DEVELOPMENT OF WOMEN ENTREPRENEURSHIP IN THE NEW …

International Journal of Research & Business Innovation (IJRBI)

155 Vol.2 No.2, September 2014

DEVELOPMENT OF WOMEN ENTREPRENEURSHIP IN THE NEW ECONOMIC ORDER

*Dr. Deepu Jose Sebastian _______________________________________________________________________________________________________

*Associate Professor and Doctoral Research Supervisor, Postgraduate Department of Commerce, Deva Matha College, Kuravilangad, Kottayam, Kerala

Abstract Economic development is possible only with the help of planned and unrelenting business activities. Entrepreneurs are the human agency at

the back of such activities. Entrepreneurship is the skill or quality of such human resource, which is snatching opportunities and organizing endeavor for their commercial exploitation. They initiate changes to do ventures in a better way, to get more return from them or to impart more satisfaction to the consumers. Entrepreneurs bring together the productive resources and act as catalytic agents in the process of economic development.

1. Introduction

Economic development is the result of contributions of the working population, both male and female in the region. Women constitute almost half of the population in the world; therefore, their contribution to the economy is significant. In the patriarchal traditional society, women folk were not expected to have a direct role in industrial and commercial activities. In the modem society, the role and degree of integration of women in economic development is considered as the indicator of social advancement and the women's economic independence.

Women everywhere, in developed or developing economy in the world, are becoming entrepreneurs. The profound structural changes taking place in the developed countries generate new opportunities for women. Changing sociological factors also contribute to this. Since the Second World War, there was a great flow of women to labour markets in the western world. They are found to be motivated by several factors such as need for independence and self sufficiency, domestic financial requirements, increasing rate of divorcing and increasing number of women as heads of households. Changing values and attitudes towards paid work also encourage members of wealthy family to seek self-realization outside the home. This emerging pattern in the developed countries inspired their counterpart in the developing countries. In any economy, whether developed or developing, not all women are content to be employees. A growing number are emerging as entrepreneurs. For low-income women, the primary motivation is to earn income. But for many women entrepreneurs, such other objectives as self-realization or doing something worthwhile are as important as earning a profit.

Promotion of self-employment of educated women is rather important for many reasons. Household women cannot accept a regular full-time employment for the double role which women have to play even now. It is not easy for them to find a job that will be suitable with family responsibilities and chores. Women who run their own enterprises are able to develop a working schedule that allows them to combine their domestic responsibilities and entrepreneurial duties. It not only gives them an

independent income but also provides self-reliance and social status. Promotion of self-employment of educated women has additional advantage of creating more jobs for aspiring educated women. Self- employed women enterprises are creating employment for themselves and for others.

The overall context of Women Entrepreneurship Development can be described in terms of: (a) the Metro environment within which women entrepreneurs create and develop their enterprises; (b) the mesosphere , the intermediary and institutional sphere within which women entrepreneurs can open and operational their enterprise, and (c) the micro sphere (the family and house hold sphere) within which the gender specific division of labour and decision making power shape women's multiple identities, including her potential identity as an entrepreneur in a given cultural and ideological context. The macro environment comprised of many interconnecting structure and dynamics, including: laws and regulations, competition, labour market, international trade, technology, credit facilities, natural resources, physical infrastructure etc. While the macro environment impacts up on all entrepreneurs there is much evidence to indicate that women are more disadvantaged than men in relation to the opportunities and barriers arising from these structures and dynamics. There are a large number of organizations involved in providing support services to entrepreneurs. However, for a variety of reasons many of these organizations tend to act as barriers when it comes to providing assistance to women entrepreneurs. At this level, it is find that many of the organizations which implement policies and programmes, and lack of their support for women entrepreneurs contributes greatly to their continuing disempowerment. In many countries in south Asia women experience an unequal power relationship with men who are often reflected in persistent intra family inequalities in the distribution of tasks, in access and control over resources, as well as in intra household bargaining power, which typically also weakens a woman's extra -household bargaining power. They are expected to carry household work, child rearing, and other tasks restrict their economic opportunities. The requirement that women should



stay close to the home further limits their potentials in business. (Finnegan and Danielsen, 1997) 2. Types of women entrepreneurs

On the basis of the situation in which women turn to the role of an entrepreneur, they can be classified in to three: a. Natural entrepreneurs

Natural or pure entrepreneurs possess basic entrepreneurial talent and are often good managers too. They are motivated by economic rewards (make profit or generate income) or Psychological factors such as independent employment, social status etc. On getting a chance, they will start their carrier. Majority of them will establish without much external support and assistance. b. Created entrepreneurs

Created or motivated entrepreneurs are prop up through incentives, training or such other schemes. Even though they are not self-starters, if someone gets them started they keep going all right. Entrepreneurship Development Programmes (EDPs) and Governmental assistances are aimed at creating new generation entrepreneurs. c. Forced entrepreneurs

Forced entrepreneurs are reluctant to undertake any venture. But some incidents push them to undertake the responsibility of a business. Death of parents or husband, property, or family business inherited may force them to become entrepreneurs. They are by and large deficient in managerial proficiency. 3. Typical Characteristics of Successful Women Entrepreneurs

Since the entrepreneurial functions are same, a woman entrepreneur should possess all the qualities that require for a successful entrepreneur. Under the prevailing socio- economic conditions in developing countries, the women folk require Government patronage through institutional support and financial assistance, recognition of the society and moral support and encouragement of family members.

Need for achievement and basic entrepreneurial abilities are personal qualities essentially required for a woman to become a successful entrepreneur. Managerial skills can be inculcated through proper training. The role of Institutional agencies is to ensure access over credit and provide training and technology.

In the ILO seminar conducted in September 2000 to discuss the development of women entrepreneurship, the workshop identified the following typical characteristics for a successful women entrepreneur (Reinprech, 2000).

The successful income-generating woman typically has got following characteristics:

Strives for independence

Gets support by her family (e.g. household, acceptance by husband).

Marketing abilities (e.g. able to do price calculations)

Aims at concrete objectives and has got ambition It was found that in contrast to these

characteristics, an income generating woman will not have much success, if she is very isolated, extremely poor (no resources at all), hasn't got energy for change, hasn't got ambition. She needs support of the family and assistance at the organised institutional levels.

Hence creation of a women entrepreneur requires personal qualities at the micro level plus family support and institutional assistances at the macro levels. A successful women entrepreneur is the outcome of [Basic entrepreneurial + Managerial abilities] + [Family support +Institutional assistance].

Goffee and Scase (1985) attributed some unique characteristics for women entrepreneurs and classified women entrepreneurs in to four groups a. The Conventional Group: This Group is made up

of women entrepreneurs who believe in the natural superiority of men, although they have lofty entrepreneurial ideals. They have high attachment to entrepreneurial ideals and an equal attachment to patriarchal ideals. They possess high attachment to conventional notions about gender roles.

b. The innovative group: This group has a high attachment to entrepreneurial ideals but a low attachment to patriarchal ideals. They reject prevailing / conventional notions and are not afraid to compete with men. They are often more educated than the conventional group.

c. The domestic group: This group has high attachment to patriarchal ideals and very low attachment to entrepreneurial ideals. They are strongly attached to the conventional female role. Very often they are unwillingly self-employed entrepreneurs.

d. The radical group: This group has a very low attachment to both entrepreneurial and patriarchal ideals. They have no commitment to conventional female roles and no commitment to entrepreneurial ideals. They became entrepreneurs due to various reasons.

4. Women Entrepreneurship - Emerging Scenario

The political world pays increasing attention to small enterprises that are a driving force behind economic growth, social well-being, and the creation of jobs. The presence of women is particularly relevant in this area: According to recent estimates, the number of firms set up by women is growing twice as fast as those created by men. The worldwide amount of self-employed women has switched from 26 per cent in 1980 to 40 per cent in 2010. This dramatic growth has been possible despite the difficulties that small and medium-sized enterprises run by women must face when having to obtain funds and step into new markets.



“Women entrepreneurship suffers from a lack of statistical information and research, thus limiting analysis and leading to the use of a priori estimates and hypotheses. It is crucially important to promote the development of research in order to better inform the different actors and decision makers about a social and economic phenomenon with a real potential for innovation and job creation in the 21st century” (Duchene, 1997).

Table Evolution of rate of women amongst the Self-

Employed in selected Countries

Country Per cent to total self employed

1970 2005

Australia 28 35

Denmark 11 18

Germany 22 26

Italy 15 24

Netherlands 8 30

Norway 9 27

Switzerland 15 32

Sweden 10 26

Australia 16 32

United States 14 36

Africa 3 12

Latin America 16 34

Asia 19 25

Average 15 28

Source: OECD Conference on Women Entrepreneurship, 2009 5. Conclusion

The emergence of women entrepreneurs and their contribution to the national economy is quite visible in India. The number of women entrepreneurs has grown over a period of time, especially in the 1990s. Women entrepreneurs need to be lauded for their increased utilisation of modern technology increased investments, finding a niche in the export market, creating a sizable employment for others and setting the trend for other women entrepreneurs in the organized sector. According to the Second All India Census of registered Small Scale Industries (for the base year 1987-88), share of women in the SS1 sector was only 7.70 per cent. In 2008, it is estimated that women entrepreneurs comprise about 12 per cent of the total entrepreneurs in India. It is also clear that this percentage is growing and if the prevailing trends continue, it is not unlikely that in another ten years, women will comprise 20 per cent of the entrepreneurial force in India. References

1. Duchene B., 1997, Organization for Economic Cooperation and Development (OECD) Conference on Women Entrepreneurs in Small and Medium Enterprises, First Plenary Session, Paris, April 16-18.

2. Finnegan G., Danielsen K., 1997, Promoting the Development of Women Entrepreneurs – Means and Ends in Women Entrepreneurship Development, ILO-SAAT, New Delhi.

3. Goffee R., Scase R., 1985, Women in Charge, Allen and Unwin, Adopted from Dr. Premjeet Kaur Dhillon, Blaze Publishers, New Delhi.

4. Reinprech K., 2000, Key Success Factors for Women Entrepreneurs: The Experience of the Australian Development Co-operation, Employment Sector, ILO Seminar, Turin, 4-8 September.



CORPORATE ETHICS OF TOP IT COMPANIES IN INDIA *Lawrence Leve S

_____________________________________________________________________________________________ *Research Scholar & Guest Lecturer in Management Studies, Bharathidasan University constituent college of Arts and Science, Navalur kuttapattu, Srirangam (T.K), Tiruchirappalli-620009.

Abstract

Ethics as an issue has become very important in Indian IT companies with Satyam scam getting a global centre stage. Increasingly executives, employees and businesses in general are held accountable for ethical violations, have stood for trial, dismissed or forced to resign. In this context, the paper investigates how well implemented are the ethical practices of the top 10 IT firms in India. Since Companies have ethical obligation to all its stakeholders, this paper examines the attribute to building trust and confidence of related its employees, customer privacy data protection, anti-competition policy, industry specific specification etc. under ethical boundaries. Keywords – Corporate Ethics, Code of Conduct, Employee Benefits, Community Improvement and Customer Satisfaction.

Introduction

Until 1990’s ethics was not on agenda for many companies in India. But it has become one of the sizzling issues in recent years. Corporate ethics is believed to be the cornerstone of any business for building trust and confidence among its stakeholders. It is believed that good business means good ethics in organization. However, companies looking for short term gains often engage themselves in illicit payments, kickbacks, non - disclosure of its product limitations or resorting to improper marketing strategies. In recent times, instances of fraud at workplace are not hidden from us. It is even more alarming that frauds committed by employees are more common by those persons external to the organization (Shaw, 2002). Such ethical violations in running the business may gradually manifest in many objectionable consequences. Frauds of Harshad Mehta, Ramalinga Raju of Satyam have shocked and disappointed the corporate world. There is enough evidence that by following unfair and unethical means an organisation not only incurs expenditure on legal suits but also tarnishes its image and loses its goodwill. Some of the other renowned unethical practises in India have been the Bhopal Disaster, Scandal of Harshad Mehta and Fodder Scam in Bihar. In present day context, companies are more concerned about profits and revenues for its long term sustainability and therefore neglect ethics in organisation. It is already exemplified by some major scams that have captured global attention. Companies consider profitability, competitiveness, innovativeness and sustainability as more integral to it success and hence they conflict the ethical issues which ultimately takes a backstage. But these companies forget that a clean image catches the attention of investors, stakeholders and alike. An organisation which practices good ethical standards is usually assured of repeated business from satisfied customers and this ensures continuity in business. Hence, high ethical standards are now increasingly recognised as an asset to ensure sustainability of a company and an unethical behaviour is considered a liability. There has been a study by the UK’s Institute of Business Ethics (IBE) indicating that the companies which were committed to business ethics showed a better financial performance in the long run than

those lacking such a commitment. A similar study done earlier by a group at De Paul University, Chicago also showed a distinct correlation between ethics and better financial performance of the company. Acting ethically has become ‘the fundamental’ to the very existence of a company. Recognizing the importance of ethics in corporate world, many successful companies are paying attention towards effective ethical education to their staffs. It makes the company internally more stable and contributes towards a responsible public image of the company. In period of crisis, corporate ethics have a strong common uniting influence on the staff which makes the company even stronger and more survivable. Ethics also plays a significant role in building a trustworthy environment within a company and shaping its image in the public. Hence, developing an ethical system is a difficult yet effective task in a company, as it guides the basic decision making strategy without violating any societal norms. In this paper, there is an effort to bring out how the Indian IT firms that operate in a globalised world have addressed the issues of business ethics. Most companies in general look at ethics in an ambiguous manner. They hesitate to address ethical issues seriously and openly. Literature review Corporate ethics is not just about being moral and doing things the right way. Ethics refers to the basic principles of moral values that are expected to be followed by every citizen in a civilized society, aiming to maintain self-possession and virtues. Any organization whether profit making or service oriented needs to abide by ethical principles so that the entire nation is benefited. The major sources of ethical values are knowledge imbibed through religious sermons and Vedic books, culture and law. These systems influence every organization and have become the guiding principles for the individuals working in the organization. The strict followers of religious values also practice ethics in organization. Teleological Ethics Teleological ethics focuses on the end result of any company’s business as being ethical or



unethical rather than the process of getting to that result. It was conceived by Jeremy Bentham and John Stuart Mill in 19th century. This view puts forward the idea that a person should act in a way that maximizes the good of the greatest number of people. It is a form of ‘cost benefit’ analysis. Deontological Ethics Deontological Ethics focuses on the means of getting to the result as ethical/ unethical. It takes into consideration the fact that how you get to end is as important as the process by which you get to that result. This approach has its roots in the philosophy of 18th century thinker Immanuel Kant and the like. Kant’s main view was that there should be rules and morals in society that should be fair and universally acceptable. Ethics in Indian IT Companies Corporate Ethics in India is a relatively new subject. This statement reflects the development of the discipline in India. Business ethics has gained importance as an academic subject only in 1980s. Since then, ethics in Indian companies have been a focal point but because of the intense competition nowadays, it has become indispensable. With the economic liberalization of Indian economy in 1990s there had been increase of MNC’s in the country allowing foreign investments in all its sectors. While MNCs give serious consideration to following ethical standards, Indian companies’ performance is increasingly evaluated against these standards. India as an emerging economy has a huge responsibility to succeed in a highly competitive global economy. With the Indian companies going global through mergers and acquisitions and foreign companies showing increased interest in India, Indian companies must follow the ethical rules of the international business. Dealing with companies’ customer, supplier, partner or competitor on routine basis, stakeholders demand a proof of sound ethics and governance with the associated company. Just as quality certification like ISO 9001, Six Sigma has become a measure for credibility of business; Indian companies must try to operate their business in conformity to ethical standards. Community

Community gives business the right to raise revenue, use the resources, infrastructure etc. In return, it is the responsibility of the company to be a good citizen and act in a responsible manner. This includes the supporting of local charities, provision of local facilities, sponsoring of local initiatives. There have been many cases where large MNC’s in particular have failed to do this and are accused of exploiting the local community rather than supporting it. Many large companies have huge power and it is certainly very easy for them to abuse this power. Organizations are part of this community and should behave ethically with them.

Methodology

The sampled IT companies were studied using the content analysis disclosed in publicly available document such as Code of Conduct/ Ethics, Sustainability Report and Annual Report for the year 2009-10 of top 10 IT companies in India (according to latest NAASCOM, National Association of Software and Services Companies). The ranking of the companies were based on Indian revenues generated by the company in the year 2009-10. The companies whose corporate office were based outside India such as Accenture, Cognizant, HP India, Syntel, Oracle Financial Services ,and IBM was not a part of the ranking hence not been considered in the sample. Employees The most frequently reported category of employees that is diversity and equal opportunity indicated that the companies promote people on the basis of their qualification and performance, and were determined to provide an environment free from any illegal discrimination in hiring, compensation, access to training, promotion, termination or retirement based on ethnic and national origin, race, caste, religion, disability, age, gender or sexual or political orientation. Some examples of the information about diversity and equal opportunity in the publicly disclosed reports were: “Through all our other initiatives, the overarching focus remained on increasing and nurturing Diversity, and making Wipro a more inclusive workplace. We made progress on all four pillars of the Wipro Diversity charter: gender, nationalities, people with disabilities, and underprivileged sections. Some of the initiatives are described in subsequent paragraphs”. (Wipro: Sustainability Report 2009) “We will create a work environment that is open, honest and unprejudiced and which encourages people to achieve their full potential. We will value people’s individual and team contributions and offer opportunities to share in the company’s commercial success. We will recruit, employ and reward on ability and contribution.” (Tech Mahindra: Code of Conduct, 2009) “A Tata company shall provide equal opportunities to all its employees and all qualified applicants for employment without regard to their race, caste, religion, colour, ancestry, marital status, gender, sexual orientation, age, nationality, ethnic origin or disability.” (TCS: Code of Conduct: 2009) It was found that the annual reports from all companies disclosed a quantitative data of employee benefits. However, none of the companies have a policy in place for employee benefits. Health and safety of employees and training and career development were the second most reported attribute. What was alarming about employee category was that 5 or more companies out of 10 did not report on employees under one or any of the



attributes mentioned under employee category. Only 4 out of 10 top companies had grievance redressed policy in place in the form of embeds process or whistle blower, 1 out of 10 companies had a transparent disclosure on evaluation & rating of performance of its employees, work life balance and family friendly policy. Human right policy was another area hardly reported by any company. Customers This is another most important stakeholder category for the disclosure of performance by the software companies. Though there was no separate section devoted showing the importance of customer in either annual report or sustainability report, most of the companies reported the information in quantitative nature in annual report. The firms reported most about product quality being delivered to the customer (90%) in the annual report, followed by privacy and safety of client information (50%) in code of conduct. . Dealing with fair trade was reported by only 3 out of 10 companies whereas product labelling was disclosed by only 1 company. Responsible marketing, customer health and safety, product access were some of the areas in customer category untouched by the companies. Product quality is an important parameter to disclose in the customer category because it helps to build and manage relationship with clients. The companies make sure that tasks undertaken are executed with attention and with a mind -set of getting the objective solved, not just for completing the job. Some of the samples of disclosed information on product quality were: Our Quality Management System targets results in project satisfaction scores, customer experience as reflected in the Annual Satisfaction Surveys and Process Excellence across key business processes. Our customers trust the strength of our quality processes that assure timely, defect-free delivery of products and services.” (Wipro: Annual Report, 2009) “Your Company continues its focus on quality through a very robust process framework implementation. Continuous process improvements in developing solutions that meet client expectations is a way of life in your Company. The objective is to ensure greater customer satisfaction through improved quality, higher productivity and reduced cycle time.” (Tech Mahindra: Annual Report, 2009) Since the IT firms deal with international customers whose sensitive data and information are used and stored with ultimate care. Hence product privacy seems to be of prime importance. To be successful in acquiring more business from existing customers and also to get new customers, these firms must be able to convince their international customers of the absolute safety of the products and services offered. The code of conduct disclosure about safety information might help in convincing the stakeholders of the efforts that the firm has taken to

deliver a safe product. Some examples of disclosure about data safety by firms are given below: “A comprehensive information security and business continuity program is in place, in compliance with ISO 27001. Core focus areas include physical & data security, access control, intellectual property protection, security training & awareness. These are audited regularly by internal and external auditors as well as our customers.” (Wipro: Annual Report, 2009) “Revealing confidential company information could undermine TM©s competitive advantage. Be aware of TM©s security classification system. Remember to be very careful when discussing confidential TM business in public places, and be sure of whom employees are speaking to before disclosing information that might be commercially sensitive.” (Tech Mahindra: Code of Conduct, 2009) Community IT companies reported most frequently about corporate community investment (50 %) in the form of education and upliftment of weaker section in the community category in their Annual Report. Policy on gifts, bribery & corruption, fair competition, employee engagement in voluntary work were disclosed by (max 50%) companies in code of conduct separately. Companies realize that poor literacy rate in India which is 64% is a major problem in India. Education to poor people empowers them, provides them with different employment choices and opens many door of progress. Indian IT companies are recognizing the power of education in the country and are trying to address the issue of systematic reform in our education system through various programs and partnership with the colleges. Hence, the IT firms are probably concentrating on children’s education and the upliftment of the poor, as indicated in the following quotes: “We try and engage in deeper issues like education that pose an important challenge to our future in bringing about long-term social change.” (Wipro, Annual Report, 2009). “The Company endeavours to make a positive contribution to society supporting a wide range of socio-economic, educational and health initiatives, and almost all of these projects and programs are driven by active participation from the employees of the Company.” (HCL: Annual Report, 2009). From their annual report and sustainability report disclosures it was noticeable that firms also undertake health service initiatives like building hospitals, treating cancer patients, supporting blood donation camps and food programs such as midday meals for school children and providing food for people affected by flood and famine. Some examples of public health & safety disclosures were: “Our mobile clinics reach the communities around our factories and provide healthcare to those who cannot come to the centre. We provide primary



health care services and focus on both preventive and curative treatment.” (Wipro: Annual.Report, 2009) “Concerned with the public health issues in India, Shiv Nadar is involved with the Public Health Foundation of India (PHFI), working to establish standards in public health education and to create a network of innovative world class India relevant institutes of public health.” (HCL: Annual Report, 2009). Shareholders:

It is mandatory for all the firms to disclose information about shareholders in their Annual Report as per Indian Companies Act of 1956 or by Memorandum and Articles of Association of the company or by the general law, especially relating to contracts under the Indian Contract Act, 1872. Disclosure about voting right and voting procedure was made 100% in the Annual Report. . However, only 4 out of 10 firms disclosed information about shareholder’s rights and insider trading. All the IT firms publishing a separate Code of Conduct (50%) disclosed a policy on Insider Trading. Only 2 firms in the sample disclosed voluntary information about minority rights. Almost all of the information about shareholders was quantitative in nature. The voluntary information disclosed by the firms in the annual reports though very less gave an idea of the activities undertaken by the firms. “We communicate with investors regularly through e-mail, telephone and face-to-face meetings either in investor conferences, company visits or on road shows. Filings with SEC and consequently discontinued publishing financial statements as per U.S. GAAP” (Infosys: Annual Report, 2009). It is possible that if these firms disclose more information on their stakeholder activities and make the stakeholders aware of such initiatives, it could add value to the firm. Conclusion This study highlighted that most of the top sampled IT firms in India disclose information on all its major stakeholders of their firms but the disclosures were limited only to certain indicators in each stakeholder category. Several categories under stakeholders were untouched by all the companies and many indicators disclosed only voluntarily by very few IT firms. Moreover, Code of Conduct/ Ethics was not in place by half of the sampled IT firms. In the context of above study, it is important to understand that Indian IT firms were ignoring a number of indicators related to the issues of business ethics. The study suggests that ethical reporting by IT firms in India is at a very nascent stage. Setting up a code of Ethics compulsorily and elaborately to counter unethical behaviour is strongly needed by IT firms. The analysis reveals sufficient evidence that ethical and compliance policies were not in place by Indian IT firms and there is a strong need to do so under globally acceptable standards as a proactive

measure. Policy related to different stakeholders highlighting ethical practices as per global standards is the need of the IT firms in India. The information in disclosed reports must cover topics and indicators that would identify its stakeholders and explain how it responded to the expectations and interests. The finding of the research paper highlighted the need for IT companies under study to formally address the ethical issues with all the seriousness it requires. The findings of the study, however, should be interpreted acknowledging several imitations. Firstly, the study covers only one year data of IT firms. Secondly, the sample comprises of only 10 IT firms in India and it does not represent the ethical behaviour of overall IT industry of India. Thirdly, only the publicly available reports published by the IT firms were analysed for the ethical study. Last but not the least, there might have been some errors analysing the content though possible efforts were taken to minimize them. The result of the study will provide a basis for a more extensive research in future covering a longer time period and a wider sample study of software firms in order to represent an overall picture of ethical practices in Indian software industry. Research could also be conducted using the website content of the firms as it also provides lots of information on the firms. Hence to conclude, the study was important to understand that the issue of business ethics in IT firms in India is no longer to be ignored to win a place in the global market. References 1. Agarwal, Surabhi (2005), “Whistle-blowers: Are they really

Protected”, Corporate Frauds- Trends And Lessons, ICFAI University Press, pp 100-107.

2. Arevalo, Jorge A. (2011), “Corporate Social Responsibility Practices in India: Approach, Drivers and Barriers”, Corporate Governance, Vol.11, No.4, pp. 399-414.

3. Bradburn, Roger (2001), Introducing Business Ethics, London & New York, Continuum Publication.

4. Banerjea, P.K. (2010), “Wholesome Ethical Leadership”, The ICFAI University Journal of Corporate Governace, Vol. 9, Nos. 1&2. pp.7-13

5. Biswas, N.B (1998), “Economics and Ethics in an Indian Society- A Reflective Analysis” International Journal of Social Economics, Vol. 25, Nos. 6, 7 & 8, pp 1064- 1072.

6. Bilimora, et al. (2007), Indian Ethics: Classical Traditions and Contemporary Challenges, Vol.1, Ashgate Publishing.

7. Chandrasekaran, R. (2010), “Business Ethics in Indian Oraganisations”, HRM Review, (Sept),pp. 47-48

8. Chakraborty, S.K, (1997), “Business Ethics in India”, Journal of Business Ethics, Vol. 16, No.14. pp 1529-1538 CSC, (2009), Annual Report

9. .Fernando, A.C. (2009), Business Ethics: An Indian Perspective, New Delhi, Dorling Kindersley (India) Pvt. Ltd.

10. Fernando, A.C. (2010), Business Ethics And Corporate Governance, Noida, Dorling Kindersley (India) Pvt. Ltd.

11. HCL Technologies Limited (2009), Annual Report 12. .Infosys, (2009), Annual Report & Sustainability Report 13. .Joshi, Rashmi (2007), “Ethics and CSR; Do They Accelerate

or Hinder Business Growth”, HRM Review (September), pp. 48-52

14. Kanagasabapathi, P.(2007), “Ethics and Values in Indian Economy and Business”,



A STUDY ON MARRIED WOMEN WORKING IN NIGHT SHIFT AND ITS IMPACT ON FAMILY RELATIONSHIP

M.Selladurai J.Priyadharshini

_______________________________________________________________________________________________________ * Faculty of Commerce, AVS College of Arts & Science, Salem.

Abstract

The women's are not just playing the role of house maker but she is also going out like men and works and earns the money. As the women are earning money she has become more independent in financial aspects. In past days the women was only looking the children and home and she does not have any other responsibilities but in today's scenario she will manage the responsibilities of family and work so she is more dynamic and courageous to face the challenges posed by the society. The modern day hectic lifestyle is often blamed for this rise. This is because most people these days are career oriented and couples often don't spend quality time with each other. This communication gap can lead to break ups in no time. Couples should remember that marriage is the coming together of two love filled hearts and it loses its whole meaning when it ends in a divorce. The study says that the working hours are limited to 8 hours and more than that and even most of will not travel for more than 2 hours for their jobs so the employees will not feel more tiredness in the work. Almost all the IT firms will provide the best and safety transport facility to the employees who work in night shift. But most of women employees will not prefer the night shift because the hours are not preferred for working. Most of the employees have taken the counseling this can be avoided if they can avoid the unnecessary stress and maintain the balance mind. The health hazards can be avoided to some extent if the women employees take the proper diet food and rest whenever it is possible. Keywords: Working hours, Divorce, Communication, Night shift, Employees.

Introduction

“Behind Every Successful Man there is a Woman"

The above saying go like this as the women will support more to men in past period but know a day the women are building their own career so the women are not supporting men in their career. The women's are not just playing the role of house maker but she is also going out like men and works and earns the money. As the women are earning money she has become more independent in financial aspects. In past days the women was only looking the children and home and she does not have any other responsibilities but in today's scenario she will manage the responsibilities of family and work so she is more dynamic and courageous to face the challenges posed by the society. The today's women will even support financially for her spouse and she will plan the future of the family and try to bring a good standard of living to the family. Long ago the young men and women will get marry and start to live a happy family as men will work and earn money and the women will take of the family. These two people will decide to become parent and lead a married for years together and women will not have any aware of rules and regulation which are there for the well being of the women but today the women will not follow what the husband says but even she will give the suggestions which may become decision so the women are aware of rules and regulation.

As women has started to work first she was working in the day time to earn little money where it will be helpful to the family but in present situation the women has started to work even in night time which is called as night shift . The night shift has started from the software industries and BPO and call centers where they will do the business even outside the country so to enable the services for 24 hours. The women working in night shift will lead to many problems as there will be an imbalance life style because when the individual has to take rest the

people will work and at day time they will sleep by this the entire life style will change. When married women work in night shift the women will not be able to maintain the family because when the spouse is at home she will go for work and vice versa so there will be arguments between husband and wife, by this there will be difference of opinion and the quarrel begins. The another problem starts when she has children because mother will not be available for the child in the night and even she will not be able to spend the time with the child and concentrate towards the education of the child. She has to hear the words from the family members like in laws or relatives because the old people will not change for the present scenario as there have not experienced about it.

In today's world the working women has to maintain the work and the family so this two factors are inter related because if there is a satisfaction in the family then only the women can concentrate on the work and automatically it increases the performance of the employee and even if there is no any tension in the work then only the women employee can concentrate in the family so there is a link between work and family. The link between work and family will affect the relationship to a greater extent. The structure of work and work roles has direct effects on family roles and family life. The most significant aspects of work which influence the relationship are

The amount of time worked and the location of work

The nature of work schedule The geographic mobility associated with

work Work related travel Type of Work

Another most common problem in the lives of the working women is taking divorce. Divorce rates have seen a phenomenal rise in recent times. The modern day hectic lifestyle is often blamed for this



rise. This is because most people these days are career oriented and couples often don't spend quality time with each other. This communication gap can lead to break ups in no time. Couples should remember that marriage is the coming together of two love filled hearts and it loses its whole meaning when it ends in a divorce. Review of Literature

The review of the literature is to know the problem of the study and to understand the secondary data collected in the field of study and to find out the new problem statement.

A study was conducted on the relationship between wives employment and husbands well being. The results showed that husbands of employed women reported slightly lower levels of job satisfaction, marital adjustment, and quality of life than husbands of housewives. (Parasuraman, 1989)

The study examined the stress and conflict that results from the difficulties in juggling work and family commitments, for working mothers. He examined the government and corporate responses to helping workers with family responsibilities, in Australia and overseas. In the study he discusses cost benefits for companies of providing family supports to workers: gives examples to show the continuing corporate, bureaucratic and community ambivalence on the interconnections between the worlds of work and family life. (Wolcott, 1990)

The problem discussed here is of the dual career couple and the new family life style that emerges. Study found that the primary difficulty was balancing both career and relationship demands. Two important issues related to this difficulty were (a) the problems encountered by women and the importance of male support for their solutions and (b) the issue of time pressure and time management. (Desjardins, 1994)

Study of family revealed that women were likely to carry the double load of meeting the demands of paid and family work and felt more guilt and conflict over not being a full time parent. The author discusses the stresses and benefits of combining work and family roles and examines legislative and employer responses. The author concludes that combing work and family contributed to overall satisfaction with women who worked part time consistently reporting greater satisfaction with their working environment and their family than men working full time or women not in the workforce. (Wolcott, 1995)

The influence on happiness and satisfaction in marriages were found to be autonomy and relatedness. Autonomy refers to spouses perceptions of the extent to which partners encouraged a sense of independence and individuality for each other. Relatedness in the study referred to spouses perceptions of the amount of closeness that their partners provided. The findings of this study did differ for males and females, specifically in that

females found relatedness to be important in determining the standards of their relationship, held by themselves and their husbands, and that no relationship was found between male's views of standards or their interpretation of their wives and relatedness. It was found through this study that autonomy and relatedness were not significantly positively correlated with each other but also with marital adjustment and satisfaction in both males and females. (Rankin, 1997) Statement of the problem

The problem in the study deals with the married women who are working in the night shift which influences on the family relationship and even it creates a difference of opinion with the other family members. The other problem of the working women is about their health hazards and balancing their life towards their work and personal life and sleeping hours and about their diet which has to be maintained in their daily life. The married working women are facing a heavy problem in their family relationship as the relationship is breaking down and majority are divorced and there are living alone. The married women who are working in night shift will also influence on their family culture which affects the relationship with the in-laws of the family. The woman has to face many challenges in the society when she is working, the woman has managed time to her work, husband, and children and to handle the responsibilities in the family so the managing abilities of the women plays a vital role in her life. There will be lot of changes in the life of the married women when she starts working out the family, many problems may arise between husband, children, in-laws etc.The women will be under stress, dissatisfaction towards the family, lack in concentration in the work and she will lose the entertainment with her husband and children. Objectives of the study 1. To study the family relationship of married

women employee working in night shift. 2. To know the mental attitude of married women

employee who is working in night shift towards the family members.

3. To know the health hazards faced by the women working in night shift.

Statistical Tools

The percentage method is used for data analysis as it is used for Comparison between two factors. Sampling Techniques

Random sampling has been used for the purpose of the study so that the sample could be split into different groups based on the convenience of the researcher.



Sample Size The sample size is 50 respondents selected

from the major IT industry where there is a night shift work. The 50 respondents are married women who are working in night shift. Sources of Data Primary Data: Direct contact with the women employees who are working in the night shift and collecting the information by the employees through questionnaire. Secondary Data: Through journals, magazines, text books and website. Limitations of the study The research study can never be devoid of biased responses and prejudices of the respondents.

1. The research study is limited only to the IT industry.

2. The research is bound with the time as there is a change in the industry.

ANALYSIS AND INTERPRETATION Table 1 - SHOWING THE QUALIFICATION OF

THE RESPONDENTS

Qualification No. of Respondents Percentage

Engineer 18 36

MBA 22 44

Degree 10 20

Total 50 100

The above graph shows the education level of the employees. 22 of them have done MBA, 18 of them are from engineer and 10 of them are degree holders.

Table 2 - SHOWS THE WORK EXPERIENCE OF THE RESPONDENTS

Experience No. of Respondents Percentage

1–3 10 20

4–6 20 40

7 - 10 20 40

Total 50 100

The above graph shows the work experience of the employees. 25 of them have 4-6 years of experience, 20 of them have 7- 10 years of experience and finally 5 of them have 1 – 3 years of experience.

Table 3 - SHOWS THE REASON FOR NIGHT SHIFTS

Reason No. of Respondents

Percentage

Nature of Job 15 30

Better Pay Scale 30 60

Working Hours 05 10

Total 50 100

The above graph shows the major reason for the night shift work, so 30 of them work for the reason of better pay package , 20 of them work because of nature of the job and remaining 5 of them have a reason of prefer working hours. Table 4 - PROBLEMS FACED BY THE EMPLOYEE

DUE TO NIGHT SHIFT WORK

Problems No. of Respondents

Percentage

Family Maintenance

23 46

Child Caring 05 10

Health Hazards

22 44

Total 50 100

The above graph shows the problems faced by the respondents. 23 of them will face the problem of family maintenance, 22 of them face the health problem and 5 of them face the problem of caring the children. The family maintenance and health hazards are almost same this shows that most of them will face both the problems.

Table 5 - HEALTH PROBLEMS FACED BY THE WOMEN WHO WORK IN NIGHT SHIFT

WORKING

Health Problems No. of Respondents

Percentage

Backache 10 20

Continual Tiredness

01 02

Sleeping Difficulties

30 60

Frequent cold and fever

01 02

High Blood Pressure

04 08

Digestive Disorder

01 02

Respiratory Illness

03 06

Total 50 100

The above graph states the disorders of the women who is working in night shift. The major disorder is 60% of sleeping difficulties, 20% of backache, 8% of high blood pressure, 2% of continual tiredness and digestive disorder, 6% of respiratory illness and 2% of frequent cold and fever.

TABLE 6 - NIGHT SHIFT WORK WILL AFFECT THE FAMILY RELATIONSHIP OR NOT

H0: The night shift work will affect the family relationship of married women employees.

H1: The night shift work will not affect the family relationship of married women employees.



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gly

Ag

ree

Ag

ree

Neu

tra

l

Dis

ag

ree

Str

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gly

Dis

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ree

No. of Respondents 4 11 9 8 18

X2 = (O – E) 2 E X2 = (1.6) + (0.1) + (0.1) + (0.4) + (1.6) X2 = 3.8 Degree of Freedom = (v-1) = (5-1) = 4 At 5% level of significance = X2 0.05 = 9.49 The X2 calculated at 5% significance is less than table value so the null hypothesis is accepted and alternative hypothesis is rejected. Findings of the study

This research has studied about the effects of night shift on the families of the married working women. This study is conducted in the IT industry and below is the findings of the study. The married women working in the night shift

are of middle age ranging from 25 - 30 years and most of them are having 4 years of marriage experience.

The study says that the working hours are limited to 8 hours and more than that and even most of will not travel for more than 2 hours for their jobs so the employees will not feel more tiredness in the work.

Almost all the IT firms will provide the best and safety transport facility to the employees who work in night shift. But most of women employees will not prefer the night shift because the hours are not preferred for working.

The most of the IT firms will not provided the crèche for the children so the married women will face the problem of looking after the children.

Most of the married women employees are living in the joint family and even they prefer joint family because they feel that the responsibilities are shared and eve someone will be there to take of children and it will be safe.

Recommendations of the study

These recommendations are made in the light of the findings of the study. These recommendations can be applied in the IT firms to get better performance from the employees and if employees understand the recommendations then there can manage the family relationships in a better way. The married women employees can prefer the

night shift only if their can plan well in advance

about the commitments of the family and even the work.

Most of the employees have taken the counseling this can be avoided if they can avoid the unnecessary stress and maintain the balance mind.

The health hazards can be avoided to some extent if the women employees take the proper diet food and rest whenever it is possible.

The 30% of the women employees agree with the divorce decision by giving the reason of their ego will be hurt if someone speaks about them. This should be avoided because if you are in ego status then it is not possible to achieve anything so we have to build a nature of harmony and adjustment.

The IT firms have to provide the crèche because 15% of women employees are leaving in the nuclear family so there cannot concentrate on the work if the child is not secured.

Conclusion

After doing the study I can conclude that the married women employees who are working in the night shift face many problems from family, society and even health problem. The night shift has affected a lot in maintaining the family relationship. The night shift employees face severe health problems which will destroy the capability of the individual to work. I have observed that the most of the couples are going for divorce decision because of lack of mutual understanding between them. The couples are even avoiding children because nobody will be there to take care.

I can tell that there is no safety for women an employee working in night shift so the married women employees has to get more safety while there are working in night shift and the law should provide full support to the women employees when there are in problem. The women’s has to get more support from the society and family members to work and to become more dynamic in the society. References 1. Article Base, 2003, article on how to stop divorce, published

in Creative Commons 2. Article Base, 2003, article on Link between work and family,

published in Creative Commons Desjardins 1994 , Journal article one couple, two careers, 105 – 111

3. Parasuraman, 1989, Work and family variables as mediators of the relationship between wives employment and husbands well being. Academy of management journal, 185 – 201

4. Rankin, 1997, journal of marital and family therapy, 175 – 190

5. Ray, 1988 Marital satisfaction in dual career couples, Journal of independent social work, 39 – 55

6. Sociologist Lillian Rubin’s, 1996, article on women working in night shift, published in www.realsocialdynamics.cor



RISK-RETURN ANALYSIS OF SELECTED NSE MID-CAP COMPANIES

*Arun Kumar **Chippy Chandran

_______________________________________________________________________________________________________ *Asst. Prof., Achariya school of business and technology, Puducherry. **MBA-2 yr, Achariya school of business and technology. Puducherry.

Abstract When deciding on an investment, it is important to understand the expected risk and likely returns from the investment and

determine how this fits with your personal situation and financial goals. It has been said that there is no such thing as a free lunch. When it comes to investments, the price that we pay for growth is “risk”.The following article will hopefully expand on the concept of investment risk. Investments are expected to provide a return but this return will also come with a certain level of risk. Risk means different things to different people and typically it is referred to as the uncertainty of the return or the risk of losing your capital. Key Words :- Risk return, Stock and Share markets, Portfolio, Market Return, Stock Return

Introduction Risk and Return Analysis The relationship between risk and return is a fundamental concept in finance theory, and is one of the most important concepts for investors to understand. A widely used definition of investment risk, both in theory and practice, is the uncertainty that an investment will earn its expected rate of return.[1] ("return" and "rate of return" are used interchangeably in finance literature). A rational investor will not seek to take more risk without the expectation of a higher return. Since the early 1950s, an enormous amount of theoretical and empirical research has been done to characterize and quantify the relationship between risk and return. Portfolio Theory, developed initially by Harry Markowitz in the early 1950s, was the first serious theoretical attempt to quantify the relationship between risk and return (Portfolio Theory often is referred to as Modern Portfolio Theory or MPT). Portfolio theory characterizes risk as the uncertainty of returns, and uses standard statistical techniques to quantify the relationship between risk and return. These techniques include the application of statistical measures such as variance and standard deviation to quantify the uncertainty of returns. The relationship between risk and return

When deciding on an investment, it is important to understand the expected risk and likely returns from the investment and determine how this fits with your personal situation and financial goals. It has been said that there is no such thing as a free lunch. When it comes to investments, the price that we pay for growth is “risk”. The following article will hopefully expand on the concept of investment risk. Investments are expected to provide a return but this return will also come with a certain level of risk. Risk means different things to different people and typically it is referred to as the uncertainty of the return or the risk of losing your capital. The relationship between risk and return can be demonstrated in the graph below.

In general, the greater the risk of an investment, the greater is the possibility of higher returns. Just as risk means higher potential returns, it also may mean higher potential losses. As a general rule, the higher the potential return from an investment, the greater is the investment risk and the probability of experiencing capital losses The first step is to understand the relationship between risk and return and then determine the level of risk and return that you are comfortable with. You should also understand the level of risk you need to accept to generate the likely returns required to meet your financial goals. Mid Cap Companies

Bombay Stock Exchange (BSE) introduced new index called BSE MID-Cap index to track the performance of companies with relatively mid-size market capitalization. BSE-500 Index - represents more than 93% of market cap of the listed companies in Bombay Stock Exchange (BSE). Companies with large market capitalization bias the movement of BSE-500 index. This created a need to create a separate indicator to capture the trend in companies with mid-size market capitalization. Over the years, BSE Mid-Cap have proven to be a great use to the investing community. BSE Mid-Cap index is launched in April 2005 and uses base year of 2002-2003 for index calculations with base value of 1000. It is based on free-float methodology. The index is constructed on 80%-15%-5% method whereby companies aggregating 98.5% of average market capitalization are categorized under

http://www.bogleheads.org/wiki/Risk_and_return#cite_note-1

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large, mid and small cap segment respectively. BSE Mid-Cap tracks the performance of stocks between 80 & 95% of aggregate market capitalization. The total number of companies in the index is variable. BSE Mid-Cap index is highly correlated with BSE-500 index. Companies in this index are reviewed on a quarterly basis. Stock Market and Stock Exchange A stock market or equity market is the aggregation of buyers and sellers (a loose network of economic transactions, not a physical facility or discrete entity) of stocks(shares); these are securities listed on a stock exchange as well as those only traded privately. A stock exchange is a form of exchange which provides services for stock brokers and traders to trade stocks, bonds, and other securities. Stock exchanges also provide facilities for issue and redemption of securities and other financial instruments, and capital events including the payment of income and dividends. Securities traded on a stock exchange include stock issued by companies, unit trusts, derivatives, pooled investment products and bonds. Stock exchanges often function as "continuous auction" markets, with buyers and sellers consummating transactions at a central location, such as the floor of the exchange.

Stock Exchange (also called Stock Market or Share Market) is one important constituent of capital market. Stock Exchange is an organized market for the purchase and sale of industrial and financial security. It is convenient place where trading in securities is conducted in systematic manner i.e. as per certain rules and regulations. It performs various functions and offers useful services to investors and borrowing companies. It is an investment intermediary and facilitates economic and industrial development of a country

Stock exchange is an organized market for buying and selling corporate and other securities. Here, securities are purchased and sold out as per certain well-defined rules and regulations. It provides a convenient and secured mechanism or platform for transactions in different securities. Such securities include shares and debentures issued by public companies which are duly listed at the stock exchange, and bonds and debentures issued by government, public

corporations and municipal and port trust bodies. Stock exchanges are indispensable for the smooth and orderly functioning of corporate sector in a free market economy. A stock exchange need not be treated as a place for speculation or a gambling den. It should act as a place for safe and profitable investment, for this, effective control on the working of stock exchange is necessary. This will avoid misuse of this platform for excessive speculation, scams and

other undesirable and anti-social activities. London stock exchange (LSE) is the oldest stock exchange in the world. While Bombay stock exchange (BSE) is the oldest in India. Similar Stock exchanges exist and operate in large majority of countries of the world. Review of Literature A lot of studies have been carried out on the risk and return characteristics in different markets (frontier, emerging and developed).Examined the risk characteristics of the Nigerian quoted firms. He found that the covariance of most of the firms with the market portfolio is positive as that the returns on the firms’ shares tend to move in the same direction with return on the marked portfolio. The economic implication of the majority of firms in a portfolio having positive beta is that there is limited scope for portfolio diversification. Separation of ownership and control in the modern corporation creates a condition whereby the interests of owner and manager may diverge and many of the checks that once operated to limit the use of power have disappeared. The agency theory, formalized by Jensen and Meckling (1976), posits that the agency costs of deviation from value maximization increase as managers’ stakes decrease and ownership becomes more disperse. There is an ongoing debate about the apparent weak or negative relation between risk (conditional variance) and expected returns in the aggregate stock market. We develop and estimate anempirical model based on the ICAPM that separately identifies the two components of expected returns–the risk component and the component due to the desire to hedge changes in investment opportunities. The estimated coefficient of relative risk aversion is positive, statistically significant, and reasonable in magnitude. However, expected returns are driven primarily by the hedge component. The omission of this component is partly responsible for the existing contradictory results. In this paper we analyze investments in human capital assets in a way which is standard for financial assets, but not (yet) for human capital assets. We study mean-variance plots of human capital assets. We compare the properties of human capital returns using a performance measure and by using tests for mean-variance spanning. A risk-return trade-off is revealed, which is not only related to the length of education but also to the type of education. We identify a range of educations that are efficient in terms of investment goods, and a range of educations that are inefficient, and may be chosen for consumption purposes. Empirical evidence for the risk-return-volume relationship in the Ýstanbul Stock Exchange (ISE) for the period of January 2,1992 - May 29, 1998. The

http://en.wikipedia.org/wiki/Stock

http://en.wikipedia.org/wiki/Share_(finance)

http://en.wikipedia.org/wiki/Security_(finance)

http://en.wikipedia.org/wiki/Stock_exchange

http://en.wikipedia.org/wiki/Exchange_(organized_market)

http://en.wikipedia.org/wiki/Brokerage_firm

http://en.wikipedia.org/wiki/Trader_(finance)


http://en.wikipedia.org/wiki/Bond_(finance)

http://en.wikipedia.org/wiki/Security_(finance)

http://en.wikipedia.org/wiki/Dividend


http://en.wikipedia.org/wiki/Unit_trust

http://en.wikipedia.org/wiki/Derivative_(finance)

http://en.wikipedia.org/wiki/Bond_(finance)

http://en.wikipedia.org/wiki/Open_outcry



Generalised Autoregressive Conditional Heteroscedasticity-in-Mean (GARCH-M) specification reveals that daily return volatility is time-varying and highly persistent. In addition, return is positively associated with risk, i.e. the estimate of the conditional standard deviation. Contemporaneous changes in volume have a positive effect on returns. The previous day’s change in volume affects positively conditional volatility of returns. Existing empirical literature on the risk-return relation uses a relatively small amount of conditioning information to model the conditional mean and conditional volatility of excess stock market returns. We use dynamic factor analysis for large datasets to summarize a large amount of economic information by few estimated factors, and find that three new factors - termed “volatility,” “risk premium,” and “real” factors – contain important information about one-quarter-ahead excess returns and volatility not contained in commonly used predictor variables. Our specifications predict 16-20 % of the onequarter- ahead variation in excess stock market returns, and exhibit stable and statistically significant out-of-sample forecasting power. We also find a positive conditional riskreturn correlation. Need of the study To find the expected rate of return and standard

deviation of the selected companies. To know the price fluctuation of the shares in

the stock market for a particular period. To know the shares yielding highest return from

the companies selected for the study. To give an insight to the investor who are

looking for low risk and better return from the above analysis.

Objectives of the study

To analyze the performance of selected stocks through liquidity and profitability.

To find the volatility of companies. To evaluate the consistency of stocks for the past

5 years. To measure the risk and return relationship

between selected price movements. To recommend suggestions to the investors about

the stock through Beta. Research Methodology

Research in common parlance refers to a search for knowledge. Research simply put in and endeavour to discover answers to the problem through the application of scientific method to the knowledge universe. Research Design

The research design undertaken for the study is analytical in nature. The research has to use fact or

information already available, and analyze these to make critical evaluation of the material. Total population size

Total number of NSE NIFTY Mid-Cap companies 100.

Sample Size Sample size is 20 companies in 5 sectors by NSE.

Sampling Procedure The stocks were selected randomly from ‘A’ group of scripts. A random sample is a sample selected in such a way that every item in the population has an equal chance of being included in selected sectors.

AVERAGE RETURN OF THE SELECTED NIFTY MID-CAP COMPANIES

Interpretation

From the above chart, it indicates the stock returns of selected Mid Cap companies in NSE. It is an average return over the past five years for the period of April 2009 to March 2014. In this study, most of the stocks showed a positive return except Britannia. Eicher Motors Ltd showed a high return of 0.291 and Britannia showed a less return of 0.000 over the period. STANDARD DEVIATION OF SELECTED NSE STOCKS

Interpretation

From the above chart, it represents the standard deviation of selected NFE listed companies over the past 5 years for the period of April 2009 to

0.000

0.100

0.200

0.300

0.400

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Aurobind…

Britannia…

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Stockreturn

0.0000.1000.2000.3000.4000.500 Standard Deviation

Sta…



March 2014. Autobindo Pharma Limited and Torrent Power Limited shows a high risk of standard deviation of 0.437 and 0.316 respectively which indicates that the stock possess a high risk. Hindustan Petroleum Corporation Limited shows a very low risk of 0.065. CORRELATION VALUES OF SELECTED NSE STOCKS

Interpretation A coefficient of correlation is a mathematical measure of how much one No. (such as a share price) can expect to be influenced by changes in another (such as an index). It is closely related to covariance. A correlation coefficient of one means that the two numbers are perfectly correlated: If one grows so does the other, and the change in one is a multiple of the change in the others. In this study nearly all the company’s stock has a positive value as well as those values are less than one or positively correlated. The closure the correlation coefficient is to 0 the greater the uncertainty, and low correlation coefficient means that the relationship is not certain enough to be useful. The Ashok Leyland Limited has the high correlation value 0.985 which indicate that the stock movement is correlated with market. Findings of the study: For the period April 2009 to March 2014, all the

selected NIFTY Mid-Cap companies showed positive return.

In this study, most of the stocks showed a positive return except Britannia. Eicher Motors Ltd showed a high return of 0.291 and Britannia showed a less return of 0.000 over the period.

Autobindo Pharma Limited and Torrent Power Limited shows a high risk of standard deviation of 0.437 and 0.316 respectively which indicates that the stock possess a high risk.

Hindustan Petroleum Corporation Limited shows a very low risk of 0.065.

The Ashok Leyland Limited has the high correlation value 0.985 which indicate that the stock movement is correlated with market.

Britannia Industries Ltd.(-0.009) And Divi’s Laboratories Ltd.(-0.367) Where the Beta value is negative. The stock with us negative beta indicate that there is inverse relationship.

Allahabad Bank(2.502) Autobindo Pharma Ltd.(3.416) And Torrent Power Limited (2.85)are having the Beta value very high which indicate that the stocks have a high volatility and fluctuate more than the market movement.

Ashok Leyland ltd showing most strong correlation between returns of the portfolio and benchmark index of 97% and Britannia industries ltd showing least correlation 5% for the period April 2009 to March 2014.

Suggestions:

The computed values of beta shows that FMCG are the most defensive sectors whereas banking and steel sectors are the most aggressive sectors among selected NSE selected companies.

If investors have a desire for bearing risk, then he/she can go for the companies with highest risk. They can invest on the shares of Aurobindo Pharma, Alahabad Bank, Torrent power Ltd.

It is better to invest in Banking, Pharma and Energy sectors for safety and better return in the current market situation.

It is to suggest investors to invest in long term process for avoiding risk.

It is advisable for investors to know when they hold, sell or buy the shares.

It is recommended that buying shares at low price sell shares when it reaches some maximum point and hold the shares where there is high volatility in the market.

As the world economy is influenced by US economy, the worst scenario of US economy is influencing the other countries Stock Market.

When markets are sliding down steeply, the investors will not be protected against the risk of investment.

Always it is felt that market positions never stays for a long time. In this opinion bullish and bearish markets end after some time. Therefore one can invest the time of bearish and soon after they reach bullish trend they can sell them off.

It is advisable for the investors who seek risk may invest in Banking, Pharma and Energy sectors because the government has planned to develop the economy through the best infrastructure projects which requires essential source of raw materials. Infrastructure development is essential for developing economy like India.

Conclusion:

As a whole the stock market is sometime highly volatile. Cyclical sectors like Banking,

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1.000

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Britannia…

Divi's…

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Correlation



Pharmaceutical and Power sectors are having high risk high return. The non cyclical sector FMCG having low risk and low return. The cyclical sectors are those sectors which generally move with the performance of the entire economy and the products of which are highly price elastic and income.

Investors can find the best use of the beta ratio in short-term decision-making, where price volatility is important. If you are planning to buy and sell within a short period, beta is a good measure of risk. However, as a single predictor of risk for a long-term investor, the beta has too many flaws.

Careful consideration of a company’s fundamentals will give you a much better picture of the potential long-term risk. The stocks may not be a safe but for a risk adverse investor and for a risk taker the reward may he heavy in the short run, than in the long run.

India, the developing country desires to maximize the earning and to move the growth path, it is concluded to invest more infrastructure projects are advisable. It will help us to reap benefits in long run. Reference 1. Simon H. Kwan is a vice president at the Federal Reserve

Bank of San Francisco. [email protected],, FRBNY Economic Policy Review / September 2004

2. Robert F. Whitelaw, Uncovering the Risk–Return Relation in the Stock Market, January 2001 Revised April 2005

3. Charlotte Christiansen, The Risk-Return Trade-Off in Human Capital Investment, Discussion Paper No. 1962 February 2006

4. F,erhan SALMAN, Risk-return-volume relationship in an emerging stock market, period of January 2,1992 - May 29, 1998.

5. Sydney C. Ludvigsona*, Serena Ng , The empirical risk-return relation: a factor analysis approach, Journal of Financial Economics 83 (2007) 171-222

mailto:[email protected]



IMPACT OF MICRO CREDIT ON SMALL BUSINESS UNITS OF SELF HELP GROUPS (SHGs) IN PUDHUCHERRY REGION

*Dr.R.Elangovan **Mr.K.Veeramani

_______________________________________________________________________________________________________ * Professor, Commerce Wing, DDE, Annamalai University, Annamalai Nagar, 608 002 ** Doctoral Research Scholar, Department of Commerce, Annamalai University, Annamalai Nagar, 608 002

Abstract

The Self Help Groups (SHGs) are created small and homogeneous groups to reap economic benefits for members out of mutual savings, solidarity and joint responsibility through peer monitoring. The goal of Self help groups (SHGs) is to become effective agents to change. They serve as a platform to establish the banking with the poor which is reliable, accountable and a profitable business. SHGs also enables livelihood opportunities for village as well as urban people through micro credit with the existing banks in the area. The concluded that, the SHGs generate positive impact on the rural and urban economy through micro credit and enhancing the rural and urban income of those participant household, in pudhucherry region.

Introduction The Self Help Groups (SHGs) are creating small and homogeneous groups to reap economic benefits for members out of mutual savings, solidarity and joint responsibility through peer monitoring. The goal of Self help groups (SHGs) is to become effective agents to change. They serve as a platform to establish the banking with the poor which is reliable, accountable and a profitable business. SHG also enables livelihood opportunities for village as well as urban people through micro credit with the existing banks in the area. Need for the study In India, Micro finance and Self Help Groups (SHGs) intervention have brought tremendous change in the life of women at the grass root level by empowering women. The first organized initiative in this regard as taken in Gujarat in 1954 and was given a more systematized structure in 1972, when Self Employed Women’s Association (SEWA) was formed. Major experiments in small group formation (SHGs) and its linkage to the bank for credit delivery at the local level were initiated in Tamil Nadu and Kerala about two decades back. These initiatives gave a firm footing to SHG movement in these States. Though there are 2637 SHGs are functioning under the scheme of Swarnjayanti Gram Swarozgar Yojana (SGSY) during the period from 1999 to 20131 in Pudhucherry Union Territory. Most of the SHGs are managed by women, yet the information about empowerment especially from the rural area is lacking. These groups are availing the loan facility from their group, banks and other NGOs. Thus this study was planned with the objective to assess members perception about the role of micro credit in improving their living standard in rural and urban areas of Pudhucherry region. Objectives of the Study 1. To examine the pre and post micro credit to

SGHs in pudhucherry. 2. To find out the impact of micro credit on small

business units in SHGs.

1 Department of Swarnjayanti Gram Swarozgar Yojana (SGSY),

Directorate of Rural and Development Agency in Pudhucherry

Region Report 2013.

Methodology

The present study is based on both primary and secondary data. The primary data were collected through interview schedule method. The secondary data regarding to SHGs were collected from the Directorate of Rural and Development Agency in Pudhucherry. Sampling

Pudhucherry union territory having six blocks. Among the six blocks, two blocks of Ariyankuppam and Villiyanur only selected by the researcher, for this study. On the basis of the record of DRDA, 1625 SHGs are functioning in that area. The researcher selected 150 respondents from the 50 SHGs in the two blocks. These members are contacted at the meeting place of bankers meeting and NGO’s meeting at random sampling methods. Study Area The de facto transfer of the territory of Pondicherry, consisting of the former French Settlements of Pondicherry, Karaikal, Mahe and Yanam, to the Indian union was effect on 1 November 1954. The territory is divided into 16 communes, out of which 8 in Pudhucherry settlements, 6 in Karaikal and one each in Mahe and Yanam. There are 388 villages in the territory. These settlements are small pockets isolated from each other. Their total area is 479.2sq.km. This union territory is smaller than that of other union territories in the country, except Laccadives, Minicoy and Amindivi Islands. Pudhucherry town is the headquarters of the Administration. Demographic Profile Demographic factors such as sex, age, marital status, education status, and size of the family, were analyzed in order to know the social background of the respondents. This information would help to relate their social position with their awareness and utilization of micro credit among the members of the SHGs.



TABLE 1 Demographic Profile

Gender No. of Respondents

Percentage

Female 104 69.3

Male 46 30.7

Total 150 100

Age

Below 25 years

31 20.67

26 to 35 years 27 18.00

36 to 50 years 73 48.67

Above 51 years

19 12.66

Total 150 100

Marital Status

Unmarried 18 12.00

Married 132 88.00

Total 150 100

Education Status

Illiterate 14 9.33

Primary 21 14.00

High School 85 56.67

Higher Secondary

30 20.00

Total 150 100

Type of Family

Nuclear 89 59.33

Joint 43 28.67

Individual 18 12.00

Total 150 100

Source: Primary Data Table-1, clearly gives the demographic

profile of the respondents. From the table, it is found that female respondents (69.3 respondents) are more than male respondents (30.7 per cent). It is quite natural, because female members are voluntarily involved in the programme of SHGs.. Age wise distribution of respondents showed that 73 respondents belong the middle age group (36 to 50 years) than young (20.67 per cent) and old (12.66 per cent). Among the 150 respondents, 88 per cent respondents are married and 12 per cent only unmarried. Most of the married male and female respondents are voluntarily involved in the informal new business as well as expand the existing business. In the group of respondents, 9.33 per cent of the respondents are illiterate, 14 per cent have primary school level education, 56.67 per cent and 20 per cent have high school and higher secondary school level of education respectively. In this study 59.33 per cent of the member belong to nuclear family, only 28.67 per

cent belong joint family, and 12 per cent of the members are individual. Occupation of the Respondents

TABLE 2 Occupation of the Respondents

Occupation Pre Micro Credit

Post Micro Credit

No Occupation 46 (30.7) 0 (0.0)

Idly vendors 13 (8.7) 21 (14.0)

Flower vendors 12 (8.0) 14 (9.3)

Selling of plastic goods

8 (5.3) 21 (14.0)

Tailoring 8 (5.3) 14 (9.3)

Petty shop 12 (8.0) 16 (10.8)

Fruits vendors 20 (13.3) 20 (13.3)

Vegetable vendors 13 (8.7) 15 (10.0)

Readymade cloth vendors

9 (6.0) 15 (10.0)

Fish vendors 9 (6.0) 14 (9.3)

Total 150 (100) 150 (100)

Source: Primary Data

Calculated Chi-square value

Degrees of freedom

P Value

Pre M/C

Post M/C

Pre M/C

Post M/C

118.98 3.970 9 8 0.0000 (5%)

Source: Computed Primary Data Table 2 describes the occupation of the

respondents in the pre and post micro credit. Among the 150 respondents, 46 respondents are not engaged any business at the time og joining of SHGs. After involvement of this programme, out of 46 respondents, 8 respondents are choosen the business of idly vendors, two respondents are selected selling of flower, 13 respondents one selected the selling of plastic commodities, 6 respondents are engaging in tailoring, four members are petty shop holders, two members are selling vegetables, six member are doing readymade cloth and five respondents select the fish selling. It is evident that, the SGSY scheme also motivate to promote new groups as well as increase the new members in the existing groups.

The pre micro credit degree of freedom is 9 at 5% level of significance the table value is 16.92 the values is lesser than the calculated values of 118.98 the null hypothesis is rejected. The post micro credit degree of freedom is 8 5% level of significance, the table value of 15.507 the value is greater than calculated value of 3.97, the null hypothesis accepted Income of the Respondents

TABLE - 3 Income of the Respondents

Monthly Income Pre Micro Credit

Post Micro Credit

No Income 46 (30.7) 0 (0.0)



Below Rs. 1500 33 (22.0) 68 (45.3)

Rs. 1501-3000 41 (27.3) 42 (28.0)

Rs. 3001 – 4500 22 (14.7) 25 (16.7)

Above Rs. 4501 8 (5.3) 15 (10.0)

Total 150 (100) 150 (100)


Calculated Chi-square value

Degrees of freedom

P Value

Pre M/C

Post M/C

Pre M/C

Post M/C

24.954 8.574 4 3 0.0000 (5%)

Source: Computed Primary Data Table 3 exhibits the income of the selected

respondents. As mentioned earlier the 46 respondents are unemployed and there is no way to income generate of their lives. After availing the micro credit, thirty five members are earning a sum amount of Rs. 1500 per month, seven respondents are getting monthly income more than Rs. 4500. It is proved that unemployed male and female members of SHGs are earning sum amount for their family expenditure. But majority of the unemployed (35 respondents) respondents are getting only up to Rs. 1500 per month. Some training and awareness programme also helps to enhance their efficiency in their business.

The pre micro credit degree of freedom is 4 at 5 per cent level of significance the table values is 9.488 and post micro credit degree of freedom is 3 at 5 per cent level of significance, the table values is 7.815 both of the values is lesser than calculated value of which is 24.954 and 8.574 the null hypothesis rejected and accept the alternative hypothesis. Increased Income:

One of the primary benefits of participation in a SHG is the opportunities to increased income regularly. Table 4 reveals that, 70 respondents are agree to increase the income their family after joining the SHGs. On the other hand, 13 respondents are disagree in that opinion. Growth of Business:

The main aim of the entrepreneurs is to improve their business units at the cheaper rate of interest. Among the 150 respondents, 62 respondents only agree to improve their business with the help of SHGs and eleven members are disagree for the opinion of the business growth. Food Consumption:

The basic problems in the rural poor is low level of standard of living especially in developing countries like India. After intervention of the SHGs and other government scheme; the standard of living of the rural poor has been increased and they can also get nutritious food for their lives. Out of 150

respondents, 81 (54.0 per cent) respondents are agree for the improvement of standard of living particularly in the food consumption pattern is good. Eleven respondents only not accepted for that benefits. Family Saving:

SHGs is one of the improvement tool for the creation of saving habits. In this study 72 respondents are stand in the neutral of the family saving. Thatched House to Tiled:

Most of the SHGs are benefited under the scheme of SGSY in pudhucherry region. In this study, 41 respondents are convert their thatched house to tiled house after joining the SHGs, 37 respondents and 9 respondents are disagree and strongly disagree of that opinion. Health Service: On the basis of the opinion of the selected respondents, majority (76 per cent) of the respondents are accepted to improve the health conditions of the members and their family. Sanitation Facilities:

The sanitation facility is an important to the wealth of the rural and urban people. In this study, nearly 77 (51.4 per cent) respondents are opined that the sanitation facilities was improved with the help of income generated through SHGs. Children’s Education: Among the 150 respondents, 132 respondents only family holders of this study. Out of which, 75 (56.82 per cent) respondents are highly satisfactory in their children’s education. Conclusion

SHGs are powerful instruments in eradicating the poverty and generating income for rural poor. Through, the SHGs generate positive impact on the rural economy through micro credit and enhancing the rural income of those participant household, in Pudhucherry region. In Pondicherry region there is no specific rule and regulations for Non Government Organizations activities therefore the government should make appropriate policy to monitor them and helps the urban slum women to up-lift their socio-economic conditions through Micro-Credit facility with subsidy to those who are below poverty line. In a nutshell, Self Help Groups help the urban members are able to improve the socio-economic conditions, standard of living, women literacy level, participation of social awareness programs, participation of training programs, starting of new business enterprise/income generating activities, offer employment opportunities to neighbors. References 1. H.Ramakrishna, et al “ Performance of Self Help Group-

Bank Linkage Programme (SBLP) in India – an Analytical Study” Tactful Management Research Journal Vol, 1, Issue. 10, July 2013 ISSN: 2319-7943.



A STUDY ON WORKING CAPITAL MANAGEMENT OF BHARAT HEAVY ELECTRICALS LIMITED

*Dr.R.Saravanavel _______________________________________________________________________________________________________ *Assistant Professor, Department of Commerce, (A.V.V.M Sri Pushpam College (Autonomous), Poondi, Thanjavur District

Abstract In earlier days, very few undertook a same business. The competition was not so high in earlier days. Customers have to buy the

products without bargaining, because they do not have any other sellers to buy the same product. But now the same scenario has changed. There are many sellers to sell the same product. After the Globalization and Liberalization, many foreign companies export their products to India. This has lead Indian businessmen to face a lot of problems in Indian market. Bharat Heavy Electricals Limited (BHEL) is one of the Navarathnas in India. It has customer’s world wide. The firm has many competitors around the world. The main competitors for the BHEL across the globe are ABB, General Electric’s and Siemens. Thus heavy machine manufacturing companies create a real threat to the BHEL. To beat all these competitors and to become a market leader, the BHEL must follow proper financial systems. Keywords: Liquidity, Components of Working Capital, Trend Analysis, Correlation and Regression Analysis Introduction Bharat Heavy Electricals Limited (BHEL) is one of the Navarathnas in India. It has customer’s worldwide. The firm has many competitors around the world. The main competitors for the BHEL across the globe are ABB, General Electric’s and Siemens. Thus heavy machine manufacturing companies create a real threat to the BHEL. ABB was started during the nineteenth century and maintains records of innovation and technological leadership in many industries. ABB in recent years has gone over from large- scale solutions to alternative energy and the advanced products and technologies in power & automation. ABB power technologies serve electric, gas and water utilities. General Electric’s consumer and industrial business was created in January 2004 when General Electric’s Consumer products merged with General Electric’s industrial systems. With more than a century of experience in inventing cutting-edge products and services, General Electric’s Consumer and industrial system strives to make life better, more convenient and more efficient for consumers as well as for commercial and industrial customers.

Working capital plays an important role in firm's growth and profitability and is tightly interlinked with the concept of liquidity. This liquidity-profitability relationship is associated with the maintenance of the proper level of working capital. Liquidity and profitability are the two important and vital aspects of corporate business life. No firm can survive without liquidity. Without making any profit a firm may be considered as sick but one having no liquidity may soon meet its downfall and ultimately die. As a matter of fact, liquidity is a pre-requisite for the survival of a business firm. Thus, the liquidity management has become a basic and broad aspect of judging the performance of a corporate entity To beat all these competitors and to become a market leader, the BHEL must follow proper financial systems. Existing literature survey

Mukhopadhyay (2004) conducted a study on working capital management in heavy engineering firms to investigate into the effectiveness of working capital management of an organization with particular reference to its short term liquidity and solvency and its impact on commercial operations of that organization. Eljelly (2004) examines the relationship between profitability and liquidity, as measured by current ratio and cash gap (cash conversion cycle) on a sample of joint stock companies in Saudi Arabia. The study found significant negative relationship between the firm's profitability and its liquidity level, as measured by the current ratio.

Singh and Pandey (2008) suggested that, for the successful working of any business organization, fixed and current assets play a vital role, and that the management of working capital is essential as it has a direct impact on profitability and liquidity. They studied the working capital components and found a significant impact of working capital management on profitability for Hindalco Industries Limited. Chakraborty (2008) studied the relationship between working capital and profitability of Indian pharmaceutical companies. His study suggested that there were two distinct schools of thought on this issue: according to one school of thought, working capital is not a factor of improving profitability and there may be a negative relationship between them, while the other school of thought argues that investment in working capital plays a vital role to improve corporate profitability, and unless there is a minimum level of investment of working capital, output and sales cannot be maintained – in fact, the inadequacy of working capital would keep fixed asset inoperative.

Bhunia and Brahma (2011) conducted a study to examine and evaluate the importance of liquidity management on profitability as a factor accountable for poor financial performance in the private sector steel Industry in India. Objectives of the study

The main objective of the study is to examine and evaluate the overall efficiency of the management



of working capital in terms of liquidity trends of the selected company. This study focuses how the liquidity management affects the profitability of the selected company under study. More specifically it seeks to dwell upon mainly the following issues:

i) To analyze the amount tied-up in various components of working capital and to understand the overall quantum of liquidity maintained by the selected company under study.

ii) To study the indices and trends of working capital, current assets (CA) and current liabilities (CL) as well as test of competency of the working capital.

iii) To observe the different patterns of liquidity position and area of weakness if any, of the selected company under study.

iv) To measure the closeness of association between liquidity and profitability by computing Pearson's simple correlation co-efficient and also to test the significance of such correlation co-efficient.

v) To assess the joint effect of the selected measures of liquidity management on the profitability of the selected company by applying multiple correlation and multiple regression technique and to test the significance of the multiple correlation coefficients and the partial regression coefficients.

vi) To offer necessary suggestions to improve the efficiency of liquidity management in BHEL. Data collection and method of the study

This study is based on secondary data. The data required for this study have been collected from the published annual reports of Bharat Heavy Electricals Ltd. (BHEL) and also from the public enterprise survey reports published by the Ministry of Heavy Industries & Public Enterprises, Govt. of India. The study covered a period of eleven years starting from 1999–2000 to 2009– 2010. This study covers mainly the following aspects of the Liquidity Management (i) Components of Working Capital, (ii) Trends of Working Capital, (iii) Trends of Current Assets (CA) and Current Liabilities (CL) with their indices, (iv) Financing of Working Capital, (v) Impact of liquidity management on Profitability. In order to assess the relationship between liquidity and profitability the ratios which have been applied for highlighting the efficiency of liquidity management are Current Ratio (CR), Quick Ratio (QR), Working Capital Turnover Ratio (WCTR), Inventory Turnover Ratio (ITR), Debtors Turnover Ratio (DTR), Cash Turnover Ratio (CTR), Working Capital to Total Assets Ratio (WCTAR) & Debt-Equity Ratio (DER) and the measure of profitability which has been

selected is Return on Capital Employed (ROCE). For the purpose of establishing definite relationships between selected ratios relating to liquidity management and profitability ratio, some statistical techniques like, Arithmetic Mean, Trend Analysis, Pearson's simple correlation analysis,Multiple Correlation and Regression analysis and Multiple Coefficient of Determination have been applied. In addition, some statistical tests i.e. 't' test, 'F' test, Chi-square (÷2) test and Durbin-Watson test have been applied at the appropriate places. All statistical computations have been done through SPSS 10.2 version.

Findings of the study Analysis of Different Components of Working Capital

The various components of current assets and current liabilities along with annual growth rate of net working capital have been presented inTable-1. It is highlighted from Table- 1 that the total of current assets (i.e. gross working capital) registered an upward trend throughout the study period. The amount of gross working capital was Rs. 700238 lakh in the year 2002-2003 which increased continuously and reached up to Rs. 4271727 lakh in the year 2012-13 indicating 610.04% increase over the first year. The amount of cash and bank balance also increased continuously (excepting in 2000-01) from Rs. 36060 lakh in 2002-2003 to Rs. 1031467 lakh in 2008-09 which shows that it was simply 5.15% (i.e. Rs. 36060 out of Rs.700238) of gross working capital in the year 1999-2000 that increased to 28.09% (i.e. Rs.1031467 out of Rs. 3671918) in the year 2008-09 with average of Rs. 425112 lakh showing thesecond highest contributor to the gross working capital. The amount of inventories and debtors also registered increasing trend over the study period with average of Rs. 396247 lakh and Rs. 845047 lakh respectively. The average amount of Rs. 131397 lakh was contributed by the loan & advances. So far as the total current liabilities & provisions are concerned it is observed from Table-1 that there is an increasing trend of current liabilities and of provisions in the total current liabilities & provisions with average of Rs. 1054475 lakh and 203232 lakh respectively. The amount of net working capital also recorded a rising trend with positive balance throughout the study period excepting in the year 2001-02 in which there is a negative growth rate of 2.77% as compared to the year 2000-01. It was Rs. 242786 lakh in the year 1999- 2000 which goes to Rs. 1027555 lakh in the year 2012-13 showing growth rate of 22.53%. On an average it was Rs. 553967 lakh.



Components of Working Capital of BHEL for the period from 2002-2003to 2012-2013

Analysis Oftrend Values Ofcurrentassets & Liabilities

In addition to analysis of trend values of working capital, it is very important to discuss the change in the trend values of current assets and current liabilities of the selected company under study during the study period. Furthermore, the existing values of current assets and current liabilities with their indices have also been examined. gives the detailed analysis of actual values of CA and CL with their indices and trend values of them of the BHEL during the period from 2002-2003 to 2012-2013. It is seen from Table-3 that the value of current assets increased gradually from the beginning to the end. Its indices were very high as compared to the base year due to increase in various components of current assets especially for inventories, debtors and cash & bank throughout the study period. On the other hand, the value of current liabilities & provisions also marked an upward trend during the whole of the study period excepting in the year 2002-03 in which the indices was less than the base year 1999-2000 while in the remaining years its indices were more than the base year. It occurred due to increase in current liabilities. From the trend line equation of current assets (i.e. Yc = 1811673.83+ 350392.87X) and current liabilities (i.e. Yc = 1257706.64 + 276892.70X) it indicates clearly that the current assets and current liabilities are increased by yearly 350392.87 lakh and 276892.70 lakh respectively. From the above two equations we can easily calculate the estimated value of CA and CL in any year in the future periods. The difference between actual values and trend values of CA and CL are not significant in any year of the study. Both the differences are negative from the years 2003 to 2009. Analysis of Correlation between the measures of Liquidity Management and the

Profitability Ratio of BHEL

Simple Correlation Coefficient between

RATIOS RELATING TO LIQUIDITY

MANAGEMENT

PROFITABILITY RATIO (ROCE)

CR -0.940**

QR -0.867**

ITR 0.390

DTR 0.374*

CTR 0.112

WCTR 0.86**

WCTAR -0.853**

DER -0.845**

Note: ** Indicates correlation coefficients are statistically significant at 1% level and * indicates correlation coefficient is statistically significant at 5% level by using SPSS -10.2 version.

Conclusion & Suggestions

i) On the basis of overall analysis, it is therefore important to state that the selected company always tries to maintain adequate amount of net working capital in relation to current liabilities as to keep a good amount of liquidity throughout the study period.

ii) The company must maintain a considerable amount of cash & bank balance in order to meet its short-term commitments and for emergency requirements. This will help the company to increase its margin of working capital and also to make adequate arrangement of credit facilities with banks so as to maintain good amount of liquidity.

iii) The contribution of long term fund used for working capital varied from 44.04% to 85.91%. It clearly indicates that the selected company has been generating about 50% or more from long-term sources



of fund in order to finance for working capital during the study period.

iv) The study of multiple regression analysis reveals that the slope of regression line reveals both positive and negative impact of the independent variables on the profitability of the company under study. Out of eight partial regression coefficients of the ROCE line, the partial regression coefficients of ITR, CTR, WCTR and WCTAR are found to be positive indicating a positive influence on the profitability and the remaining regression coefficients witnessed a negative impact on the company’s profitability. Of the four positive regression coefficients only in case of WCTAR it is significant at 10% level which indicates that there is a significant influence of this measure of liquidity management on the profitability of the company and the remaining coefficients are found to be statistically insignificant during the study period. The study of multiple coefficient of determination (R2) reveals that 99.3% of the total variation in the profitability of the company is jointly explained by the eight independent measures relating to working capital management.

v) Lastly the management of BHEL should also try to maintain a definite proportion among different components of working capital in regard to

overall current assets to keep and adequate quantum of liquidity all the times. Such proportion can be worked out on the basis of past experience by the management of BHEL. References 1. Bhunia, A. and Brahma, B. (2011). “Impact of Liquidity

Management on Profitability”, Asian Journal of Business

Management, Volume (3) 2, 108-117.

2. Chakraborty, K. (2008). “Working Capital and Profitability:

An Empirical Analysis of Their Relationship with Reference

to Selected Companies in the Indian Pharmaceutical

Industry,” The ICFAI Journal of Management Research,

December, 59-78.

3. Nandi, K. C. (2011). “Impact of Working Capital

Management on Profitability (A Case Study of National

Thermal Power Corporation Ltd.)”, The Management

Accountant, Institute of Cost and Works Accountants of

India, Kolkata, Volume (46), 1, 22-27.

4. IV) Singh, J.P. and Pandey, S. (2008). “Impact of

Working Capital Management in the rofitability of Hindalco

Industries Limited,” The ICFAI University Journal of

Financial Economics, Volume (6) 4, 62-72.

5. Sur, D. (2001). “Liquidity Management: An overview of

four companies in Indian power sector”, The Management

Accountant, Institute of Cost and Works Accountants of

India, Kolkata, June, 407- 412



CUSTOMER RELATIONSHIP MANAGEMENT IN BANKING SECTOR: A COMPARATIVE STUDY OF SBI AND OTHER NATIONALISED COMMERCIAL BANKS IN CHENNAI

*Dr.V.Selvarasu **Mrs C. Saraswathy

_______________________________________________________________________________________________________ *Assistant Professor, Commerce Wing, DDE Annamalai University, Annamalai Nagar. **Assistant Professor, Department of Commerce, AM Jain College, Meenampakkam, Chennai.

Abstract Customers are the central point in the development of successful marketing approach. Marketing strategies both power and are

subjective by consumers’ affect and cognition, behavior and background. In the banking field a unique ‘Relationship’ exists between the customers and the bank. But because of various reasons and apprehension like financial burdens, risk of failure, marketing inertia etc., many banks are still following the conventional ways of marketing and only few banks are making attempt to adapt CRM. It is with these conditions, the researcher has made a modest attempt towards the idea that CRM can be adopted uniformly in the banking industry for betterment of Banking Services. The perception of customers on CRM practices among banks should also be taken into consideration. Here in this paper, effort is given to study the comparative perception of SBI customers and other nationalized banks customers’ in the issue of CRM practices. It is observed that the approach of CRM by SBI and other nationalized are to some extent same and one but the reach is silent evident. It is due to the profile, their capability and the strategy of CRM in making it and reaching down to customers. On the contrary, it can also be asserted that the background of both banks also found as a big cause for reaching the top CRM. Hence, CRM is an inevitable tool of marketing that can be measured as serious accountability of Market with regard to Banks in present background.

Introduction

The idea of CRM is that it helps businesses use technology and human resources gain insight into the behavior of customers and the value of those customers. If it works as hoped, a business can: provide better customer service, make call centers more efficient, cross sell products more effectively, help sales staff to deal faster, simplify marketing and sales processes, discover new customers, and increase customer revenues. It doesn't happen by simply buying software and installing it. For CRM to be truly effective an organization must first decide what kind of customer information it is looking for and it must decide what it intends to do with that information. For example, many financial institutions keep track of customers' life stages in order to market appropriate banking products like mortgages or IRAs to them at the right time to satisfy their needs. Next, the organization must look into all different ways information about customers comes into a business, where and how this data is stored and how it is currently used. One company, for instance, may interact with customers in a myriad of different ways including mail campaigns, Web sites, brick-and-mortar stores, call centers, mobile sales force staff and marketing and advertising efforts. Solid CRM systems link up each of these points. This collected data flows between operational systems (like sales and inventory systems) and analytical systems that can help sort through these records for patterns. Company analysts can then comb through the data to obtain a holistic view of each customer and pinpoint areas where better services are needed. In CRM projects, following data should be collected to run the process: 1) Responses to campaigns, 2) Shipping and fulfillment dates, 3)Sales and purchase data, 4) Account information, 5) Web registration data, 6)

Service and support records, 7) Demographic data, 8) Web sales data.

Research problem Recent Marketing viewpoint advocates the concept of CRM that creates customer pleasure. This applies to all sectors of Sales and Marketing includes the banking. In the banking field a single ‘Relationship’ exists between the customers and the bank. But because of various reasons and apprehensions like financial burdens, risk of failure, marketing inertia etc., many banks are still following the conventional ways of marketing and only few banks are making attempts to adapt CRM. It is with this background, the researcher has made a modest attempt towards the idea that CRM can be modified homogeneously in the banking industry for betterment of Banking Services. The role of CRM is quite different and distinguishable to traditional type of Marketing CRM participate not only in Marketing but also in implementing the business as a strategy to acquire, grow and retain profitable customers with a goal of creating a sustainable competitive advantage. Predominantly in banking sector, the role of CRM is very vital in leading the banks towards high level and volume of profits. So there is a need to study the role of CRM in development and promotion of banking sector through the sidelines of the practices, problems and impact of the CRM on banking sector all the time. Objectives of the study

1. To examine the writing on the concept and use of CRM in banking sector.

2. To analyses the awareness of customer on CRM as a tool of banking sector in preservation of customers in general in SBI and other nationalized banks in particular.

3. To offer important suggestions based on the findings of the study.



Methodlogy

The present study is a comparative and analytical one through the perceptions of the customers of the selected banks. Primary data were collected through a well prepared qualitative questionnaire from the selected banks. A Questionnaire with 20 statements was adapted from different literature with modification to suit the setting in the banking sector. Perceptions on CRM practices are measured by using 5 point Likert scale as follows: 1= Disagree; 2= Neutral; 3= Agree. A sample of 120 customers of the selected banks, SBI (60 customers) and other nationalized banks (60 customers) of Chennai city of Tamilnadu were selected for the point of the study. Data what so ever collected were processed, tabulated and analyzed by using various statistical tools, like, Arithmetic mean, Standard Deviation and ‘F’ test etc. Literature Review Agbaje Yinusa Toyese (2014)2 Findings of this study are presented. The Results from FGD indicate that all the sampled telecommunication firms have adopted CRM principles. Results further show that CRM is a well adopted model for managing telecommunication firms’ interactions with their current and future customers. With CRM, more customers are retained, and nearly all the firms are able to earn their customers loyalty. Further findings from the sampled firms showed that CRM is a business strategy employer by the firms to understand the customer, retain customers through better customers experience, attract new customers, and increase profitably through a decrease in customer management cost. The following sections highlight the detail of the results obtained from the analysis. RichaSinha, and Nishi Tripathi (2013)3, in their study on ‘Customer Relationship Management as a Corporate Strategy in Indian Banking Sector: A Comparative Study of Private and Public Sector’ aimed to analyses complaint handling in the area of Customer Relationship Management in Indian Banking Industry. The study discussed the problems faced by customers of public and private sector bankers and the expectation of these customers in complaint handling by bankers. The paper has identified certain behavioral factors that are associated with complaint issues in both types of banks. The major areas of concern to maintain customer relations and to retain and develop

2 Agbaje Yinusa Toyese (2014)2 Customer relationship management and customer loyalty in Nigerian

3 RichaSinha, and Nishi Tripathi, Customer Relationship

Management as a Corporate Strategy in Indian Banking Sector: A

Comparative Study of Private and Public Sector Banks Journal of Business Management & Social Sciences Research (JBM&SSR)

ISSN No: 2319‐5614,Volume 2, No.3, March

2013,www.borjournals.comBlue Ocean Research Journals , pp 35-38

customers are; proper identification of behavioral considerations during service interaction, dealing with enquiry, developing awareness tools, training behavioral skills of employees, proper development and implementation of complaint handling system. The study further states that an improper complaint handling can lead to losses to the service provider not only in financial terms but also at relational terms. Peter Anabila & Dadson Awunyo-Vitor (2013)4, conducted a study on ‘Customer Relationship Management: A Key to Organizational Survival and Customer Loyalty in Ghana’s Banking Industry’. The study indicated that banking industry witnessed stiff competition during the last decade thus accentuating the need for banks to consider Customer Relationship Management (CRM). The aim of this study was to assess the relationship between customer relationship management and customer loyalty using a case bank. Cross sectional research design was used. The result indicated that the bank assigned relationship managers to take care of the individual customer’s needs. Thus, there was an indication of the practice of CRM at the bank and this was more evident in the area of feedback to customers. However, staff perception of the constructs of CRM practice was relatively more positive than customers. Thus, Banks believed that they were practicing CRM while in fact customers were not recognizing it that much. A correlation analysis revealed that there was a strong positive relationship between CRM practice and customer loyalty. The study recommended that bank should continue with the CRM practices and effectively communicate their CRM policy to customers to improve customer loyalty. In addition introduction of some loyalty programmes would enhance customer loyalty.

Analysis & Findings

CRM has emerged as a popular business strategy in today’s competitive environment. It is a discipline that enables the companies to identify and target their most profitable customers. It involves new and advance marketing strategies that not only retain the existing customers but also acquire new customers. It has been found as a unique technique which can bring remarkable changes in total output of companies. Through the literature survey and data analysis it can be inferred that CRM tries to find out the relationship between perception and satisfaction, commitment and loyalty that underlines the significance in Indian Banking Sector. Customers largely select their banks based on how convenient the location of bank was to their homes or offices. With the advent of new technologies in the business

4 Peter Anabila and DadsonAwunyo-Vitor, ‘Customer

Relationship Management: A Key to Organisational Survival and Customer Loyalty in Ghana’s Banking Industry,’International

Journal of Marketing Studies; Vol. 5, No. 1; 2013,ISSN 1918-719X

E-ISSN 1918-7203,pp 107-117,Published by Canadian Center of Science and Education.



of banking, such as internet banking and ATM’S, now customers can freely chose any bank for their transactions. Private Banks have traditionally viewed themselves as exceedingly “Customer Centric” offering what they believe to be highly personalized services to the High Net Worth Customers. It is also found that the structured approach of CRM can provide various benefits to a bank, namely a distinctive and consistent customer experience, clear identification of the organization, technological and process-related capabilities. The banking industry is much further along than other industries in recognizing the value of CRM and implementing decision support systems to support CRM. Though most of the banks have already focused on tactical point solutions, they’re ready for a transition toward strategic, enterprise-wide CRM initiatives that cross major business lines. An effective decision support system for CRM enables to collect data about customer from every touch consolidate this information into a single view of the customer, and use this information for customer profiling, segmentation, cross-selling, up selling and retention efforts. As banks continue to seek a combined understanding of customer relationships across diverse channels, the importance and penetration of CRM is expected to grow like anything. 1. From the analysis, it is found that only few

customers know that there is a change in marketing approach of Banks due to changing business environment. Majority of customers uncertain that the CRM is centered in a particular department very few of the customers have conventional that CRM is prevalent through all the levels in the Banks. CRM undertaken by employee approach to customers is found very poor. It is further observed that the CRM activities are initiated and implemented by the Banks in a serious manner, so that the customers in particular and the society in general benefited a lot. Providing service to customers has been identified as the prime responsibility of the Banks and therefore, Banks considered that CRM is the best tool to perform the job of rendering good services.

2. It is found that Customer Retention is not a big challenge to Banks as per the opinions of customers of selected Banks. It is found that though CRM activities have not helped to increase the confidence of the customers in meeting the changing needs, it helped to increase the confidence of the customers while rendering services in mean time efficiently. CRM activities of the selected Banks are not up to the mark in retaining the key customers.

3. The reach of CRM of both SBI and other nationalized banks is compared and tested through ‘F’ Ratio. It is assumed that there is no significant difference between the perceptions of customers of SBI and other nationalized banks towards CRM. As the calculated value (1.65) of

‘F’ is higher than the standard value (1.54), the hypothesis is rejected at 5% significant level and inferred that there is significant difference between the perceptions of SBI and other nationalized banks customers towards CRM.

Conclusion

The general discussion can be said that the bank is yet to develop an integrative approach which focuses on the customer needs and to deliver to it. As shown by the study, the bank is far from developing a customer centric approach both for the customer as well as for the employees. Thus, for customer relationship management to deliver to its expectations, it should play an integrative role within the bank and ensure that all processes are integrated in the bank global strategy, which is far from reality in the study above. In view of this, to realize a CRM integration strategy, the following recommendations can be adopted:

The Indian Banking Sector is flooded with different banks of the same molecule. In such a competitive environment, the Banks should adopt suitable marketing skills rather than depending on the trading skills. Hence, new services should be constantly introduced to ensure the growth of the Banks and to be competitive in the market and to keep up the enthusiasm of the employees and customers etc. Implement a Customer Centric Process in Banks. Employee Relationship Management first before Customer Relationship Management. Increase customer experience through the web site. Develop channel integration for effective Customer Relationship Management. Based on the analysis it is very clear that in almost all issues, the working performance of SBI and other nationalized banks is similar but differing at certain aspects only. The SBI though it is public sector bank, taking much care in implementation of CRM, fine tuning the CRM and finally putting it on track. Whereas, other nationalized was not at par with SBI in most of the aspects like database management, responding to the customers in mean time and provisionaising the services as expected by the customers. Particularly in marketing approach, considering customer retention as a big challenge, provisioning the facilities attending the needs without delay in time, meeting the changing needs creating the database, employee approach to customers, customer awareness impact of CRM relationship with customer impact over bank objectives, CRM and public image, CRM and updating the data, CRM and customer satisfaction, other nationalized is found quite good. On the other hand, in terms of retention of existing key customers, enhancing customer loyalty, provisionising technological infrastructure, location of CRM, existence of CRM, approaches of CRM, coverage of CRM by e-Marketing, relationship with the customer, CRM’s objectives and making the customer delight, retention of customers benefits of CRM to the organization, loyalty, customer confidence, are found quite satisfactory and in good condition with SBI. It is



very clear from the foregoing analysis that the approach of CRM by SBI and other nationalized are to some extent same and one but the reach is quiet distinguishable. It is due to the profile, their capability and the strategy of CRM in making it and reaching down to customers. On the contrary, it can also be asserted that the background of both banks also found as a big cause for reaching the top CRM.

Hence, CRM is an inevitable tool of marketing that can be considered as Critical Responsibility of Market with regard to Banks in present context. The results in this study show the respondents either agree or strongly agree on majority of the statements in the dimensions used. This study is significant to banks as they get information on what are important to customers so as to maintain the relationship



SERVQUAL ANALYSIS OF ACCOUNT-HOLDERS SATISFACTION TOWARDS BANKING SERVICES OFFERED BY HDFC

*Dr. G. Madan Mohan **S. Manimegalai

_______________________________________________________________________________________________________ *Assistant Professor, Department of Management Studies, Pondicherry University. **II. MBA, Pondicherry university.

Abstract Indian banking industry is growing at a rapid phase. Private and foreign banks have started intruding into the market of nationalised

banks. Penetrating into market and sustaining the market share requires these banks to serve their customers through good quality services. Service quality is the function of customers' expectation and service providers' performance,which can be measured using SERVQUAL instrument. This descriptive study proposes to assess the account-holders perception about the reliability, tangibility, responsiveness, empathy and assurance of HDFC and the impact exerted by these factors on their opinion about the features of the bank. Results reveal that assurance exerts the maximum impact on features, followed by responsiveness, tangibility, reliability and empathy.

Introduction

Indian banking industry is witnessing enormous changes due to varying environmental conditions such as augmented competition level with the entry of more private and foreign banks, developments in technology, huge spurt in income of people and diversified customer needs. These factors have contributed to the drastic growth of the Indian banking industry, which is expected to outsmart most of the developed nations.

Though nationalised banks are the most important players in the Indian banking industry, private and foreign banks have started to intrude into the market of these banks. With intensive competition in the industry, both nationalised and private banks can survive in this competitive environment only if they are able to provide distinct service quality to their customers, thereby gaining competitive edge over their competitors. This can be accomplished only if banks are able to identify the needs of their customers and design products and services, distinct in nature, to cater to these needs. Banks are confronting with daunting challenge of enhancing their proficiency, lower operating cost and improving quality of their service so as to win over pleasure of their customers.

Service quality is the function of customers' expectation and service providers' performance (Parasuraman et al. 1985).Service quality is "a form of attitude, related but not equivalent to satisfaction that results from a comparison of expectations with perceptions of performance. Expectations are viewed as desires or wants of consumers i.e. what they feel a service provider should offer rather than what the service provider would offer" (Parasuraman et al. 1988). Service quality is a gap between expectations of customers and performance of the service provider (Cronin and Taylor 1992). One of the important issues related to service quality is measuring it, which can be done through SERVQUAL instrument developed by Parasuraman et al (1988). However, authors such as Brown et al. (1993); Teas (1994) put forth their arguments against the validity of SERVQUAL scale. Cronin and Taylor were the first to provide a

theoretical justification for discarding the expectation part of SERVQUAL in favour of mere performance measure included in the scale. They have given a model of service quality named SERVPERF based only on customers' perceptions of the performance of a service provider. Appropriateness of SERVPERF model in measuring the service quality in banking is researched by some researchers such as Boulding et al. 1993; Brown et al., 1993; Teas, 1994; and Brady et al., 2001 and it has been proved that the SERVPERF model is better suited for the purpose. However, Parasuraman, Zeithmal and Berry (1994) contend that the SERVQUAL scale using the expectations/performance gaps method is a much richer approach to measuring service quality and augment their earlier assertion. M. Angur, R. Natarajan and J. Jahera Jr. have researched service quality in the banking industry of a developing economy (1999). Their research supported SERVQUAL and suggested that the SERVQUAL scale provides greater diagnostic information than the SERVPERF scale. Both the SERVQUAL and SERVPERF scales have identical convergent validity.Disregarding the debate about supremacy of these scales, the4 author has decided to use the SERVQUAL scale to assess account-holders satisfaction towards services offered by HDFC. Many studies were conducted to study the banking service quality and customer satisfaction in India such as Verma and Vohra, 2000; Debasish, 2002; Sureshchander et al., 2003; and Purohit and Pathardikar, 2007. These studies reveal the service quality and customer satisfaction of various commercial banks. However, no studyhasbeen conducted to assess the relationship between demographic variables of account-holders and their level of satisfaction towards the services of a bank. Hence, this study proposes to survey the satisfaction of account-holders towards HDFC services. Objectives of the Study 1. To study the perception of Account-holders

about the Responsiveness, Tangibility, Reliability, Assurance and Empathy of HDFC.



2. To assess the impact exerted by these factors on the account-holders opinion about the features of HDFC.

Methodology

The proposed research is descriptive in nature, based on primary data, collected by administering a well structured interview schedule to 200 account holders of HDFC, Puducherry Main branch. The schedule consist of six questions related to demographic profile of the account holders while the seventh question consist of statements about six constructs ofreliability, tangibility, responsiveness, assurance, empathy and features. The perception of account-holders about these six constructs have been obtained in a Likert’s five point scale and represented suitably in tabular form and analysed using the Statistical Package for Social Sciences and Smart PLS, employing the statistical tools of Mean, ANOVA, Cluster Analysis, Correspondence Analysis and Path Analysis. Data Analysis & Interpretation Profile of Respondents

Males constitute 56% of the respondents while 44% of the respondents are females; 16.5% are aged less than 25, 41.5% are aged 25-35, 35.5% are aged 35-50 and 6.5% are age more than 50; 6.5% are educated up to HSE, 52% are graduates, 30% are post-graduates, 10.5% are diploma-holders and 1% possess professional education; 76.5% are married, 23% are single and 0.5% are divorced; 21% of respondent’s family monthly income is less than 15000, 47.5% have

income of 15000 to 30000, 27.5% have income of 30000 to 50000 and 4% have income of more than 50000; 59.5% of the respondent prefer ATM services, 22% prefer Internet banking, 17% prefer Mobile banking and only 1.5% prefer Retail banking; 1.5% of the Account-holders consider financial position of the bank as important factor for deciding about opening account in the bank, 1.5% consider current market position, 55.5% consider goodwill of the bank and 41.5% consider services provided by the bank; 13% of the account-holders prefer public sector banks, 86% prefer private banks and a mere 1% prefer cooperative banks; 18.5% of the account-holders consider ICICI as the secured bank, 61% consider HDFC while 11.5% consider SBI and 0.5% consider Bank of Baroda as secured bank,while 8.5% consider other banks as secured bank. Account Holders Perception about HDFC

Account holders perception about HDFC has been assessed using many statements. The mean values assigned to these statements (encompassing different constructs studied) by the account holders have been displayed in table 1, which suggests that the Account-holders of HDFC has rated the bank’s features as “Good” as the mean in respect of this construct is 4.0. As far as the account-holder’s opinion about the various aspects of HDFC, they have rated “Tangibility” of the bank as the best followed by “Empathy”. However, other aspects of the bank have been rated almost identically, though the degree of appreciation of these aspects is not that bad.

Table1: Account holders perception about HDFC

Profile-wise Perception of Account-holders About HDFC

Factor Statement Mean Factor Statement Mean

Reliability (3.94)

Timely Service 4.04 Assurance

(3.95) Confidence Instilled on Customers 3.82

Error-free Records 3.85 Safety Feeling for Customer 4.23

Provide all Information 3.79 Knowledgeable employees 3.84

Solving customer Problems 4.09 Efficient System in Bank 3.93

Tangibility (4.11)

Attractive Infrastructure 3.79 Courteous Employees 3.97

Sufficiency of Materials 4.02 Bank Image Important for Employees 3.90

Smartness of Employees 3.74 Empathy (4.0)

Individualised Attention to Customers 3.92

Different Counters for Different Needs 3.89 Convenient Office Hours 4.12

Good ATM facilities 4.13 Reliable Home Delivery Services 3.9

Good Online banking service 4.28 Serving customer Interest 3.92

Upgraded Technology 4.25 Good Customer Relations 4.13

Assisting Senior Citizens 3.92 Features (4.0)

Good Appearance 4.

Responsiveness (3.93)

Competent Employees 3.94 Apt Performance of Service 3.91

Prompt Service 3.96 Customer Assistance 4.07

Employees’ Helpfulness 3.83 Able employees 3.99

Response to Queries 4.03 Caring Attention to Customers 4.04

Responding To Aged 3.90



The perception of account-holders of HDFC about the bank’s Reliability, Responsiveness, Empathy, Tangibility, Empathy and Features has been assessed using Mean Analysis. Now, the relationship between the perception of account-holders about HDFC and their profile has been explored using ANOVA.The results displayed in Table 2indicates that value of significance in respect of all the demographic variables for all the factors is more than 0.05. Hence there is no significant difference in opinion about the six factors among the 200 account holders of HDFC, classified on the basis of their age, gender, occupation, education, marital status and income.

Table 2: Profile wise perception of account holders About HDFC

Factors Gender Age Occupation Education Qualification

Marital status

Income

Reliability 0.729 0.352 0.722 0.827 0.731 0.419

Tangibility 0.527 0.904 0.887 0.315 0.589 0.491

Responsiveness 0.479 0.902 0.689 0.448 0.335 0.722

Assurance 0.5 0.123 0.532 0.094 0.811 0.599

Empathy 0.522 0.562 0.459 0.505 0.914 0.736

Features 0.128 0.777 0.722 0.271 0.15 0.13

Cluster Analysis: The next step is to segment the 200 account-holders based on their perception about the bank.

Table 3: Final cluster centres

Factor C1 C2 C3 F P

Reliability 4.19 3.17 3.88 135.969 0.000

Tangibility 4.20 3.44 3.93 96.918 0.000

Responsiveness 4.22 3.06 3.84 207.348 0.000

Assurance 4.15 3.25 3.92 133.924 0.000

Empathy 4.19 3.35 3.96 98.527 0.000

Frequency 100 26 74 200

It can be inferred from Table 3that the mean

values in respect of all the five factors for the three clusters differ significantly as the value of significance in all the cases is well below the threshold limit of 0.05. Hence, it can be said that segmentation of the 200 account-holders based on the five factors can be done perfectly. Table 3 further reveals that three clusters have been formed based on the five factors. The first cluster is labelled as “Responsiveness Overt Group”, as the mean of this segment in respect of the “Responsiveness” factor is the highest. The second cluster is designated as “Tangibility Blatant Group” as the mean for this segment in respect of Tangibility factor is the highest. The third cluster is branded as

“Empathy Barefaced Group” as the mean for this segment is highest in respect of Empathy factor.

It can further be inferred from Table 3that “Responsiveness Overt Group” encompasses 100 account-holders, the “Tangibility Blatant Group” encompasses 26 account-holders and the “Empathy Barefaced Group” encompasses 74 account-holders. Determinants of FEATURES OF HDFC

The impact exerted by reliability, tangibility, responsiveness, assurance and empathy on the features of HDFC has been explored using path analysis of Smart Pls package and the results have been displayed in the following figure.

Figure 10: Determinants of features of HDFC



It can be inferred from the above figure that assurance exerts the maximum impact on features (30.4%),

followed by responsiveness (21%), tangibility (14.8%), reliability (12.9%) and empathy (7.3%). The Predictive Revelants of the model justifies the statistical significance of the model. Conclusion

Though Tangibility of the bank has been well appreciated by the account-holders, their opinion about the physical facilities available in the bank has been slightly on the lower side. Hence, there is some room for improvement with regard to the physical appearance of the bank.

Furthermore, it can be observed from the study that Assurance exerts maximum impact on the Account-Holders satisfaction level about the features of HDFC. Hence, the study establishes the importance of providing assured services to customers by a bank to win over their confidence. It can be said that the overall satisfaction level about HDFC is quite good among its account-holders. References 1. AngurMadhukar, Rajan Natarajan and John Jahera Jr.,

“Service Quality in the Banking Industry: an assessment in a developing economy”, International Journal of Bank Marketing, 17(3), 116-123.

2. Cronin J.J. and Taylor S.A. (1992). "Measuring service quality: a re-examination and extension", Journal of Marketing, 56,(July), 55-68.

3. Parasuraman, A., Zeithaml V.A. and Berry L.L. (1985). "A conceptual model of service quality and its implications for future research", Journal of Marketing, 49, Fall, 41-50.

4. Parasuraman A., Zeithaml V.A. and Berry L.L. (1988). "SERVQUAL: A Multiple Item Scale for Measuring Customer Perceptions of Service Quality," Journal of Retailing, 64, spring, 12-40.

5. Teas R.K. (1994). "Expectations as a Comparison Standard in Measuring Service Quality: An Assessment of a Reassessment", Journal ofMarketing, 58, 132-39.

6. Verma, D.P.S., and Ruchika Vohra (2000). "Customersperception of banking service quality-A study of state bank of India", The Journal of Institute of Public Enterprises, 23, 46-54.

7. Zeithaml V., Parasuram A. and Berry L.L. (1990). Delivering Quality Services: Balancing Customer Perceptions and Expectations, The Free Press, N.Y. Web Resources

8. http://www.hdfcbank.com/

9. http://www.dnb.co.in/bfsisectorinindia/BankC2.asp

http://www.hdfcbank.com/

http://www.dnb.co.in/bfsisectorinindia/BankC2.asp



BANKING IN THE 21ST CENTURY IN INDIA: A DESCRIPTIVE STUDY

*Ashwini Jamuni **Mallikarjun Talewad

_______________________________________________________________________________________________________ *Assistant Professor, Department of Commerce, Rani Channamma University, Belagavi, Karnataka State, India. ** Post Graduate Student, Department of Commerce, Rani Channamma University, Belagavi, Karnataka

Abstract This paper analyzes the facilities provided by the new generation commercial banks. The gamut of services provided by the new age

banks include Core Banking, At Par Cheque facility, Internet Banking, Electronic Funds Transfer (RTGS/NEFT), Online request for opening FD/RD/CD accounts etc. In this direction, the new generation banks’ contribution has been amazing. Banks like ICICI Bank, HDFC Bank, Axis Bank, State Bank of India etc have been at their best to make the banking services available to the customers at their fingertips. Customer can sit at home and do all banking transactions, be it transferring money to another account, opening an account or closure of a matured FD. The present paper intends to cover all such facilities/services rendered by the commercial banks to make the banking available to customers at ease. The new and innovative banking products/services will be discussed in the paper and the merits of these services will be highlighted. No doubt, these new aged services are not free from hackers and thus these are faced to a great amount of cyber risks. The paper also envisages the potential risks inherent in the online/internet banking and the precautions to be taken by the customers while doing online transactions. The paper concludes with the evaluation of the innovative services of the new generation banks. Keywords: New Generation Banks, RTGS, NEFT, Core Banking, At Par Cheque Facility

Introduction The importance of extending speedy, efficient, fair and courteous customer service in banking industry is being regularly emphasized by the Government of India (GOI) and Reserve Bank of India (RBI). In 1975, the Government of India had appointed the Talwar Committee on customer service in banks. In 1990, RBI appointed the Goiporia Committee on customer service in banks. In 2004, the Tarapore Committee recommendations led to formation of Board level committees for monitoring customer service in banks. In 2006, Reserve Bank of India appointed a Working Group to formulate a scheme to ensure reasonableness of bank service charges under the chairmanship of Shri. N. Sadasivan. The recommendations of the various Committees / Working Groups reflected the need of the time in which the Committees / Working Groups were set-up. For instance, the Goiporia Committee broadly covered the following aspects:

Causes of the persistence of below par customer service in banks.

Areas of deficiencies in customer service in banks.

Measures for improvement in work culture.

Steps for inculcation of greater customer orientation among bank employees.

Identification of structural and operational rigidities and inadequacies which adversely affect the working of banks.

Up gradation of technology to ensure prompt and efficient customer service.

In addition to the guidelines framed based on the recommendations of the Committees, RBI had been giving instructions to banks as and when required. Over the report of the committee on customer service in banks, the customer service in banks has improved considerably with the introduction of technology based products:

ATM (this has facilitated customer to access cash withdrawal/deposits/account querying/transfer of funds/payment of utilities/purchase of air/train tickets – 24 X 7).

Internet Banking.

Debit Cards (dispensed the need for carrying cash for making purchases).

Mobile Banking (stage wise implementation) and the youngsters accessing banking services.

Further, de-regulation has brought in its wake numerous banking services, niche products etc. Widespread use of technology also enhanced the customer expectations, specifically on the aspects of speed and quality of service delivery. In addition, technology implementation has made branch banking redundant on many aspects, redefined several of the existing services and raised customer expectations regarding reasonableness of service charges. While the bankers hold a view that the introduction of core banking solution entailed huge cost and the passing of benefit will take some more time till substantial portion of customers start using technology based products. The economy is also experiencing demographic dividend, thereby the number of youngsters accessing banking service is on the increase with the resultant pressure on providing technology based services. Innovative Banking Services in India

Technology and Customer Service The period of last decade or so has seen growth in the banking sector with consequent increase in the volume of banking transactions fully aided by the growth and innovations in the banking technology. The technological improvements in banking have also, to a large extent, facilitated the banks in improving their level of customer service. In line with



the same, the terms of reference for the Committee included examining the possible methods of leveraging technology for better customer service with proper safeguards including legal aspects. While a certain level of business process re-engineering (BPR) has been achieved, it was observed that considerable customer grievance resulted on account of incomplete BPR. Almost all the banks now work in a computerized environment with core banking solution (which facilitates anywhere banking from the earlier branch concept) is a common phenomenon. A large number of banks also offer banking on the telephone or internet or mobile platforms (restricted facilities). Money transfer is an area that has been largely benefitted through technological developments. Core Banking Solution

CBS is a centralized platform, which creates environment where the entire bank’s operations can be controlled, and run from a centralized hub. This creates a centralized customer database, which makes anytime, anywhere, anyway banking possible. It is an integrated banking system covering banking for individuals and companies together, as well as electronic banking. Benefits of using core banking system:

Supporting multiple means of communication and payment (Multi channel) ATM, POS, telephone banking and Internet banking services

Centralized databases of customers and accounts. This will enable banks to issue their

financial positions on a daily level of all branches.

Enable Libyan banks to the application of policies and standards for departments and

control credit risk and the fight against money laundering more effectively.

Supporting the provision of banking services within 24 hours throughout the week. And

enable customers to deal with their accounts through any branch of the bank.

Supporting communication and communication with the basic components of the national payments system Electronic clearing system, Distributor of self checkout machines, POS system, The immediate settlement system, Clearing instruments system

Supporting direct communication with the SWIFT system Swift.

Supporting the Service of payment of utility bills automatically.

Supporting short message service SMS. Payable at Par Cheque

All cheques issued by customer will be payable at par at various particular bank branches across the country. Principal Features

Customer cheques are payable at par at all branches of a particular bank across India

Customer needs to maintain only a single account across locations

Payments to beneficiaries can be effected through locally payable instruments

Provides customers an effective payments product

Suitable for large and medium-sized corporate customers with multiple locations

Internet Banking

Card- based payments- debit card, credit card- late 1980s and early 1990s.

Introduction of Electronic Clearing Service (ECS) in late 1990‟s

Introduction of Electronic Funds Transfer/ Special EFT (EFT/SEFT) in the early 2000‟s

Real Time Gross Settlement (RTGS) was introduced in March 2004

Introduction of NEFT (National Electronic Funds Transfer)as a replacement for EFT/SEFT in 2005/06

Plan for implementation of cheque truncation system as a pilot program in New Delhi in 2007.

Migration from cash and cheque based

payment system, it has become a necessity to electronic fund transfer system on account of the following reasons:

1. Large volumes of transaction, 2. High cost of physical handling and storage of paper instruments. 3. Delay in realization is a common feature. 4. Finality of payment takes time because the physical movement of instruments in large volumes from branches to and from clearing house, and sorting them according to each bank branch at the center creates problems.

RBI has taken two major steps to tackle this problem:

Use of Magnetic Ink Character Recognition (MICR) technology was resorted to facilitate and expedite physical sorting of instruments using high-speed MICR sorters.

Introduction of Electronic Clearing Service. The ECS was the first version of Electronic Payments in India. It is a mode of electronic funds transfer from one bank account to another bank account using the mechanism of clearing house. It is very useful in case of bulk transfers from one account to many accounts or vice- versa. EFT Electronic Fund transfer EFT scheme targeted one to one payments as an alternative to the use of cheques and drafts for remitting funds between bank accounts located at different centers. EFT encountered the problem of low



level of computerization and connectivity in the Indian banking industry. ATMs

ATMs are an issue of survival for the banks and are becoming just another part of everyday life. Falling costs of machines and connectivity is a key factor contributing to the growth of ATM network. Banks have also been cutting costs and gaining synergies through ATM sharing agreements amongst themselves, for example:

Cash Tree (Bank of India, Union Bank of India, Indian Bank, Dena Bank and Syndicate Bank)

SBI, HDFC Bank, UTI Bank, Indian Bank and Andhra Bank

ICICI Bank, Andhra Bank and Federal Bank Banks are now using ATMs for product promotion as banks market broader financial services to their captive audience of ATM users. But these facilities come with added problems when huge amount of money is withdrawn by large number of consumers in a market period (very short period of time). Customers have appreciated that internet banking has enhanced customer convenience and comfort, but at the same time exposed customers to unforeseen frauds. Simultaneous hacking transactions had been reported from multiple locations also. The banks defend the same by taking a plea that the customer would have compromised with the PIN and the password of the internet banking access. However, the circumstantial evidence of misuse at a distant country pointed out otherwise as such locations had no direct relation with the customer at all. Many frauds are committed by fraudsters through identity thefts like phishing and pharming etc. Online / Mobile Payments Customers all over the country have expressed satisfaction at online payment facilities created by the various utility holders and other service providers through the bank platforms. It was appreciated that several airlines, utility companies, etc. were providing discounts for online payments, online ticketing, etc. Such facilities and offers also help the banks and RBI in currency management as the movement of currency is restricted. The Committee felt that if such small discounts to favour electronic payments are given by all the users of electronic bank platforms for collections, a substantial shift in favour of electronic payments as opposed to cash may happen in future and that would also result in substantial savings in cash management to such utilities and others. Mobile banking coupled with digitization of records can revolutionize everyday life for the vast majority. Economically weaker section shall be brought into the banking system by combining No Frills Account / Micro Finance / Government subsidies and payments. RTGS/NEFT Facilities

RTGS- Real Time Gross Settlement- This is a system where the processing of funds transfer instructions takes place at the time they are received (real time). Also the settlement of funds transfer instructions occurs individually on an instruction by instruction basis (gross settlement). RTGS is the fastest possible interbank money transfer facility available through secure banking channels in India. NEFT- National Electronic Fund Transfer- This system of fund transfer operates on a Deferred Net Settlement basis. Fund transfer transactions are settled in batches as opposed to the continuous, individual settlement in RTGS. Presently, NEFT operates in hourly batches from 9 am to 7 pm on week days and 9 am to 1 pm on Saturdays. Risk Factors The latest fraud which is considered as the safest method of crime without making physical injury is the Computer Frauds in Banks. Computerization of banks had started since 1994 in India. Reserve Bank of India has evolved working pattern for Local area Network and wide area Network by instituting different microwave stations so that money transactions could be carried out quickly and safely. The main banking tasks which computers perform are maintaining debit-credit records of accounts, operating automated teller machines, and carry out electronic fund transfer, print out statements of accounts create periodic balance sheets etc. Internet facilities of computer have revolutionized international banking for fund transfer and for exchanging data of interest relating to banking and to carry out other banking functions and provides certain security to the customers by assigning different pin numbers and passwords. Computer depredations have by some been classified as: 1. Cyber frauds; and 2. Cyber crimes Cyber frauds are those involve embezzlement or defalcations achieved by tampering with computer data record or program, etc. whereas computer crimes are those committed with a computer that is where a computer acts as a medium. The difference is however academic only. The three most common are: 1. Cheque Frauds

The resolute growth of paper cheques coupled with the ready availability of latest printing technology has resulted in an alarming rise in cheque frauds in Indian banks. Cheques are widely used instruments across the globe. It is interesting to note that cheques as a payment mechanism are still having a dominant position, both in developed and developing countries. Banks have been working very hard to wean customers from paper cheques. Cheques are expensive to print, mail and process. Other problems associated with cheques are inherent manual –



handling process, high costs for banks, and high transportation costs between parties. Concept and Magnitude of Cheque Frauds

There are a variety of ways to categorize cheque frauds. One broad distinction is “internal” and “external”. Internal cheque fraud refers to schemes devised by insiders – employees responsible for creating, authorizing, or processing cheques. External cheque fraud refers to schemes created by independent operators or by organized gangs. The most common forms of external fraud involve: a. Alteration of cheque details b. Creation of counterfeit cheques c. Forgery of cheques Physical Security Controls used are watermarks, high resolution micro printing, reflective holograms, and security inks etc. 2. ATM Frauds Automated Teller Machines or ATMs are electronic machines linked to the accounts and records of a banking institution. It enables customers to carry out banking transactions without visiting bank premises. ATMs are virtual banks which allow the user to withdraw cash, pay bills, balance inquiries, cash deposits etc. The machine is operated with the help of an access device, which is a card, code (Personal Identification Number), or through other means of access to a customers account, or any combination thereof. Fraud Related to ATMs. Frauds may be committed by both outsiders and insiders. It is understandable that as the number of transactions rise, the number of fraud occurrences will rise as well. Frauds can occur due to the negligence on part of the cardholder or on the part of bank. If the cardholder does not follow the precautionary measures, he is exposed to risk.

A cheat may go through discarded receipts or carbons to illegally find out the card number.

A dishonest clerk makes an extra imprint from credit card or charge card for his or her personal use.

In addition, E – mail and Internet – related fraud schemes are being perpetrated with increasing frequency, creativity, and intensity. With the help of latest technology, fraudsters dupe innocent customers through ATM and Internet. A few of the methods adopted by fraudsters. 3. Credit Card Frauds

Credit card fraud is widespread as a means of stealing from banks, merchants and clients. A credit card is made of three plastic sheet of polyvinyl chloride. The central sheet of the card is known as the core stock. These cards are of a particular size and many data are embossed over it. But credit cards fraud manifest in a number of ways. They are:

Genuine cards are manipulated

Genuine cards are altered

Counterfeit cards are created

Fraudulent telemarketing is done with credit carkds.

Genuine cards are obtained on fraudulent applications in the names/addresses of other persons and used.

It is feared that with the expansion of E-Commerce, M-Commerce and Internet facilities being available on massive scale the fraudulent fund freaking via credit cards will increase tremendously. Conclusion

Banking sector reforms have changed the traditional way of doing banking business. Mainly technology is the outcome of banking reforms. Customer is now the king and customer focus or satisfaction of customer is the main aim of the banks. With the introduction of new products and services competition has grown up among the banks. Only those banks will survive who face the competition with the effective ways of marketing. References

1. Basant, R. and S. Morris (2009), “Competition policy in India- Issues for a globalizing Economy,” Economic and Political Weekly, Vol. XXXV, No.31.

2. Dwivedi, R. (2007) “Managing Marketing-Finance Interface”, Journal of Commerce and Trade, Vol. 2(2).

3. Gurumurthy, N (2004), “Marketing Bank Products”, IBA Bulletin.

4. Jha, S.M (2000) “Service Marketing”, Himalaya Publishing House, Mumbai.

5. Laxman R. Deene , S. and Badiger , S. (2008) “Changing dimensions of Banking sector in India”. Edited book by Dr. R.K.uppal; paradigm shift in Indian Banking , pp. 70-80.

6. Nair, K.N.C. (2006), “Banking on Technology to Meet 21st Century Challenges‟, contributions, Vol II, bank net India, (sept), pp,6-11.

7. www.rbi.org.in : Report of the Committee on Customer Service in Banks.



PRIVATE HOSPITAL SECTOR IN SALEM CITY *M.Raja

**Dr.A.Joseph Xavier _______________________________________________________________________________________________________

* Ph.D. Research scholar, Department of commerce, Ayya Nadar Janaki Ammal college, Sivakasi. **Assistant Professor and Research supervisor. Department of commerce, Ayya Nadar Janaki Ammal college, Sivakasi. Abstract This paper provides a description of the nature of hospital sector, with an emphasis on private hospital sector, in salem city. It highlights some of the characteristics of the hospital sector, namely its size, distribution, range of services offered, manpower employed, and price differentials for outpatient care. A preliminary comparison of 15 private hospitals suggests presence of price-competition for outpatient care. Type of ownership (within private sector) is observed to have little association with fee for outpatient care, occupancy rates, outpatients served per day, and manpower per bed employed. Private hospitals are concentrated in a few zones in the city area, but outpatient charges are not significantly different between zones with different levels of competition (although zones with greater competition have a higher charge than those with less competition). The study highlight Services marketing are a sub field of marketing which covers the marketing of both goods and services. Goods include the marketing of fast moving consumer goods (FMCG) and durables. Services marketing typically refer to the marketing of both business to consumer (B2C) and business to business (B2B) services. Common examples of service marketing are found in telecommunications, air travel, health care, financial services, all types of hospitality services, car rental services, and professional services.

Introduction

Services marketing are a sub field of marketing which covers the marketing of both goods and services. Goods include the marketing of fast moving consumer goods (FMCG) and durables. Services marketing typically refer to the marketing of both business to consumer (B2C) and business to business (B2B) services. Common examples of service marketing are found in telecommunications, air travel, health care, financial services, all types of hospitality services, car rental services, and professional services. A service, according to Vargo and Lusch (2004), is ‘the application of specialized competences (knowledge and skills) through deeds, processes, and performances for the benefit of another entity or the entity itself. Services are economic activities, rather than tangible products, offered by one party to another. Rendering a service to recipients, objects, or other assets depends on a time-sensitive performance to bring about the desired result. In exchange for money, time, and effort, service customers expect value from access to goods, labor, professional skills, facilities, networks, and systems; but they do not normally take ownership of any of the physical elements involved. Services Marketing

Services marketing are a relatively new phenomenon in the domain of marketing. It gained importance as a discipline towards the end of the 20th century. Services marketing first came into force in the 1980s when there was debate of whether the marketing of services was significantly different from that of products, and whether it should be classified as a separate discipline. Prior to this, services were considered as an aid to the production and marketing of goods, and were not deemed as having separate relevance on their own. The 1980s saw a shift in this thinking. As the service sector started to grow in importance in post-industrial societies and emerged as a significant employer and contributor to those nations' GDPs,

academia and marketing practitioners began to look at the marketing of services in a new light. Empirical research was conducted which brought to light the specific distinguishing characteristics of services. By the mid 1990s, services marketing was firmly entrenched as a significant sub-discipline of marketing with its own empirical research and data, growing significance in the increasingly service sector dominated economies of the new millennium. New areas of study in the field opened up and were the subject of extensive empirical research. This gave rise to concepts such as the product-service spectrum, relationship marketing, franchising of services, customer retention, and others. Product In case of services, the ‘product’ is intangible, heterogeneous and perishable. Moreover, its production and consumption are inseparable. Hence, there is scope for customizing the offering as per customer requirements and the actual customer encounter therefore assumes particular significance. However, too much customization would compromise the standard delivery of the service and adversely affect its quality. Hence particular care has to be taken in designing the service offering. Pricing Pricing of services is tougher than pricing of goods. While the latter can be priced easily by taking into account the raw materials and labour. The final price for the service is then arrived at by including a mark up for an adequate profit margin. Place Hospitals should be easily accessible to the patients and be adequately protected from pollution. Every hospital should try to make services available and accessible to its target consumers. While distributing health care accessibility with physicians, hospital admi-nistrators, donors, government, insurance companies, employers is needed. Thus hospitals have to take three major distribution decisions. They include physical access (channels, location, and facilities), time access and promotional access.

http://en.wikipedia.org/wiki/Marketing

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http://en.wikipedia.org/wiki/Car_rental

http://en.wikipedia.org/wiki/Professional_services

http://en.wikipedia.org/wiki/Marketing

http://en.wikipedia.org/wiki/Business_to_consumer



http://en.wikipedia.org/wiki/Hospitality_industry

http://en.wikipedia.org/wiki/Car_rental

http://en.wikipedia.org/wiki/Professional_services

http://en.wikipedia.org/wiki/Service_(economics)

http://en.wikipedia.org/wiki/Good_(economics)

http://en.wikipedia.org/wiki/Post-industrial_society


http://en.wikipedia.org/wiki/GDP



Promotion Since a service offering can be easily replicated, promotion becomes crucial in differentiating a service offering in the mind of the consumer. Thus, service providers offering identical services such as airlines or banks and insurance companies invest heavily in advertising their services. This is crucial in attracting customers in a segment where the services providers have nearly identical offerings. The final three elements of the services marketing mix - people, process and physical evidence - are unique to the marketing of services. People People are a defining factor in a service delivery process, since a service is inseparable from the person providing it. Thus, a restaurant is known as much for its food as for the service provided by its staff. The same is true of banks and department stores. Consequently, customer service training for staff has become a top priority for many organizations today. Process The process of service delivery is crucial since it ensures that the same standard of service is repeatedly delivered to the customers. Therefore, most companies have a service blueprint which provides the details of the service delivery process, often going down to even defining the service script and the greeting phrases to be used by the service staff. Physical Evidence Since services are intangible in nature, most service providers strive to incorporate certain tangible elements into their offering to enhance customer experience. Many hair salons invest in comfortable and stylish sitting areas with magazines and plush sofas for patrons to read and relax while they wait. Similarly, many restaurants invest heavily in their interior design and decorations to offer a tangible and unique experience to their guests. Statement of the problem The services sector comprises a wide array of industries that sell to individual consumers and business customers, as well as to government agencies and nonprofit organizations. Services make up the bulk of the economy in post-industrial societies and account for most of the growth in new jobs. Unless a person is already predestined for a career in family manufacturing or agricultural business, the probability is high that they will spend their working life in service organizations. The size of service sector is increasing in almost all economies around the world. As national economy develops, the relative share of employment among the agricultural industry, and the service industry change dramatically. Even in emerging economies, service output is growing rapidly and often repress Ordering Ease: Ordering ease refers to how easy it is for the customer to place an order with the company.

Delivery Ease: Delivery refers to how well the product or service is brought to the customer. It includes speed, accuracy, and care throughout the process. Installation: It refers to the work done to make a product or service operational in its planned location. Ease of installation becomes a true selling point, especially when the target market is technology novice. Customer Training: It refers to training the customer's employees to use the vendor's equipment properly and efficiently. In the age of Patient Empowerment and the trend towards patient consumerism, it’s important for doctors to market themselves to patients. Patients are making informed decisions about who they see, and who they trust, which is a good thing for healthcare. Many physicians like to eschew the idea that they are actually conducting business, let alone try to market themselves. A number like to pretend that medicine and business have nothing to do with each other, and that business pressures can only serve to pervert medicine. Medicine is big business, and natural market forces should create pressure to provide a better product. Patients need a better product. Patients should be seen as customers. Most of the hospitals provide poor customer service like long wait times, short visits, repetitive questioning, lack of patient-centric care, etc. Moreover the opinion about the services marketing of the hospitals from the administrators, doctors and nurses point of view will not give the accurate result. The reason is that one who is not ready to give bad opinion about their organization. Hence the researcher has planned to gather opinion form the customers (patients) of hospitals. The study will cover the private hospitals functioning in the Salem District. In the study area there are 20 private hospitals are involved in health care services. This study will provide the better understanding of the level of services marketing of the private hospitals form the customers’ point of view and the area need to be improved for the marketing the hospital services than the existing level. Scope of the study

The present study will cover the private hospitals of Salem District. In Tamil Nadu Salem District is one of the major industrial Districts and it consists the more number of population. Moreover the private hospitals in the study area are more in numbers and increasing in nature. Further this district connects the nearby states namely kerala and karnataka. People form the nearby states are also availing the health care services from the hospitals of the study District. Hence the researcher found that there is a vast scope to made this study. Objectives of the study

The following major objectives are framed for this proposed study. To analyse the profile of patients availing services in the private hospitals of salem District.

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To examine the opinion of the patients about the marketing practices of private hospitals under 7 Ps. To analyse the variables determining the opinion of the patients about the marketing practices of the selected private hospitals in the study area. Methodology and Sampling design This present study will be both descriptive and analytical in nature. It is planned to collect both primary and secondary data for analysis. The sample respondents cover the both inpatients and outpatients of the selected 20 private hospitals. It is planned to collect data from the 500 patients. Tools for analysis The following tools will be used for analysis Chi square independence test Independent sample t test ANOVA – One way and Two way Correlation Regression MANOVA Sampling Plan The survey is conducted only on the target population of different categories of hospitals as specified above. For the purpose of taking a sample, the details regarding the two categories of hospitals existing in salem District, have been obtained from

Indian Medical Association, salem District, Registrar of Companies and also from the medical practitioners who have adequate knowledge about this. Since there are two different categories of hospitals available in the District for the selection of samples, stratified random sampling was used. In salem District there are nearly 231 hospitals such as sole proprietorship hospitals, partnership hospitals, private limited and public limited hospitals. Out of these 10 hospitals are selected as the study units in general category including 3 hospitals in super specialty hospitals. The total number of respondents for this study is confined to 100 It is observed that (a) even though there are a number of medical practitioners who are under the category of sole-proprietorship, the selection of the sample was confined to the group which satisfy some pre specified requirements as a part of the design of the study. The sole- proprietors are required to have a minimum bed capacity of 10, attached to their hospitals, (b) with regard to the other categories, the criterion for inclusion in the target group are specified as follow. (i) Partnership hospitals should have a minimum of 20 beds, (ii) Private limited and public limited companies should have 50 beds or more and other minimal infrastructure facilities such as specialist services, clinical laboratories, x-ray, scanning etc.

Analysis and Interpretation of Data For this study the analysis are made by two classifications of factors. They are

Table – 2. Selection of Hospitals and Service Quality Assessment

Awareness of the specialists

Hospitals and Service Quality Assessment

Frequency Percentage

Family Doctors 52 52

Advertisements 32 32

Friends, Co-workers and Relatives 10 10

Any other 6 6

Total 100 100

Profession of doctors

M.B.B.S Doctors 84 84

Post-graduate (Specialist) 16 16

Foreign Doctors 0 0

Total 100 100

Special features or private

hospitals services

Regarding services 54 54

Regarding Facilities 22 22

Cost 16 16

Others (Specify) 8 8

Total 100 100



Core services of the private hospitals

Medical Store, x-Ray Scanning, Laboratories 56 56

Canteen 14 14

Travel Services 10 10

Any other 20 20

Total 100 100

Quality of private hospitals services

Time taken to offer service 40 40

More patients waiting for treatment 26 26

Fee 10 10

Doctors busy in attending patients 20 20

Doctors with supporting equipments 4 4

Total 100 100

About the expenses

Very low 40 40

High 12 12

Moderate 20 20

Very High 28 28

Total 100 100

Satisfaction regarding private hospitals services

Satisfied 76 76

Highly Satisfied 0 0

Dissatisfied 18 18

Highly dissatisfied 6 6

Total 100 100

Satisfaction regarding

Highly Satisfaction 66 66

Satisfaction 32 32

Findings

The analysis of the primary data collected by the researcher reveals the following.

Demographic Information The Majority 60% of the Respondents is male.

The Majority 48% are below 20 Years of

Respondents.

The Majority 62% are Married of Respondents.

The Majority 40% are Uneducated category of

Respondents.

The Majority 60% are Government Category of

Respondents.

The Majority 40% are 10,000 to 15,000 category

of Respondents.

The Majority 52% are Family Doctors category

of Respondents.

The Majority 84% are Foreign Doctors

category of Respondents.

The Majority 54% are Regarding Services


The Majority 56% are Medical Store, x-Ray

Scanning, Laboratories category of

Respondents.

The Majority 40% are Family Doctors category

of Respondents.

The Majority 40% are Very low of

Respondents.

The Majority 76% are satisfied category of

Respondents.



The Majority 66% are Highly Satisfaction


The Majority 56% of the Respondents are No

category.

The Majority 52% are Highly Satisfactory

category of Respondents

Suggestions Based on the analysis, the researcher recommends the following suggestions for the better marketing of the hospital services in the study area. They are: Patients are different types in the study area. Some of them take medical treatment for the time being diseases. But some other takes medical treatment for the chronicle diseases. Therefore fees concessions can be give to the patients who are taking treatments for their chronicle disease. Place discrimination of pricing of medical services is suggested to satisfy the rural and urban clients. This is because there is income disparity among the respondents in rural and urban areas. But it should be carefully done without affecting others. Today the number of hospitals are being established. Therefore there has been growing competition among the medical service providers. In order to fight with the competitors or to maintain the existing patients and to cover the potential patients, state-of-art facilities have to be established. Many hospitals in the study area are lacking additional facilities like blood testing centers, X-ray facilities and scanning facilities. Therefore clients have to be move from one place to another place for availing these additional services. Hence, hospitals have to concentrate more on adding additional services.

Conclusion

The marketing of hospital services is not an easy job many hospitals find it difficult to face the marketing functions. Strategies towards the marketing of medical services are carefully done. In Salem District, different hospitals are adopting different strategies to attract the potential patients. Similarly patients are carefully studying the services of hospitals before they choose a particular hospital. Pricing of hospital services, nature of medical services, cost considerations, equipments used, strategies adopted by the competitors, potential for development, population and income distribution of the area are the main factors have to be considered while taking marketing strategies towards medical services. In Salem District, marketing of medical services done by the hospitals are satisfactory one. But they must concentrate more on covering more patients in future. At the same time respondents taken in this study area are expecting highly qualified services from the hospitals. The quality of services assured in the advertisements and in any other form of marketing should be offered to the patients. As far as the present study is concerned, the marketing of medical services by the hospitals are better. Marketing strategies and plans should be taken in order to cope with the patients’ expectations. If the above said suggestions are accepted and fulfilled, both hospitals as well as patients will benefit much. The policy makers and administrators have to take appropriate policies in this regard. Reference material 1. Youssef et al., Journal of Service Marketing, Sep. 2010 2. Michal R.Bowers, “journal of Health Care Marketing, - June 2011 3. Croni J.J, Taylor S.A (2010) Measuring Service Quality, Journal of Marketing



INCOME TAX COMPLIANCE BEHAVIOR AND SECTOR-WISE CONTRIBUTION TO GOVERNMENT TAX REVENUE IN SRI LANKA

*MBM.Amjath **Vijayarani

_______________________________________________________________________________________________________

*PhD Research Scholar, Dept of Commerce, Annamalai University/Senior Lecturer Gr-I, Dept of Accountancy & Finance, South Eastern University of Sri Lanka **Professor and Head, Commerce wing- DDE, Annamalai University, Annamalainagar-608002, Chidambaram

Abstract This study explores the Analysis of income tax compliance behavior and sector-wise contribution to government tax revenue in Sri-Lanka. The objective of the study is to analyze the factor influences more in compliance behavior in the light of the income tax in Sri-Lanka context. This area of research did not appear to have been previously studies in Sri-Lanka context and in this respect the research represent an original contribution while research have been conducted in Sri-Lanka. Major part of the government revenue is collected through the well-defined system of administration for the survival of the country. The tax system helps the government to generate the public revenue for the economic development of the country. However tax revenue to GDP keep in decreasing trend in the previous years. The direct tax revenue was the one factor identified for such a situation. The income tax collection could be divided into corporate sector and non-corporate sectors. This study used quantitative component from which numbers of convergent results emerged. The percentages of income tax compliance from corporate and non-corporate sectors as key indicators were tested by using independent Samples test and correlation to draw conclusion. This study used secondary data collected from performance report of Inland Revenue department for a period of twelve years. The finding of the study indicates that both corporate and non-corporate sectors significantly difference in performance collection of income tax and do not have the same efficiency in income tax compliance behavior. Keywords: Income tax; compliance behavior; tax administration

Introduction:

Sri-Lanka has been keeping increase trend in emerging market economies, posting speedy rebound with Gross Domestic (GDP) growth averaging 8 per cent since the country saw an end to its prolong civil conflict in 2009. With an unemployment rate 4.2 per cent and an inflation rate of 6.7 per cent by end of 2011, Sri-Lanka at first glance appears to have weathered the global downturn remarkable well, and positioned itself for sustained growth and stability in medium term. Higher growth, with per capita GDP of US$ 2836 in 2011 has been accompanied by sharp improvement in managing absolute poverty across the country and falling income inequality, keeping with the government’s stated development goals of rapid and equitable growth. However the taxation is the main instrument through which the above target could be achieved absolutely. But, in developing countries tax compliance is a serious issues faced by government specially tax administration to generate revenue for public expenditure. Although various tax reform strategies undertaken by the government in number of instances, statistical evidence in developing countries has confirmed that the contribution of income tax to the government’s total revenue remained consistently low and it relatively shrinking (Nugi Nkwe, 2013). Further, from the all taxes, income tax has remained the most disappointing, inefficient, unproductive and problematic tax system (Nugi Nkwe, 2013 cited in Asada,2005; Kiabel & Nwokah, 2009; Nzotta, 2007;Odusola, 2006; Sani,2005). Sri-Lanka is also not exceptional from this point of view. Statement of problem:

Sri-Lanka’s the average revenue to GDP is less than 14.3 per cent in recent past years. It is a well below average performance of middle income countries whereby the ratio is in the region of 20 per

cent; IPS (2012). For a instance, tax revenue to GDP is one third in rich countries while it is 17 per cent in Latin America and Caribbean countries; Lumuba Omweri Marti, Migwi S. Wanjohi, Obara Magutu (2010). In Sri-Lanka, the tax revenue to GDP keeps in reducing trend for a long period of time. There may be many reasons for such a situation. However, the taxpayers’ compliance behavior is expected to be one of the specific reasons for that reducing trend. The compliance behavior shows very poor performance from 2000 to 2012 in both corporate and non-corporate sectors in Sri-Lanka. Therefore the researcher attempts to investigate at length the income taxpayers’ compliance behavior as a major reason for this reducing trend in government revenue. It could be seen clearly that tax revenue collection to GDP was not achieved in an acceptable point. It could be observed in the table-1. Table-1

Years Tax revenue(SLR) Million

GDP(SLR) Million

% Tax revenue to GDP

2000 116285 1,125,259 10.33%

2001 133230 1,245,599 10.70%

2002 137609 1,403,286 9.81%

2003 139043 1,562,737 8.90%

2004 164803 1,797,941 9.17%

2005 198300 2,098,323 9.45%

2006 253344 2,938,680 8.62%

2007 308205 3,578,688 8.61%

2008 344571 4,410,682 7.81%

2009 353015 4,835,293 7.30%

2010 422512 5,602,321 7.54%

2011 443830 6,542,663 6.78%

2012 443456 7,582,376 5.85

Source: Central Bank Annual Report 2011



Objective of the Study:

The total revenue generated by the IRD is categorized under the direct and indirect tax system. For this study, the researcher focus on the direct tax that showed only about 27 per cent, of total revenue collection in 2010 by Inland Revenue Department (IRD) of Sri-Lanka (Performance Report 2010). The objective of the study is to increase tax revenue of the government of Sri-Lanka. Identify factors affect the tax compliance behavior. Hypothesis: Hypothesis for this study has been developed considering percentage of positive attitude towards tax compliance behavior of taxpayers on due time and within one month from the due date for corporate and non-corporate sectors is given as follows. Ho: There is no difference in sectors-wise contribution in tax compliance rate. H1: There is difference in sectors-wise contribution in tax compliance rate. Methodology Data used in this study have been collected from Performance Report for various years of Inland Revenue Department considering the total income tax return compliance of corporate tax and non-corporate sector. These data were gathered for 12 years period from 2000 to 2012 for this study. Table 2 shows total income revenue and sector-wise contribution to income tax. Correlation and regression analyses were run in this study. Chi-square test at 5 percent level of significance is to be performed to ensure the influence of tax positive compliance behavior among the both sectors. Literature Review Taxpayers’ behavior can be explained in connection with tax compliance behavior of an individual. A study conducted in Malaysia among 1073 respondents of individual taxpayers explored that four underlying factors such as tax rate, probability of being audited, perception of government expenditure and the role of tax administrators are significantly influences on the impact of tax compliance behavior Mohd Rizal Palil, Mohamed Abdul Hamed, Mohd Hizam Hanafiah(2013). The term tax compliance has been defined many researchers in various situation from many countries. A very simple definition described that the tax compliance is the taxpayers’ willingness to pay their taxes Kirchler (2007). In another research, the tax compliance explained that the taxpayers’ willingness to obey tax laws to maintain an economic equilibrium in a country Andreoni et al. (1998). Song and Yarbrough (1978) explained about tax compliance that the taxpayers’ ability and willingness to comply with tax laws that are determined by ethics, legal environment and other situational factors at a particular time and place. On the basis of psychological and economic point of view as an issue

of ‘reporting an actual income’ and further claim that tax compliance behavior is influenced by enjoying of tax evasion; or paying a penalty tax on the undeclared amount at a rate which is higher than the taxpayer would have paid had the income been fully declared within the specified time Allingham and Sandmo (1972). As similarly, several tax authorities, including the Malaysian tax authority, define tax compliance as the ability and willingness of taxpayers to comply with tax laws; declare the correct income in each year; and pay the right amount of taxes on time (Mohd Rizal Palil, Mohamed Abdul Hamed, Mohd Hizam Hanafiah(2013), cited IRS 2009; ATO 2009; IRB 2009). Alm (1991) and Jackson and Milliron (1986) define tax compliance as the submission of report regarding all incomes and payments of all taxes by considering laws, regulations and court judgments. Another definition of tax compliance is a person’s act of filing their tax returns; declaring all taxable income accurately; and disbursing all payable taxes within the stipulated period without having to wait for follow-up actions from the authority (Singh 2003). Furthermore, tax compliance has also been examined from two perspectives: compliance in terms of administration; and compliance in terms of completing (accuracy) the tax returns (Mohd Rizal Palil, Mohamed Abdul Hamed, Mohd Hizam Hanafiah(2013)cited in Chow 2004; Harris 1989). McBarnet (2001) explained tax compliance in three ways: committed compliance, which refers to taxpayers’ willingness to pay all the taxes on time; capitulative compliance, which describes the situation where taxpayers reluctantly ‘give in’ and pay taxes; and creative compliance is a tax avoidance where taxpayers attempt to reduce taxes by taking advantage of possibilities to redefine income and deduct expenditures within the bracket of tax laws. Spicer and Lundstedt (1976) identify that tax compliance as ‘a special form of gambling’ where they may involve likelihood of detection and pay penalties and requires the tax authority to understand the factors underlying taxpayers’ decision to comply with tax laws Based on the definition provided in the previous studies tax compliance can be explained as tax payers’ willingness to comply with tax law declare the correct income claim the correct deduction relief and rebates and pay all taxes on time Mohd Rizal Palil, Mohamed Abdul Hamed, Mohd Hizam Hanafiah(2013) However tax payers’ behaviors are influenced by tax rates, tax audits, perceptions toward government spending, and the role of the tax authority. Authority use tax rate as instrument reduces to reduce tax evasion and increase tax compliance behavior Clotfelter (1983). An increase in marginal tax rate will result in encourage the potential tax payers to evade tax (Witte & Woodbury 1985; Ali et al. 2001; Torgler 2007). And also substantiated in a study in US by Tanzi (1980), which uses an econometric model to analyze in an effort to explain the relationship between marginal tax rates and evasion, finds that tax



rates are positively correlated with tax evasion. But, the tax compliance behaviors cannot be expected to increase when the tax rate is reduced (Trivedi et al. 2004; Kirchler 2007). However, another study of statistical modelling the existence of relationships between actual income, tax rates, penalties and investigation; and tax evasion by Allingham and Sandmo (1972) concluded that tax rate is insignificant in determining tax evasion. In contrast to the above arguments, it explores in another economic model that increasing tax rates will increase compliance behaviour (Kirchler et al.2008). At the same time, various studies find that increasing tax rates encourages non-compliant behavior or produces mixed findings (see Pommerehne & Wech-Hannemann 1996; Park & Hyun 2003). But Porcano (1988) explains that tax rates have no effect on tax compliance, while most experimental studies find that increasing tax rates leads to tax evasion (Alm et al.1992; Friedland et al. 1978; Park & Hyun 2003). Another important point in this scenario is that the government should step forward to build up confidence on their fiscal activities towards the taxpayers. Then when there is a good trust among them, even high tax rate is treated as contribution to the community. Otherwise the tax payers’ point of view high tax rate can be perceived as unfair treatment when the trust is low Kirchler et al. (2008). In summary, evidence suggests that tax rates have a mixed impact on tax payers’ behavior on compliance. According to extant studies tax payers’ behavior does not depend on the tax rate, decreasing tax rates will not necessarily increase compliance (Kirchler et al. 2008), while increasing tax rates will not necessarily decrease compliance (Allingham & Sandmo 1972). The second instrument that affects the tax payers’ behavior is tax audit experience. When the government implement proper tax audit then the tax payers will report all their profit and income completely on time and enjoy the available deduction (e.g., Jackson & Jaouen 1989; Shanmugam 2003;Dubin 2004). But, taxpayers who face first audit may afraid to report less than their actual income and claim false deductions. Further some studies also substantiated that the tax audit practice will increase the tax compliance behavior Butler (1993), and Witte and Woodbury (1985) and Beron et al. (1988). Another research on small proprietor also finds that there is significant evidence among the tax audits and tax payers’ behavior in compliance Woodbury (1985). In contrast, another study revealed that the tax audits do not significantly correlate with evasion for all of the groups examined in the study Beron et al. (1988). Taxpayers use the tax audits as more effective way to claim the available deductions rather than interest in reporting actual income correctly on time (Beron et al.1988). Dubin et al. (1987) find that higher audit rates often have a positive impact on income tax reporting, but audit rates are not always statistically significant. It is advisable to taxpayers; to audit their income statement themselves before compliance otherwise they have to pay more in taxes when audit

rates increase. From another point of view, Evans et al. (2005) explores the tax compliance of small and medium size enterprises (SME) in Australia finds that audit history (including frequency of audits), audit outcome and the type of audit of small business owners have a significant indirect impact on tax compliance (in terms of record keeping). The third point of the tax payers’ behavior related to public expenditure. Large tax payers expect whether the government makes wisely expenditure. However, majority of professionals’ private earning are not included in the tax net. Lewis (1982) suggests that feelings the tax payers should be considered to the degree to which they are a product of myth and misperception and also claims that misperceptions may play a major role in shaping fairness evaluations. Perhaps the tax payers behavior on tax evasion may be vary person to person Roberts et al. (1994). Meanwhile, if the government is wisely make public expenditure for basic facilities, such as education, health and safety and public transportation, it is to be expected to increase voluntary compliance. In contrast, if taxpayers perceive that the government makes unworthy public expenditure or unbeneficial to them, then taxpayers will feel betrayed and attempt to evade paying taxes. Finally it is a debatable issue that the tax authority of the government influences on the tax payers’ behavior. There are different views from various countries with their experience. The important role of the tax authority is to minimize the tax gap and increase voluntary compliance behavior. The tax authority, as a principal revenue generating agent of the government must implement efficient administration continuously in order to minimize tax evasion. The government plays a central role by designing the tax system itself, as well as passing relevant bill at parliament for the specific enforcement mechanisms (Hasseldine & Li 1999). Moreover an economical tax system, respected by taxpayers, which is practicable in order to increase compliance behavior, maximize tax revenue must be adopted by the government to discourage tax evasion and not induce dishonesty. Further, they must avoid the tendency to dry up the source of the tax and should avoid provoking conflict and raising political difficulties; and they should also have a good relationship with the international tax regime Roth et al. (1989). A recent study also substantiates that the role of the government has a significant positive impact on determining behavior toward tax. Further the government should increase their reputation and credibility in order to gain trust from the taxpayers Richardson (2008). Another conceptual and empirical economists research on “taxpayers’ behavioral responses and measures of tax compliance gaps a critique” analyzed tax gaps in the light of tax rate. It indicates the tax cap analyzing helps to increase the tax compliance rate to generate some amount of revenue Norman Gemmell and John Hasseldine (2013). Further they



explained that tax gap is the different between actual tax collected and the potential tax collection under full compliance. Moreover tax payers’ behaviors were analyzed in the light of effective tax rate. Rohaya Md Noor,Nur Syazwani M. Fadzillah and Nor Azam Mustuki (2010). Generally speaking tax non-compliance is a serious issue and challenge to the tax administration in generating government revenue in developing countries. Although various steps taken by the government of Sri-Lanka in many occasion it could not be achieved its target. It might be reason for the tax amnesty implemented in 2003. However, income tax compliance on time for non-corporate sector shows less than 43 per cent for the last twelve. IRD should consider seriously both sectors to increase compliance on time. The following table indicates income tax compliance both corporate and non-corporate sectors.

Income tax Return Compliance Table-2

Year of Assessment

Compliance on time

Compliance within one month from due date time

Sectors % Sectors % Corporate Non-

Corporate Corporate Non-

Corporate

2000/2001

34 32 42 45

2001/2002

32 33 44 46

2002/2003

31 32 48 47

2003/2004

50 32 58 41

2004/2005

37 28 43 41

2005/2006

34 33 44 44

2006/2007

36 26 42 42

2007/2008

37 27 55 50

2008/2009

49 39 58 48

2009/2010

52 41 66 53

2010/2011

56 42 68 59

2011/2012

56 39 60 48

2012/2013

56 42 68 59

2013/2014

56 39 60 48

Source: Performance from various years IRD

Group Statistics

Compliance on Date N Mean

Std. Deviation

Std. Error Mean

pertage Percentage-1

1 Corporate

12 42.00 9.723 2.807

2 Non-Corporate

12 33.67 5.433 1.568

Independent Samples Test

Statistics

Percentage-1

Equal variances assumed

Equal variances not assumed

F 13.223

Sig. .001

T 2.592 2.592

Df 22 17.258

Sig. (2-tailed) .017 .019

Mean Difference 8.333 8.333

Std. Error Difference 3.215 3.215

95% Confidence Interval of the Difference

Lower 1.665 1.557

Upper 15.002 15.109

Group Statistics

Compliance .within one month N Mean

Std. Deviation

Std. Error Mean

perntage Percentage-2

1 Corporate

12 52.33 9.633 2.781

2 Non-Corporate

12 47.00 5.240 1.513

Correlations

corpernt noncorpecnt

Corpernt Pearson Correlation 1 .757**

Sig. (2-tailed) .004

N 12 12

noncorpecnt Pearson Correlation .757** 1

Sig. (2-tailed) .004

N 12 12

**. Correlation is significant at the 0.01 level (2-tailed).

Conclusion The test result shows t statistic of 2.592 with 17.258 degree of freedom. The corresponding two-tailed p- value is 0.019, which is less than 0.05 but higher than 0.01. Therefore, we reject the null hypothesis and accepted alternative hypothesis at 5% significant level, which means that the average compliance



performance of the two sectors is significantly different from each sector. That means two sectors do not have the same efficiency in income tax compliance behavior. However at 1% significant level, the null hypothesis will have to be accepted since the p- value is greater than 0.01. This means that at 1% significant level, the claim that the efficiency of the two sectors is same performance. Recommendation The individual taxpayers under the non-corporate sector, includes large numbers of informal sector business organization without registering their firms. Apart from the difficulty of bringing such sectors into the tax net, individual incomes within the sector are low, while costs of collection and overall administrative burden are very high, owing to the large numbers of individual firm and the difficult to monitoring. However, taxation of the non-corporate sector appears to be a potentially important source of government revenue, as in many countries, it show growing share of GDP in long term. Therefore, the government makes necessary steps to bring them into formal organization where they can enjoy many facilities like formal organization. It will help to make them culture of tax compliance. Further, it is suggested that the failure of informal sector to pay taxes, can be considered unfair treatment to the formal organization. This may lead to immoral tax behavior and discourage the tax compliance among the corporate sector and the noble taxpayer leading to reduce government revenue. So

the government should serious action considering these facts. Reference: Alm, J. 1991. A perspective on the experimental analysis of taxpayer reporting. The Accounting Review 66(3): 577-93. Nugi Nkwe.(2013). Tax Payers’ Attitude and Compliance Behavior among Small Medium Enterprises (SME) in Botswana Business and Management Horizons. Lumuba Omweri Marti, Migwi S. Wanjohi, Obara Magutu (2010). TAXPAYERS’ ATTITUDES AND TAX COMPLIANCE BEHAVIOUR IN KENYA. African Journal of Business & Management (AJBUMA) Inland Revenue Department (IRD) of Sri-Lanka (Performance Report 2010). Mohd Rizal Palil, Mohamed Abdul Hamed, Mohd Hizam Hanafiah(2013). Taxpayers Compliance Kirchler, E., 2007. The Economic psychology of Tax Behavior Cambridge: Cambridge University Press. Andreoni, J, Erard, B. & Feinstein, J. 1998. Tax compliance. Journal of Economic Literature 36:818-60. Song, Y. D. & Yarbrough, T.E. 1978. Tax ethics and Taxpayer attitudes: A survey. Public Administration Review 38(5): 442-452. Allingham, M.G. & Sandmo, A. 1972. Income tax evasion: A theoretical analysis. Journal of Public Economics 1(3-4): 323-38. Jackson, B.R, & Milliron, V.C. 1986. Tax compliance research: Findings, problems and prospects. Journal of Accounting Literature5:12565. Singh, V. 2003. Malaysian Tax Administration. 6th edition. Kuala Lumpur: Longman. Chow, C.Y. 2004. Gearing up for the self assessment tax regime for individuals. Tax National 2nd quarter:20-23. Harris, T.D. 1989. The effect of type of tax knowledge on individuals’ perceptions of fairness and compliance with the federal income tax system: An empirical study. Unpublished PhD thesis, University of South Carolina.



RELATIONSHIP BETWEEN COST AND SALES WITH EFFECT TO PROFITABILITY

*Arun Kumar **M.Joaquin Mary

_______________________________________________________________________________________________________

*Asst .Prof. , Achariya school of Business and Technology, Pondicherry. **MBA-2nd year, Achariya school of Business and Technology.

Abstract This research paper focuses on the issue of inventory management and the part thereof, basically the cost of holding inventory and its impact on the profits and sales of the company with the help of inventory management tools, Ratio analysis, Common size Income statement, Comparative Income statement, Common size Balance sheet and Trend analysis .The purpose is to find out the ways of managing the inventory properly, so that there would be a little impact on the profits and sales with effect to profitability of the company. To carry out the research, the researcher has taken BHEL, as the target company, the study is Descriptive in nature, and the time horizon is cross sectional. Key Words:- Inventory Tools, Cost of holding inventory: operating profit, gross profit, cost of goods sold.

Introduction about Rashtriya Chemicals And Fertilizers:- Rashtriya Chemicals and Fertilizers LTD (R.C.F). The largest Govt. of India undertaking in Maharashtra was found on 6th March 1978. Besides , the manufacturer of fertilizers . it is also known for industrial products. It plays a major role in industrial products. It also plays a prime importance in industrial and agriculture sector of the Indian economy. R.C.F consist of number of manufacturing plants, popularly known as trombay complex located at chembur. Bombay and Thal, vaishet. Fertilizer complex at the thal is having most modern Ammonia and urea plants. Vision and Mission Statement

Vision Statement:- R.C.F shall be a well respected world class corporate with progressive growth in core and non-core areas achieving highest standards in efficiency, profitability ,environment protection and Corporate social responsibility through operational excellence and ethical business culture. It will strive to provide world class services to its customers and continually enhance shareholder values. Mission Statement:- R.C.F’s mission is to achieve continuous improvement in existing operations and strive for all round growth through expansion, diversification, innovation and productive research and development. We shall imbibe exemplary work culture and shall have highest degree of commitment to customers and stakeholders. Introduction about the Project:-

The relationship between Cost and Sales with effect to profitability is important concept for today’s condition without controlling over cost its make drop down at all time. The relationship between Cost and Sales with effect to profitability can be defined as comparative analysis of actual costs with appropriate standards or budgets to facilitate performance evaluation and formulation of corrective measures. It aims at accomplishing conformity between actual result and standards or budgets.

The relationship between Cost and Sales with effect to profitability is not perhaps the most exciting task in the world (especially if we have to spend many hours doing it every week) but if we don’t perform this job well, the effects can be both quick and direct in terms of its impact and we may then have to commit almost all of our time and energy to it. It’s therefore a good idea to spend quality time on developing and maintaining an effective The relationship between Cost and Sales with effect to profitability system which can help us to keep on top of our own or the team’s expenses, well before these get out of control. Costs are the direct and indirect costs of earning revenue. We match the revenue earned with the expenses of earning that revenue to calculate the profit. This “margin” can be calculated for the overall enterprise or for an individual department where it is run as a profit centre. The relationship between Cost and Sales with effect to profitability has following features: a) Creation of responsibility center with defined authority and responsibility for cost incurrence. b) Formulation of standards and budgets that incorporate objectives and goals to be achieved. c) Timely The relationship between Cost and Sales with effect to profitability reports (responsibility reporting) describing variance between budgets and standards and actual performance. d) Formulation of corrective measures to eliminate and reduce unfavorable variances. e) A systematic and fair plan of motivation to encourage workers to accomplish budgetary goals. f) Follow-up to ensure that corrective measures are being effectively applied. The relationship between Cost and Sales with effect to profitability does not necessarily mean reducing the cost but its aim is to have the maximum utility of the cost incurred. Thus its main objective is the performance of same job at a lower cost or better performance for the same cost. The basic profit calculation formula for any commercial business is Profit=Revenue less expenses. As a result, at its most simple level, reduction in costs or expenses will increase profit. The process or activity on controlling costs associated with an activity, process, or company. The relationship between Cost and Sales with effect to profitability typically includes



(1) investigative procedures to detect variance of actual costs from budgeted costs, (2) diagnostic procedures to ascertain the cause(s) of variance, and (3) corrective procedures to effect realignment between actual and budgeted costs. Review of Literature:- Dorina Budugan (2008)1 Given the existing risks and competition conditions, company management needs management accounting, which is a component of the company’s accounting system and is designed solely to help managers in the decision-making process. Due to the diversification of the production and sale activities, there has become imperative, from the viewpoint of company organization, operation, equipment and even earnings and costs, an alternative to the full costing method. This is the direct costing method employed to calculate costs, which is based on those costs that are closely and directly connected to the operation volume. This method is actually more than a cost calculation method; it is a short-term earnings calculation method, which makes these costs a useful company management tool. This paper is designed to explain, by means of concrete examples, the way in which operation conditions changes influence the earnings estimated by means of the cost-volume-profit analysis, as well as the implications of these changes on the decisions to make. Andreas Hinterhuber (2003)2 Despite a recent surge of interest, the subject of pricing in general and value-based pricing in particular has received little academic investigation. Yet, pricing has a huge impact on financial results, both in absolute terms and relative to other instruments of the marketing mix. The objective of this paper is to present a comprehensive framework for pricing decisions which considers all relevant dimensions and elements for profitable and sustainable pricing decisions. The theoretical framework is useful for guiding new product pricing decisions as well as for implementing price-repositioning strategies for existing products. The practical application of this framework is illustrated by acase study involving the pricing decision for a major product launch at a global chemical company. Iryna V.Chaus (2011)3 The article deals with the method of managing profit – «CVR analysis». The features and main problems of using this method in practice have been pointed out. An improved approach of CVR analysis, namely the use of the management approach to cost sharing as an alternative to traditional, one has been offered.

Mihaela Dunitran (2013)4Accounting information, especially managerial accounting information was prepared, used, analyzed and provided in books and articles mostly for manufacturing companies and not for other types of businesses. In addition, most

accounting researchers interested in service production have conducted their research in non profit, public sector organizations (Olson et al., 1998). Very little is yet known about management accounting in tourism enterprises and especially in hotels (Pellinen, 2003). So that we think that it will be interesting to analyze how managerial accounting information is used in decision making in hospitality business. In our paper we have presented how information about costs influences the quality of the process of decision making. Mihaela Tulvinschi(2011)5Cost is in reality an interface between financial accounting and

management accounting. The aim of the paper is to determine the need and opportunity of the cost - volume – profit analysis for the economic entities in the field of agriculture. Taking into account the peculiarities of agricultural production, the research is based on analysis of the following indicators: the threshold of profitability, coverage factor, the factor of balance and safety. The results of our research suggest that cost - volume – profit analysis is a necessary tool for cost forecasting as well for management cost control. The opportunity of such an analysis in the agricultural sector is justified through that it helps the managers find the best cost, in the sense of the most adequate cost for their administrative problems. The best cost for a firm isn’t necessarily the lowest, but that cost that comes at the right time. This analysis is necessary to evaluate new types of crops to plant and to undertake studies on the structure of sale Chrisann (2006)6 Coupled with significant debate over the last several decades about the state of accounting education per se, including concerns about the use of transmissive models of teaching and inattention to the development of students’ generic skills, introductory subjects in accounting have also been the target of considerable criticism. In particular, the narrow content and technical focus of such subjects has come under attack, as has the quality of the student learning experience, given the influence that this experience may have on students’ perceptions of accounting and their subsequent choice of major and career. In this paper we examine a number of these issues and build a profile of the current curriculum of introductory accounting subjects based on a review of subject outlines and textbooks and a cross-sectional survey of the objectives, content, and teaching delivery strategies of these subjects in Australian universities (n=21). The research is particularly germane given the current climate of university reform where distinctions can be made not only on the basis of notions concerning ‘old’ (or traditional) and ‘new’ curricula and teaching methods, but also between ‘old’ and ‘new’ universities and those which service metropolitan or regional areas. There was a twofold purpose to the research, being:(1) to provide a benchmark against which universities can compare their own curricula, and which may also provide useful information to



professional bodies, and (2) to assess if there are apparent differences in the way particular groups of universities have designed and delivered the initial subject in accounting. The results provide a range of information for benchmarking IA subjects in terms of learning objectives, subject orientation, topics, assessment, and innovations in teaching delivery and learning strategies. The results also indicate that curriculum and teaching and learning strategies across ‘new’ and ‘old’ universities, and regional and metropolitan universities, are generally comparable. Lagos, Nigeria(2009)8 This study pack coupled with the positive impact the initiative had on the

performances of professional examination candidates, and other users of the Study pack, encouraged the Institute to produce this second edition. Through the review of the Institute‟s professional examination syllabus, which occurs every five years, several innovations were introduced into the curriculum. The advent of the new 15 - subjects (as against the old 19 - subjects) syllabus provided an auspicious moment for the Institute to review and update the existing study packs in the various subjects while new ones were produced for newly introduced subjects. H. Wijewardena(1999)10 This paper is based on the findings of a questionnaire survey conducted on large manufacturing firms in Australia and Japan during 1997. The results of the survey have revealed a number of important differences between the two countries. For example, while management accounting practices of the Australian companies place an emphasis on cost control tools at the manufacturing stage, those of the Japanese companies devote a much greater attention to cost planning and cost reduction tools at the product design stage. Further, the Japanese companies seem to have introduced more frequent changes to management accounting practices than their Australian counterparts

Needs of the study:- • The inventory has been physically verified year-

by-year by the management. In our opinion, the frequency of verification is reasonable to suggest and improve the effectiveness The relationship between Cost and Sales with effect to profitability. But it’s advisable to have stock in an inventory twice in a year

• The R.C.F. is maintaining records of inventory. The discrepancies noticed on verification between the physical stocks and the books records were not material and the same has been dealt in this study.

• The procedures of physical verification of inventories followed by the management are reasonable and adequate in relation to the size of the R.C.F and the nature of its business.

• This study aims at analyzing the cost and sales with effect to profitability of the R.C.F by using various financial tools to make effective The

relationship between Cost and Sales with effect to profitability.

Objectives of the study:- • To study about the effectiveness of The

relationship between Cost and Sales with effect to profitability at RASHTRIYA CHEMICALS & FERTILIZERS LTD.

• To study The Financial Performance of R.C.F. costing

• Verification of The relationship between Cost and Sales with effect to profitability of R.C.F.

• To Know Efficiencies of The relationship between Cost and Sales with effect to profitability Performance of R.C.F.

• To compare and analyze the financial statement for the past five financial years.

• To study the growth and development of R.C.F. • To study the trends in finance and analyze

various element in financial analysis. Research Methodology: RESEARCH: Research is a process in which the researcher wishes to find out the end result for a given problem and thus the solution helps in future course of action. The research has been defined as “A careful investigation or enquiry especially through search for new facts in branch of knowledge”.

Research Methodology:- Research methodology is a way to systematically solve the research problems it may to understand as a science of studying how research is done scientifically. Research Methodology is a way to find out the result of a given problem on a specific matter or problem that is also referred as research problem. In Methodology, researcher uses different criteria for solving/searching the given research problem. Different sources use different type of methods for solving the problem. If we think about the word “Methodology”, it is the way of searching or solving the research problem. Research Design:

The research design is the conceptual

structure with in which the research is conducted it constitute the blueprint for the collection measurement an analysis of data. This study is an “analytical research” the researcher has to use facts or information already available and analyze these to make critical evolution of the study. TABLES:-

1) Absolute liquidity Ratio:- Cash and Bank balance + Marketable Securities/ Current liability.



Even though debtors and bills receivables are considered as more liquid than inventories, it cannot be converted into cash immediately or in time. Therefore while calculating of Absolute liquid ratio only the absolute assets like cash in hand and cash at bank, short term marketable securities are taken into consideration to measure the ability of the company in meeting short term financial obligation. It calculates by absolute assets dividing by current liabilities.

Interpretation:- Absolute liquid ratio explains the cash position of the company and liquid liabilities. In this study period the company’s liquidity position is very high in the year 2010 with 0.5904. this shows it is unfavorable in nature. Fixed Asset Ratio:- Fixed Asset/ Long term funds. The ratio establishes the relationship between fixed assets and long term funds. The objective of calculating this ratio is to ascertain the proportion of long –term funds invested in fixed assets. An ideal fixed assets ratio is 0.67.

2) Debt equity Ratio= Long term debt/

shareholder’s fund. This ratio is ascertained to determine long term solvency position of a company. Debt equity ratio is also called external- internal equity ratio.

Interpretation:- The ideal ratio of debt equity is 1. It studies the long term debt , shareholders funds. The study tells the financial position is high in the year 2009 (0.8512) so it is unfavorable in nature. 3. Proprietary Ratio= Shareholders Fund/Total Tangible Asset.

This ratio compares the shareholders fund or owner’s fund and total tangible assets. In other words this ratio expresses the relationship between the proprietors fund and the total tangible assets.

Interpretation:- This ratio shows the general soundness of the company . it is of the particular interest to the creditors of the company. The ideal ratio is 0.5. this study shows the highest point in the year 2013 with 1.59. so thus it is unfavorable in nature. TREND ANALYSIS:-

Trend analysis used for comparing the financial statement of a firm over a number of year, when the number of year is more than two, trend analysis is more appropriate trend analysis involve the calculation of percentage relationship of each items in the statement that bears to the same item in the base year.

Interpretation:- Trend analysis is a taking of the trend percentages of all the year in concern of the current year over base year. In this study it shows that 2010 (102.5918) ranks the higher percentage as compared to all the remaining years and 2011(80.49739) ranks the lowest percentage of all the remaining years. Findings:- 1) Absolute liquid ratio explains the cash position of

the company and liquid liabilities. In this study period the company’s liquidity position is very high in the year 2010 with 0.5904. this shows it is unfavorable in nature.

2009 2010 2011 2012 2013

0.246599728

0.590470673

0.493643046

0.227324874

0.066338662

2009 2010 2011 2012 2013

0.851282695

0.738242712

0.257788212

0.063630707

0.05258782

2009 2010 2011 2012 2013

1.55319544

1.471620517

1.562260075

1.547788059

1.591122478

2009 2010 2011 2012 2013

100 102.591

8 80.49739

94.82728

99.49743



2) The ideal ratio of debt equity is 1. It studies the long term debt , shareholders funds. The study tells the financial position is high in the year 2009 (0.8512) so it is unfavorable in nature.

3) This ratio shows the general soundness of the

company . it is of the particular interest to the creditors of the company. The ideal ratio is 0.5. this study shows the highest point in the year 2013 with 1.59. so thus it is unfavorable in nature.

4) Trend analysis is a taking of the trend percentages of all the year in concern of the current year over base year. In this study it shows that 2010 (102.5918) ranks the higher percentage as compared to all the remaining years and 2011(80.49739) ranks the lowest percentage of all the remaining years

Suggestions:-

As a researcher on the basis of analysis, the researcher has found the following suggestions for the betterment of the relationship between cost and sales with effect to profitability in RCF.

In order to increase the financial efficiency of R.C.F, it is suggested to control over administrative and other expenditure.

The management should be dynamical adopt the cost control techniques in their company to get out the problem of loss .

Make to balance both the side for profit and service oriented by R.C.F. .

As my suggestion is that the company have to motivate the employees who are working in the organization and have to conduct periodically meeting to their worker and considered their opinion how for the development of companies objective.

The corporation have to adopt cost control technique and various inventory control technique.

References:- 1) Chadwick, L., Contabilitate de gestiune, Editura Teora,

Bucuresti, 1998 Garrisson, R.H., Noreen E.W., Brewer, P.C.,

Managerial Accounting , McGraw- Hill Irwin, 2008. Innes, J., Handbook of Management Accounting, CIMA Publishing, 2004 Needles Jr., B.E., Anderson, H.R.,Caldwell, J.C., Principiile de bază ale contabilităŃii (Principles of Accounting), translation by LeviŃchi, R., Arc Publishing, Chisinău, 2000 Oger, B., La gestion par l'analyse des coûts, Press Universitaires de France, Paris, 1994.

2) Alldredge, K. G., Griffin, T. R., & Kotcher, L. K. (1999). May the sales force be with you. McKinsey Quarterly, 3, 110– 121.Anderson, J., Jain, D., & Chintagunta, P. (1993). Customer value assessment in business markets—A state-of-practice study. Journal of Business- to-Business Marketing, 1(1), 3 –20.Armstrong, J. S., & Collopy, F. (1996). Competitor orientation—Effects of objectives and information on managerial decisions and profitability.Journal of Marketing Research, 33(2), 188–199.

3) Atkinson, H. and Brander Brown, J (2001) – Rethinking

performance measures: assessing progress in UK hotels, International Journal of Contemporary Hospitality Management, Vol. 13, No.3, pp 128-135



A STUDY ON WOMEN EMPOWERMENT IN HYDERABAD *P.Durga Sailaja

*Nisha Begum **Faimunissa Ahmed Khan

_______________________________________________________________________________________________________

*Asst. Professors of TKR Institute of Management & Science **Asst. Prof of Academy of Management Studies, Himayath Sagar Road, Kismatpur, Yenkapalli

Abstract Hyderabad is witnessing a rapid expansion both in terms of Human settlement and industrial boom coupled with high population growth rate. This rapid Urbanization resulted in increasing the pressure on change in land use, environment degradation and on infrastructure due to migration of people from rural areas.etc. In the country like India, there is gender imbalance in areas of education, training and professional work. Still there are many areas where the women are not given much importance to take their decisions on their own self needs. Much priority is not given for them in the family as well as in the society. The women who are working in the organizations are also facing some problems in handling different situations. Keeping in view all these issues, in our study we focused on the importance of the education in a women’s life and the role of women in the development of the society and the country through empowerment. The sample size that is considered for the study is 100 and questionnaire is used for gathering the primary data of the study. For analyzing the data that is gathered, percentage method is used. Keywords: women empowerment, Gender equity and poverty Alleviation.

Introduction Empowerment means moving from enforced powerlessness to a position of power. Education is an essential means of empowering women with the knowledge, skills and self-confidence necessary to fully participate in the development process. Sustainable development is only possible when women and men enjoy equal opportunities to reach their potential. Women bear almost all responsibility for meeting basic needs of the family, yet are systematically denied the resources, information and freedom of action they need to fulfill this responsibility. Structural barriers in the economic, social, political and environmental spheres produce and reinforce these inequalities. Obstacles to women’s economic and political empowerment, and violence against women and girls, are barriers to sustainable development and the achievement of human rights, gender equality, justice and peace. Across much of the world, either by law or custom, women are still denied the right to own land or inherit property, obtain access to credit, attend school, earn income and progress in their profession free from job discrimination. Women are significantly under-represented in decision-making at all levels. Review of Legislation The National Commission for Women, as per its mandate, has started reviewing all the 39 legislations which have a bearing upon women. So far, it could complete review of 14 legislations. Based upon their recommendations, the nodal Department of Women and Child Development, in consultation with the Ministry of Law & Justice and Home Affairs, has initiated action to amend the following - i) the Commission of Sati ( Prevention) Act, 1987; ii) Immoral Traffic ( Prevention) Act, 1956; iii) Indecent Representation of Women (Prohibition) Act, 1986 ; iv) Child Marriage Restraint Act, 1929 ; v) Guardians & Wards Act ; vi) Family Courts Act ; vii) Foreign Marriage Act ;viii) Amendment in IPC relating to Rape. Besides, the nodal Department has also

initiated drafting of the Prevention of Domestic Violence against Women Bill. The National Commission for Women is re-considering the amendments proposed in the Dowry Prohibition Act, 1961 and is in the process of holding nation-wide debates/consultations. Modern Age Women in India now participate fully in areas such as education, sports, politics, media, art and culture, service sectors, science and technology, etc. Indira Gandhi, who served as Prime Minister of India for an aggregate period of fifteen years, is the world's longest serving woman Prime Minister. There are many empowered women like jaya lalitha CM of Tamilnadu, saina nehwal, sania mirza, malala yousafzai, chandakochhar, kiranmazumdarshaw, Sonia Gandhi, sunitha Williams, kiran bedi, swati parimal etc. Women Empowerment at Different Levels The different levels of women empowerment are as follows 1. Individual level: At this level ,the woman tries to

identify their abilities, values, goals, control over their lives and works hard towards their goal.

2. Group level: At this level, a woman tries to be a part of group and gain some experience from the group.

3. Societal level: At this stage, women understand the social and political climate and act according to the norms, and realize what is possible and impossible to do by women and behaves accordingly.

Objectives

The primary objective of the study is to know about the women empowerment. The specific objectives are 1. To determine the participation of women in

making decisions in their household, economics and social affairs in compared with men in the selected area

http://en.wikipedia.org/wiki/Indira_Gandhi

http://en.wikipedia.org/wiki/Prime_Minister_of_India

http://en.wikipedia.org/wiki/Prime_Minister_of_India



2. To compare the perception on gender equality at work between the women and men in the study area.

Research Methodology

An empirical study has been done in a local area of Hyderabad. The primary data is collected using the questionnaire. The data is analyzed using the percentage method. The size of the sample that is considered for the study is 100. The sample units are the women, who are educated, working and even illiterate. Out of 100sample units,75 are educated and 25 are uneducated. The secondary data is collected from different sources like journals, magazines, internet etc. Review of literature:

Women’s empowerment is very essential for the development of society. Empowerment means individuals acquiring the power to think and act freely, exercises choice and fulfill their potential as full and equal members of society. As per the United National Development Fund for women (UNIFEM), the term women’s empowerment means: 1. Acquiring knowledge and understanding of

gender relations and the ways in which these relations may be changed.

2. Developing a sense of self-worth, a belief in one’s ability to secure desired changes and the right to control one’s life.

3. Gaining the ability to generate choices exercise bargaining power.

4. Developing the ability to organize and influence the direction of social change, to create a more, just social and economic order, nationally and internationally.

5. Thus, empowerment means a psychological sense of personal control or influence and a concern with actual social influence, political power and legal rights. It is a multi level construct referring to individuals, organizations and community. It is an international, ongoing process centered in the local community, involving mutual respect, critical reflection, caring and group participation, through which people lacking an equal

A number of studies have been carried out in India and elsewhere that have tried to look in to the empowerment of women. The study by Vianello et al. (1990) showed that a husband’s power within marriage tended to increase in proportion to the resources that he could muster: education, income, prestige, social status, and so on. The author also found that the husband’s power was associated with the stage in the life cycle and with the presence of children in the home. More importantly, wives who worked for pay had more power than wives not gainfully employed. When the resource theory was applied to the study of marital power in different societies, the findings were inconsistent. Research results about decision-making from the United States [Kendell and Lesser, 1972; Centers et al., 1971],.

Peattie and Rein (1983) and Sapiro (1984) rightly mentioned that it is necessary for women to organize themselves as women, and to devise a strategy on how to win leading positions. Amaranth et al. (1996), have described the consequences of middle-class women taking up economically productive roles. The study examines whether the gender bias of men has undergone some change in the recent past. In order to carry out the analysis, the study uses six parameters – role perception, say in decision-making, acquisition of assets, economic freedom, spouse’s co-operation, and perception of status change. A sample of 68 middle-class women employed in different sectors of Anantapur District (Andhra Pradesh) within the age group of 20 to 45 years was selected. The findings indicate that the employment of women has led to the women having a greater say in the decision-making process and thus, has lessened the degree of gender bias.

Kabeer (1999) has attempted to construct the indicators of the empowerment of women, by using three-dimensional conceptual framework: (a) the ‘resources’ as part of the pre-conditions of empowerment; (b) the ‘agency’ as an aspect of process; and lastly (c) the ‘achievements’ as a measure of outcomes. The study shows that the most probable indicators for empowerment of women are: family structure, marital advantage, financial autonomy, freedom of movement, and lifetime experience of employment participation in the modern sector. The study by Malhotra et al. (2002) identifies the methodological approaches in measuring and analyzing the empowerment of women. The various indicators for ensuring empowerment of women given in the study are: domestic decision-making; finance and resource cation; social and domestic matters; child related issues; access to or control over resources; freedom of movement; and so on. Stine and Karina (2003) explain the term ‘empowerment’ as a process by which the disempowered individuals and groups gain the power to control their lives and the ability to make strategic life choices. The researchers also emphasize that the economic elements of empowerment refer mainly to the capability of earning a living. The study finds that one of the important determinants of the low average income of women is their intermittent labour force participation, which is a consequence of their time spent on unpaid work such as childcare, housework and food production. Definitions: Acc to suguna b.(2001) the process of empowerment has provided a broad based activity scheduled to the regional, national and global agencies in which participation has been highlighted .By this method, participation of women in the decision making process could be enhanced many fold and progress attained in a much short time. The process of empowerment helps in identifying areas to be targeted planning strategies for action and outcomes. Empowerment is not a process which is horizontal or vertical but a process which goes round in a circle.



According to Pillalij.k.(1995) empowerment is an active, multi-dimensional process, which enables women to realize their full identity and powers in all spheres of life. Power is not a commodity to be transacted nor it can be given away as aims. Power has to be acquired aand once acquired, it needs to be exercised, sustained and preserved. Findings and Analysis

1. Basic information about women

Among the 100 respondents, 75 of them are educated and 25 of them are uneducated. Irrespective of the education 65% of the women are working. They feel that 50% contribution of the society is seen for the empowerment of the girl and her education. 55% of the women say that some importance is given to them in their families as it was low in the earlier days. It is noticed that 80% of the women have their freedom to take their own decisions, as per the survey done in one of the local areas in hyderabad most of the women are striving hard to stand alone and excelling in various activities which are giving encouragement to them and helping for their future activities.

Parameters Percentage(%)

1. Education 75%

2. Work 65%

3. Contribution of society

50%

4. Importance given in the family

55%

5. Freedom for taking decisions

80%

2. Involvement of women in family decision

making.

As per the different parameters involving in family decision making, women like housewives, unmarried and employees depending upon different needs,85% women said that, they depend on themselves for self needs, 5% on Father/husband and 10% on both. 70% say that the children needs in the family are looked after by both wife and husband, only 10% women take decision alone and 20% decisions are taken by Father/Husband. When coming to family needs 20%women take the decisions alone,20% by Husband/Father alone and 60% is done by both.

Parameters Percentage (%)

Self Father/husband Both

1. Self Needs

85% 5% 10%

2. Children Needs

10% 20% 70%

3. Family Needs

20% 20% 60%

3. Social decisions made by women

As per the survey done about the social decisions made by women at different segments like Visiting Relative/Friends says that 50% of women are

making decisions alone,40% of women are taking their own decisions regarding going to health clinics alone and when coming to encouragement given to the girl education 65% respondents are supporting it


1. Visiting relatives/Friends

50%

2. Going to health clinic alone

40%

3. Encouraging girl education

65%

. 4. Encouragement in the organization

According to the study, there is a good encouragement for women employees in the organization and 60% women accept that,40% of the women respondents are saying that promotions are given equivalent to men and also they says that involvement in decision making is encouraged by the organizations, which is accepted by 55% of women.


1. Recruitment of women employees

60%

2. Promotions 40%

3. Involvement in decision making

55%

5. Encouragement for women

Among the different respondents considered in the survey about the encouragement given by different areas to them 45% of educated women say that they get motivated by themselves, and only 5% of uneducated depend on themselves.30% educated women says that they are being encouraged by NGO’s whereas 55% Uneducated women are encouraged by NGO’s,60% of literate women are getting benefited by banks,40% of illiterate women are availing the benefits of banks. 30% of educated women respondents get advantage by government and 55% uneducated avail government benefits.


Educated Uneducated

1. Oneself 45% 5%

2. NGO’s 30% 55%

3. Banks 60% 40%

4. Government

30% 55%

Conclusion: According to the survey it was found that education is being encouraged now a days for girl child. Even they are being encouraged to do a job and also to enter into different fields of their interest. unlike the traditions, customs, trends, family status, economical backgrounds many of the girls are excelling into various activities. Coming to the educated housewives, women are coming forward to



do their own business which can manage both their families as well as personal life’s, whereas uneducated housewives & working women are getting more aware about different schemes which are provided by Government, NGO’S, BANKS, etc. Though there are many changes happening still we find gender inequality and discrimination of women in our society like India. This can be reduced by taking various measures by the government, NGO’S, and even the families, and individuals. Studies show that when women are supported and

empowered, all of society benefits. Their families are healthier, more children go to school, agricultural productivity improves and incomes increase. In short, communities become more resilient.

References:

1. http://www.sewa-society.org/articles/women-empowerment-the-need-of-the-hour/

2. http://www.iosrjournals.org/iosr-jbm/papers/vol16-issue8/version-3/f016833944.pdf

3. http://www.rmttc.com/images/new_pdf/concept_paper.pdf

4. http://livingempowered.areavoices.com/2010/10/top-25-empowerment-quotations-for-women/#sthash.gybuerit.dpuf

5. http://www.ibtimes.com/international-womens-day-2014-quotes-25-sayings-empower-women-1560089

6. http://www.idfresearch.org/pdf/0411.pdf 7. http://shodhganga.inflibnet.ac.in/bitstream/10603/8562

/9/09_chapter%204.pdf 8. www.wikipedia.com

http://www.sewa-society.org/articles/women-empowerment-the-need-of-the-hour/

http://www.sewa-society.org/articles/women-empowerment-the-need-of-the-hour/

http://www.iosrjournals.org/iosr-jbm/papers/Vol16-issue8/Version-3/F016833944.pdf

http://www.iosrjournals.org/iosr-jbm/papers/Vol16-issue8/Version-3/F016833944.pdf

http://www.rmttc.com/images/new_pdf/concept_paper.pdf

http://www.rmttc.com/images/new_pdf/concept_paper.pdf

http://livingempowered.areavoices.com/2010/10/top-25-empowerment-quotations-for-women/#sthash.GYBUEriT.dpuf



http://www.ibtimes.com/international-womens-day-2014-quotes-25-sayings-empower-women-1560089

http://www.ibtimes.com/international-womens-day-2014-quotes-25-sayings-empower-women-1560089

http://www.idfresearch.org/pdf/0411.pdf

http://shodhganga.inflibnet.ac.in/bitstream/10603/8562/9/09_chapter%204.pdf

http://shodhganga.inflibnet.ac.in/bitstream/10603/8562/9/09_chapter%204.pdf

http://www.wikipedia.com/



ROLE OF NATIONAL STOCK EXCHANGE IN INDIAN STOCK MARKET

*Dr. M.Bharath **Dr. R.Jayavel

_______________________________________________________________________________________________________ *Assistant Professors in Commerce, Annamalai University, Annamalainagar, Chidambaram, Tamil Nadu – 608 002

Abstract The Indian capital market has exhibited a great measure of dynamism in recent years. It is, among other things, a reflection of the maturity of investors as well as the sophistication of the operating market instruments. The reform process too has had an impact on the Indian capital market. The development of the capital market in India is many fold and multi faceted. The establishment of the NSE is the important step in upgrading trading facilities for investors and brings Indian financial market in line with international markets. Therefore the growth of NSE from 1998-99 to 2011-12 was prosperous and it also lead to increase of national income growth. Indian capital markets have witnessed a positive growth in all segments of the market during the study period although there is a fluctuation in the market. So there is a need for the hour to retrieve the contribution of the NSE in the growth of Indian stock market.

Introduction The capital market is one of the important constituent to groom and develop the economy to attain the required growth rate through attraction of funds from not only sources in the domestic market but also from international markets. In India, the capital market is more vibrant in the recent years due to many developments routed through the structured mechanism of the market. A structured market facilitates to bring forth many developments in the capital market in order to enable the corporate bodies to attract more investors to contribute financial resources to meet their requirements. The participation of the investors is subject to the efficiency of the market. To attract more investors from the various corners of the market, its development is to the pre-requisite. The development of the capital market in India is many fold and multi faceted. The Indian capital market has exhibited a great measure of dynamism in recent years. It is, among other things, a reflection of the maturity of investors as well as the sophistication of the operating market instruments. The reform process too has had an impact on the Indian Capital Market. Some of the important capital market reforms recently introduced was, abolition of the Office of the Controller of Capital Issues in 1992, greater autonomy to the Securities and Exchange Board of India (SEBI), free pricing of securities and strategic measures for investor protection. The primary market has also been witnessing an upsurge in activities both in terms of number and the amount of new capital issues. The profiles of the issues, investors and intermediaries are fast changing. Corporate bodies, Foreign Investment Institutions, public and private sector mutual funds and other institutional participants are playing an important role in the securities market. Stock Markets in India

Indian stock market is one of the oldest in Asia. Its history dates back to nearly 200 years. The earliest records of security dealings in India are meager and obscure. The East Indian Company was the dominant institution in those days and business in its loan securities were transacted towards the close of

the eighteenth century. By 1830s business on corporate stocks and shares in Bank and Cotton Presses took place in Bombay. Though the trading list was broader in 1839, there were only half a dozen brokers recognized by banks and merchants during 1840s. The 1850s witnessed rapid development of commercial enterprise and brokerage business attracted many men into the field and by 1860 the number of brokers increased to 60.

In 1860-61 American Civil War broke out and cotton supply from United States to Europe was stopped and the 'Share Mania' in India began. The number of brokers increased to about 250. However, at the end of the American Civil War, in 1865 a disastrous slump began, for example, Bank of Bombay Shares which had touched Rs.2850 could only be sold at Rs.87. In 1887, they formally established in Bombay, the "Native Share and Stock Brokers Association" (which is alternatively known as “The Stock Exchange”). In 1895, the stock exchange acquired a premise in the same street and it was inaugurated in 1899. It was an unincorporated body of stockbrokers, which started doing business in the city under a banyan tree. Business was essentially confined to company owners and brokers, with very little interest evinced by the general public. Objectives of the Study The objectives of the study are as follows:

1. To give an overview of the Indian stock market.

2. To study the growth and role of NSE in Indian stock market.

Methodology of the Study

The present study is an attempt to take a broad outlook of the role of NSE in Indian stock market. Data has been collected from various annual reports of SEBI and RBI and official websites of NSE, SEBI and RBI. Period of the Study

The present study covers a period of 14 years from 1998-1999 to 2011-2012. Tools Used

Compounded Annual Growth Rate (CAGR) has been used to analyse and interpret the data. Stock Exchange

A Stock Exchange fulfils a vital function in the economic development of a nation, its main function



is to ‘liquify’ capital by enabling a person who has invested money in, say a factory or railway, to convert it into cash by disposing off his shares in the investment in joint stock companies is attractive to the public, because the value of the shares is announced day after day in the stock exchanges and shares quoted on the exchanges are capable of almost immediate conversion into money. In modern days a company stands little chance of inducing the public to subscribe to its capital, unless its shares are quoted in an approved stock exchange. All public companies are anxious to obtain permission from reputed exchanges for securing quotations of their shares and the management of a company is anxious to inform the investing public that the shares of the company will be quoted on the stock exchange. Functions of Stock Exchange

The stock exchange is really an essential pillar of the private sector corporate economy. It discharges three essential functions: 1. The stock exchange provides a market place for

purchase and sale of securities viz. shares, bonds, debentures etc. It, therefore, ensures the free transferability of securities which is the essential basis for the joint stock enterprise system.

2. The stock exchange provides the linkage between the savings in the household sector and the investment in the corporate economy. It mobilizes savings, channelises them as securities into these enterprises which are favoured by the investors on the basis of such criteria as future growth prospects, good returns and appreciation of capital.

3. By providing a market quotation of the prices of shares and bonds- a sort of collective judgment simultaneously reached by many buyers and sellers in the market- the stock exchange serves the role of a barometer, not only of the state of

health of individual companies, but also of the nation’s economy as a whole.

National Stock Exchange The National Stock Exchange of India was incorporated in November 1992 with an equity capital of Rs. 25 crores and promoted among others by IDBI, ICICI, LIC, GIC and its subsidiaries, commercial banks including State Bank of India and other financial institutions. The establishment of the NSE is an important step in upgrading trading facilities for investors and brings Indian financial markets in line with international markets. The NSE market is a fully automated screen based trading system. The emphasis of secondary markets in India has been primarily on equity trading. Trading in corporate debt and government securities has not picked up as in the case of the equity markets. The NSE is expected to play an effective role in providing infrastructure and trading facilities for developing an efficient secondary market for both debt and equity instruments. Objectives of the NSE NSE was set up to fulfill the following objectives of the trading concerns:

1. To establish a nationwide trading facility for equities, debt instruments and other securities.

2. To ensure equal access to investors all over the country through an appropriate communication network.

3. To provide a fair, efficient and transparent securities market to investors using electronic trading system,

4. To enable shorter settlement cycles and book entry settlements system and

5. To meet the international benchmarks and standards of securities markets.

The above objectives have been realised and the exchange has played a leading role as a change agent in transforming the Indian stock markets to its present form.

Table 1 Growth of National Stock Exchange

Year No. of Cos. Listed

No. of Brokers

No. of Companies Traded

No. of Shares Traded (Lakh)

Turnover (Rs.crore)

Market Capitalisation (Rs.crore)

1998-99 648 990 - 165327 414383 491175

1999-00 720 991 - 242704 839052 1020426

2000-01 785 1074 1201 329536 1339511 657847

2001-02 793 1065 1019 278408 513167 636861

2002-03 818 1036 899 364066 617989 537133

2003-04 909 970 804 713300 1099534 1120976

2004-05 970 976 856 787686 1140072 1585585

2005-06 1069 1014 928 844486 1569558 2813201

2006-07 1228 1077 1114 855456 1945287 3367350

2007-08 1381 1129 1244 1498469 3551038 4858122

2008-09 1432 1243 1277 1426355 2752023 2896194

2009-10 1470 1310 1370 2215530 4138023 6009173

2010-11 1574 1389 1483 1824515 3577410 6702616

2011-12 1646 1423 1551 1616978 2810893 6096518



Source: Handbook of Statistics on the Indian Securities Market 2012 and NSE Fact Book 2012 The above table reflects the growth of National Stock Exchange in India from 1998-99 to 2011-12. The table highlights the total number of companies listed during the period, number of brokers and companies engaged in trading activities and also the total number of shares traded in the National Stock Exchange. Further it exhibits the turnover of the NSE during the period. There was a gradual increase of companies listed in stock market during the period and it was 648 companies in 1998-99 and it reached up to 1646 companies in 2011-12. Number of brokers reflected in fluctuating trend during the study period but it result in growth when compare to initial years of the study. As the impact of increase in the total number of shares traded in the National Stock Exchange the turnover during the study period have been also increased tremendously from 414383 crores in 1998-99 to 2810893 crores in 2011-12. Therefore the growth of NSE from 1998-99 to 2011-12 was prosperous and it also lead to increase of national income growth.

Role of National Stock Exchange in Indian Stock Market NSE has set up infrastructure that serves as a role model for the securities industry in terms of trading systems, clearing and settlement practices and procedures. The NSE currently operates different market segments, namely capital market, wholesale debt market, futures and options, currency future and options and interest rate futures. NSE has been playing the role of an agent in reforming the market in terms of microstructure and market practices. Right from its inception, the exchange has adopted the purest form of demutualised set up whereby the ownership, management and trading rights are in the hands of three different sets of people. It has helped in shifting the trading platform from the trading hall in the premises of the exchange to the computer terminals at the premises of the trading members located countrywide and subsequently to the personal computers in the homes of investors.

Table 2: Market Segments of Select Indicators in NSE Source: Handbook of Statistics on the Indian Securities Market 2012 and NSE Fact Book 2012.

The market segment of select indicators NSE has been highlighted in Table 2. Market segment comprises of capital market, Equity futures and options market, wholesale debt market, currency future and options market, wholesale debt market, currency future and options market and internet rate future market. Indian capital markets have witnessed a positive growth in all segments of the market during the study period. Thought there is fluctuations the market during the study period. TECHNOLOGY AND APPLICATION SYSTEMS IN NSE Technology has been the backbone of the exchange. Providing services to the investing community and market participants using technology at the optimum possible cost has been its main thrust. NSE chose to connect technology in creating a new market design.

It believes that technology provides the necessary movement for the organisation to retain its competitive edge and ensure timeliness and satisfaction in customer service. NSE stresses on innovation and sustained investment in technology to remain ahead of competition. NSE is the first exchange in the world to use satellite communication technology for trading. It uses satellite communication technology to energize participation from about 2648 VSATs from nearly 201 cities spread all over the country. NATIONAL EXCHANGE FOR AUTOMATED TRADING (NEAT) Its trading system, called National Exchange for Automated Trading (NEAT). It is a state of-the-art client server based application. At the server end all trading information is stored in an in memory

Year

Capital Market

Equity Futures and Options

Wholesale Debt Market

Currency Future &Options

Interest Rate Futures

Total (Rs.)

1998-99 414474 --- 105469 --- --- 519943

1999-00 839052 --- 304216 --- --- 1143268

2000-01 1339510 2365 428582 --- --- 1770457

2001-02 513167 101925 947190 --- --- 1562282

2002-03 617989 439865 1068701 --- --- 2126555

2003-04 1099534 2130649 1316096 --- --- 4546279

2004-05 1140072 2547053 887294 --- --- 4574419

2005-06 1569558 4824250 475524 --- --- 6869332

2006-07 1945287 7356242 219106 --- --- 9,520,635

2007-08 3551038 13090478 282317 --- --- 16,923,833

2008-09 2752023 11010482 335952 162272 --- 14,260,729

2009-10 4138024 17663665 563816 1782608 2975 24,151,088

2010-11 3577412 29248221 559447 3449788 62 36,834,929

2011-12 2810893 31349732 633179 4674990 3959 39,472,753



database to achieve minimum response time and maximum system availability for users. NSE has been continuously undertaking capacity enhancement measures so as to effectively meet the requirements of increased users and associated trading loads. NSE has also put in place NSEs Internet Based Information System (NIBIS) for on-line real-time dissemination of trading information over the internet. As part of its business continuity plan, NSE has established a disaster back-up site at Chennai along with its entire infrastructure, including the satellite earth station and the high-speed optical fiber link with its main site at Mumbai. The various application systems that NSE uses for its trading as well clearing and settlement and other operations form the backbone of the exchange. The application systems used for the day-to-day functioning of the exchange can be divided into front end applications and back office applications. In the front office, there are different applications: NEAT – Capital Market NEAT-Capital Market system takes care of trading of securities in the capital market segment that includes equities, debentures or notes as well as retail gilts. The NEAT – Capital Market application has a split architecture wherein the split is on the securities and users. The application runs on three stratus systems with Open Strata Link (OSL). The application has been benchmarked to support 60,000 users and handle more than 100 million trades daily. This application also provides data feed for processing to some other systems like Index, OPMS through TCP or IP. This is a direct interface with the trading members of the capital market segment of the exchange for entering the orders into the main system. There is a two way communication between the NSE main system and the front end terminal of the trading member. NEAT – Wholesale Debt Market It takes care of trading of securities in the Wholesale Debt Market (WDM) segment that includes gilts, corporate bonds, T-Bills, etc. This is a direct interface with the trading members of the WDM segment of the exchange for entering the orders or trades into the main system. There is a two way communication between the NSE main system and the front end terminal of the trading member. NEAT – Future and Options It takes care of trading of securities in the futures and options segment that includes futures on index as well as individual stocks and options on index as well as individual stocks. This is a direct interface with the trading members of the futures and options segment of the exchange for entering the orders into the main system. There is a two way communication between the NSE main system and the front end terminal of the trading member. NEAT – Initial Public Offerings

It is an interface to help the initial public offering of companies which are issuing the stocks to raise capital from the market. This is a direct interface with the trading members of the capital market segment who are registered for undertaking order entry on behalf of their clients for IPOs. NSE uses the NEAT IPO system that allows bidding in several issues concurrently. There is a two way communication between the NSE main system and the front end terminal of the trading member. NEAT – Mutual Fund It is an interface with the trading members of the capital market segment for order collection of designated mutual funds units. NEAT- Currency Derivatives

It provides interface for trading in currency derivatives and interest rate futures. The exchange also provides a facility to its members to use their own front end software through the computer to computer link (CTCL) facility. The member can either develop his own software or use products developed by CTCL vendors. In the back office, the following important application systems are operative: Nationwide Clearing and Settlement System (NCSS) It is the clearing and settlement system of the NSCCL for the trades executed in the capital market segment of the exchange. The system has three important interfaces - Online Trade Loading (OLTL) that takes each and every trade executed on real time basis and allocates the same to the clearing members, depository interface that connects the depositories for settlement of securities and clearing bank interface that connects the thirteen clearing banks for settlement of funds. It also interfaces with the clearing members for all required reports. Through collateral management system it keeps an account of all available collaterals on behalf of all trading or clearing members and integrates the same with the position monitoring of the trading or clearing members. The system also generates base capital adequacy reports. Future and Options Clearing and Settlement System (FOCASS) It is the clearing and settlement system of the NSCCL for the trades executed in the future and options segment of the exchange. It interfaces with the clearing members for all required reports. Through collateral management system it keeps an account of all available collaterals on behalf of all trading or clearing members and integrates the same with the position monitoring of the trading or clearing members. The system also generates base capital adequacy reports. Currency Derivatives Clearing and Settlement System (CDCSS) It is the clearing and settlement system for trades executed in the currency derivative segment. Through collateral management system it keeps an account of



all available collateral on behalf of all trading or clearing members and integrates the same with the position monitoring of the trading or clearing members. The system also generates base capital adequacy report. Online Position Monitoring System (OPMS)

It is the online position monitoring system that keeps track of all trades executed for a trading member vis-à-vis its capital adequacy. Parallel Risk Monitoring System (PRISM)

The parallel risk management system for future and options trades using Standard Portfolio Analysis (SPAN). It is a system for comprehensive monitoring and load balancing of an array of parallel processors that provides complete fault tolerance. It provides real time information on initial margin value, mark to market profit or loss, collateral amounts, contract-wise latest prices, contract-wise open interest and limits. The system also tracks online real time client level portfolio base upfront margining and monitoring. Parallel Risk Monitoring System – Currency Derivatives (PRISM-CD)

PRISM-CD is the risk management system of the currency derivatives segment. It is similar in features to the PRISM of future and options segment.. NOW

NSE is also offering internet based trading services to NSE members. This facility is branded as ‘Neat On Web’ (NOW). NOW provides an internet portal for NSE members and their authorized clients to transact orders and trades to the various markets of NSE viz. capital market, future and options and currency. The members can also access NOW through their existing VSAT or Leased line, in addition to internet links. The various features provided by NOW are comprehensive administration features, flexible risk management system, high speed dealer terminals and online trading facility for investors. Conclusion

The capital market is more vibrant in the recent years due to many developments routed through the structured mechanism of the market. A structured market facilitates to bring forth many developments in the capital market in order to enable the corporate bodies to attract more investors to contribute financial resources to meet their requirements. The participation of the investors is subject to the efficiency of the market. To attract more investors from the various corners of the market, its development is to the pre-requisite. The development of the capital market in India is many fold and multi faceted. The establishment of the NSE important step in upgrading trading facilities for investors and brings Indian financial market in line with international markets. Therefore the growth of NSE from 1998-99 to 2011-12 was prosperous and it also lead to increase of national income growth. Indian capital markets have witnessed a positive growth in all segments of the market during the study period. Thought there is fluctuations the market during the study period. References:

1. Vasant Desai.2009. “The Indian Financial System and Development,” Himalaya Publishing House Pvt. Ltd., Mumbai.

2. Gordon. E and Natarajan. K. 2012. “Financial Markets and Services,” Himalaya Publishing House Pvt. Ltd., Mumbai.

3. Pandey. I.M. 2010. “Financial Management,” Vikas Publishing House Pvt. Limited, Noida.

4. Handbook of Statistics on the Indian Securities Market 2012.

5. ISMR - Indian Securities Market A Review, Published by National Stock Exchange of India Limited, Mumbai, Vol. XV, 2012.

6. NSE - Fact Book 2012.

7. www.nseindia.com

8. http://www.investmentz.com/satic/articles on trade/ capital market - History of Indian capital market.pdf.http://www.investmentz.com/satic/articles on trade/ capital market - History of Indian capital market.pdf.

http://www.nseindia.com/

http://www.investmentz.com/satic/articles%20on%20trade/





A STUDY ON ACCOUNT HOLDERS PERCEPTION ABOUT ATM SERVICES OF PNB

*Dr. G. Madan Mohan **Vishaka Jain N

_______________________________________________________________________________________________________

*Assistant Professor, Department of Management Studies, Pondicherry University. **II. MBA, Pondicherry University.

Abstract The last decade has witnessed many positive developments in the Indian banking sector, especially with the opening of the sector to private and foreign players. Consequently, banks have started exploring many new products and services to attract more customers. A few banks have established an outstanding track record of innovation, growth and value creation. This is reflected in their market valuation. ATM service is one such service which banks have started using recently to distinguish them self from their competitors. This descriptive research tries to assess the opinion of Account holders of Punjab National Bank (PNB) about ATM card usage. Based on the survey conducted on 160 account holders of PNB, it has been found that ATM cards are largely used for traditional purposes such as withdrawing money while modern reasons such as transmission of money finds least usage. Using Factor Analysis, nine factors namely, ticketing Factor, bill payment Factor, facilitating Factor, transmission Factor, convenience Factor, safety Factor, withdrawal factor, operational efficiency factor and utility payment factor have been arrived at and the account holders have been grouped into three clusters namely, facilitative desirous group, withdrawal appreciators and convenience admirous group. Correspondence Analysis has been used to explore the demographic characteristics of these clusters.

Introduction The banking industry was once a simple business that took deposits from investors at a lower interest rate and loaned it out to borrowers at a higher rate. However its deregulation and the advancements in technology led to a revolution in the banking industry. Banks have now become global industrial powerhouses. Objectives of the Study

1. To study depositors perception about ATM cards of PNB;

2. To analyze the nature of usage of ATM cards by PNB account holders.

Literature Review Uppal R.K. (2010) explored the penetration of electronic banking in India during 2000-07. The study revealed that ATM services outscored mobile banking in the case of nationalized and old private banks while the situation was the reverse in the case of new private banks and foreign banks. The study also found that mobile banking service had a positive impact on the net profits and business per employee of banks. Bank net India (2006) conducted an online survey on 316 Indian ATM users during 2006 and found that ATM Cards were predominantly utilized for withdrawing money, followed by bill payments and mobile recharging. The study revealed that vast majority of people prefers ATM service to branch banking, witnessing popularity of the service. However, Jui-Chu, Jin-Li and Kang-Liang (2005) studied 35 Taiwan banks during 1995-2001 and concluded that ATM services alone cannot make any significant contribution to the enhancement of operational efficiency of banks. Kukkudi and Deene (2006) found that ATM services are used predominantly by male customers aged 25-35 years. Methodology

The proposed research is descriptive in nature, based on primary data collected by administering a well structured questionnaire to persons who have availed

credit from PNB. Sample frame for the study is PNB, Puducherry, while the sample population consists of borrowers from PNB. The sample size for the study is 160 while Convenient Sampling technique was adopted to collect data. The data collected were represented suitably in tables and figures and analysed using the statistical software’s of SPSS, MS Excel and Smart PLS, employing the statistical tools of Mean, Chi-square Analysis, Cluster Analysis, Correspondence Analysis, ANOVA and Structural Equation Modelling (SEM). Reliability of the questionnaire was verified using Cronbach’s alpha (Cronbach, 1951), which yielded a reliability of 91%. Profile of Respondents among the 160 respondents, 45.6% are aged below 35, 36.2% are aged 35-50 and 18.1% are aged above 50; 60 %are males and 40% are females;; 16.2% are students, 19.4% are government employees, 32.5% are private employees, 12.5% are businessmen, 5% are agriculturists, 6.9% are retired and 7.5% are house wives; 42.5% of the respondents have an annual family income of less than Rs. 2lakh, 30.6 % have income of Rs. 2 -4 lakhs, 19.4% have income of Rs. 4-6 lakhs and 17.5% have income of more than 6 lakhs; 11.3% of the respondents possess HSE qualifications, 31.9% are graduates, 21.9% are post graduates, 18.8% are MBAs, 8.8% possess professional qualifications and 7.5% possess other qualifications.6.9% of the respondents are using ATM cards for less than six months,23.1% are using ATM cards for 6-12 months, 17.5% are using for 1-3 years, 26.3% are using for 3-5 years while 26.3% are using for more than 5 years; 60% of the respondents are from urban areas, 17.5% from rural areas and 22% are from semi-urban areas; 92 percent of the respondents have more than one ATM card; 52.5% of the borrowers use credit cards while 47.5% do not use credit cards; 15% use debit card once every 2 days, 14.4% use thrice a week, 16.9% use twice a week, 15.6% use once a week, 22.5% use once a fortnight while 15.6% use once a month.



Factorisation of Variables

Rotated Component Matrix has been used to factorise the statements used to assess account holders opinion about debit card usage and the results has been displayed in table 1, according to which nine factors have been formed using the 22 variables. These nine factors explain more than 65% of variance, implying that these nine factors may be considered for future study. The first factor consisting of four statements, is labeled as “ticketing Factor”, while the second factor encompassing four statements is branded as “bill payment Factor”. The third factor engulfing four statements is designated as “facilitating Factor”, while

The fourth factor encompassing three statements is entitled as “transmission Factor”. The fifth factor consisting of two statements is pigeon-holed as “convenience Factor”, while the sixth factor consisting of one statement is labeled as “safety Factor”. The seventh factor incorporating one statement is labeled as “withdrawal factor”, while the eight factor encompassing two statements is branded as “operational “efficiency factor” and the ninth factor engulfing solitary statement has been labeled as “utility payment factor”.

Table 1: Rotated Component Matrix

Factor Statement Loadings Initial Eigenvalues

% of Variance

Cumulative %

1 Movie Ticket 0.765 3.328 15.129 15.129

Online Shopping 0.699

Air Ticket 0.698

Train Ticket 0.476

2 Provisions 0.678 2.066 9.390 24.520

Hotel Bills 0.628

To Purchase Petrol 0.621

To Make Purchase 0.540

3 Time Consuming 0.695 1.752 1.610

7.963 32.483

To Avoid Queue 0.659

ATM Card Satisfaction 0.643

Avoid Carrying Cash 0.598

4 Money Transfer 0.727 7.317 39.801

Make Deposits 0.719

Recharge 0.558

5 Banking During Non Working Hours

0.709 1.299 5.903 45.703

Check Balance 0.670

6 Risk 0.833 1.172 5.327 51.030

7 Withdraw Cash 0.841 1.125 5.113 56.143

8 Non Availability of Cash 0.805 1.083 4.925 61.068

Inadequacy 0.465

9 Utility Payment 0.818 1.006 4.575 65.642

Purposes of ATM Usage ATM Cards are used for a variety of purposes such as withdrawing money, checking balance, booking tickets, purchase of provisions, online purchases, recharging mobiles, etc. All ATM Cards offer certain services such as withdrawing money and offline shopping while few ATM cards offer modern services such as transmission of money and paying for online purchases. The services provided by ATM Cards of PNB as per the opinion of the account holders has been displayed in Table 2, according to which the mean for TRANSMISSION FACTOR is the lowest (2.5146) while the mean in respect of WITHDRAWAL FACTOR is the highest (3.7250). Hence, it can be observed that account holders use ATM cards predominantly for withdrawing while they are not using the cards for transmission. Hence, it can be said that PNB ATM Cards are largely used for traditional purposes rather than modern purposes. TABLE 2: ATM Usage

FACTOR MEAN FACTOR MEAN

Ticketing factor

3.3078 Bill payment factor

3.2047

Facilitative factor

3.5281 Transmission factor

2.5146

Convenience factor

3.7063 Safety factor 2.9750

Withdrawal factor

3.7250 Operational efficiency factor

3.1699

Utility payments factor

3.2668

Clusterisation of Respondents The respondents selected for this study has been grouped based on the nine factors formed using Cluster Analysis and the results have been displayed in Table 2.



Table 3: Final Cluster Centers

Factor Cluster

1 2 3

Ticketing Factor 2.81 3.54 3.44

Bill Payment Factor 2.80 3.62 3.17

Facilitative Factor 3.22 3.80 3.54

Transmission Factor 2.97 3.19 2.70

Convenience Factor 3.11 4.07 3.79

Safety Factor 2.85 1.92 3.78

Withdrawal Factor 2.22 4.29 4.26

Operational Efficiency Factor

3.16 2.93 3.33

Utility Payments Factor

3.05 4.06 2.81

Frequency 46 57 57

It can be inferred from Table 3 that three

clusters have been formed based on the nine factors. The first cluster has been designated as “facilitative desirous group “ as the mean in respect of “facilitative” for this cluster is the highest. The second cluster has been entitled as “withdrawal appreciators” as the mean in respect of factor “withdrawal” is high for this cluster. The third cluster has been named as “convenience admirous group Group” as the mean in respect of “convenience” is high for this cluster. It can further be inferred from Table 2 that 47 Account holders constitute the “Facility desirous group” while 57 constitute the “Withdrawal appreciators” and another 57 comprise the “Convenience admirers Group”.

DEMOGRAPHIC CHARACTERISTICS OF THE CLUSTERS

The demographic characteristics of the clusters have been explored using Correspondence Analysis and the results have been depicted in the following figures.

Fig 1: Age

Fig 2: Annual Income



It can be observed from the above figures that account holders aged less than 35,those with annual family income of Rs. 2-4 lakhs, Government employees, those using ATM cards for a period of more than five years, those possessing MBA qualifications and those residing in urban areas are associated with “Withdrawal appreciators group”. Account holders aged 35-50 ,retired and student account holders, those possessing educational qualification of upto HSE and those residing in rural areas are associated with “facility desirous group”. Account holders with annual family income of less than Rs. 2 lakhs and more than Rs. 6 lakhs, those using ATM facility for a period of 1-3 years, businessmen, those possessing other professional qualifications and those residing in semi-urban areas are associated with “convenience admirous group “. Inferences PNB ATM cards are used largely for traditional purposes such as withdrawal of money and checking balances while usage for modern purposes such as transmission of money is very minimum. Hence, PNB should make its ATM cards usable for modern purposes such as money transfer, depositing money and recharging mobiles. ATM centres of PNB are very less and hence, the bank must initiate measures to open more ATM centres. Conclusion

The banking industry is subject to strict regulations and the banks have to operate in a highly competitive environment. This necessitates banks to go for innovation, growth and value creation. The cost of banking intermediation in India is high while bank penetration is comparatively low. India’s banking industry must strengthen itself significantly if it has to support the modern and vibrant economy which

India aspires to be. The onus for this change lies largely with the bank management, which has to comply with regulations and simultaneously strive for competitive advantage. References 1. Alagheband. Parisa (2006). “Adoption of electronic banking

services by Iranian customers”, PhD thesis ,Lulea University of Technology,2006

2. Bahl.Sarita (2012). “Emerging Challenges in E-Banking Upheavals in Global Scenario”, RIJEB Volume 1, Issue 7.

3. Bauer. et al (2005). “Measuring the quality of e-banking portals. International Journal of Bank Marketing”, Vol. 23 No. 2, 2005, pp. 153-75.

4. Chibueze. et al (2013). “Electronic Banking and Bank Performance in Nigeria”, West African Journal of Industrial & Academic Research Vol.est 6 No.1 March, 2013.

5. Daniel. E (1999). “Provision of electronic banking in the UK and the Republic of Ireland”, International Journal of Bank Marketing, Vol. 17 No. 2, 1999, pp. 72-82.

6. Kalakota. R. and Winston. (1997). “Electronic Commerce: A Manager's Guide”,Addison Wesley, 1997.

7. Kavitha. S (2011). “Influence of Demographic Variables on Customer Satisfaction Regarding E-Banking: An Empirical Investigation”, Issues in Information Systems, Volume XII, No. 1, 2011, pp. 436-444.

8. Rahman. et al (2012). “Problems and Prospects of E-Banking in Bangladesh, International Journal of Scientific and Research Publications”, Volume 2, Issue 7, July 2012.

9. Safeena. et al (2010). “Customer Perspectives on E-business Value: Case Study on Internet Banking”, JIBC, Vol. 15, No.1, April 2010

10. Shah, Mahmood and Clarke, Steve. (2009). “E-Banking Management: Issues, Solutions and Strategies” UK, IGI Global.

11. Turban, E., Lee, J., King, D., and Chung, H.M. Electronic Commerce: A Managerial Perspective. Prentice-Hall, Upper Saddle River, NJ,2000

12. Uppal R.K. (2010) “Paradigm Shift in e-Banking: Some Evidence from Indian Banks”.IUP Journal of Bank Management, Vol. 9, No. 2, pp. 42-59, February to May,2010.

http://www.google.co.in/url?url=http://ssrn.com/abstract%3D1607650&rct=j&frm=1&q=&esrc=s&sa=U&ei=bfYOVJDUCtCqyAS19oKYAQ&ved=0CB0QFjAC&usg=AFQjCNFJPPH-hn7gmY_zqUfQsxTFV2fbYA

http://www.google.co.in/url?url=http://ssrn.com/abstract%3D1607650&rct=j&frm=1&q=&esrc=s&sa=U&ei=bfYOVJDUCtCqyAS19oKYAQ&ved=0CB0QFjAC&usg=AFQjCNFJPPH-hn7gmY_zqUfQsxTFV2fbYA



A STUDY ON FACTORS INFLUENCING DALIT ENTREPRENEURSHIP IN PARAMAKUDI TOWN

*R.Saravanan **Dr.P.Srithar

_______________________________________________________________________________________________________

*Faculty in Commerce, Alagappa University College of Arts and Science, Paramakudi – 623707

**Associate Professor & Head, Department of Commerce, N.M.S.S.Vellaichamy Nadar College

Abstract Dalit entrepreneur is someone dalit who initiates and actively operates his business. In India from the very beginning dalits have been used as servant and sweeper and have solely dominated the area of household activities. Today nontraditional enterprises are easily managed by dalit entrepreneurs and are done so excellently with them as the decision makers. In this content a research study was formulated with theobjectives of identifying the socio economic profile of dalit entrepreneurs, to highlight the main influencing factors for dalit entrepreneurs. The study was related to 120 dalit entrepreneurs in the area of Paramakudi Town in Ramanathapuram district of Tamil Nadu. In this study percentage analysis, ranking method and F- test have been applied for analysis of data.The major motivational factors were ambition to start an enterprise and make more money. Key words: dalit, motivation factors, assistance.

Introduction

Dalit entrepreneur is someone dalit who initiates and actively operates his business. Economic growth of a country depends upon the industrial entrepreneur in the country and the entrepreneurs play a vital role in the national development. Today nontraditional enterprises are easily managed by dalit entrepreneurs and are done so excellently with them as the decision makers. Today, dalit entrepreneurs represent a group of people who have broken away from the beaten track and are exploring new avenues of economicparticipation. Among the reasons for dalit to run organized enterprises are their skill and knowledge, their talents and abilities in business and a compellingdesire of wanting to do something positive. Statement of The Problem

Entrepreneurship development is closely associated with the national development. Dalits constitute one sixth of the total population. They are socially, economically and politically backward. They are facing different kinds of problems like poverty, social prejudice, inaccessibility to resources, lack of participation in decision making etc. The Government of India has taken conscious efforts to substantially enhance the spirit of entrepreneurship, employment, and housing facility among dalits to maintain their equality with others. But still they are lag behind in the field of entrepreneurship. It has tempted the researcher to study the influencing factors of dalit entrepreneurs in Paramakudi Town. Review of Literature

An empirical investigation into the socio economic background of the selected small scale entrepreneurs in Tiruchirapalli was made by Thangamuthu and Iyyampillai (1983). They found that the field experience, training, the extended family relations and caste connections have facilitated the emergence of entrepreneurship. However, the education and occupational background of parents have not contributed much for their success.

Hadimani (1983) in his study on”Socio and personal factors in entrepreneurship” has discussed how the trading caste, Marwaris are successful than non-marwaris in their business. According to him good entrepreneurship is the joint product of both nexus such as joint family background, formal education, knowledge of many languages, political support and personality traits like risk bearing, achievement, motivation, alertness to opportunity, dynamism, hard work, honesty, punctuality etc.,

Khairwala and siddhiqui (2000) in their “study on socio economic survey of Muslim entrepreneurs in Sellampur constituency of Delhi” have stated that Muslim entrepreneurs emerged from various socio – economic and educational backgrounds. The sample data of 25 Muslim entrepreneurs (hailing from Uttar Pradesh), settled in Sellampur of Delhi area are engaged in various entrepreneurial activities. No specific relation was found between a person’s caste and his profession. Majority of the entrepreneurs started their enterprises before the age of 25 years. Many of them worked in similar industries for some time to gain experience and then started their own units. Their father’s occupation was not of much importance to the respondent’s choice of occupation. Educational standard of the entrepreneurs was very low. This may be due to the large size of their families. They provided employment to a large number of people in their small units. They faced various infrastructural and marketing problems; however, they did not know how to solve them.

D.Shandhi Revathi and Dr. Jayasree Krishnan (2011) in their study have discussed the study to evaluate motivating factors behind set up of enterprise, major constraints faced by them and the guidance received by women entrepreneurs.

Nirmala in her article (2004) reported that the personality characteristics of entrepreneurs have been proved to have a significant role to play in entrepreneurial skill. It was suggested that ten characteristics viz, passion, self – confidence and taking responsibility, ability to convince, hard working and energetic, innovative, social skills,



ability to think ahead, willing to take risks, willing to learn and positive attitude need to be developed by conscious self training that increase the chances of success greatly.

Anitha H.S. and Laxmisa A.S (1999) in their study have discussed the need for women entrepreneurship and their functions, the factors influencing them and the problems faced by them. They argued for the establishment of separate industrial estates, an industrial development bank exclusively for women entrepreneurs and for imparting management training to them. Objectives of the Study

To study the personal status of dalit entrepreneurs in Paramakudi Town.

To study the factors influencing entrepreneurship among dalit entrepreneurs in Paramakudi Town. Methodology

The researcher has formulated a questionnaire on the basis of the literature relating to the topic entrepreneurship. It is necessary to check interview schedule before actual research is done. In this case, pilot testing was done of 10 entrepreneurs and based on feedback interview schedule was fine-tuned. The study was confined to Paramakudi Town in Ramanathapuram District. From this town 120 entrepreneurs were selected for the study based on their co-operation and willingness to respond. The required information relating to general background and factors influencing entrepreneurship were collected by administering an interview schedule to the respondents. Area of the study The area of the study is confined to Paramakudi Town at Ramanathapuram District in Tamilnadu. It is situated at a distance of 75Km east of Madurai and 35Km west of Ramanathapuram. The town is surrounded by urban centers namely Manamadurai on north, Mudukulathur on the south, Ramanathapuram on the east and Tiruchuli on the west. Period of the study This study covers a period of six months from January 2013 to June 2013. Data Collection Method

Both primary and secondary data were collected. The research instrument for primary data collection was interview schedule. The secondary data were collected from books, journals, reports from Government records. Hypothesis 1. H0: There is no significant difference between

gender and factors influencing entrepreneurship.

2. H0: There is no significant difference between education and factors influencing entrepreneurship.

3. Summary of Findings

It is revealed that among the 120 entrepreneurs majority (57.5 percent) were male and remaining 42.5 percent of the entrepreneurs were female category. It is evident that majority of the respondents (40 percent) were in the age group of 30 – 35 years. Only 7.5 percent were in the age group of above 45. Most of the entrepreneurs eighty percent were married. In the selected area 57.5 percent of the respondents have obtained school level education and 22.5 percent of the entrepreneurs were obtained under graduation. Only 5 percent of the entrepreneurs were obtained post graduation.

In the selected area, 40 percent of the entrepreneurs were belonging to joint family and 60 percent were belonging to nuclear family. Fifty percent of the entrepreneurs were getting their monthly family income as Rs. 10000-20000.

It is understood that previous experience have played a remarkable role in the development of entrepreneurship as evidenced by the data that 27.5 percent entrepreneurs were in the same trade before becoming an entrepreneur. It is a welcoming feature that 20 percent of the entrepreneurs who were house wives have turned to entrepreneurship. Table 2: Reason for selection of particular business –

age wise

Reasons Below 30

30 - 40

Above 40

Interest in business 1 2 2

Experience in business

4 3 5

Training in business 2 4 7

Easy to enter 3 1 1

High profit margin 7 5 4

Friends and relatives in this line

6 6 3

Advice of friends and relatives

5 7 6

It is observed from the table 2 that the

entrepreneurs in the age group of between 30 to 40 and above 40 have given first rank to the reason “easy to enter” and entrepreneurs whose age group below 30 have given first rank to the reason “interest in business”.

Table 3: Reason for selection of particular business –

income wise

Reasons Below 10000

10000 - 20000

Above 20000

Interest in business 3 1 2


7 2 3

Training in business 1 4 6

Easy to enter 2 3 1

High profit margin 6 5 5




4 6 4


5 7 7

It is seen from the table 3 that entrepreneurs falling in the group of below 10000 have given first rank to the reason “training in business”. Entrepreneurs falling in the category of 10000 – 20000 have given first rank to “interest in business” and the entrepreneurs earn income above 20000 have given first rank to “easy to enter”.

Table 4: Reason for selection of a particular business

– educational level wise

Reasons Illiterate

School

Diploma

Graduate

Interest in business

3 2 4 1


2 5 7 2

Training in business

1 6 1 4

Easy to enter

4 1 2 3

High profit margin

7 3 5 7


5 4 3

6


6 7 6

5

It is evident from the table 4 that illiterate group entrepreneurs have given first rank to the reason “training in business”. Entrepreneurs at school level education have given first rank to “easy to enter”. Graduation entrepreneurs have given first rank to “interest in business”.

Table 5: Difference between gender and influencing

factors of Entrepreneurs

Factors Sum of squares

Degrees of freedom

Mean square

F - ratio

Between groups Within groups Total

27248.4 202071.6 229320.0

1 8 9

27248.40 25258.95

1.07

It is seen from the table 5 that the calculated

value is 1.07 and the table value at 5% level of significance is 5.32. The calculated value (1.07) is less than the table value (5.32) so the null hypothesis is accepted. Hence it is concluded that there is no

significance difference between gender and factors influencing entrepreneurship.

Table 6: Difference between education and

influencing factors of Entrepreneurs

Factors Sum of squares

Degrees of freedom

Mean square

F - ratio

Between groups Within groups Total

472305.60 158342.40 630648.0

4 20 24

118076.40 7917.12

14.91

It is understood from the table 6 that the calculated value is 14.91 and the table value at 5% level of significance is 2.87. The calculated value (14.91) is more than the table value (2.87) so the null hypothesis is rejected. Hence it is concluded that there is significance difference between educational level and factors influencing entrepreneurship. with regards to influence of various factors the entrepreneurs score an ambition to start an enterprise is high and ranked first (480) next to their score is high on the factor desire to make more money is ranked second (453). Entrepreneurs influence level on the factor Government assistance is the lowest (297). It indicates that huge gap between entrepreneurs and Government like unawareness, difficult to contact, huge formalities, lack of communication. Suggestions

In the light of the findings of the research, the

following suggestions are submitted to enhance

the dalit entrepreneurship in Paramakudi Town.

Government should gear up their machineries to

create awareness of their schemes to dalit and

simplify their procedures to avail them.

Financial assistance should be liberalized and

increased to develop the downtrodden society.

The financial institutions shall provide loan with

low interest and simplify the procedure and

obligation of the loan for dalit entrepreneurs.

Conclusion

The various factors influencing entrepreneurship are collected and analysed from dalit entrepreneurs in Paramakudi Town. The One Way Analysis is employed in order to understand the relationship between personal variables and the factors influencing entrepreneurship. The sustained and coordinated effort from all dimensions would pave the way for the dalit moving into entrepreneurial activity thus contributing to the social and economic development of the members of the family and thereby gaining equality and equal importance for themselves.



References Thangamuthu C and Iyyampillai S, “A social profile of entrepreneurship” Indian Economic Journal 31(2) October, 1983, pp 107 – 115. Hadimani R.N, “Social and personality factors in entrepreneurship” Journal of Social and Economic studies 1983 vol. XI pp 69 – 75.

D.Shanthi Revathi and Dr.Jayasree Krishnan “Success and growth of women entrepreneurs in their development” International Journal of Management research and development, vol–1,No-2, May – Oct (2011), pp 38 – 46. Subrata Debranath (2011), “Entrepreneurship Development in North East India”, Southern Economist, Vol 50, No.10, pp 52-54.



ORGANISED RETAIL MARKETING MANAGEMENT IN BENGALURU - A STUDY

*Mukunda Naik D. M. **Dr. Thimmarayappa R.

_______________________________________________________________________________________________________

*Research Scholar, Department of Commerce, University of Mysore, Mysore, Karnataka **Head of the Department, PG Studies in Commerce, Chamarajanagara, University of Mysore, Karnataka, India

Abstract

Retail industry is the largest industry in India with an employment of around 8% and contributing to over 10% of the country’s GDP. It is expected to grow by 25% yearly, being driven by strong income growth, changing life styles and favourable demographic patterns. It is predicted

by 2015 modern retail industry in India will be worth US$ 175-200 billion1. Organised retail business is well spread on Bengaluru with the development of ICT, software, manufacturing industries, establishment of more SEZs, better corporate hospitals, B-schools. Further Bengaluru now-a-days is attracting world players as far as retail business is considered. The retail global plays are shifiting their objective from “maximisation of profits” to “maximisation of customer satisfaction” to “maximisation of customer delight” and hence a succesful retailer is one who manages all the drivers of customer satisfaction and delight. Previous researchers speaks about determinants of customer satisfaction and they are silent as far as managemnt of all retail shops. Managing a retail shop is full of application of skill in order to retain and expand the retailers. Keywords: Retail Managemnt, Skill, Customer Satisfaction Customer Delight changing lifestyles, expanding income, customer attitude.

Intrudoctuion

Retailing in Bengaluru is undergonig a sea of changes and the conventional markets are slowly disappeared and in the place malls, supermarkets, Big Bazaar, speciality stores are established with an intention of meeting the needs of customers. The Indian retail industry is still a unorganised industry wherein 97% of total retail trade is done by this sector. Retail industry is strongly influenced by customers ability to buy willingness to buy and this is supported by actual money spent on requirements and worldwide houseold consumption is increased by 68% between 1980 and 2013 and it is predicted that there will be sharp increase in the household consumption. Retailers in India has to understand both art and science of retailing and how retailers in the other part of the globe are improving managemnt of retail shops and coping with ever growing and

challenging of markets.2 Retail industry is exclusively dominated by food and grocery (98.9%) and run by Kirana stores who are very near to customers. The modern customer would like buy in a wider marketing conditions and never confines only to one shop. Therefore the succesful retail markerters has to manage well all the drivers of customers satisfaction like stores image, locality of retail shop, perceived customer value, quality and freshness of commodities and reasons behind visiting a small or organised market. Objectives of the study (1) To study the demographic variables of respondents in the study area. (2) To know and manage the influencing factors as customer loyalty. (3) To know how to manage stores image. (4) To study and manage perceived customer value. (5) Retail management of quality and freshness of production drivers. (6) To study and managing reasons behind respondents visiting metro malls.

Hypotheses (1) Consumers are under the impression that location will not influence customer loyalty. (2) Image of the store do not act as a key ingredient on customer choice of shopping. (3) There exists a differnce between what is received and what is paid. (4) Respondents do not consider quality and freshnes of commodities. (5) Factors influencing visiting metro malls are not managed properly. Research Methodology A well structured questionnaire was administerd as a schedule keping in the mind to get responses without a fail. Convenient sampling technique was used to collect the data from 300 respondents and all these respondents were personally meet in differnt malls, big bazaars, super markets and hyper markets. It is a known fact that the management of retail stores assures too much importance. Now-a-days organised retailers and giving prime importance to retain the customers and also search new customers. In order to study the management of retail stores in Bengaluru certain variables which deems to be important as far as management of retail stores. They include managemnt locality influencing factors on customers loyalty, stores images, perceived customer value, quality and freshness of products and finally visiting metrol malls by respondents. At no point of time the respondents were asked to give a particular answer and only clarifications were made when they asked. The data collection programme started on July 15th 2014 and ended on August 15th, 2014 and the data collected was presented in the form of tables and quantitative techniques like chi-square and ANOVA was used to arrive at accurate results. Review of Literature

Clarkson et al., (1996)3, Wakefield and Baker (1998)4 in their research paper have stated that one factor that



has been asociated with increasing frequency of visits to a shopping center is “shopping center image”.

Finn and Louvier (1996)5 offer evidence that image of a shopping center influences its inclusion in consumers consideration sets and its choice.

Dennis et al., (2002)6 suggest that shopping center image can be considered brand image and develop a scale measuring brand image, which is associated with a relatively larger trade area.

Dick and Basu (1994)7, Iacobucci et al., 19958, have stated in their research papers that “quality is one dimension on which satisfaction is based” and we view service quality as an antecedent to satisfaction.

Bitner et al., (1994)9 pointed by suggesting that improved service quality will result in a satisfied customer and suggest that to a large extent this relationship is intuitive.

Zeithaml et al.,(1996)10 suggest that a customers relationship with a company is strengthened when that customer makes a favouarable assessment about the company’s service quality and weakened when a customer makes a negative assessment about the company’s service quality.

Danaher and Rust (1994)11 suggest that service quality is associated with likelikhood of recommending a product or services.

Fotheringham (1988)12, in his research they indicated that the choice of a store is very much influenced by location. Survey Findings

Table-1 reveals data about respondents demographic variables. There 180 or 60% male respondents and 120 female respondents. Agewise data reveals that 160 respondents belongs to the age group of 25-35 years. There are 180 nuclear and 120 joint families. Monthly income data indicates that 90 respondents belongs to the income group of Rs. 2500-35000 and 60 respondents belongs to the income group of Rs. 2500-3500 and 60 respondents whose monthly income is Rs. 45000 and 55000 and 56 respondents whose income is above 55000. This sufficiently proves that the respondents in the study area are capable of buying their requirements backed by purchasing power. Further the table also reveals that there are 100 government service employees, 90 private and 35 self employed. Qualification data reveals that majority of respondents are graduates and post-graduates. There are 80 respondents with one member in the family, 60 respondents 2 members, 50 respondents have 3 members in the family and 40 respondents have 4 members in the family. Table-2 reveals the data about managing influence of location on customers loyalty, customers loyalty appears to be one of the most discussed and contentious marketing concepts of recent years (Lam

et al., 2004)13. In these days of wherein a shift in emphases is given by retailing that they like to retain old customers than searching the new one. Customer loyalty in marketing is playing an ever stronger and

more important role within the corporate strategy

(Dixon et al., 2005)14. There are 168 respondents forming 56% who have said that factors of influencing location on customers loyalty should be to a ‘good extent’ be managed as they are going to influence customers loyalty. There are 90 respondents who were agreed on an average the influencing factors of location on customer loyalty should be managed properly. This chisquare analysis supporting this data and customers are not under the impression that locality will not influence customers loyalty in the study area. Table-3 speaks about stores image. The previous researchers in this area speaks that consumers who percive a positive store image reveal more positive effect. Stores image was the significant predictor of

stores loyalty (Harman and Spiro 200515, Bloemer

and de Rutor, 1998)16. 180 respondents strongly agree to manage properly the stated factors in the Table. 80 respondents have greed on this concept and only 40 respondents might have either stood as neutrals, disagree and strongly disagree. The ANOVA analysis clearly says that image of the store acts as a key ingredient in customers choice of shopping. Table-4 belongs to management of perceived customers value. Research suggests that customers may stay loyal to a company if they feel that they are receiving greater value than they would from

competitors (Sirdeshmuk et al.,m 2002)17 According

to Zethml (1988)18 perceived customer value is “the customers overall assessment of the utility of a product based on his perception of what is received and what is given. 140 respondents strongly agree they received for what they have given. Therefore all drivers of perceivedness should be managed successfully. 103 respondents have agreed upon this issue. ANOVA analysis also reveals that there exists no difference between what is received and what is given. A successful retailer has to take note of all these deveopment and managed factors properly. Table-6 reveals about management of reasons behind customers visiting malls. The stated factor in the table has been strongly agreed by 180 respondents and 90 respondents agreed on this issue. A successful retailer is one who manages all the factor well in order to take a better edge in the cometitive market. The ANOVA supports the alternative and rejects the null hypotheses. Conclusion

The study commenced with an object of studying managemnt factors which acts as drivers in managing and controlling retail outlets. Many retailers viewed clearly the retail outlet has to be managed excellently in order to reduce the overheads in the administration of retail shops become very difficult. A successful marketers has to understand the successful management of cash and stock which are to be carefully handled. Besides this the retailers has to understand the global phenomenon of application of



management techniques. The retailers also should keep in touch with the latest developments in the area of income, readyness to spend more, global brands preference. References

(1) Manju Rani Malik. (2011). Determinants of Retail Customer satisafaction. A study of organised Retail Outlets in Kurukshetra. Indian Journal of Marketing. P. 56. (2) Rajhe Bhardwaj. (2009). Impact of Retail attitude perceptions on consumer satisfaction and sales performance, Progyan : JOM. Vol. 7, No. 1, P. 3. (3) Clarkson R. M., Clarke-Hill, C.M., & Robinson, T. (1996). UK Supermarket Location Assessment. International Journal of Retail and Distribution Managemnt, 24(6), 3-22. (4) Wakefield, K.L., & Baker, J. (1998). Excitement at the Mall. Determinants and Effects on shopping. Journal of Retailing, 515-550. (5) Finn A., & Louviere, J.J. (1996). Shopping Center Image, consideration, and choice: Anchor Store coordination, Journal of Business Research, 35(3), 241-287. (6) Dennis, C., Murph, J., Marsland, D., Cockett, T., and Patel, T.(2002). Measuring Image: Shoppinge Centre case study. International Review of Retail, Distribution and Consumer Research, 12(4), 355-373. (7) Dick, A., & Basn, K.(1994). Customer loyalty: Towards an Integrated Framework. Journal of the Academy of Marketing Science, 22(2), 99-113. (8) Iacobucci, D., Ostrum, A., & Grayson, K. (1995). Distinguishing Service Quality and Customer satisfaction. The voice of the customer. Journal of Customer Psychology, 4(3), 277-303.

(9) Bitner, M.J., & Hubbert, A. (1994). Encounter satisfaction. In service quality, New Directions in Theory and Practic. Rubt, R.T. and Oliver R.L. eds. Thousand Oaks, CA: Sage Publications Inc. (10) Zeithml, V.A. Berry. L., & Parasuraman, A. (1996). The Behavioral Consequences of Service Quality. J Mark, 60, 31-46. (11) Dancher, J. Peter, and Ronald, T. Rust, (1994), Determining the optimum level of Media Shopping. Journal Advertising Research, 34, 28-34. (12) Fotheringham, A.S. (1988). Customer Store Choice Set Definition. Marketing Scheme, 7(3), 299-310. (13) Lum, S.Y. Shankar, V., and Murthy, M,K,E,B, (2004). customer value, satisfaction, loyalty and switching costs: An illusion from a Business to business Service Context. Journal of the Academy of Marketing Science, 32(3), PP. 293-311. (14) Dixon, J., Bridson, K., Evans, J., and Marrison, M. (2005). An alternative perspective on Relationships, Loyalty and Future Store Choice. International, Review of Retail, Distribution and Consumer Research, 15(4), PP. 351-374. (15) Hartman, K.B. and Spiro, K.L. (2005). Recapturing Store image in customer based store equity a construct conceptualisation, journal of targeting measurement and analysis of marketing, 12(3), PP. 231-241. (16) Blomer and de Royter (1998). On the relationship between store image, store satisfaction and store loyalty, European Journal of Marketing, 32(516), PP 499-513. (17) Sirdeshmuk, D., Singh, J., and Sabool, B.(2002). Consumer trust, value and locality in Relationship Exchanges, Journal of Marketing, 66(1), PP. 15-37. (18) Zethml, V. (1988). Consumer Perception of price, quality and value: A means end model and synthesis of evidence. Journal of Marketing, 52, 2-22.

Table-1

Respondents Demographic Profile

Sl.No. Characterstics Category Frequency %

1. Gender Male 180 60 Female 120 40 2. Age 15-25 years 30 10 25-35 years 160 53 35-45 years 40 13 45-55 years 20 7 55-65 years 30 10 65 & above 20 7 3. Marital Married 225 75 Unmarried 75 25 4. Family Joint 120 40 Nuclear 180 60 5. Income per month Below 25000 18 6 15000-25000 21 7 25000-35000 90 30 35000-45000 60 20 45000-55000 55 18 55000 & above 56 19 6. Occupation Government 100 33 Private 90 30 Selfemployed 35 12 Housewife 50 17 Divorce 13 4 Widow 12 4 7. Qualification 10th standard 50 17 10+ 60 20 Graduate 80 27 PG 70 23 PG+ 30 10



Others 10 3 8. Members in the family 0 30 10 1 80 27 2 60 20 3 50 17 4 40 13 5 10 3 5+ 30 10

Source: Primary Data Table-2 Influence of location on customers loyalty

Income Grade Good Extent Average Somewhat Total

Lower Income 20 10 9 39 Middle Income 100 30 20 150 Higher Income 48 50 13 111

Total 168 90 42 300

Source: Primary Data Hypotheses

H0 : Consumers are under the impression location will not influence customers loyalty Reject H1: Customers are not under the impression that locality will not influence customers loyalty Accept

Chisquare Table Calculated value 24.1564, d.f. = (r-1)(c-1) = (3-1)(3-1) = 4 Significance level 5% TV = 9.488 Chisquare Analysis The calculated value being 24.1564 which is greater than TV = 9.488 @ 5% level of significance with d.f. = 4, rejects the null hypotheses and accepts the alternative. The alternative hypotheses may be that consumers are under the influence that location will influence customers loyalty. Table-3 Managing Stores Image

Factors SA A N DA SDA Total

Repeat purchases are made 40 15 4 1 2 62 Image decides customers shopping choice 32 14 3 2 4 55 If imagene bad customers go to rivals 38 18 1 3 3 63 Stores image influences customers loyalty 36 15 2 2 3 58 Image is a driver to buy all requiremnts 34 18 5 2 3 62

Total 180 80 15 10 15 300

Source: Primary Data Note: SA = Strongly Agree, A = Agree, N = Neutral, DA = Disagree, SDA = Strongly Disagree Hypotheses

H0 : Image of the store do not act as a key ingredient on customers choice of shopping Reject H1: Image of the store acts as a key ingredient in customers choice of shopping Accept

ANOVA Table



Source of Variation SS d.f. MS F-ratio 5% F-limit (From F-table)

Between Sample 4274 (5-1)=4 4274/4 1068.5/ F(4,20) =1068.50 3.4 =2.87 =314.264 Within Sample 68 (25-5)=20 68/20 =3.4

Total 4342 (25-1)=24

ANOVA Analysis

The above ANOVA table reveals that the calculated F value being 314.264 greater than the TV = 2.87 @ 5% level of significance withi d.f. V1 = 4 and V2= 15 rejects the null hypotheses and accepts the alternative. Therefore we may conclude that image of the store act as a key ingredient in customers choice of shopping. Table-4 Perceived Customer Value


Receive greater value than the other retailers 25 18 7 3 3 56 Receiving and giving are similar 28 22 6 2 2 60 Obtains strong value for money 30 17 5 4 4 60 Generates positive feeling towards shop 24 19 3 3 4 53 Greater satisfaction leads to higher satisfaction 33 27 03 3 5 71

Total 140 103 24 15 18 300


H0 : There exist a difference between what is received and what is given Reject H1: There exist no difference between what is received and what is given Accept

ANOVA Table


Between Sample 2703.6 (5-1)=4 2703.6/4 675.9/ F(4,20) =675.9 7.66 =2.87 =88.2375 Within Sample 153.2 (25-5)=20 153.2/20 =7.66

Total 2856.8 (25-1)=24

ANOVA Analysis The above ANOVA table reveals that the calculated F value being 88.2375 greater than the TV = 2.87 @ 5% level of significance with a d.f. V1 = 4 and V2= 20 rejects the null hypotheses and accepts the alternative. Therefore we may conclude that there is no difference between what is received and what is given and customer perceivedness exists in the study area. Table-5 Retail Managemnt of Quality and Freshness of Products


Respondents like quality 20 21 1 4 4 50 Respondents like fresh commodities 24 20 2 4 3 53



Price is secondary 21 18 3 2 2 40 Respondents prefer continuous supply of quality products 23 18 2 2 5 50 Retailers hould offer only qualitative commodities 18 16 1 3 3 41 Respondents prefer no compose of quality at any cost 34 17 3 3 3 60

Total 140 110 12 18 20 300


H0 : Respondents do not consider quality and freshness of commodities in the study area Reject H1: Respondents do consider quality and freshness of commodities in the study area Accept

ANOVA Table


Between Sample 2427.1004 (5-1)=4 2427.100/4 606.7751/ F(4,25) =606.7751 7.5760 =2.76 =80.0917 Within Sample 189.4004 (30-5)=25 189.4004/25 =7.5760

Total 2616.5008 (30-1)=29

ANOVA Analysis

The above ANOVA table shows that the calculated value being 80.0927 bigger than TV = 2.76 at 5% level of significance with degre of freedom V1=4 and V2=25 rejects the null hypothese and accepts the alternative. Therefore we may conclude that respondents in the study area considers quality and freshness of commodities. Table-6 Managing Reasons behind Respondents Visiting Metro Malls


Reasonable price management 25 12 1 1 2 41 Quality Management 23 11 1 2 3 40 Modern decoration & location of Mall 38 18 3 1 1 61 Managing Word of Mouth Ad. neatly 34 10 3 1 1 49 Managemnt of Discounts Coupons 25 19 2 1 2 49 Managing Sales Personal 35 20 2 2 1 60

Total 180 10 12 8 10 300

Source: Primary Data Note: SA = Strongly Agree, A = Agree, N = Neutral, DA = Disagree, SDA = Strongly Disagree



MICRO FINANCE POVERTY ALLEVIATION AND WOMEN EMPOWERMENT IN BANGALORE URBAN - A CRITICAL ANALYSIS

*F. Arockia Doss **Dr. Kalaivani K. N.

_______________________________________________________________________________________________________

*Research Scholar, Bharathiar University, Tamil Nadu, India **Assistant Professor, Govt. First Grade College, Anekal, Bangalore

Abstract Across the globe it is accepted that micro finance activities plays an instrumental role in the poverty alleviation programmes. Women plays an important role in the economic development of any country. It is a well known fact that urban centres enjoys a wide network of formal financial services. But unfortunately formal banking system is not including financially the urban poor whose income is unstable, insecure and hand-to-mouth. Even the priority sector creation aiming at helping the poor is not serving the poor self help group bank linkage (SBLP) is the largest micro finance activity in the world. The main objective of microfinance is to include the untouched and bring him to the network of organised finalicial system. The present study reveals that there is a significant increase in decision making, involvement in social activities, enhancement of personal income and decision making. Keywords: SHG, Alleviation of poverty, empowerment of women, popular SHG models, decision making.

Introduction

Finance is one of the crucial inputs for ecnomic activity, growth and development of any country. Provision of financial services to the poor and under privileged section of the society has been always in the focus of various programmes which is run by the government since independence. Despite having a well developed network of urban branches of organised financial system in Bengaluru and previous programmes undertaken could not yield expected results in the area of employment generation, saving mobilsation and enhancemnt of income and a large number of poor people especially women continues to be remain outside the perview of formal banking system. Therefore, a need was felt for alternative policies, system and procedures, other complimentation of services and new delivery mechanisms, which would provide financial requiremnts to urban poor with the main objective of women empowerment. Objectives of the study

(1) To study the impact of incomes and savings of the members. (2) To study the impact of measurement: knowledge and awareness. (3) To study the impact of measurement: knowledge and awareness external matters. (4) To study the impact of measurement of women empowerment. Hypotheses (1) There is no enhancement of income and savings of SHG members. (2) Results of impact management knowledge and awareness in terms of variables mentioned in the table is not significant. (3) The result of impact measurement knowlege and awareness external matters is not significant. (4) There is no women empowerment in the study area.

Research Methodolody

A well structured questionnaire was administered as schedule taking into account the literacy rates of slums and outerskirts of Bengaluru. 300 samples were found to be fit to represent the women members universe. Convenient sampling technique was used to collect the valuable data. The data collection for the said purpose commenced on May 15, 2014 and ended on June 14th, 2014. The collected data was presented by means of tables, and extensive use of percentages was made. Quantitative techniques to know good fit of the data like Chisquare and ANOVA were employed to arrive at accurate conclusions. To study before joining on SHG and after leading on SHG was studied the quantitative technique like Wilcoxon Matched pair test was used. Limitations

The study is confined only to Bangalore and any generalisation needs further deep research. Further the study also suffered limitation of finance and time. Rationale of the study The present study makes a sincere attempt to study the impact factors which are going to create impacts on the socio-economic life of people. The impact creating variables may be (1) Increased knowledge and awarenss of SHG members, (2) Increased income and savings of the SHG members, (3) Increased decision making power of the SHG members in their family units. Bengaluru is one of the fastest growing city in Asia. The growth of Bengaluru is crossing the limitations and going beyond ones imagination. The trend setting scenario in Bengaluru is catching the eyes of all existing and potential marketers, banks, corporate styled hospitals B-schools, centre of I.T, and providing jobs to many. There exists a better banking network system, but unfortunately the people who are living in slums, outerskirts are untouched majority of them are marginal labourers, small traders petty shop keepers whose income is unstable, irregular and income is hand-to-mouth are completely ignored by formal banking system.



Further, the purpose of creating ‘priority sector’ is not served properly. Review of literature

Datta et al., (2001)1 have found that the familiarity of members, helping each other in the SHG and business loan per member positively influence the average monghtly income of the SHG member in Tirupati district of Andhra Pradesh.

Bhide(2003)2 has reported that the formation of SHGs through Maharashtra rural Credit Program slightly increased the income of the members and help poor people shift towards self employment.

Nirmala et al., (2004)3 have shown that a shift from farm to non-farm occupation, higher assets possession and larger credit amount reduce and higher income of husband raises the monthly earnings of the SHG members in rural Puducherry.

Morduch, Armendariz, B. (2007)4 and Karlan (2001)5 in their study they have stated that they have scanned the SHGs to measure impact, but did not include the statistical and economic tools and so these studies provided the views without much scientific inquiry.

Panda, (2009)6 in his study he has stated that Grameen Joint liability Groups (JLGs) of Bangladesh but it has wide applicability in addressing the various socio-econmic characterstics of people apart from credit and saving like empowerment literacy and enterprise development.

Doocy, (2008)7 said that in some developing countries confirm and acknowledge the positive impact of microfinance.

Berg et al., 19988, Fugle song and Chander, 1996,9 have stated that Self Employment womens Association(SEWA) and MYRADA in India. Action communitaria in Peru, Amnah Ikhtiar Malaysia in Malaysia, are among those who have successfully served hundreds of thousands of the world’s poor particularly targeting women. Survey Findings Large number of women both in urban, semi urban and rural areas benefited very much through the SHG model who are untouched by any formal financial sector. At the same unfortunately the SHGs are not spread over through the country and concentrated only 4 Southern states of Karnataka, Kerala, Andhrapradesh and Tamil Nadu (AP tops the list with 39%) followed by Eastern region by 13%. The most poor states like Binar Madya Pradesh, Rajasthan and (undividied) UP have only a small presence of SHGs. Table-1 reveals that the total number of SHGs as per statement II-B issued by NABARD for the year 2011-12 reveals that Southern region tops first both in number of SHG and loan amount disbursed. There were 705419 SHGs and the amount disbursed stood at Rs. 1266176.27 (lakhs). Eastern region consisting A&N islands, Bihar, Jharkhan, Odisha, West Bengal tops second in the formation SHGs and loan disbursement. The total number of 201201(3.5 times lower the Southern States in number)(7.8 times lower in loan

disbursement) of SHGs have formed and loan amount disbursed stood at Rs. 162406.15 (lakhs). The lowest SHGs formed in Northern region and SHGs stood at 30751 (23 times lesser than Southern region). NABARD encourages the banks to lend directly to SHGs by refinancing the loans they make to sSHGs. As on 31st March 2012, 20% of the total SHGs were made Model-I, i.e., SHGs formed and financed by banks, 72% were Model-II, i.e., SHGs formed by formal agencies other than banks, NGOs and others but directly financed by banks, and 8% have SHGs financed by banks using NGOs and other agencies as financial intermediation. Microfinancing in India-performance wise upto March 2012 (cumulative) is presented in the Table-2. The Table-2 reveals that SHG linkage programme with 1147878 (90% women groups) 16 million low income households, commercial banks being highest in extending credit facility, now access credit from NABARD, via 48 commercial banks, 196 regional rural banks, 361 co-operative banks. About 50% all SHGs were linked with commercial banks followed by 39% with RRBs. Increase Income and Savings of the SHG members The impact of income and the impact of savings are interrelated. The increased income of the SHGs members can be termed as an improvement economically and here we find improved standard of living. Table-4 reveals clearly increased income of the members excluding the food expenditure and the bulk of increased income from Rs. 11500 occured between the first and the third year of existence of SHG. The increasedness may be under or over estimated since the members sometimes does not give reliable information about their indebtedness and many of the respondents would like to hide the matter. But indirectly quantum of income can be measued by taking data on expenditure made on festivals, social event celebration. The data on savings reveals that major portion of financial savings occured in the third and above years. Result of the impact measurement : knowledged awareness : internal matters Table-5 reveals data about result of impact of measurement knowledge and awareness. The external variable considered as parameters of measuring the variable expressed in the table varies from awareness of SHGs to knowledge about common property management. 170 respondents strongly agreed the variable stated the table are considered while measuring impactness of knowledge and awareness. 90 respondents have agreed over this issue and 40 respondents stood as either neutral, disagree or strongly disagree. The ANOVA analysis reveals that since the calculated value being greater than the table the null hypotheses is rejected and the alternative is accepted. Therefore we may conclude that the results of impact measurement knoweldge and awarenss in terms of variables mentioned in the table is significant.



Result of impact measurement: Knowledge & Awareness - external factors. Table-6 measures impactness of knowledge and awareness. The various factors considered as parameters varies from external matters like attending meeting to awareness of making entries in the passbook. 180 respondent out of 300 have agreed that the stated factors influcend in dividing or measuring the awarness and knowledge. 90 respondents have agreed on this issue and 34 respondents might have stood as neutral, not aware and strongly not aware. The ANOVA analysis also rejects the null hypotheses and accepts the alternatives. Therefore we may conclude that the result of the measurement knowledge and awareness is sigificant. Impact measurement of Desicision Making

Across the globe it is seen that womens are particpating in all activities and participate also in decision making about some variables which are going to affect their family. Women if they mind can positively contribute a lot for the growth the family. A well strengthend social positin of women would also result in an increase in the decision making power of women in their families. For the measuremnt of the decision making power fo SHG members 6 typcial decisions generally made by them were selected. These decisions on the purpose of loan, use of income generated purchase of household infrastructure, purchase of household goods, children’s education and finally jewellery purchase are analysed according to the degre of womens participation in the actual decision making process. The assessment result are shown in Table-7. Table-7 reveals a shift from 16% 32% from husband domination to wife domination in the decision making process of purpose of loan, use of income generated, a reduced participation in buying of household goods 29% to 23% and similar trend in case of children’s education and as far as jewellery purchase is considered there is increase in participation the decision making was 27% increased to 31%. The percentage of joint decision has shown an upward trend in only the case of jewellery purchase and is all their variables there exists a decrease in the joint decision making power with regard to decision on the adoption of household purchase of infrastructure. We find decision making power of husband dominating over the wife domination. As far as use of income generated the decision making power of both husband and wife shows an increasing trend. The husband decision making power increased from 39% to 41% and wife decision making power has susbstantially increased from 19 to 36%. In case of children education purpose of loan deciding we find

increase in wife power of decision making. The husband decision making power decreased to 38% from 56% and childrens education we find the same trend pressence and decreased to 39% from 47%. Conclusion

The study started with an intention of measuring the overall impact on the socio-economic life of people in urban centers. The application of statistical tools gave a scientific touch to the present study. Microfinance programmes is rated as a best means of poverty elimination through providing jobs to many unemployees, develops entreprise nature, helps to mobilse savings. The present study reveals that there is increase in average non basic income of the SHG member. The Wilcoxan Matched Pair Test also reveals clearly the impact before and after joining the SHG and the level of incease in income of the members after joining the SHG. Further SHGs are popular since they are teaching internal management factors like conduct of meeting, record writing, Passbook entry, awareness of healthy sanitary. The population data 2011 census reveals reduction in poverty but absolute poverty remains the same. Therefore micro finance programmes in future can address this kind of problems and capable of stablising the poor people. References (1) Datta, S.K. and M, Raman. (2001). Can Heteregeneity and social cohesion co-exist in SHGs? An evidence from group lending in Andhra Pradesh in India. Indian Journal of Agricultural Economics, Vol. 56, No. 3, PP 387-400. (2) Bhide, A. (2003). SHGs under Rural Credit Programme: Experince from Maharashtra Credit: A key to prosperity. A path to Doom. IASSI Quarterly, 21, 3 & 4, PP. 164-173. (3) Nirmala, V.K.S., Bhat, & Buvaneswari, P. (2004), SHGS for poverty Alleviation in Pondicherry, Journal of Rural Development, 23(2), PP-203-215, NIRD, Hyderabad. (4) Armandariz, B. & Morduch, J. (2007). The Economics of Micro Finance. New Delhi: Prentice Hall of India Private Ltd., (5) Karlan, D.S. (2001). Microfinance impact assessment: The peril of using new member as a control group. Journal of Microfinance, 2(3), 75-84. (6) Panda, (2009). Understanding Microfinance, New Delhi: Weiley India Pvt. Ltd. (7) Doocy, Shanmon, C.(2004). Recurrant drought in Ethiopia, Microfinance programs as means of improving coping capacity, unpublished Ph.D. disertations. The John Hopicims University (See: www.lib.umi.com/dissertations.) (8) Beng et al., (1988). NGO participatory impact monitoring of an Integrated Rural Development project in Holalkere Taluk, Karnataka State, India. (9) Fuglesong and Chondler. (1996). Participation as proces: What we can learn from Grameen Bank, Bangladesh, Packages Corp. Ltd., Chittagang.

Table-1 Operational Models of SHGs of Bengaluru

Models Role of NGO Role of Bank Remarks

SHGs formed and Nil Forming NABARD Provides financed by Banks Nurturing & finance to willing RRBs Financing Direct contact with clients



SHGS quick decisions. Non- interference of others SHGs formed by Forming & Financing Popular model at NGOs / Farmers / Nurturing SHGs Bengaluru Clubs / Govt. Depts Groups facili- Majority of the SHGs and Financial by tating linkage are formed under Banks with banks this model. by liasoning with banks SHGs forming by Forming and Financing NGOs The share of SHGs banks using NOGs Nurturing Federation for linked under this model or intermediate Gourps on lending to the is relatively low. structure Financing of groups no cost SHGs to bank.

Source : Secondary Data Table-2 Microfinancing in India - Performance upto March 2012 (Cumulative) Particulars 2000-01 2003-04 2007-08 2009-10

Number of SHG provided 263825 461478(75) 717360(55) 304909(160) with bank loans Percentage of women groups 90 90 90 90 Number of participating banks 314 414 504 560 Commercial Banks 43 44 48 48 Regional Rural Banks(RRB) 177 191 192 196 District Co-operative Banks - 94 209 264 (DCB) Bank branches participating - 17085 30942(81) 35294(14) Number of states and union ALL ALL ALL territories partipating Bank loans (Rs. billion) 4.8 10.3 20.5 39.0 Refinance (Rs. billion) 4.0 8 142 21.2 Number of districts covered 412 488 523 563 Number of Partner agencies 1030 2115(106) 2800(32) Number of families assited 4.5 7.85(74) 11.6(48) 16(38) (in Million) Average loan/SHG(Rs) 18.271 22.240(22) 28560(28) 36182(27) Average loan/family (Rs) 1.072 1.316(23) 1766(34) 2440(38) Source : Progress of SBLP in India 2012-13 NABARD. Table-3 Measurement of Income before joining and after joining an SHG.

Income Before After Difference Difference Sign of Joining Joining Rank Rank

1500 2000 -500 -5.5 -5.5 - 2000 2600 -600 -3.0 -3.0 - 2200 1800 +400 -7.0 - +7.0 2500 3000 -500 -5.5 -5.5 - 3000 3300 -300 -8.0 -8.0 - 3500 4100 -600 -3.0 -3.0 - 4000 4800 -800 -1.0 -1.0 - 4500 5100 -600 -3.0 -3.0 -

TOTAL -29 +7.0

Hypotheses: There is no difference betwen before and after joining the SHG.



Wilcoxin Matched Pair Test Analysis:

The Table value of T at 5% level of significance when N = 8 is = 4 using a two tailed test since our alternative hypotheses is that there is no difference betweeen before and after joining the SHGs. The calculated value 29 is bigger than the TV of 4. As such we accept the null hypotheses. Therefore we may conclude that the income of the members enhances after joining the SHG. Table-4 Increased Income and savings of the SHG Members Age of SHGs 1-2 years 2-3 years 3 & above years

Average household 11500 14200 16600 non-basic income (income excluding food and expenditure) average monthly savings in Kind Rs. 1200 Rs. 1480 Rs. 1610 Financial Saving Rs. 1000 Rs. 1200 Rs. 1350 Total Rs. 2200 Rs. 2680 Rs. 2690

Source Primary Data Table-5 Result of impact of measurement, knowledge awareness, internal matters

No. Factors SA A N DA SDA Total

Respondents are aware of SHGs 34 10 2 1 4 51 Respondents are aware of Banking 22 22 3 1 2 50 Respondents possess knoweldge and 38 16 1 2 5 62 awareness of income generating activities Respondents are cautious about 19 14 3 1 1 38 Health and Sanitation Respondents are aware of 35 16 2 1 4 58 educating their children SHG members (respondents) are aware 22 12 3 2 2 41 and possess knowledge of common property management

Total 170 90 14 08 18 300

Source Primary Data Hypotheses

H0 : Results of impact measurement knowledge and Reject awarenss in terms of variables mentioned in the table is not significant H1: Results of impact measurement: knowledge and Accept awareness in terms of variables mentioned in

the table in the table is significant. ANOVA Table

Source of vaiation S.S. d.f. M.S. F-ratio 5% F Limit (From the F-table)

Between Sample 1643.4223 (5-1)=4 1643.4223/4 416.8555/ F(4,25) =410.8555 15.1723 = 2.76 =27.0793 Within Sample 439.9988 (30-5)=25 15.1723

Total 2083.4211 (30-1)=29

ANOVA Analysis



The above ANOVA table reveals that the calculated value of F is 27.0793 which is biggerthan the table value 2.76@5% level of significance with d.f. V1=4 and V2= 25 rejects the null hypotheses and accepts the alternative. Therefore we may conclude that results of impact measurement knowledge and awarenes in terms of variables menionted in the table is significant. Table-6 Result of impact measuremnt: knowledge and awareness External matters

Variables Well Aware Aware Neutral Not Aware Not well Total aware

Attending Meeting 34 13 2 3 2 54 Record Maintenance 19 17 1 2 3 42 Aware of benefits of 42 10 1 1 2 56 SHG formation Aware of problems 32 18 1 1 2 54 overcome after joining SHGS Aware of importance 31 14 2 1 3 51 of Training Aware of making entries 22 14 1 3 3 43 in the passbook Total 180 86 08 11 15 300

Source: Primary Data Hypotheses

H0 : The result of impact measurement: knowledge and Reject awarenss is not significant H1: The result of the impact measurement knowledge Accept and awareness insignifcant

ANOVA Table

Source of vaiation S.S. d.f. M.S. F-ratio 5% F Limit (From the F-table)

Between Sample 3701.5002 (5-1)=4 3701.5002/4 925.3750/ F(4,25) =925.3750 15.86 = 2.76 =58.3464 Within Sample 396.5002 (30-5)=25 396.5002/25 = 15.8600

Total 4098.0004 (30-1)=29

ANOVA Analysis The above ANOVA table reveals that the calculated value of F is 58.3464 which is bigger than the table value 2.76@5% level of significance with d.f. V1=4 and V2= 25 rejects the null hypotheses and accepts the alternative. Therefore we may conclude that result of the impact measurement knowledge and awareness is significant.



A STUDY ON FINANCIAL PERFORMANCE OF MAHARATNA COMPANIES WITH SPECIAL REFERENCE TO BHEL

*Dr.G.Madan Mohan **Mussarat Ahmed

_______________________________________________________________________________________________________

*Assistant Professor, Department of Management Studies, Pondicherry University. **Research Scholar, Department of Management Studies, Pondicherry University.

Abstract

Public Sector Undertakings in India have played a vital role in kindling economic development. Huge public money has been invested in these units and hence their financial health and performance is of absolute essence for the country. Hence, an attempt has been made in this paper to study the comparative performance of the seven Maharatna companies namely, ONGC, BHEL, SAIL, IOCL, GAIL, NTPC and Coal India. Descriptive study has been conducted to rank the seven Maharatna PSUs based on their financial performance using the Data Envelope Analysis. Results reveal that Coal India has performed consistently well during 2003-12, while BHEL has also performed significantly well.

Introduction Public Sector Undertakings (PSUs) are undertakings owned and managed by the Central Government or by the Central and state governments jointly, or by different state governments. The socialistic pattern of economy adopted by India since independence led to the incorporation of many state owned enterprises. The government tried to achieve economic development through these state-owned enterprises. However, need was felt for giving more autonomy to these enterprises to facilitate them to compete with private enterprises, which are flourishing in the country, especially after the liberalisation of the economy. In this endeavour, the government listed some PSUs as Navaratna companies and Maharatna companies depending on them satisfying certain conditions. Accordingly, on 2009, the Government of India came out with a list of Maharatna public sector undertakings (PSUs), which were granted autonomy to invest in projects costing Rs. 5000 crores compared with Rs. 1000 crores in the case of Navratna companies. Currently, there are seven Navratna companies, which are coal india Limited (CIL), Indian Oil Corporation (IOC), NTPC Limited, Steel Authority of India limited (SAIL), Bharat Heavy Electricals Limited (BHEL), GAIL (India) Limited and Oil and Natural Gas Corporation (ONGC). The criteria needed for PSUs to qualify as Maharatnas are:

1. A Navratna company; 2. Three years with an annual net profit of over

Rs. 2,500 crores; 3. Net worth of Rs. 10,000 crores; 4. Turnover of Rs. 25,000 crores.

Bharat Heavy Electricals Limited (BHEL): Established in 1964, the company now holds a very dominant position as an integrated manufacturer in the power plant equipment market. It is also engaged in the business of design, engineering, manufacturing, construction, testing, commissioning and servicing of a variety of products and services in various sectors apart from power such as transportation, renewable energy, oil & gas, etc. It has more than 150 project sites across India as well as abroad. The Government of India is a major shareholder in the company, owning 67.72 per cent of the total outstanding shares.

With its dividend of Rs 6.40 per share during 2012, the company had a dividend yield of 3 per cent. This accounted for a dividend of Rs 1,060 crore during 2012. However, the dividend paid during 2012 was lesser than the earlier years due to worrisome outlook for capital goods’ sector. On 24th December of 1991, BHEL was converted into a public company and was accorded a Navratna status due to its profits exceeding the 1000 crore mark. Continuous and relentless performance won BHEL Maharatna status on February, 2013. Objectives Of The Study 1. To compare the financial performance of BHEL

with Maharatna companies; 2. To rank the Maharatna companies based on their

performance using DEA. Methodology The proposed research is descriptive in nature, purely based on secondary data, collected from annual reports and company websites and CMIE Data source and Money control and Economic times. Financial data pertaining to Maharatna companies for ten year period of 2003-12 have been collected and analysed using MS Excel, Data Envelope Analysis and SPSS, employing the statistical tools of Ratio Analysis and DEA. Ratios of Maharatna Companies Profitability Ratios: The profitability position of a company can be revealed from the profitability ratios such as GPR (Gross Profit Ratio), NPR (Net Profit Ratio), OPR (Operating Profits Ratio), RCE (Return on Capital Employed) and RNW (Return on Net Worth). The first three ratios reveal the operational efficiency of a company, while the last two ratios portray the returns offered by the company to its owners. The profitability ratios of Maharatna companies for the ten year period of 2003-12 have been displayed in Table 1, which reveal that OPR of BHEL witnessed an upward surge until recession, since which there was a downward trend. However, the trend has shown an upward surge in the recent years. OR of BHEL has been lower than that of coal India ltd, NTPC and ONGC during 2012, though the same is higher than that of GAIL, SAIL and IOCL. GR of BHEL has exceeded the Maharatna companies of GAIL, SAIL



and IOCL during 2012, though Coal India, NTPC and ONGC have better GPR. NPR has been improving for BHEL over the past. ONGC, SAIL, IOCL and Coal India have exceeded

BHEL in NPR during 2012. BHEL is the second best company as far as ROCE and RNW are concerned, as Coal India is the only Maharatna Company with higher ROCE and RNW when compared with BHEL.

TABLE 1: PROFITABILITY RATIOS

Solvency and Liquidity Ratios: The short run and long run solvency of a company is absolutely necessary to honour its short and long term commitments and obligations as well as to seize all opportunities that the environment may present for the business. The ratios available to gauge the short and long run solvency of a company are CR (Current Ratio), LR (Liquid Ratio) and D/E Ratio (Debt Equity Ratio).

TABLE 2: Solvency and Liquidity Ratios

PSU Ratio 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003

BHEL

OPR 20.72 19.77 17.4 14.84 19.17 20.14 16.54 13.52 10.62 13.65

GPR 19.05 18.47 16.02 13.55 17.65 22.41 18.1 15.38 12.9 15.74

NPR 14.35 13.99 12.49 11.17 13.87 13.51 12.19 9.58 7.91 6.14

RCE 40.5 44.27 41.6 36.92 41.56 42.84 29.35 21.22 16.03 18.91

RNW 27.89 30.03 27.22 24.1 26.53 27.48 23 15.82 12.43 9.25

CIL

OPR 25.1 21.76 25.27 11.17 12.32 14.21 9.66 7.66 9.68 12.21

GPR 27.89 30.03 27.22 24.1 26.53 27.48 23 15.82 12.43 9.25

NPR 21.14 16.38 16.44 3.96 13.66 14.21 11.21 7.89 15.41 13.38

RCE 50.81 45.49 57.35 36.51 37.11 22.22 12.12 10.31 10.66 1.85

RNW 36.55 31.1 35.28 10.19 25.84 22.29 15.09 12.87 15.11 3.06

GAIL

OPR 16.47 18.5 21.05 18.85 24.51 19.83 25.59 27.1 28.27 26.81

GPR 14.12 15.97 18.01 15.94 20.99 16.07 21.54 20.03 28.66 27.12

NPR 9.94 11.27 12.05 11.16 14.39 14.89 15.89 14.31 15.33 14.05

RCE 18.79 21.93 22.04 22.76 23.96 20.76 29.63 28.46 30.81 32.16

RNW 17.83 18.95 18.68 18.35 20.53 21.53 23.76 23.15 25.11 25.86

SAIL

OPR 13.86 17.3 23.81 20.66 28.5 28.49 22.34 33.6 18.19 11.86

GPR 10.22 13.55 20.3 17.62 25.3 24.82 17.94 29.61 12.89 6.04

NPR 7.5 11.25 15.93 13.55 18.26 17.53 13.76 22.05 11.15 -1.73

RCE 11.06 13.03 20.29 26.92 42.76 44.13 35.8 63.94 27.44 5.88

RNW 8.92 13.34 20.29 22.1 32.7 36.1 32.64 75.56 70.11 33.01

NTPC

OPR 22.95 27.09 30.53 24.29 30.4 30.26 29.51 31.71 26.51 28.15

GPR 18.23 22.36 24.54 18.66 24.7 24.07 22 23.28 16.67 25.53

NPR 14.25 15.57 17.26 17.01 17.94 18.82 19.34 22.51 21.04 18.54

RCE 11.43 12.86 13.64 11.77 14.74 14.3 12.78 13.19 18.04 9.89

RNW 13.19 13.73 14.18 14.09 14.13 14.16 12.97 13.94 14.64 11.45

IOCL

OPR 4.75 4.29 6.16 4.6 5.92 6.09 5.6 7.09 9.99 9.32

GPR 3.45 2.71 4.76 3.5 4.61 4.62 4.03 5.3 8.21 9.12

NPR 1.02 2.47 4.15 0.89 3.39 3.85 3.0 4.02 6.29 5.54

RCE 12.83 10.81 15.74 14.2 16.04 17.12 12.8 17.24 29.48 27.42

RNW 6.99 13.6 20.42 5.71 18.19 21.63 16.12 19.95 31.38 32.31

ONGC

OPR 39.86 40.85 43.84 40.96 41.94 43.41 44.18 47.26 44.89 40.84

GPR 31.08 33.69 25.53 26.21 27.59 28.85 30.39 34.99 29.88 29.03

NPR 18.5 18.16 18.34 18.08 19.65 20.5 21.01 23.31 20.44 17.31

RCE 26.42 37.32 23.7 32.64 39.25 41.26 33.19 37.07 27.48 48.09

RNW 20.62 19.6 19.29 21.61 25.67 26.84 27.29 29.83 23.02 29.46

PSU Ratio 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003

BHEL

D/E 0.01 0.01 0.01 0.01 0.01 0.01 0.08 0.09 0.1 0.11

CR 1.46 1.36 1.36 1.35 1.38 1.43 1.53 1.63 1.71 1.81

LR 1.11 1.03 1.03 1.02 1.09 1.13 1.17 1.22 1.28 1.29

CIL

D/E 0.5 0.26 0.22 0.17 0.13 0.11 0.12 0.09 0.08 0.07

CR 1.36 1.45 1.7 1.2 1.02 0.88 0.68 0.63 0.38 0.16

LR 1.66 1.42 1.72 1.33 1.02 0.87 0.67 0.63 0.37 0.14

GAIL

D/E 0.44 0.33 0.3 0.25 0.28 0.31 0.2 0.25 0.29 0.32

CR 1.06 1.07 1.17 1.3 1.38 1.28 1.21 1.17 0.98 1.19

LR 0.94 0.93 1.09 1.21 1.29 1.17 1.15 1.12 0.91 1.07



The D/E ratio of BHEL has been at the bare minimum during the past ten years. Also, the ratio is lower than that of the other Maharatna companies during 2012. BHEL is maintaining adequate CR and LR during the past ten year period. It can further be inferred from the above table that NTPC is maintaining better CR than BHEL while Coal India and NTPC are maintaining better LR. Turnover Ratios: These ratios display the operational efficiency of a company. The rate at which a company is able to convert its stock and debtors into cash and time available for paying dues reveal the efficiency of a company. The various turnover ratios used in this study are ITR (Inventory Turnover Ratio), DTR (Debtors Turnover Ratio), FATR (Fixed Asset Turnover Ratio) and TATR (Total Asset Turnover Ratio). TABLE 3: Turnover ratios

It can be inferred from the above table that Inventory turnover ratio of BHEL is less than those of other Maharatna companies, excepting SAIL. Similarly, all the Maharatna companies are maintaining higher Debtors Turnover Ratio than BHEL. However, BHEL is lacking behind IOCL only as far as Total Asset

Turnover Ratio and Fixed Asset Turnover Ratio is concerned. Ranking Financial Performance of Maharatna Companies DEA is a linear programming methodology to measure the efficiency of multiple decision-making

SAIL

D/E 0.42 0.57 0.52 0.31 0.17 0.27 0.36 0.65 2.2 5.14

CR 1.21 1.22 2.03 1.75 1.71 1.58 1.29 1.12 0.85 0.55

LR 0.72 1.42 1.61 1.25 1.31 1.11 0.78 0.78 0.53 0.49

NTPC

D/E 0.76 0.76 0.73 0.7 0.6 0.57 0.51 0.42 0.43 0.42

CR 1.96 2.37 2.52 2.7 3.05 2.96 2.52 1.91 1.67 4.23

LR 1.8 2.14 2.26 2.42 2.73 2.63 2.15 1.65 1.38 3.85

IOCL

D/E 1.24 1 0.94 1.04 0.89 0.81 0.98 0.74 0.62 0.77

CR 0.83 0.81 0.8 0.69 1.13 0.95 0.9 1.05 1.11 0.79

LR 0.7 0.5 0.56 0.44 0.5 0.37 0.36 0.44 0.43 0.47

ONGC

D/E 0.11 0.05 0.23 0.07 0.01 0.02 0.27 0.25 0.35 0.18

CR 0.86 0.87 0.9 0.9 1.04 0.96 1.19 1.19 1.64 1.47

LR 0.86 0.81 0.93 0.8 0.92 0.89 1.01 1.03 1.38 1.34

PSU Ratio 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003

BHEL

ITR 3.75 4.09 3.82 3.71 3.88 4.24 3.68 3.41 3.95 3.62

DTR 1.78 1.74 1.81 -- 1.8 2.06 2.05 1.82 1.85 1.61

FATR 5.05 5.23 5.09 5.11 4.48 13.68 11.87 8.23 6.54 5.67

TATR 1.89 2.08 2.11 2.07 1.81 1.97 1.72 1.47 1.38 1.31

CIL

ITR 12.91 11.21 16.4 18.37 9.64 8.97 5.93 4.28 4.92 4.2

DTR 9.54 14.39 11.45 19.08 20 23.04 23.14 29.25 30.16 31.27

FATR 1.83 1.69 1.54 1.44 1.03 0.8 0.66 0.54 0.52 0.68

TATR 1.56 1.72 1.84 2.12 1.47 0.02 0.02 1.18 3.25 1.48

GAIL

ITR 26 33.69 58.81 77.64 70.73 64.5 109.39 123.88 25.66 27.86

DTR 19.02 19.43 17.37 17.9 19.01 20.53 18.24 17.63 16.71 15.41

FATR 1.41 1.32 1.08 1.23 0.98 1.06 0.99 0.94 1.5 1.64

TATR 1.21 1.16 1.09 1.28 1.09 1.08 1.21 1.27 1.25 1.36

SAIL

ITR 3.7 5.08 6.01 5.84 8.58 7.43 5.22 7.47 7.88 4.67

DTR 10.25 10.94 12.15 14.14 14.64 16.12 14.69 16.8 13.5 11.24

FATR 1.09 1.1 1.14 1.33 1.28 1.13 0.95 1 0.76 0.65

TATR 0.83 0.73 0.8 1.2 1.49 1.57 1.65 1.93 1.7 1.11

NTPC

ITR 15.88 28.43 27.47 28.77 36.08 32.76 28.04 44.48 14.39 10.38

DTR 8.74 7.43 8.86 12.67 16.99 28.79 22.6 24.47 2.92 1.59

FATR 0.74 0.73 0.68 0.69 0.7 0.66 0.6 0.54 0.69 0.75

TATR 0.5 0.48 0.45 0.45 0.46 0.44 0.41 0.4 0.37 0.43

IOCL

ITR 6.86 6.52 7.12 11.79 7.22 8.24 6.73 6.79 7.88 7.87

DTR 42.58 47.13 48.83 57.53 44.23 39.63 34.4 34.91 28.61 34.29

FATR 6.33 3.15 3.25 4.25 3.63 3.3 3.16 2.83 2.75 2.54

TATR 2.99 2.5 2.32 3.07 2.73 3 2.69 2.83 3.06 2.87

ONGC

ITR 11.48 26.69 29.28 44.1 25.96 30.29 36.71 34.02 12.75 22.87

DTR 13.71 13.95 14.27 14.71 16.31 17.78 15.54 15.7 10.12 11.11

FATR 0.86 1.19 1.14 1.34 1.32 1.23 1.24 1.16 0.88 1.17

TATR 1.01 1.04 0.76 1.19 1.25 1.25 1.01 1 0.8 0.94



units, when the production process presents a structure of multiple inputs and outputs. "DEA has been used for both production and cost data. Utilizing the selected variables, such as unit cost and output, DEA software searches for the points with the lowest unit cost for any given output, connecting those points to form the efficiency frontier. Any company not on the frontier is considered inefficient. A numerical coefficient is given to each firm, defining its relative efficiency. DEA has been used to rank the performance of Maharatna companies. For this purpose, the Net Worth, net sales and current liabilities of the seven Maharatna companies have been taken as input variables and Net Profit of the companies has been taken as output variable and DEA has been employed to rank performance of these seven companies based on the technical scores obtained by them during the ten year period. The results of DEA Analysis are displayed in table 4, according to which performance of BHEL has been at the optimum level during 2003, 2004, 2006, 2009, 2011 and 2012, while it has managed to secure the second rank during 2005 and 2008. However, the company’s

performance during 2007 and 2010 has not been satisfactory as it has secured the sixth and fourth ranks during these years. Coal India has been performing at its peak during 2003-07, 2009, 2011 and 2012, while its performance has slightly fallen during 2008 and 2010, though it has secured third and second ranks during these two years respectively. GAIL has performed very well during the years of 2008, 2009, 2011 and 2012, while its performance has been reasonable during 2005, 2006 and 2010 while 2003, 2004 and 2007 are the years in which its performance has not been at par. IOC has performed badly during all the ten years while ONGC has performed well only during the solitary year of 2007. Performance of NTPC has been good during 2003, 2004, 2006 and 2008, while its performance has been quite under par during 2005, 2007, 2009, 2010, 2011 and 2012. SAIL has performed exceptionally well during 2003, 2004, 2007 and 2010, while its performance has been quite good during 2012 and 2009, and below par during 2005, 2006, 2008 and 2011.

Table 4: MAHARATNA COMPANIES RANKED (USING LIABILITIES AND SALES AS INPUT VARIABLES

AND NET PROFIT AS OUTPUT VARIABLE)

Firm 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

BHEL 1.000 1.000 0.527 1.000 0.076 0.863 1.000 0.012 1.000 1.000

CIL 1.000 1.000 1.000 1.000 1.000 0.605 1.000 0.020 1.000 1.000

GAIL 0.673 0.673 0.345 0.865 0.428 1.000 1.000 0.014 1.000 1.000

IOCL 0.087 0.087 0.096 0.209 0.054 0.287 0.239 0.004 0.401 0.146

NTPC 0.999 0.999 0.109 0.645 0.127 0.543 0.507 0.010 0.063 0.215

ONGC 0.538 0.538 0.049 0.185 0.585 0.160 0.208 0.004 0.033 0.172

SAIL 1.000 1.000 0.137 0.488 1.000 0.301 0.429 1.000 0.053 0.797

Mean 0.757 0.757 0.323 0.627 0.467 0.537 0.626 0.152 0.456

0.619

Table 5: Efficiency Scores Of Maharatna Companies (Using Sales And Assets As Input Variables And Net Profit As Output Variable)

Firm 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

BHEL 0.053 0.035 0.139 0.395 0.003 0.522 0.822 0.007 0.560 1.000

CIL 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 0.608

GAIL 0.058 0.401 0.505 1.000 0.061 1.000 1.000 0.121 1.000 1.000

IOCL 0.075 0.469 0.106 0.207 0.013 0.095 0.108 0.023 0.013 0.061

NTPC 0.015 0.615 0.064 0.174 0.003 0.242 0.313 0.012 0.042 0.176

ONGC 0.030 0.183 0.023 0.082 0.005 0.160 0.208 0.009 0.033 0.219

SAIL 0.043 0.552 0.052 0.176 0.019 0.191 0.316 1.000 0.052 0.722

Mean 0.182 0.508 0.270 0.433 0.158 0.459 0.538 0.310 0.386 0.541

The above table displays the results of DEA conducted to rank the efficiency of various Maharatna companies using net sales, current assets and Fixed Assets as input variables and Net Profits as output variable. It can be inferred from the table that BHEL has performed exceptionally well during 2012 alone while its performance has been quite good during 2008, 2009 and 2011, while its performance has been below par during 2003, 2004, 2005, 2006, 2007 and 2010. Coal India has performed exemplarily well during 2003-11, while its performance during 2012 has slightly declined, though not to a bad extent. Performance of GAIL has been superb during 2006,

2008, 2009, 2011 and 2012, while the performance was below par during the other years. Performance of IOC and ONGC are below par for all the ten years of 2003-12 while that of NTPC has been good during 2004 alone. SAIL has performed absolutely well during 2010 while its performance has been good during 2004, 2009 and 2012 while the performance has been below par during the other years. It can be observed that Coal India has performed consistently well during the ten year period while IOC and ONGC have performed below par for the entire period.



Conclusion

It is well known that all Maharatna companies are well performing companies. But if an attempt is made to rank the performance of these seven Maharatna companies, it can be said that Coal India is the only company which has displayed a consistently good performance, followed to a certain extent by BHEL, while other PSUs are performing comparatively below par. The irony is that BHEL, which has obtained its Maharatna status on 2013 has performed better than the other Maharatna companies during the past ten year period of 2003-12. References 1. Moneycontrol (www.moneycontrol.com)

2. Nandy, Debaprosanna, (July 24, 2012). “Efficiency Study of Indian Automobile Companies Using DEA Technique: A Case Study of Select Companies”. The IUP Journal of Operations Management, Vol. X, No. 4, November 2011, pp. 39-50

3. William W. Cooper , Lawrence M. Seiford , Kaoru Tone (2006) “Data Envelopment Analysis: A Comprehensive Text with Models, Applications, References and DEA-Solver Software”Springer; 2nd edition (December 12)

4. Tofallis, C. (2001) "Combining two approaches to efficiency assessment". Journal of the Operational Research Society 52 (11), 1225–1231.

5. Sherman, H.D., and Zhu, J., Analyzing performance in service organizations, Sloan Management Review, Vol. 54, No. 4 (Summer 2013), 37-42.

http://www.moneycontrol.com/



MEASURING KNOWLEDGE MANAGEMENT INDEX OF AIRCRAFT DESIGN CENTRE

*Dr.C.Sengottuvelu, FIE (I), CPM (USA) _______________________________________________________________________________________________________ *Professor & Head –Consultancy Division, SCMS Cochin School of Business, Muttom, Cochin-683 106, Kerala, India

Abstract

Organizations are becoming aware of the fact that knowledge is a resource requiring explicit management methods if the knowledge is to be processed efficiently, sharing knowledge , communicating, forging links and synergy between each individual’s knowledge and generating new collective knowledge. Knowledge Management is the process of presenting an organization’s skills and expertise, acquiring and sharing knowledge, improving knowledge use to improve operations. Knowledge Management is the management of the organization’s individual and collective knowledge. Among other things, the role of knowledge management is to foster all kinds of innovation to improve the organization’s productivity and it’s mid and long term competitive advantage. This research paper outlines the study of knowledge management system and measuring knowledge management index of aircraft design centre of a premier aerospace company in South East Asia. The interview and structured questionnaire methods have been followed. The stratified random sampling method has been followed covering 85 executives in the design centre. The structured questionnaire consists of 27 questions with four point scale. The key dimensions of 12 parameters have been considered for measuring knowledge management index. This study also includes research objectives, review of literature, knowledge management processes, drivers, disciplines and benefits of knowledge management system. This study gives a further lead to identify the improvement areas for implementing knowledge management initiatives.

Key words: Knowledge, knowledge management system, drivers, disciplines, knowledge management index. Introduction

Much has been written in recent years about the importance of knowledge management as a basis of competitive advantage. Knowledge is seen as dynamic resource, valuable only when it is used. When organizations routinely take time and make the effort to review what they know, knowledge becomes an asset in support of purposeful action. Knowledge management is the process through which organizations generate value from their intellectual and knowledge - based assets. Most often, generating value from such assets involves sharing them among employees, departments, channel partners and even other organizations in an effort to devise best practices. It is important to note that the definition says nothing about technology, while knowledge management is often facilitated by Information and Communication Technology (ICT), technology by itself is not knowledge management. Knowledge Management (KM) is just about 35 percent technology (Amrit Tiwana, 2000), while technology is the easy part, it is the people and processes part that is hard.

Knowledge can lead to information, improvement of business processes and overall business performance. But knowledge often not explicit and many cases captured in the minds of experts, making it very hard to distribute it throughout the organization. The last decade has become more and more important for businesses. Acknowledging the importance of knowledge however is not enough; it is much more important to be capable of managing this knowledge. Being able to create, store, and transfer knowledge can result in sustainable competitive advantages. Knowledge itself however does not necessarily lead to competitive advantages, there has to be the right link between knowledge and action. As mentioned that knowledge is the ultimate competitive advantage only if understood from an action-oriented perspective (Malhotra, 2003). It is also a concept that has received much interest since the 1990’s and has led to large investments by many knowledge intensive firms.

Some processes have very critical specifications, especially as regards the permissibility of tolerances and an understanding of how to manage the production process accordingly is essential to success in designing and building such as plant. A plant which is designed to produce pigment as a food requires different considerations from a plant which produces pigment as an industrial chemical. The fundamental concept that needs to be addressed is that process. A process is a set of usually sequential value added tasks that use organizational resource to produce a product or a service. A process can be unique to a single department or can cross many departments within an organization. A process is usually repetitive in nature and is needed to make product or achieve a result. The initial perception of processes may be that they are not complicated; that they can be managed with relative ease and that arbitrary changes can be made to the process or make improvement. Research Objectives

The purpose of this research is to study the knowledge management practices and processes and its key components in design centre of an aircraft manufacturing company. The key objectives of this research are:

i. To study the knowledge management processes and practices in a manufacturing company.

ii. To develop knowledge management process frame work for the organization.

iii. To measure knowledge management index. Review of Literature Evolution of Knowledge Management

Knowledge Management has become an important strategy for improving organizational competitiveness and performance due to the fact that appropriate management and leveraging of knowledge can propel an organization to become more adaptive, Innovative, intelligent, and



sustainable. An overarching theory of knowledge management yet to emerge, perhaps because the practices associated with managing knowledge have their roots in a variety of disciplines and domains. A number of management gurus have contributed to the evolution of knowledge management, among them such notables as Peter Drucker, Paul Strassmann and Peter Senge in the United States of America. Drucker and Strassmann(2003) have stressed the growing importance of information and explicit knowledge as organizational resources, and Senge has focused on the “ Learning Organization” , a cultural dimension of managing knowledge. The phrase “knowledge management” is a serious matter even in dictionary. To provide technological base for managing knowledge, a consortium of USA, companies started the Initiative for Managing Knowledge Assets in 1989. Knowledge management related articles began appearing in journals like Sloan Management Review, Organizational Science, Harvard Business Review and others and the first books on organizational learning and knowledge management were published ( for example , The Fifth Discipline by Peter Senge and The Knowledge Value Revolution by Sakaiya). In the early 1990s, a number of consulting firms had begun in-house knowledge management programs, and several well known U.S, European and Japanese firms had instituted focused knowledge management programs. Knowledge management was introduced in the popular press in 1991, when Tom Stewart published “Brain Power” in Fortune magazine. Perhaps the most widely read work to date is Ikujiro Nonaka’s and Hirotaka Takeuchi’s The Knowledge – Creating Company: How Japanese Companies Create the Dynamics of Innovation (1995). By the mid-1990s, knowledge management initiatives were flourishing, thanks in part to the Internet. The International Knowledge Management Network (IKMN), begun in Europe in 1989, went online in 1994 and was soon joined by the US based Knowledge Management Forum and other KM- related groups and publications. The number of knowledge management conferences and seminars is growing as organizations focus on managing and leveraging explicit and tacit knowledge resources to achieve competitive advantage. In 1994 the IKMN published the results of a knowledge management survey conducted among European firms and the European Community began offering funding for KM-related projects through the ESPRIT program in 1995. Knowledge management can make a difference when it enables the application of knowledge. In the technology industry, organizations that have proposed are not the companies that invented new technology, but those that applied it. Microsoft is perhaps a good example of a company that had first relied on good marketing, then on its market share, and now on its innovative knowledge –mostly external. Even though there is no published

KM agenda within Microsoft, it has been essentially managing knowledge all along. The critical difference between Xerox and Microsoft is that Xerox created a lot of knowledge but Microsoft and Apple actually applied it to make the difference, create new markets and generate economic value. Types of Knowledge Knowledge Management Disciplines

Peter Senge, author of the fifth discipline (1990), has identified five disciplines which are essential to creating an organization which can learn. These are (Mohanram & Madhavi, 2006): Systems thinking – which considers the interrelatedness of forces and sees them as part of a common process.” System dynamics” involves looking for the complex feedback processes which can generate problematic patterns of behavior within organizations. Personal mastery – which acknowledges that we are all a significant part of the systems we work within and ‘the most significant leverage may come from changing our own orientation and self image, concepts include personal visioning, treating emotions respectfully and the leader as coach. Mental models – which involve the ability to reflect and the theories which make up our current reality. Having the ability to develop and test new mental models will be essential for future oriented learning and development. Standard vision – which involves gaining the commitment and focuses which, comes when a vision is genuinely shared, the vision should provide clues as to the organization to speak and be heard about things which matter to them. Team learning – in which collective aspiration gives team members a compelling reason to begin to learn how to learn together, learning design can incorporate a team, as well as individual development focus , following a learning activity, people can be encouraged to consider ‘ who also would benefit from this ?’ and transfer relevant and helpful learning to others. Knowledge Management System in HAL Background of the Company Hindustan Aeronautics Limited (HAL), a Navratna Central Public Sector Undertaking, is a premier Aeronautical Industry of South East Asia with 21 Production / Overhaul/ Service Divisions and 10 co-located R&D Centres spread across the Country. HAL’s spectrum of expertise encompasses hi-tech programmes involving a number of state- of- the- art technology, design, development, manufacture, repair, overhaul and upgrade of Aircraft, Helicopters, Aero-engines, Industrial & Marine Gas Turbines, Accessories, Avionics & Systems and structural components for Satellites & Launch Vehicles.

The beginning of Hindustan Aeronautics Limited (HAL) can be traced to the year 1940 when a far-sighted industrialist, the late Seth Walchand Hirchand set up a Company Hindustan Aircraft



Limited at Bangalore with the object of establishing an Aviation Industry that can manufacture assemble and overhaul Aircraft under license. Initially, Aircraft like Curtiss Hawk Vultee Bomber and Harlow Trainer were taken up for manufacture and overhaul in collaboration with Inter Continental Aircraft Company of the USA. The company has successfully developed Advanced Light Helicopter (ALH)-Dhuruv, Light Combat Aircraft (LCA), Advanced Jet Trainer (AJT), etc. Other major projects on hand are production of SU-30 MKI, IJT, design & development of Multirole Transport Aircraft (100 Seater) etc. This company became a ‘Navratna’ company in 2007. The company has been achieving all rounds in terms of Technology Absorption, Production, Sales and Profit. The performance high lights are given in Table-III. Table-III financial performance of the company during 2012-13 and 2013-14.

Particulars 2012-13

2013-14

Growth over previous year

Sales (Rs.in crore)

14,324 15,180 6.0%

Operating Profit(Rs.in crore)

1,194 1,651 38.0%

During 2013-14, HAL produced 60 aircraft

and helicopters, received Phase –II Initial Operational Clearance (IOC) for the Light Combat Aircraft and filed a record of 209 patents. HAL also contributed to two key projects of the Indian Space Research Organization (ISRO) by making structures for the Mars Orbiter Mission and crew module structure for the Human Spaceflight Programme. The Advanced Light Helicopter (ALH)- Dhruv played a critical role in rescue and relief operations taken up during the Uttarakhand floods of July last. Knowledge Management System in Aircraft Design Centre

Aircraft Design Centre of HAL full spectrum of expertise in all facets of aircraft design & development. Design activities commenced in the erstwhile Hindustan Aircraft Limited, in 1948. The aircrafts trainer aircrafts like HT-2, Marut, Pushpak, Krishak and Kiran Mk-1 , Light Combat Aircraft (LCA) and Intermediate Jet Trainer (IJT) were designed by this centre. The centre has also integrated new weapons & systems on existing military aircraft. The centre has extensive state-of- the art test facilities and full-fledged infrastructure for prototype manufacturing. ARDC is committed to the pursuit of excellence through continuous improvements and innovation. This is one of the largest design centre of HAL has continuously evolved over the years. This design centre has a full spectrum of expertise in all facets of aircraft design and development. The process of knowledge management in aircraft design centre is shown in Figure II.

Figure II Process of Knowledge Management in Aircraft Design Centre.

This design centre is extensively using CATIA, a high end CAD Package. It leads to paperless project. Through CATIA all drawings can be accessed electronically. This software has the provision to store past knowledge through parameter and formulate. We can even pre-assign values for certain parameters. For example, the Intermediate Jet Trainer was designed and developed by HAL as a replacement for ageing Kiran Aircraft. The first flight of PT1 was to be achieved at To +39 months demanding time schedule that, all knew would challenge the design and manufacturing capabilities of design centre and other HAL Divisions supporting the programme. In order to meet the stringent schedule, it was decided at the early stages that Concurrent Engineering techniques would be adopted throughout the project covering Structural Design & Analysis, Tool Design, Manufacturing and Testing. For the first time in Aircraft Design Centre, the aircraft design was based entirely on 3-D CAD modeling (UNIGRAPHICS) and the design workflow was managed through Product Data Management Software (i MAN) in a fully networked environment.

The metal cutting began in June 2001 with a major thrust on cost-effective outsourcing. 3-D digital mastering of all parts led to negligible interference problems during assembly and routing of pipes, looms, etc. Concurrent to the flow of manufacturing, all systems and components were subjected to comprehensive ground testing for validating the design prior to flight clearance. 4. Measurement of Knowledge Management Index (KMI)

Aerospace being a technology intensive industry and having long cycle time for its product completion, the way knowledge management is practiced here differs from that in IT or other industry. This centre is involved in design and development of aircrafts. Design is a scientific art and it is difficult to lay down set procedures. It involves a lot of creativity and hence no one can be taught to



think is a particular fashion. There is abundance of information, but it has to be adapted to suit different situations. In this design centre, knowledge management encompasses not only technical processes and procedures but also technology management and project management. Hence, it is all the more important to study and measure the knowledge management index of this centre based on pre-defined parameters like: i. Awareness and commitment ii. Getting Knowledge iii. Usage of Knowledge iv. Culture v. Awareness of Intellectual Property vi. Information Technology, vii. Learning viii. Knowledge sharing ix. Assessment Mechanism x. Knowledge Management Architecture xi. Divest Knowledge and xii. Recognition. The researcher aims at exploring perceptions of Officers regarding prevailing Knowledge Management Process at Aircraft Design Centre also measuring the Knowledge Management Index. A structured questionnaire was designed covering all the pre-defined parameters and distributed among the Officers in Grade I & above who had completed at least three years of service in HAL. The questionnaire is consisting of 27 questions with four point scale. For each response 1-4 points are assigned. For example, Agree- 4 points, Moderately Agree-3 points, Disagree- 2 points and Can’t Say- 1 point. Total Point Score

Knowledge Management Index (KMI) = ----------------------------- x 100

Total Point Score Possible

i. Total Point Score = Total of (a)+(b)+(c)+(d). a. No. of Agree = ………x4 = …… b. No. of Moderately Agree = ……x3=…….. c. No. of Disagree =…… x2=……… d. No.of Can’t Say =……x1=……. ii. Total Point Score Possible = 27x 4x No. of

respondents (Sample Size). For example, if the sample size is 85. Then, Total Point Score Possible works out to 9180.

5. Analysis and Interpretation of Results

i. The Knowledge Management Index (KMI) for Awareness & Commitment in design centre works out to 76.9%. This is Average as per the predefined rating scale. There is a perception that Knowledge Management (KM) should come as a policy in the company.

ii. The Knowledge Management Index (KMI) for Acquiring Knowledge works out to 84.82%. This is Very Good as per the predefined rating scale. There is a perception that Knowledge resides with experts or senior people (in tacit form), which has to be passed down the line and well documented.

iii. The Knowledge Management Index (KMI) for Using Knowledge works out to 71.02%.

This is Average as per the predefined rating scale. There is a perception that there should be a mechanism through which the ideas of officers can be implemented and company can gain only if ideas are translated into tangible benefits.

iv. The Knowledge Management Index (KMI) for Culture works out to 74.9%. This is Average as per the predefined rating scale. There is a perception that there is a need to document experiences gained from earlier projects so that these learnings can be applied on future projects.

v. The Knowledge Management Index (KMI) for Awareness of IP works out to 59.11%. This is Low as per the predefined rating scale. This is an area of concern for the company.

vi. The Knowledge Management Index (KMI) for ICT works out to 87.35%.. This is Very

Good as per the predefined rating scale. The company uses design software packages for product design and development and LAN group wise for communication across the company.

vii. The Knowledge Management Index (KMI) for Learning works out to 76.76%.. This is Average as per the predefined rating scale. There is a perception that learning of the people through seminars/ conferences, training, deputation abroad may be applied to the work place after due customization.

viii. The Knowledge Management Index (KMI) for Knowledge Sharing works out to 71.37%.. This is Average as per the predefined rating scale. The personnel are to be encouraged to participate in various forums to share their knowledge.

ix. The Knowledge Management Index (KMI) for Assessment Mechanism works out to 60.59%.. This is Average as per the predefined rating scale. There is no formal mechanism to transfer the knowledge gained through training programmes, conferences, deputation abroad to the work place.

x. The Knowledge Management Index (KMI) for KM Architecture works out to 58.82%.. This is Low as per the predefined rating scale. The maturity level of employees towards the concept of KM is inadequate.

xi. The Knowledge Management Index (KMI) for Divesting Knowledge in the Division works out to 67.94%. This is Average as per the predefined rating scale. The organization needs to outsource non-core activities so that it can sustain its expertise in its core area.

xii. The Knowledge Management Index (KMI) for Recognition works out to 61.91%.. This is Average as per the predefined rating scale. There is a perception that individuals are not visibly rewarded for knowledge sharing.

The overall KMI for this design centre works out to 73.11%. 6. Key suggestions and recommendations The key suggestions and recommendations are: i. Efforts are required to create knowledge repository for the design centre



ii. Suitable incentives scheme for knowledge sharing should be devised and should be linked to performance appraisal system iii. Knowledge sharing efforts should be translated into Knowledge Currency Units (KCU) / points and individual KCU accruals can be showcased in some scoreboards iv. Maintaining of Centralized Cataloguing of reports is mandatory for managing knowledge throughout the company v. KM should be included in the mission statement of the company vi. Creation of knowledge dictionary of Dos and Don’ts is essential to avoid mistakes and repetition vii. Superannuation of people / retirees can be engaged as trainees, advisors / consultants for managing the tacit part of knowledge ix. Efforts are to be made to protect IP of the company 7. Benefits of Knowledge Management

i. The effective deployment of KM requires resources and investment in KM systems and technologies and organizational commitments to continuous use. The main benefits include: a. Improves performance b. Fosters innovation by encouraging the free flow of ideas; encourages staff innovation and creativity. c. Accelerates advancement of mission d. Streamlines productivity and operations and reduces costs by eliminating redundant or unnecessary operations processes and procedures e. Provides a feedback loop to re-work and re-use knowledge for the benefit of the organization 8. Limitations of the Study

i. The sample size of the study proposed is only 15 %, of the population of the each officer’s grade in Design centre. The stratified random sampling is proposed. As such the views represented may not be representative of the total population. ii. Knowledge management being abstract in nature is difficult to measure quantitatively. iii. Only twelve pre-defined parameters have been considered for designing questionnaire. But, knowledge management drivers are many and complex. 9. Conclusion

Knowledge management enables rapid deployment of high quality solution, expediting the recognition, capture and distribution of innovation, through enterprise. With employee mobility on the

rise, there is no guarantee that the best brains will stay with organization. But just because people may leave, organizations can not afford to have the knowledge they brought with them organization too. The most important issue is the need to retain the knowledge of retirees. The solution to this problem is that engage them as advisors / consultants still the completion of the program. Another issue is that management of knowledge along the bandwidth of the supply chain from suppliers/ vendors to customers. Implementing knowledge management initiatives in the manufacturing industry is not easy, as the company produces something creative and innovative products and services. Another challenge in manufacturing is managing technology, people and practice. The improvement areas are motivation for knowledge sharing, extensive use of Information Technology, improving the awareness and commitment level, protection of Intellectual Property Rights etc. References 1. Davenport, T. (1997) Knowledge Management Case Study: knowledge management at Microsoft. Austin, TX: University of Texas, McCombs School of Business. Available at: http://www.bus.utexas.edu/kman/microsoft.htm. 2. Klasson, Kirk (1999). Managing Knowledge for Advantage: Content and Collaboration Technologies. The Cambridge Information Network Journal, Vol.1, No.1 PP-33-41. 3. Muhammed, NHB (2007). Knowledge Management in Manufacturing Industry. Thesis submitted for Bachelor of Manufacturing Engineering to Faculty of Manufacturing Engineering Universiti Tecknical Malaysia Melaka, Malaysia. 4. Amrit Tiwana(2000). The Knowledge Management Tool Kit (1st Indian Reprint). Noida: Prentice – Hall of India Private Limited. 5. Daven Port, & Thomas, H(1994). Saving IT’s Soul. Human Centred Information Management. Harvard Business Review. March- April, 72(2) PP-119-131. 6. Duhon & Bryan (1998). It’s All in our Heads. Inform. September,12 (8). 7. Nonaka, I & Takeuchi, H (1995). The Knowledge Creating Company: How Japanese Companies Create the Dynamics of Innovation? New York: Oxford University Press. 8. Senge Peter, M (1990). The fifth Discipline: the Art & Practice of the Learning Organization. New York: Doubleday Currency. 9. Mohanram, A.S & Madhavi, S (2006). Creating A Learning Organization through Knowledge Revolution –Role of HR. Business Mandate. Madras: Madras Management Association, Vol. XXXIV No.4 , January-February 2006, PP- 40-44. 10. Archana Shukla & Srinivasan, R (2002). Designing Knowledge Management Architecture: How to Implement Successful Knowledge Management Programs. Delhi ; Response Books. 11. Sultan Kermally (2002). Effective Knowledge Management- A Best Practice Blue Print. Singapore: John Wiley & Sons Limited.

http://www.bus.utexas.edu/kman/microsoft.htm



EMPLOYEE WELFARE IN THIRUBUNAVAI INDUSTRIAL AREA *M. Uma

**G. Kamini

_______________________________________________________________________________________________________ *Asst. Professor, Department of Management Studies, Achariya School of Business & Technology, Puducherry. ** Department of Management Studies, Achariya School of Business & Technology, Puducherry, India.

Abstract Welfare refers to conditions of living of an individual or group in a desirable and happy state of relationships with whom economical and social, ecological welfare means environment friendly existence, ecological balance pollution existence and proper sanitation. The [International Labour Organization] ILO at its Asian Regional Conference, defined Employee welfare as a term which is understood to include such services, facilities and amenities as may be established in or in the vicinity of undertakings to enable the persons employed in them to perform their work in healthy, congenial surroundings and to provide them with amenities conducive to good health and high morale.

Introduction

Welfare includes anything that is done for the comfort and improvement of employees and is provided over and above the wages. Welfare helps in keeping the morale and motivation of the employees high so as to retain the employees for longer duration. The welfare measures need not be in monetary terms only but in any kind/forms. Employee welfare includes monitoring of working conditions, creation of industrial harmony through infrastructure for health, industrial relations and insurance against disease, accident and unemployment for the workers and their families.

Employee welfare entails all those activities of employer which are directed towards providing the employees with certain facilities and services in addition to wages or salaries. Employee welfare in general, these are the benefits that an employee must receive from his/her company, like allowance housing for those companies who provides, transportation, medical, insurances, food and some other way where the employee has right to demand.

Employee welfare is defined “the efforts to make life worth living for workmen.” According to Arthur James Todd “employee welfare means anything done for the comfort and improvement, intellectual or social, of the employees over and above the wages paid which is not a necessity of the industry.” Review of Literature

Srinivas kt (2013)1: The present study is made an attempt to identify welfare facilities and employee’s satisfaction level about welfare facilities adopted at Bosch limited, Bangalore. To achieve the aforesaid objective data is gathered from 100 employees of the organization with random sampling technique. It is found that most of the respondents are aware about the legislative and non - legislative employee welfare facilities provided at the Company, welfare facilities like medical, canteen, working environment, safety measures etc., are provided by the company. And most of the employees are satisfied with the welfare facilities adopted by the company towards the employee’s welfare.

Reshma.s, dr.m.j.basavaraj (2013)2: In the economic development of a country, minerals play a significant role. Minerals constitutethe backbone of the industrial economy of the country and the prosperity of any country isdirectly related to its minerals wealth and their judicious utilization. Mining industry is playing asignificant role in the overall economic development of India. Employee or labour welfare is acomprehensive term including various services, benefits and facilities offered to employees of the organization. Employee welfare activities are those, which include proper working conditions provided to the workers by the employer on a voluntary basis. A study on employee welfare measures in mining industry throws light on statutory welfare measures followed in Donimalai Iron Ore Mine, Bellary District. This study enlightens the concept of welfare measures; it also highlights the employee’s perception regarding the various statutory welfare measures provided by the organization. The last part offers suitable suggestions to strengthen the statutory welfare measures in a sample unit. P. Swapna , n. Samuyelu(2011)3:India being a welfare state wedded to the philosophy of socialistic pattern of society, it is imperative to have acontended workforce, enjoying a reasonable standard of living with adequate facilities and provisions for the well being of them. The absence of any comprehensive study in the area of welfare and social protection of workers in the study area of Andhra Pradesh and the growing employment opportunities thrown by the fast expanding private corporations in this region have encouraged the present study by me. It is evident for the literature that many efforts have been made to study to the various aspects of welfare and social security of labour in different wings of Singareni Collieries Company limited. The present study tries to make a comparison on the provisions and implementation of the overall benefits of the workers in different wings of the same company and by giving the overall welfare activities of the company. This type of research has not been done in this area of study. Here it focuses on the social security regarding welfare of employees rather than profit of the organization.



Randy albelda (2001)4:There are large research, policy, and economic gaps between the ways US researchers and policy makers address the work/family bind amongst middle class professionals and poor lone mothers. This is clearly seen in US welfare reform, an important piece of work/family legislation in the 1990s. The new rules make the work/family binds worse for low-income, poor mothers and do not alleviate poverty. With its clear expectation that poor mothers be employed, the legislation opens up new avenues to revamp low-wage work for breadwinners and to socialize the costs of caring for family. Closing the literature gap may help to close the policy gap, which, in turn, would promote more income equality.

Keerthi sriya dr. Panatula murali

krishna(2014)5:This research paper focus on exploring the status of awareness & satisfactory levels of various provisions of Indian Factories act, 1948 in the target organisation ‘Penna Cement Industries Limited’ located at Tadipatri in Anantapur district of Andhra Pradesh. The paper initially describes the background of Labour Legislation in India and its classification.

The need, importance and objectives of the research is than stated followed by the Literature review that briefs the important provisions of the Factories Act pertaining to Labour and the Industry & Company profile where the research is conducted.

The research targets to know the awareness and satisfactory levels of the provisions of Factories act among the lower class of employees by taking a sample of 50 employees by Random Sampling method from the total population of lower class of employees in the organisation. The primary data collected through the Interviewing and Questionnaires. The questionnaire was made as simple as possible and where required it was read out & explained in the local language to many of the employees by the researcher because the majority of the sample population were not well educated. The secondary data was collected through various company publications like Annual Reports, Files and documents related to labour welfare and books, journals, research articles related to Factories Act, 1948. The results indicate that the overall awareness levels of the various provisions of the Factories Act, 1948 is not very high but the satisfactory levels with the facilities provided by the organisation seems to be adequate among the sample employees. In simple words, though the sample employees are not very much aware of the facilities they are to be provided by the Factories Act, 1984, they are being provided with adequate health. Safety & welfare measured by the organisation which is keeping the employees satisfied.

Need for the study

The management cannot do all the things by itself. It has to get things done through people. So management is the art of getting things by others.

If the employees are not properly motivated the management will not be able to accomplish the desired result. There for human resources should be managed.

Employee welfare is a facility services to build and maintain the morale of the workers to achieve the objectives of the organization.

The study of Employee welfare and workers opinion about the welfare measures provided by the company will help the management in efficient use of its human resource.

Objectives of the study To identify the various welfare measure in the

organization. To analyse the employee’s view on the provided

welfare measures.

To find out the ways to improve the welfare measures.

To adopt suitable measures for the improvement of employee performance.

To give suggestion and recommendation for the promotion of welfare measure.

To provide better life and health to the workers. Research Methodology Research- meaning:

Research is an art of scientific investigation. According to Redman and Mary defines research as a “systematic efforts to gain Knowledge”.

Research methodology is way to systematically solve the research problem. It is a plan of action for a research project and explains in detail how data are collected and analyzed. This research study is a descriptive research study.

Research Design A research design is the arrangements of conditions for collection and analysis of data in manner that aims to combine relevance in the economy in procedure.

Type of Research Descriptive Research

Sampling Method Convenience Sampling

Sampling Unit Employees in Thirubuvanai Industrial Area

Period of study 45 days

Sample Size 150

Research Method Survey Method

Research Instrument Questionnaire

Statistical Tools used Percentage analysis, chi-square

Source Primary data



Hypothesis of the Study

H0: There is no significance relationship with employees are comfort with shift system.

Classification on the basis of

comfortable shift system TABLE-1

Source: Primary data Interpretation: The table 1 shows are you comfortable wise shift system 73.0% of the respondent are says YES, 27.0% of the respondent are says NO. H0: There is no significance relationship with employees are comfort with shift system. H1: There is significance relationship with employees are comfort with shift system.

Chi-Square test

Value Df

ASYMP. Sig

(2-Sided)

Pearson chi-square

5.415 1 0.20

No. of. valid cases

150

The table 1 shows the value of chi-square of the employee welfare the Pearson chi-square value 5.4155 in the sign level of 0.20 the degree of freedom 1 in the valid of cases 150.since the Alternative hypothesis H1

is accepted. Finding

The table shows the classification on the base of are you comfortable with shift system 73.0% of the respondent are says YES, 27.0% of the respondent are says NO. The table 12 shows the value of chi-square of the employee welfare the Pearson chi-square value 5.4155 in the sign level of 0.20 the degree of freedom 1 in the valid of cases 150.since the Alternative hypothesis H1 is accepted. Conclusion The welfare is more important for every employee, without welfare measure employee cannot work effectively in the organization. Employee

welfare covers an ample field and connotes a state of well being, happiness, satisfaction, protection and enlargement of human resources and also helps to motivation of worker. Any organization success and growth depends on employees. The company may have rich resources of capital, material, infrastructure, machines and technology but if the quality of manpower is not good, the organization cannot succeed. Employee welfare plays a vital role in every organization. A quality and productivity of manpower depends on the welfare measures provided by the organization.

The fundamental propose of Employee welfare is to enrich the life of employees and to remain them joyful and conducted that helps to development of organization. As per the study it is observe that Thirubuvanai industrial estate is provided various facilities to the employees and also follow the rules and regulation of state and Indian Government. The management required to provide good facilities to all workers in such way that workers become satisfied about employee welfare facilities. It increases productivity as well as quality and quantity. Therefore there is necessity of making some provision for improving the welfare facility through that employees will become happy, employees performance level become increase. It leads to improve favourable effects of profitability and products of the organization. At last it can be conclude that the employee welfare facilities provided by the company to employees are satisfied and it is commendable, but still of scope is there for further improvement, so that efficiency, effectiveness and productivity can be enhanced to accomplish the organizational goals. References 1.) Srinivas KT., A Study on Employees Welfare Facilities

Adopted at Bosch Limited, Bangalore. Research Journal of Management Sciences, Vol. 2(12), 7-11, December (2013).

2.) Reshma.S; Dr. M.J.Basavaraj., Employee welfare measures in mining industry – a study with reference to statutory welfare measures In NMDC, donimalai iron ore mine, bellary district. EXCEL International Journal of Multidisciplinary Management Studies .Vol.3 (7), July (2013).

3.) 1P. Swapna* and 2N. Samuyelu., Social Security Regarding Employee or Labour Welfare. VSRD International journal of business & management Research. VSRD-IJBMR, Vol. 1 (7), 2011, 397-407.

4.) Randy albelda., welfare-to-work, farewell to families? Us welfare reform and work/family debates. feminist economics 7(1), 2001, 119–135.

5.) Keerthi sriya a1, dr. Panatula murali krishna2., status of provisions of the factories act, 1948 - a study at penna cement industries limited (pcil), tadipatri. Iosr journal of business and management (iosr-jbm) e-issn: 2278-487x, p-issn: 2319-7668. Volume 16, issue 3. Ver. I (mar. 2014), pp 14-26 www.iosrjournals.org www.iosrjournals.org 14 | page.

Are you comfortable with shift system?

Total Yes No

Comfortable with

shift system

Yes 73 27 100

73.0% 27.0% 100.0%

No 27 23 50

54.0% 46.0% 100.0%

Total 100 50 150

66.7% 33.3% 100.0%



ROLE OF SELF HELP GROUPS (SHGS) IN WOMEN EMPOWERMENT WITH REFERENCE TO PARAMAKUDI TALUK

*M.Arumugam ** Dr. M.Meganathan

***R.Kuzhandaivel _______________________________________________________________________________________________________ *Lecturer, Department of Commerce, Government Polytechnic College, Udhagamandalam. ** Assistant Professor, Department of Commerce, Alagappa University Arts & Science College, Paramakudi. *** Manager Vijaya Bank, Thiruvendipuram Branch, Cuddalore.

Abstract Women development activities must be given importance to eradicate poverty, increase the employment opportunity and for better

standard of living. SHG mainly concerned with enlightenment of the women in the society through social, economical and managerial aspects. It leads to provide and bring the empowerment to the women. The main objective of the study is to examine the role of Self Help Groups (SHGs) in Promoting Women’s Empowerment in the study area of Paramakudi Taluk. The study required primary data for its analysis. The primary data were collected through Interview Schedule Method from members of Self Help Groups.

This study is to cover the total Paramakudi Taluk and the study area is having 531 SHGs, out of which 20 SHGs were randomly selected. Than from each group 5 members were selected with the sample size of 100 members based on convenience sampling method. To present the collected data very meaningful it is scrutinized, verified and analyzed with the help of simple percentage and simple ranking method and computed for interpretation. The overall result showed that there is a significant improvement of socio-economic factors such as access to credit sources, increased saving habits, increased additional income, increased self-confidence, Members’ children education and increased decision-making skill of members of SHG. Managerial empowerment result shows that increasing of planning skill, organizing skill, financial management skill and communication skills.

Introduction

India has a population of 1027.01 million with 742 million living in the rural areas. While the World Bank estimates that about 42% of India’s population live under the global poverty line calculated at $ 1.25 per day, estimates prepared by the Planning Commission indicate that 27.5% of the country’s populace are poor. Women constitute around fifty percent of the total human resources in our economy. Yet women are the more poor and under privileged than men as they are subject to many social and economic constraints. The situation is more severe in the rural and backward areas in India.

Women development activities must be

given importance to eradicate poverty, increase the employment opportunity and for better standard of living. SHG mainly concerned with enlightenment of the women in the society through social, economical and managerial aspects. It leads to provide and bring the empowerment to the women. SHG Prgramme is not only mobilize the micro finance and provide micro credit services and micro insurance to the needed members but also it provides self employment training, financial assistance, awareness programme, health camp, official meet and promotes the leadership qualities and confident in life to its members. Review of Literature

The purpose of literature review is to convey the readers about the knowledge and ideas that have been established on the study. Ramachandran.S,

Sasikumar.S & Kanagaraj.E(2008). This study is an attempt to assess the impact of SHGs on empowerment of women in Thirunelveli district of Tamilnadu. The primary data were mainly used for this research and data were collected through

interview schedule method with the sample size of 100 members on basis of simple random sampling method. The major finding of the study was, the women’s share in savings of households’ debt was borne by men in the micro credit stage and it was just more than half in the micro enterprise stage. On the other hand the women’s share in the household debt was worked to lesser number in the first stage and it was majority in the micro enterprise stage. Finally, it was also showed that the women members share the total household asset in the micro credit stage while it was fewer in the micro enterprise stage and the economic power remains with them in the both stages. The study was concluded that the SHGs had not contributed much to improve the women’s share in income and assets but they helped increase the share of women in household savings and debt.

Munian.A (2010) the present study is to analyzed the economic empowerment of women through self help group. The primary data were collected through structured questionnaire and multi-stage simple random sampling method was used for selecting the SHGs and members. Thus in a total of 6 SHGs, a sample size of 78 members have been selected from 3 wards in the study area. The major result of the study is that more than half of the respondents joined the SHGs because of influence by existing group members and also more than 3/4th of them availed loan for purpose household expenditure whereas remaining of them availed loan for starting small business like petty shop, grocery store, vegetables selling, hotel etc. The study also revealed that in the chi-square result there is a significant difference between in the change of household’s income and loans borrowed from banks. The study was concluded that there is tremendous improvement in the performance of members after joined the self-help group.



Shambharkar, Y.B, Jadhav, U.V & Mankar,

D.M. (2012) the study evaluated the impact of Self Help Groups on Empowerment of women members in Vidarbha region of Maharasthtra. The study was carried out during 2010-2011. The major finding from the study results revealed that the impact of four dimensions i.e. cultural (03.57%), social (00.71%), economic (02.14%) and political (12.14%) could not be noticed among the women members of SHG. The study concluded that more than half of the respondents (61.43%) were medium empowered category, followed by high empowered and least number of respondents were in low empowered category after joining the groups. Statement of the Problem

Large number of studies indicate that self help group programmes often in the form of credit or micro credit schemes and savings have succeeded in changing the lives of poor rural women by making way for enhanced income, social respect and increased managerial skills. This is evident from the mushrooming growth of self- help groups in Paramakudi. This study is undertaken to analyse the role of Self Help Groups (SHGs) in Promoting Women’s Empowerment in the study area of Paramakudi Taluk, Ramanathapuram District.

Objective of the Study

The broad objective of the study is to examine the role of Self Help Groups (SHGs) in Promoting Women’s Empowerment in the study area of Paramakudi Taluk. 1. To study the reasons for joining the Self Help

Groups in Paramakudi Taluk. 2. To assess the role of Self Help Groups in Socio-

Economic Empowerment of Women. 3. To evaluate the contribution of SHGs in

Managerial Empowerment of Women. Methodology and Sampling

The study required primary data for its analysis. The primary data were collected through Interview Schedule Method from members of Self Help Groups and the secondary data were collected from DRDA-Ramanathapuram, Journals, Magazines, Mahilir Thittam Reports, etc.

Paramakudi Taluk consists of many villages namely Devendra Nagar, Emaneswaram, Kamala Nehru Nagar, Kattu Paramakudi, Edaiyathur, Parthibanur, S.Kavanoor etc. This study is to cover the total Paramakudi Taluk and the study area is having 531 SHGs out of which 20 SHGs were randomly selected. Than from each group 5 members were selected with the sample size of 100 members based on convenience sampling method.

To present the collected data very meaningful it is scrutinized, verified and analysed with the help of simple percentage and simple ranking method and computed for interpretation. Analysis and Interpretation

Age of respondents profile result is found that the members in the age group of 26-35 years

(50.8%) and 36-45 years 24.8%) are actively participating in SHG activities.

Educational background of the members

results show that majority of the respondents do not have formal education( 41.2%), 21 per cent of them are up to Primary level, 23.6 per cent upto Middle class, 9.2 per cent upto High School, 4.6 per cent Degree level and only 0.4 per cent of them having educational background of professional qualification.

Marital status result reveals that majority of them (90 per cent) are married, 0.8 per cent are single, 6.6 per cent are widows and 2.6 per cent of them are divorced women.

Type of family output shows that most of them (95 percent) are living as nuclear family with family size of 3-6 members.

Occupation undertaken result shows that

around 58.2 per cent of them are engaged in agriculture and allied activities, 13.6 per cent are in self employed activities like cow rearing, cattle rearing, hen rearing, goat rearing, petty shops, grocery stores, snacks shops, tea shops, tailoring shops, etc., and 10.6 per cent of women members are home-maker because of misunderstanding between the husband and children.

Income level result reveals that 49.2 per cent

of the members earn below Rs.5,000 per year, 36.4 per cent of them earn between Rs. 5,001-10,000 per annum, 9.6 per cent of the members earn between Rs.10,001-20,000 per year, 4.0 per cent of them earn between Rs.20,001-25,000 per year and only 0.8 per cent of them earn above Rs.25,001 per annum. Reason for Joining the Self Help Group

For carrying out this analysis, the members of the groups were requested to give their multiple responses for joining the group. To analyze the reasons for joining the group by the members the simple ranking method is used.

Table No.1 Reason for Joining the Self Help Group

Reasons

Frequency Ranks

Unemployment 80 VI

Poverty situation 84 V

Self-Interest 70 IX

Influenced by peer Members 88 III

Easy to avail financial Assistance

95 I

Starting the Income Generating Activities

76 VIII

Forced by NGOs/ Officials 69 X

Additional Income 84 V

Participation of Awareness Programs

56 XI

External Relationship 85 IV

Training facilities 78 VII

Subsidy facilities 90 II



Source: Primary Data, Note: Multiple responses To analyse the reasons for joining the Self Help Group result reveals that the major reason to join the group is “To Avail Financial Assistance, followed by” Subsidy Facilities”, “Influence by Peer Members”, “External Relationship”, “Additional Income”, “ Poverty Situation”, “Forced by NGOs/ Officials”, and the least reasons are “participation in Awareness Programs”, and Starting the Income Generating Activities”,. Social empowerment through SHG

To analyse the Social Empowerment through SHG the following factors are considered namely Respect from family and society, Easy Mobility, Self-Confidence, Communication Skills, Decision-making Skill, etc. The Social Empowerment of members of SHG is analyzed with use of simple ranking method.

The social economic empowerment result reveals that the major social empowerment factors namely Increased Self-confidence, followed by Increased members Children Education, Enriched the Decision-making Skill, Improved Accessing of Health Facility, Improved Co-operation from Peer Members etc. and the least social empowered factors are Lack of Interaction with Officials, Lack of Social Status, Lack of Entrepreneurs Qualities, Lack of Participation in Social and Public Programs etc.

Table No.2 Social empowerment through SHG

Social Variables

Frequency Ranks

Respect from the Family 88 VIII

Recognition from the Society 86 X

Easy Mobility 87 IX

Self-awareness 93 IV

Self-confidence 99 I

Life Style 90 VI

Freedom 88 VIII

Leadership Quality 87 IX

Decision-making Ability 92 V

Social Status 80 XIII

Communication Skills 93 IV

Problem Solving Capacity 90 VI

Positive Attitude 83 XII

Participation of Social Programmes 70 XVII

Participation in Public Programmes 65 XVII

Participation of Trainings Programs 84 XI

Unity 89 VII

Co-operation from Peers 90 VI

Enrichment of Knowledge 87 IX

Domestic Violence 75 XV

Bargaining and Negotiating Power 72 XVI

External Relationship 78 XIV

Entrepreneurs Quality 70 XVII

Handling of Finance 95 III

Budget Estimation Capacity 88 VIII

Assessing of Health facilities 90 VI

Children Education 98 II

Interaction with Officials 60 XIX

Source: Primary Data Economic Empowerment through SHG

To assess the Economic Empowerment through SHG the following factors are considered

namely Sources of Income, Saving Habits, Income Generation Activities, and Assets Creation etc. The Economic Empowerment of members of SHG is analyzed with use of simple ranking method.

While analyzing the role of Self Help Groups on the economical empowerment of the members of SHG in the study area, “Increased Accessing of Credit Sources” is ranked first, followed by “contribution to the Increased Saving Habits of Members” is ranked second, Increased Sources of Income of the SHG members is ranked third, Increased Employment Generations is occupied fourth rank, Increased Household expenditure and Non-Household Expenditure is ranked fifth and sixth respectively, Increased Availing of Subsidy is ranked seventh, then Improved Budgeting of Business is ranked eighth, and last rank is occupied by Taking of Insurance.

Economic Empowerment through SHG

Economic variables

Frequency Ranks

Increased sources of Income 90 III

Increased Saving Habits 96 II

Increased Employment Generation

88 IV

Increased Accessing of Credit Sources

98 I

Increased Creation of Assets 80 IX

Identifying of Investment Opportunity

77 X

Increased Household Expenditure

85 V

Increased Non-household Expenditure

84 VI

Improved Budgeting of Business 82 VIII

Increased Availing of Subsidy 83 VII

Taking of Insurance 65 XI

Source: Primary Data From the analysis it is found that the

members of the SHGs are not taking Micro-insurance Schemes due to lack of awareness about Insurance Schemes. Therefore, the government officials have to conduct Insurance awareness programs in regular intervals. Managerial Empowerment through SHG

A Self Help Group is a community based organization and it needs managerial skills to manage the family and business. Therefore, the role of SHG in developing managerial empowerment is analyzed with the following variables. While analyzing the role of Self Help Groups on the managerial empowerment of the members of SHG in the study area, Communication Skills is ranked first, followed by contribution to the Decision Making Skill is ranked second, Planning Skill of the SHG members is ranked third, Leadership Skill is occupied fourth rank, Organising Skill is ranked fifth and Financial Management Skill is ranked sixth, Co-ordination Skill is ranked seventh, then Entrepreneurs Skill is ranked eighth, Technical Skill is ranked ninth and last rank is occupied by Marketing Skill.



Table No.4 Managerial Empowerment through SHG

Managerial Factors Frequency Ranks

Planning skill 86 III

Organising ability 80 V

Coordination skill 65 VII

Technical skill 60 IX

Marketing skill 48 X

Entrepreneurial skill 62 VIII

Communication skills 98 I

Financial management skill 79 VI

Decision making skill 95 II

Leadership skill 84 IV

Source: Primary Data From the analysis it is found that the

members of the SHG are not having adequate Marketing Skill to market their products and services in the competitive business situations. Therefore, the NGO officials may arrange sufficient training programs to the members to up-date their Managerial Skill specifically the marketing skill. Summary and Conclusion Majority of the members are in the age group of

26-35 years, therefore the middle age groups are actively participating and representing in the Micro Finance Programme.

Almost all the members who are in the group are married.

Majority of the respondents do not have formal education

More than half of the members are involving in agriculture and allied activities because they are always depending upon the cultivation of agriculture.

Majority of the members are earning below Rs.5, 000 per month.

Most of them (95 percent) are living as nuclear family with family size of 3-6 members.

Major reason to join the group is To Avail Financial Assistance, followed by Subsidy Facilities and least reason is participation of awareness programs.

Economic empowerment of the members of SHG result shows that Increased Accessing of Credit Sources, Increased Saving Habits of Members, and the major social empowerment factors namely Increased Self-confidence, followed by increased members` Children Education, Enriched the Decision-making Skill, etc. A woman gets empowered through the Self Help groups located in rural, urban and semi-urban areas. Central and State Governments are

providing maximum opportunities for the women to improve their socio-economic status to equal male. Women can improve their skills and innovate new thing by not depending anybody. SHG gives them confidence to live on their way and to make wise decision.

Today the SHG women are willing to take up the new income generating activities or self-employment more than their male counterpart. The above overall results showed that there is a significant improvement of socio-economic factors such as access to credit sources, increased saving habits, increased additional income, increased self-confidence and Members children education, and increased decision-making skill of members of SHG. Managerial empowerment result shows that increasing of planning skill, organizing skill, financial management skill and communication skills.

Reference 1. Pathak,D.C., & Pant, S.K. (2008). Microfinance: A case

study of Janupur District, Micro Finance and Poverty Eradication (pp.469-491), New century publication, New Delhi, India.

2. Munian, A. (2010). Women Empowerment through SHGs: A Case Study in Cheyyyar-Tamil Nadu, Conference Volume (pp.240-259), Abhijeet Publications, Delhi.

3. Shambharkar.Y.B, Jadhav.U.V & Mankar.D.M, Impact of Self Help Groups on Empowerment of women Members, Indian Research Journal of Extension Education, special Issue, Vol.II, 2012, pp. 188-192.

4. Ramakrishna and Krishna Murthy, A Role of SHGs for Empowering Rural poor in Vishakapatanam, Discovery Publishing House, New Delhi,2003, pp.11-16.

5. Boraian. M.P, Empowerment of Rural Women: Towards Social Reversal of Gender Relations, Indian Journal of Social Work, Vol.64 (4), 2003, pp.521-532.

6. Sunder Raj, D., SHGs and Women’s empowerment, Social Welfare, Vol. 50, No. 10, January, 2004, pp. 39-41.

7. Thalavai Pillai & Nadarajan, Impact of Micro Finance- An

Empirical Study on the attitude of SHG Leaders in Kaniyakumari District, Tamil Nadu, International Journal of Enterprise and Innovation Management Studies, Vol.1(3), 2011,pp.89-95.

8. Manomani.I.K & Prabakaran.V.P, Women Empowerment

through SHGs in Kovilangulam Panchyat, Usilampatti, Madurai District- A case study, Asian Journal of Management Research,Vol.2(1), 2011, pp.228-236.

9. Tamil Nadu Corporation for development of women limited

at Ramanathapuram District.

10. Mahalir Thittam progress report, 2010-11, published by Tamil Nadu Corporation for Development of Women Ltd, Ministry of Social Welfare, Govt. of Tamil Nadu.



SERVICE QUALITY *E. Hymavathi

_______________________________________________________________________________________________________

*Assistant Professor, TKR Institute of Management & Science

Abstract Service quality has become a main area of interest to many service organizations worldwide due to its significant effect on customer satisfaction, cost reduction & profitability increase. By providing quality service, organizations can sustain customer’s confidence and competitive advantages over their competitors. This study examined the aspects of service quality in business, health care, banks that influence the satisfaction of customers and their intention to revisit. The purpose of this paper is to find out the relationship between management expectations and customer expectations. The study that has been carried out is conclusive in nature; it describes the expectations, attitudes, opinions, views and level of satisfaction. The study identified service quality needs in Health care & banking sectors. For the data collection questionnaire was used as research instrument. Primary data has been collected by administering a Questionnaire through direct contact method and secondary data has been collected from the websites, books, and magazines. The study undergone at one of the local area at Hyderabad. The outcomes of this study concluded that quality service is the amalgamation of different elements which are intricately linked with each other. The findings of this study suggested that impact of service quality affects the customer satisfaction that results in success of business, health care, banks and it is an irrefutable fact. Keywords: Service Quality, customer satisfaction, business, health care, banking sectors.

Introduction:

A service is a non-material equivalent of good. A service provision is an economic activity that does not result in ownership but implying an exchange of value between seller and buyer in the market place, and this is what differentiates it from providing physical goods. it is claimed to be a process that creates benefits by facilitating either a change in customers, a change in their physical possessions, or a change in their intangible assets. Service quality is a comparison of expectations with performance. A business with high service quality will meet customer needs and improves economic competitiveness. This aim may be achieved by Understanding and improving operational

processes; Identifying problems quickly and systematically; Establishing valid and reliable service

performance measures; Measuring customer satisfaction and other

performance outcomes. Objectives of the study: To identify the service quality needs in Health

care and Banking sectors. To know the customer expectations of service

quality in terms of five dimensions. To know the relation between management

expectations and customer expectations.

Limitations:

The study undergone only at one of the local area at Hyderabad.

The study took place only in Health care and Banking sectors.

There might be errors in the expression of opinion of respondents due to their personal bias

Research methodology: The study that has been carried out is conclusive in nature; it describes the expectations, attitudes, opinions, views and level of satisfaction. For the collection of various data requirements, questionnaire was used as research instrument. Data collection: For this purpose, direct interview was conducted with the help of structured instrument, i.e; questionnaire. Some useful information was obtained through personal interaction with the respondents. Primary data has been collected by administering a Questionnaire through direct contact method and secondary data has been collected from the websites, books, and magazines. The study undergone at one of the local area at Hyderabad. For this the sample size is 60 individuals are randomly selected from different Banking sectors and different Health care centers. Statistical tools: The data collected in the form of Questionnaire was tabulated and analyszed using basic statistical method percentages and t-Test. Service quality standards: Customer defined service standards can be distinguished in to two major categories. They are: Hard standards: hard standards often involve counts or timed actions of how many, how accurately, how quickly. Soft standards: soft standards are areas that are more difficult to measure objectively and agree a standard. They are developed in response to customers.

Framwork for improving service quality:



Dimensions of service quality:

Every company needs to know about the service quality dimensions to get loyal customers whish add to repeating purchases and of cause increasing their maximum revenue. The service is not just a little part of the marketing mix, but it is actually a very important part of both the 4P’s and 7P’s. Each of these service quality dimensions makes an extra addition to the level and quality of service which the company offers their customers. It also makes the service far more unique and satisfying. There are five dimensions of service quality:

s.no. Dimensions of service quality

Refers to

1 Tangible services

The physical surroundings and facilities, equipment, personnel and the way of communication.

2 Reliability

How the company are performing and completing

their promised service, quality and accuracy within the given set requirements between the company and the customer.

3 Responsiveness

The willingness of the company to help its customers in providing them with a good, quality and fast service.

4 Assurance

The Company’s employees. Are the employees are able to gain the trust and confidence of the customers?

5 Empathy

How the company cares and gives individualized attention to their customers, to make the customers feeling extra valued and special.

How to improve service quality at your business? 1. Learn to listen to your customer first

ANALYZING INFORMATION

ABOUT THE PROBLEM

ESTABLISHING VISION

AND MISSION

PROBLEM

DEVELOPING A LOGICAL

MODEL

PROBLEM

DEVELOPING AND USING

STRATEGIC PLANS

PROBLEM

MAKING OUTCOMES

MATTER

PROBLEM

DOCUMENTING PROGRESS

AND USING FEEDBACK

PROBLEM

ASSURING TECHNICAL

ASSISTANCE

PROBLEM

DEFINING ORGANIZATIONAL

STRUCTURE AND OPERATING

MECHANISMS

IMPLEMENTING EFFECTIVE

INTERVENTIONS

PROBLEM

DEVELOPING LEADERSHIPS

SUSTAINING THE WORK

PROBLEM

ARRANGING FOR

COMMUNITY MOBILIZATION



2. Look at all complaints about your service as an opportunity to improve

3. Establish an environment where great service is recognized and rewarded and poor service is challenged and rectified.

4. Have weekly fun staff meeting where good service elements are discussed.

5. Ensure that your staff feels they are an important part of your success.

6. Show respect for every person at every level in your company.

7. Do things regularly to improve the workplace. 8. Give your staff a reason to come to work with a

big smile on their face and great attitude. How to improve service quality in healthcare?

Healthcare organizations are required to focus on quality in different areas such as: 1. Quality of Administration and management:

this quality aspect includes operations such as staffing, purchasing, supervision, appointments, admissions, discharges, emergency rooms, record keeping, prescriptions, pharmacy & medicines, laundry related performance, house-keeping sanitation, operation Theaters, laboratory work.

2. Quality of Doctor’s service: this is reflected by the effectiveness with which the medical problem is eliminated or bought under control. The different aspects of Doctor’s services include examination, laboratory tests, accuracy of diagnosis, effectiveness of the medicines prescribed, effectiveness of the survey performed and side-effects of medicines & treatment.

3. Quality of Hospital care: from the time a patient is admitted until he is discharged includes emergency room, ambulance service, admissions, patient control, patient room, patient’s surroundings, food, medicines, monitoring & factors such as personal attention, cleanliness, security, central telephone control, visitor control, discharge control, insurance & billing, nursing performance, Doctor’s care, mail control, delivery control, house-keeping and operating room control.

How to improvve service quality in banking sectors? Banks are required to focus on Quality in different areas such as: 1. Leadership in Banking: Branch manager is the

leader and should be able to, Motivate staff for quality services; Encourage innovation; Promote group decision making; Supervise the satisfaction level of both

internal and external customers. 2. Account opening department: the officer in-

charge of account opening department is responsible of opening new accounts and should be able to, Serve the customers promptly; Make the account opening process the

pleasant experience;

Exercise relationship marketing; Effective record keeping; Error free processing.

3. Remittances department: the officer in-charge of remittances department is responsible for processing customer’s requests for funds transfer and should be able to, Maintain efficient documentation; Speedy and error free processing; Serve customers with smile; Reply promptly to corresponding branches

and head office; Adhere to laid-down procedures of central

bank. 4. Cash department: the officer in-charge of cash

department is responsible for cash receipts and payments and should be able to, Serve customers with smiling face and due

courtesy; Process cash receipts and withdrawals

accurately and efficiently; Make additional arrangements on cash tills

in case of long queue; Dispose-off excess cash on hand as per the

laid-down policy of the bank converting the non-performing asset into a profit generating one.

5. Term deposits: the officer in-charge of term deposits is responsible for the issuance aand encashment of term deposits and should be able to, Process the applications timely; Exercise due vigilance while disbursing

profit on deposits; Work on the processes and procedures to

lessen the time required for the issuance and encashment of term certificates;

Zero defect production. 6. International trade and credit operations: the

officer in-charge is responsible for import, export and credit operations and should be able to, Follow the relevant industrial

benchmarking; Work with required professional autonomy

and spontaneity; Improve continuously procedures for

quicker and accurate processing of transactions;

Timely delivery debit-credit advice to customers;

Update the departmental process and record-keeping according to latest international industrial practices.

To measure service quality:

To measure and manage service quality, a questionnaire is prepared that measures both the customer expectations of service quality in terms of five dimensions, and their perceptions of the service they receive. When customer expectations are greater than their perceptions of received delivery, service quality is deemed low.



The SERVQUAL is a management model that identified five gaps that may cause customers to experience poor service quality. They are: Gap1: between consumer expectation and management perception. This gap arises when the management does not correctly perceive what the customers want. Gap2: between management perception and service quality specification.

Although the management might correctly perceive what the customer wants, they may not set an appropriate performance standard. Gap3: between service quality specification and service delivery. This gap may arise through service personnel being poor training, incapable or unwilling to meet the set service standard. Gap4: between service delivery and external communication.

This gap arises when the assumed expectations are not fulfilled at the time of delivery of the service.

Gap5: between expected service and experienced service. This gap arises when the consumer misinterprets the service quality. Analysis and interpretation of data: Paired t-Test: In the t-Test for difference of means, the two samples were independent of each other. let us consider the sample sizes are equal and the sample observations are management expectations ( , ,… ) and customer expectations ( , ,… ) are not completely independent but they are dependent in pairs i.e; the pairs of observations ( ),( ),…( ) correspond to the 1st , 2nd ,…

unit respectively. Null hypothesis ( ) : There is no significant difference between management expectations and customer expectations. Alternative hypothesis ( ): There is a significant difference between management expectations and customer expectations.

Table 2: HEALTH CARE

s.no. Types of expectations Management expectations( )

Customer expectations( )

Difference ( )

1 Modern equipments 0.80 0.75 0.05 0.0025

2 Physical Facilities 0.90 0.85 -0.05 0.0025

3 Prompt service 0.85 0.90 -0.05 0.0025

4 Immediate response 0.98 0.85 0.13 0.0169

5 Individual attention 0.65 0.75 -0.10 0.01

6 Have convenient Operation Theaters

0.95 0.90 0.05 0.0025

7 Proper Diagnosis 0.82 0.75 0.07 0.0049

8 Patients satisfied with the Doctor’s service

0.75 0.70 0.05 0.0025

9 Giving assurance toward the service

0.86 0.75 0.11 0.0121

∑ =0.26 ∑ =0.056

4

=

=

(∑ -

)

=

(0.0564 –

) = 0.0061

The test statistic is, t=

√ ⁄

; where =

=0.0288

=1.1064 Degrees of freedom= (n-1) = (9-1)=8 The critical value of t –test is 1.860 at 5% level of significant. Since calculated value of t-test is less than critical value, we accept Ho; i.e; there is a significant difference between management expectations and customer expectations in Health care centers.

Table 3: BANKING SECTOR

s.no. Types of expectations Management expectations( )

Customer expectations( )

Difference ( )

1 Modern Technology 0.80 0.75 0.05 0.0025

2 Ambiance 0.89 0.70 0.19 0.0361

3 Prompt service 0.65 0.85 -0.20 0.04

4 Immediate response 0.65 0.75 -0.10 0.01

5 Customer assurance 0.80 0.80 0.00 0

6 Individual attention 0.65 0.50 0.15 0.0225



7 Have convenient operating systems

0.70 0.70 0.00 0

8 Understand specific needs of the customers

0.80 0.75 0.05 0.0025

9 Grievance Handling 0.45 0.50 -0.05 0.0025

10 Error free records 0.95 0.70 0.25 0.0625

11 Proper evaluation to improve service standards

0.76 0.65 0.11 0.0121

12 Satisfying internal & external customers

0.65 0.75 -0.10 0.01

∑ =0.35 ∑ =0.2007

=

=

(∑ -

)

=

(0.2007 –

) = 0.0173

t=

√ ⁄

= 0.7692 where =

=0.0292

degrees of freedom= (n-1)=(12-1)=11 the critical value of t –test is 1.796 at 5% level of significant. Since calculated value of t-test is less than critical value, we accept Ho; i.e; there is a significant difference between management expectations and customer expectations in Banking sectors. Conclusion: The service quality represents the right way of identifying inconsistency between perception a business has and perception customers have when the quality of service process is concerned. This Gap model can help management identify reasons of poor service quality in its business and take suitable measures for the improvement of the same. The study concluded that there is a need for service quality measurement at various levels in the organization which creates a basis for assessing the degree of customer satisfaction, so that necessary

action can be initiated to improve the process through which the service is offered. It also provides the right motivation for better performance by suppliers, vendors, departments and organizational units. Reference: 1. http://en.wikipedia.org 2. http://business.wikinut.com/The-5-Service-Quality-

Dimensions/.d-m.4b./ 3. Total quality management- SAROJ KUMAR, BHANU

PRAKASH VERN- Thakur publication. 4. http://www.wikihow.com/Improve-Service-Quality-at-Your-

Business

http://en.wikipedia.org/

http://business.wikinut.com/The-5-Service-Quality-Dimensions/.d-m.4b./

http://business.wikinut.com/The-5-Service-Quality-Dimensions/.d-m.4b./

http://www.wikihow.com/Improve-Service-Quality-at-Your-Business

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BEHAVIOURAL FACTORS AFFECTING INVESTMENT DECISIONS * T. Sutha

_______________________________________________________________________________________________________

*Assistant Professor, Department of Commerce (Ss), Ethiraj College for Women (Autonomous), Ethiraj Salai, Egmore, Chennai 600 008.

Abstract

Traditional theories in finance like the Efficient Market Hypothesis assumes that investors are rational and would take informed decisions. But in the real world, especially after witnessing several bubbles and crashes in the recent past, it can be well understood that human foibles play a major role in financial decision- making. Many a times prices of financial assets deviate from the fundamental values and such pricing anomalies last for a longer period of time due to limits to the process of arbitrage. This shows that the rational man model assumed in financial theories and the assumption that smart money makers offset the mispricing caused by noise traders is not possible in real situations. People trade on noise rather than information. The uncertainty prevailing in the financial markets forces investors to make decisions based on heuristics (ie rule of thumb). Several psychological biases influence the decision-making of investors. Psychological biases like anchoring, overconfidence, frame dependence, mental accounting, availability bias, ambiguity aversion, loss aversion, representativeness play a role in financial decision-making. The existence of these biases leads to sub-optimal investment decisions whereby investors trade too often incurring more of transaction cost, would miss profitable trading opportunities, would remain in losing positions too long. This paper aims to identify and measure psychological biases that influence investors. The study also finds out behavioural factors that emerge as a result of these psychological biases. Using a structured questionnaire, data was collected from 346 investors to identify the underlying behavioural factors that affect investment decisions. Keywords: Behavioural factors, psychological biases, investment decisions.

Introduction

The psychology of the investing population demands considerable attention in understanding the field of behavioural finance. People while forming beliefs tend to get emotional at times. They also follow rules of thumb otherwise called heuristics while taking decisions. This ultimately leads to irrational decisions. Some of the psychological factors that influence investment decisions are overconfidence, representativeness, conservatism, anchoring, mental accounting and availability biases. The field of behavioural finance unlike traditional finance will provide an excellent insight about how markets having both rational as well as irrational agents are functioning. This helps policy makers, the corporate world and all other stakeholders to get a better understanding of their markets and thereby be in an advantagueos position as regulators, arbitrageurs or participants. For any trade to take place in a market there should be a seller and a buyer. One of them believes that the price will fall in future and the other believes that the price of the same will rise in future. Essentially only one of them will be right. One of them is a smart money maker and the other trades on noise. Thus to understand the behavior of the markets it is not enough if prices and volume are looked at but also to consider the psychological make up of the people who participate in the market. Review of literature: Hersh M. Shefrin and Meir Statman (1984) present a framework that explains why investors exhibit preference for dividends based on the theory of self control and the theory of choice under uncertainity. The essence of their argument is that dividend and capital cannot be perfect substitutes. In the absence of taxes and transaction cost, the perfect substitute feature may form the basis for irrelevancy. Moreover they argue that in our theory it can be reasonable for many investors to prefer specific

dividend payouts and identify demographic attributes of investors who prefer high and low dividend portfolios. Their empirical evidence on this issue is consistent with the theory. They suggest that some investors will be willing to pay a premium for cash dividends because of self control reasons, the desire to segregate or the wish to avoid regret. Jeremy Stein (1989), has presented two types of tests both of which reject the joint hypothesis that pricing model used to recover implied volatilities is correct and that volatility expectations are formed rationally. Tests are evidence of consistent overreactive behavior in the term structure of options implied volatilities and dispensed with the need for a specific stoshastic model of volatility. Empirical values of this elasticity implied volatility exceeded theoretical upper bounds. Robert J. Shiller ( 1990), in his research on popular models offers glimpses of the thought processes that underlie speculative booms and crashes. There are three cases of research on popular models discussed in his paper. The stock market crash, real estate boom and the IPO underpricing. Investors often thought that investor psychology was what was driving markets, although the incidence of this popular model was much lower in real estate markets. Kenneth R. French and James M. Poterba (1991), have stated that lack of diversification into international equity markets appears to be the result of investor choices, rather than institutional constraints. Since the fortunes of different nations do not always move together, investors can diversify their portfolios by holding assets in several countries. The benefits of international diversification have been recognized for decades. Inspite of this most investors hold all of their assets in domestic markets. In their paper they use a simple model of investor preferences and behavior to show that current portfolio patterns imply that investors in each nation expect returns in their domestic market to be several hundred times better than returns in other markets.



Sholomo Benarth and Richard Thaler (1995), reviewed several tests of myopic loss aversion all of which are supportive of the concept. The evidence on myopic loss aversion is also consistent with the concept of narrow framing ie thinking about gambles or investments one at a time rather than aggregating them into a portfolio. Kent Daniel, David Hirshleifer and Avanidhar Subrahmanyam (1997), develop a theory based on investor overconfidence and on changes in confidence resulting from biased self-attribution of investment outcomes. The theory implies that investors will overreact to private information and underreact to public information. Their theory also offers an explanation for the phenomenon of average public event stock price reactions of the same sign as post event long-run abnormal returns. Harrison Hong and Jeremy C. Stein (1999)that behavioural theory of asset pricing should be judged according to three criteria ie it should rest on assumptions about investor behavior that are consistent with casual observation, it should explain the existing evidence in a unified way and it should make a number of predictions that can be validated. Thus in their framework they have considered bounded rationality which can be seen in the real world and their main conceptual contribution is to show that if there is any short run underreaction to any kind of news then there must eventually be overreaction in the longer run as well. John Y. Campbell and Robert J. Shiller (2004), have found that forecasting relations that worked in the past will cease to work now. The fact that ratios have moved so far outside their historical range poses a challenge however both to the traditional view that stock prices reflect rational expectations of future cashflows and to their view that they are substantially driven by mean reversion. The uniqueness of technological advances and investment patterns, the state of market psychology assumes more than usual importance in judging the outlook of the stock market than traditional ratios available for forecasting. Richard Deaves, Erik Luders and Guo Ying Luo (2008), perform an asset market experiment in order to investigate whether overconfidence induces trading. They investigate three manifestations of overconfidence: calibration- based overconfidence, the better-than-average effect and the illusion of control. They have found that calibration- based overconfidence does endanger additional trade, though better-than-average also appears to play a role. This is true both for both genders. Theoritical Framework

The eight psychological biases taken up for the study are explained in this section

Anchoring is a psychological phenomenon where when an initial value (anchor) which can be past price of a stock in case of investments is available where people take that as an initial value and keep

making adjustments to it not considering whether such adjustments are sufficient.

Availability Bias is a situation where people place undue weightage on readily available information and decide based on instances that are brought to mind with ease.

Loss Aversion is based on the idea that the mental penalty associated with a given loss is greater than mental reward of the same size. If investors are loss averse they may be reluctant to realize losses and therefore may stay in losing positions.

Ambiguity Aversion is a condition where investors want to avoid situations where there is a significant amount of uncertainity. This will result in missing of profitable opportunities due to an intention to avoid uncertain proposals.

Representativeness is a situation where people decide based on stereotypes and in stock markets investors tend to assume that recent events will continue into the future also. Thus it can manifest itself when investors seek to buy hot stocks and avoid stocks which have performed poorly in the recent past.

Mental Accounting is the name given to a propensity of individuals to organize the world into separate mental accounts. Investors tend to treat each element of their investment portfolio separately and not take a collective look at it.

Frame dependence is a phenomenon where people see choices within the frame in which it is offered and form their beliefs. This will lead to bounded rationality in decision making

Overconfidence is a condition where investors tend to overestimate their predictive capabilities and therefore trade too much which may result in higher transaction cost and loss making situations. Objectives of the Study In the light of the above discussion this study assumes significance. The following are the objectives of the study. 1. To identify psychological biases that influence investment decisions. 2. To find out the behavioural factors that emerge out of these biases. Methodology of the study The study uses primary data collected through the development of a structured questionnaire. The questionnaire has twenty eight statements to measure psychological biases and eight statements to understand the demographic profile of the respondents. The responses are collected using the five point likert scale where the measures are strongly agree -5, agree -4, neutral -3, disagree -2, strongly disagree -1. Factors analysis is the statistical tool used to analyse the responses and draw inferences. The respondents to the questionnaire are investors who own demat accounts and trade in shares. The random sampling technique was used to determine the sample. A total of 500 questionnaires



were distributed and 345 completed questionnaires were collected and used for the study. Findings of the study The principal component analysis which helps to determine the factors that has greatest impact on the subjects was used. PCA is useful in identifying the most meaningful biases to re-express the data set. To determine sampling adequacy and suitability of data for factor analysis, the Kaiser-Meyer-Olkin Measure of Sampling Adequacy (MSA) and the Barlett’s Test of Sphericity were applied. The KMO measure of sampling adequacy is a statistic that indicates the proportion of variance in the variables that might be caused by reduced factors. A bare minimum of .5. The following table shows the results for these tests.

KMO and Bartlett's Test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy.

.640

Bartlett's Test of Sphericity

Approx. Chi-Square 2790.555

df 378

Sig. .000

From the above table a value of 0.6 of KMO indicates that factor analysis would give meaningful result for the data that is used in the study. Similarly the sig. value for Barlett’s test of spherecity is 0.000 which indicates that there exists significant relationships among variables. The result of multi variate analysis is mainly focused on combining all psychological biases considered in the survey instrument in order them into behavioural factors that best describes investor behavior. The behavioural factors extracted based on the psychological biases taken up for the study is explained in the following paragraphs. 1. Preference for the familiar past and Dependence

on Analyst Recommendation This is the first component extracted. The table below gives the statements and factor loadings of all those statements forming the first component.

fac no

var no Statement loading

1 13

Past performance of a stock is indicative of its future performance. 0.765

31

In the past three years stock A has given very good dividends to its investors. Therefore in future also the same trend will continue. 0.747

11

In the last two years the price of a particular share has gone up by 70%. Based on this information, I will consider the share worth buying. 0.605

34

Share A that I purchased 3 months back is currently not doing well. My investment advisor wants me to transfer 0.591

funds from share A to Share B. I will do what the broker says.

2. Skepticism, Media Driven, Excessive Trading

Attitude The second component shows the investor’s preference for news in the media and excessive trading. The following table gives the statements and factor loadings of all the statements forming the second component.

fac no


2 24

I prefer securities with moderate and certain returns when compared to securities with high and uncertain returns. 0.72

21

Stocks which attracts a lot of attention in the media are worth trading in. 0.608

19

The BSE Sensex has increased consecutively for the past 3 days therefore there is high probability that it will increase the next day. 0.6

16

When compared to other investors I consider myself more experienced and therefore trade very often. 0.553

3. Momentum trading, loss aversion and Narrow

framing Attitude. The third most important component is investor’s attitude to trade based on information that is immediately available. The table below shows the statements and factor loadings for the third component.

fac no


3 20

I compare the current prices with their recent 2 week high and low so as to justify my stock purchase. 0.753

12

A share that I bought one month ago for Rs.50 is now trading at Rs.40. Next month the price will be either Rs.50 or Rs.30. Since both possibilities are equally likely it is better to hold the share for one more month and not sell it immediately. 0.618

15

It is better to invest in debentures of a company which has fixed rate of returns rather than investing in shares of the same company. 0.528

42 Two out of ten stocks in 0.42



the investment portfolio has reduced in value considerably. I will treat these loss separately and not take it as loss on the entire portfolio and adjust it.

4. Risk Averse Attitude

fac no


4 36

I believe that the past week high and low price of a stock determines its current price movement range. 0.794

26

The price of a share in which I invested few months back has gone down. Broker is asking to sell at a loss and invest the funds in shares of another company. 0.707

14

I prefer to invest my savings for retirement in instruments with moderate guaranteed returns rather than investing in securities that offer high returns but with higher degree of risk. 0.492

38

I will sell a stock whose price is increasing and retain a stock whose price is decreasing. 0.44

5. Cautious and Conservative Attitude This is the fifth component extracted and the table following shows the statements and factor loading for these components.

fac no


5 28

I am unlikely to buy a stock if it is more expensive than last year. 0.781

37 A bad news about a stock is a signal to sell off 0.604

6. Trend is your Friend Attitude This sixth component to investor behavior states that investors follow the trend. The following table shows the statements that are a part of this factor.

fac no

var no Statement

loading

6 5

One must avoid investing in companies with history of poor earnings. 0.704

10

I see the stock price as high if the price has reached its 52 week high. 0.685

41

Both in a bullish and bearish market I can find an opportunity to trade 0.553

7. Systematic Planning Fallacy This seventh component is the behavior of the investor where the investor systematically plans his trade with the help of some criterion which can go false at times. The table below gives the statements that fall under this factor.

fac no


7 39

Stocks with high P/E ratios in the past alone are worth buying. 0.756

8. Belief Perseverance The eight component is about relying on one’s own opinion and not willing to alter it. The following is table that shows the statements that are part of this component.

fac no

var no Statement

loading

8 33

It is not important to consult others before taking an investment decision. 0.86

35

There is a portfolio of investment which consist of shares, fixed deposits, gold and real estate, out of which investment in shares has gone down in value. I will consider it to be a separate loss and will not invest in shares in future. 0.423

9. Certainty Effect This component shows that investors prefer to base their investment decisions on information that is hundred percent accurate rather than uncertain but highly profitable investments.

fac no


9 40

Stock A gives 12% per annum returns with a probability of 50%. Stock B’s returns are not known. It is better to invest in stock A. 0.881

10. Regret Aversion, Optimism and Wishful thinking This is the last component extracted and the table that follows gives the statements that are a part of this component.

fac no


10 30

I am more concerned about a large loss in my stock in my stock than missing a substantial gain. 0.768

25

I feel more confident in my own investment opinion over the opinion of my friends and colleagues. 0.451

29 Whenever there is good 0.375



news about a Company I will invest in that Company

Summary and Conclusion The field of behavioural finance takes into consideration the psychological aspects of people while making financial decisions. The simple models in traditional finance which assumes that investors are rational and would always make optimal decisions can no longer be relied upon. The human mind is wired to respond to greed and fear. Many of the stock market bubbles and crashes can be best understood in the light of human foibles and consequent herd behavior. This study thus focuses on the emotional aspects involved in investment decisions. Eight most important psychological biases namely anchoring, availability bias, loss aversion, ambiguity aversion, overconfidence, frame dependence, mental accounting are taken. 28 statements to study these biases form the questionnaire. An exploratory factor analysis is done on it to find out the different behavioural factors that emerge out of the study. Ten behavioural factors were extracted that shows the psychological make-up of the respondents who participated in the study. Thus the study measured and identified the behavioural dimensions of investors in the process of making investment decisions.

Similar studies taking into consideration other heuristic factors can be done. Studies can be done with fund managers, dealers and stock brokers to understand how they manage their emotions when they deal with other people’s money. References

1. Hersh M. Shefrin and Meir Statman (1984). Explaining Investor Preference for Cash Dividends. Journal of Financial Economics, vol.13, pp. 253- 282.

2. Jeremy Stein (1989). Overreactions in the Options Market. The Journal of Finance, pp. 1011- 1022.

3. Robert J. Shiller ( 1990). Speculative Prices and Poplular Models. Journal of Economic Perspectives, vol 4, pp. 55 -65

4. Kenneth R. French and James M. Poterba (1991). Investor Diversification and International Equity Markets. American Economic Review, vol.81, pp.222-226

5. Sholomo Benarth and Richard Thaler (1995). Myopic Loss Aversion and Equity Premium Puzzle. Advances in Behavioural Finance, vol.2.

6. Kent Daniel, David Hirshleifer and Avanidhar Subrahmanyam (1997). Investor Psychology and Security Market Under and Over reaction. Journal of Finance, vol.viii pp.1918-1983.

7. Harrison Hong and Jeremy C. Stein (1999). A Unified Theory of Underreaction, Momentum Trading and Overreaction in Asset Markets. Revised, Edited of Paper in Journal of Finance.

8. John Y. Campbell and Robert J. Shiller (2004). Individual Investor. Revised Financial Analysis Journal, Vol.II.

9. Richard Deaves, Erik Luders and Guo Ying Luo (2008). An Experimental Test of the Impact of Overconfidence and Gender on Trading Activity. Review of Finance, pp-1-21.



COMPARING OPERATIONAL EFFICIENCY OF INDIAN NATIONALISED BANKS USING DEA OF CAMEL

*Dr. G. Madan Mohan **Rahul Raaj R.

_______________________________________________________________________________________________________

*Assistant Professor, Department of Management Studies, Pondicherry University **II. MBA, Pondicherry University. Introduction

Banks are the pillars of any economy. Their health is absolutely essential for the country at large. Healthy banking system is an important indicator of sound financial sector in the country. Recent global financial crisis witnessed many popular banks turning bankrupt which could have been averted had proper and periodic evaluation of their performance been conducted and timely remedial action initiated. Performance evaluation is an effective early warning system. Despite the massive effect of recession on foreign financial institutions, Indian banks were not affected due to the effective monitoring exercised by the RBI. CAMEL Model CAMEL is a useful tool to examine the safety and soundness of banks, and help mitigate the potential risks which may lead to bank failure. The main endeavor of CAMEL system is to detect problems before they manifest themselves. This system was developed by regulatory authorities of the U.S banks. The Federal Reserve Bank, the Comptroller of the Currency and the Federal Deposit Insurance Corporation use this system (McNally 1996). Monetary authorities in most countries are using this system to check up the health of financial institutions. The Basle Committee on Banking Supervision of the Bank of International Settlements (BIS) has recommended using capital adequacy, assets quality, management quality, earnings and liquidity (CAMEL) as criteria for assessing efficiency of banks (ADB 2002). A sixth component, market risk, was added to CAMEL in 1997 (Gilbert, Meyer and

Vaughan 2000). However, most of the developing countries are using CAMEL for performance evaluation of financial institutions. Central banks in some countries such as Nepal, Kenya, etc. use CAMEL instead of CAMELS. In addition, International Monetary Fund also is using the aggregated indicators of individual FIs to assess the financial system soundness of its member countries as part of its surveillance work (Hilbers, Krueger and

Moretti 2000). Camel model has been the prescribed model for measuring the performance of banks and other financial institutions by top regulators like RBI, Federal Reserve and other central banks of various nations. Also private rating firms like CRISIL are using CAMEL as tool for measuring the performance of banks.

Berger and Davies (1994) examine the information content of CAMEL ratings by testing stock price reactions when new ratings are assigned. Despite the fact

that CAMEL ratings are confidential, the authors found that rating downgrades seem to lead to negative excess stock returns. They interpret this result as evidence that examinations generate valuable private information and that rating downgrades reveal unfavourable private information about bank conditions. Similarly, DeYoung, Flannery, Lang, and Sorescu (1998) find that CAMEL ratings contain found that BOPEC ratings—the supervisory ratings given to bank holding companies—contain information about bank conditions that goes beyond the information in market data, such as bond-rating downgrades. In particular, they found that supervisory data and market information Granger cause (or are useful in forecasting) one another, suggesting that both supervisors and the financial markets have some unique information. Barker and Holds worth (1993) found evidence that CAMEL ratings are significant predictors of bank failure, even after controlling for a wide range of publicly available information about the condition and performance of banks. Similarly, Cole and Gunther

(1995, 1998) found that the information contained in CAMEL ratings decays quickly with respect to predicting bank failure from 1986 to 1992. In particular, they found that a model using publicly available financial data is a better indicator of the likelihood of bank failure than the previous CAMEL rating is once the rating is more than one or two quarters old. These two studies address the issue of information decay directly; however, the primary purpose of CAMEL ratings is not to identify future bank failures, but to provide an assessment of banks’ overall conditions at the time of the examinations. Significance of the Study

According to a report by ICRA Limited, a rating agency, the public sector banks hold over 75 percent of total assets of the banking industry, with the private and foreign banks holding 18.2% and 6.5% respectively. With banks utilising public funds for their assets, it becomes absolutely essential to ensure that their financial health is good. Hence, this study tries to assess the financial health of nationalised banks using CAMEL Model.

CAMEL is basically ratio based model for evaluating the performance of banks. It is a management tool that measures capital adequacy, quality of it assets, management, earnings and liquidity of financial institutions. Objectives of the Study

1. To rank the performance of all the nationalised banks based on CAMEL



(capital adequacy, Asset Quality, Management Efficiency, Earning Quality and Liquidity) during the period of 2004-05 to 2012-13.

2. To assess weather any significant difference existed in camel of the nationalized banks during the Pre-recession, Recession and Post recession periods.

Methodology

The proposed research is descriptive in nature, based purely on secondary data, collected from Online Database maintained by BLOOMBERG database and from reliable websites such as www.rbi.org.in and www.moneycontrol.com. Different ratios used for assessing the efficiency of all the nationalized banks using the CAMEL Model were arrived at using the secondary data, which were further represented suitably in tables and analysed using statistical softwares of SPSS, MS Excel and Data Envelope Analysis (DEA) employing the statistical tools of ANOVA, Ratio Analysis and DEA. The Ratios Used for CAMEL 1. Capital Adequacy Ratio: Capital Adequacy

Ratio, Total Debt To Owners Fund, Advances To Assets Ratio, Credit Deposit Ratio, Investment Deposit Ratio And Cash Deposit Ratio

2. Assets Quality: GNPA to Total Advance, NNPA to Total Advances, NNPA to Total Assets and Investments to Total Assets.

3. Management Efficiency Ratios: Business of Employee, Profit of Employees, Total Advances to Total Deposits and Return on Equity.

4. Earnings Ratios: Operating Profit to Total Asset, Cost to Income, Return on Asset and Income Spread to Total Income.

5. Liquidity Ratios: Liquid Asset to Total Asset, Liquid Asset to Total Deposit, Current Ratio and Liquid Ratio.

Data Analysis and Interpretation Table 1: RANKING BANKS EFFICIENCY based on capital adequacy ratio

2004-08 2008-13

EFFICIENCY SCORE

RANK

BANK EFFICIENCY SCORE

RANK

1.000 1 Corporation bank

1.000 1

1.000 1 IDBI bank 0.779 19

0.833 3 State bank of India

1.000 1

0.823 4 Central bank of India

0.993 7

0.814 5 Bank of Baroda

1.000 1

0.774 6 Bank of Maharastra

0.895 15

0.765 7 Indian bank

0.994 6

0.752 8 Vijaya bank

0.997 5

0.723 9 Oriental bank of commerce

0.943 11

0.698 10 Indian overseas bank

0.877 17

0.688 11 Bank of India

0.932 13

0.686 12 Andhra bank

0.941 12

0.681 13 Allahabad bank

0.961 9

0.678 13 Canara bank

1.000 1

0.628 15 Punjab national bank

0.976 8

0.624 16 Syndicate bank

0.846 18

0.613 17 Union bank of India

0.955 10

0.529 18 UCO bank 0.884 16

0.501 19 Dena bank 0.903 14

Mean 0.735 0.941

It can be observed from Table 1 that during the period of 2004-08, Corporation bank and IDBI bank have performed excellently well, while Bank of Baroda, Canara bank, Corporation bank and State bank of India have performed exceptionally wellll during 2009-13. Oriental bank of commerce, Indian overseas bank, Bank of India, Andhra bank, Allahabad bank, Canara bank, Punjab national bank, Syndicate bank, Union bank of India, UCO bank, and Dena bank have performed less than the

mean efficiency during 2004-08, while Bank of India, Dena bank, Bank of Maharashtra, UCO bank, Indian overseas bank, syndicate bank, IDBI bank have performed lesser

than the mean efficiency during 2009-13. Table 2: ranking of banks based on assets quality ratio

2004-08 2008-13

EFFICIENCY

SCORE

RAN

K

BANK

EFFICIENCY

SCORE

RANK

1.000 1 Andhra

bank 0.706 7

1.000 1 Vjaya

bank 0.210 19

0.954 3 Corporati

on bank 0.584 9

0.902

4 Oriental bank of commerce

0.564 11

0.819 5 Bank of

India 1.000 1

0.738 6 Canara

bank 0.550 12

0.7

7 Union bank of India

0.720 6

0.63

8 Punjab national bank

0.904 3

http://www.rbi.org.in/

http://www.moneycontrol.com/



0.626 9 Syndicate

bank 0.523 13

0.562 10 IDBI bank 0.309 17

0.561 11 Bank of

Baroda 0.758 4

0.561

11 Indian overseas bank

0.743 5

0.546 13 UCO

bank 0.332 16

0.541 14 Dena

bank 0.593 8

1 1 Andhra

bank 0.706 7

0.536 15 Indian

bank 1.000 1

0.52 16 State bank

of India 0.578 10

0.509 17 Allahabad

bank 0.460 14

0.437

18 Bank of Maharashtra

0.345 15

0.434

19 Central bank of India

0.232 18

Mean 0.662 0.585

It can be inferred from Table 2 that during the period of 2004-08, Andhra bank and Vijaya bank have performed extremely well while Bank of India and Indian bank tops the list for the period of 2009-13. Punjab national bank, Syndicate bank, IDBI bank, Bank of Baroda, Indian overseas bank, UCO bank, Dena bank, Indian bank, State bank of India, Allahabad bank , Bank of Maharashtra, Central bank of India have performed less than the mean efficiency during 2004-08, while

Corporation bank, State bank of India, Oriental bank of commerce, Canara bank, Syndicate bank, Allahabad bank, Bank of Maharashtra, UCO bank, IDBI bank, Central bank of India andVijaya bank have performed less than the mean efficiency during 2009-13.

Table 3: ranking of banks based on management efficiency

EFFICIENC

Y SCORE

RAN

K

BANK

EFFICIENCY SCORE

RANK


1.000 1


0.718 2

0.401 3 bank of Baroda

0.418 4

0.385 4 oriental bank of commerce

0.264 7

0.320 5 corporation bank

0.434 3

0.264 6 canara bank

0.279 6

0.196 7 bank of India

0.386 5

0.158 8 union bank of India

0.250 8

0.151 9 syndicate bank

0.130 12

0.134 10 Dena bank 0.112 15


0.127 13


0.092 16


0.166 11

0.104 14 Vijaya bank

0.090 17

0.086 15 bank of Maharashtra

0.088 18

0.086 15 central bank of India

0.205 10

0.075 17 IDBI bank 0.066 19

0.068 18 UCO bank 0.118 14

0.016 19 Indian bank

0.214 9

Mean 0.228

It can be inferred from Table 3 that during both the periods of 2004-08 and 2009-13, bank of India has performed extremely well. Bank of India, union bank of India, syndicate bank, Dena Bank, Allahabad Bank, Andhra Bank, Indian Overseas Bank, Vijaya Bank, Bank of Maharashtra, Central Bank of India, IDBI bank, UCO bank and Indian Bank have performed less than the mean efficiency during 2004-

08, while during 2009-13, Oriental Bank Of Commerce, Union Bank Of India, Indian Bank, Central Bank of India, Indian Overseas Bank, Syndicate Bank, Allahabad Bank, UCO Bank, Dena Bank, Andhra Bank, VIjaya Bank, Bank Of Maharashtra and IDBI Bank have performed less than the mean efficiency.

Table 4: ranking of banks based on earnings ratio 2004-08 2009-13

EFFICIENCY

SCORE

RANK BANK

EFFICIENCY SCORE

RANK


1.000 1


0.678 2

0.344 3 bank of india 0.440 4

0.265 4 IDBI bank 0.265 9

0.246 5 bank of baroda

0.488 3

0.243 6 canara bank 0.343 6


0.379 5


0.200 10

0.153 9 central bank of india

0.104 15


0.291 7

0.143 11 indian bank 0.273 8




0.199 11

0.116 13 UCO bank 0.122 13


0.169 12


0.117 14

0.075 16 Dena bank 0.093 17

0.071 17 Andhra bank 0.095 16

0.065 18 vijaya bank 0.031 19

0.061 19 bank of Maharashtra

0.053 18

Mean 0.208

It can be inferred from Table 4 that during both the periods of 2004- 08 and 2009-13, state bank of India has performed extremely well. The table further highlights that Bank of Baroda, Union Bank Of India, Oriental Bank Of Commerce, Central bank of India, India Overseas Bank, Syndicate Bank, Andhra Bank, Corporation Bank, Indian Bank, UCO Bank, Vijaya Bank, Allahabad Bank, Bank of Maharashtra and Dena bank have performed less than the mean efficiency

during 2004-08, while State Bank of India have performed extremely well. Union bank of India, Syndicate Bank, Central bank of India, Indian Overseas Bank, Indian Bank, Oriental Bank of Commerce, UCO bank, Allahabad Bank, Corporation Bank, Dena Bank, Andhra Bank, Vijaya Bank, Bank of Maharashtra have performed less than the

mean efficiency during 2009-13. Table 5: Ranking of banks based on liquidity ratio EFFICIENCY SCORE

RANK

BANK

EFFICIENCY SCORE

RANK


0.856 2 IDBI bank 0.265 9

0.422 3 punjab national bank

0.678 2


0.199 11

0.384 5 bank of india

0.440 4

0.291 6 canara bank

0.343 6

0.276 7 bank of Baroda

0.488 3


0.379 5

0.249 9 UCO bank

0.122 13


0.291 7

0.158 11 bank of 0.053 18

Maharashtra

0.154 12 Indian bank

0.273 8

0.141 13 central bank of India

0.104 15


0.169 12


0.095 16


0.200 10

0.113 17 vijaya bank

0.031 19


0.117 14

0.059 19 Dena bank

0.093 17

Mean 0.287

It can be inferred from Table 5 that During both the periods of 2004-08 and 2009-13, State Bank Of India has performed extremely well. During 2004-08, Bank of Baroda, Union bank Of India, UCO bank, Indian overseas Bank, Bank of Maharashtra, Indian Bank, Central bank of India, Allahabad Bank, Andhra Bank, Syndicate Bank, Vijaya Bank, Corporation Bank, Dena Bank have performed less than the mean efficiency

while during 2009-13, Indian Bank, IDBI bank, Syndicate Bank, Oriental Bank of Commerce, Allahabad Bank, UCO bank, Corporation Bank, Central Bank Of India, Andhra Bank, Dena Bank, Bank Of Maharashtra, Vijaya Bank have performed less than the mean efficiency. State Bank of India is performing consistently well in EARNINGS RATIO, MANAGEMENT EFFICIENCY RATIO AND LIQUIDITY RATIO is concerned. However Corporation Bank has consistently performed well in CAPITAL ADEQUACY RATIO while in ASSETS QUALITY RATIO Bank of India has performed consistently well.

TABLE 6: TRENDS IN CAMEL IN THE LIGHT OF

RESCESSION Parameter Pre-

Recession

Recession

POST-RECESSION

Capital Adequacy

23.9261* 24.1855* 22.0611**

Assets Quality

0.1064* 0.0759* 1.8584*

Management Efficiency

13.5616* 19.9923** 21.0627**

Earnings 0.2384 0.2368 0.4705

Liquidity 2.3663* 3.6924** 6.5268***

It can be inferred from Table 6 that there has been a significant difference during the recession and pre and post recession periods as far as capital adequacy, Management Efficiency and Liquidity ratios are



concerned. The Capital Adequacy and Liquidity Ratios have increased during post-recession period when compared with pre-recession and recession periods while Management Efficiency Ratio has increased during recession and post-recession periods when compared to the pre-recession period. It can further be inferred from the table that there is no significant difference in Assets Quality Ratio and Earnings Ratio during the recession and pre and post recession periods.

Conclusion

State bank of India has the highest earnings ratio, management efficiency ratio and liquidity ratio while corporation bank has an excellent capital adequacy ratio and Bank of India has the highest assets quality ratio. Hence, State Bank of India is maintaining its dominant position in the Indian banking sector.

The capital adequacy and Liquidity Ratios showing an increasing trend during the post recession period might be due to the strict regulatory framework of the RBI during the recession era and the period following it. References

1. Keshar J. Baral (2005) “Health Check-up of Commercial Banks in the Framework of CAMEL: A Case Study of Joint Venture Banks in Nepal”. The Journal of Nepalese Business Studies Vol. II No. 1 Dec. 2005

2. McNally, Edward A. (1996). “Basic topics in sound bank management”. EDI working papers. Washington, DC: World Bank. Available at http://documents.worldbank.org/curated/en/1996/01/438691/basic-topics-sound-bank-management

3. Berger, A.N., and S.M. Davies. (1994). “The Information Content of Bank Examinations”. Journal of Financial Services Research, Issue 14.

4. Rose and Peter S. (1999). “Commercial Bank Management”, 4th ed. Boston: Irwin McGraw-Hill.



A STUDY ON BRAND LOYALTY OF CONSUMER PRODUCTS (With Special Reference to cinthol soap in Vellore city)

*S.Rupa(Alias) Andal *C.Sumitha

_______________________________________________________________________________________________________

*Assistant Professors of Commerce, D.K.M. College for Women (Autonomous), Sainathapuram, Vellore-632001.

Abstract Brand loyalty is a scenario where the consumer fears purchasing and consuming product from another brand. It is measured through methods like word of mouth publicity, repetitive buying, price sensitivity, commitment, brand trust, customer satisfaction,etc.It exists when the consumer feels that the brand consist of right product characteristics and quality at right price. Even if the other brand are available at cheaper price or superior quality, the brand loyal consumer will stick to that brand. A brand is given legal protection from being used by others because it is capable of exclusive approbation. A brand is a symbol or a mark that helps a customer in instant recall of brand and differentiating the products from others. This paper highlights the brand loyalty of consumer products with special reference to cinthol soap in vellore city. Key Words: Brand Loyalty, Product Quality.

Introduction:- Brand loyalty in marketing,consists of a consumers commitment to repurchase the brand and demonstrated by repeated buying of a product or service or other positive behaviours such as a wordof mouth advocacy.True brand loyalty implies that the consumer is willing at least on occasion, to put aside their own desires in the interest of the brand. Brand loyalty is the ultimate goal of the market,loyalty patterns may be shifting to a number of product categories.Today’sbrands are more visible than those in the past. They are everywhere on the TV hoardings posters and print media. The long term brand management starts with the brand concept and name selection.Brandconcept refers to the meaning of the brand, i.e., it defines the brand market boundaries. Brand name is like naming a new child. It also helps in establishing the concept.[CINTHOL has never shown any compromise to its original concept- Cinthol is one word for skin care]. Meaning of Brand Loyalty:- Brand loyalty is a consumers preference to buy a particular brand in a product category. It occurs because consumers perceive that the brand offers the right product features, images or level of quality at the right place. This perception becomes the foundation for a new buying habit. Basically, consumers initially will make a trial purchaseof the brand and,after satisfaction, tend to form habits andcontinue purchasing the same brand because the product is familiar. Definiton:-

Philip Kotlerdefines brand “a name, term, symbol or design or a combination of them which is intended to identify the goods and services of an seller or a group of sellers and to differentiate them from competitors”.

Wilkie[1994] defines brand loyalty as a favourable attitude and consistent purchase of a particular brand. Brand Name:- Brand Name is part of a brand consisting of a word, letter, group of words or letter comprising a

name which is intended to identify the goods or services of a seller or a group of sellers and to differentiate them from those of competitors. Brand Marks:-

A mark is the brand which appears in the form of a symbol, design or distinctive colouring or lettering. It could be recognized only by sight but may not be prounceable, e.g., the picture of‘Gopuram’ of Tamil Nadu Tourist Development Corporation. Branding:- Branding is the management process by which a product is branded.It is the general term covering various activities such as giving a brand name to a product, designing a brand mark, and establishing and popularizing it. Functions of Branding:-

Most often indirectly it denotes the quality of standard of a product.

It helps in price differentiating of products.

It helps to create and maintain brand loyalty to particular products.

It checks and controls imitation products and ensures legal right of the procedure.

Main aim is product identification adding distinctiveness to product.

It helps in advertising and packaging of products.

Factors Influencing Brand Loyalty:-

It has been suggested that brand loyalty includes some degree of pre-dispositional commitment towards a brand. Customers perceived value, brandtrust, customer satisfaction, repeat purchase behaviour, and commitment are found to be the key influencing factors of brand loyalty. Commitment and repeated purchase behaviour are considered as necessary conditions for brand loyalty.

There could be a number of factors, which influence brand loyalty. Recent studies across a number of product categories have shown that there need not to be a correction between customer satisfaction and loyalty. The aspect which provide insight into managing the loyalty factors are,

Nature of the product and consumer usage.



Monitoring trends to hold the loyalty base of consumers and symbolicandfunctional appeals associated with product.

Merits of Brand Loyalty:-

Brand loyalty consumers start building a relationship with the brand.

They may become advocates of the brand by their positive word of mouth.

Brand loyal consumers may also become passionate above the brand and form clubs which results in further strengthening the brand.

The linkages involved in brand visibility and the display of loyalty results in a positive rub-off the equity of the brand.

Loyal consumers may also prepared to try out the variants of the brand and in certain categories may even be prepared to pay a premium.

Brand loyal consumers may try out other offerings brought out by the brand. Under certain condition, consumers may also transfer their brand loyalty across product categories.

Strategy For Building global Brands:-

A global brand should have a minimum level of geographical spread and turnover in various global markets. However, in the fields of place and a number of IT companies from India have aimed at global markets with little presence domestically.

Dominates the domestic markets, which generates cash flow to enter new markets;

Meets a universal consumer need.

Demonstrates balanced country-market converge.

Reflects a consistent positioning worldwide.

Benefits from positive country of origin effect.

Focus is on the product category. Classification of brand loyalty:- In fact brand loyalty is one way of segmenting the market. Brand loyalty cannot be directly related to number of buyers or sequences in purchasing. 1.Undivided loyalty:- One may repeatedly purchases a product may also favourable disposed towards the product and its brand. 2.Divided loyalty:- As in the case of a family brand, the buyer may be loyal to one product of the brand family but he may buy another product of another brand e.g., when both tooth brushes and pastes are available of the same brand, the buyer may be loyal to new brand of brush and another brand to paste. 3.Unstable loyalty:- Some buyers are just not dependable. A small change in product design, price or appeal of a competitor will be sufficient to change their brands. 4.No loyalty:- Some buyer have too loyalty whatever. They may experiment a brand every time they buy or go by objective standards. They won’t stick on to a brand for a reasonably long time.

Product Quality:- Product quality encompasses the features &

characteristics of a product or service that bears on its ability to satisfy stated or implied needs. In other words, product quality is defined as “fitness for use” or “conformance to requirement”.

Material is important in product quality because it affects the hand feel, texture and other performance aspects of the product. Further ,consumers relate personally to colour and could select or reject a fashion because of colour. Importance of Brand Loyalty Today Brand loyalty is the act of consumers consistently purchasing a product or patronizing a company. Companies typically build this loyalty through strong advertising and marketing campaigns that influence consumers as well as high quality products or services. Marketing is necessary to entice consumers to purchase one company’s good over competing goods. The importance of brand loyalty leads to increased market share, higher profits and better goodwill among consumers. Companies will often go through a series of activities that improve their loyalty among customers. Brand loyalty is often expensive for companies to achieve through it sounds simple enough, it is not always easy. Competitors that have a strong. Loyal consumer base can make it difficult for a new company to enter a market. Other times, the necessary expenditures for advertising products might be prohibitive for some companies. Well- managed plans and operations can be more successful than blanketing an entire market with advertising. Objectives of the study:-

1. To study the attitude and behaviour of cinthol soap users.

2. To examine the brand switching behaviour of respondents.

3. To analyse the customers level of satisfaction towards cinthol soap.

4. To suggest way and means for more improvement of brand loyalty in future.

Scope of the study

Brand loyalty is a consumer’s preference to buy a particular brand in a product category. It occurs because consumers perceive that the brand offers the right product features, images or level of quality at the right price. This perception becomes the foundation for a new buying habit. Basically, consumers initially will make a trial purchase of the brand and after satisfaction, tend to form habits and continue purchasing the same brand because the product is safe and familiar. It protects the manufacturers from competition and gives him greater control and latitude in planning his marketing mix. Brand are powerful instrument of sale promotion and it should have a stable life and be unaffected by time.



Limitations of the study

The sample size is confined to 100sample only.

The most important drawback of the study is the time limitation.

The study was confined only to the vellore city.

The responses given by selected respondents may subject to bias.

Review of Literature

Baldinger and Rubinson[1996] have validated that highly loyal buyer tend to stay loyal if their attitude towards a brand is positive.

Joseph and Richard[1973]emphasized the known fact that brand loyalty emerges from brand satisfaction. They observed that a relationally strong relationship exists between brand loyalty and satisfaction with a present production of brand.

Rositer and Percy[1987]argued that brand loyalty is often characterized by a favourable attitude towards a brand and repeated purchase of the same brand over time. Service organization continuously look for various ways to increase customer loyalty.

Zeithamal et al., [1996]states that brand loyalty not only assures steady receipts and revenues but also facilities reduced advertising and marketing budgets without forgoing effectiveness. The overall result of these advantages is increased marketing efficiency.

Research Methodology The methodology of the study is based on

the primary as well as secondary data. The study depends mainly on the primary data collected through a well framed and structured questionnaire to elicit the well-considered opinions of the respondents. Over all 100 respondent were chosen from different age groups. Analysis and Findings Hypothesis Testing

Table -1 Gender

Gender No.of respondents

Percentage(%)

Male 44 88

Female 56 12

Total 100 100

Inference:-

The above table shows that 88% of the respondents are male, and 12% of the respondents are female. So majority of the respondents are male.

Table-2 Using cinthol soap

Particular No.of Respondents

Percentage(%)

Yes 70 70

No 30 30

Total 100 100

Inference :-

The table shows represents that 70% of the respondents are using cinthol soap, while 30%of the respondents are using other soaps.

Table 3 Kinds of bath soap

Particulars Male Female Total

Foamy 4 14 18

Herbal ingredient

24 22 46

Medicated 12 8 20

Coloured 4 12 16

Total 44 56 100

Application of chi-square test:- Null Hypothesis [HO]: There is no significant relationship between kinds of bath soap based on their gender. Alternative Hypothesis [H1]: There is a significant relationship between kinds of bath soap based on their gender. Degree of Freedom:-V=R-1 X C-1 =4-1X2-1 V=3 Calculated value(O-E)2 = 4.565 E Table value @ 5% significant level =7.81 Conclusion:-

The calculated value is less than the table value. So null hypothesis is accepted.Hence, there is no significant relationship between kinds of bath soap based on their gender.

Table- 4

Sales promotion techniques

Particulars

Below5000

5000-

10000

10000-

15000

Above

15000

total

Coupons 10 - 4 10 24

Free gifts 6 8 6 19 38

Money refund offer

6 2 8 2 18

Others 4 10 4 2 20

Total 23 20 22 32 100

Application of chi-square test:- Null Hypothesis [HO]: There is no significant relationship between various sales promotion technique based on their income. Alternative Hypothesis[H1]: There is a significant relationship between the sales promotion technique. Degree of freedom:-V=R-1 x C-1 =4-1 X 4-1 V=9 Calculated value(O-E) 2=16.5315 E Table value @5% significant level=16.9 Conclusion:-

The calculated value is less than the table value. So null hypothesis is accepted. Hence, there is no significant relationship between sales promotion technique based on their income.



Table-5 Special features in cinthol soap

Particulars Below 5

years

5-10 years

10-15 years

Above 15

years

Total

Perfume 4 6 10 26 46

Colour 2 4 14 4 24

Lather - - - 10 10

Others - - 14 6 20

Total 6 10 38 46 100

Application of chi-square test:- Null Hypothesis [HO]:

There is no significant relationship between age of consumers and special features in the cinthol soap. Alternative Hypothesis [H1]:

There is a siginificant relationship between age of consumers and special features in the cinthol soap. Degree of freedom:- V=R-1 x C-1 =4-1 X 4-1 V=9 Calculated value(O-E)2=17.5523 E Table value @ 5% significant level =16.9 Conclusion:-

The calculated value is greater than the table value. So null hypothesis is rejected. Hence, there is no significant relationship between age and special features in the cinthol soap. Suggestions

Some of the respondents need modifications in cinthol soap.so,the company shall be implement that.

The company may concentrate more in fragrance, colours and lather of cinthol soap.

Awareness of brand loyalty customer may be created among illiterate customers through more advertisements.

Most of the consumer purchase the products from retail and departmental stores and therefore sales can be focused in rural area to attract the consumers.

The company can increase sales promotion techniques as it would lead to earn more profit.

Conclusion

A brand plays an important role in improving and maintaining product quality.It is a powerful strategy which is directly related to product

strategy.True brand loyalty exists when customers have a high relative attitude towards the brand which is then exhibits through repurchase behaviour.Brand loyalty is viewed as multidimensional constract. Customers perceived value, brand trust, customer’s satisfaction, repeat purchase behaviour and commitment are found to be the key influencing factors of brand loyalty. The cinthol company has always been innovating its advertising campaigns which has helped the company to get good position in the market.So, it leads to increase the sales which may tend to increase the profit of the company. These products can be made more popular and acceptable among the people.

Brand loyalty is important for an organisation to ensure that its product is kept in the minds of consumers and prevent them from switching to other brands. The research showed that it was not easy to obtain and maintain consumer loyalty for a company’s product because there were many forces drawing consumers away such as competition, consumer’s thirst for variety etc. Some consumers will became brand loyal even when there is no discriminable difference between brands other than the brand itself. Consumers vary greatly in their susceptibility to brand loyalty.

Brand loyalty and preference for particular product characteristics are quite different considerations that together make up what is normally referred to as brand loyalty. Further research may wish to investigate brand loyalty through longitudinal studies. References:- Wong foong yee and yahyah sidek (2008), “Influence of brand loyalty on consumer sports wear”, Universiti Putra Malaysia. Journal of Economics and Management, Pp 221-236. Fan Moller Fensen, Torben Hansel, “An Empirical Examination of Brand Loyalty”. Pp 442-449. Day, G.S (1969), “A Two – Dimensional Concept of Brand Loyalty”, Journal of Advertising Research; Vol-9, Pp 29-35. Jacoby, J. (1971), “A Model of Multibrand Loyalty”, Journal of Advertising Research, Vol-11, Pp 25-31. Buzzell, R.D., Gale, B.T and Sultan, R.G.M (1975), “Market Share- A key to Profitability”, Harvard Business Review, Vol-53, Pp 97-106. Pendse Priyanke Narendra and M.D.Lawrence (2014), “ An assessment of the importance of customer satisfaction in FMCG products and its Impact on Brand Loyalty”, Indian Streams Research Journal, Vol-3, Issue-12. Websities: www.brand loyalty. Com www.google .co.in www.businessdictionary.com

http://www.businessdictionary.com/



A STUDY ON PROBLEM AND PROSPECT OF SALT WORKER IN THOOTHUKUDI DISTRICT

*Dr.S.Rosita ____________________________________________________________________________________________________ *Assistant Professor, Department of Commerce, Madurai Kamaraj University, Madurai.

Abstract

. Salt industry in Tamilnadu is labour intensive sector, because it provides more employment to rural agricultural surplus labour force. Salt manufacturing is one of the oldest non-agricultural activities on the coastal tracts of Tamilnadu. In the salt production Tamilnadu is standing next to Gujarat. Gujarat produces 65 percentage of the salt, 20 percentages of the salt from Tamilnadu and the rest from other coastal states. Salt is existent in all animal and vegetable life and is coeval with life itself. It must have been present in the first herbage that gave nourishment to the first beast. Cakes of salt have been used as money in Abyssinia and in some other parts of Africa. The Sanskrit word for salt is “lavana” to which ‘Nun’, the common Punjabi word for salt, owes its origin, substrata, the father of Indian medicine, speaks of four kinds of salts which respond with rock salt, salt, lake salt and earth salt respectively. Egyptians salted ducks, quails and sardines, they also preserved the boiling of salt of their illustrious dead (Egyptian mummies) in salt. The most of the salt workers are affected by many problems like the feet becomes septic and they absorb the salt. Nobody lives more than 60 or 70 years. The workers hair will be fall down quickly and the like. Most of the people are affected by blindness. It was caused by the intense reflection of the sun from water surface. Key Words: Salt working condition, Problem of worker, finding, suggestion.

Introduction

India is the third largest salt producing country in the World after China and USA with global annual production being about 230 million tonnes. The growth and achievement of salt industry over the last 60 years has been spectacular. When India attained independence in 1947, salt was being imported from the United Kingdom &Aden’s to meet its domestic requirement. But today it has not only achieved self-sufficiency in production of salt to meet its domestic requirement but also in a position of exporting surplus salt to foreign countries in Thoothukudi. In a very short period of time sufficiency was achieved (in 1953) and made a dent the export market. Since then, the country has never resorted to imports.

Among India's states, Gujarat is the largest manufacturer of salt, accounting for 70 per cent of the country's output. In Gujarat, the cost of production is only Rs 150 per tonne, compared to Rs 450 per tonne in Tuticorin. In 2012, the total salt production in Thoothukudi district was around 2.1 million tonnes. This salt was produced across 25,000 acres from various parts of the district. Last year, production had increased 31 per cent over output in 2011, which was 1.5-1.6 million tonnes. "In 2013, the Thoothukudi salt industry will at the most produce 1.7-1.8 million tonnes," a drop of around 14 per cent. The district administration had sent a notice asking farmers to stop salt production in 1,000 acres of land, which would lead to a drop in output of 80,000-100,000 tonnes . The salt pans produce 12 lakh tonnes of salt every year, contributing to 90% of the salt produced. Statement of the Problem

In the present study the following problems are to the salt workers. The most of the workers are affected by the high blood pressure, which were occupationally exposed to sodium chloride particles in the air of the breathing zone.

The most of the salt workers are affected by many problems like the feet becomes septic and they absorb the salt. Nobody lives more than 60 or 70 years. The workers hair will be fall down quickly and the like. Most of the people are affected by blindness. It was caused by the intense reflection of the sun from water surface. Even after death of the salt plan workers suffer ignorable fate, their hands and feet are difficult to burn during cremation because of the salt content. These are the some problems to the salt workers. Objectives of the study The following are the objectives of the present study

i. To identify the workers in the salt plans. ii. To know the detailed process about the salt

workers. iii. To study on public perception towards the

salt workers iv. To present the summary of finding offer

various suggestion and conclusion Null Hypothesis

H0: Family size of the salt workers does not influence the level of satisfaction H1: Family size of the salt workers influence the level of satisfaction Sample Design

The study area namely Thoothukudi district has ten salt plant area namely Veppalodai, Kayalpattinam, Vaipar, Palayakal, Urani, Muthayapuram, Punnakayal, Arasady, Srivaikuntam and Vattanam. Out of ten salt plant area fifteen respondent were selected of each plant area by adopting convenient sampling method. Table 1 shows the sample selected of the study area. It is seen from the Table 1 that a total of 150 respondents were identified fare this study consisting of 50 each flow the 10 salt plant area in Thoothukudi district.

Frame work of analysis

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In order to study the salt worker in Thoothukudi district the research has identify various statistical tools namely Garrett rank ,chi- squares test are described. Chi-squares=∑ (O-E)2/E

With (R-1)(c-1) degree of freedom Garrett Ranking Per cent position = 100(Rij-0.5)/Nij

THE RESULT OF THE GARRETT’ RANKING Source: Primary data It is inferred from Table 4.28 that the greater proportion of the worker are induced to use the problem of salt workers heavy work in the first position, Second to six rank are allotted to the problem no wear safe guard , Exposure to sun light, Low wages, Medical facility, Rest room facility. CHI SQUARE ANALYSIS INCOME OF THE WORKER AND THEIR LEVEL OF SATISFACTION

Degree of freedom = 4 Level of significant = 5% Calculated Value = 23.60 Table value at 5 Percent level = 9.49 The calculated value is much greater than the table value then hypothesis is rejected, hence it is concluded that there is different in annual income. FINDINGS The study clear that 38 per cent of the workers belong to the age group of 41to 50 years, The study inferred that 97(64.6%) of the workers are male category. The study shows that 82 per cent are married. The study clear that 88 (58.67%) Respondent are Hindu. The study inferred

that 43.33 per cent of the worker are primary level. The study clear that 61(40.61%) of the respondent earn income of above Rs.50,000. The study inferred that the 69.33 percent of the respondents are in nuclear family. The study clear that 55.33 per cent have their family with 5-7 members categories. The study clear that 69.33 per cent of they are living in the owned house. The study shows that 60.67 per cent of the respondents say that the employment duration is 4-6 months. The study clear that 56 (37.33%) respondents are working in turning salt. The study clear that 48.67 per cent of they are using the well brine. The study shows that 57 (38.00%) of the respondents using the diesel engine. The study clear that 38.00per cent of the respondents are 11-15 years. The study inferred th61.33% of the respondents engaged the other worker. The study clear that 56.67% of the respondents are working 8 hours. The study inferred that 102 (68.00%) of the respondents are satisfied the work. The study clear that 28 (58 .33) per cent of the respondents are not satisfied due to painful work. The study inferred that 44.54% of the respondents buying the non-monitories. The study clear that (50.67%) of the respondents opinion is to want no basic facilities. The study shows that 64% of the respondents are say that they bought a weekly wage. The study

clear that 67 (44.67%) of the respondents are not

satisfied with their wage. The study shows that 34.67% of the respondents are affected by the leg pain. The study clear that 84(56%) of the respondents says that the work is affected by the seasonal variation. The study clear that 44.67 per cent of the respondent say that the disease. The study inferred that 90% are getting bonus from the employer. The study clear that 37.33% of the sample respondent are saving their money. The study cl ear that the greater proportion of the worker are induced to use the problem of salt workers heavy work. The study inferred that 14 respondents are high level and out of 62 respondent. The study clear that 30 respondent are medium level. The study clear that out of 53 respondent are illiterate category 14 respondent are high level. The study shows that out of 55 respondent are above 50000 category 17 respondent are high level. The study clear that out of 58 respondent are 3-5 member, 13 respondent are high level Suggestions

From the data analysis made, some of the suggestions have been given to the salt workers to create more prospects in the succeeding year. Like agriculture salt industries also require free electricity. The government should come forward

S.No Problems

Rank given by the workers Garrett’s rank Mean

Rank

I II III IV V VI

1 Heavy work 34 31 36 23 12 14 77 1

2 No wear safe guard 5 26 22 25 36 36 63 2

3 Exposure to sun light 26 22 8 43 30 30 54 3

4 Low wages 68 32 34 8 8 8 46 4

5 Medical facility 11 23 41 17 12 12 36 5

6 Rest room facility 6 16 9 34 50 50 23 6



to provide electricity facilities to the Salt Production. The government should not encourage the real estate business in and around the salt plan areas. The labourers in salt industries should also be considered as agriculture workers. They should be provided with the sufficient concession like agriculture workers. Social awareness programmed, medical camps and eye camps can be organized by the social workers along with employers of salt industries for the benefit of these workers in the study area. Due to globalization policy of the government the traditional salt industries are also affected much. They incur high cost of production and producer low quantity. Therefore the government should impose more tax on foreign salt products (or) help the salt producer to modernize the salt products. The central government should allow the sales of both iodized and common salt through fair price shops and other common shops. Salt production in this area store the salt plan in open place covering with the palm leaves, Heavy rain leads to waste of the stored salt. It makes heavy loss to the producer. So the government should established the modern storage facility or should give a financial assistance to construct a modern wear housing facilities to protect the welfare of the labor of the government should make some alternative job opportunities during the rainy season. Give free education to the salt workers children. It will be very useful to improve the life of salt workers. Salt workers did not have basic facilities in the work spot. If the owners of the salt plan arranged basic facilities to the workers they will be highly satisfied. The services of the customer care should be prompt in order to avoid inconvenience of the salt workers. The government should strictly order to wear the safety measures. A considerable amount from their income must be taken as savings and it will be provided to them in the old age it will be very useful in the future. The Government Insurance Company should provide Insurance facilities to the Salt Workers. Modernize

salt industry without marginalizing small scale salt units standardize the production techniques. Improve the power supply. There should be a mutual friendly and cordial relationship between the owners and the salt workers. Most of the respondents are affected by the eye problem, so all the workers will be wear sun glass during the work. It will protect the eyes. These are the suggestion to improve the life of the salt workers. Conclusion

Salt industry is a labour intensive sector in the Thoothukudi district in Tamilnadu. Both male and females are engaged in the salt producing activity. However the working conditions of the workers in their area are not by far. This is caused by the wage is not equal to the working hours. The job security is paramount important motivational measure but in this area there is no job security given to the salt workers. They are mere agricultural coolies. It should be take in to account of labour welfare department. Other welfare measure is also not sufficient to the workers expectation. Some of the significant factors are lack of reasonable price high electricity tariff content of water competition of Gujarat salt etc. therefore the conditions of the salt workers in Thoothukudi district are poor. Their living conditions should be improved.

Reference 1.Dr.H.Sammaiah and H.Madhavi “Rights of unorganized women workers”social welfare vol 52 no :2 may 2005 P.P .3 -6. 2.Haque 10 issues “ concerning employment of women in south Asia” labour employment and human development in south Asia BR publicity corporation for institute for human development. 3.Nirmala Banerjee “Women workers in the unorganized sectors” the Calcutta experience sangham books Pvt.Ltd Hyderabad 1985.

4. Salt department, Thoothukudi.



A STUDY ON KNOWLEDGE MANAGEMENT “WITH SPECIAL REFERENCE TO FARIDA, CLASSIC SHOES PVT

LTD, AMBUR” *G.Bhavani

____________________________________________________________________________________________________

*Assistant Professor of Commerce, D.K.M. College for Women (Autonomous), Sainathapuram, Vellore-632001.

Abstract In the present Era Knowledge Management (KM) has become a buzzword to sustain in the long run for organization. Knowledge management is the systematic management of an organization’s knowledge assets for the purpose of creating value and meeting tactical & strategic requirements. Organizations over the years have tried to develop various tools to manage knowledge effectively. In this paper highlights the various ways in which the Knowledge management is effectively using knowledge of the employees in Farida Classic Shoes Pvt Ltd Ambur. Key Word: Knowledge Management, PDCA.

Introduction

Knowledge management simply means to manage the ideas, knowing the subject matter clearly and sharing the knowledge among sub-ordinates. Knowledge management is a systematic approach of set guidelines in which data is collected, accumulated and made easily available to all seeking knowledge. Knowledge management is getting the right information to right people at the right time. Effective knowledge management involves the creation, capturing, sharing, implementing and exploitation of knowledge. Meaning Knowledge management is the systematic management of an organization's knowledge assets for the purpose of creating value and meeting tactical & strategic requirements; it consists of the initiatives, processes, strategies, and systems that sustain and enhance the storage, assessment, sharing, refinement, and creation of knowledge. Knowledge management therefore implies a strong tie to organizational goals and strategy, and it involves the management of knowledge that is useful for some purpose and which creates value for the organization. Characteristics of knowledge Management 1. Knowledge movement is pervasive: whether it

is defined in terms of learning, intellectual capital, knowledge assets, intelligence, know-how, insight or wisdom, the conclusion is the same: manage it or perish:

2. The knowledge phenomenon must be managed and not left to serendipity:

3. Organizations need to develop tools, techniques, mechanism to measure the un measurable intellectual capability:

4. Effective knowledge management helps in harnessing and exploiting intellectual capital to gain competitive advantage:

5. Knowledge must be formalized , or made explicit, to have significant value to an organization:

For the organization, Knowledge management:

(Source: WWW.google.com) Some critical Knowledge management challenges are to manage content effectively, facilitate collaboration, help knowledge workers connect, find experts, and help the organization to learn to make decisions based on complete, valid, and well-interpreted data, information, and knowledge. Knowledge Management These technologies roughly correlate to four main stages of the Knowledge management life cycle: 1. Knowledge is acquired or captured using

intranets, extranets, groupware, web conferencing, and document management systems.

2. An organizational memory is formed by refining, organizing, and storing knowledge using structured repositories such as data warehouses.

3. Knowledge is distributed through education, training programs, automated knowledge based systems, expert networks.

4. Knowledge is Applied or leveraged for further learning and innovation via mining of the organizational memory and the application of expert systems such as decision support systems.

All of these stages are enhanced by effective workflow and project management. Scope of the study:

This project is to study of the knowledge management provide to the employees and

Communities

Content Containers

http://www.knowledge-management-tools.net/



evaluate the knowledge and performance of employee in their work place.

There are various types of knowledge that are given to the employees in organization.

The research finds out the tacit and explicit knowledge provided by the organization. This research study also helps to find the employee benefits of the concern through the knowledge maintained by the organization.

This research study helps to find out the motivation level of the employees, that is the researcher finds out how the employees are motivated through the knowledge benefits at Farida Classic shoes –Ambur.

Objective of the study: 1. To study the concept of “knowledge

management in general”. 2. To study the level of motivation of employees

after implementing Knowledge Management technique.

3. To analyze the performance level of employees after providing Knowledge Management techniques.

4. To analyze the components of Knowledge Management Implemented in Farida classic Shoes Company Pvt Ltd-Ambur.

5. To suggest various measures for better improvement in future.

Limitation of the study

The information are collected only through questionnaires.

Farida company is a private sector organization. All the files, journals and reports cannot be used as secondary sources, because those are confidential matters but to some extent the researcher has used certain journals and reports as a means of secondary sources for data collection.

Time limit is considered as a major limitation, the time period for the study is very limited.


Knowledge management is and what relevance it has to organizations and the people who work in or with them. Taking a broad definition of knowledge, it raises a number of questions concerning knowledge management as a source of competitive advantage and questions our conceptualization of ‘knowledge’. We provide a brief review of the field and raise a number of challenges for managers. From this emerges an agenda for the development of action-orientated goals for managers, organizations and networks of organizations.

Knowledge Management: A Strategic Agenda Paul Quintas, Paul Lefrere, Geoff Jones, Long Range Planning Vol-30, Issue 3, June 1997, Pp 385-391.

Knowledge management came for some as the proverbial bolt from the blue. This paper traces the history of knowledge management from its modest beginnings in the early/mid eighties to its current status. It shows that knowledge management is, to a certain extent, the logical next step in a sequence of societal developments that has already been going on for a very long time. The likely future of knowledge management is explored along four perspectives: the management practices perspective, the information technology perspective, the organizational efforts perspective and the development, supply and adoption rate perspective. Knowledge Management: Where did it come from and where will it go, Karl M. Wiig, Expert Systems with Applications Vol-13, Issue -1, July 1997, Pp 1-14.

Carrying out knowledge management effectively requires support from a repertoire of methods, techniques and tools. This paper provides a selection of those methods. They are described according to a conceptual framework that sees knowledge management as consisting of four activities that are performed sequentially. These activities are review, conceptualize, reflect and act. For each activity some methods are discussed while additional ones are referred to in the existing literature. Supporting Knowledge Management: A Selection of Methods and Techniques, Karl M. Wiig, Robert De Hoog, Rob Van Der Spek, Expert Systems with Applications Vol-13, Issue -1, July 1997, Pp 15-27.

Research methodology:

Research Approach : For gathering primary data, secondary data was used.

Research Instrument : A research questionnaire consisting of a set of questions was presented to the respondents to know a study on knowledge

management “with special reference to farida, classic shoes Pvt ltd, ambur” Questionnaire design : The questionnaire was prepared with likert 3-point scale. Sampling Survey Sample unit : Employees in Farida, classic Shoes PVT LTD, Ambur. Sample size : 50 Sample procedure : Simple Random Sampling. Time period of the study: Sep 2014



HYPOTHESIS TESTING Table -1

THE ORGANIZATION TO MOTIVATE THE EMPLOYEES D

eg

ree

of

Ra

tin

g

Experience (Years)

0-3

y

ea

r

s 3-5

ye

ar

s 5-1

0

ye

ar

s Ab

o

ve

1

0

ye

ar

s To

ta

l

Significant level N o . o f R e s p o n d e n t s %

N o . o f R e s p o n d e n t s %




Strongly agree

28 84.8 38 77.6 9 50.5 0 0 75 75.0

0.059 Agree 4 12.1 8 16.3 8 44.4 0 0 20 20.0

Disagree 1 3.0 3 6.1 1 5.6 0 0 5 5.0

Total 33 100 49 100 18 100 0 0 100 100

Sources: SPSS Package version 19.0 Null Hypothesis:

(HO) There is no significant difference between their organization to motivate the employees. Alternative Hypothesis (H1) There is a significant difference between their organization to motivate the employees. Inference: The P. Value 0.059 is greater than 0.05 at 5% significant level. So the null hypothesis is accepted. Hence it is concluded that there is no significant relationship between the organization to motivate the employees, based on the experience.

Table -2 THE ORGANIZATION CAN FOLLOW THE PLAN DO CHECK ACTION

De

gre

e

of

Ra

tin

g Experience (Years) 0 - 3 y e a r s 3 - 5 y e a r s 5 - 1 0 y e a r s A b o v e 1 0 y e a r s T o t a l

Significant level N

o

. o

f

Re

sp on

de

nts

%

N

o.

of

Re

sp on

de

nts

%

N

o

. o

f

Re

sp on

de

nts

%

N

o

. o

f

Re

sp on

de

nts

%

N

o

. o

f

Re

sp on

de

nts

%

Strongly agree

29 87.9 42 85.7 14 77.8 0 0 85 85.0

0.616 Agree 4 12.1 7 14.3 4 22.2 0 0 15 15.0

Disagree 0 0 0 0 0 0 0 0 0 0

Total 33 100 49 100 18 100 0 0 100 100

Sources: SPSS Package version 19.0 Null Hypothesis: (HO) There is no significant difference between their organization can follow the Plan Do Check Action. Alternative Hypothesis: (H1) There is a significant difference between their organization can follow the Plan Do Check Action. Inference:

The P. Value 0.616 is greater than 0.05 at 5% significant level. So the null hypothesis is accepted. Hence it is concluded that there is no significant relationship between the organization can follow the PLAN DO CHECK ACTION method, based on the experience.

Table -3 TRANSFERRING THE RIGHT INFORMATION TO RIGHT PEOPLE AT RIGHT TIME

De

gre

e

of

Ra

tin

g Experience (Years) 0 - 3 y e a r s 3 - 5 y e a r s 5 - 1 0 y e a r s A b o v e 1 0 y e a r s T o t a l

Significant level N

o

. o

f

Re

spo

nd

en

t

s %

No

. o

f

Re

spo

nd

en

t

s %

No

. o

f

Re

spo

nd

en

ts %

N

o

. o

f R

e

spo

nd

en

ts %

N

o

. o

f R

e

spo

nd

en

ts %

Strongly agree

30 90.9 41 83.7 13 72.2 0 0 84 84.0 0.449

Agree 2 6.1 5 10.2 4 22.2 0 0 11 11.0



Disagree 1 3 3 6.1 1 5.6 0 0 5 5.0

Total 33 100 49 100 18 100 0 0 100 100

Sources: SPSS Package version 19.0 Null Hypothesis: (HO) There is no significant difference between the organization transferring the right information to right people at the right time. Alternative Hypothesis: (H1) There is a significant difference between the organization transferring the right information to right people at the right time. Inference: The P. Value 0.449 is greater than 0.05 at 5% significant level. So the null hypothesis is accepted. Hence it is concluded that there is no significant relationship between the organization transferring the right information to right people at the right time, based on the experience.

Table -4

EMPLOYEES HAVE RIGHT TO VISIT AND ACCESS KNOWLEDGE MAANGEMET SERVICE

De

gre

e

of

Ra

tin

g

Experience (Years) 0 - 3 y e a r s 3 - 5 y e a r s 5 - 1 0 y e a r s A b o v e 1 0 y e a r s T o t a l

Significant level N

o.

of

Re

s

po

n

de

nt

s %

No

. o

f

Re

s

po

n

de

nt

s %

No

. o

f

Re

s

po

n

de

nt

s %

No

. o

f

Re

s

po

n

de

nt

s %

No

. o

f

Re

s

po

n

de

nt

s %

Strongly agree

28 84.8 38 77.6 9 50.0 0 0 75 75.0

0.093 Agree 4 12.1 9 18.4 7 38.9 0 0 20 20

Disagree 1 3 2 4.1 2 11.1 0 0 5 5

Total 33 100 49 100 18 100 0 0 100 100

Sources: SPSS Package version 19.0 Null Hypothesis:

(HO) There is no significant difference between their employees have right to visit and access knowledge management service. Alternative Hypothesis: (H1) There is a significant difference between their employees have right to visit and access knowledge management service. Inference: The P. Value 0.093 is greater than 0.05 at 5% significant level. So the null hypothesis is accepted. Hence it is concluded that there is no significant relationship between the employees have right to visit and access knowledge management service, based on the experience. Findings Main findings H1 THE ORGANIZATION TO MOTIVATE THE EMPLOYEES

It is found that 75% of the respondents strongly agree that the organization to motivate the employees, 20% of the respondents agree and 5% are disagree. H2 THE ORGANIZATION CAN FOLLOW THE PLAN DO CHECK ACTION METHOD. It found that 85% of the respondents strongly agree that the organization can follow the plan do check action method, 15% of the respondents agree.

H3 TRANSFORING THE RIGHT INFORMATION TO RIGHT PEOPLE AT RIGHT TIME.

It is found that 84% of the respondents strongly agree that transforing the right information to right people at right time, 11% of the respondents agree and 5% are disagree. H4 THE EMPLOYEES HAVE RIGHT TO VISIT AND ACCESS KNOWLEDGE MANAGEMENT SERVICE.

It is found that 75% of the respondents strongly agree that the employees have right to visit and access knowledge management service, 20% of the respondents agree and 5% are disagree. Suggestions

It is suggested that the following key attributes of knowledge management may took part of a integral activity of employees at farida classic shoes. They are as follows:

Generating new knowledge. Accessing valuable knowledge from outside

sources. Embedding knowledge in process,

products/services. Representing knowledge in documents,

databases and software.

The organization may well plan do check action effectively which may helps to attain the target in an effective manner.



The organization can develop a profession code of ethics that member can adhere to work ethically in the organization.

It is suggested that the organization facilitates more effective networking and collaboration with other developed organization.

The organization may strives to give orientation and training to the employees which may help them to update their knowledge as effectively as possible.

Conclusion

Knowledge management involves the creation, capturing, sharing, implementing and exploiting the knowledge in an efficient manner. Sustain a competitive advantage related to knowledge management recently that knowledge dependent on people and that human resource management issues, such as recruitment and selection, education and development, performance management, pay and reward, as well as the creation of a culture are vital for managing knowledge with in the firms. Thus, the knowledge management implies a strong tie to organizational goals and strategy which may creates the value for the organization programs.

We concluded that knowledge management is the discipline of enabling individuals, teams and entire organization to collectively and systematically work together which helps to attain the organizational objectives. Bibliography Ahn.J.H, and Chang S.G. (2004), Assessing the

contribution of knowledge to business performance: the KP3 methodology; Decision support systems, no.36, pp 403-416.

Ak.Haven, P., Jafari, M., and Fathian, M., Exploring failure- factors of implementing knowledge management systems in organization; Journal of knowledge management, practice, [electronic] vol-6, may (2005), pp 1-8 available;

AL-Hakim, L.A.Y. and Hassan, S. (2011), the role of middle management in management implementation for innovation enhacement innovation, management and technology, vol-2, no.1, pp 86-94.

Altaher, A.M (2010, knowledge management process implementation 2011; international journal of digital society.

Baren. A.(2011), skills for knowledge management leaders retrieve of 12 october 2012.

Knowledge management S’Jawadekar. Knowledge management Sudhir warier. Knowledge management Donald hislop oxford (second

edition). Knowledge management ELIAS M.Awad and Hassan

Ghaziri.



THE ROLE OF CENTRAL GOVERNMENT, BANKS AND NGOs IN PROMOTING SHGs IN INDIA FOR WOMEN EMPOWERMENT

*Dr.L.Kesavan ** Mrs.B.Kavitha

____________________________________________________________________________________________________*Assistant professor, P G & Research Dept of Commerce, Kandaswamy Kandar’s College, P.Velur, Namakkal **Assistant professor, P G & Research Dept of Commerce, Kandaswamy Kandar’s College, P.Velur, Namakkal

Abstract

In India a number of micro-credit schemes have been introduced, first in form of cooperatives and later in form of loan melas for rural financing. Targeting women -specific programmes however started much later mainly by NGOs such as SEWA, PRADAN, MYRADA etc. The Government later entered this arena through Rashtriya Mahila Kosh, Indira Mahila Yojana, STEP and through NABARD. Of late the Rural Women's Development and Empowerment Project known as 'Swashakti' has reached a take off stage in nine States by involving NGOs fully for its delivery of various components of the Project leading to holistic empowerment of women, by making them stakeholders along with the State Government Departments, Banks and beneficiaries. The main object of this paper is to summarise the measures taken by the central government, Banks and NGOs, to a possible extent, in promoting WSHGs in India for women empowerment. Keywords: Self help groups, Central government Banks , NGOs, Women Empowerment

Introduction A self-help group (SHG) is a village-

based financial intermediary committee usually composed of 10–20 local women or men. A mixed group is generally not preferred. Most self-help groups are located in India, though SHGs can also be found in other countries, especially in South Asia and Southeast Asia. Members make small regular savings contributions over a few months until there is enough capital in the group to begin lending. Funds may then be lent back to the members or to others in the village for any purpose. In India, many SHG's are 'linked' to banks for the delivery of micro-credit.

I Government as a Shpi

As in all developing countries, in India development was considered to be the Government's responsibility and it started several subsidy-linked credit programmes, where it had a major role right from the stage of identifying of the borrowers to the disbursement of credit and subsidy. The results of these programmes were not positive. Experience has shown that the non-involvement of the people has led to an attitude of total dependence on administrative efforts. This was especially true in credit programmes for the rural poor. To overcome this, government started adopting participatory approaches to rural development, particularly the SHG approach. The entry of the government into the self-help group movement was through the Rashtriya Mahila Kosh, which started funding NGOs for forming and nurturing SHGs. Later, the Indira Mahila Yojana came into existence, which also facilitated the group formation and nurturing process.

In India a number of micro-credit schemes have been introduced, first in form of cooperatives and later in form of loan melas for rural financing. Targeting women -specific programmes however started much later mainly by NGOs such as SEWA, PRADAN, MYRADA etc.

The Government later entered this arena through Rashtriya Mahila Kosh, Indira Mahila Yojana, STEP and through NABARD. Of late the Rural Women's Development and Empowerment Project known as 'Swashakti' has reached a take off stage in nine States by involving NGOs fully for its delivery of various components of the Project leading to holistic empowerment of women, by making them stakeholders along with the State Government Departments, Banks and beneficiaries.

DWCRA Groups

Group with a maximum members of 15 women are formed by the Department of Rural Development under the Development of Women and Children in Rural Areas (DWCRA) scheme. Thrift is used an important point for entry and micro financing among members. The scheme focuses on organization of women into groups to foster a collective approach to their problems and to enhance their bargaining power. These organised women pull many of the Government programmes into their respective villages for their benefit.

SGSY Scheme

Swaranjayanthi Gram Swarozgar Yojana (SGSY) is a modified version of IRDP with a focus on group approach. Cost of group formation and development is met from SGSY funds amounting to Rs.I0, 000 per group over a period of 3- 4 years. Grading of groups is done once in six months to ascertain their status of performance and corrective capacity building is undertaken. Assistance for economic activities is given through bank loan-cum- scheme subsidy to individuals in groups as well as to groups. Anganwadi groups

These groups are formed by the Department of Women and Welfare at the habitation level for implementing health, nutrition, and literacy programmes for women. Micro finance is extended to the members for taking up income



generating activities as individual or as group enterprises. Joint forest management groups

Village communities in notified forest areas are formed into Vana Samrakshana Samithis (VSS) to conserve forest wealth. Social mobilisation through the SHG route is being achieved under this programme. Village communities are exhorted to take up alternative income generating activities.

Watershed management groups

Farmers in the watershed areas are formed into groups for implementing improved techniques of watershed development with the intervention of a facilitating agency, normally an NGO. While on-farm development activities are funded through grant support these groups are also encouraged to take up microfinance, with thrift as an entry point activity. Rashtriya Mahila Kosh groups (RMK groups)

These are groups formed by NGOs and funded by RMK, a fund set up by the Government of India for associating women to undertake income-generating activities. Credit is extended to individual women in the group mode. Kudumbashree Project

The project is launched by the Government of Kerala with the active support of the Government of India and NABARD for wiping out absolute poverty from the state within a period of 10 years. This project aims at combining the Self Help Group approach with demand led convergence of available services and resources to tackle the multiple dimension and manifestation of poverty holistically. The project is implemented through Community based organisations. This project is based on the successful experience of the Alapuzha model (a district in Kerala) of poverty alleviation with community participation, which won the UN Award at the 50th Anniversary of UN at New York in 1995.

SJSRY (Swarna Jayanthi Shahari Rozgar Yojana)

SJSRY is an anti-poverty programme launched by the Government of India for eradicating absolute poverty from urban areas. The community development structure provides the channel for the delivery system of the scheme. The scheme has two sub components -Urban Self Employment Programme (USEP) and Development of Women and Children in Urban Area (DWCUA). DWCUA helps urban poor women in setting up gainful employment through group activity.

II.BANKS AS A SHPI

Among the formal institutions, next to Government, Banks play a major role as Self-Help promotion institutions in India. For several years, since the nationalization of the commercial banks,

there has been a commitment at the highest policy levels, towards improving access to financial services for the poor. Several policy measures have also been in force to ensure this, such as the allocation of committed bank funds to small loans (priority sector banking), subsidized interest rates (ranging from 4% to 10%) for micro loans, and the opening of small rural bank branches. Hence, the banking system in India has always been involved in microfinance as a special area of their operation.

At the operational level, this policy

commitment has been implemented usually by linking bank credit to a targeted programme of the Government of India. The Integrated Rural Development Programme (IRDP) was a typical example. Based on this programme, several projects of the government of India has had a strong microfinance component either through the banks or through Government-established financial institutions. A further institutional focus was given to rural lending through small loans by establishing the regional rural banks in 1975. The SHG linkage programme is located in this national policy and institutional context, where there is a vast network of primary lending institutions to deliver microfinance on the one hand, and an apex national level institution, namely NABARD, to provide policy support and refinance on the other.

Banks have been slow in entering the field

of microfinance from the angle of both promoter as well as lender, In general, banking institutions have treated the formation and promotion of SHGs as an activity which is strictly for voluntary agencies or non governmental organizations and not for mainstream commercial bankers. But the problem in India is that well-intentioned NGOs, which can take up these activities, are confined to relatively smaller pockets of the country. If the banks see a new opportunity and a new market in microfinance, they cannot always expect a ready-made institution to absorb their lending portfolio. It may be necessary for some banks to take up the work of forming and promoting SHGs on their own if they view it as a profitable market and a profitable business opportunity. Several banks, especially regional rural banks (RRBs), have done a pioneering work in forming, promoting, and later financing SHGs as shown in SHG Bank linkage model – I

In this method, the role of mobilizing and

forming the SHG is taken up by the bank branch itself. There is no NGO facilitation. Although this model is not common, many banks have shown interest in forming SHGs themselves. However, this alternative is fairly unique, as banks do not usually go into social mobilization roles. Irrespective of the quality of the SHGs formed, the weaknesses of this alternative are obvious. The core competency of a banker is finance and not SHG formation, Even if



the SHG formed is for the limited purpose of fund rotation, substantial effort has to be made to form SHGs. Further, SHGs formed only for receiving external funds may not be sustainable. The advantage of this alternative, however, is that it exposes the banker to social realities firsthand. Also, in all the places where NGOs are not operating, some mechanism needs to be found to improve access to microfinance. There are atleast three different SHG-Bank linkage models operational in India. PROGRESS OF SHG BANK LINKAGE IN INDIA

The progress of banks in linking SHG groups to the banking system was quite phenomenal in the last few years. The banks financed 3,61,731 new SHGs in 2003-04, almost 30 percent of the cumulative 1,07,09 financed since 1992.

Bank loans disbursed to SHGs during the year 2003-04 aggregated Rs.1,855 crores, an increase of 82 percent, as compared to Rs.1,022 crores during 2002-03.

By March 2004, of the total SHGs credit linked, Andhra Pradesh accounted for 36 percent, Tamil Nadu 14 percent, Karnataka 10 percent and Uttar Pradesh 7 percent, together accounting for 67 percent of the total SHG credit-linked and 80 percent of the bank loans disbursed. In order to balance the uneven growth of the micro finance programme, NABARD has identified 13 states as priority states.

Of the total number of SHGs linked to banks, 20 percent have been formed and financed by banks, 72 percent formed by Government agencies other than banks and NGOs, but financed by banks and 8 percent financed by banks through NGO and other agencies as financial intermediaries.

The number of banks which participated in partnering NABARD in the SHG bank- linked effort in 2003-04 was 560 of which 48 were commercial banks, 196 were regional rural banks, and 316 were cooperative banks. The number of NGO and other agencies which partnered NABARD was 3024.

III NGOs AS A SHPI

Though Government and banks have played positive roles in the promotion of SHGs, in terms of numbers, the Non-Governmental Organizations (NGOs) rank as the premier SHPIs. NGOs have so far been the main innovators in micro-finance. They have many advantages. Their very name, Non-Governmental, indicates that they are outside the framework of Government. In India, where Governmental systems are fairly rigid and bureaucratic, NGOs are characterized by their

flexibility and ability to evolve simplified work systems.

While a group approach has been a

developmental concept actively pursued by development practitioners for many years, the focused formation of SHGs under the microfinance framework is a relatively a newer concept. It was initiated only in the late eighties by a few NGOs as an exclusive idea. The number of NGOs involved in the formation of microfinance based SHGs has increased many fold in the nineties. Contributing factors in this expansion has been the creation of an enabling environment for this kind of work by several national and international organizations, including multilateral, bilateral, and International NGO donors, plus an encouraging policy environment created by the Government of India and the Reserve Bank of India. The SHG linkage program of NABARD through its widening network of institutions has also contributed to expanding the microfinance-based SHG movement. Because of the expansion of the microfinance-related SHG programme agenda, a wide diversity is observed in the approaches adopted by different agencies. Some NGOs act as banking intermediaries, channeling finance to different SHGs formed and centralizing all the accounts and financial systems at the NGO level. Others have formed collectives of several SHGs together, forming a federation of SHGs, and were linked them up with banks. There is also a fair amount of diversity in the levels of competencies and capacities to manage a microfinance SHG programme within these agencies.

Effectiveness of Self Help Groups in Indian Context

Self Help Groups (SHGs) are fast emerging as a powerful tool of socio-economic empowerment of the poor in our rural areas. The Self-Help Group is a small body formed by the people for meeting their specific objectives, particularly credit. However Local literature shows that Self- Help Groups have been developed for a wide range of populations, including the mentally ill and their families, persons with disabilities and their care-givers etc. SHGs are initially formed on the foundation of the accumulated endowment of bonding social capital already existing in the community. The social capital produced by the SHG as it matures through creation of new ties and linkages, strengthens the community's cooperative capacity to the achievement of group Government. When the SHGs grow they begin to articulate the community demands as they become aware of their rights and therefore attitude of the Government Bureaucratic officials changes and they become more responsive to the needs of the community i.e., with the maturity of SHG the state-society relationship begin to change at the local level towards the better.



In this way, SHGs which were originally

established to produce economic benefits for members eventually became an associational framework for collaborative actions that produce public goods. As a result a range of other community-level organizations emerge where often members of the SHGs are recruited. Role of SHGs in strengthening local governance and political democracy can be described by the fact that a number of SHGs members are being elected in the Panchayti Raj system in India, the lowest tier of local democratic governance.

The working group (RBI, 1996) has commented the progress of SHGs, In India as follows : 1. SHGs helped to generate and collect small

thrift amounts from a cross section of people hitherto considered incapable of saving. The essential difference between thrift and savings was that while thrift was generated out of deferred consumption, the savings were generated out of surplus.

2. SHGs have facilitated the rural poor in fulfilling their credit requirements, both for emergent consumption needs as well as for small production requirements.

3. SHGs have been able to meet successfully the

credit requirements of the rural poor as per their choice, unlike in the case of borrowing under other programmes of formal credit institutions.

4. The high recovery rates of the SHGs are in sharp contrast to the poor recovery performance of banks in respect of various activities under rural credit. Since credit/finance was seen as management of the participants own funds and enterprises, a feeling of ownership and responsibility was generated.

5. The entire cycle of assessing need, disbursement, recovery, monitoring, and supervision shifted closer to the scene of action under SHGs, and therefore the transaction cost of the loans was relatively less.

In Self Help Groups it is assumed that all

poor households need to save and have the inherent capacity to save small amount regularly; easy access to credit is more important than cheap subsidized credit which involves intricate bureaucratic procedures, the poor are the best judge of their credit needs and are good users and re-payers of credit when formed in group. A notable feature of SHG is that before its linkage with any financial institution, credit discipline is imbibed among the member by way of SHG with banks has improved the socio-economic condition of its member by way

of positive impact on income, saving, and self-confidence. The impact is more pronounced in the case of SHGS linked through NGOs. This many other aspects of rural credit delivery system need to be studied in a greater depth. SHGs have proved to be successful in addressing the interests of women in a sustained manner. They are extremely useful in generating savings, ensuring successful delivery of credit to individual women and effecting recovery. In addition, they serve as an ideal mechanism for bringing omen out of their homes, making them more articulate and honing their leadership qualities and their skills as motivators. Women led SHGs in Andhra Pradesh have won laurels for their exemplary performance.

IMPACT OF SHG MOVEMENT IN INDIA:

Various organisations evaluated SHGs including NABARD, NGOs and ORG-Marg. Some of the salient features are.

98% of the members make savings regularly as the norms prescribed by the groups.

All the groups meet atleast once in a month to discuss various social issues related to their day to day life.

98% of eligible members adopt small family norms.

100% children of SHG members are able to access immunization services against the 6 diseases.

30% of the members have access to safe cooking fuels (LPG) under the Government promoted scheme popularly known as "DEEPAM".

80% of the total SHGs have accessed financial assistance from banks and repayment is 98%.

10,000 SHG members were elected to the local bodies (3 term Panchayat Raj Institutions) in 1997 November elections.

Members are engaged in 450 varieties of income generating activities.

Additional family incomes to member range from Rs.1000-3000 per annum depending on the income generating activities.

Increase in self confidence and self esteem

Increase in awareness levels about the society and community. Voluntary participation in community activities like laying roads, planting trees conserving environment, construction of water harvesting structures, donations to the victims of natural calamities helping to reduce crime against girls & women, campaign against eradication of social evils like dowry, child marriages, untouchability, AIDS, rescue and rehabilitation of orphaned children, counseling adolescent girls, support to widows and destitute are a few to mention.

Conclusion The Government of India, Banks and NGOs play an important role in promoting Shags



for women empowerment. The Government promoted SHGs through DWCRA groups, SGSY scheme, Anganwadi groups, Joint Forest Management groups, Watershed management groups, RMK groups, Micro Finance programmes of CAPART, SWA-SHAKTI project, Kudumbashree project, District poverty initiative project and SJSRY. However, these projects are at the initiative of the Government and not with the involvement of participants. The banks in India also played a role in helping the WSHGs by providing loans from 4 % to 10 % under priority sector. By way of IRDP bank credit is linked to SHGs. There are three models of Bank and SHG linkage. Of the total SHGs formed 72 percent by the Government, 20 percent by banks credit and the remaining 8 percent by NGOs. References AIMS (2000), Learning from Clients: Assessment tools for Microfinance Practitioners, The Small Enterprise Education and Promotion (SEEP) Network, Washington, DC.

APMAS (2001), The Study of SHG movement in Cuddapah District. BASIX (n.d.), Promotion of Self-Help Groups ofSmall and Marginal Rural Producers with the Help of Micro Finance Agents (mimeo). Basu, Kishanjit and Krishan Jindal (eds.), (2000), Microfinance: Emerging Challenges, Tata McGraw-Hill, New Delhi. Biswas, Soumen (n.d.), Expanding NGO-SHG-Bank Linkage across the Country - Some Issues & Recommendations (mimeo), PRADAN. . . Das, Biswaroop (2001), Role and Impact of Microfinance on Poor, Friends of Women's World Banking India, Ahmedabad. Dichter, Tom (1999), Case Studies in Microfinance: Non government Organizations in Microfinance: Past, Present and Future – An Essay. Fernandez, Aloysius Prakash (1994), The MYRADA Experience - Alternate Management Systems for Savings and Credit of the Rural Poor, MYRADA, Bangalore. FWWB (1999), India's Emerging Federations of Women's Savings and Credit Groups, Ahmedabad.



PERFORMANCE APPRAISAL BOON OR BANE *Dr.J.Arul Suresh

**C.P.Vijayalakshmi ____________________________________________________________________________________________________

*Assistant Professor , Department of Commerce, Loyola College, Chennai-34 **Ph.D Research Scholar ,Department of Commerce ,Loyola College,Chennai-34

Abstract

Performance Appraisal is the process of assessing the performance and progress of an employee or of a group of employees on a given job and to find their potential for future development. Performance appraisal is widely used in society. Parents evaluate their children, teachers evaluate their students and employers evaluate their employees. Tremendous changes have taken place in the concept, techniques and philosophy of employee appraisal. Now-a-days almost all the companies irrespective of their number of employees follow performance appraisal. The key area of this paper is to bring out the effectiveness of performance appraisal done by small IT companies and to know the impact of the same on the employees. A structured questionnaire was used to get the opinion from a sample of 50 employees. Percentage analysis method has been used to find the interpretation. Suggestions were also drawn from the response given by the employees.

Introduction

Performance Appraisal is a method by which the job performance of an employee is documented and evaluated. A performance appraisal (PA) is also referred to as a performance review, performance evaluation, (career) development discussion or employee appraisal. Performance appraisals are a part of career development and consist of regular reviews of employee performance within organizations. Objectives of the study: 1. To study the effectiveness of performance

appraisal on employees followed by the IT companies.

2. To analyses the opinion of the employees regarding performance appraisal.

3. To identify the impact of performance appraisal to improve the efficiency of employees.

4. To offer suggestive measures to improve the performance appraisal system.

Need for the study Now-a-days, Performance Appraisal is becoming an emerging one for the development of employees as well as organization. But sometime the way of approach by the superior in doing appraisal may have a negative effect among the employees. So this paper is presented to highlight the measures to overcome the problems in performance appraisal followed by the organizations. Limitations of the study:

The study has the following limitations. The researcher has collected data from only 50 employees of IT companies. The other employees have been excluded from the preview of the study. Research Methodology The study was basically conducted on primary data by face to face interview with employees of IT companies. A 12 question questionnaire was used and the sample size is 50. Secondary data such as books, journals, and

websites were also used to collect theoretical information about the Performance Appraisal. Percentage analysis method has been used to find the interpretation. Framework of Analysis The opinion about the employees were analyzed by using appropriate statistical tools like, Percentage Analysis, Review of Literature Performance appraisal is the systematic, periodic and an impartial rating of an employee’s excellence in matters pertaining to his present job and his potential for a better job.(Edwin B.Flippo) In today’s scenario, human resources are to be considered as a very important asset of the company and the importance of human resources is very well known to the organization. The organization should know that the power of human resources is more important than the technical and infrastructure knowhow of the company. The competitors can have a competitive edge by having the command on performance appraisal and management system. It can be said that the viewpoint of organization is to achieve the established goal of the organization and the work force have to compete in this environment. (Dr.Lalita Mishra, February. 2013) The performance evaluation has to be done for every organization and the proper evaluation for the employees is necessary for the better performance of employees within the organization. The human resources are very critical for any organization and the management performance can be improved by the accomplishment of objective of the organization through the performance of employees within the organization. The correct evaluation of the performance of employees can be done by the performance management system and performance evaluation system which can be used effectively in the organization (Stone, 2005). Legally and scientifically, the key requirements of any appraisal system are relevance, sensitivity and reliability. In the context of ongoing operations, the



key requirements are acceptability and practicality (Woehr, D.J., 2008). Performance appraisal actually encompasses two distinct processes: observation and judgment. Managers must observe performance, certainly a representative sample of a employees performance, if they are to be competent to judge its effectiveness (Aguinis, H. 2009). It is the measure of the effectiveness of an individual, a barometer for furtherance of one’s career. An individual’s performance must measure up to the objectives assigned to him. Outstanding performance must be recognized in public (V.G.Kondalkar, Upinder Dhar 1999). Theoretical view on performance appraisal Performance Appraisal is the process of assessing the performance and progress of an employee or of a group of employees on a given job and to find their potential for future development. The aim is not simply to decide salary increments but to develop a rational basis for personnel decisions. Performance appraisal measures what the person does. Importance of Performance Appraisal

1. Performance appraisal provides valuable information for personnel decisions such as pay increases, promotions, demotions, transfers and terminations. Thus, it serves as the basis of suitable personnel policies.

2. It helps to judge the effectiveness of recruitment, selection, placement and orientation systems of the organization.

3. It is useful in analyzing training and development needs. These needs can be assessed because performance appraisal reveals people who require. Further training to remove their weaknesses. It also identifies individuals with high potential who can be groomed up for higher positions.

4. Performance appraisal can be used to improve performance through appropriate feedback and counseling to employees. It serves as a means of telling a subordinate how he is doing and suggesting necessary changes in his knowledge behavior and attitudes.

5. Performance appraisal facilitates human resource planning, career planning and succession planning.

Techniques / methods of performance appraisals:

Numerous methods have been devised to measure the quantity and quality of performance appraisals. Each of the methods is effective for some purposes for some organizations only. None should be dismissed or accepted as appropriate except as they relate to the particular needs of the organization or an employee. Broadly all methods of appraisals can be divided into two different categories. 1. Traditional Methods

2. Modern methods 3. Confidential report, free form, straight ranking,

paired comparisons, forced distribution, graphic rating scales, checklist, critical incidents, group appraisal and field review are the traditional techniques of performance appraisal.

4. Assessment centre, human resource accounting, behaviourally anchored rating scales and MBO are the modern techniques.

Findings 1. Out of 50 respondents half of them were in the

age group between 31 – 40 years, and 80 per cent of them were male.

2. Nearly 70% of respondent accepted that performance appraisal gives motivation factor to them. 20% of them agreed it is a kind of evaluation of employee performance. This result shows that the employees take performance appraisal as a motivational factor.

3. Majority of the respondent responded (50%) that confidential report methods is followed in their organization and 35% of the respondents responded that merit rating method and remaining 15% of them responded that grading system is followed in their organization. This interpretate that many HR managers utilize confidential report method for their performance appraisal.

4. Out of 50 respondents, 60 % of the respondents agreed that the benefit received after performance appraisal is incentive and 40 % of the respondents agreed that the benefit received after performance appraisal is salary increment.

5. Out of 50 respondents, 80 per cent of the respondents accepted that the performance appraisal is related to monetary benefits.

6. As per the survey made 38 per cent of the respondents were strongly disagreed that performance appraisal provide an atmosphere where all are encouraged to share one another burden, followed by 23% of the respondents were disagreed that performance appraisal provide an atmosphere where all are encouraged to share one another burden.

7. Majority of the respondent responded (80%) that the criticisms have not been in a friendly and positive manner.

8. As per the survey made 48 % of the respondents said that they are strongly agreed followed by 41% of the respondents were agreed that performance appraisal improves their performance and it help to change the behaviour of the employees.



Suggestions:

Performance appraisal should be conducted in a friendly manner which will give positive attitude among the employees.

Proper performance feedback can improve the employee's future performance. It also gives him satisfaction and motivation

Providing monetary benefits is one of the best way in which employee is also benefited and employer will get the things done better than before.

Performance appraisal should provide an atmosphere where all are encouraged to share one another burden which will in turn improve the relationship between employees.

Performance appraisal should be conducted not only for the purpose of providing incentives but also it should be a mean to the employee to improve their potentials.

Conclusion

Performance appraisal is one of the best tools in the hands of the HR Manager. If HR Manager conducts the performance appraisal in the positive and friendly manner, surely it reflects in the improvement of performance and the behaviour changes of the employees. Performance appraisal is like a bridge between from where the employees

are and where they want to go (i.e. to achieve their goal). Performance appraisal is a mean for both employer and employee to understand each other. If it is done in a better way, it will create good organizational culture. References

1. Performance appraisal http://en.wikipedia.orgl 2. Dr.Lalita Mishra, “A Research Study on Employee

Appraisal System Case of Hong Kong and Shanghai Banking Corporation”, International Journal of Business and Management Invention ISSN (Online): 2319 – 8028, ISSN (Print): 2319 – 801X www.ijbmi.org Volume 2 Issue 2 ǁ February. 2013ǁ PP.60-67

3. Stone, R, (2005), “Human Resource Management”, 5th edition, John Wiley and Sons, QLD Australia.p 412-414.

4. Woehr, D.J., “What do we really know? Industrial and organizational psychology”, 161-166.

5. Aguinis, H, “Performance Management, 2nd edition”, International Journal of selection and assessment, 7(3), pp: 355-367.

6. V.G.Kondalkar, Upinder Dhar, “Total quality in HRM: An Emerging perspective”, management and labour studies, vol.24, No.2, April 1999.

7. C.B.Gupta, “Human Resource Management”, Sultan & chand, 9th edition, Pp:14.2 -14.26

8. Edwin B.Flippo, “Personal Management”, P.No.-225, C.B.Gupta, “Human Resource Management”, Sultan & chand, 9th edition, Pp:14.2 -14.26

http://en.wikipedia.orgl/



EFFECTIVE TRAINING AND DEVELOPMENT ACTIVITIES IN THIRUBUVANAI AREA

*M. Uma **P. Arul Jothi

____________________________________________________________________________________________________________________________________________

*Asst. Professor, Department of Management Studies, Achariya School of Business & Technology, Puducherry, India. **Department of Management Studies, Achariya School of Business & Technology, Puducherry, India.

Abstract The process of Human Resource Management starts with the planning, for how many and what kind of people will be needed at different points of time in the organization. Therefore, once employees are recruited and selected and placed, the next step in the HRM process is to transform them to meet the future requirements of the organization or to bridge the skill gap. The transformation of employees is done by the means of Training and Development. Keywords: Human Resource Management, Training Benefits, Learning Organization, Education, Development, Knowledge Workers.

Introduction

Training is the process of teaching the new and/or present employees the basic skills they need to effectively perform their jobs. Training is an organized activity aimed at imparting information and/or instructions to improve the recipient’s performance or to help him or her attain a required level of know ledge or skill. The goal of training is to master the knowledge, skill, and behavior emphasized in training and development programs and to apply them to their day-to-day activities. Training is a systematic modification of behavior through learning, which occurs as a result of education, instruction development and planned experience. Thus training increases the knowledge and skill of an employee for doing a particular job.

Training makes a very important contribution to the development of the organization’s human resources and hence to the achievement to its aims and objectives. To achieve its purpose, training needs to be effectively managed so that right training is given to the right people, in the right form, at the right time and at right costs. The term ‘training’ indicates the process involved in improving the aptitudes, skills and abilities of the employees to perform specific jobs. Training helps in updating old talents and developing new ones and thus prevent obsolesce of the Human Resource. Training and development can help a company’s competitiveness by increasing the company’s value through contributing to intangible assets. Like financial assets (cash and securities), physical assets (property, plant, equipment), and intangible assets, Training and development has a direct influence on human and social capital because it affects education, skill work related know-how and competence, and work relationships. Training and development, on a continuous basis, are essential, for gaining a competitive edge. Today’s organizations need to communicate their results to the world. Their public includes customers, employees, creditors, suppliers and the general public. The effectiveness of business activities demands that the managers should possess diverse kills and performance management

abilities. This can be accomplished only through training efforts. Every organization has to do kaizen, i.e. continuous training. Areas of Training

Training has to be provided in different areas as listed below for the benefit of both, the employees and the organization. The main areas of training are: a. Knowledge: Training is aimed at imparting

knowledge to employees providing facts, information and principles related to his/her job.

b. Technical Skills: The training in this area aims at teaching the employees the physical acts or actions like operating a machine, working with a computer, using mathematical tools to take decisions, etc.

c. Social Skills: The training in this area is broader in scope embracing many aspects. This category of training aims at the development of individuals and team work.

d. Techniques: Training in this area involves teaching employees the manner how to apply knowledge and skills to dynamic situations.

e. Experience: It is not and cannot be taught or imparted in the classroom. It is gained by putting knowledge, skills techniques and attitudes into use over a period of time in different work situations.

TYPES OF TRAINING: LOCATION BASED APPROACH

Training can be categorized on the basis of location bases which can be classified in three broad areas:

a. Training at the work place b. Training at Training centers c. Training at organizational or external

centers a. Training at the work place

Training at the work place may be take in variety of forms .In very broadest sense it may be identified with career development and the acquisition of required knowledge, skills and



attitudes from the continuous experience and opportunities provides by work itself. The personnel Department has the key role in the supervision and direction of career paths to enable employees to widen their horizons and to develop their capabilities to assume wider responsibilities. Training at the work place by delegation, job-rotation, attachments, experienced employees or by the use of formal work-place methods such as coaching, open and distance learning. b. Training at Training Centers

Most people are familiar with formal methods of training centers and most organizations have permanent centers or hire accommodation for central training. Training is conducted by full-time training staffs, assisted if necessary by occasional lecturers and tutors. Trainees usually work in groups and the methods commonly employed are lectures, discussion groups, case studies, simulation, role play and exercises of various kinds, supported by films, CCTV, tape-slide projections and other audio-visual aids. Training covers all subjects that are common to groups of employees of similar grades or jobs.

Training at training center is costly and it requires people to leave their places of work, it is necessary and essential for some forms of training, especially in managerial and related subjects. Here residential setting people need to work in groups and to learn from each other in a residential setting. c. Training at organizational or external centers

This method is the combination of work place and central methods, which gives the possibility of having the best of both worlds. The features of this training are: 1) Training is designed by central trainers and

managers, and also subject specialists to ensure that it is work related.

2) Training is designed as a series of separate, but interdependent modules, arranged in the logical sequence and often based on the principles of programmed learning.

3) It is based on the short courses at the center, interspersed with long periods of study at the work place supervised y central trainers and local managerial staff


DR. V.Rama devi, Mr.Nagurvali shaik1 Human capital is the differentiator between a good company and a great company. Effective training and development is an investment in the human resources of an organization, with both immediate and long-range returns. This literature review based article presents different viewpoints of various authors regarding the significance of training & development for employee performance and organizational effectiveness. Obsolescence among

the employees and the need to adapt to the technological, organizational and social changes make continuous learning and updating of skills indispensable for an organization. Firms need to manage training programs more effectively so that they can get the highest returns from their investment. Human capital is an important asset for organizations under intense competition. Training and Development function enables human capital to unleash their dexterity. A profound training program acts as a vehicle to enhance employee skills and enable them to perform better in their job. Training and development is very crucial to the employees, the organization and their effectiveness.

Mousa Masadeh, PhD2 There is much confusion surrounding the terms ‘training’, ‘education’, ‘development’ and ‘learning,’ to the point where they are often used interchangeably. In the context of human resource development, however, it is often necessary to define and delineate each of these in order to clarify the associated activities and desired outcomes within an organization. This paper examines the issue in depth by outlining some of the traditional definitions of these terms and their implications for human resource development, ultimately demonstrating how they are best viewed as interconnected, if separate. Employee training, in particular, is associated with on-the-job skills acquired for a particular role, while education is seen as relating to a more formal academic background. In increasingly complex organizations, it may be argued that aspects of each are necessary to ensure full employee potential.

Dr.Khawaja Jehanzeb3, The purpose of this paper is to present a conceptual study established on the employee training and development program and its benefits. This paper will inspect the structure and elements of employee training and development program and later the study present what are the positive outcomes for employees and organizations. Organizations find it difficult to stay competitive in recent global economy. Importance of employee development program is growing for the organizations those pursuing to receive an advantage among competitors. Employees are esteemed resource of the organization and success or failure of the organization relay on the performance of employees. Therefore, organizations are financing large amount on employee training and development programs. Furthermore, in training program it is supportive for companies to emphasis on knowledge, expertise and ability of employees. There is substantial discussion among professionals and researchers on the affect that development program has on both employee and organization. The study described here is a vigilant assessment of literature on fundamental of employee development program and its benefits to organizations and employees3.



Jelena Vemić4 The global competition and swiftness of changes emphasize the importance of human capital within organizations, as well as the swiftness and ways of knowledge gaining of that capital. In the economy where uncertainty is the only certainty, knowledge is becoming a reliable source of sustained competitive advantage. Knowledge is becoming basic capital and the trigger of development. Previously built on foundations of possessing specific resources and low costs, present day competition is based on knowledge possessing and efficient knowledge management. Modern organizations, therefore use their resources (money, time, energy, information, etc.) for permanent training and advancement of their employees. Organizations which are constantly creating new knowledge, extending it through the entire organization and implementing it quickly inside the new technologies, develop good products and excellent services. These activities determine the company as a learning organization with constant innovation being its sole business. These are organizations which realize that learning and new knowledge are becoming the key of success, and that education is crucial for abundance4.

Henry Ongori, Jennifer Chishamiso

Nzonzo5 Training and development of employees is critical in organisations in this era of competition due to the fact that organizations need to survive, grow and develop. Consequentially, training and development has become an issue of strategic importance. Although many scholars have conducted research on training and development practices in organisations in both developing and developed economies, it is worth mentioning that most of the research has concentrated on the benefits of training in general. There is however, limited focus on evaluation of training and development practices in organizations and yet, training and development of employees is critical for the survival and growth of any entity. To fill this gap, this study critically examines in detail the benefits, approaches and evaluation techniques applied in training and development of employees in an organisation. The methodology adopted for this study was random samplings where 61 managers of eight organisations were selected for the study. The major finding of the study indicated that training and development of employees increases organisational effectiveness and enhances competitiveness. The limitation of the study is that sample size selected for the study comprised of organisation in Gaborone city and its surrounding areas. The contribution of this study is that it provokes insights amongst owners / managers, policy makers and scholars on how organisation training and development practices could be enhanced in Order to improve organisational effectiveness and retain human capital5.

Need for the study

Training and development activities are needed by any organization that wants to grow continuously. In fast changing environment organizations can scale new height only through the effective use of these human resources. The purpose of this study is to know the effectiveness of training and development activities in the organization through the following:

To know the functions of training and

development activities. To understand different methods of training

activities adopted in the organization. To know the employee satisfaction regarding

training and development activities adopted in the organization.

The reaction of the employee towards the training and development activities.

Objectives of the Study To study and understand the process and

importance of the training. To study and analyze whether training and

development activities has impact on the improvement of performance of the employees.

To study and analyze training and development activities.

To study and analyze the process of determining the training needs, and suggest improvements if any.

To study and analyze the process of ascertaining the effectiveness of the training programs and suggest if any.

Hypothesis of the study: H0: There is no gender satisfaction level of employee on before training program is conducted. H0: There is no gender satisfaction level of employee on after training program is conducted. Research Methodology

This research is based on “Training and Development in Thirubuvanai Area” was designed by using quantitative analysis. The relevant data for study has been collected from both the primary and secondary sources. The primary data was collected by using the structured closed questionnaire & secondary data was collected from various websites, journals & books. RESEARCH DESIGN

Types of research Descriptive Research

Sample size 150

Data Primary data, Secondary data

Research method Survey method

Research instrument

Questionnaire



The data collected through questionnaire were classified tabulated analyzed through simple percentage method. Further the data were analysis

with SPSS 16 and Cross tab & chi-square test were used.

CLASSIFICATION ON THE BASES OF PERFORMANCE OF THE EMPLOYEES CROSSTAB BEFORE THE

TRAINING PROGRAM Table 1. Classification on the bases of performance of the employees Crosstab

Before the training program

Value Df Sig.

Pearson Chi-Square 3.957 4 .412

N of Valid Cases 150

The table 1 shows the cross tab between gender satisfaction levels on before the training program. It finds that the male group of employees on before training program is given said that 2.9% got highly dissatisfied and female employee got zero percentage, 7.8% of male respondent got dissatisfied and 12.5% of the female respondent are dissatisfied, 34.3% of the male respondent got medium satisfaction and 35.4% of the female

respondent got medium satisfaction, 41.2% of the male respondent got satisfied and 45.8% of the female respondent got satisfied, 13.7% of the male respondent got highly satisfied and 6.3% of the female respondent got highly satisfied.The above table shows the result of chi-Square test. It is observed that Null Hypothesis is accepted. There is no gender satisfaction level of employee on before training program is conducted.

Table 2. Classification on the bases of performance of the employees Crosstab After the training program

After the training program Total

dissatisfied Medium satisfied highly satisfied

gender

male

5 22 48 27 102

4.9% 21.6% 47.1% 26.5% 100.0%

female

2 11 21 14 48

4.2% 22.9% 43.8% 29.2% 100.0%

Total

7 33 69 41 150

4.7% 22.0% 46.0% 27.3% 100.0%

Value Df Sig.

Pearson Chi-Square .229 3 .973

N of Valid Cases 150

The table 2 shows the cross tab between gender satisfaction levels on after the training program. It finds that the male group of employees on after training program is given said that 4.9% got dissatisfied and female employee got 4.2% dissatisfied, 21.6% of male respondent got medium and 22.9% of the female respondent are medium, 41.1% of the male respondent got satisfied and 43.8% of the female respondent got satisfied, 26.5% of the male respondent got highly satisfied and 29.2% of the female respondent got highly

satisfied.The above table shows the result of chi-Square test. It is observed that Null Hypothesis is accepted. There is no gender satisfaction level of employee on after training program is conducted. Findings The table 1 shows the result of chi-Square test.

It is observed that Null Hypothesis is accepted. There is no gender satisfaction level of employee on before training program is conducted.

Before the training program Total

highly dissatisfied Dissatisfied medium satisfied

highly satisfied

gender

male

3 8 35 42 14 102

2.9% 7.8% 34.3% 41.2% 13.7% 100.0%

female

0 6 17 22 3 48

.0% 12.5% 35.4% 45.8% 6.3% 100.0%

Total

3 14 52 64 17 150

2.0% 9.3% 34.7% 42.7% 11.3% 100.0%



The table 2 shows the result of chi-Square test. It is observed that Null Hypothesis is accepted. There is no gender satisfaction level of employee on after training program is conducted.

Conclusion

The main finding of the study is that company’s success rate is very high which implies that the company places right man on the right job and also trains at the right time. This has not only increased job satisfaction among the employees but also boosted their performance level. It is found that the training and development will help the employees in improving their skills and make them feel at home; training must be improved at various related fields in the organization and the experienced feel much better after training period, as it brings a friendly environment in the organization. It can be concluded that the industries in thirubuvanai takes due the care in Training and Development; it believes that the amount of time and effort spent in training people make the employees much skilled persons and there be increase in the performance level of the employees

which in turn improves the organizational effectiveness. References 1. DR. V.Rama devi, Mr.Nagurvali shaik, “ Training & development – A jump starter for employee performance and organizational effectiveness”, International Journal of Social Science & Interdisciplinary Research , July 2012,Vol.1 Issue 7, ISSN 2277 3630. 2. Mousa Masadeh, PhD, “Training, education, development and learning: What is the difference?” European Scientific Journal May edition vol. 8, No.10 ISSN: 1857 – 7881 (Print) e - ISSN 1857- 7431. 3. Khawaja Jehanzeb, Dr. Nadeem Ahmed Bashir, “Training and Development program and its benefits to employee and organization: A Conceptual Study”, European Journal of Business and Management, 2013, Vol.5, No.2, ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online) 4. Jelena Vemić, “Employee training and development and the learning organization”, Facta Universitatis series: Economics and organization, 2007, vol. 4, no 2, pp. 209 – 216. 5. Henry Ongori, Jennifer Chishamiso Nzonzo, “Training and development practices in an organisation: an intervention to enhance organisational effectiveness”, International jornal of engineering and management sciences, I.J.E.M.S., 2011, vol.2(4): 187-198 ISSN 2229 -600X.



PROBLEM IN BANANA MARKETING IN THANJAVUR DISTRICT WITH A SPECIAL REFERENCE TO INTERMEDIARIES

*Dr.S.Karthikeyan **Mr.M.Kalaiyarasu

____________________________________________________________________________________________________

*Assistant Professor, Department of Commerce, Annamalai University, Annamalainagar-608002. **Ph.D Research Scholar, Department of Commerce, Annamalai University, Annamalainagar-608002.

Abstract

Banana is said to be a common man`s fruit, because there is large area under banana production in India, its per hectare yield is also the highest (30 – 35 MT/HA) of all the fruits. Banana is very perishable fruit and hence its marketing faces many problem. Marketing intermediaries play a vital role of banana marketing. There are number of problems faced by marketing intermediaries while marketing of banana. The study is based on primary data. The primary data were collected from marketing intermediaries in Thanjavur district. Marketing intermediaries plays a important role of marketing of banana. They are purchasing banana from cultivators and to sell the banana to consumers. There are numbers of problems faced by the market intermediaries, at the time of marketing of banana. There are three major problems dominated. The problems are marketing, financial and human. This study has analyzed marketing, financial and human problems faced by intermediaries in the study area. Majority of the respondents faced transport and preservation of product. The financial problem of availability of loan, rate of interest and commission were high. The human resource problem from producer and labour were opinion higher by majority of the respondents. Transport and preservation problem can be out come by organising co-operative and these facilities can be shared by member. Problem faced in getting loan can be solved by financial institutions and tax rate, commission should be regulated by government in order to overcome tax problem. Human resource problem can be solved by mutual understanding between the people.

Introduction Banana is said to be a common man`s fruit, because there is large area under banana production in India, its per hectare yield is also the highest (30 – 35 MT/HA) of all the fruits. Therefore its production is large and prices are with in the reach of common people. Total area under banana is 3.70 ha next to mango. In India Tamil Nadu is one of the largest producer of banana followed by Maharashtra, Karnataka. Tamil Nadu shared 6% by area and 12% of production of banana in India. In Tami Nadu under banana is concentrated in Thanjavur district with nearly 4200 ha area in the district. Statement of the problem

Banana is very perishable fruit and hence its marketing faces many problem. Marketing intermediaries play a vital role of banana marketing. There are number of problems faced by marketing intermediaries while marketing of banana. The researcher has taken the major problems faced by intermediaries like marketing, financial and human for the study. Objective of the study To analyse the problems such as marketing, financial and human faced by the banana marketing intermediaries. Methodology of the study

The study is based on primary data. The primary data were collected from marketing intermediaries in Thanjavur district. The interview

schedule has been prepared and used for collecting of relevant data from the respondents. Sampling Design The study concentrates the role of intermediaries to faced problems while marketing of banana. The area study selected for this research is Thanjavur district. Banana is growing only in all areas of Thanjavur district. There are four taluks which are prominently ensured in marketing of banana crop. The sample taluk are Kumbakonam, Papanasam, Thiruvaiyaru and Thiruvidaimaruthur the sample taluk. From each taluk 20 respondents have been selected. Snow Ball sampling techniques is used for this study. Statistical tools used for the study The collected data have been consolidated, tabulated and analysed by using relevant statistical tools like percentage, mean, standard deviation and co-efficient of variation. The SPSS package was utilized for analyzing the data. The primary data has been collected and segregated in to proper table format and interpretation has been done from there tables by using five-points scale techniques. Marketing Intermediaries Marketing intermediaries plays a important role of marketing of banana. They are purchasing banana from cultivators and to sell the banana to consumers. There are numbers of problems faced by the market intermediaries, at the time of marketing of banana. There are three major problems dominated. The problems are marketing, financial and human.

Opinion about marketing problems

The sample respondent of marketing intermediaries are asked to state their opinion on problem faced in marketing of banana. The data were collected and using five-point grading scale are used in the table.



Table – 1 Respondents Opinion about Marketing Problem

Problems Opinion

Transportation

preservation

Marketing packing Mean Standard deviation

Co efficient

of variation

Res

% Res

% Res % Res % - - -

Very high 23 28.75 35 43.75 13 16.25 08 10.00 19.75 11.92 1.65

High 28 35.00 28 35.00 12 15.00 11 13.75 19.75 9.53 2.07

Normal 15 18.75 08 10.00 32 40.00 24 30.00 19.75 10.46 1.88

Low 12 15.00 05 6.25 18 22.50 22 27.50 14.25 7.41 1.92

Very low 02 2.50 04 5.00 05 6.25 15 18.75 6.5 5.80 1.12

Total 80 100 80 100 80 100 80 100 - - -

Source: Primary data Table- 1 shows that the opinion of sample respondents of intermediaries on the problems faced in marketing of banana. Among the respondents the problems of transport 28 respondents are feel high, 35 per cent of respondents of the total sample respondents says that very high in transport problem. Only 2 respondents feel low in transport problem. Preservation is the main problem of marketing. Out of the total sample respondents 43.75 per cent of the respondent says very high in preservation problem. Out of the total respondents 28 respondent feel high

in preservation problem only, 4 respondents feel very low of preservation problems. Marketing and packing is the major problems faced by the intermediaries in Thanjavur district 40 per cent of respondents in marketing and 24 per cent of respondents in packing, feel normal problem of their opinion the co-efficient computed for marketing problem. The co-efficient of variation is 2.07 shows about normal problem is 1.88. the intermediaries opinion is 1.12 is shows that a very problem of marketing.

Table – 2

Respondents Opinion about Financial Problem Source: Primary Data

Problems

Opinion

Loan Rate of interest

Tax Commissio

n

Rent Mea

n

Standard

deviation

Co efficient of

variation

Res

% Res % Res % Res % Res %

Very high

35 43.75 11 13.75 15 18.75 23 28.75 21 26.25

21 9.16 2.29

High 11 13.75 26 32.50 21 26.25 25 31.25 12 15.00

19 7.10 2.67

Normal 10 12.50 15 18.75 23 28.75 07 8.65 14 17.50

9.6 5.31 1.08

Low 16 20.00 23 28.75 15 18.75 17 21.25 18 22.50

17.8 3.11 5.72

Very Low

08 10.00 05 6.25 06 7.50 08 10.00 15 18.75

8.4 3.91 2.14

Total 80 100 80 100 80 100 80 100 80 100 - - -



The above table shows that the financial problems faced by the intermediaries while marketing of banana. That are five major problems occupied in to the financial problems 1.Loan 2.Rate of Interest 3.Tax 4.Commission and 5.Rent. The out of total respondents 43.75 per cent of the respondents are says the problem is very high to getting loan. Out of 80 respondents only 8 respondents feel very low. The rate of interest in 28.75 per cent of the respondents say low, 32.5 per cent of the respondents feel high in problem of rate of interest. The 28.75 per cent of the respondents facing the tax

problem say normal and 21 respondents out of total sample respondents feel high. Commission and Rent also includes in to the financial problem. Commission 31.25 per cent are high and rent 26.25 per cent very high in the financial problem. The 8 respondent feel very low in commissions problem and 18 respondent feel low in rent problem. The standard deviation is in 9.16 for high financial problem and the highest co-efficient of variation for 5.72 in low problems. The normal problem possess the co-efficient of variation is 1.08 percentage.

Table – 3

Respondent Opinion about Human Problem


The table number 3 shows that the opinion on human problems faced in marketing of banana by the intermediaries. The producer problem 24 respondents have stated very high followed by 26.25 per cent stated high and 12 respondent stated very low in producer problem. The problem of revenue officials 21 respondents stated very low, 25 per cent of the respondents feel normal, and 7.5 per cent respondents stated very high in the revenue official problem in human. Transport is important thing for transfer of goods from one place to another place. The 31.25 per cent of the respondents say normal 18.75 per cent say very high in transport problem. The out of total respondents only 12 respondents say very low in transport official problems. Labour and finance are also the problems of human 37.5 per cent stated very high in labour and 36.25 per cent high in financer problems. The minimum number of 8 respondents stated very low in labour and 5 respondents stated low in financer problems in intermediaries of opinion of human

problems. The human problem faced by intermediaries by the way of using co-efficient of variation in highest is 2.81 in high problem. The 1.94 of co-efficient of variation is very high problem of human faced by marketing intermediaries Conclusion

The study has analyzed the problem faced by intermediaries in banana marketing. Previous studies described the problem faced by producer of banana. This study has analyzed marketing, financial and human problems faced by intermediaries in the study area. Majority of the respondents faced transport and preservation of product. The financial problem of availability of loan, rate of interest and commission were high. The human resource problem from producer and labour were opinion higher by majority of the respondents. Transport and preservation problem can be out come by organising co-operative and these facilities can be shared by member. Problem

Problems

Opinion

Producer Revenue

officer Transport

Officer Labour

Financier

Mean

Standard

deviation

Co efficient of

variation

Res

% Res % Res % Res % Res %

Very high

24 30.00 06 7.50 15 18.75 30 37.50 15 18.75

18 9.24 1.94

High 21 26.25 18 22.50 14 17.50 12 15.00 29 36.25

18.8 6.68 2.81

Normal 08 10.00 20 25.00 25 31.25 13 16.25 12 15.00

15.6 6.80 2.29

Low 15 18.75 15 18.75 14 17.50 17 21.25 05 06.25

13.2 4.71 2.80

Very Low

12 15.00 21 26.25 12 15.00 08 10.00 19 23.75

14.4 5.41 2.66

Total 80 100 80 100 80 100 80 100 80 100 - - -



faced in getting loan can be solved by financial institutions and tax rate, commission should be regulated by government in order to overcome tax problem. Human resource problem can be solved by mutual understanding between the people. Reference 1. K B Patil & K P Rawale., (2012), Pre Harvest

Management of Banana for Domestic and Export Market.

Nation Conference on adaption to climate change., pp.88-90.

2. M.Basha & J.Jacob Stanley Inbaraj.,(2013), Cost of Cultivation of Different varieties of banana cultivated in Tirupattur taluk of Vellore district. pp.42-49.

3. Sunil kumar choudhary (2013), Horticultures Development prosperity & constraint. International journal of Research Economics & Social science. http;//www.euroasiapub.org.



A STUDY ON JOB SATISFACTION PREVALENT AMONG BHEL EMPLOYEES

*Dr. G. Madan Mohan **Ajina K.P.

____________________________________________________________________________________________________ *Assistant Professor, Department o Management Studies, Pondicherry University. **Research Scholar, Department of Management Studies, Pondicherry University.

Abstract Well satisfied human resources become valuable asset for any organisation. Job satisfaction refers to contentedness of employees towards their job and its different facets such as Appreciation, Communication, Coworkers, Fringe benefits, Job conditions, Nature of work, Organization, Personal growth, Policies and procedures, Promotion opportunities, Recognition, Security and Supervision.This descriptive research endeavours to analyse the nature of job satisfaction prevalent among the employees of BHEL, a Maharatna public sector undertaking and the various determinants of such satisfaction. The research has revealed that supervisory relations, motivation and recognition are the important factors exerting immense impact on job satisfaction, followed by the other factors of Incentives, Cohesiveness, Communication and Augmentation. Furthermore, the research has revealed that the younger personnel of BHEL are more satisfied with their job than their older counterparts while ITI holders are more satisfied with their job, followed by Diploma-holders and finally by the graduates and post-graduates. Finally, personnel in the Workers cadre are more satisfied with their job than those in the supervisory and executive cadre. Keywords: Communication Deliberators, Job satisfaction, Impulsive Group, Spurs Appreciators, Supervisory Relations.

Introduction

Any business organisation has to satisfy many of its stakeholders such as customers, suppliers, employees, shareholders, government and the society at large. Even if one of these stakeholders are disgruntled with the organisation, then it will be curtains for the organisation. Human resources are one of the important resource to be contended with by the organisation as good quality and committed manpower will add value to the organisation. Personnel who are satisfied with their job to the utmost extent become valuable asset for the organisation. Job satisfaction may be considered as contentedness of employees towards their job and its different facets such as Appreciation, Communication, Coworkers, Fringe benefits, Job conditions, Nature of the work, Organization, Personal growth, Policies and procedures, Promotion opportunities, Recognition, Security and Supervision (Spector 1997). As an improvement to this opinion, job satisfaction may be considered as multidimensional psychological and personal responses of employees to their job which have cognitive, affective and behavioral components [Hulin and Judge 2003]. Some authors consider job satisfaction as a measurement of employees feelings about their job [Thompson and Phua 2012; Moorman 1993],while others consider it as anenjoyable or progressive passionatecondition of employees, consequential to appraisal of their job (Locke 1976). Job satisfaction is a function of various factors such as general well-being, stress at work, control at work, home-work interface and working conditions[Tomaevič et al. 2014). Job satisfaction of employees strongly influences their contextual performance (Bryan et al. 2008). Importance of job satisfaction was realised right from the 1930s [Latham & Budworth 2007] with many authors such as Kornhauser (1930], Hoppock[1935] and Uhrbrock[1934] conducting extensive research on

the subject.Many theories evolved about job satisfaction. The Range of Affect Theory, disseminated by Edwin (1976),described job satisfaction as the discrepancy between what employees want in their job and what they got.The dispositional approach of Staw, Bell & Clausen (1986) consider job satisfaction as an individual trait. The Core Self-evaluation Model, proposed by Judge et al. (1997),states that the four Core Self-evaluationconcepts of high self-esteem, high self-efficacy, high locus of control and low neuroticism boost employees’ job satisfaction.The Equity Theory of Adams (1965) and Walster et al. (1973) suggests that employee discontent arise because of feeling of inequality in treatment between identical groups or individuals,resulting in three behavioural response patterns of benevolence, equity sensitiveness and entitledness (Huseman, Hatfield & Mile 1987). Social interaction model, propagated by Cote and Morgan (2002), states that inter-personal relationships between workers attract responses from others, which in turn shall influence their job satisfaction. Discrepancy theory of Higgins (1987 &1999) and Strauman (1989) propagates that employees not fulfilling their errands and obligations become anxious and get punished, casting a negative impact on their level of satisfaction. The Two-factor theory (motivator-hygiene theory),propogated by Hackman and Oldham (1976) states that motivating factors such as achievement in work, recognition, promotion opportunitiesetc. And Hygiene factors such as pay, company policies, supervisory practices and other working conditions exert significant impact on employee satisfaction. Job characteristics model of Hackman & Oldham (1976) states that the five core job characteristics of skill variety, task identity, task significance, autonomy and feedback influences three critical psychological conditions of experienced meaningfulness, experienced responsibility for outcomes and knowledge of



actual results, consequently affecting work outcomes of job satisfaction, absenteeism, work motivation and performance. Factors Influencing Job Satisfaction

The Job Descriptive Index [Smith et al. 1969] talks about five facets of job satisfaction namely, pay, promotion opportunities, coworkers, supervision and the work itself.

1. Communication Load: Communication management is one of the most important aspects of work environment an employee confronts [Krayer & Westbrook 1986].Communication load refers to the rate and complexity of communication inputs an employee has to process during a particular time span [Farace et al. 1977].If more messages are received, it amounts to communication over-load and if messages received are below the employees potential to process, it amounts to communication under-load. The latter may result in injecting disappointedness, aggravatedness and annoyance among the employees, resulting in truncated level of job satisfaction. Furthermore, superiors indulging in friendly non-verbal communication inject more job satisfaction among their subordinates while those who are unfriendly may inoculate unsatisfaction. 2. Employee recognition: Companies offering flexible work environment results in employee satisfaction which subsequently enhances shareholders value. More than 40%of companies having a place in the top 100 of Fortune magazine’s America’s Best Companies to Work For also appear on the Fortune 500 companies. Hence, successful companies can attract more successful and satisfied employees. 3. Pay: Good pay always results in good satisfaction, particularly in the present context ofhigh inflation. 4. Promotion: Beyond certain extent, people start getting inclined towards good status, which results out of enhancement in their job status and responsibilities. Hence, promotion caters to satisfaction needs of such people. 5. Work Environment: Good work environment exerts significant impact on satisfaction level of employees.

Practical Implications of Job Satisfaction

Job satisfaction can be indicative of work behaviours such as organizational citizenship [Organ& Ryan 1995] and withdrawal behaviours such as absenteeism [Wegge et al. 2007] and turnover[Saari & Judge 2004].It can moderately intercede association that may prevail between personal profile variables and divergent work performance of employees [Mount, Ilies & Johnson 2006]. Job satisfaction and life satisfaction have positive and reciprocal relationship (Rain, Lane & Steiner 1991).Though the general perception is that

job satisfaction positively influences productivity, results of a latest meta-analysis revealed an unexpected squat relationship between the two, due to other intervening factors such as job complexities and individual personalities [Bowling 2007[. Job satisfaction is a strong prognosticator of absenteeism and turnover [Cohen & Golan 2007] implying that a robust job satisfaction will have a positive impact on performance, organizational conventionality and organizational citizenship behaviours[Krishnan & Singh 2010] and on avoiding absenteeism [Goldberg & Waldman 2000]. Objectives of the study

1. To study the level of motivation, job satisfaction, employee engagement, inter-personal relations, augmentation, incentives adequacy, recognition, cohesiveness and communication efficiency prevalent among employees of BHEL; 2. To study the relationship between job satisfaction of BHEL employees and their education, age and cadre; 3. To analyse the various determinants of job satisfaction of BHEL employees.

Methodology

The proposed research is descriptive in nature, based on primary data, collected by personally administering a well structured and non-disguised interview schedule to workers of BHEL, Trichy. The sample frame for the study is BHEL which is a Maharatna public sector undertaking, established on 1964, engaged in the design, engineering, manufacture, construction, testing, commissioning and servicing of a wide range of products and services for the core sectors of engineering and power. It consist of 17 manufacturing divisions, two repair units, four regional offices, eight service centres, eight overseas offices and 15 regional centres and currently operates at more than 150 project sites in India and across 21 countries including Malaysia, Oman, Iraq, the UAE, Bhutan, Egypt and New Zealand. The sample population for the study consists of permanent employees of BHEL, working in management and supervisory cadres. The sample Size of the study shall be 326 workers selected at a random. The interview schedule used for this study consists of two sections with closed-ended questions. The first section contains questions about profile of the employees while the second section consist of 47 statements endeavouring to assess the employee opinion about various HR issues, in a Likert’s five point scale. Data collected have been represented suitably in tabular and diagrammatic forms and analysed using Statistical Package for the Social Sciences (SPSS), employing the statistical



tools of Mean, ANOVA, Chi-square Analysis, Factor Analysis, Cluster Analysis, Correspondence Analysis and Regression. Profile of the Employees Selected for theStudy Male employees constitute 85.3% of the total respondents while female constitutes 14.7%; 39.3% of the respondents belong to the age group of less than 25, 35% are aged 25-40, 17.2% are aged 40-50 and 8.6% are aged 50-60; 78.2% of the respondents’ monthly income is less than 40000, 18.4% have monthly income of 40000-50000, 3.1% have monthly income of 50000-75000 and 0.3% have a monthly income of more than 75000; 60.4% of the employees surveyed belong to the Workers cadre while 35.6% belong to Supervisory cadre and 13% belong to Executive cadre; 54.3% of the employees possess ITI education, 25.2% are graduates, 12.3% are Post Graduates and 8.3% are Diploma-holders; 49.1% of the employees are employed in BHEL for a period of less than 2 years, 20.2% are having 2-5 years of experience , 24.5% are having 5-10 years experience and 6.1% have more than 10 years of service. Factorisation of Statements

The 47 statements used for assessing employee opinion about various HR issues need to be factored to facilitate easy analysis and towards this endeavour, Factor Analysis has been executed.

Before proceeding with Factor Analysis, suitability of available data has to be verified using KMO AND BartLlett's Test. Table 1 displays the results of these tests, according to which KMO value is as high as 0.846and the Bartlett’s test of Sphericity value is quite reasonable at 3.136 and significance value of 0.000 indicates that factor analysis can be meaningfully performed on the 47 statements by using the available data. Table 1: KMO AND BARTLETT'S TEST

Kaiser-Meyer-Olkin Measure of Sampling Adequacy.

0.846

Bartlett's Test of Sphericity

Approx.Chi-Square

3.136E3

Df 105

Sig. 0.000

Results of Rotated Component Matrix has been displayed in Table 2.Nine factors have been formed using the 47 statements. Based on the statements loaded in the factors, the nine factors have been labelled as “Recognition Factor”, “Incentives Adequacy Factor”, “Cohesiveness factor”, “Communication Factor”,“Peers Efficiency”, “Fidelity factor”, “Augmentation factor”,“Supervisory Relationship factor” and “Job Satisfaction factor”.

Clusterisation of Respondents Some respondents may have similar perception and they should be categorised into groups using Cluster Analysis. The three clustersso formed has been displayed in Table3. Table 3: Final cluster centres

Factor C1

C2

C3

F Sig.

Job satisfaction 3.74

3.43

4.30

262.329

0.000

Supervisory relationship

3.70

2.49

4.29

713.814

0.000

Motivation 4.02

4.50

4.65

164.077

0.000

Peer’s efficiency 3.81

3.27

4.29

286.623

0.000

Augmentation 3.73

3.63

4.36

409.511

0.000

Communication 3.80

2.98

4.53

584.699

0.000

Recognition factor 3.53

2.05

4.29

581.792

0.000

Incentives adequacy factor

3.71

4.54

4.26

272.415

0.000

Cohesiveness factor 3.75

4.50

4.36

127.583

0.000

Number of cases 182

36 108

It can be inferred from Table 4 that three clusters are formed based on the nine factors. These clusters

have been labelled as “Communication Deliberators” (C1), “Spurs Appreciators” (C2) and “Impulsive Group" (C3) based on the mean valuesin respect of the factors for the clusters. The significance values of each factor display that all the factors contribute significantly to the clusterisation process. It can further be inferred from the table that the first cluster of “Communication deliberators” encompasses 182 respondents, the second cluster of “Spurs Appreciators” engulfs 36 respondents and the third cluster of “Impulsive Group” comprises of 108 respondents. Determinants of Job Satisfaction

Regression model has been developed to analyse the determinants of Job Satisfaction among the employees of BHEL and the results have been displayed in Table 4. TABLE 4: Co-efficient and Model Summary

Variables B R2 T P

Constant 0.628 0.744 4.010 0.000

Supervisory relationship 0.640 5.146 0.000

Motivation 0.403 5.884 0.000

Peers efficiency 0.080 1.572 0.117

Augmentation 0.216 3.976 0.000

Communication 0.221 2.847 0.005

Recognition factor 0.305

11.053

0.000

Incentives adequacy factor

0.246 6.543 0.000



Cohesiveness factor 0.240 2.444 0.016

It can be observed from the above table that the value of R square is 0.744, which implies that 74.4% of variance in job satisfaction of employees in BHEL is clearly explained by the independent variables. It can further be inferred from the table that all the independent variables but for Peers Efficiency are exerting significant impact on Job Satisfaction at one percent level. Supervisory relations, motivation and recognition are the important factors exerting immense impact on job satisfaction, followed by the other factors of Incentives, Cohesiveness, Communication and Augmentation. Based on the Regression results, the following model can be arrived at: Job satisfaction= 0.628+0.640 * Supervisory relationship + 0.403 * Motivation + 0.216 * Augmentation + 0.221 * Communication + 0.305 * Recognition factor 0.246 * Incentives adequacy factor + 0.240 * Cohesiveness factor. Relationship Between Job Satisfaction of BHEL Employees and their Profile The relationship between Job satisfaction of BHEL employees and their age, education and cadre has been explored using ANOVA. Results displayed in Table 5suggests that the younger personnel of BHEL are more satisfied with their job than their older counterparts. Furthermore, ITI holders are more satisfied with their job, followed by Diploma-holders and finally by the graduates and post-graduates. Table 5 further indicates that the personnel in the Workers cadre are more satisfied with their job than those in the supervisory and executive cadre. Table 5: Relationship Between Job Satisfaction of Employees and their Profile

Demographic Group Mean P

Age < 25 3.9364 0.049

25-40 40-50 50-60

3.8997 3.8444 3.7449

Education Diploma 3.7778 0.000

ITI 4.0621

Degree PG

3.7213 3.5607

Cadre Worker 4.0138 0.000

Supervisor Executive

3.6946 3.7912

Conclusion Older employees and those with higher education and those in higher cadre are having lesser satisfaction in their job when compared with their other counterparts. This is typical of any public sector undertaking where performance-based incentives and recognition are not prevalent. Hence, BHEL should consider giving due recognition to good performance and highly educated personnel.

The point that motivation and recognition exerts high impact on Job satisfaction reiterates this issue. Considering the vitality of Human Resources Management for any organisation, it becomes absolutely important for BHEL to go ahead with its employee-friendly programmes with new vigour to inculcate feeling of more security and belongingness among its employees. References 1. Adams J. S. (1965). Inequity in social exchange. In L. Berkowitz (Ed.), Advances in experimental social psychology (pp. 276-299). New York: Academic Press. 2. Aristovnik A. & Jaklič K. (2013). Job satisfaction of older workers as a factor of promoting labour market participation in the EU : the case of Slovenia. Rev. soc. polit.., 20( 2), 123-148. 3. Bowling N.A. (2007). Is the Job Satisfaction-Job Performance Relationship Spurious: A Meta-Analytic Examination. Journal of Vocational Behavior, 71, 167-185 4. Bryan D. Edwards, Suzanne T. Bell, Winfred Arthur Jr. and Arlette D. Decuir (2008). “Relationships between Facets of Job Satisfaction and Task and Contextual Performance”, International Journal of APPLIED PSYCHOLOGY, Volume 57 (3), pp. 441-465. 5. Cohen A., & Golan R. (2007). Predicting absenteeism and turnover intentions by past absenteeism and work attitudes. Career Development International, 12(5), 416-432 6. Goldberg C. B., & Waldman D. A. (2000). Modeling employee absenteeism: Testing alternative measures and mediated effects based on job satisfaction. Journal of Organizational Behavior, 21(6), 665-676. 7. Hackman J. R. & Oldham G. R. (1976). Motivation through the design of work: Test of a theory. Organizational Behavior and Human Performance, 16, 250-279. 8. Hackman J. R. and Oldham G. R. Hackman Oldham (1976 ) "Motivation through design of work". Organizational behaviour and human performance 16 (2): 250–279. doi:10.1016/0030-5073(76)90016-7. 9. Higgins E. T. (1987). Self-discrepancy: A theory relating self and affect. Psychological Review, 94, 319-340 10. Higgins E. T. (1999). When do self-discrepancies have specific relations to emotions? The second-generation question of Tangney, Niedenthal, Covert, and Barlow (1998). Journal of Personality and Social Psychology, 77, 1313-1317 11. Hoppock R. (1935). Job satisfaction. Oxford, England: Harper. 12. Hulin C. L.& Judge T. A. (2003). Job attitUdes. In W. C. Borman, 13. Hulin C. L., & Judge T. A. (2003). Job attitUdes. In W. C. Borman, D. R. ligen, & R. J. Klimoski (Eds.), Handbook of psychology: Industrial and organizational psychology (pp. 255-276). Hoboken, NJ: Wiley. 14. Huseman R., Hatfield J. and Miles E. (1987). "A New Perspective on Equity Theory: The Equity Sensitivity Construct. Academy of Management Review. 1987. 12(2). pp. 232-234 15. Judge T. A., Locke E. A. & Durham C. C. (1997). The dispositional causes of job satisfaction: A core evaluations approach. Research in Organizational Behavior, 19, 151–188. 16. Kalleberg A.L. (1977). "Work values and job rewards—Theory of job satisfaction". American Sociological Review 42: 124–143. doi:10.2307/2117735. 17. Kornhauser A. W. (1930). Industrial psychology in England, Germany and the United States. Personnel Journal, 8, 421-434. 18. Krayer K.J. & Westbrook L. (1986). The relationship between communication load and job satisfaction. World Communication, 15, 85-99.



A STUDY ON STRESS MANAGEMENT AMONG COLLEGE STUDENTS

(With Special Reference to Vellore) *R.Sugumari

____________________________________________________________________________________________________

*Assistant Professor, D.K.M. College for Women, Vellore.

Abstract Stress is the way of human beings react both physically and mentally to changes, events and situations in their lives. Stress is a common problem that affects almost all of us at some point in lives. We cannot avoid stress but we can learn how to manage it. Stress can be positive or negative. It results from a transaction between the environment and the person. The environment presents a set of dynamic condition or potential stressors that can be perceived as opportunities, constraints or demands. All the physical stress is caused by the psychological tension. Students are suffering from the inability to concentrate on studies, sleeping, bad experience restless, emotional ups and downs etc. Hence, an attempt has been made to analyse the various causes of stress among college students. Further efforts have also been made to know the way in which stress affects college students and to know the various methods of coping strategies for stress. Key Words: Stress management, causes, factors, effects in stress, coping of strategies.

Introduction Stress is the physiological, psychological and behaviour response of an individual to both external and internal pressure. We generally use the word stress when we feel that everything seems to have become too much, we are overloaded and wonder whether we really can cope with the pressures placed upon us. Life would be dull without some stress. The key is to manage stress properly, because unhealthy response to it may lead to health problem in some people. Many people experience stress as they combine busy lives and the demands of study while trying to save time for friends and family. For some people, stress becomes almost a way of life. We all experience episodic stress, getting ready for a major exam, completing and important paper, perhaps getting ready for an important a way of life. We know that stress prolonged period of time, can have increase certain health risks, to say nothing of the way and tear that happens to relationships and general well being. Changes in our lives such as going to college, getting married, changing jobs or illnesses are frequent sources of stress. Learning to do this takes time, and although we cannot avoid stress, the good news is that can minimize the harmful effects of stress, such as depression or hypertension. The key is to develop an awareness of how it interpret and react to circumstances. This awareness will help to develop coping techniques for managing stress. Meaning

Stress is the way human beings react both physically and mentally to changes, events and situations in their lives. People experience stress in different ways and for different reasons. The reaction is based on the perception of an event or situation. Definition Hellriegal and slocum (2004) have stated that “Stress is the excitement, feeling of anxiety or physical tension that occur when the demand placed on individual are thought to exceed his

ability to scope. This most common view of stress is after called distress. The physical or psychological demand from the environment that causes this condition is called stressors”. Lesllie and Lloyd (1997) have stated that “Stress is the mental or physical condition that result from a perceived threat of danger (physical or emotional) and the pressure to remove it”. Factors of Stress Individual Factors:

Type of personality

Low self esteem

Loneliness and feelings of isolation and neglect

feelings of isolation and neglect

Inadequate knowledge and skills Family Factors:

Inadequate resources of both men and women

Improper use of reward and punishment

Lack of caring love and affection

Interpersonal relationship Job Factors:

Criticism and neglect

Frequent transfer

Less or more work, unrealistic targets

Nature of job not used and job satisfaction COMMON EFFECTS OF STRESS On body:

Headache

Muscle tension or pain

Chest pain

Fatigue

Change in sex drive

Stomach problems On mood:

Anxiety

Restlessness

Lack of motivation or focus

Irritability or anger

Sadness or depression On behaviour:



Overeating or under eating

Angry outbursts

Drug or alcohol abuse

Tobacco use

Social withdrawal Students with high stress:

Students are suffering from the inability to concentrate on studies, sleep disturbances, phobia and something bad were happen to them resentment, emotional ups and downs etc. Causes:

Prolonged study hours

Parents ambition

Emotional separation from family

Financial problem

Ridicule and harsh words by college staff

Severe spirit of competition fuelled by college

Symptoms:

Isolation and frustration

Acute anxiety before examinations

Feeling of uselessness and fear of failure

Nightmares and sleeplessness

Fatigue and back pain

Drowsiness and lack of concentration

Frequent headaches

Gritting, Grinding teeth

Tremors, trembling of lips, hands

Light headiness, faintness, dizziness

Frequent blushing, sweating

Cold or sweaty hands

Heartburn, stomach pain

Constipation, diarrhoea, loss of control etc. Remedial measures:

Parents should understand the limitations of their children.

Needs counselling to develop confidence in his performance.

The management need counselling to accept the limitations of students.

There shall be breaks in instructional hours.

Follow some stress managing techniques like slow down techniques.

Benefits of Stress Management:

Feeling of being physical fit and well-being

Builds stamina and increases productivity

Develops a positive towards life and job

Increase mental alertness

Improves concentration and memory

Improves co-ordination of body and mind

Develops patience and reduce anger

Helps overcome fear and anxiety Tips to lower stress in life:

1. Simplify things:

The best way to do something is usually the simplest way. Don’t choose a longer, more complicated route when going the easier route will produce the same results. Making life less complicated reduces stress.

2. Exercise: Getting the body moving is a good way to relieve stress. Doesn’t need to be complicated, just go for a brisk 20 minute walk. Do it regularly and you’ll maintain good physical health as well. 3. Meditation and prayer:

Take the time to just be alone and self reflect. Sit in a quiet spot, let your mine relax and let the stress just drift away. If you find it easier said than done there are many good meditation products that you can listen to on your iPod.

4. Sleep: Assuming the stress is not so bad that it’s

causing insomnia; sleep is one of the ways to fight stress. Everything always seems worse when fighting exhaustion as well. If stress is causing insomnia you’ll have to reduce stress using other techniques. 5. Deep Breathing:

Taking deep, slow breaths helps relieve stress within the body. Just take a few quiet moments, take a couple of deep breaths and refocus. 6. Soothing Music:

Just listening to music with slow rhythms and relaxing sounds, can quickly put you into a more relaxed state of mind. 7. Friends:

Take time to be with friends. Have a drink, have a laugh doing this tends to put the stress into its proper perspective. Objectives of the study

To study the concept of stress in general.

To study the various causes of stress among college students.

To study the way in which stress affects college students.

To learn the various method of coping strategies for stress.

Scope of the study

Stress is an emotional state experienced by an individual. It is often perceived as a negative condition but a certain level of positive stress is necessary for effective functioning. The scope of the study is limited to the stress among college students in Vellore during examination and various techniques to come out of stress. The chosen samples of one hundred respondents were asked to answer the questionnaire prepared by the researcher in the above focused points and the opinion given by they were classified and analyzed. Limitation of the study

Time is major limitation. As the sample size is 100 only and drawn from a single college in Vellore town the findings cannot be generalized.



Review of Literature Harajyoti Mazumdar, Dipankar Gogoi, Lipika

Buragohain and Nabanita Haloi (2012). They studied the factors contribute to the stress among the graduate and post graduate students. They found that there were different percentages of stress symptoms among the male and female students. Headache, blood pressure, anxiety, backpain, neckpain and skin rashes were more predominately observed among females. On their hand poor sleeping patterns, hair falls, erratic moods, heart diseases and depressions was found to be more often in males.

Nitasha Sharma, Amandeepa (2011) have portrayed that the factors contributing to stress among nursing students and found 97% of the subjects had moderate level whereas 3% had severe stress. 40% of the stress belonged to environmental factors and followed by interpersonal factors 30%.

Ahmad. M.Thawabieh etal., (2012) noted that due to various changes, students can potentially experience different types of stress that can affect their mental and social health and their academic achievement. The results indicate that the students experienced a moderate level of stress.

Purna Prabhakar Nanamuri etal., found that

the different types of stressors and investigated into each component, placement and causes of stress. Around twelve micro issues have been identified under the curriculum and instruction component while four stressors were prioritized related to team work. Five sub issues regarding assessment and three micro issues under placement components of academic stress.

Research Methodology Data for the research was collected from 100 college students by random sampling method and a well defined questionnaire was prepared with 3 point likert scale and distributed to the near by college students. Primary data was collected through questionnaire and secondary data was collected from various journals and books. Chi-square was used as tool for analytical purpose. Analysis and Findings Application of chi – square test: Null Hypothesis (Ho): There is no significant relationship between education and their level of stress during examination. Calculated value (O-E)2 =0.2047 E Degree of freedom = (3-1) (2-1) =2 Table value at 5% significance = 5.99

The hypothesis holds good at 5% significant level as the table value is greater than the calculated value. There is no significant difference between education and their level of stress during examination.

Table: 3

Analysis of Causes of Stress Due to Emotional Problem

Application of chi-square test: Null hypothesis (Ho): There is no difference in causes of stress due to emotional problem and gender of the respondents. Calculated value (O-E) 2 = 0.6578 E Degree of freedom = (3-1) (2-1) = 2 Table value at 5% significance = 5.99

As the table value on 2 degree of freedom at 5% level of significance is greater than the calculated value, the hypothesis is accepted. There is no significant difference in causes of stress due to emotional problem and gender of the respondents.

Table: 4 Analysis of Reason for Get More Nerves

Particulars/Gender Male Female Total

Work life 18 22 40

Personal life 2 44 46

Society - 4 4

Friends - 10 10

Total 20 80 100

Application of chi-square test: Null hypothesis (Ho): There is no significant relation between gender and their reason for get more nerves. Calculated value (O-E)2 =1.219 E Degree of freedom = (4-1) (2-1) = 3 Table value at 5% significant level = 7.81 By applying chi-square test it is found that the calculated value is less than the table value at 5% level. Hence we conclude that there is no significant relationship between gender and their reason for get more nerves.

Table: 5

Analysis of various techniques comes out of stress

Particulars/Age

18-20years

20-22years

22-25years

Above 25 years

Total

Yoga/Exer - 2 - - 2

Particulars\Gender Male Female Total

Always 10 8 18

Sometimes 4 72 76

None 6 - 6

Total 20 80 100



cise

Mediation - - - 2 2

Pursue hobbies

14 20 2 - 36

Positive thinking

22 14 4 - 40

Others 10 8 - 2 20

Total 46 44 6 4 100

Application of chi-square test: Null hypothesis (Ho): There is no significant relationship between various techniques comes out of stress based on their age. Calculated value (O-E) 2 = 30.327 E Degree of freedom = (5-10) (4-1) = 12 Table value at 5% significant level =21.0 Since the calculated value is greater than the table value, null hypothesis is rejected and therefore it is clear that there is a significant relationship between age and the opinion of respondents regarding techniques come out of stress. Suggestion

Problems can be shared among their colleagues as it may help to reduce the level of stress.

Listen to music will help to reduce level of stress.

Adequate sleep and rest is essential for a mental strength. As a way to cope with stress, whenever there is high level of stress, the respondents are recommended to take adequate rest and sleep which will help to reduce headache.

Emotion can be avoided to reduce stress.

Yoga can be done regularly to reduce hypertension, and overcome from frustration.

Conclusion Stress is an adaptive response to a situation that is perceived as challenging or threatening to a person’s well being. Stress is the “wear and tear” our bodies experience as we adjust to our continually changing environment. Social support from family, friends and others is one of the most effective stress management practices. Thus, this study emphasizes stress management among college students in Vellore. As there are so many causes, if regular exercises, Yoga, Meditation and sharing of problems with others are done then the level of stress can be reduced. References 1. Harajyoti Mazumdar, Dipankar Gogoi, Lipika Buragohani and Nabanita Haloi. “A comparative study on stress and its contributing factors among the graduate and post-graduate students”. Advances in Applied Science Research, 2012, 3(1): 399-406. 2. Nitasha Sharma, Amandeepa Kaur. “Factors associated with stress among nursing students”. Nursing and Midwifery Research Journal, vol-7, no.1, January 2011. 3. Dr. Ahmad, M.Thawabieh, Dr.Lam. M.Qaisy. “Assessing stress among university students”- American International Journal of Contemporary Research- vol.2 no.2 February (2012). 4. Purna Prabhakar Nandamuri and Gowthami Ch. “Sources of academic stress- A study on management students”. 5. Sucharita Prada, Puspanjali Jean (2013). Stress Management. 6. Mc Graw Mill Organizational Behaviour Digumarti Bhaskara Rao, Stress Management.



A STUDY ON BEHAVIOUR AND ATTITUDE OF DAILY NEWSPAPER READERS IN DHARMAPURI DISTRICT

* Dr.G.Venkatasalam ____________________________________________________________________________________________________ * Asst. Professor of Commerce, Sri Vijay Vidyalaya College of Arts & Science, Dharmapuri Introduction

Reading news papers has become a part of everyday life of human beings. The reading habits help the people to make use of the leisure time usually. News papers are brought largely for their news value. As such they are most appropriate for announcing new products and the development of existing products. Because of the frequency of publication they are also well suited to “Opportunity Makers”.

News papers now days here become one of the most important sources of information for a reader to know the things in depth. No doubt other media like television and other sources provide information but they lack the inner course of action that is really wanted by the reader. There is a high competition between the English dailies in the state after “emergency of “reading attitude” in prudish. This made the newspapers to retain its hold in the market and to come with different strategies.

In recent year’s news papers has become an interesting profession in the field of communication. It’s is not only to spotlight the social political and economic problem but also to educate inform and instruct the general masses – news papers helps the government and public to inform news and here by educate and entertain the people.

The editors of the news papers are in a better position to define to interest of its reader, because of the interest shown in the reading of news papers. The number of journals and news papers is getting multiplied everyday life. Among the various news papers, there are certain news papers and journal, found popular among the public. It is essential to probe as to what factors the reader to prefer a particular newspaper, what factors motivated them to subscribe a particular newspaper and also to know what are the interesting aspects of the news papers. .The study also focused on the aspects of reader satisfaction with regard to the service of the news papers qualify of the news coverage of various dailies news papers in providing information. Customer Behaviour

Customer behavior may be defined as that behavior exhibited by people in planning customer behavior is an integral part of human behavior is a subset of human behavior, this does not mean that all human behavior is utility oriented. Human behaviour refers to the total process by which individual interest with their environment,

Customer behavior is the act consuming (or) using goods (or) services. Customer behavior results from individual and environment influences. Customer offer purchase the newspaper and services which they want others to accept.Behavior is therefore determined by the individual’s psychological make-up and the influence of others. Thus, behavior is the result of interaction of the customer personal influence and pressures extorted upon them by outside fore in the environment.Buyer behaviour is the process of which individual decide whether, what where, how and from whom to buy the newspaper and services. An understanding buyer and reader behavior is essential is marketing and planning, Factors influencing customer behaviour. The following are factors, which influencing the customer behavior.

1. Cultural factors 2. Social Factors 3. Personal Factors

Cultural Factors

Cultural factor expect the proudest and deepest influence on customer behaviour. We will look at the role played by the buyer culture, sub-culture and social class.

a. Culture

Culture is the most fundamental determinant of person’s wants and behaviour.

b. Sub - Culture

Each culture contains smaller group of sub-culture provide more specific identification and socialization (or) its member. There are four types’ sub-cultures nationality groups, and religious groups social groups and geographical areas.

c. Social Class Social class are relatively homogeneous

and enduring divisions a society. Which are hierarchically ordered and whose member share similar values, interest and behaviour. SOCIAL FACTORS

A customer’s behaviour is also influenced by the social factors, such as the customer preference group, family and social status.

a. Preference Group

A person’s behaviour is strongly influenced by many groups that have a direct (or) indirect influence on the person attitudes (or) behavior. Marketing try to identify the reference of their target customer’s people are significantly influenced their references groups in at least three ways preference groups. Exposed an individual to new behaviour and life styles they also influence



the persons attitude and self concept. And they create pressure for conformity that they may affect the person actual product and brand choices.

b. Family

Members of the reader family can exercise a strong influence of the reader preferences in countries where parents continue to live with their children their influence on reader preference can be substantial. A more direct influence on everybody buying behaviour is one’s spouse and children.

c. Role And Status The persons position is each group in

which participates can be defined in terms of roles status. People often choose types of communicate their role and status in society. Personal Factors

A reader’s decisions are also influenced by his (or) personal occupation. Economic circumstances, life style and personality and self-concept.

a. Age And Life–Cycle Stage People change types and service there by

over their life time.Consumption is also shaped by the stages of family life style.

b. Income Level A person’s income level will greatly affects

the product choice. c. Occupation

A person’s consumption pattern is also influenced/Markers try to identify the occupational groups that have above average interest in their types and service.

d. Life Style A person’s life style in his pattern living in

the world as expressed in his activities, to provide and whole person’s pattern of acting in the world.

e. Personality and Self Concept By personality we mean the person’s

distinguishing psychological characteristic the lead to relatively consistent and enduring responses to his (or) her own environment strong correction extent between certain strong personality types. Attitudes of the News Paper Readers

This study is to find out whether the readers give any priority to the different news papers. The customers and readers belong to different segments at the society.There are newspaper catering to the need and expectations of a segment at readers and customers. But majority of news papers and magazines try to bring in its fold all segment of customers and reader.

In fact the publishers of news papers employ different marketing strategies approaches in providing and sharing information with the general public and there by enlarge the size at market share. The aspect that attracts the readers should be given special preference in a particular newspaper and the classification of the readers on various aspects of reading of reading habits has been earmarked in this study.

It has become an undisputed belief that man community is many steps ahead of the women community in the general education system and reading habit of customers concerned with the news papers in that, to what type of news papers the readers one acquainted with due to slackness in the educational system of the nation, it is found that most at the reader are more comfortable with reading their regional language news papers.

Reading habit has become a more regular habit of the day, in the community as it provides them with a variety of values. Regular reading gives a sense of development in the personality by building confidence and improving the vocabulary of the person.Due to the availability of multiple news papers, customers are in one way or the other influence to make an unavoidable choice of reading news papers. The reading habits differ from person to person and place to prevalent among the educated community. Reading Habit of the Customres

Generally the news papers are being read in the leisure time. News papers give a more interesting and defiled information to the readers. The information provided by one newspaper cannot fully satisfy the reader.With the help of the study, it would be useful for the readers and the editors to know as to what extent the public’s gives baronage to particular news papers.

The special feature that attracts the public to subscribe for selected newspaper can be known from this study. The study would clarify. The general reading habits of the reader, the availability various news papers and its price the time and money spent by reader and the attractive features identify in each of the news papers. Need for the study

“Knowledge is power” in today’s world there is an increasing demand for knowledge especially after the economy has opened up and the world is becoming one small village. News papers are one effective medium, which provides relevant information.

The need for study arise from the fact there is hugs, untapped market in both urban and rural areas, and hence the news papers in order to expand it readership base wants to know about its attitude of news papers readers in Dharmapuri town. Significance of the study

If helps in obtaining sufficient background information where absolutely nothing is known about the newspaper.

If help in increasing the customer awareness and it also helps in the concept identification and exploration of the newspaper concepts identification and exploration of the newspaper concept.



If is read to identify relevant or salient features by preferring patterns, beliefs of opinions etc.

This research is useful in establishing priorities among categories of behavior and psychological variable like beliefs, opinions and attitudes.

The quantitative research is helpful in generally destining the customer’s satisfaction and reading habits for further investigation.

Objectives of the study

To study the attitudes of daily newspaper readers in to study area.

To find out he rating of “The news papers renders” compared to other dailies news papers in proving information.

To determine the rating of newspaper supplements in Dharmapuri town.

To study the satisfaction of the readers towards daily newspaper.

Sampling Design

The part of the project deals with the composition of the sampling unit sample size and sampling procedure. Population

In this study the population is the total How much number of people in Dharmapuri town.

Sampling Unit

The Sampling unit is the basic unit containing the element of the population to be the samples of business, organizations, household, customers and working executive’s etc.

Sampling Size The Study has taken sample size of 50 in Dharmapuri town.

Sampling Techniques Sampling techniques indicates how the samples are selected form the universe. The study has adopted convenience sampling for this study convenience sampling is one of the methods of non-probability sampling.

Sources of Data Collection Primary data

Primary Data are those data, which is collected newly for a particulars purpose. Hence the data are first handed original data collected from the people who are living in Dharmapuri Town.

Secondary Data

The Study has used secondary data from company profile, industry profile from internet, magazine journals, newspapers, reports and books. Recent Development of Indian News Papers The famous editor and owner of the Manchester guardian, C.P Scoff said by that the editorial and management sections of a newspaper

should work side by side, but with the editorial section always one step ahead. This is not it all the case with Indian news papers where more the growth and development, the more the power of the owner and through him of the manager, increases. A very few editors have much knowledge of the options of the new Technology with which their papers are fitted our or of the investment required. In recent years technology has brought the greatest changes and development in the Indian pros. With facsimile editions, the reach of news papers has increased and with photo composition their appearance has altered immeasurable for the better. The news rooms of the papers have changed with video terminals in some of them and with quiet instead of a noisy bustle. These change however, have tended to benefit the richer papers who have been able to raise the money usually form the banks to fiancé the new machinery. Even though some of the technological development like table top printing are almost tailor – make for small units they simply can’t think of buying and setting them up.

It is not always a question of money, however, with the aid of a Dutch foundation rural paper have been set two talks of Karnataka’s Shimogadistrict Sagarand Tirthholli one each in north Karnataka district and Coimbatore district of Tamil Nadu (Sayathya mangalam).

With the help of the foundation and the Research Institute of newspaper Development (RIND) at Chennai, the paper are set by computerized typesetting and printed on different days of the week in a rented building in sager. What is surprising is that none of these paper (Week lies) have crossed the 1000 mart in circulation, which would seem to indicate some flow in editorial Judgment of what the content of such paper should be in the bigger paper, on the other hand these is a great of confidence in illustrated periodicals, many of these hit the stands only to wither away magazines dealing with issues hang of by their eyelids and are rarely profitable.

What is both surprising and is that neither the newspaper profession nor the newspaper industry has made any serious attempt at foreseeing what the situation will be in the year 2007 in relation to machinery new print revenue turnover, circulation, advertising, etc., no one accepts such speculation to be 100 percent accurate but without some bench mark it is difficult to how the press and individual units in it can plan for the future.

Mean while it is perhaps constructive to set down what is characteristic of Indian press today and what is expected from it. It should be welded to public purpose and not only to private profit, even though sound economic is very important for a newspaper to survive and make innovative changes. The total number of students who pass out every year from about so university



Journalism deportments are about 1600 and majority of them do not enter newspaper, so against the expected need. Measured by the operation research group of newspaper by the year 2007 (86500 law and 1,70,000 high) candidates a large gap. Which has not yet courted any concern to newspaper proprietor’s editor and Journalist the press has been so instance about claiming it is right that it has not paid adequate attentions to accountability or responsibility this weakness is not unique to India but also to the world. Findings

Most of the respondents inferences that the highest level is 48% of the respondents are come under the age group are below 30 and the age lowest level is 24% of respondents are above 50 years old.

Out of 50 respondents 64% of them are below belong male and 36% of the respondents are female.

Out of 50 respondents 56% of them are graduates and 24% of them belong professional category.

Most of respondents 28% are buying news papers business purpose, as well as 4% of respondents are agriculturist.

Nearly 48% of respondents are comes under 10,000 to 15,000 income range. 44% of respondent’s income range is 5,000 to 10,000.

Out of 50 respondents’s majority 32% of them preferring Dinathanthi and follow by 20% of the respondents are preferring Dinamalar and Dinagaran.

Among 50 respondents 40% of the gave preference to opportunities colum, as well as 9%, 5% of respondents are preferred all news papers for domestic news.

Majority 64% of the news papers readers are buying their own perception and 8%, 4% of the respondents are influenced by the dealers, family members, friends and relatives.

Majority 66% of the respondents are reading news papers in morning time, as well as 20%, 12% of the respondents are reading at any time and evening time.

Majority 72% of the respondents are recommended the news papers to others.

Out of 50 respondents 38%of them are gave high level importance to buying the news papers. The lowers level is 10% of the respondents are preferring in quality news.

Most of the respondents 46% are then highest level of towards advertisement of the good 1% of the respondents are influenced by the very bad, no opinion.

Majority 74% of the respondents means to buy the news papers to know day to day information.

Most of respondent 54% are towards buying the news papers highly satisfied. 20% of respondents are gave no opinion.

Suggestions

The company should be reducing the price of the newspaper to certain extent to improve the sale.

The company may add more color page and innovative designs to affront new customers.

To cover all the area of customer the advertisement can be given through all Medias. To attract rural customer it is advisable to the newspaper company to give advertisement through D.D (Door Dharshan)

More economic oriented articles should be published.

Cinema news should be reduced.

The company should introduce more sponsorship programmers and use the advertisement factices to induce the people to prefer our news papers.

Conclusion

The newspaper has now a day created a greater impact on the created a greater impact on the day-to-day happenings. The survey project has been carried out to find out attitude of news papers readers in Salem and also to find out the satisfaction forwards the service provided to the reader and to know what a reader expects form the news papers.

This study provides an opportunity to know the ratings given to different aspects of coverage in different aspects of coverage in different English news papers the reasons that have caused to readers to go in for particular newspapers are apt information supplements and prompt delivery.

Man’s continuous search for knowledge has led to an increase in sources of information. Different media has come up to deliver this information to the people as per their requirements. The vital role played by news papers in communicating. Various information of different people have been analyzed in the limelight of the customer’s reader’s attitude. News papers hence have become very effective media, which provides news, which is authentic and accurate. The position of news papers has to be strengthened in the minds of the people, by evaluating the finding and suggestions made based on the sample study.

References

1. Arnold, Edmund C – Modern News Papers Design, New York; Harper & Row.

2. Baskaran – India Institute of Management. Himalaya publishing House – Bangalore P.223, 254.

3. Bass Frank M, “The Theory of Satiation Preference and Newspaper Switching. Journal of Marketing, Feb 2001, P-20.



4. Bettman, Jamco. Ran, Information Procession Theory of Customer Choice, Addition, Wisely. 2000. P-G7.

5. Czepiel John. A, and Larry Rosenbery J. Poading, Marketing Management, Himalaya Publishing House. Bombay.

6. David C. London and Albert J. Bella Bitta, Customer Behaviour – MC Grow Hill International Editors E. Fourth P.5.

7. Essentials of Customer Behaviour, Drydan Press P.406.2000.

8. Herbert Lee William “Newspaper Organization and Management”, The Lowa State University Press – Surjeat Publications.

9. K.P.K Unni-“State Customer Protection Council”, Article 2002; P-14.25.

10. Lawrence, “Earn Good Money Selling a Quality Newspaper”, Indian Journal of Marketing P-11-18.

11. Mr.K. Chandraseker, “Consumer Attitude Analysis with Respect to Reading of News Papers”, Indian Journal of Marketing, February, 2006 p-27-32.

12. N. Sivakumar, Dr.D. Raghunatha Reddy, Market Potential for Newspaper in urban and semi-urban

Areas”, Indian Journal of marketing November 2005 P-3-11.

13. Philip Kotler - “Marketing Management Analysis, Planning, Implementation and Control”, Prentice Hall – New Delhi.

14. S.Rajamohan, “A Study or Extent Customer’s Awareness is Madurai unpublished M.B.A, project work, Submitted to Madurai Kamaraj University, Madurai, 1996.

15. Schiffman, Leslle & Lazer Kanuk – “Consumer Behaviour”, India Pvt. Ltd, New Delhi – 2000.

16. Shugan – Motivation and Decision Making for Customer Satisfaction, P.212.253.

17. Webster, Fredrick K.F., Marketing for Manager and Williams, Terrel op lit p-93.

18. William Terrell G – Customer Behaviour, Fundamentals and Strategies, West Publishing Company. P.14.

19. Yorchak – Customer Behaviour and Management”, Himalaya publishing press P.117-198



A STUDY ON STRESS MANAGEMENT WITH SPECIAL REFERENCES TO INFORMATION TECHNOLOGY

PROFESSIONALS IN COIMBATORE CITY * Dr. S.Gomathi *Ms. B.Saranya

____________________________________________________________________________________________________ *Assistant Professors in Commerce, Dr. N.G.P Arts and Science College, Kalapatti, Coimbatore.

Abstract Today workplace stress is plays a vital role in the organizations. The Stress has become a part of life for the employees in every organisation. Especially, the IT Sector people spend more time at work place and they have to complete their project on time. Obviously, stress level of employees has been increased due to workload. Stress is an excess of demand made upon the adaptive capabilities of the mind and body and is seen in the form of a physical demand, a mental demand or both. Hence, the present study focused on stress level of IT professionals. The major findings of the study were 90 percent of the employees receive proper guidance from the management, 62.8 percent of the employees are satisfied with the work load given in work place and 56.4 percent of the employees feel more stress in dayshift. The ANOVA result shows that there is a significant difference between the age group of respondents and the increase stress or stress related illness. There is no significant difference between the gender of respondents and changing the company to reduce stress. From the Chi- Square analysis is found that there is no significant difference between the salary and the shift which the professionals feels more stress. There is a significant difference between the over time in the work place and the income earned by the IT professionals. Keywords: Stress, IT Professionals, Work Place, Health Issues

Introduction

Stress is a universal element and individuals have to face it in every movement of life. The employees working in different organizations have to deal with stress. Normally, the employees working in information technology sector spend normally more time at work than any industry due to the project dead lines and the desire to complete the project successfully. So when compared to other sector the stress level of the employees has been increased due to workload. Stress is an excess of demand made upon the adaptive capabilities of the mind and body and is seen in the form of a physical demand, a mental demand or both. The stress creates many issues towards health like heart diseases, ulcers, arthritis and increased frequency of drinking and smoking, cardiovascular, gastrointestinal, endocrine and other stress related disorders. It also creates Psychological and behavioural problems such as change of moods, inferiority complex, widespread resentment, reduced aspirations and self esteem, reduced motivation and job skills. Organisational problems like job dissatisfaction, behavioural problems, and production turn over, increased absenteeism, increased accidents, and lower productivity etc., Hence, the organisation have to take remedial measures to overcome the stress level of employees. They can introduce more job oriented training programs, which improve employee’s skill and their confidence to work effectively. Encourage open channel of communication to deal work related stress. Undertake stress audit at all levels in the organization to identify stress area improving conditions of job and alleviating job stress. Objectives of the study Primary Objectives

The main objective of the study is to analyze the stress level of IT professionals in Coimbatore city.

Secondary Objectives To study about the occupational stress of the IT

professionals in work place. To study the various factors causing stress and

their influence on the performance of employees.

To analyze the physical, behavioral and emotional responses of IT employees in stress affected domains.

To ascertain the stress management techniques adopted by the organizations and the responses of the employees.

Scope of the study Most of the graduates who strive for their

career in the IT sector which is the one of the growing sector in economic of the country.

The researcher to gain familiarity with a phenomenon, which is required to know the practical situation.

The study gives the entire idea about the present situation in the IT companies.

The study identifies the factor that influences the causes of stress and also gives the solution how to cope up with stress.

Future research can be performed in other industries.

Future research can include all dimensions that are relevant to work stress.

Research Methodology Research Design Descriptive and analytical research design was used in this study. Sample Size

Total population is infinite. The sample size of the population is 250 respondents. Sampling Method



Sampling method used for the study was judgment sampling. Sources of Data Primary data In this study the primary data was collected through a questionnaire from 250 employees in the IT Company. The period of study was from Jan to June 2014. Tools Used For Data Analysis

Simple percentage Descriptive Statistics Chi-square test ANOVA Karl Pearson’s coefficient of correlation

Limitation of the study The number of respondents included for the

study is limited owing to the time constraints. The workers were busy with their work and

had little time available for an interview or conversation.

The respondents might not have reveals their real data due to restriction of certain concern.

Fear on the part of the respondents may have lead to bias in the responses given by them.

The study is restricted only in and around Coimbatore district

Review of Literature Muhammad Naeem Shahid and DR. Nadeem Sohail (2010)1 “Work Stress And Employee Performance In Banking Sector Evidence From District Faisalabad, Pakistan” in their article they analysed the impact of stress over the employee performance. For this purpose 150 questionnaires were filled by the bankers from the district Faisalabad. The results show that all the components of stress cause great stress in bankers and then decrease their performance. These stresses contribute to decreased organizational performance, decreased employee overall performance, decreased quality of work, high staff turnover and absenteeism due to health problems such as anxiety, depression, headache and backache. K. S. Sathyanaraynan and Dr. K. Maran (2011)2 “A Study On Stress Management In IT Industry” this paper examined the stress level of IT people and it is found that workload, Vulnerability and low physical condition were considered as important factors and it is also found that there is significant correlation between workload and emotional exhaustion. There is no significant difference in stress variable with reference to gender. Finding of the Study Simple Percentage 90% receives proper guidance from the

management. 86.8% don’t have shift in their job 69.2% have stress during over time in their

jobs.

62.8% are satisfied with the work load given in work place.

56.4% feel more stress in dayshift. Descriptive

The descriptive statistics indicates the changing your company has the highest mean value 2.416.

Chi-Square

There is no significant difference between the salary and the shift which the professionals feels more stress.

There is a significant difference between the over time in the work place and the income earned by the IT professionals

There is no significant difference between the experience and the performances of task in short period.

ANOVA There is a significant difference between the

age group of respondents and the increase in work place stress.

There is a significant difference between the age group of respondents and the increase stress or stress related illness.

There is no significant difference between the gender of respondents and changing the company to reduce stress.

There is a significant difference between the age group of respondents and grinding teeth due to stress.

Correlation

There is correlation between the age of the respondents and having difficulties in relaxing on holiday or vacations.

There is no correlation between the gender of the respondents and reduce in memory power.

Suggestion

Proper required resources and infrastructure facility have to be provided to staff to avoid tension at work place and it helps to avoid stress in future.

Most of the IT professionals are getting stress when the job is not completed on time so sufficient time should be provided for them to finish the job.

Time management techniques might be applied for reduce stress.

Over Work load might be reduced. Staff work can be recognized at work place and

give either reward/ award in order to motivate them to work better.

Superior has to allot job on task based on their personal interest and qualification to satisfy them in their job to reduce stress and to achieve their personal goal.

Conclusion The study attempts to identify the job related stress pertaining to employees working in IT Sectors. It is also identified the occupational stress, various factors causing stress and their influence on



the performance of employees and to analyze the physical, behavioural and emotional responses of IT employees in stress affected domains. The data has been collected from 250 respondents through well structured questionnaire. The major findings of the study were 90 percent of the employees receive proper guidance from the management, 62.8 percent of the employees are satisfied with the work load given in work place and 56.4 percent of the employees feel more stress in dayshift. References 1. Muhammad Naeem Shahid and DR. Nadeem Sohail

“Work Stress and Employee Performance in Banking Sector Evidence from District Faisalabad, Pakistan” Asian

Journal of Business and Management Sciences, Vol. 1 No. 7, 2010. pp 38-47. ISSN: 2047-2528

2. K. S. Sathyanaraynan and Dr. K. Maran “A Study on Stress Management In IT Industry” Journal of Management Research and Development (JMRD), Volume 1, Number 1, January - April (2011), pp. 21-26. ISSN 2248 – 937X.

3. Gender Difference in stress among bank officers of Private and Public Sector; The ICFAI journal of Marketing research, Vol.VIII, No.2, 2009 ,pp 63-69.

4. Khetarpal & G. Kochar, “Role Stress and Prevention” the Internet Journal of World Health and Societal Politics, 2006, Vol. 3 No. 1, pp 35-43.

5. http://www.ssrn.com 6. http://www.epsco.com

7. http://www.googlescholar.com

http://www.ssrn.com/

http://www.epsco.com/

http://www.googlescholar.com/



E-GOVERNANCE AS A POTENTIAL AREA OF RESEARCH

*Dr. M.R.Biju ____________________________________________________________________________________________________

*Associate Professor, P.G. and Research Department of Political Science, Sree Narayana College, Kollam, University of Kerala

Abstract

Several dimensions and factors influence the definition of e-governance or electronic governance. The word “electronic” in the term e-governance implies technology driven governance. E-governance is the application of information and communication technology (ICT) for delivering government services, exchange of information communication transactions, integration of various stand-alone systems and services between government-to-customer (G2C), government-to-business (G2B), government-to-government (G2G) as well as back office processes and interactions within the entire government framework. Through e-governance, government services will be made available to citizens in a convenient, efficient and transparent manner. The three main target groups that can be distinguished in governance concepts are government, citizens and businesses/interest groups. In e-governance there are no distinct boundaries.

Against this backdrop, an attempt has been made in this paper to explore the potentials and prospects of E-Governance as an emerging area of innovative research both in the managerial and social sciences disciplines all over the globe. This paper has broadly been classified under three major heads – Part-I : unfolds the evolution of e-governance in a global perspective, Part-II : evaluates four basic models available with e-governance; Part-III : focuses on different areas and applications of e-governance and the concluding part presents the future prospects of e-governance – globally and nationally.

Part-I Evolution and Phases of E-Governance

Global shifts towards increased deployment of IT by governments emerged in the nineties, with the advent of the World Wide Web (WWW). The technology as well as e-governance initiatives have come a long way since then. With the increase in Internet and mobile connections, the citizens are learning to exploit their new mode of access in wide ranging ways. They have started expecting more and more information and services online form governments and corporate organizations to further their civic, professional and personal lives, thus creating abundant evidences that the new ‘e-citizenship’ is taking hold.

The concept of e-Governance has its origins in India during the seventies with a focus on development of in-house government applications in the areas of defense, economic monitoring, planning and the deployment of IT to manage data intensive functions related to elections, census, tax administration etc. The efforts of the National Informatics Center (NIC) to connect all the district headquarters during the eighties was a very significant development. From the early nineties, IT technologies were supplemented by ICT technologies to extend its use for wider sectoral applications with policy emphasis on reaching out to the rural areas and taking in greater inputs from NGO’s and private sector as well. There has been increasing involvement of international donor agencies under the framework of e-governance for development to catalyze the development of e-governance laws and technologies in developing countries.

While the emphasis has been primarily on automation and computerization, state governments have also endeavored to use ICT tools into connectivity, networking, setting up systems for processing information and delivering services. At a micro level, this has ranged from IT automation in individual departments, electronic

file handling and workflow systems, access to entitlements, public grievance systems, service delivery for high volume routine transactions such as payments of bills, tax dues to meeting poverty, alleviation goals through the promotion of entrepreneurial models and provisions of market information. The thrust has varied across initiatives, with some focusing on enabling the citizen-state interface for various government services, and others focusing on bettering live hoods. Every state government has taken the initiatives to form an IT task force to outline IT policy document for the state and the citizen charters have started appearing on government websites.For governments, the more overt motivation to shift from manual processes to IT-enabled processes may increased efficiency in administration and service delivery, but this shift can be conceived as a worthwhile investment with potential for returns.

Phases of E-Governance Gartner, an international consultancy firm,

has formulated four – phase e-governance model. This can serve as a reference for governments to position where a project fits in the overall evolution of an e-governance strategy. An effort as tremendous as complete realization of e-governance has to be addressed in these phase. This approach would allow for retrospection after each phase, and the ability to retrace steps if required, within a feasible frame of time and money. The design and purpose of each step would have to serve the relevant needs of all G2C, G2B and G2G sectors. Phase I –Presence

This first phase calls for making the intentions and objectives of the government known. Development of an inclusive government website, or a network of sites dedicated to different ministries and departments would set the stage for further advancements. These sites would convey the government’s initiatives, providing information such as official addresses, working hours, as well as

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forms and applications to the public, economic reviews, corporate regulations for business and budgetary allocations and spending as a reference for government agencies. With this first phase, the very critical task of building the infrastructure, such as telecommunications would be undertaken. Phase II –Interaction

This phase would allow for basic interaction with the government. Besides hosting search engines on the sites for easy navigation, information detailing social records and job application forms for the public, permit and license documentation for businesses and census details, submission of requests and approvals to the centre by local government officers would have to be provided. The task of building the underlying infrastructure would have to be sustained through these two stages, allowing for rapid implementation of advanced applications as endorsed by the consequent phases. Phase III –Transaction

This phase onwards would signify direct interaction of the government and relevant entities. With the infrastructure in place, complete online service suites can be put forth for the public, businesses and governmental agencies. Services for the public such as bill and fine payments, license renewal, aggregating opinion etc online procurement tax returns etc for businesses, cooperative budget preparation, tax records, etc for governmental agencies can be envisaged here. Phase IV –Transformation

This final phase would strive to achieve the true vision of e-Governance. A single point of contact to constituent

entities would provide an integrated platform for government services and organization totally transparent to citizens and businesses.

Focus on ‘virtual agencies’ where government information is readily available to all allowing a seamless interface to respective agencies involved in the transactions.

State-of-the-art Intranets linking government employees in different agencies extranets allowing seamless flow of information thereby facilitating collaborative decisions among government agencies, NGO’s and the public.

The following factors have to be taken into account when examining the risk of implementing e-governance. Political stability: Democracy or dictatorial

regime Level of trust in government: perception of

service levels The importance of government identity:

fragmentation or integration Economic structure: education,

agriculture, industry or service

Government structure: centralized or decentralized

Different levels of maturity: weakest part of the chain determines speed

Constituent demand: push or pull Part-II Four Basic Models of E-Governance

Generally four basic models are available

government-to-citizen (customer),

government-to-employees,

government-to-government and

government-to-business. 1. Government to customer The goal of Government to Customer (G2C) e-Governance to is offer a variety of ICT services to citizens in an efficient and economical manner, and to strengthen the relationship between government and citizens using technology. There are several methods of Government to Customer e-Governance. Two-way communication allows citizens to instant message directly with public administrators, and cast remote electronic votes (electronic voting) and instant opinion voting. Transactions such as payment of services, such as city utilities, can be completed online or over the phone. Mundane services such as name or address changes, applying for services or grants, or transferring existing services are more convenient and no longer have to be completed face to face. G2C e-Governance is unbalanced across the globe as not everyone has Internet access and computing skills, but the United States, European Union, and Asia are ranked the top three in development. The Federal Government of the United States has a broad framework of G2C technology to enhance citizen access to Government information and services. Benefits.Gov is an official US government website that informs citizens of benefits they are eligible for and provides information of how to apply assistance. US State Governments also engage in G2C interaction through the Department of Transportation,Department of Public Safety, United States Department of Health and Human Services, United States Department of Education, and others. As with e-Governance on the global level, G2C services vary from state to state. The Digital States Survey ranks states on social measures, digital democracy, e-commerce, taxation, and revenue. The 2012 report shows Michigan and Utah in the lead and Florida andIdaho with the lowest scores.[5] Municipal governments in the United States also use Government to Customer technology to complete transactions and inform the public. Much like states, cities are awarded for innovative technology. Government Technology's "Best of the Web 2012" named Louisville, KY, Arvada, CO, Raleigh, NC, Riverside, CA, and Austin, TX the top five G2C city portals.

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European countries were ranked second among all geographic regions. The Single Point of Access for Citizens of Europe supports travel within Europe and eEurope is a 1999 initiative supporting online government. Main focuses are to provide public information, allow customers to have access to basic public services, simplify online procedures, and promote electronic signatures. Asia is ranked third in comparison, and there are diverse G2C programs between countries. Singapore’s eCitizen Portal is an organized single access point to government information and services. South Korea’s Home Tax Service (HTS) provides citizens with 24/7 online services such as tax declaration. Taiwan has top ranking G2C technology including an online motor vehicle services system, which provides 21 applications and payment services to citizens.

2. Government to employees E-Governance to Employee partnership (G2E) Is one of four main primary interactions in the delivery model of E-Governance. It is the relationship between online tools, sources, and articles that help employees maintain communication with the government and their own companies. E-Governance relationship with Employees allows new learning technology in one simple place as the computer. Documents can now be stored and shared with other colleagues online. E-governance makes it possible for employees to become paperless and makes it easy for employees to send important documents back and forth to colleagues all over the world instead of having to print out these records or fax G2E services also include software for maintaining personal information and records of employees. Some of the benefits of G2E expansion include: E-Payroll- maintaining the online sources to view paychecks, pay stubs, pay bills, and keep records for tax information. E-benefits- be able to look up what benefits an employee is receiving and what benefits they have a right to. E-training- allows for new and current employees to regularly maintain the training they have through the development of new technology and to allow new employees to train and learn over new materials in one convenient location. E-learning is another way to keep employees informed on the important materials they need to know through the use of visuals, animation, videos, etc. It is usually a computer based learning tool, although not always. It is also a way for employees to learn at their own pace (distance learning) . Although, it can be instructor lead. Maintaining records of personal information- Allows the system to keep all records in one easy location to update with every single bit of information that is relevant to a personal file. Examples being social security numbers, tax

information, current address, and other information. 3. Government to Government From the start of 1990s e-commerce and e-product, there has rampant integration of e-forms of government process. Governments have now tried to use their efficiencies of their techniques to cut down on waste. E-government is a fairly broad subject matter, but all relate to how the services and representation are now delivered and how they are now being implemented. Many governments around the world have gradually turned to Internet Technologies (IT) in an effort to keep up with today’s demands. Historically, many governments in this sphere have only been reactive but up until recently there has been a more proactive approach in developing comparable services such things as e-commerce and e-business.[11] Before, the structure emulated private-like business techniques. Recently that has all changed as e-government begins to make its own plan. Not only does e-government introduce a new form of record keeping, it also continues to become more interactive to better the process of delivering services and promoting constituency participation. The framework of such organization is now expected to increase more than ever by becoming efficient and reducing the time it takes to complete an objective. Some examples include paying utilities, tickets, and applying for permits. So far, the biggest concern is accessibility to Internet technologies for the average citizen. In an effort to help, administrations are now trying to aid those who do not have the skills to fully participate in this new medium of governance, especially now as e-government progressing to more e-governance terms An overhaul of structure is now required as every pre-existing sub-entity must now merge under one concept of e- government. As a result Public Policy has also seen changes due to the emerging of constituent participation and the Internet. Many governments such as Canada’s have begun to invest in developing new mediums of communication of issues and information through virtual communication and participation. In practice this has led to several responses and adaptations by interest groups, activist, and lobbying groups. This new medium has changed the way the polis interacts with government. 4. Government to Business

The Main Goal of Government to Business- is to increase productivity by giving business more access to information in a more organize manner while lowering the cost of doing business as well as the ability to cut “red tape”, save time, reduce operational cost and to create a more transparent business environment when dealing with government.

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Lowering cost of doing business- electronic transaction save time compared to conducting business in person.

Cutting red tape- rules and regulation placed upon business normally take time and are most likely to cause a delay- in (G2B) will allow a much faster process with less delays and decreasing the number of rules and regulations

Transparency- More information will be available, making G2B easier to communicate.

Government to business Key points: 1. Reduce the burden on business by

adopting a process that enables collecting data once for multiple uses and streamlining redundant data.

2. Key lines of business: regulations, economic development, trade, permits/licenses, grants/loans, and asset management.

Difference between G2B and B2G

Government to business (G2B)- Refers to the conducting of transactions between government bodies and business via internet.

Business to government (B2G)- Professional affairs conducted between companies and regional, municipal, or federal governing bodies. B2G typically encompasses the determination and evaluation of proposal and completion of contract.

The overall benefit of e-governance when dealing with business is that it enables business to perform more efficiently.

Part-III DIFFERENT AREAS OF E-GOVERNANCE

Today area of e-governance is very wide. E-Governance is implemented by government in almost every field. From urban states to rural areas and from politics to teaching-Governance has spread its root everywhere. Either its public or private sector, common man or businessman all is largely dependent on e-governance. Here we have presented different areas where e-governance is widely used. In the following section, we are describing the projects used in urban and rural areas of India. E-Governance projects in urban areas:- Transportation:-Services provided by e-governance in this area are:- Issuance of Time Table of buses. Provision of booking facility for Interstate

transport. Transportation Improvement Program. Regional Transportation Plans. Congestion Management Process. Transportation Demand Management. Various projects:-

1.CFST:-Citizen Friendly Services of Transport Department by Andhra Pradesh government to provide services such as Issue of learner licensees, Issue of driving licenses,Renewal of driving licenses etc 2.Vahan and Sarathi:-The backend applications Vahan & Sarathi help in speeding the overall work flow in the transport department but Tamil Nadu govt. 3.OSRTC:-The Orissa State Road Transport Corporation project was started to provide transport related facilities online 4. HRTC: -Himachal Road Transport Corporation project is for online bookings, cancellation of seats, for enquiry about departure of buses, availability of seats and buses etc. Online payment of bills and taxes:- Services provided by e-governance in this area’s:- Online payment of bills and taxes-Services provided by e-governance in this area’s:- Online Transaction Payment of Bill Payment of taxes Payment of house EMIs Various Projects:- 1. FRIENDS: -This project is started by Kerala Government for its citizens to make online payment of electricity and water bills, revenue taxes, license fees, motor vehicle taxes, university fees, etc 2. E-SEVA:-Electronic seva by Andhra Pradesh government to pay utility bills, avail of tradelicenses and transact on government matters at these facilities. 3. BWSSB ganakeekruthaGrahakaraSeve, water billing, and collection system: -This e-governance project is started by the Bangalore government. In this every month bills of houses are generated through BGS software 4. DOMESTIC: -This project is started by Daman and Diu. It is an Electricity Billing System for domestic consumers. 5. E-Pourasabha Municipal Application:- E-Pourasabha is an e-governance application for urban local bodies. It is implemented for Tax Collection system, Property Tax, Water Tax etc. 6. E-Mitra by the Government of Rajasthan 7. SAMPARK by Chandigarh government 8. E-Suvidha by the government of Uttar Pradesh Information and public relation key services:-With these kinds of projects people can get any kind of information with just a single click. Various projects:- 1. LokMitra:- By the government of Himachal Pradesh. The services offered include information about vacancies, tenders, market rates, matrimonial services, village e-mail. 2. Mahiti Shakti:- By Gujarat government to provide information related to its working to its citizens. 3. OLTP:- By Andhra Pradesh government. With this project 16 government departments in Andhra Pradesh are connected on a single network. Municipal services:-Services provided are as:-



House Tax Assessment, Billing and Collection.

Maintain records of Land & property. Issue of Death Certificates. Registration & Attorneys of properties. Review and approval authority for site

plans Various projects:- 1. E-Panjeeyan:- It is started by Assam government to deals with the computerization of the Document registration work at Sub Registrar Office. 2. SDO Suite:- By Assam government. This system helps in issuing various certificates like Land sale Permission, Legal heir certificate, Issue of Passport Verification Certificate, Birth and Death Report, 3. Palike:- The Palike- property tax software capture the basic details of the owner and property, payment details for which receipt is generated and given to the citizen was hosted. 4. Rural Digital Services (Nemmadi):- Provide services such as issuance of certificates, issuance of orders in respect of Social Security Schemes such as old age pension, widow pension, freedom fighter pension etc. 5. TRIS:- Tripura Registration Information System is meant for capturing of online photograph and bio-metric impression, Service for visit commission, request for duplicate document, searching of document etc. Roads and traffic management:-Services provided by this type of e-governance is:- Network of Roads & Bridges Road construction and their maintenance Traffic Management Safety ,Accident and pollution control Various projects:- 1. BHOOSWADEENA:- This project is computerized land acquisition system with tight integration with BHOOMI. The purpose of this project is to develop a system to automate the process Land acquisition 2. I-Geo Approach Internet Geometrics:- Purpose of this project is development of Geometrics based web enabled decision support system for Rural Road Network of Madhya Pradesh. 3. RSPCB (Rajasthan State Pollution Control Board);- The project relates to establishment of computer based system by fulfilling the Hardware. The project will be beneficial to the Government, Central Pollution Control Board, RSPCB itself. 4. CFST:-Citizen Friendly Services of Transport Department This project is started by the government of Andhra Pradesh to keeps check on pollution control, road safety, road signs and safety of its citizens. Areas of e-governance in rural areas:- In rural areas e-governance has its very powerful impact. Here, from agriculture to local information everything is done through e-governance. Agriculture:-Following are the projects used in Agriculture.

1. Gyandoot: In the State of Madhya Pradesh it is an Intranet-based Government to citizen (G2c) service delivery initiative. 2. BELE:-It is a web-based application with 3-tier architecture for capturing and monitoring the major activities and services. 3. AGMARKNET:- It is a project approved by Department of Marketing & Inspection (DMI), Ministry of Agriculture, and Governmentof India. 4. SEEDNET:-It is a SEED informatics network under ministry of Agriculture, Government of India. The project was started in Chhattisgarh in the month of July' 2008 for Kharif season. 5. Mustard Procurement Management System:-It is started by Haryana government. It Conducted the Survey of mustard sown by the farmersand feed this data in to the database of the system. This data is then processed and generate coupons having information of dates on which farmer may visit in the mandi to sale his mustard. Local information: -For local information such as prices of seeds, fertilizers, loan rates etc. government has started e-governance service in this area also. Various projects:- 1. E-JanSampark:- Services & Information accessible to the common man in his locality to meet his basic need. This project is started by Chandigarh. 2. Prajavani:- it is started by the Government of Andhra Pradesh.it is a Web based On-line Monitoring of Public Grievances. 3. WebPortalsforHyderabadandCyberabadPolice:- It is designed by hyderabad, developed and hosted with many exciting public utility features like Safety tips for all citizens, verifications status of Passports, Stolen vehicles etc. 4. Intranet Portal of Chandigarh Administration:-It provides an environment where administration could interact. 5. E-DISHA EkalSewa Kendra:- This project is started by Haryana government. E-Disha to deliver any service from any counter/location, so at the peak requirements of services, counters can be extended as per crowd. 6. E-Samadhan:- the Government of Himachal Pradesh stressed upon to develop grievances redressed mechanism so that the genuine public grievances may be redressed in a time bound manner. Disaster management:-To manage disaster, is a very big challenge for the government as these are natural phenomena and are unpredictable. To deal with these disasters, much state government has started e-governance service for this. Project in this area is:- 1. Chetana:- It is a Disaster management system which has been started in the state of Bihar to deal with natural disasters such as flood and earthquake. Land record management:-By facilating e-governance service in this area, millions of land records can be maintain in a very short time span.



Major projects in this area are:- 1. Bhoomi:- It is the first e-Governance land records management system project which is successfully implemented for the benefits of the common man by the Government of Karnataka. 2. Comprehensive Modernization of Land Records(CMLR):- This project is started by the government of Andhra Pradesh. It allows integrating functions of property registration, mutations and updating of field survey maps. 3. Land Record Computerisation:- The objective of the project is to computerize fresh allotment, land transfer, regularisation of occupied land etc.related actives of the Dept.of Land Management at district level. 4. Gyandoot:- it is an intranet in Dhar district of Madhya Pradesh, connecting rural cybercafés catering to the everyday need s of the masses. 5. Land Records Management System State Government of Punjab. 6. Devbhoomi State Government of Uttarakhand. 7. Bhu-Lekh –UP State Government of Uttar Pradesh. 8. E-Dhara State Government of Gujarat. Panchayat:-Services provided by e-governance in this area are:- Issue of Birth/Death certificate. Application for inclusion of name in Voter

list. Conducting various welfare schemes for

the poor and needy sections of the society. Preparing district wise planning,

implementing those plan, and review for success. To provide wage employment to the

needy from amongst the poorest section of the rural

society. Rural water supply and sanitation. Various projects:- 1. E-Gram Viswa Gram Project:-This Project Initiates e-Gram Project connecting 13716 Gram Panchayats and 6000 Citizen Common Service Centres as a part of the e-Gram connectivity Project by Gujarat. 2. RajNidhi:- "RajNidhi" is a web enabled information kiosk system developed jointly by Rajasthan state's Department of Information Technology and Rajasthan State Agency for Computer Services (Raj Comp). 3. Raj-SWIFT:-The Rajasthan State’s Department of Information Technology (DoIT) has developed Government’s own Intranet called as "raj-SWIFT"]

4. Support for P & RD sector in Assam:-NIC, Assam State Centre has been identified as the technical consultant for e-Governance solution and Computerization of the Department of Panchayat and Rural Development. 5. SamanyaMahiti by the State Government of Karnataka E-GOVERNANCE IN HEALTH Service provided by these projects are as:- Availability of medicines Special health camps Facilities at Anganwadi canters Various projects:- 1. Online Vaccination Appointment for International Traveller: -Citizen centric application for the purpose of vaccination of the persons proceeding abroad and issuance of International Health Certificate 2. SMS based Integrated Disease Surveillance System:- it is an SMS based Integrated Disease Surveillance System facilitates to report the occurrences of disease, number of persons affected from the area of occurrences immediately to the concerned authority. 3. Hospital OPD Appointment:-Hospital OPD Appointment System is another welfare measure undertaken by Chandigarh Administration to make life of citizens simpler. 4. NLEP (National Leprosy Eradication Program):- NLEP is web based application developed for monitoring of leprosy cases in Chhattisgarh State. 5. HEALING:-it is a Health Information system for Kerala Government which is developed and implemented for Medical Health & Family Welfare department E-GOVERNANCE IN EDUCATION:- Providing basic education (elementary, primary, secondary) to Children Providing computer education to children Results for 10th& 12thclasses Information on eligibility for “Distribution

of books” scheme Various projects:- 1. CASCET:-This project is started by the Karnataka government for Education Department. 2. Online Scholarship Management System:-It is meant for the purpose of distribution of scholarships and fees reimbursement. 3. AISES (All India School Education Survey):-this project is started by Assam government. This project is used for surveying the number of schools in district. Census



4. CAPnic:- This is for the Centralized seat allotment process for professional courses and come under Kerala. 5. VHSE Examination Management System:-it has been developed to handle pre-examination related activities of the vocational higher secondary education. Conclusion

Since Internet Technology has evolved rapidly in the last few years, there is a need to think strategically about where we want to be in the future. As time goes on, new technologies will continue to develop at a rapid pace and we must be flexible enough by showing quick response to the technology explosion. The state that are faster in adopting the technology have started reaping the benefits already. Process level changes are required before rushing to the web to launch the ‘Government Online’. At the same time the government managers should quickly learn to use technology fueled management tools for administrative efficiency and use them for a more value added service to the citizens. To make the futuristic vision work, there is a need for

collaboration among e-Governance virtual communities. This demand more political and organizational will take hard decisions, change themselves and learn to build capacities for e-Governance. ‘Outdated’ regulations and procedures are to be removed before launching the project. The above issues and challenges are not beyond our capacity to resolve, but they need immediate attention. References 1. Minocha, Good Governance, The IJPA, Sept.1998 2. Jayant V., Implementing E-Governance, The Hindu, Nov.8, 2000 3. Ashok Mukhopadhyay, IT and Administrative Culture in India, The IJPA, Sept.2000 4. The IT Act 2000, Chapter-3 5. http://en.wikipedia.org/wiki/E-Governance 6. N.Yadav & V.B.Singh, E-Governance : Past, Present and Future in India, International Journal of Computer Applications, Sept.2012 7. shodhganga.inflibnet.ac.in/bitstream/10603/2019/10/10_chapter-3.pdf

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BRANDS AND THE SELF *Mrs. S. Gayathri **Dr. A.S.Saranya

____________________________________________________________________________________________________ *Assistant Professor, Dept of Commerce, Ethiraj College for Women, Chennai – 600 008 **Associate Professor, Dept of Commerce, Ethiraj College for Women, Chennai – 600 008

Abstract Consumer-brand relationship (CBR) has attracted interest and relevance since late nineties of the 20th Century. More and more organizations are interested in acquiring knowledge about how consumers relate to brands, why some brands are preferred to others and even loved. That customers evaluate brands, develop image of brands, and have varying degrees of loyalty to brands is well established (e.g., Park 1996; Kelley, 1986). Fournier (1998) proposed that customers not only have relationships with highly used brands but that there are different dimensions to this relationship. While studies validate the existence of some dimensions of brand relationships (e.g., Thomson Craig 1996), there is no work that substantiates the existence of all these relationship dimensions amongst young consumers and the influence that these relationships have on brand repurchase or switching intentions. Susan Fournier’s (1998) Brand Relationship Quality(BRQ) scale which comprises of seven brand relationship dimensions namely Interdepence,Commitment ,brand partner quality, self connection, nostalgic attachment, intimacy(consumer -brand) and intimacy (brand- consumer) has been adopted for the purpose of the study. Key words: brand relationship, loyalty, attitude, intimacy, nostalgic attachment, self connective attachment, brand partner quality.

Introduction In the current business scenario, markets are getting more and more crowded with companies competing with similar products and services (Tripathi,2009). In such a highly competitive environment, organizations should protect the long term interests of their consumers so that sustained brand – consumer relationships would enhance the company’s profitability, through increased sales, better consumer satisfaction, loyalty and retention. All organizations are continually looking for ways to increase customer loyalty through long term repeat purchase business, where a high degree of involvement from the customers is necessary (Hurler, 2004).The relationships formed between brands and consumers can be better understood by looking at the broader context of the consumer’s life to see exactly how the brand enhances consumer value. A strong relationship develops not by driving brand involvement, but by supporting people in living their lives. Many brand relationships are also functional in that they focus on extracting greater exchange value from the company and the brand. Strong brand relationships emerge as a byproduct of meeting functional needs and not as a drive to express identity through the brand. People often develop brand relationship to gain new social connections. Brand attachment (Thomson, Maclnnis and Park 2005) provided one approach to relationship strength measurement. Branding and brand based differentiation are powerful means for creating and sustaining competitive advantage. Prior research has examined differences in how consumers perceived and evaluated brands, for example, through investigating brand equity (Keller 1993, Deighton 1993). More recently, researchers have noted that customers differ not only in how they perceive brands but also in how they relate to brands (Muniz and O’Guinnin 2001). This line of

research has suggested that people sometimes form relationships with brands in much the same way in which they form relationships with each other in a social context. Susan Fournier’s (1998) Brand Relationship Quality(BRQ) scale which comprises of seven brand relationship dimensions namely Interdepence,Commitment ,brand partner quality, self connection, nostalgic attachment, intimacy(consumer -brand) and intimacy (brand- consumer) has been adopted for the purpose of the study. Objectives:

To examine the strength of the brand relationship quality on a comparative basis between Lakme and Oriflame.

To test if there exists any significant difference between the two brands with respect to the seven dimensions of BRQ.

Methodlogy: BRQ scale of Susan Fournier was distributed to 100 final year UG women students in the age group 20-22 who have been customers of both Lakme and Oriflame.Systematic sampling technique was adopted to collect responses on a three point agree-disagree scale and analysis by employing weighted mean and “t” test was done based on 85 usable questionnaires. Analysis with respect to the seven dimensions of the BRQ is depicted in tables 1 – 7 as shown below 1. Interdependence: Strong brand relationships are distinguished by a high degree of interdependence enjoining consumer and brand. (Hinde 1995). Interdependence involved frequent brand interactions. Interdependence research suggests that a relationship inextricably woven into the fabric of daily life can endure despite low levels of affective involvement and intimacy (Hinde 1979)

Table No:1 Interdependence



S.no statements

Lakme (w.m)

Oriflame (w.m)

1

I use the brand and Iam sure of it 2.44 2.20

2

Brand is an integral part of me 2.24 2.13

3

I am dependant on the brand 2.11 1.99

From the above table it is evident that with respect to Lakme the customer’s dependence on the brand is higher than for Oriflame since the weighted means are more than 2 for all the statements. However for oriflamme the weighted means for statments1 and 2 alone are more than two, but for statement 3, the weighted mean of 1.99 indicates neutrality with respect to dependence on the brand. Thus feelings of dependence, confidence and closeness with the brand are more for Lakme than for Oriflame. Commitment: High levels of commitment (the intention to behave in a manner supportive of relationship longevity) were also common across strong brand relationships. Commitment in its various forms fosters stability by implicating the self in relationship outcomes. Consumers openly profess emotional commitments (Johnson 1973) through brand pledges.

Table No:2 Commitment

S.no Statements Lakme(w.m) Oriflame(w.m)

1

The Brand and I are perfect for each other 2.07 1.99

2

I really love the brand a lot 2.19 2.07

3

The thought of not being able to use the brand 1.85 1.75

disturbs me more 1.91 1.95

4

Iam very loyal to the brand 1.80 1.95

5

Iam willing to make sacrifices to keep using the brand 1.80 1.80

6

I have special feelings for the brand 2.08 1.82

7

I no longer look out for alternative brands 1.95 1.86

From the above table it is evident that customers of Lakme have special feelings of perfect match between them and the brand and really love the brand since the weighted mean is more than two for statements 1, 2, 6 The thought of not being able to use the brand, their loyalty towards the brand by not trying out alternatives and their willingness to make sacrifices to keep using the brands for both the products have recorded weighted means of less than 2, indicating that the level of commitment towards both the brands are not high. Noticeably neither of the brands has registered a score of more than 2.19 indicating that the respondents are not very committed to the brand. 3. Brand partner quality: In the marital domain the perceived caliber of the role enactments of the partner has been linked to overall relationship satisfaction and strength. (Burr 1973). The brand partner quality reflects the consumer’s evaluation of the brand’s performance in its partnership role. The strong brand stories suggest five central components of a brand partner quality (Clark et al. 1994). Positive orientation of the brand towards the customer(making the customer feel wanted ,respected, listened to cared for i) Judgment of brand overall dependability,

reliability, predictability in executing its partnership role.

ii) Judgment of brand adherence to the various rules composing the implicit relationship contract.

iii) Trust/faith that the brand will deliver what is desired vs which is feared

iv) Comfort in the brand’s accountability for its actions.

TABLE NO: 3 PARTNER QUALITY

S.no Statements Lakme (w.m)

Oriflame (w.m)

1 The brand takes care of me 2.04 2.00

2 The brand listens to me 1.89 1.71

3 The brand makes up for mistakes 1.94 1.80

4 I count on the 2.02 1.95



brand to do what's best for me

5

The brand is responsive to my concerns 2.01 1.80

The strength of the relationship based on ‘Partner quality’ is depicted in the above table, where the variables considered are ‘taking care’, ‘making up for mistakes’, ‘being concerned’etc. As regards all the five variables, the weighted mean is higher for Lakme than for Oriflame, indicating better relationship of the respondents with the former. However the weighted mean’s for three statements for Lakme are greater than two, but none for orilfame, indicating that Lakme has developed a better partner relationship with their customers than Oriflame. 4. SELF CONNECTIVE ATTACHMENT: Memories related to a brand evoke one attachment to that brand. Self image or surroundings can also generate attachment to a brand. Afflictive attachment is generated when a brand becomes involved in one’s self concept and self image.

TABLE NO: 4 SELF CONNECTIVE

ATTACHMENT


Oriflame (w.m)

1 The brand is a part of me 1.98 1.80

2

The brand makes statement about what’s

important to me 1.96 1.86

3

The brand connects with part of me that makes me tick 1.84 1.85

4

The brand fits with my life goals or problems 1.85 1.65

5

By using the brand I'm part of a special community 2.05 1.84

6

I develop relationships with others who use the same brand 1.86 1.80

The connection between the brands and the respondents is measured by variables like ‘it’s a part of me’, ‘makes me tick’, ‘fits my life goals’ etc. Noticeably for statements 1, 2,4,5 and 6 the weighted mean scores for Lakme are greater than Oriflame indicating that Lakme’s attachment is better than Oriflame on a comparative basis.However,for both the brands, the entire weighted means are less than two,(excepting statement 5 for Lakme),indicating the existence of

weak connection between the brands and their customers. 5. NOSTALGIC ATTACHMENT:

A brand evokes nostalgic or sentimental feelings in a person as regards various aspects of life experiences and also determines the attachment the person has towards the brand. T ABLE NO: 5 NOSTALIC ATTACHMENT


Oriflame (w.m)

1 I have sentimental feelings for the brand 1.86 1.41

2 The brand reminds me of a phase of my life 1.88 1.79

3

Thoughts of the brand contain personal memories 1.87 1.73

Nostalgia is measured through ‘personal memories’, ‘sentimental feelings’, and ‘phase of my life’. As regards, Lakme, all the three statements have more or less the same weighted means. But for Orilfame, sentimental feelings for the brand have the weighted mean of only 1.41, indicating the lack of such in the minds of consumer. 6. INTIMACY Informants brand stories suggest that elaborate knowledge, structures develop around strongly held brands with richer layers of meaning reflecting deeper levels of intimacy and more durable relationship bonds. (Reis and Shaver 1988). At the core, all strong brand relationships were noted in beliefs about superior product performance .Beliefs in the utilitarian functioning of the brand were sometimes bolstered by performance myths that marked brand as superior and irreplaceable and thus resistant to competitive attack. TABLE NO: 6 INTIMACY (CONSUMER BRAND)

S.no Statements

Lakme (w.m)

Oriflame (w.m)

1 I know the brand history/background 1.86 1.65

2 I know what the brand stands for 1.88 1.79

3

I know more about the brand than an average

Consumer 1.87 1.73

The weighted means for Lakme is greater than Oriflame as regards all the three statements, indicating that the consumer’s perception about the brand is more positive for Lakme than for Oriflame. However, since all the weighted mean scores are less than 2, the relationship is weak for both the brands.

TABLE NO: 7 INTIMACY ( BRAND



CONSUMER)


Oriflame (w.m)

1

The company understands my needs

1.92 1.91

2

The company knows me so well, that it could design a product for me 2.04 1.68

3

The company knows a lot about me as a person 1.59 1.60

Intimacy measured from the company’s point of view is depicted on the basis of brand to consumer relationship in the above table. For statements 1 and 3 Lakme’s and Oriflame’s weighted mean is more or less the same and for statement 2 the weighted mean of Lakme is more than two, indicating the company designs products according to its customer needs. TABLE NO: 8 DIMENSIONS OF BRQ

S.n

o

Fa

cto

rs

La

km

e

(w.m

)

Ra

nk

Ori

fla

m

e

(w.m

)

Ra

nk

1 interdependence 2.26 1 2.11 1

2 commitment 1.98 2 1.89 2

3 partner quality 1.98 2 1.85 3

4 self connection 1.92 4 1.80 4

5 nostalgic attachment 1.87 5 1.64 7

6

intimacy (consumer brand) 1.87 5 1.76 5

7

intimacy ( brand consumer) 1.85 7 1.73 6

From the above table, it is evident that for all the seven factors weighted mean scores of Lakme are more than that of Oriflame, indicating that Lakme has a better BR quotient than Oriflame as regards Interdependence,Commitment,Partner quality, Self Connection, Nostalgic attachment, Intimacy (consumer- brand) and Intimacy (brand -consumer). To conclude, all the weighted means (except for interdependence for both the brands) are lesser than 2, revealing not too strong BR Quotient for both the brands.

The next part of analysis aims to test the hypothesis that there exists significant difference between both the brands, with respect to the factors of BRQ scale, through a “t” test, the results of which are depicted in Table 9 below: Null Hypothesis: There is no significant difference between both the brands with respect to the seven factors of BRQ. TABLE NO: 9 “t” TEST

S.no Factors

T value

P value

Lvl of signi

1 Interdependence 3.701 0.0329 5%

2 Commitment 2.344 0.0287 5%

3 Partner quality 3.841 0.0090 1%

4 Self connection 3.439 0.0090 1%

5 Nostalgic attachment 2.055 .0880 Ns

6

Intimacy (consumer brand) 4.358 0.024 5%

7 Intimacy ( brand consumer) 0.990 0.211 Ns

Over all (1-7) 2.266 0.0319

5%

From the above table, it is evident, that with respect to Interdependence, Commitment and Intimacy (Consumer –Brand), the” t” results are significant at 5% level indicating that there exists significant difference between both the brands. There also exists significant difference at 1% level as regards Partner Quality and Self Connection. Nostalgic Attachment and Intimacy (Brand-Consumer) are the two factors where there exists no significant difference between both the brands. To conclude, there exists a significant difference at 5% level for both the brands when all the factors in the BRQ scale are compared.

Conclusion: Strong consumer brand relationship implies consumer loyalty and customer retention with lower switching costs. The relevance of consumer brand relationship as a strategic tool for marketers to gain a competitive edge has been proved in the present study. Bibliography: 1. Aaker, Jennifer “Dimensions of Brand Personality”,

Journal of Marketing Research, 347-357 2. Deighton, John (1996),”The Future of Interactive

Marketing” Harvard Business Review, 74(November-December)

3. Kelley, Harold (1986) Personal Relationships: Their Nature and significance,” in the emerging field of Personal Relationships.

4. Park “Strategic Brand Concept-Image Management” Journal of Marketing,50,135-145

5. Susan Fournier (1998) Brand Relationship Quality


322

MARKETING OF SERVICES: PROBLEMS AND PROSPECTS OF AUTO RICKSHAW DRIVERS AT BENGALURU A STUDY

*Roshan **Dr. E. A. Parameswara Gupta

____________________________________________________________________________________________________ *Research Scholar, Bharathiar University, Coimbatore, Tamil Nadu, India **M.Com Co-ordinator, A. P. S. College of Commerce, Bangalore, Karnataka, India

Abstract Public transportation in Bengaluru, the capital city of Karnataka is characterized by high dependence and low availability of either Bengaluru Mahanagar Transport Corporation buses and existing costly metro partial intra city transportation means and Para transit systems like taxis and auto rickshaws. Auto rickshaws are popular means of transporting people from one to another end. But unfortunately he has been questioned by police, RTO and many a times false based compound complaints are booked against him. Auto rickshaws at present are liked by one and all travellers, businessmen, doctors, professors, advocates, students, employees, etc. The increase in the living styles, changed income level, readiness to spend more and more are some of the powerful drivers influencing the people to hire an auto. The various auto rickshaw drivers various and service oriented organizations involvement is a step towards fastening socially responsible behavior on the part of the drivers, improving their information awareness and acquiring business knowledge, as well as imparting dignity of labour to a profession that does not receive respect in Indian society. There are more than 150,000 authorized and unauthorized auto rickshaws operating in the roads of Bengaluru. Nearly 3 lakh families are depending upon this profession. From the obtaining license in the beginning to driving his vehicle on the roads innumerable risks he has to face. Accidents and loss of life, RTO and police risk and since many-a-times these drivers may be wrongly penalized on compound basis. Over the years the auto drivers have been complaining about their working conditions and are unable even to manage the revenue on account insufficient possession of business knowledge. The main objective of present study is to explore the details regarding (1) drivers characteristics, (2) vehicle ownership and financing, (3) Fuel and engine issues, (4) Auto rickshaw operation, (5) Drivers and police. A well drafted questionnaire was administered and was used as a schedule keeping in the mind in education status of drivers. 300 sample respondents were through fit for the purpose. Convenient sampling technique was employed to obtain the necessary data. Statistical techniques like chi-square, ANOVA and Wilcoxan Matched - pairs Test was used in order to test the hypotheses. Keywords : Auto rickshaw, Police, Revenue Lifestyles, Business knowledge Accidents.

Introduction Auto rickshaws play an important role as Para-transit modes in the public transportation of people in most cities in India. As per the estimate there are more than 150000 authorized and unauthorized operating in the roads of Bengaluru and nearly 3 lakhs people directly depending upon this profession. Daily more than ₹ 600 is earned and many drivers do not owe the vehicle. Since there is a tough competition and good demand for the auto rickshaws they have to be managed properly. They should possess better business knowledge in order to get and retain the income they earn. Most of the auto rickshaws run on double shift in order to meet requirements of schooling, hospitalization, and shelter and food expenditure. The phenomenon of pushing these auto rickshaw drivers to the fringes of society is common in Bengaluru. People from nearby Bengaluru easily migrate to Bengaluru and settle at slums or outer skirts. They are easily targeted as unsafe drivers, anti social behavior and take the responsibility of all ills of the ailing transportation system. Unfortunately they do not posses the technique of revenue management and spend unscientifically. Further, from the process of licensing to driving his vehicle on the road the auto rickshaw driver suffers from a lack of information awareness1. Even if they possess a minimum skill they are not in a position to manage the income. Auto rickshaw drivers are not in a position to differentiate between tourists and officers and have no clue about the actual licensing fees. He ends up spending more on tourist’s fees than the actual license. He has no knowledge of laws penalties, or

fines for breaking them. He can not differentiate between money paid up to traffic police to avoid challan or fines imposed by the courts. Objectives of the study The aim of the present study is to study and manage the variables which are going to affect the auto rickshaw driving in Bengaluru. These variables and management includes:- (1) To know the level of income of auto rickshaws. (2) To understand vehicle ownership and financing. (3) To understand fuel and engine issues. (4) To understand attitude of police and RTO towards auto drivers. (5) To know the habits of auto drivers. (6) To understand the difference in income before and after joining the union. Hypotheses

(1) Monthly income of auto drivers in uniforms. (2) All auto drivers own their vehicle. (3) Auto drivers obtain license on their own and assure money. (4) Fuel and engine issues are influenced by one variable that is stated in the table. (5) Auto rickshaw drivers are happy with police and RTO. (6) Auto rickshaw drivers are free from bad habits. (7) There is no difference in income before and after joining the union. Limitations


323

The study is confined only to Bengaluru. Any generalization needs further deep research. The responses obtained from drivers which are given out of their memory. Memory may be subjected memory loss. As usual the present study also suffers from financial and time constraints. Review of literature: There exist a limited literature about auto rickshaw transport, commuter satisfaction and revenue issues. The available literature is reviewed and presented below.

Bajaj(1961)1 studied living and working conditions of 100 auto rickshaw drivers (ADs) in Delhi. The study attempted to reveal the issue of ownership pattern, public harassment, overcharging to commuters. 74% of ADs are not satisfied with job because of low occupation prestige.

Anderson (1965)2 reported that public services are offered to the public, based on the principles of quality. He concluded that the transport industry overall as a low customer satisfaction.

Jen, W. To R, & Lu, T.(2011)3 in their paper sought to improve understanding of passengers behavioral intention through a usual relationship model that considers service quality and satisfaction as study parameters Yuan-Chin Huang, Yuan-Chin Huang,

Chih Wa and Jovan Chia-Jung Hsu(2006)4 in their research paper then have discussed the relationship among customers characteristics. The paper evaluated 24 questions mean value of expected service quality and perceived service quality and suggested that company’s select a suitable service strategy for different group of passengers.

One world, net one world foundation India (2011)5 is of the opinion that auto rickshaws are a vital mode of transport in Indian cities, providing low cost mobility and connecting travellers to mass transit or directly to their destinations. The auto rickshaw sector also provides livelihoods for some of India’s poorest citizens.

Anvita Anand and Rajendra Roy (2003)6 have stated in their study that the training program conducted for ADs in Delhi has been a step towards fostering socially responsible behavior on the part of the driver.

Disney, J.(1999)7 received genesis issues covering customer satisfaction and loyalty in UK and illustrated trends in customer behavior. He also concluded that, customer expectations are rising while transport operations becoming more innovative in their attempts to attract and retain customers.

Daw Kins P. and Reichheld F. (1990)8, in their research paper concluded that, delivering quality service is one of the key and essential strategies for success and survival of business in today’s competitive environment.

Survey Findings Driver Characteristics

Driver’s age and family details are give in Table-1. These data reveals that a vast majority of the drivers below 50 years and only 27% are between 30-40 years. This is reflected in the fact that 43% of respondents have to support their family to the extent of 50% to 60%. There are 86 respondents forming 29% support their family to the extent of 60% and above. 40% of drivers live in outskirts of Bengaluru and 30% in slum area and the rest in developing areas. These facts are important considerations in dividing fare levels of auto rickshaws, since most drivers have to support families and not simple persons who require a minimum wage. Chi-square analysis reveals that the monthly income of the drivers is not uniform but varies. Vehicle ownership and financing Vehicle and financial management assumes most important from the point of view of sustainability in the auto rickshaws driving field. Table-2 indicates majority of the respondents (60%) own their own vehicle and thus the responsibility of paying license fee, annual tax, repair and reconditioning loan installment along with interest, maintenance etc., falls on them. Further the table reveals about sources of funds for buying an auto rickshaw. The survey finds that TVS and Bajaj brands are purchased to carry passengers and age 50 to carry goods from one to another place. 65 respondents still depends upon financiers to finance the vehicle buying. Further the table reveals that 90 or 60% of vehicle owners depend upon agents to obtain license and 43 respondents depend upon financiers. Either agents or financiers are not helpful to the drivers who charges extra heavily, a financial burden and mismanagement of sources. 62% of respondents act of 65, who purchased vehicle through financiers paid ₹ 100,000 in the beginning. Collateral loans are granted by the nationalized banks in a limited way and many depend upon private financiers. Private financiers charges 5% rate of interest for the default. The chi-square table analysis reveals that all auto rickshaw drivers are not the owners of the vehicle further chi-square analysis (license obtaining) also reveals that auto drivers are not obtaining license on their own but depended on others. Fuel and Engine Issues

Table-3 reveals some data requiring fuel and engine issues. Fuel and engine issues are quantified on a Likert scale of 5 point scale. Out of 300 respondents 200 respondents have strongly agreed on the variables stated in the table. 40 respondents strongly agreed the return trip will be empty and 40 respondents they cannot stay for larger account of security, 39 said the overstay may end up in challenging by the police and 10 respondents have agreed strongly resorting to overcharging and to cover either days laws or to cover empty return trip. The study found that 30


324

respondents ran their vehicle with faulty meter and 20 respondents strongly felt that prepaid booths are not good and 25 respondents prefer meter down which is convenient to both passenger and drivers of the vehicle. The study her confirmed de facto meter down existing in Bengaluru. The ANOVA analysis indicates that respondents are not happy with police and RTO. Habits of Auto drivers

Table-5 reveals the habits of auto drivers. The existence of bad habit measured in terms of playing horse race, cards, alcohol addiction, misbehavior with customers, quarrel at the time of returning change and not respecting senior citizens. Out of 171 respondents who have agreed strongly, 28 play horse race, 34 cards, alcohol addiction by 38, 45 misbehave with passengers (police records) 16 respondents quarrel at the time of return of change and only 10 respondents do not respect senior citizens. The ANOVA analysis clearly says that auto drivers are not free from bad habits thereby they lose all the days’ income and lack better management of funds. Further the table reveals that there are 90 respondents who are agreed on the variable that are stated in the table. There are 39 respondents who might have stand neutral, disagreed strongly disagree. Income of auto drivers before joining and after joining auto drivers’ union

There only two strong auto rickshaw drivers’ union, Auto rickshaw drivers Welfare Association. The strength of main members is no negligent that majority of auto drivers stand outside the union and then do not believe in the union activities. Some elite drivers become union members and they wear badge of their union also one going to be polite, sober and helpful. Significant changed in income is reported from the drivers after joining the union. Table 6 reveals some data on before and after effects of joining auto rickshaw drivers’ union. Wilcoxon Matched Pair Test has been conducted in order to study the same. The Wilcoxon Matched pair test reveals that there exists difference between before and after joining an auto rickshaw union. Conclusion

The study started with an intention of studying revenue management of auto rickshaw drivers in Bengaluru. Here and there the print media provides valuable information of sober attitude of auto rickshaw drivers. Free social service by ‘Ray of good hope’ a mission started with a vision of rescuing destitute, mad and persons who are severely suffering from diseases and return of left luggage an appreciable job done by the drivers. That does not mean all are good but a strange bad incidence may be highlighted and to a great extent and drivers are doing their best to the commuters wherein metro rail is not popular and partial services are provided at present. A proper education of drivers may make them, responsible and useful to there family and society. The bad habits among drivers are a greatest addict act which should be addressed immediately which is going to be useful since it may bring full income to the family. References 1) Bajaj S.P. (1979), A study of working and living

conditions of 100 scooter drivers in Delhi CSR New Delhi (unpublished dissertation)

2) Anderson, T.W.(1995). satisfaction with public services - the case of public transportation. Journal of Service marketing, 9, 30-41.

3) Jen, W. To, R, & Lu, T.(2011). Managing Passenger behaviour intentions - An integrated frame work for service quality, satisfaction, perceived value and switching barriers. Transportation, 38(2), 321-342.

4) Yaan-Chih, Huan, Chih-Hang, Wa & Jozan, Chia-Jung Hsu. (2006). Using importance - performance analysis in evaluating Taiwan medium and long distances national highways, national highways, passenger transportation service quality. Journal of American Academy of Business, Cambridge, 8(2), 98-104.

5) One world foundation India. (2011). Documentation of Best Practices, the Auto rickshaw Reconstructing project, Researched and documented.

6) Anvita Anand and Roy, Rajendra. (2003). Auto rickshaw drivers in Delhi efficacy of Dialogue with service providers. Economical political weekly. Vol. XXXVIII PP. 35-44.

7) Disney, J. (1999). Customer satisfaction and loyalty the critical elements of service quality. Total quality Management, 10(4), S491-S497.

8) Dawkins, P., and Reichheld, F. (1990). Customer retention as a competitive weapon. Directors and Boards, 14, 42-67.

Table-1 Demographic characteristics

Sl. No. Variable No. of Respondents %

1. Age of the respondents 20-30 Years 30 10 30-40 Years 80 27 40-50 Years 132 44 50-60 Years 40 13 60 Years & above 18 06 2. Supporting Family Up to 40% 04 01 40% to 50% 80 27 50 to 60% 130 43 60% and above 86 29 3. Qualifications 10th std. 45 15


325

10+ 95 32 Degree 110 37 PG 40 13 Others 10 03 4. Monthly Income Below 10,000 90 30 10000 - 15000 102 34 15000 - 20000 30 10 20000 - 25000 60 20 25000 & above 18 06 5. Living area Slum 90 30 Outer skirts 120 40 Developing Area 90 30

Source: Primary Data Hypotheses: (Monthly Income)

H0 : The monthly income is uniform in all the Reject cases of auto rickshaw drivers H1 : Monthly income is not uniform but Accept varies in among the drivers

Chi-square Table Calculated value 88.8, d.f. = 5, sig. level 5%, TV = 9.488 Chi-square Analysis The calculated value being 88.8 greater than the TV = 9.4888 rejects the null hypotheses and accepts the alternative and therefore we may conclude that the monthly income of the drivers varies. Table-2 Vehicle ownership and financing

Sl. No. Variable No. of Respondents %

1. Vehicle Ownership Yes 180 60 No 120 40 2. Source of Funds Own 30 17 Banks 25 14 Parents 40 22 Financiers 65 36 Father in law 20 11 3. Mode of obtaining license Own 22 12 Agents 90 50 Banks 25 14 Financiers 43 24 4. Initial amount paid in ₹ . 60000 12 19 case of finance through ₹ . 80000 08 12 a financer, N = 65, ₹ . 100000 40 62 (Remaining own auto on ₹ . 120000 05 07 daily rental basis)

Source: Primary Data Hypotheses : (Source of Funds)

H0 : All auto rickshaw drivers are owning a vehicle Reject H1 : All auto rickshaw drivers are not owing a vehicle Accept

Chi-square Table Calculated value = 35.2777, d.f. = 4, sig. level 5%, TV = 9.488 Chi-square Analysis The calculated value being 35.2777 is greater than the TV = 9.488 @ 5% level of significance with d.f. = 4, rejects the null hypotheses and accepts alternative. Hypotheses : (License)

H0 : Every auto rickshaw driver obtains license Accept on their own and save monthly H1 : Auto drivers is not obtaining license on their Reject own but through the others

Chi-square Table Calculated value = 91.1666, d.f. = 3, sig. level 5%, TV = 7.815


326

Chi-square Analysis The calculated value being 91.16666 is greater than the TV = 7.815 @ 5% level of significance with d.f. = 3, rejects the null hypotheses and accepts alternative and hence we may conclude that auto rickshaw drivers do not obtain license on their own and therefore he undergoes additional expenditure. Table-3 Fuel and Engine Issues (Respondents Opinion)

Variable SA A N DA SDA T

Daily operation and return empty 40 08 02 01 02 53 There is not security at far off place 40 05 03 04 05 57 Police Resort to challenge for the stay 35 04 01 02 04 46 Resort to overcharging to cover the day loss 10 08 02 04 03 27 Run auto with faulty meter 30 10 04 02 06 52 Prepaid booths are not good 20 03 01 03 03 30 Free Structure, Meter down 25 03 02 02 03 35

Total 200 41 15 18 26 300


H0 : Fuel and Engine issues are influenced by Reject only one variable stated in the table H1 : Fuel engine issues are influenced by Accept different variables stated in the table

ANOVA Table

Source of variation S.S. d.f. M.S. F-ratio 5% F-limit (From F-table)

Between Sample 3558.1742 (5-1)=4 3558.1742/4 889.5435/ F(4,30) =889.5435 24.5238= =2.69 36.2726 Within Sample 735.7143 (35-5)=30 735.7143/30 =24.5238

Total 4293.8885 (35-1)=34

ANOVA Analysis The calculated value being 36.2726 greater than the TV = 2.69 at 5% level of significance with d.f. = V1 = 4, V2 = 30 rejects the null hypotheses and accepts the alternative. Therefore we may conclude that different factors influence the engine and fuel issues. Table-4 Auto rickshaw Drivers, Police and RTO

Variable SA A N DA SDA T

Police book the case without mercy 40 9 1 1 1 52 Police book the case on compound basis 30 11 2 2 2 47 There is no parking place 30 10 3 1 2 46 Auto rickshaw drivers bribe the police 35 8 1 1 1 46 Auto rickshaw drivers bribe the RTO 40 10 1 1 2 54 Police book the cure because of violation of risks 05 12 2 1 1 21 RTO book the case because of unemphasised service 10 20 2 1 1 34

Total 190 80 12 8 10 300


H0 : Auto rickshaw drivers are happy with police & RTO Reject H1 : Auto rickshaw drivers are not happy with police & RTO Accept

ANOVA Table

Source of variation S.S. d.f. M.S. F-ratio 5% F-limit (From F-table)

Between Sample 3483.9048 (5-1)=4 3483.9048/4 870.9762/ F(4,30) =870.9762 43.1525= =2.69 20.1836 Within Sample 1294.5748 (35-5)=30 1294.5748/30 =43.1525

Total 4778.4796 (35-1)=34


327

CORPORATE CHARACTER BRANDING AND ITS OUTCOMES *Dr. A.S.Saranya

**Dr. Geetha Sankar ____________________________________________________________________________________________________

*Associate Professors, Dept of Commerce, Ethiraj College for Women, Chennai-600 008

Abstract Recent research has been directed at better understanding of both the nature of brand - customer relationship and the influence

these relationships could have on consumer behavior. In this context the concept of brand personality revived by Aaker in 1997 brought out the influence of brand – consumer relationships on consumer buying behavior. Brand personality is relevant if it is able to differentiate between competing brands. Biel (1995) argues that for differences between brands are becoming marginal due to rapid technological advancements which are short lived. Susan Fournier (1994) links brand personality to trust and loyalty. Therefore for the present study, an attempt has been made to examine the brand personality of an educational institution and its influence in terms of perceived differentiation, satisfaction, loyalty and affinity from the point of view of students who are the main consumers.

Introduction

“A BRAND IS A SYMBOL THAT ENCAPSULATES THE MANY ASSOCIATIONS THAT ARE MADE WITH A NAME” – GARDNER AND LEVY, 1955. Many things can be branded (Levitt, 1980) including an organization. Brand image refers to the associations held of a brand in memory and brand personality refers to the human associations made with a brand by applying the equivalent of a personality test to a brand. A projective technique which uses human personality traits similar to those used in assessing the personality of an individual is used to measure brand personality of an organization. For example one corporate brand may be described to be more “daring” or more “honest” than another. A similar but not identical list of adjectives that are used to describe people exists for brand personality (CAPRARA ET AL, 2001).

A brand provides its owner with two benefits: differentiation, so that the customer is less able to decide on price alone and a franchise (Davies,1992); the latter stemming from customer satisfaction with the brand and loyalty to it. Customers choose to go in for a particular brand due to rational reasons but their emotional attachment is also important. Thus four attributes to a brand - the ability to differentiate, to satisfy, to create loyalty and to develop an emotional attachment – are very relevant to the brand personality of an organization.

A brand name is more than just a label to differentiate (Gardner and Levy,1955) but differentiation is still the essence of branding (Aaker,2003).Differentiation reduces price competition and is seen as a source of competitive advantage at the corporate level. Employees as well as customers like to be associated with distinctive/different organizations. (Dutton et al. 1994).

Another role of the brand is to create and enhance satisfaction. Satisfaction predicts future behavior towards the brand (Mittal and Kamakura,2001). Satisfaction with the job and the organization are useful predictors of an intention to leave the organization. Employees who are more

satisfied also create better relationships with customers.

Brand loyalty refers to a customer’s propensity to purchase the same product/service over time (Jacoby and Chestnut,1978) . Switching brands in a consumer market can be done relatively frequently and at little cost to the individual, whereas switching employers involves far higher costs and is done not too frequently.

A strong brand elicits an emotional response from the customer (Yeung and Wyer, 2004). The level of arousal, the quality of consumption experience and the emotional

attachment/affinity to a brand, all influence the consumer’s affective evaluation (Tsai, 2005). The emotional attachment of the customer to an organization can be assessed by measuring the desire to maintain one’s membership of an organization and having pride in membership. The success of branding is concerned with promoting an emotional response from the target.

Thus based on the above review of literature, an attempt has been made to examine the brand personality/corporate character of an educational institution from the view point of its students. For this purpose, the Corporate Character Scale of Davies et al, 2004 has been adopted. It has five main brand personality dimensions, viz., Agreeableness, Enterprise, Chic, Competence and Ruthlessness. Agreeableness has three facets, each with a number of measurement items ie. warmth, integrity and empathy. Enterprise includes modernity, adventure and boldness. Competence includes conscientiousness, drive and technocracy. Chic includes elegance, prestige and snobbery.

Ruthlessness includes egotism and dominance. Attempt has also been made to study the

impact of the institution’s brand personality /corporate character in terms of perceived differentiation, satisfaction, loyalty and affinity from the point of view of the students.

Objectives of the study (1) To examine the brand

personality/corporate character of the institution.


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(2) To study the outcome of the institution’s brand personality/ corporate character in terms of perceived differentiation, satisfaction, loyalty and affinity.

Methodology: The Corporate Character Scale

(Davies et al, 2004) has been adopted for the purpose of this study and data was collected from 100 final year UG women students in the age group of 20-22 years. Systematic sampling technique was adopted for selecting the students. Likert’s 5 point strongly agree – strongly disagree scale was used. Weighted mean, ranking and Z test were used to analyze the data, the results of which are depicted in the tables below.

TABLE NO 1: AGREEABLENESS

S.no Sub factors Weighted mean

1 WARMTH

Cheerful 3.98

Pleasant 3.66

Open 2.66

Agreeable 3.49

2 EMPATHY

Socially responsible

3.96

Concerned 3.46

Reassuring 3.22

Supportive 3.69

3 INTERGITY

Honest 3.42

Sincere 3.57

Trustworthy 3.80

Straightforward 3.26

The presence of cheerful, pleasant, and

agreeable atmosphere in the institution exudes warmth . This has been felt by the respondents since the weighted means are greater than 3.26 for all the warmth variables as depicted in the table above. Being concerned, reassuring, supportive and socially responsible have weighted means greater than 3.22 indicative of the emphathitic atmosphere prevailing. Likewise responses with respect to honesty, sincerity, trustworthiness and straightforwardness are positive indicating the strength of integrity of the institution. To conclude the institution has an agreeable environment.

TABLE NO 2: ENTERPRISE


1 MODERNITY

Cool 3.64

Trendy 4.02

Young 4.26

Up to date 3.75

2 ADVENTURE

Imaginative 3.58

Exciting 3.79

Innovative 4.23

3 BOLDNESS

Extrovert 3.60

Daring 3.39

Modernity as a personality dimension

measured with four facets indicates that being trendy and young has emerged as strong personality dimensions with weighted means greater than 4. Similarly being innovative has a weighted mean greater than 4 indicative of the creative atmosphere in the institution. Boldness in risk taking, forward thinking, being an extrovert and being daring have emerged as strong brand personality dimensions. Thus on the whole, the institution is very enterprising.

TABLE NO 3: COMPETENCE


1 CONSCIENTOUSNESS

Reliable 3.44

Secure 3.93

Hard working 4.02

2 DRIVE

Ambitious 3.88

Achievement oriented 3.96

Leading 3.95

3 TECHNOCRACY

Technical 3.52

Corporate 3.60

Being hardworking, secure and reliable,

measures conscientiousness. All have weighted means greater than 3.4 indicating strong conscientiousness character of the institution. Drive measured by being ambitious, leading and achievement oriented have weighted means greater than 3.88 indicating the strength of focus and drive of the institution. Likewise technical and corporate are the two facets measuring technocracy. Their weighted means being greater than 3.5 indicates the adoption of technological advancements in the institution resulting in stronger brand image.

TABLE NO 4: CHIC


1 ELEGANCE

Charming 3.65

Stylish 3.97

Elegant 3.76


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2 PRESTIGE

Prestigious 4.17

Exclusive 3.84

Refined 3.50

3 SNOBBERY

Snobby 2.96

Elitist 3.07

Elegance being a sub factor of Chic is

measured with facets charming, stylish, and elegance, all of which have weighted means greater than 3.65 indicating the presence of elegant environment in the institution. Prestige measured with personality facets of being exclusive, prestigious and refined have weighted means greater than 3.5, with prestige scoring 4.17 indicative of the strong brand image of the institution. Being snobbish is a negative personality dimension and its weighted mean is 2.96 indicating that the atmosphere is not snobbish, but elite (3.07). Thus the institution has been branded as chic.

TABLE NO 5: RUTHLESSNESS


1 EGOTISM

Arrogant 2.76

Aggressive 2.74

Selfish 2.41

2 DOMINANCE

Authoritarian 3.00

Controlling 3.45

Inward -looking 2.93

Egotism and dominance measures the

personality dimension ruthlessness which is a negative dimension. Egotism measured with facets of arrogance, aggressiveness and selfish have weighted means less than 2.8 indicating that the institution is not egoistic. However dominance measured by authoritarian, and inward- looking have weighted means less than 3 indicating near neutral responses of the respondents to dominance with the exception of controlling as a brand personality dimension..

TABLE NO 6: CORPORATE CHARACTER DIMENSIONS

S.no Dimensions Weighted mean

1 AGREEABLENESS 3.52

2 ENTERPRISE 3.76

3 COMPETENCE 3.76

4 CHIC 3.54

5 RUTHLESSNESS 2.89

A comparison of all the five personality dimensions of the corporate character scale, indicates that competence has emerged as a strong dimension followed by enterprise, chic and agreeableness. Ruthlessness being a negative dimension has weighted mean less than 3 indicating that the institution is not ruthless. To conclude, the institution has a strong, but not a very strong corporate character.

TABLE-7 : OUTCOMES OF CORPORATE

CHARACTER BRANDING

S.No Outcomes

Wt. mean

Rank

PERCEIVED DIFFERENTIATION

3.50 1

1. My organization has a unique personality different from other organizations

3.60

2. My organization has a distinct identity of its own

3.40

SATISFACTION 3.28 4

3. I am willing to recommend this organization to others.

3.40

4. I am satisfied working for this organization.

3.16

LOYALTY 3.49 2

5. If I had to start my career all over again, I would definitely prefer to be employed in this organization

3.48

6. If I get a better offer, I would leave this organization.

3.50

AFFINITY 3.45 3

7. I am pleased to be associated with this organization

3.60

8. I feel an affinity/emotional attachment with this organisation

3.30

The above table depicts that perceived

differentiation has emerged as a strong outcome, followed by loyalty, affinity and satisfaction. That the institution is perceived to be very different from its competitors is relevant from the above table. As a result of which satisfaction, loyalty and affinity towards the institution has been established..

The next part of the analysis deals with classifying the respondents into two groups based on their total corporate character scores which for the present sample ranges between 14 and 70. Group 1 consists of 78 respondents with weighted mean scores ranging from 43 to 70 and group 2 consists of 22 respondents with weighted mean scores ranging from 14 to 42. Thus group 1 consists


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of respondents with high corporate character scores and vice versa for group 2. Weighted means and Z scores for both the groups are depicted in table 8 with respect to the outcomes of the corporate character branding. Conclusion:

In depth assessment of the nature of brand- customer relationship and its influence on consumer behavior helps in understanding key concepts such as attitude towards the brand , brand preference, brand image brand loyalty, customer retention etc facilitating better brand management and performance. Bibliography 1) Aaker.D (2003) “The power of the branded differentiator”,

MIT Sloan Management Review, vol 15 no 1 pp 83-7. 2) Caprara G.V., Barbaraelli, C. and Guido, G. (2001),

“Brand personality: how to make the metaphor fit?”, Journal of Brand Management, Vol.8 Nos. 4/5 pp.315-33.

3) Davies, G.(1992), “The two ways in which retailers can be brands”, International Journal of Retail and Distribution Management, Vol.20 No. 2, pp 24-34.

4) Davies, G.J., Chun, R., Da Silva, R. and Roper, R. (2004), “ A corporate character scale to assess employee and customer views of organization reputation”, Corporate Reputation Review, Vol.7 No. 2, pp 125-46.

5) Dutton , J.E., Dukerich, J.M., and Harquain, C.V.(1994), “Organisational images and member identification”, Administrative science quarterly, Vol.39 No. 2, pp 239-63.

6) Gardner, B.B. and Levy, S.J. (1955), “The product and the brand”, Harvard

Business review, March/April, pp.33-9. 7) Levitt, T.(1980), “Marketing success through

differentiation-of anything”, Harvard Business review, January/ February, pp.83-90

8) Mittal, V and Kamakura, W.A. (2001), “ Satisfaction, repurchase intent, and repurchase behavior: investigating the moderating, effect of customer characteristics”, Journal of Marketing Research, Vol.38 No. 1, pp 131-42.


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LEVELS OF STRESS AMONG COLLEGE TEACHERS WITH REFERENCE TO ERODE TOWN

*N.A.Murugayal ____________________________________________________________________________________________________ *Assistant Professor, Dept. Of. BBA, Sri Vasavi College(Self Finance Wing), Erode.

Introduction: Stress refers to the strain from the conflict between our external environment and us, leading to emotional and physical pressure. In our fast paced world, it is impossible to live without stress, whether you are a student or a working adult. There is both positive and negative sress, depending on each individual’s unique perception of the tension between the two forces. Workplace stress is the harmful physical and emotional response that occurs when there is a poor match between job demands and the capabilities, resources, or needs of the worker. These conditions may lead to poor work performance or even injury. Job stress is also associated with various biological reactions that may lead ultimately to compromised health. Models for stress Various disciplines researching this topic emphasize one or other aspects of stress: stressors (behavioral, emotional, physical and psychological), responses to stress, stress coping mechanisms, etc. In order to manage stress successfully, it is important to ensure that whatever definition of stress is chosen, it is shared. This is useful in order to recognize the effects of exposure to stress, and to understand how and why stress can have an adverse impact on health, performance and well-being as well as how to deal with and prevent it.While early theories emphasized either external stressors or the body’s answers to them, more recent and more consensual approaches consider stress in terms of the dynamic interaction between the individual and their environment. There are many ways of classifying work-related stressors. More commonly ‘demands’ may be related to time pressure or the amount of work (quantitative demands), or may refer to the difficulty of the work (cognitive demands) or the empathy required (emotional demands), or even to the inability to show one’s emotions at work. Demands may also be physical (that is, high demands in the area of dynamic and static loads). When workers perceive an imbalance between demands placed on them and environmental or personal resources, this can cause a number of possible reactions. These may include: • Physiological responses such as increase in heart rate, blood pressure and hyperventilation; • Emotional responses such as feeling nervous or irritated; • Cognitive responses such as reduced attention and perception, forgetfulness;

• behavioral reactions such as aggressive, impulsive behaviour or making mistakes. When demands exceed one’s abilities and knowledge, but one is able to perceive this as an opportunity to work towards achieving a state of balance, a situation of learning and development may arise. The stress process can be summarized in a model (Figure 1) that illustrates the causes of stress, (short-term) stress reactions, long-term consequences of stress and individual characteristics, as well as their interrelations. Causes of stress:

The potential causes of stress are numerous and highly individual. What one considers stressful depends on many factors, including his personality, general outlook on life, problem-solving abilities, and social support system. Something that's stressful to one may not faze someone else, or he/she may even enjoy it. For example, the morning commute may make one anxious and tense because he worries that traffic will make him late. Others, however, may find the trip relaxing because they allow more than enough time and enjoy listening to music while they drive. The pressures and demands that cause stress are known as stressors. People usually think of stressors as being negative, such as an exhausting work schedule or a rocky relationship. However, anything that forces one to adjust can be a stressor. This includes positive events such as getting married or receiving a promotion. Regardless of whether an event is good or bad, if the adjustment it requires, strains a person’s coping skills and adaptive resources, the end result is stress. Literature review: Herbert s. Kindler (1979) 2 , in his research article entitled ‘The influence of a Meditation-Relaxation technique on Group problem-solving effectiveness’ revealed that meditation teams improved more from pretest to posttest than control teams in solving the group problem faster with fewer transactions; also,members of meditation teams felt less tense and showed more effective team work than members of control teams. The results are interpreted as encouragement for organizations to offer meditation-relaxation programs to employees on a voluntary basis. Peters and Waterman (1982)3 in their study entitled the subsequent application of these ideas may involve competencies such as problem solving and technical ability. Furthermore, attempts to introduce such changes may sometimes meet with


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extreme resistance, thereby requiring competencies such as perseverance and standing alone. Sagar Sharma (1979)1, in his research titled ‘A Comparative Study of General Anxiety among Engineers and white collar workers as function of certain Demographic Variables’, studied about the anxiety levels among engineers and white collar workers of a state Public Works Department as a function of job level, age, length of service and educational qualifications. The comparative study of various sub-groups of engineers and white collar workers revealed that engineers are significantly less anxious than white collar workers, at some job, age, experience and educational levels. Need for the study: Every era in history has been characterized by some debilitating disease. Our society today also has its own characteristic disease, which is ‘stress’, the one that is not so easy to eliminate. It underlies such diverse conditions as psychosomatic diseases, heart diseases and can be a major contributor to disturbances in one’s emotional, social, industrial and family life. It inhibits creativity and personal effectiveness and exhibits itself in a general dissatisfaction, so obvious in our day-to-day lives. Stress has been called the most debilitating medical and social problem of the present century. Objectives of the study:

1. To ascertain and analyze the levels of stress among the college teachers.

2. To analyze the causes of stress. Sampling design:

The primary data was collected from the arts and science college teachers falling in 3 types viz. self financing colleges, aided colleges by using stratified random sampling method.

Data analysis and interpretation: Level of Stress of College Teachers:

S. No.

Category No. of Respondents

Percentage (%)

1 Low 45 22.5

2 Medium 75 37.5

3 High 80 40.0

Total 200 100

The above table shows that a majority (40%) of the respondents were stressed at the high level in their work which is more than a one-third of the total. It is followed by 37.5 percentage of the respondents who were stressed at the medium level and finally 22.5 percentage of the respondents who were stressed at the low level. Hence a majority of college teachers were stressed in their work at the high level.

AGE AND LEVEL OF STRESS (TWO-WAY

TABLE) S. N

Age Level of Stress Total Low Medium High

o

1 Below 30

14(29.79%)

21(44.69%)

12(25.53%)

47

1 30 to 40 Yrs

20(17.39) 42(36.52%)

53(46.09%)

115

2 41 to50 Yrs

6(30%) 6(30%) 8(40%) 20

3 Above 50 Yrs

5(27.78%) 6(33.33%) 7(38.89%)

18

4 TOTAL

45 75 80 200

From the above table it was observed that the percentage of high level of stress was the highest (46.09%) among the respondents of 30 to 40 years aged category and the same was the lowest (25.53%) among the respondents of below 30 years aged category. The percentage of medium level of stress was the highest (44.69%) among the respondents of below 30 years aged category and the same was the lowest (30%) among the respondents of 41 to50 years aged category. On the other hand, the percentage of low level of stress was the highest (27.78%) among the respondents of above 50 years aged category and the same was the lowest (17.39%) among the respondents of 30 to 40 years aged category.

SEX AND LEVEL OF STRESS (TWO-WAY TABLE):

S. No

SEX Level of Stress Total

Low Medium High

1 Male 33(30.84%)

42(39.25%)

32(29.91%)

107

2 Female 12(12.90%)

33(35.48%)

48(51.68%)

93

TOTAL 45 75 80 200

The above table reveals that the percentage of high level of stress was the highest (51.68%) among the female respondents and the same was the lowest (29.91%) among the male respondents and the percentage of medium level of stress was the highest (39.25%) among the male respondents and the same was the lowest (35.48%) among the female respondents. On the other hand, the percentage of low level of stress was the highest (30.84%) among the male respondents and the same was the lowest (12.90%) among the female respondents.

EDUCATIONAL ATTAINMENT AND LEVEL OF STRESS (TWO-WAY TABLE):

S. No

Educational

Attainment

Level of Stress Total Low Mediu

m High

1 Post Graduation

9(20.45%)

14(31.82%)

21(47.73%)

44

2 PG with M.Phil

27(25.47%)

47(44.34%)

32(30.19%)

106


333

PG, M.Phil., with Ph.D.,

9(18%) 14(28%)

27(54%)

50

TOTAL 45 75 80 200

Source: Computed from primary data

The above table shows that the percentage of high level of stress was the highest (47.73%) among the respondents who are educated till Post Graduation and the same was the lowest (30.19%) among the respondents who are PG, with M.Phil . The percentage of medium level of stress was the highest (44.34%) among the respondents of PG with M.Phil., and the same was the lowest (28%) among the respondents of PG.M.Phil with Ph.D.

MARITAL STATUS AND LEVEL OF STRESS (TWO-WAY TABLE):

S. No

Marital Status


m High

1 Married 13(14.62%)

33(37.07%)

43(48.31%)

89

2 Unmarried

32(28.83%)

42(37.84%)

37(33.33%)

111

TOTAL 45 75 80 200

Source: Computed from primary data The above table shows that the percentage of high level of stress was the highest (48.31%) among the married respondents.. On the other hand, the percentage of low level of stress was the highest (28.83%) among the unmarried respondents and the same was the lowest (14.62%) among the married respondents.

FAMILY SYSTEM AND LEVEL OF STRESS (TWO-WAY TABLE):

S. No

Family

system


m High

1 Nuclear

14(15.73%)

33(37.08%)

42(47.19%)

89

2 Joint family

31(27.93%)

42(37.84%)

38(34.23%)

111

TOTAL

45 75 80 200

Source: Computed from primary data The above table shows that the percentage of high level of stress was the highest (47.19%) among the respondents of nuclear family and the same was the lowest (34.23%) among the respondents of joint family . On the other hand, the percentage of low level of stress was the highest (27.93%) among the respondents of joint family and the same was the lowest (15.73%) among the respondents of nuclear family.

NUMBER OF DEPENDENTS AND LEVEL OF STRESS (TWO-WAY TABLE):

S. No

Number of

dependents


m High

1 1 And 2 Members

28(30.11%

34(36.56%)

31(33.33%)

93

2 3 To 5 Members

8(11.59%)

23(33.33%)

38(55.07%)

69

3 Above 5 Members

9(23.68%)

18(47.37%)

11(28.95%)

38

TOTAL 45 75 80 200

Source: Computed from primary data The above table shows that the percentage of high level of stress was the highest (55.07%) among the respondents who are having 3-5 dependents and the same was the lowest (28.95%) among the respondents who have above 5 dependents in their family.. On the other hand, the percentage of low level of stress was the highest (30.11%) among the respondents of 1 and 2 dependents and the same was the lowest (11.59%) among the respondents who have 3-4 dependents in their family.

MONTHLY INCOME AND LEVEL OF STRESS (TWO-WAY TABLE):

S. No

Monthly

Income


m High

1 Below 10,000

19(25%) 21(27.63%)

36(47.34%)

76

2 10,001-20,000

10(16.95%)

27(45.76%)

22(37.29%)

59

3 20,000-30,000

6(25%) 9(37.5) 9(37.5%)

24

4 30,001-40,000

5(22.73%)

10(45.45%)

7(31.82%)

22

5 Above 40,000

5(26.32%)

8(42.11%)

6(31.58%)

19

TOTAL

45 75 80 200

Source: Computed from primary data The above table explains that the percentage of high level of stress was the highest (47.34%) among the respondents of below Rs.10,000 income level and the same was the lowest (31.58%) among the respondents of above Rs.40,000 income level. On the other hand, the percentage of low level of stress was the highest (26.32%) among the respondents of above Rs.40, 000 and the same was the lowest (16.95%) among the respondents of below Rs.10,001-20,000.


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NATURE OF COLLEGE AND LEVEL OF STRESS (TWO-WAY TABLE):

S. No

Nature of

college


m High

1 Self financing

32(22.86%)

45(32.14%)

63(45%)

140

2 Aided 8(26.67%)

12(40%)

10(33.33%)

30

3 Government

5(16.67%)

18(60%)

7(23.33%)

30

TOTAL 45 75 80 200

Source: Computed from primary data The above table shows that the percentage of high level of stress was the highest (45%) among the respondents who are working in Self Financing Colleges and the same was the lowest (23.33%) among the respondents working in Government colleges. On the other hand, the percentage of low level of stress was the highest (22.86%) among the respondents working in Self financing Colleges and the same was the lowest (16.67%) among the respondents working in Government colleges. DESIGNATION AND LEVEL OF STRESS (TWO-

WAY TABLE):

S. No

Designation


m High

1 Professor

7(8.54%)

27(32.93%)

48(58.54%)

82

2 Assistant Professor

27(30.34%)

36(40.45%)

26(29.21%)

89

3 Associate Professor

11(37.93%)

12(41.38%)

6(20.69%)

29

TOTAL 45 75 80 200

Source: Computed from primary data The above table shows that the percentage of high level of stress was the highest (58.54%) among the respondents who were Professors and the same was the lowest (20.69%) among the respondents who were Associate Professors.. On the other hand, the percentage of low level of stress was the highest (37.93%) among the respondents who were Associate professors and the same was the lowest (8.54 %) among the respondents of Professors.

WORKING TIME AND LEVEL OF STRESS (TWO-WAY TABLE):

S. No

Working

time


m High

1 5 hours

5(16.13%)

16(51.61%)

10(32.25%)

31

2 5-8 hours

19(40.43%)

12(25.53%)

16(34.04%)

47

3 More than 8 hours

21(17.21%)

47(38.52%)

54(44%) 122

TOTAL

45 75 80 200

Source: Computed from primary data The above table shows that the percentage of high level of stress was the highest (44%) among the respondents who were working for more than 8 hours and the same was the lowest (32.25%) among the respondents who were working for 5 hours. On the other hand, the percentage of low level of stress was the highest (40.43%) among the respondents who were working for 5-8 hours and the same was the lowest (16.13%) among the respondents who were working for 5 hours. Findings, suggestions and conclusion: Findings:

It was found that the maximum level of stress was perceived by the college teachers who were below 25 years of age.

While analyzing the gender of the teachers, female teachers have perceived maximum level of job stress than the male teachers.

In the case of marital status, majority of the married teachers have perceived maximum level of job stress when compared to the unmarried teachers.

It is brought out from the analysis that the maximum level of stress was perceived by the college teachers who were qualified with Post Graduation.

Maximum level of stress was perceived by college teachers who belonged to Nuclear family.

While analyzing the income group, the college teachers with the income range of below 10,000 /-got maximum level stresses.

The college teachers who had 3 to 4 dependents have perceived high level of job stress.

It was found from the analysis that the maximum level of stress was perceived by the college teachers who were working in self financing colleges.

Professors have perceived maximum level of job stress when compared to the other category of the college teachers,

It was found that the maximum level of stress was perceived by the college teachers who had been working for more than 8 hours.

Suggestions: The women teachers got more stress, it is

suggested that the management should get emotionally bonded with the women teachers, which will not allow any stressful situation in the institution.

Stress was found to be high among the respondents with more number of dependents, compared to those with less number of


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dependents. The reason for this could be attributed to the accumulating responsibilities, which increases with the size of the family. Hence it was suggested that, the respondents should have a control over their family size, which shall benefit the society at large, other than for the individual benefits it brings to the respondents

When a person was suffering from headache or any other physical problem, it was suggested that, it should not be automatically assumed that such headaches or other complaints were stress-related just because the person had a high job stress score. A physician should always be consulted if a person experienced new symptoms, or if past problems seemed to be getting worse, because they might be due to something else that would have been much easier to treat in its early stages.

The feeling of having little control over stress was always distressful. Anything done to gain more control over daily activities would provide powerful stress reduction rewards. Analyzing all the items showing high stress levels and figuring out how to gain them in, particularly, if it was felt that health was being significantly affected. But it had got to be kept

in mind that any such scale, along with its categories, was subjective and that some stressors, such as deadlines, could actually have positive consequences.

Conclusion: Educational Institutions have started realizing that stress management is important and the pay off comes when executives are able to maintain high performance.. Stress counseling and stress management in India, have still a low profile; but it is time that Indian organizations start taking steps like their western counterparts to enable executives to absorb and bye-pass stress and strain which in days to come are likely to manifest in more alarming ways. References: [1] David .A. Decenzo. (1996), “Personnel / Human Resource Management”, Prentice Hall India Publications. New Delhi. [2] Du Brin Andrew J. (1988), “The Practice of Supervision.” Universal Bookstall. New Delhi. [3] Fred Luthans. (1995), “Organizational Behavior”, New Delhi: McGraw- Hill Publications. New Delhi. [4] Gangadhar.M Rao, V.S.P.Rao and P.S.Narayana. (1997), “Organizational Behaviour”, Konark Publishers Private Limited. New Delhi.

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