales climbed 12 percent in an otherwise flat market. CAR SHARING SERVICES: Car-sharing services address the longer-term solutions to consumer needs for better fuel savings and fewer traffic tie-ups and parking nightmares, to complement the environmental benefit of more open space and reduction of greenhouse gases. They may be thought of as a "time-sharing" system for cars. Consumers who drive less than 7,500 miles a year and do not need a car for work can save thousands of dollars annually by joining one of the many services springing up, including Zip Car (East Coast), I-GO Car (Chicago), Flex Car (Washington State), and Hour Car (Twin Cities). MARKETING MIX: 4 S's of green marketing mix are: 1) Satisfaction of customer needs. 2) Safety of product and production for consumers, workers, society and the environment. 3) Social acceptability of a product, its production and the other activities of the company. 4) Sustainability of the product, their production and other activities of the company. ANALYSIS OF ECO-ISSUES IN GREEN MARKETING: Green marketing is a response to the demand for ecologically sound products like recycled products, biodegradable products, energy-efficient systems or products. Marketing management represents an important functional area of business management efforts for the flow of goods and services from the producer to the consumers. No area in the process of marketing is free from the adoption of the Green" concept. We can claim environmental recognition in all areas of marketing. Let us focus on the major areas that require an environmental touch-up. Since the marketing mix is a profitable formula for any businessman, naturally, the inputs or sub mixes need to be given an environmental status. THE CONCEPT OF PRODUCT MIX IN GREEN MARKETING: P-PRODUCT: Traditional Concept: Raw material is procured to transform it into a product. The waste in the manufacturing process is disposed off.
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New Concept ln Green Marketing: Eco-friendly, Waste is minimized, Effective use of non-renewable energy sources. Waste of one process should serve as the raw material need of another. THE CONCEPT OF PRICE MIX LN GREEN MARKETING: P-PRICE: Traditional Concept: Expecting profit at all levels at the cost of the environment. New Concept ln Green marketing: Price is spread throughout the Life Cycle of the product. Environmental safety. Health of the employees and the community is protected. THE CONCEPT OF PLACE MIX IN GREEN MARKETING: P-PLACE: Traditional Concept: Concentration of production plants New Concept ln Green marketing: Decentralization of manufacturing plants to avoid unnecessary transportation cost of raw material. Skilled HR. Availability of green products nearer to the residential places. THE CONCEPT OF PROMOTION MIX IN GREEN MARKETING: P-PROMOTION: Traditional Concept: Promotional strategies are rather more important to hold the customers than educating them on green marketing through promotional methods. New Concept ln Green marketing: Environmental responsibility and commitment should be a part of the corporate culture and their mission statement. SUGGESTIONS: 1. A firm can keep a vision to achieve carbon neutrality. 2. Try to evolve control system to maintain minimum detriment to the environment during production and marketing. 3. Misleading on name of green marketing to the costumers should be avoided. Instead of making plans to reprocess/recycle the waste, make strategies to reduce the wastes in the production stage itself. 4. Consumers are to be well educated about green marketing and the importance of protecting the planet from polluted goods and services should be emphasized. 5. Consumer forums are to be strengthened from the grass root level. The consumers are to be educated through awareness programs like seminars, symposiums etc. 6. Environmental awareness programs for the youth are needed because they are the major consumers of FMCGs. 7. Least paper consumption: All the organization should have paperless offices and least use of papers. To overcome the problem; organization should use latest concept and technologies. 8. All educational institutions should introduce a subject on "environmental Studies" in the academic curriculum. CONCLUSION: In todays world, green marketing has become significant element for every organization to survive in the seamless market. Illiteracy or lack of knowledge of consumers about green marketing needs to overcome by education in this regards. Green marketing is a tool for protecting the environment for the future generation. It has a positive impact on environmental safety. Because of the growing concern of environmental protection, there is an emergence
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of a new market which is the green market. For companies to survive in this market, they need to go green in all aspect of their business. Companies that develop new and improved products and services with environment inputs in mind give themselves access to new markets, increase their profit sustainability, and enjoy a competitive advantage over the companies which are not concerned for the environment. Consumers want to identify themselves with companies that are green compliant and are willing to pay a premium for a greener life style. As such, green marketing is not just an environmental protection tool but also, a marketing strategy. . REFERENCES: [1] Azhagaiah R. and Ilangovan A. (2006). Green Marketing and Environmental Protection." Indian Journal of Marketing,vol.XXXVI, No'1, pp. 19 -21. [2] Chopra, S.Lakshmi, (April 2007) Turning Over a New Leaf, Indian Management, Vol. 64. [3] Shelton, R.D. (1994), Hitting the green wall: Why Corporate Programs get stalled, Corporate Environmental Strategy, Vol. 2, No. 2. [4] Mishra pavan & Mishra payal (2011), Green Marketing in lndia: Emerging opportunities & challenges." Journal of Engineering, science & Management Education, Vol 3, pp. 9 -14. [5] Murugesan J. (2008). "Green-TrustandDistrust.", Indian Journal of Marketing, Vol. XXXVIII, No.9, pp 22-26. [6] Kilbour, Wiliam E.(1998), Green Marketing: A Theoretical Perspectives, Journal of Marketing management. [7] Thakar Girish and Joshi Nitin M. (2009). "An Investigation of CustomerAwareness With Reference To Green Marketing OfAutomobiles: An Empirical Study Conducted At lndore, Madhya Pradesh. Indian Joumal of Marketing, Vol.XXXIX, No.9, pp.25-31. [8] Walker R.H. & HansonD.J. (1998): Green Marketing & Green Places: A Taxonomy For The Destination Marketer. Journal of Marketing Management, Vol.14, No.6, pp. 623 -639. [9] www.wikipedia.com [10] www.greenmarketing.net [11] www.epa.gld.gov.au [12] www.tnpl.com ----
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GREEN ADVERTISING A CORPORATE COMMUNICATION APPROACH TOWARDS SUSTAINABLE FUTURE
Dr. Meera Mathur, Associate Professor, FMS Udaipur, India.
Jyoti Jain, Research scholar, FMS Udaipur, India.
ABSTRACT Sustainability is one of the most important concepts of modern business thinking. With the increasing global demand Sustainability deals with aspects such as increased consumption, population pressure, global warming, climate transform, ozone reduction, and loss of habitats and species diversity. Now days the corporate are trying to play smart role. All the companies are adopting green strategies to communicate their green effort towards the planet and thus saving their future in the rush of green and saving their cost too. Green advertising now has been the need of the hour to attract the environment conscious consumers and sustaining the companys future also. The paper studies the link between green advertising and the sustainability efforts of the corporate towards sustainable future. Keywords: Green advertising, Sustainability, Green Approach
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Applying sustainability to the marketing captures the core of sustainable marketing. Sustainable Marketing aligns internal organizational processes and organizes resources that create value for stakeholders (owners, shareholders, employees, value chain partners) and through which the external natural environment and social environment are enriched by the activities of the firm(Arnould & Press, no year). Now days companies are adopting the sustainable business practices for the number of reasons. To point out few, like consumer pressures, competitors pressure, government regulation and the change in the technologies. SUSTAINABILITY- A TRIPLE BOTTOM LINE APPROACH: John Elkington has coined a Triple Bottom Line approach of Sustainability taking a holistic approach by incorporating the three dimensions of environment, society and economy. According to Elkington, the Triple Bottom Line also focus on the environmental and social value they create rather then just focusing on the economic value organizations create (Elkington, 1997). By incorporating the Triple Bottom Line, sustainability looks at economic aspects without compromising environmental and societal issues. Sustainability is viewed as a process in which organizations strive for continuous improvement towards the three dimensions of the Triple Bottom Line. The concurrence of the three dimensions of the Triple Bottom Line creates sustainability. REVIEW OF LITERATURE: Green marketing is powerfully connected with sustainability. Green- marketing and advertising in long run helps marketer to achieve sustainability through creating and generating sustainable outputs whilst incessantly fulfilling customers and stakeholders needs (Charter et al., 2002). A small research in the area of marketing focuses on sustainability linked t with supply chain actions. In this research, the concept of sustainability was used to preserve and deepen the collaborations between participants of the supply chain (Weber, 2001; Sheu & Hu, 2008; Sharma et al., 2010). As per Simula et al. (2009) there are four different approaches to a B2B and B2C organization combining sustainability and green marketing with their products. GREEN COMMUNICATION STRATEGIES: Green marketing initiative encompasses the green procurement green product development and green promotion. Green advertisement fall into last initiative of green marketing. Through Green advertising the organization can express a positive relationship between a product or service and the environment, it can present a corporate image of environmental responsibility, or it can promote a green lifestyle. With the advent of green marketing in 1975 till now it has gone through several stages. With a higher consumer awareness of environmental issues, the market or environmental safe product started growing so firms obviously adopted green strategies (Ginsberg and Bloom, 2004) and start making green claims in their advertising campaigns with the desire of gaining an edge over their competitors. WHY GREEN MARKETING BENEFITS B2C: Given the special role of the B2C environment, green communication strategies can provide strong benefits. Now days customers increasingly seek to buy environmentally-friendly products and services (Pujari et al., 2004; Drumwright, 1994; Polonsky, Broks, & Henry, 1998; Min & Galle, 1997). They also emphasize environmentally responsible practices in their transactions with manufacturers (Sharma et al., 2010). Thus, environmental concern must be acknowledged as an important buying criterion for any customers. This needs to be considered when developing successful marketing strategies for the B2C environment (Drumwright, 1994). METHODOLOGY: Semi-structured in-depth interviews were used to interview marketing managers of manufacturers and business buyers. Participants were marketing managers of selected firms. Participants were selected on the basis of purposive sampling. Ten in-depth interviews were conducted using four marketing managers along
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with six business buyers. With the help of in-depth interviews participants communicated their understanding of those green marketing strategies (Sampson, 1996). DATA ANALYSIS AND FINDINGS: The data so collected through the help of the interview was then analyzed and with the other secondary data available as the form of research papers and a link was find out between the green marketing, green advertising and the sustainability of the firm. The responded categorized organizations into two categoriesGreen washers and the sustainability superiority, these were the firms who were either truly green or just showing their as green. LINK BETWEEN SUSTAINABILITY AND GREEN ADVERTISING: The concepts of sustainability and green communication with the focus on the B2C environment need a separate treatment. It is affirmed that the concepts of green communication and sustainability must be clearly eminent from each other. As a result, B2C organizations that practice sustainability do not necessarily adopt green communication and vice versa. But a noteworthy link exists between both concepts. Sustainability obligates companies to incorporate the three dimensions of sustainability (economic, environmental and societal) into their business activities (World Commission on Environment and Development, 1987). Green marketing & Green communication are strongly linked to sustainability as it helps to achieve those dimensions of sustainability through generating, delivering sustainable solutions and communicating those to the prospect customers, whilst continuously satisfying customers and stakeholders needs (Charter et al., 2002). Thus, B2C organizations can achieve sustainability whilst satisfying business buyers and stakeholders needs by combining both concepts effectively with each other. In order to enhance the explanations made, Figure 2.2 can be applied. Figure 1: Link between Sustainability and Green advertising
*A- firms practicing both
Green advertising firms
*A
Sustainability Firms
Firms practicing neither
The figure 1 shows the two concepts of sustainability and green marketing into their business without practicing green marketing. There are organization who really practices green but the they does not know how to promote their actions towards their stakeholders. The interacting area of circles in the centre shows the organizations that come together for green marketing and sustainability. These organizations incorporate sustainability whilst using green marketing strategies to promote their sustainable activities while satisfying their customers and stakeholders needs (Charter et al.). The organizations that are lying outside of the circles do not adopt such green practices nor think about sustainable future.
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On the basis of the figure four different types of organizations can be marked: Organizations that only practice green marketing, Organizations that only practice sustainability, Organizations that practice neither of the concepts and Organizations that practice both concepts All four types of organization can be categorized in two following headindsGREEN WASHERS: It is stated that organization that promotes as their product as green washed products are always on low level of greenness. In spite of that, the buyer sees the product as highly green. The result of this research enlarges on the definition of Simula et al. (2009). The research adds on that green washers are judged green in all aspects of waste, resources and energy efficiencies, product as well as material and packaging. Advertisement these organization about their product is also never true as green. SUSTAINABLE SUPERIORITY: Simula et al. (2009) suggested that the sustainable superiority is characterized by a highly professed greenness. Stakeholders are strongly considered within the organizations activities while resource and energy efficiency is achieved. Porter and Van der Linde (1995) said that social and ecological act can lead to good performance in the marketplace. Competitive advantage can be gained through differentiation of the product with its sustainable performance or through cost savings which result from high resource and energy efficiency (Porter & Van der Linde, 1995; see also for an example Hedstrom, Shopley & LeDuc, 2000). CONCLUSION: Organization sustainability and green approaches are often connected to marketer in specific industries. The organizations face huge pressure from government and stakeholders due to their strong impacts on the environment, society and economy. Organizations can build up competitive business advantages by practicing green marketing while achieving sustainability (Iles, 2006). Organizations can create competitive advantage in two ways by working green marketing whilst covering all dimensions of sustainability. Firstly, green marketing enables organizations to please business buyers need which refers to the societal breadth of sustainability as it is a consideration of stakeholders. Green marketing also helps to comply with governmental regulations which relates to the environmental dimension of sustainability as these regulations aim to preserve the environment (Iles, 2006). Secondly, green marketing allows organizations to promote their strategies as an economic advantage to their business customers. That is because the creation of sustainability can save resources and energy for the customers. REFERENCES: [1] Arnould, E. J. & Press, M. (no year) Marketing Organizations and Sustainable Marketing, In G. Basile, J. Hershauer and S. G. McNall (Eds.), [2] Sustainable Business Practices: Challenges, Opportunities, and Practices, Praeger Press. Arnold, S. J., & Fischer, E. (1994) Hermeneutics and Consumer Research Journal of Consumer Research, 21(1), 55-70. [3] Avlonitis, G. J., & Gounaris, S. P. (1997) Marketing Orientation and Company Performance: Industrial vs. Consumer Goods Companies. Industrial Marketing Management,26(5), 385-402. [4] Balderjahn, I. (1988). Personality variables and environmental attitudes as predictors of ecologically responsible consumption patterns. Journal of Business Research, 17(1), 51-56. [5] Balderjahn, I. (2004). Nachhaltigkeits -Marketing Germany, Stuttgart: Lucius & Lucius. [6] Banerjee, S. B. (1999). Corporate Environmentalism and the Greening of Strategic [7] Marketing: Implications for Marketing Theory and Practice. In M. Charter & M. J. Polonsky (Eds.),Greener Marketing; a global perspective on greening marketing practice (pp. 255-274). Sheffield, UK: Greenleaf Publishing. [8] Barrett, L. (2007). False green ad complaints rise. Marketing, 1-1.
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[15] [16] [17] [18] [19]
Belz, F. M. (2001). Integratives ko-Marketing. Germany, Wiesbaden: DeutscherUniversity Berg, B. L. (2009). Qualitative research methods for the social sciences. Boston: Allyn Esterberg, K. (2002). Qualitative methods in social research. Boston: McGraw-Hill Higher Education. Hudson, L., & Ozanne, J. (1988). Alternative ways of seeking knowledge in consumer research. Journal of Consumer Research, 14(4), 508-521. Iles, A. (2006). Shifting to green chemistry: The need for innovations in Sustainability Marketing. Business Strategy and the Environment, 17(8), 524-530. Iyer, E., Barnerjee, B., & Gulas, C. (1994). An expose on green television adds. In C. T. Allen & D. R. John (Eds.), Advances in Consumer Research Volume 21 (pp.292-298), Provo, UT: Association for Consumer Research. Jain, S. K. (2004). Green Marketing: An Attitudinal and Behavioral Analysis of Indian Consumers. Global Business Review, 5(2), 187-205. Johri, L. M., & Sahasakmontri, K. (1998). Green marketing of cosmetics and toiletries In Thailand. Journal of Consumer Marketing, 15(3), 67-78. Peattie, K. (1995). Environmental marketing management: meeting the green challenge. London, UK: Pitman Publishing. Peattie, K. (1999). Rethinking Marketing: Shifting to a greener Paradigm.In M. Charter & M. J. Polonsky (Eds.), Greener Marketing; a global perspective on greening marketing practice (pp. 57-70) Sheffield, UK: Greenleaf Publishing. ----
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INFLATION NATURE AND CAUSES OF FOOD INFLATION
Prof. Hamdani Rizwana, G.D.A.B. Arts & Commerce College, Malegaon City, India
ABSTRACT Inflation is a rise in the general level of prices of goods and services in an economy over a period of time. When the general price level rises, each unit of currency buys fewer goods and services. Consequently, inflation also reflects an erosion in the purchasing power of money a loss of real value in the internal medium of exchange and unit of account within the economy. The current study is an attempt to analuse the nature and causes of food inflation in India. Keywords: Inflation, Economics, Food, India.
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INTRODUCTION:
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Everyone has inflation on their tips but it is worth looking at what exactly inflation is, and how it arises. Inflation indicates the rise in the price of a basket of commodities on a point to point basis. It basically suggests an increase in the cost of living over a period of time. Inflation is measured by monitoring changes in price indices. There are broadly two kinds of indices, a Wholesale Price Index (WPI) and Consumer Price Index (CPI). The former measures changes in wholesale prices, which may be more meaningful from the producers point of view, while the latter measures changes in retail prices, which are obviously more relevant to the consumer, Most countries use CPI while India has a WPI. Milton Friedman once said Substantial inflation is always and everywhere a monetary phenomenon, meaning that hyper inflation is caused because of too much money in the system and is usually the result of the central bank printing too much money to finance government operation. Therefore, one needs to ask what causes the milder type of inflation, such as what India is experiencing. Two different types of inflation are generally associated with this. They are; 1. Demand pull- inflation: This is basically when aggregate demand exceeds aggregate supply. 2. Cost-push-Inflation: This caused when there is a supply shock. FACTORS AFFECTING ON FOOD INFLATION: The acceleration in food inflation have been caused by several factors like shock in supply, trade, global prices, food management, speculative activities and demand. Food inflation was close to 20% in Jan 2010. Annual average food inflation during the period 2006 to 2009 was 80% higher than inflation in non food commodities. Within the food group, the highest inflation is observed in the case of pulses and the lowest in the case of pulses. The reasons are discussed in the following sections. DOMESTIC FOOD PRODUCTION: Food inflation in India started accelerating in the beginning of 2008, though food production during 2006-07 and 2007-08 had reached record levels and registered more than 5% growth in these years. The growth rate was more that double the demand for foods. However, a major chunk did not enter in domestic supply. As global prices had reached a very high level in 2007 and 2008, exports turned out to be more lucrative and the share of food exports increased more than 10% during the same period. This resulted in a transmission of some of the increase in global prices to the domestic market. Thus, the main cause of an increase in food prices in 2008 was the influence of exports, led by high global prices. In addition, in 2008, it was estimated that India loses NIR 58000 crores worth of food items due to lack of post harvesting infrastructure such as cold chains, transportation and storage facilities. Global food prices cooled down considerably during 2009. In contrast, domestic food prices followed a rapid increase throughout 2009. The main production (1.6%) fell short of demand. As more than half of food production in a financial year is consumed in the next year, the impact of low growth in food production during 2008-09 was felt during 2009. This was followed by deficiency of the 2009 south-west monsoon (i.e. draught and flood) which caused loss of kharif output for 2009-10. Government policies are mostly short-term and ad hoc. Over the years, there has been a decline in public investment in agriculture that is only 0.5% of the GDP. Due to deceleration of investment both by public and private sectors, in rural and agricultural infrastructure only 40% of the countrys total cropped area is irrigated. While the countries with far lower areas of arable land like the US (18%), China (14%) and Canada (4%) seem to manage pretty well because of high productivity/yield. The Government has been talking about inclusive growth and stress on rural India. These facts do not point any meaningful efforts to help farmers in a country where over 10,000 farmers have committed suicide over the last decade. Due to dual (husband & wife) income system, people started buying foods they could not earlier afford and discretionary expenditure on perishables is going up. According to Mr. Vyas, Member of the Economic Advisory Council As income increase, there is progression to higher value up crops like fruits and vegetables. Food consumption amongst Indians is on the rise, in absolute terms. However, the share of cereals fell from 41% of consumer expenditure to 18% in rural India and from 23% to 10% in Urban India.
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TRADE AND GLOBAL PRICES: Interestingly, the prices of edible oil turned out to be lower during the 2009 despite a fall in oilseed output by 5% deports, which meet around 40% of domestic demand for edible oil are the major factor holding edible oil prices at a low level. Why have imports not taken place in cooling domestic prices of other food commodities like wheat, rice, sugar, pulse and eggs/meat/fish? The reason is in case of edible oil, India is a regular importer and many public and private agencies plan for imports well in advance. The situation is different for other commodities. There are no private import houses for importing such commodities, the onus falls on public agencies. There is no institutional mechanism to know in advance about domestic and global supply and prices, the import option is put quite late when the global market factored Indias need for import by the end of the year world sugar price had doubled. In commodities like pulses, the global market is very thin. FOOD MANAGEMENT: In case of food management, there is a gap between desired and actual action taken in the sector. For instance in 2008 India exported sugar worth 980 million and imported sugar worth 306 million. This implies that with correct assessment of situation, sugar exported at low price could have been kept in stock to meet the deficit in production. The annual production of 180 million tonnes of fruits and vegetables that need much larger cold storage facilities, but India has facilities for only 23.6 million tonnes and the bulk of this (about 80%) is devoted to potatoes resulting: Wastage, supply shortage and higher price. Food stocks worth Rs 60,000 crore are lost every year due to lack of storage facilities. Worse, another Rs 2.6 crore (half a million USD) is spent on disposing of rotten grain. According to various reports on climate change, the country is expected to face more frequent floods and draughts in the future. This will increase supply stocks. Except for a buffer stock of rice and wheat by public agencies and sugar stock by various agencies there is no arrangement in the country to carry large inventories of other food items. It (the situation) allows big domestic players or multinationals in the food market would result exploitation of producers and consumers. The FCI remained under question on grounds of efficiency and for a putting heavy burden on the state exchequer. LONG TERM INFLATION: Experts believe that if just the entire arable land in India were to be irrigated, agricultural productivity could be doubled. Water management is the most crucial element in improving productivity. Moreover, lack of certified seeds falling soil health the lack of effective extension services such as diffusion of innovation from the lab to farm and on demand affordable agricultural advisory services fragmentation of land and the small size holdings (average size of holdings is 1.3 hectare and this is further declining) do not allow economies of scale. Productivity of fruits increased from 10 MT/hectare to 11.2 MT/hectare between 1991/92 and 2008/09. Vegetables fared little better i.e from 10.5 MT to 16.2 MT/hectare. Long term inflation depends upon the pace of growth in domestic production in relation to the growth in demand. The entire food sector followed a continuous fall after 1999-2000. The most recent decade ending with 2007-09 shows trend growth rate of 1.9% for the food output of the crop sector. These growth rates are not even 2/3 of the growth experienced in the period 1970-71 to 2000-2001. On the demand side Indias population is rising annually by 1.4% and per capital demand is showing robust growth due to improvements in per capita income. Average cost of production of major crops is showing an increase even in regions with low productivity leads to increase in food prices. The per hectare agricultural yield in India is half that of China. The increase in the price of fuel is easy to understand.
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Our technology led growth can help in checking high food inflation in the long-run. Table: Wholesale Price Index - Annual Average (Base Price 2004-05) Year 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 AC 100.0 104.5 111.4 116.6 126.0 130.8 143.3 PA 100.0 104.3 114.3 123.9 137.5 154.9 182.4 FA 100.0 105.4 115.5 123.6 134.8 155.4 179.6 192.7 NF 100.0 96.7 102.3 114.4 129.2 136.2 166.6 182.7 F&P 100.0 113.6 120.9 121.0 135.0 132.1 148.3 168.5 MP 100.0 102.4 108.2 113.4 120.4 123.1 130.1 139.5
156.1 200.3 2011-12 AC: All commodities PA : Primary articles FA: Food articles NF : Non-food articles F&P: Fuel and Power MP : Manufactured products. FA and NF are part of PA Also see Notes on Tables. Source: office of CONCLUSION:
1. During 2009, a sharp increase in food price was due to supply stocks. For that we need to have food management strategy, e.g. maintenance of buffer stock. 2. We need to invest heavily in expanding storage capacity for various types of food in both public as well as private sector. 3. With correct assessment of the situation export is to be carried out. 4. Hoarders and speculators should be checked through strict food market regulation. 5. To set up institutional mechanism for an early warning relating to demand, supply and price situation. 6. Efficiency of FCO should be increased. Timely release of stocks held by FCI could reduce price substantially. 7. To develop and disseminate improved technology for raising food production. 8. Cheap and quick inter-state transfer of commodities. 9. Irrigation capacity should be increased. 10. Easy access to loan and repayment of soften terms. REFRENCES: [1] [2] [3] [4] Various issues of Economic and Political Weekly , Yojana August 2006 Sources: Ministry of Consumer Affairs, Government of India Outlook Business, May 28, 2011 global-rates.com ZENITH International Journal of Multidisciplinary Research Vol.2 Issue 4, April 2012, ISSN 2231 5780. ----
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WOMENS EMPOWERMENT PROGRAMMES: A REVIEW OF LITERATURE
Miss Chandan Medatwal, Research Scholar, University of Kota, Lecturer (SFS), Govt. Girls JDB College, Kota, Rajasthan, India
ABSTRACT This study focuses on the empowerment of women through various programmes and schemes in the region, country and across the world sponsored and supported by Government or non Government Organizations. This article consists of review of literature on womens empowerment through various programmes. Womens empowerment is an age - old concept spotlighting improving the economic status of women and thorough participation for the development of economy. Existing historical data and status of various programmes provides better scenario for stepping in upward direction. Here the study emphasizes from the concept of women empowerment to the empirical evidences taken from various analysis, past surveys, Government Reports and literature available on it. Main aim of reviewing womens empowerment practices bring together the aspect of viewed and neglected parts of empowering women which fulfils the need of implementation of schemes, reach at them in a proper manner after covering the lacking parts. Keywords: Empowerment, Women, Programmes, Conceptual, Empirical
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INTRODUCTION:
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Empowerment of women is not only limited till the term empowerment applies to the women or special group of women in particular area but also it means to develop them in all dimensions. Here the main concern towards development of women. Study starts not only from that there is strong need for womens empowerment today but why they need empowerment first. Answer of this could be sometime conflicting if there is one suppressed group, really need empowerment whether this could be men or women. A framework for the study based on the ideas and concepts gleaned from existing literature helps a researcher to plan and manage research in a comprehensive manner. Existing literature also helps to know the previous research work done in particular expanse and it acts like a torch as well as backbone for new studies for new researchers. All the researches are exploratory in nature as these carried out in ever-changing environment. Here an attempt is made to put some of the closely related literature review under two major heads. CONCEPTUAL FRAMEWORK FOR RESEARCH: In Conceptual framework for research, problem statement can be casted within the context of conceptual or theoretical framework. A conceptual framework is described as a set of broad ideas and principles taken from relevant fields of enquiry and used to structure a subsequent presentation (Reichel & Ramey, 1987). As with all investigation in the social world, the framework itself forms part of the agenda for negotiation to be scrutinized and tested, reviewed and reformed as a result of investigation (Guba & Lincoln, 1989)1. Although many of the researcher view the Conceptual and Theoritical framework as a synonymous and some cast it into research with slight difference. Most researches report the problem statement within the context of a conceptual or theoretical framework. A description of this framework contributes to a research report in at least two ways because it (1) identifies research variables, and (2) clarifies relationships among the variables. Linked to the problem statement, the conceptual framework sets the stage for presentation of the specific research question that drives the investigation being reported. For example, the conceptual framework and research question would be different for a formative evaluation study than for a summative study, even though their variables might be similar.2 In this way literature survey is found in different dimensions as: POWER, EMPOWERMENT AND WOMENS EMPOWERMENT: At the core of the concept of empowerment is the idea of power. The possibility of empowerment depends on two things viz., power can change and power can expand. If power cannot change, if it is inherent in positions or people, then empowerment is not possible. Shrilatha Batliwala (1995) defined Power as control over resources, ideology and self, exersized in socio Political and Economic Context among individuals and groups. The extent of power depends on how much and how many kind of resources they have, excess to and control over. This leads to power of decision making. Jo Rowland (1997) has identified four different forms of power viz., (1) Power over Control and influence over others, instrumentation of domination, (2) Power to- generative or productive power which creates new possibilities and actions without domination. (3) Power with- a sense of whole being greater than the sum of the individuals especially when group tackles problem together. (4) Power from within- The spiritual strength and uniqueness that resides in each one of us and makes us truly human. The concept of empowerment is a product of early eighties; it has its grounding in the changes in development thinking of the mid-1970s. The dictionary meaning of the word empowerment is-to give power to (person/group) to give them capacity to perform physical or mental activity, to delegate authority, to give legal rights.3 Rapport (1987) describes the term empowerment as both individual determination over ones own life and democratic participation in the life of ones community often through mediating structures such as neighborhoods, voluntary organizations etc. Staples (1990) defined the term empowerment as means (a) to gain power (b) to develop power; to take or seize power; (c) to facilitate or enable power and (d) to give or grant or permit power. One of the most detailed attempts at defining empowerment is found in Kabeer (1999). Defining empowerment as the ability to make choices, Kabeer contends that the definition entails change, in that only previously disempowered members of society can be empowered. He suggested that empowerment consists of three dimensions viz., resources, agency and achievements. Sunita Roy (1999) reported that empowerment of women should focus on aspects like (a) direct involvement of women in programming and management, (b) effective collaboration with community organizations, (c) organizing and strengthening of womens self-help groups, (d) sensitization and advocacy for gender justice in society, (e) identifying womens need and priorities
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while generating employment, (f) organizing women in different groups to undertake certain productive activities to earn their livelihood and (g) elimination of violence and discrimination against women at physical, mental, domestic or societal level. Many researchers have stressed the importance of considering the empowerment in multiple domains (Isvan 1991; Kishor 1995; 2000; Hashemi et al. 1996; Mason 1998; Malhotra and Mather 1997; Jejeebhoy 2000; Beegle, Frankenberg, and Thomas (2001); Malhotra et al. 2002). For instance, Malhotra and Mather (1997) argue that: power is multilocational and exists in multiple domainsit is important that any discussion regarding [empowerment] specify whether this is within the family, social or political spheres, and whether the locus of control is within the household or the community4 (p. 604). Malhotra et al. (2002) suggested: womens empowerment needs to occur along the following dimensions: economic, socio-cultural, familial/interpersonal, legal, political, and psychological. However, these dimensions are very broad in scope, and within each dimension, there is a range of sub-domains within which women may be empowered.5 Empowerment is viewed broadly as increasing poor peoples freedom of choice and action to shape their own lives (Narayan 2005, p.4). PARTICIPATION OF WOMEN EMBODIED IN THE PROCESS OF EMPOWERMENT: Women have played an important part in our social life and in our history in every branch of national activity from high learning to velour on the battlefield. Today, we pass rapidly through various phases of transition, which requires the rapid changes in our old foundations. The Indian woman, the majority that is, lives in her own time, in the rhythm, of her own history, which does not quite keep time with the clocks of the 21 century. Womens participation in the revolutionary movement (Mehta, 2004) was significant even when they were deprived of basic human rights in mens world. The list of women in India who contributed to the movement for equality is enormous. To name just a few, Sarojini Naidu, Kamaladevi Chattopadhyay, Vijaylaxmi Pundit, Aruna Asaf Ali, and Rajkumari Amrit Kaur took up the fight on several fronts. (Jha and poojary, 1998)6 In general, Empowerment is a multi-dimensional social process that helps people gain control over their own lives. It is a process that fosters power (that is, the capacity to implement) in people, for use in their own lives, their communities, and in their society, by acting on issues that they define as important. Keller and Mbwewe (1991, as cited in Rowlands 1995) describe it as a process whereby women become able to organize themselves to increase their own self-reliance, to assert their independent right to make choices and to control resources which will assist in challenging and eliminating their own subordination. Batliwala (1993) defines power as having two central aspects -- control over resources (physical, human, intellectual, financial, and the self), and control over ideology (beliefs, values and attitudes). If power means control, then empowerment therefore is the process of gaining control. Kabeer(1999; 437)., in an influential paper, suggests that empowermentrefers to the process by which those who have been denied the ability to make strategic life choices acquire such an ability. Women should be able to define self-interest and choice, and consider themselves as not only able but also entitled to make choices (A. Sen 1999; G. Sen 1993; Kabeer 2001; Rowlands 1995; Nussbaum 2000; Chen 1992). Kabeer (2001) goes a step further and describes this process in terms of thinking outside the system and challenging the status quo. Sudharani et al. (2000) defined empowerment as the process of challenging existing power relations and gaining greater control over the sources of power. Empowerment is a process of awareness and capacity building, enhancing an individuals or group capacity to make effective choices, that is, to make choices and then to transform those choices into desired actions and outcomes (Alsop, Bertelsen and Holland, 2006, p.10). Shirin M. Rai et.al (2007) argued, while the local is important as a focus for debates on empowerment, we think the local must be embedded in the global and the national and vice versa. They argued that: (1) empowerment may be sequential, (2) gender balance alone cannot be the process or outcome in a world ridden with poverty and class inequality, (3) we should use the empowerment language, but contest the way it has been neutralized and even abused. WOMENS EMPOWERMENT PROGRAMMES AND ECONOMIC EMPOWERMENT: Even though outside work for women often means a double burden, the empirical evidence supports the notion that access to work increases a woman's economic independence and with it a greater level of general independence is created.7 According to Hall(1992) economic subordination must be neutralized for women
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to be empowered. The economic component of empowerment requires that women be able to engage in a productive activity that will allow them some degree of financial autonomy, no matter how small and hard to obtain at the beginning.8 The World Banks Action Plan to achieve economic empowerment through Smart Economics, for example, targets four key markets: land, labor, product, and financial and measures this through policy initiatives to make markets work for women as well as agency initiatives to empowerment women to compete in markets. A prerequisite to empowerment, therefore, necessitates stepping outside the home and participating in some form of collective undertaking that can be successful, thus developing a sense of independence and competence among the women.9 Priority should be given to women in the allocation of work in such a way that at least one-third of the beneficiaries shall be women. [Schedule II, Para 6, NREGA]. The National Commission for Women (NCW), set up in 1992, has a mandate to safeguard the rights and interests of women. Universalisation of ICDS was contemplated by the end of 1995-96 through expanding its services all over the country. Sanjukta Chaudhuri (2010), in her paper Womens Empowerment in South Asia and South East Asia: A Comparative Analysis contributed to the literature on womens empowerment by exploring the time and birth cohort trends of womens empowerment in eight countries of South Asia and South East Asia. The countries included are Bangladesh, India, Nepal, and Pakistan of South Asia; Cambodia, Indonesia, Philippines, and Vietnam of South East Asia. Initially, she estimated the relationship between economic development and female labor force participation rate FLFPR (the U curve)10 using data on 172 countries from 1990 2007. She further examined the influence of time on womens empowerment and performed a series of multiple regressions on six measures of womens empowerment variables separately for the eight countries, using individual level survey data for each country. The indicators of womens empowerment were: economic participation, educational attainment, wage work, fertility, female to male sex ratio of living children, and the ratio of ideal number of daughters to sons. In Rajasthan, Jan Chetna Sansthan have promoted Ekal Naari Shakti Sangathan in Abu Road block, Sirohi in order to help widows and single and separated women It works to ensure a rightful living for single women and addressing their problems. It also works towards getting them widow pension and other benefits under any government schemes. Deepshikha Mahila Bal Utthan Samiti came in to being in the year 1980, with the idea of promoting Welfare Policing Activities. GENDER EQUITY, EQUALITY AND INEQUALITY: Gender equality is considered an important issue for the United Nations Development Program (UNDP) because gender inequality is an obstacle to progress, a roadblock on the path of human development (UNDP, 2002, pp.6). Pradhan (2003) discusses the need to bring gender equality where men and women are considered equal in every sphere of life because .if you empower a woman, you empower her children, her community and her country (Pradhan, 2003, pp.51-57). Gender inequality can result in disadvantages and differentials for females in terms of life expectancy and children.s nutrition, denial of choice, lack of political representation, and lack of empowerment (Kabeer, 1999). Sen (2001) notes: inequality between women and men can take very many different forms. Indeed, gender inequality is not one homogeneous phenomenon, but a collection of disparate and interlinked problems. Sen enumerates seven types of gender inequality, including mortality, basic facility, special opportunity, professional, ownership, and household inequality. In order to develop economy and increased participation of women, Government addressed the problem related to women and initiate to remove inefficiency through implementing various programmes like, Awareness Generation Projects for Rural and Poor Women, CSWB Scheme, Develpoment of Women and Children in Rural Areas (DWCRA), Family Benefits Scheme, Kishori Shakti Yojana, NORAD Scheme, Scheme for working Women Hostels, Swa Shakti Project, Swayamsidha Scheme, Support to Training and Employment Programme for Women (STEP), Science and Technology for Women and so on. EMPIRICAL FRAMEWORK FOR RESEARCH: Relevant research studies conducted in the past has great relevance for new research work and is a helpful tool to conduct research more precisely. Empirical framework for research underlines the derived results from experiment and observations rather than theory. This is categorized into following subheads:
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IMPACT OF PARTICIPATION OF WOMEN IN WOMENS EMPOWERMENT PROGRAMMES: Hashemi et al (1996) undertook ethnographic research in six villages for four years to measure the effects of programmes on the empowerment of women. Two villages were Grameen Bank villages, two were BRAC villages, and the other two had no credit programmes. They used a model based on eight indicators of empowerment which were: mobility; economic security; ability to make small purchases; ability to make larger purchases; involvement in major household decisions; relative freedom from domination within the family; political and legal awareness; and involvement in political campaigning and protests Srilatha et al. (1997) observed that a major gain of making the programme of SHGs women centred was that the transition of power from the bureaucracy to the people. Sen (1997) based on a case study in India, stressed the importance of empowerment of an individual in order to gain control over assets. Haimanti Mukhopadhyay (2008) studied the role of education in Women Empowerment in the district of Malda, West Bengal, India. Her Exhaustive survey comprising forty two villages, tried to unearth the status of women, attitude towards girls education in society, problems hindering the education of women, the importance of marriage in womens life affecting education as well as the empowerment of women. During the survey, she felt that there was a very positive change at least among women in Malda district who are much more concerned about their daughters education, as compared to their previous generation. The WHOs (2008) Tackling Social and Economic Determinants of Health through Womens Empowerment: The SEWA case study experienced the SEWA as a social movement and a programme that aims to empower the poor must be prepared to listen to the poor. Swedish International Development Cooperation Agency (Sida) noted that in implementing gender policies in development, it was time to move from treating the symptoms of gender inequality to address the structural factors that cause it. Women empowerment programmes made it possible to increase empowerment with increased participation of women. Clark et al. (1991) explored the impact of culture on female labor force participation in 135 countries for 1980. They use a combination of religion, political ideology, and world region variables to find evidence supporting the importance of culture in explaining womens labor force participation. Throughout the developing countries, innovative lending programs have emerged and In many of these programs it is common to find that a large percentage of borrowers are women. Based on a 1996 survey of microfinance institution around the world, the World Bank estimated that 61% of all clients were women (World Bank, 1997). SHG AND MICROFINANCE: Self Help Group (SHG) is a voluntary association formed for the purpose of engaging small enterprise. To form this organization, it requires a minimum of twelve individuals. K.C. Sharma (2001) maintained that through SHG's women empowerment is taking place. Rekha R. Baonkar [2001] studied the impact of SHGs on women in Goa and observed that individual loans were mostly for productive purposes with cent percent recovery. P.K.Awasthi, Deepak Rathi and Vimla Sahu [2001] in their study in Madhya Pradesh on the impact of SHGs on economic status of women observed that the SHG women were engaged in Mahua, mushroom cultivation, amachur papad making, pisciculture, nursery etc. An interesting study made by M.C. Athavale, K.G Sharma and A.M. Mishra [2001] in Madhya Pradesh under the leadership of Anganwardi worker, on the working of a particular SHG called Yoshoda Mahila Samithi(YMS) has helped the members to do saving and get loan. The repayment was 100%. Rajasekar D [2003] analyzed the impact of the economic programmes of SHARE, a NGO in Tamil Nadu on poverty reduction with the help of data collected from the households of 84 women members. Kabeer(2005) examined the empirical evidence on the impact of microfinance with respect to poverty reduction and the empowerment of poor women in South Asia. Prem Chander & Vanguri (2007) highlighted the impact of microfinance programmes on women's empowerment in India. They compared Swashakti, Swayamsiddha,
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Swaran Jayanti Gramin Rojgar Yojana (SJGRY) and Rashtriya Mahila Kosh (RMK) micro finance programmes for facilitating rural poor women in their access to micro credit. EVALUATION AND ANALYSIS OF WOMENS EMPOWERMENT PROGRAMMES: Pandey conducted a study to assess the impact of Rashtriya Mahila Kosh (RMK). This study is based in the state of Maharashtra and was conducted to examine whether the RMK has been able to achieve its main objectives of reaching credit to poor women, enabling women to achieve economic independence and becoming aware about credit facilities and management. M.S. Jairath [2001] analyzed the growth and development of SHGs in Rajasthan taking two categories: (1) resource poor tribal; and (2) resource better of non-tribal. It was arrived that the average membership, rate of interest, size of borrowings were higher in the former, but the average amount of saving was higher with the latter. Deshmukh Ranadive (2002), in his study on Womens Access to Credit and Rural MicroFinance in India has addressed issues related to data in the context of microfinance interventions in rural areas. The vertical approach has shown how the data that has been collected, throws light on the different dimensions of the programme and the participants. NPC (2005) analyzed gender development in India in the context of interstate analysis with the help of state rankings on the basis of calculating the average of the standard values of the 52 criteria indicators. Dwarakanath H.D [2002] analyzed the characteristics and growth of self help groups in Andhra Pradesh and found that the SHGs using the loan facilities from the cooperative credit banks, commercial banks, mahila bank and Maheswaran banks, have produced more than 50 varieties of products. Abdul Hayes, Ruhul Amin and Stan Becker [1998] analyzed the relationship between poor womens participation in micro credit programmes and their empowerment by taking both SHG and non-SHG members in rural Bangladesh. Rajasthan Microfinance Report-2010 revealed that Good quality Self Help Groups create mutual trust and a sense of solidarity among members. This raises their confidence to deal with socio-economic problems of their family and their village, all by themselves. Women empowerment can further be boosted by promoting four ideologies, which can be taken as indicators of success a) Zero tolerance of domestic violence in families of all SHG members in Rajasthan; b) 100% girl child enrolment in educational institutions in families of all SHG members; c) 100% institutional infant delivery; d) 50% participation of women SHG members at village development committees . Milestones should be set for every year in order to achieve the stated objectives while progress should be tracked by measuring the indicators. In Rajasthan Womens' Development Programme (WDP), conceived in 1984 when the idea of rural "illiterate" women mobilizing collectively was unthinkable. And yet, the programme enabled the evolution of women's collectives under the leadership of the Sathin, the grass root worker at village level, working tirelessly on a meagre monthly honorarium of Rs 350. The strength of the Sathins and these collectives was derived from the support structures provided by the partnership between the government and the voluntary agency arm of the programme -- IDARA (Information and Development and Resource Agency), with its primary role of training and providing creative and critical inputs. CONSTRAINTS EXPERIENCED BY RURAL WOMEN IN EMPOWERMENT PROCESS: During the eighteenth century women suffered from several handicaps like female infanticide, sati (Sharma,1988), purdah (Mathur 2004), child marriage, illiteracy and subsequently forced child widowhood in the19th century. Women were treated no better than domestic animals. Moved by this extreme plight, great social reformers like Raja Rammohan Roy, Iswarchandra Vidyasagar, Sri Ramakrishna Paramhansa, Swami Vivekananda, Swami Dayananda Saraswati, M.G. Ranade, D.K.Karve and Mahatma Gandhi were in the forefront, fighting against social atrocities toward women (Jha and Pujari, 1998).11 Sing K.P (2004) says that among women who were working out of utter economic necessity, the majority were dissatisfied with the time they spend with their children and the time they allocate to their home 57 percent of working women have alternate arrangements for their children either a mother or a mother-in law or a maid to look after their children. Beckers (2005) model of effort allocation implies that an hour of a mans time produces more of value to an employer than an hour of equally skilled and experienced women who has greater responsibilities. This in true influences both employers treatment of equally capable male and female employees and workers subsequent decisions about investing time and energy in household versus marketwork. The model implies that small initial disadvantages faced by women in the work-place can lead to
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extreme results in the division of labour in the household, occupational segregation and earning difference. REFERENCES: [1] Smyth, R. (2004). Exploring the usefulness of a conceptual framework as a research tool: A researcher's reflections. Issues In Educational Research, 14(2), 167-180. [2] McGaghie, William C.; Bordage, Georges; Shea, Judy A., Problem Statement, Conceptual Framework, and Research Question September 2001 - Volume 76 - Issue 9 - p 923. [3] Banerjee NK, Grassroot empowerment (1975-1990) : A discussion paper, Occasional paper No.2, CWDS, New Delhi, 1995, p.2. [4] Malhotra, A. and M. Mather. 1997. Do Schooling and Work Empower Women in Developing Countries? Gender and Domestic Decisions in Sri Lanka. Sociological Forum 12(4), p. 604. [5] Malhotra, A., Schuler, S. R. and Boender, C. (2002) Measuring Womens Empowerment as a Variable in International Development (Washington, DC, The World Bank), p. 13; [6] Haimanti Mukhopadhyay, The Role of Education in the Empowerment of Women in a District of West Bengal, India: Reflections on a Survey of Women , Journal of International Womens Studies Vol. 10 #2 November 2008, P. 218. [7] Women, Education and Empowerment: Pathways towards Autonomy, Report of the International Seminar held at UIE, Hamburg, 27 January - 2 February 1993, edited by Carolyn MedelAnonuevo,UIE(UNESCO Institute for Education) Studies 5 1995, Robert Seemann u Neumann p.15 [8] Ibid., p.15 [9] Women, Education and Empowerment: Pathways towards Autonomy, Report of the International Seminar held at UIE, Hamburg, 27 January - 2 February 1993, edited by Carolyn MedelAnonuevo,UIE(UNESCO Institute for Education) Studies 5 1995, Robert Seemann u Neumann p.16. [10] Results confirm the existence and upward shifting position of the U curve. Hence, the U curve estimates suggests that there is a time element involved in womens empowerment. Dr. Sanjukta Chaudhuri, December, 2009, Economic Development and Womens Empowerment, from http://people.uwec.edu/chaudhs/PDFS/Chaudhuri%20Economic%20Development%20and%20Wome ns%20Empowerment.pdf [11] Haimanti Mukhopadhyay, The Role of Education in the Empowerment of Women in a District of West Bengal, India: Reflections on a Survey of Women , Journal of International Womens Studies Vol. 10 #2 November 2008, P. 217. [12] Alsop, R., Bertelsen, M. and Holland, J. (2006) Empowerment in Practice From Analysis to Implementation (Washington, D.C., World Bank). [13] Batliwala, Srilatha (1994), Womens Empowerment in South Asia: Concepts and Practices. FAO and ASPBAE (FAO, New Delhi). [14] Champions of Participation: Engaging Citizens in Local Government http://www2.ids.ac.uk/logolink/resources/downloads/Champions%20Report.pdf [15] Chaudhuri,Sanjukta, (2009), Economic Development and Womens Empowerment http://people.uwec.edu/chaudhs/PDFS/Chaudhuri%20Economic%20Development%20and%20Wome ns%20Empowerment.pdf [16] Chaudhuri, Sanjukta, 01. January 2010, Womens Empowerment in South Asia and South East Asia: A Comparative Analysis, MPRA Paper No. 19686, posted 01. January 2010 / 06:55, from http://mpra.ub.uni-muenchen.de/19686/1/MPRA_paper_19686.pdf [17] Clark, Roger; Thomas W Ramsbey and Emily S Adler. 1995. "Culture, Gender, and LaborForce Participation: A Cross National Study." Gender and Society, 5(1), pp. 47 -66. http://mpra.ub.unimuenchen.de/19686/1/MPRA_paper_19686.pdf [18] Deshmukh-Ranadive, Joy & Rajini K. Murthy, Conclusion: Analysing The Link. IN: Neera Burra, Joy Deshmukh Ranadive, & Rajani K. Murthy (Eds.) Micro Credit, Poverty And Empowerment, New Delhi: Sage Publications India Pvt. Ltd., 2005. Dr. Awadhesh Kumar Singh, Ibid., p. 36. [19] Guba, E. G., & Lincoln, Y. S. (1989). Fourth Generation Evaluation. Sage Publications.
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[20] Haimanti Mukhopadhyay, The Role of Education in the Empowerment of Women in a District of West Bengal, India: Reflections on a Survey of Women , Journal of International Womens Studies Vol. 10 #2 November 2008. [21] Jo Rowlands (1997), Questioning Empowerment: Working with Women in Honduras, Oxfam. [22] Kabeer, Naila (1999), .Resources, Agency, Achievements: Reflections on Measurement of Women.s Empowerment.,Development and Change, Vol. 30, pp. 435-464. Retrieved December 9, 2008 from http://web.ebscohost.com/ehost/pdf?vid=2 &hid=101&sid=e2e005fe-a709-4f4c-89c4-d99a70fec5a1% 40sessionmgr109. [23] Kabeer, Naila (2005), .Gender Equality and Women.s Empowerment: A Critical Analysis of the Third Millennium Development Goal., Gender and Development, Vol.13, No.1, pp.13-24, Publisher: Routledge, Taylor & Francis Group. Retrieved December 9, 2008 from http://www.genderanddevelopment.org/ and available at http://pdfserve.informaworld.com/ 311221_ 731198528_744078039.pdf. [24] Kabeer, N. (2005) Is Microfinance a Magic Bullet for Womens Empowerment?: Analysis of Findings from South Asia. Economic and Political Weekly. 29 October 2005. http://www.epw.org.in/showIndex.php. [25] Meenu Agrawal (Edited), Women Empowerment : Today's Vision for Tomorrow's Mission Mahamaya Pub, 2007. [26] Narayan, D. (2005) Measuring Empowerment: Cross-Disciplinary Perspectives (Washington, The World Bank). [27] National Federation of Indian Women (2008), Socio-Economic Empowerment of Women under NREGA, report prepared for the Ministry of Rural Development. [28] NPC, State Gender Development Report, 2005, National Productivity Council, New Delhi, 2005. [29] Nanette Page and Cheryl E. Czuba, Journal of extension, Empowerment: What Is It?, October 1999, Volume 37, Number 5. [30] Pandey Divya, Unpublished, The Rashtriya Mahila Kosh-An Evaluation Study, Sponsored By The Rashtriya Mahila Kosh, Ministry Of Human Resources Development, Government Of India, Research Centre For Womens Studies, SNDT University, Mumbai. [31] Pradhan, B. (2003), .Measuring Empowerment: A Methodical Approach., Society for International Development, Vol.46, No.2, pp.51-57, Retrieved December 8, 2008. https://secure.palgravejournals.com/development/journal/ v46/n2/abs/1110445a.html [32] Prem Chander, S., & Vanguri, P., Micro Finance & Womens Empowerment: Programme & Policy Review, CARE, New Delhi, 2007. [33] Rapport, J. (1984). Studies in empowerment: Introduction to the issue. Prevention in Human Services, 3, 1-7. [34] Reichel, M., & Ramey, M. A. (Eds.). (1987). Conceptual frameworks for bibliographic education: Theory to Practice. Littleton Colorado: Libraries Unlimited Inc. [35] SEN, 1997, Empowerment as an approach to poverty. Background Papers for Human Development Report, pp. 96. [36] Sharma, K.C., Micro Financing Through SHG's, Indian Journal Of Agricultural Economic, Vol. 56 (3), July-Sept., 2001. [37] Shirin M. Rai (with Jane Parpart and Kathleen Staudt), (Re)defining empowerment, measuring survival University of Warwick, UK Paper prepared for Workshop on Empowerment: Obstacles,
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Flaws, Achievements 3-5 May, 2007, Carleton University, Ottawa, Canada. http://www.ethicsofempowerment.org/papers/RaiEmpowerment.pdf Sida (2001) Discussing Womens Empowerment: Theory and Practice, http://www.sida.se/shared/jsp/download.jsp?f=SidaStudies+No3.pdf&a=2080 Singh, Awadhesh Kumar, Functioning and Performance of Swashakti and awayamsiddha projects in India, Final Report, 2007, Planning Commission Government of India New Delhi,p.32 Singh, Awadhesh Kumar, ibid, p.36. Singh, Awadhesh Kumar, ibid, p.41. Singh, Jai Pal and Pranay Bhargava (2010), Rajasthan Microfinance Report-2010, http://www.cmfraj.org/Rajasthan%20Microfinance%20Report%202010.pdf
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[43] SRILATHA, V. L., GOPINATHAN, P. K. AND BAKSHI, P., 1997, Power to the poor A new strategy of poverty eradication. Kurukshetra, 25(10) : 17-25. [44] STAPLES, 1990, Powerful ideas about empowerment. Administration in Social Work, 14(2) : 29-42. [45] SUDHARANI, K., SREELATHA KISHORI, K. AND SURENDRA, G., 2000, Empowerment of women in rural areas. Rural India, pp. 195-198. [46] SUNITA ROY, 1999, Women empowerment. National Conference on Empowerment of Women, New Delhi, November 1999, p. 115. [47] Taneja, Sonia et.al., empowerment from the gender perspectives, Delhi Business Review X Vol. 10, No. 2 (July - December 2009). [48] United Nation Development Programme (2002), .The Human Development Report., Deepening Democracy in A Fragmented World, New York and Oxford: Oxford University Press. [49] Women, Education and Empowerment: Pathways towards Autonomy, Report of the International Seminar held at UIE, Hamburg, 27 January - 2 February 1993, edited by Carolyn Medel-Anonuevo, UIE (UNESCO Institute for Education) Studies 5, 1995, Robert Seemann u Neumann. [50] World Health Organization (2008), Tackling Social and Economic Determinants of Health through Womens Empowerment: The SEWA case study http://www.searo.who.int/LinkFiles/SDH_SEWA_Case_Study.pdf
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A COMPARATIVE STUDY OF NPA OF NEW PRIVATE BANKS & OLD PRIVATE SECTOR BANKS
Dr. Tanmaya Kumar Pradhan, Asst. Professor, Dept. of Economics, NM Institute of Engineering and Technology, Sijua, Patrapada, Khandagiri, Bhubaneswar, Orissa, India.
ABSTRACT Gross NPA of both New Private Sector Banks & Old Private Sector Banks exhibit an increasing trend except the year 2010 in New Private Sector Banks & 2008 in Old Private Sector Banks. Increasing competition among a broad range of domestic and foreign institutions in product marketing area has become a prevalent practice. Under the Basel II necessary remedial measures would have to be updated in order to match the minimum standards prescribed under the New Framework. Banks have also been advised to formulate and operationalize the Capital Adequacy Assessment Process (CAAP) within the banks as required under Pillar II of the New Framework. The study is based on the secondary data. The scope the study is limited to five years data. Keywords: NPA,CAAP, GROSS NPA, MERGER
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It is needless to say that strong banking sector is important for a flourishing economy. The Indian banking system, which was operating in a closed economy, now faces the challenges of an open economy. NonPerforming Assets (NPA) has emerged since over a decade as an alarming threat to the banking industry in our country sending disturbing signals on the sustainability and endurability of the affected banks. The positive results of the chain of measures taken under banking reforms by the Government of India and RBI in terms of the two Narasimham Committee Reports have been neutralized by the ill effects of this surging threat. One of the main causes of NPA is the directed loans system under which commercial banks are required to lend a prescribed percentage of their credit (40%) to priority Sectors. As of today nearly 7% of Gross NPA are locked up in hard core, doubtful and loss assets, accumulated over the years. Banks are now no longer functioning under the protected environment. Therefore, their very survival depends upon their economic viability. LITERATURE REVIEW: Sarda (1998) in an article on the strategies for reducing Non-Performing Assets states that guidelines issued by the Reserve Banks non income recognition, asset classification and provisioning norms compelled banks in India not only to show the true financial picture in the balance sheet but also to take corrective steps for improving their loan portfolio. With the adoption of these guidelines banks are fully vigilant about the quality of their assets and several steps are being taken by them to reduce NPA. On lok adalat as an effective forum for reducing NPA, Rao(1999) remarks that lok adalats have gained prominence over a period of time as a forum through which the disputes/statements among the parties are settled through an expeditious compromise settlement by adopting principles of justice, equity, fair play and other legal principles. Baslas and Bansal (2001) in their study on banking sector reforms found that the level of NPA is a contentious issue and a vital parameter in the analysis of the financial health of banking industry. Public sector banks account for a higher level of NPA as they hold a higher share in lending, but contrary to general perception, the ratio of gross NPA to total advances and total assets has come down. B.Satish Kumar (2008), in his article on an evaluation of the financial performance of Indian private sector banks wrote private sector banks play an important role in development of Indian economy. After liberalization the banking industry under went major changes. The economic reforms totally have changed the banking sector. RBI permitted new banks to be started in the private sector as per the recommendation of Narashiman committee. The Indian banking industry was dominated by public sector banks. But now the situations have changed new generation banks with used of technology and professional management has gained a reasonable position in the banking industry. It has also been viewed that banks lending policy could have crucial influence on non-performing loans (Reddy, 2004). He critically examined various issues relating to terms of credit of Indian banks. Jain and Balachandran (1997) in their article point out that with the liberalization of the economy in general and the financial sector in particular, the risk dimensions facing the Indian commercial banks have multiplied. Banks which were familiar only with credit risk relating to non-payment earlier are now facing multiple financial risk in the form of credit risk relating to non-payment and non-performing risks, interest rate risk, exchange risk, maturity gap risk andtechnology risk. OBJECTIVE: (i) To estimate gross NPA of New Private Sector Banks and Old Private Sector Banks (ii) To analyze Basel II and India (iii) To study reforms introduced in Banking Sector METHODOLOGY: The study is based on the secondary data. The scope the study is limited to five years data. The study is related to New Private Sector Banks and Old Private Sector Banks.
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Gross NPA of New Private Sector Banks & Old Private Sector Banks (Amount in Rs.Lakh) Year New Private Sector Banks Old Private Sector Banks 2007 595300 236900 2008 988900 217700 2009 1389992 261925 2010 1377220 305391 2011 1427672 336172 Source: www. Department of Banking Supervision, RBI The Table 4.1 shows that gross NPA of both New Private Sector Banks & Old Private Sector Banks exhibit an increasing trend except the year 2010 in New Private Sector Banks & 2008 in Old Private Sector Banks. REFORMS INTRODUCED IN BANKING SECTOR: Of Late, the banking industry has undergone rapid changes, followed by a series of fundamental developments. Most significant among them is, the advancement in information technology as well as communication system. This has changed the very concept of traditional banking activities and has been instrumental behind broadening the dissemination of financial information along with the costs of many financial activities. Information Technology and Communication Networking System have revolutionalized the functioning of the bank groups. Secondly, increasing competition among a broad range of domestic and foreign institutions in product marketing area has become a prevalent practice. Thirdly, in line with the increase in overall economic activities, financial institutions too have modified themselves accordingly in all the spheres, including customer service. Consequently, the institutional and systematic structure of the financial sector in general and the banking sector in particular has seen following changes: i . Bank Deposits are being replaced by directly issued securities. ii. Emergence of markets for risk in which exposures to specific market or credit risk can be transacted separately from the underlying financial assets. iii. A sea change has been brought about in the business profile of financial institutions. iv. Presently, the banking service has been provided by the other institutions, while the banks are entering into non-banking activities. v. Merger, commercial banking services as well as investment banking and insurance services are the new forays of banking industry. The birth of the new generation private sector banks is a direct outcome of this reforms process. So far, 8 such banks have come up during the last few years at different point of Liberalization and reforms have thrown up a few challenges as well as created opportunities for banks to increase revenues by diversifying into investment banking, insurance, credit cards, retail financing, depository services and more. The last few years have witnessed rapid changes in the banking sector, with a rather strong and aggressive presence of new private sector banks. These new private sector banks have taken a sizeable amount of business away from the public sector banks as well as the foreign banks. They are becoming a challenge and also a threat to the Indian public sector banks. Banking, a major part of the financial sector is blood for the whole industry, necessary to survive. It plays a decisive role in accelerating the rate of economic growth in each economy. In the wake of contemporary changes in the world economy and other domestic crises like adverse balance of payment problem, increasing fiscal deficits etc., our country too embarked upon economic reforms. As banking sector reforms represents the financial sector, are necessary for faster economic growth to meet the emerging challenges. To improve the adverse situation in banking, banking sector reforms were introduced in 1991 and 1998 by the committee constituted under the chairmanship of M. Narasimham. BASEL II AND INDIA: RBI's association with the Basel Committee on Banking Supervision dates back to 1997 as India was among
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the 16 non-member countries that were consulted in the drafting of the Basel Core Principles. Reserve Bank of India became a member of the Core Principles Liaison Group in 1998 and subsequently became a member of the Core Principles Working Group on Capital. Within the Working Group, RBI has been actively participating in the deliberations on the New Accord and had the privilege to lead a group of six major non-G-10 supervisors, which presented a proposal on a simplified approach for Basel II to the Committee. Commercial banks in India would start implementing Basel II with effect from March 31, 2007. Banks would adopt Standardized Approach for credit risk and Basic Indicator Approach for operational risk, initially. After adequate skills are developed, both at the banks and also at supervisory levels, some banks would be allowed to migrate to the Internal Rating Based (IRB) Approach. Under the Basel II necessary remedial measures would have to be updated in order to match the minimum standards prescribed under the New Framework. Banks have also been advised to formulate and operationalize the Capital Adequacy Assessment Process (CAAP) within the banks as required under Pillar II of the New Framework. Banks have been expanding the area of disclosures (Pillar III), so as to have greater transparency in the financial position and risk profile of banks. Capacity building measures have been taken up for ensuring the regulator's ability for identifying and permitting eligible banks to adopt IRB/Advanced Measurement approaches. India has four rating agencies of which three are owned partly/wholly by international rating agencies. Compared to developing countries, the extent of rating penetration has been increasing every year and a large number of capital issues. While Basel II provides some scope to extend the rating of issues to issuers, this would only be an approximation and it would be necessary for the system to move to rating of issuers. Encouraging rating of issuers would be essential in this regard. CONCLUSIONS: Despite the overall progress made by the financial system, poor capital base, inefficient organizational structure, declining profitability and very high and ever growing Non Performing Assets (NPA) had become the major stumbling blocks in the banking sector. Gross NPA of both New Private Sector Banks & Old Private Sector Banks exhibit an increasing trend except the year 2010 in New Private Sector Banks & 2008 in Old Private Sector Banks. REFERENCES: [1] A.V. Aruna Kumari (2002), Economic Reforms and Performance of Indian Banking: Across Structural Analysis, Indian Economic Panorama, A Quaterly Journal of Agriculture,Industry, Trade and Commerce ,Special Banking Issue, pp. 19-21. [2] Reserve Bank of India, master circular on Prudential norms on income recognition. Asset classification and provisioning. [3] Bhasin, N. (2008), Banking Developments in India 1947 to 2007, New Delhi, Century Publications. [4] Malyadri, P. (2003), NPAs in Commercial Banks An Overview, Banking Finance, Monthly, January 2003, Vol. XVI, pp.6-9. [5] Rajaraman, I & Vashistha, G. (2002), Non-Performing Loans of Indian Public Sector Banks Some Panel Results, Economic and Political Weekly. [6] Vasanthi, G. (2006), effect of Non-Performing Assets on Operational Efficiency of Central CoOperative Banks, Indian Economic Panaroma, 16, pp33-39. [7] Bloem, A.M., & Goerter, C.N (2001), The Macroeconomic Statistical Treatment of Non-Performing loans, Discussion Paper, Statistics Department of the IMF. [8] Taori, K.J.(2000,Aug). Management of NPAs in Public Sector Banks. Banking Finance, August Issue. (pp.98-101). [9] Sergoi, M. (1996). Non-Performing bank loans: Cyclical patterns and sectoral risk. Review of Economic Conditions in Itally. Rome : Jan-June 1996.Issue.1. [10] Mohan, Rakesh (2003). Transforming Indian Banking : In Search of a Better Tomorrow, Reserve Bank of India. Reserve Bank of India Bulletin, Speech article, January,2003.
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[11] Mor, N. & Sharma, B. (2003). Rooting Out Non-Performing Assets. Fifth Annual Conference on Money and Finance in the Indian Economy. Indira Gandhi Institute of Development Research (IGIDR).Mumbai, January 30-February 1, 2003. [12] Misra, B.M. & Dhal, S. (2010,Jun). Procyclical management of non-Performing loans by the Indian public sector banks. BIS Asian Research Papers. June, 2010. [13] Pal Ved & Malik N.S. (2007), A Multivariate Analysis of the financial characteristics of Commercial Banks in India. The Icfai Journal of Bank Management. VI (3). [14] WELLS Fargo & Co.(2003), Big Banks Report Strong Gains, Led by Wells Fargo, Bank One, Wall Street Journal Eastern Edition, Vol.242, Issue 80, p.C5 [15] Prashanth K Reddy (2002), A Comparative Study of Non-Performing Assets in India in the global context Similarities and dissimilarities , remedial measures, The Indian Institute of Management, Ahmedabad, India [16] 26.Woo,David, (2000), Two Approaches to resolving Non Performing Assets During Financial Crises, IM Working Paper, WP/oo/33 [17] 27. Chandrasekhar, C.P.2009. How sound is Indian banking. The Economic & Political Weekly. May,pp.8 ----

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Volume IV Issue 1 (2) January 2013

Managing Editor: Dr. Arif Anjum (India)

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