JOURNAL OF MANAGEMENT AND ADMINISTRATION TOMORROW 3 No 2 January June 2015.pdf · 2019-08-29 ·...

ACCOUNTING PRACTICES IN AGRICULTURE SECTOR J. P. Bhosale

GROWTH AND IMPORTANCE OF AUTOMOBILE AND AUTO-COMPONENT INDUSTRY IN INDIA (WITH SPECIAL REFERENCE TO THE PERIOD 2010-2015) Mrs. Patil Manisha, Thorat H.D.

CHALLENGES AND PROSPECTS OF AGRICULTURAL MARKETING IN INDIA: AN OVERVIEW Kranti V. Shingate

CUSTOMER RELATIONSHIP MANAGEMENT AND SERVICE QUALITY IN THE LIFE INSURANCE INDUSTRY: A CASE STUDY OF LIC IN GOA Ms. Santana Fernandes, Filipe Rodrigues E. Melo

GLOBALIZATION AND RURAL ENTREPRENEURSHIP IN INDIA J. P. Bhosale, Vinod Pate, G. G. Parkhe

PERCEPTION OF CONSUMERS TOWARDS PRIVATE LABEL BRANDS IN FOOD AND GROCERY CATEGORY WITH REFERENCE TO NASHIK CITY. Sandeep Nandram Dive, Vijay Ambade

ROLE OF CO-OPERATIVE SUGAR FACTORIES IN INDIA Archana Gunjal

ROLE OF FINANCIAL SYSTEM IN THE AGE OF ECONOMIC CRISIS A. B. Adsule

STATISTICS: ITS ROLE AND TRENDS P. L. Bisoyi, Bhushan Pardeshi, Pavan C. Patil

TQM: TOTAL QUALITY MANAGEMENT, CONTEXT, PRACTICES AND FRAMEWORKS Satish Shrikrishna Chinchorkar, Shyamkant Shrigiriwar

Abstract of Ph.D. Theses

A COMPARATIVE STUDY OF DEVELOPING MANAGERIAL SKILLS THROUGH MANAGEMENT EDUCATION AMONG MANAGEMENT GRADUATES AT SELECTED INSTITUTES IN PUNE AND MUMBAI Archana Salve, Kirti Dharwadkar

A STUDY TO ASSESS THE H.R.D. PRACTICES ADOPTED AMONG SCHOOL TEACHERS IN SELECTED SECONDARY SCHOOLS IN PUNE CITY DURING 2011–12 Sunny P. Mathew, Daniel Penkar

JOURNAL OF MANAGEMENT

AND

ADMINISTRATION TOMORROW

Vol.3 No. 2 January – June 2015 ISSN 2278-9316

Pimpri Chinchwad Education Trust's

S.B.Patil Institute of Management Nigdi, Pune, India

Pimpri Chinchwad Education Trust's

S.B.Patil Institute of Management,

Sector 26, Pradhikaran, Nigdi, Pune – 411044, Maharashtra, India.

Our Tribute

Late Shri S.B.Patil (Founder, PCET) Late Smt. Lilatai S. Patil (Ex-Chairperson, PCET)

Patrons

Shri Dnyaneshwar Landge (Chairman, PCET) Shri V.S. Kalbhor (Secretary, PCET)

Shri Shantaram Garade (Treasurer, PCET) Shri Sayyad Ismile Kazi (Trustee,PCET)

Shri Harshawardhan Patil (Trustee,PCET) Smt. Padmatai Bhonsle (Trustee,PCET)

Editorial Advisory Board

Mohite M.D.(Professor Emeritus, Dr. D.Y.Patil IMR, Pimpri, Pune)

Medhekar Anita(Faculty (Economics) School of Business & Law central Queensland UniversityQueensland, Australia)

Rao A.B. (Head Research, AIMS, Pune)

Deshpande Mangesh(Director FinanceAmdocs Development Cenre India Pvt. Ltd.)

Vernekar Sachin(Dean, Faculty of Commerce & Mgt.,Bharti Vidyapeeth Deemed University, Director IMED)

Shimpi Nileshkumar(General Manager, Process Planning & ProjectsMarcedes - Benz India Private Limited)

Editorial Board

Editor in Chief

Thorat Hansraj (Professor & Head Research)

Editor

Penkar Daniel(Director)

Dharwadkar Kirti (Dean, Academics)

Kaptan Sanjay (Head, Dept. of Comm. & Research, University of Pune, Pune)

Sangvikar B.V. (Profesor, PUMBA, University of Pune, Pune)

Khedkar E.B. (Director, Dr.D.Y.Patil Inst. of Mgt., Pune, President AMMI)

Ali M.M. (Director, SIBER, Kolhapur)

Biradar R.D. (Director, School of Mgt., SRTMU, Nanded)

Junare O.S. (Director, National Inst. of Co-Op Mgt., Baroda, Gujarat)

Shaikh T.S. (Consultant, United Nations- European Union, Former Executive Director, Airport Authority of India,)

Bhosale J.P. (HOD, Cost & Works Accountancy, ACS, Narayangaon, Pune)

Emelo Philip Rodrigues, (Professor, Goa University)

Rao P. Purushottam (Head, Dept. of Comm., Osmania University, Hyderabad)

Bhayani Sanjay (Professor, Saurashtra University, Rajkot, Gujarat)

Rao P.S. (Professor Emeritus & Dean, Welingkar Inst. of Mgt. Dev. & Research, Mumbai)

Academic and Research Co-ordinator

Pardeshi Bhushan

JOMAT ISSN No. 2278-9316Vol. 3 No.2 January – June 2015

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SBPIM

Journal of Management And Administration Tomorrow

Vol. 3, No.2 ISSN 2278-9316 January – June 2015

Table of Content Page No

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Accounting Practices in Agriculture Sector J. P. Bhosale

Growth and Importance of Automobile and Auto-Component Industry in India

(With Special Reference To The Period 2010-2015) Mrs. Patil Manisha, Thorat H.D.

Challenges and Prospects Of Agricultural Marketing in India: An Overview Kranti V. Shingate

Customer Relationship Management and Service Quality in The Life Insurance In-

dustry: A Case Study of LIC in Goa Ms. Santana Fernandes, Filipe Rodrigues E. Melo

Globalization and Rural Entrepreneurship in India J. P. Bhosale, Vinod Pate, G. G. Parkhe

Perception of Consumers Towards Private Label Brands in Food and Grocery Cat-

egory With Reference To Nashik City. Sandeep Nandram Dive, Vijay Ambade

Role of Co-Operative Sugar Factories in India Archana Gunjal

Role of Financial System in the Age Of Economic Crisis A. B. Adsule

Statistics: Its Role and Trends P. L. Bisoyi, Bhushan Pardeshi, Pavan C. Patil

TQM: Total Quality Management, Context, Practices and Frameworks Satish Shrikrishna Chinchorkar, Shyamkant Shrigiriwar

Abstract of Ph.D. Theses

A Comparative Study Of Developing Managerial Skills Through Management Edu-

cation Among Management Graduates At Selected Institutes In Pune And Mumbai Archana Salve, Kirti Dharwadkar

A Study To Assess The H.R.D. Practices Adopted Among School Teachers In Selected

Secondary Schools In Pune City During 2011–12 Sunny P. Mathew, Daniel Penkar


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S B P I M

JOURNAL OF MANAGEMENT AND

ADMINISTRATION TOMORROW

Vol. 3, No.2January – June 2015

ISSN 2278-9316

Editor - In- Chief

Thorat Hansraj


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ACCOUNTING PRACTICES IN AGRICULTURE SECTOR

J. P. BHOSALE

ABSTRACTAgriculture Sector plays a pivotal role in the Indian economy. This sector continues to provide employment and livelihood for majority of the population. Over the period, the accounting practices in non-organised part of Agriculture Sector have not been evolved to the required extent. Emerging new accounting policies and practices at par with international practices will certainly improve the agriculture accounting.India is traditionally recognized as country of Agriculturists. Agriculture traditionally continued to remain as one of the predominant sector of Indian economy. Contribution of Agricultural sector to the nation’s growth and prosperity continues to be significant even in modern era. It also provides employment to larger adult population.Agriculture forms the backbone of the development of the Indian economy, where roughly half of the work force is engaged in agriculture for its livelihood. On the other hand, an average Indian still spends almost half of his/her total expenditure on food. Accordingly, while being both a source of livelihood and food security for a vast majority of low income, poor and vulnerable sections of society, this sector has crucial significance in Indian economy. The experience from BRICS countries indicates that a one percentage growth in agriculture is at least two to three times more effective in reducing poverty than the same growth emanating from non-agriculture sectors. Accordingly, over the period, it has been realized that Government has given higher priority to agriculture sector in order to achieve the goals of reducing poverty and malnutrition as well as of inclusive growth. Since agriculture forms the resource base for a number of agro-based industries and agro-services, it is more meaningful to view agriculture not as farming alone but as a holistic value chain, which includes farming, wholesaling, warehousing processing, and retailing.

KEYWORDS : Accounting Practices, Methodology, Agriculture Sctor, Indian Economy, Agriculture Accounting.

© SBPIM

Head, Research Centre in Commerce & Accountancy, Arts, Commerce & Science College, Narayangaon, PuneContact No.: 9860360733 Email Id: [email protected]

INTRODUCTION :India is traditionally recognized as country of Agriculturists. Agriculture traditionally continued to remain as one of the predominant sector of Indian economy. Contribution of Agricultural sector to the nation’s growth and prosperity continues to be significant even in modern era. It also provides employment to larger adult population.

Agriculture forms the backbone of the development of the Indian economy, where roughly half of the work force is engaged in agriculture for its livelihood. On the other hand, an average Indian still spends almost half of his/her total expenditure on food. Accordingly, while being both a source of livelihood and food security

for a vast majority of low income, poor and vulnerable sections of society, this sector assums crucial significance in Indian economy.

The experience from BRICS countries indicates that a one percentage growth in agriculture is at least two to three

times more effective in reducing poverty than the same growth emanating from non-agriculture sectors. Accordingly, over the period, it has been realized that Government has given higher priority to agriculture sector in order to achieve

the goals of reducing poverty and malnutrition as well as of inclusive growth. Since agriculture forms the resource base for a number of agro-based industries and agro-services, it is more meaningful to view agriculture not as farming alone but as a holistic value chain, which includes farming, wholesaling, warehousing (including logistics), processing, and retailing.

In view of the above, the Government of India and state Governments from time to time come out with various schemes to educate the farmers, to create sufficient infrastructure for agriculture, to introduce new techniques of farming, etc. Various schemes and support programmes are also launched by the Government from time to time support small farmers.


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OBJECTIVES OF RESEARCH STUDY:The present research study is carried out with following objectives in view:

1. To study the International Scenario of Agriculture Accounting.

2. To study the applicability of Accounting Standards to Agriculture Sector.

3. To study the Accounting Practices and Methodology of Agriculture Accounting.

HYPOTHESES OF THE RESEARCH STUDY:

H-1 In recent times, Agriculture Sector forms an important component of the Indian Economy.

H-2 Now a days, awareness about Agriculture Accounting is improving.

RESEARCH METHODOLOGY:The present research study uses the most recent available published secondary data. To achieve the above stated

objectives, the secondary data was used. The secondary data was also used from various reference books related to Accounting Practices and Methodology, Agriculture Sctor, Indian Economy, Agriculture Accounting, E-Commerce, M-Commerce, Information Technology, Marketing, Banking, Finance, Commerce, Management etc. For the said research study the secondary data is also collected from the various National and International Research Journals which are related to Commerce, Management, Marketing and Agriculture Accounting. The Secondary data is also collected from various websites.

INTERNATIONAL SCENARIO OF AGRICULTURE ACCOUNTING:Agriculture accounting did not receive much attension around the world and more particularly in India. Therefore, not much guidance was available with regard to accounting for agriculture.

However, in February 2001, IAS 41, Agriculture, was issued by the international Accounting Standards Committee, the predecessor of the International Accounting Standards Board (IASB), with prescribes accounting for agriculture.

In April 2001 the International Accounting Standards Board (IASB) adopted IAS 41, Agriculture, as a part of International Financial Reporting Standards (IFRS).

In December 2003 the IASB issued a revised IAS 41 as part of its initial agenda of technical projects.

In June 2014 the IASB amended the scope IAS 16, Property, Plant and Euipment, to include bearer plants related to

agricultural activity. Bearer plants related to agricultural activity were previously within the scope of IAS 41. The IASB decided that bearer plants should be accounted for in the same way as property, plant and equipment in IAS 16, because their operation is similar to that of manufacturing. However, the produce growing on bearer plants would remain within the scope of IAS 41.

ACCOUNTING STANDARDS IN INDIA:The institute of Chartered Accountants of India (ICAI), being highest accounting body in India, formulates Accounting Standards through its Accounting Standards Board (ASB) established in April 1977.

The Accounting Standards, as recommended by the ICAI, had been notified by the Ministry of Corporate Affairs, Central Governments in consultation with the National Advisory Committee on Accounting Standards (NACAS) in the year 2006 under Companies (Accounting Standards) Rules, 2006 as a part of Companies Act. At present, 29 Accounting Standards (Ass) are notified by the Ministry of Corporate Affairs (MCA) under the Companies Act.

There is no specific Accounting Standards dealing with agriculture accounting. After converging IFRS based Standards, ICAI converged 39 IFRSs in the form of Ind AS with carve-outs in consultation with NACAS, which have been notified by Ministry of Corporate Affairs (MCA) under Companies (Indian Accounting Standards) Rules, 2015 as a part of Companies Act, 2013 effective from 01-04-2015.Ind AS comprise of Standard on ‘Agriculture’ as Ind AS 41.

APPLICABILITY OF ACCOUNTING STANDARDS TO AGRICULTURE SECTOR :‘Preface to the Statements of Accounting Standards’, issued by the institute Chartered Accountants of India (ICAI), lays down that the Accounting Standards are applicable to entities engaged in commercial, industrial or business activities. In this regard, paragraph 3.3 of the preface as follows :

“Accounting Standards are designed to apply to the general purpose financial statements and other financial reporting, which are subjects to the attest function of the members of the ICAI. Accounting Standards apply in respect of any enterprise (whether organised in corporate, co-operative or other forms) engaged in commercial, industrial or business activities, irrespective of whether it is profit oriented or it is established for charitable or religious purposes. Accounting Standards will not, however, apply to enterprises only carring on the activities which are not of commercial, industrial or business nature, (e.g., an activity of collecting donations and giving them to flood affected people). Exclusion of an enterprise from the applicability of the Accounting Standards would be permissible, only if no part of the activity of such enterprise is commercial, industrial or business in nature. Even if a very small proportion of the activities of


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an enterprise is considered to be commercial, industrial or business in nature, the Accounting Standards would apply to all its activities including those which are not commercial, industrial or business in nature.”

Since the agriculture activities are undertaken with ancestral source of livelihood and inheritance, Framework to the Accounting Standards may not apply to unorganized entities like proprietor, HUF, AOP etc. However, an orgnisation who has undertaken this activity with commercial objective, Accounting Standards (Ass) will apply. As such corporate entities and co-operative societies undertaking agriculture activities with commercial objective, Ass will apply.

AGRICULTURE IN INDIA :CURRENT SCENARIOAgriculture Sector forms an important component of the Indian Economy. The contribution of agriculture sector towards the GDP is also a significant factor in the growth of the economy. Majority of Indian population lives in villages. Certain data showing significance is given in this section.

LAND USED FOR AGRICULTURE As per the land use statistics of 2011-12, the total geographical area of the country is 328.7 million hectares, of which 140.8 million (42.83%) hectares is the reported net sown area and 195.2 million hectares (59.38%) is the gross cropped area with a cropping intensity of 138.7%. The net irrigated area is 65.3 million hectares.

POPULATION DEPENDENT ON AGRICULTURE In India about 65 to 70 per cent population is dependent on agriculture. On the other hand in the developed countries

less then 10 per population is dependent on agriculture.

AGRICULTURE GDPThe Agriculture and Allied Sector contributed approximately 13.9% of India’s GDP (at constant 2004-05 prices) during 2013-14. Gross Domestic Product (GDP) of Agriculture and Allied Sector and its share in total GDP of the country during the last 3 years including the current year, at 2004-05 prices

is as follows :

Share of Agriculture & Allied Sector in Total GDP (Rs. In Crore)

Items Year

2010-11 2011-12 2012-13 2013-14

GDP of Agriculutre and Allied Sector 7,17,814 7,53,832 7,64,510 8,00,548

Percent to total GDP 14.60% 14.40% 13.90% 13.90%

Source :Central Statistics office, Ministry of Statistics and Programmes Implementation, Govt. of India.

There has been a continuous decline in the share of Agriculture and Allied Sector in the GDP from 14.60% in 2010-11 to 13.90% in 2013-14 at 2004-05 prices. Falling share of Agriculture and Allied Sectors in GDP is an expected outcome in a fast growing and structurally changing economy.

Capital Formation in Agriculture and Allied Sector Gross Capital Formation (GCF) in Agriculture and Allied Sector is estimated separately for public, private and the

household sectors. Items included in the estimates of GCF are; improvement of land and irrigation works, laying of new orchards and plantations, purchase of agricultural machinery and implements, agriculture construction works, additions to livestock, fishing boats and nets, etc. GCF in Agriculture and Allied Sector relative to GDP in this sector has been showing a steady increasing trend from 14.9 per cent in 2006-07 to 21.2 per cent in 2012-13.

Gross Capital Formation (GCF) in Agriculture and Allied Sector relative to Gross Domestic Product (GDP) at 2004-05 prices. (Rs. In Crore)

Year GCF in Agriculture GDP GCF as % of GDP2006-07 92057 619190 14.9

2007-08 105741 655080 16.1

2008-09 127127 655689 19.4

2009-10 133162 660987 20.1

2010-11 132734 717814 18.5

2011-12 157172 753832 20.8

2012-13 162084 764510 21.2

Source :Central Statistics Office


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IMPORTANCE OF AGRICULTURE ACCOUNTING:Agriculture Accounting importance can be viewed with the below listed reasons :

Joint stock companies (Private and Public companies engaged in agricultural activity viz. Tea plantations, Rubber Plantations, Coffee Plantations, Orchards, Cash Crops etc. are required to maintain books of accounts with reference to the Companies Act (though agriculture income is totally exempt from tax even for companies).

Under the Income Tax Act, Net Agricultural Income is required to be ascertained in order to ascertain a tax liability (with aggregation procedure) in case of certain assesses like individuals, HUF and Association of Persons or Body of Individuals. The Agricultural Income so calculated may be found with greater accuracy with reference to Books of Accounts maintained.

In case of an assessee with the status of ‘Resident’, Agricultural income derived outside India is subject to income tax in India. This can be ascertained by maintaining books of accounts.

The farmer himself will be in a position to know his fair profitability or surplus and financial position from the financial statements so drawn from the books of accounts. Farmer may be in a position to take better managerial decision in light of past performance. National Income can be calculated with better accuracy. State and Central Government will be in better position to frame Agricultural Policies in the national interest. By maintaining books of accounts, farmer will be in a better position to ascertain his income from allied activities to agriculture.

ACCOUNTING PRACTICES AND METHODOLOGY OF AGRICULTURE ACCOUTING :

As discussed in earlier paragraphs, only joint stock companies, Government farm, State farming, corporations are maintaining books of accounts and prepare financial statements for the benefit of concerned stakeholders.

In addition, few progressive farmers in India having cash crops, orchards, plantations with perennial irrigation facilities may be maintaining books of accounts in some way or other in the form of diary or register (not necessarily systematic book-keeping).

Most of the developed countries have levied tax on agriculture income. But maintaining books of accounts with large farming area, favorable climatic conditions, better capital investment etc. is not a problem for corporate farming or co-operative farming or farmer with larger area under cultivation.

In India, an accounting system is required to be introduced, propagated, and published in local languages in simplified

language to develop skill-set in this connection.

Accounting system to be followed by the farmers as is visualized may be categorized in two parts-

1) Small, Marginal Medium Farmer (even farmer with larger holding) – Simplified Accounting System (may be called as ‘Farm Accounting’)

2) Other corporate Entities, Govt. Farm, State farming corporations (even progressive farmer can follow this system) may be called as ‘Double Entry of Full proof Book-Keeping System’.

Farm Accounting for small, Marginal and Medium Farmers-

A system must have the following features to catch the SPEED-

S = Simple P = Practical E = Effective E = Economical D = Duplicable

The system is based on maintaining minimum records and Books of Account. This may also be referred as ‘Accounts from Incomplete Records’.

A simplified ‘Farm Accounting System’ based on ‘Statement of Net Worth’ or ‘Statement of Affairs’ can be easily be followed even by a small farmer.

‘Statement of Net Worth’ or ‘Statement of Affairs’ is a statement of Agricultural Assets and Liabilities as on a particular date by estimating the value of assets and liabilities. This statement is required to be prepared at the beginning and at the end of the accounting year. Accounting year for farming operations must end with cropping season (Rabbi season which usually ends in April/May). However with perennial irrigation usually three crops are also taken by a farmer viz. Kharip season Crop, Rabbi Season Crop and Small duration additional vegetable Crop. In case of perennial irrigation, there is continuing farming process throughout the period for cash crops, orchards and plantations. Even Rabbi Season end very in different locations of India. With these deliberations, it is assumed that uniform year ending date viz. 31st March will be taken as cut-off date for farm accounting purposes.

No concrete information is available regarding the pattern of farm inputs on all India basis. The study conducted by Mr. C. H. Shah on the farm in Kodinar Taluka in the state of Gujarat can be considered as an indicator. He has classified agricultural inputs as under-

1. Land :Land is a vital and most important physical asset


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of a farm. Land includes expenditure on its development also. Many times land under cultivation is taken on rental basis (barter) under the share cropping arrangement. In the sharing arrangement, the farmer cultivates the land belonging to the landlord and the cultivator pays rent for the farm in the form of a share in the Final produce.

Open well or Bore well dug (other than machinery and Electricals installed) in a land may be considered as an integral part of parcel of land and hence may be capitalized with land (issue undecrystallisation). Land is usually as non depreciable asset and may be considered for impairment as an when necessary (issue under Crystalisation).

2. Labour :The labour employed on a farm may be either family labour or hired labour. Hired labour may be temporary or permanent and may be paid in cash or kind. The opportunity cost of family labour can be assessed on the basis of man-day inputs and categories of labour. The hired labour cost may be ascertained on the basis of Labour-Pay Register with cash and Exchange column (filled with quantity of produce shared with laborer) and additational column for conversion in monetary value. These registers may be maintained on daily basis closed monthly.

3. Livestock :Livestock is usually the major physical asset of a farm-especially for a small, marginal and medium farmer. Progressive farmers have now-a-days reduced livestock and replaced with Tractors, Implements and other mechanic equipment. Livestock may be used for dairy or for draught purpose.

4. Manure, Fertilisers, Pesticides, Insecticides, Fungicides, Weedicides etc : Consumption of these items is an important input to the farm. Manure may be either farm yard manure (Gober of livestock or compost manure in a farm) or chemical fertilizer. Use of other inputs of pesticides, Insecticides, Fungicides, Weedicides etc. is increasing day by day. These are however normally purchased items.

5. Seed :The seeds used on a farm may be either purchased seeds or farm grown seeds. With the invention of high yielding varieties, the relative proportion of purchased seeds is increasing in recent times.

6. Implements :This includes Tractor, Water Pump, Bullock Cart, Plough, Sowing Implements, and Harvesting Implements etc. These implements are for long lasting use and in the nature of fixed assets.

CONCLUSION:On the basis of above, it may be concluded that Agriculture Sector has always played a pivotal role in the Indian economy. This sector continues to provide employment and livelihood for majority of the population. Over the period, the accounting practices in non-organised part of Agriculture Sector have not been evolved to the required extent. Emerging new accounting policies and practices at par with international practices will certainly improve the agriculture accounting.

It is being felt that in the initial phase there may be some issues in implementing new Ind Ass to agriculture sector. However, over the period these issues will also get resolved and accounting for this sector will result into reflecting true and fair view of the financial position and financial performance of this sector.

REFERENCES:

1. Monograph of Farm Accounting-Research Committee of The Institute of Chartered Accountantas of India (ICAI), New Delhi.

2. Compendium of Accounting Standards (2014) by ICAI.

3. Income Tax Act, 1961

4. International Financial reporting Standards (IFRS)

5. Ind AS 41, Agriculture

6. Ind AS 16, Property, Plant and Equipment.

7. Annual Report 2014-15 – Department of Agriculture and Cooperation-Ministry of Agriculture, Govt.of India.

8. Website of Department of Agriculture and Cooperation-Ministry of Agriculture, Govt.of India (http://agricoop.nic.in/)

9. Website of Agriculture Census (http://agcensus.nic.in/)

10. BACKGROUND Material for seminar on “Agriculture Accounting – Indian AS (IFRS)”Implementation Committee, The Institute of ChartaredAccountnts of India.


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GROWTH AND IMPORTANCE OF AUTOMOBILE AND AUTO-COMPONENT INDUSTRY IN INDIA

(WITH SPECIAL REFERENCE TO THE PERIOD 2010-2015)

MRS.PATIL MANISHA1

DR.THORAT H.D.2

ABSTRACT

Industrial development and growth in automobile industry are the important growth drivers of auto-component industry in India . Major part of sales is dependent on original equipment manufacturers in country . But in recent years there is substantial growth in component exports .

Component export is becoming an important growth driver and is expected to assume great importance in future .

Key words :- SME ,industrialisation ,export , growth.

INTRODUCTION

1. INDIAN ENGINEERING INDUSTRY Indian engineering industry has witnessed an unprecedented growth in the past few years as a result of increased investment in infrastructure development and industrial production . The engineering industry plays a significant role in the development of other industrial sectors in the economy . This sector is very closely linked with the manufacturing and infrastructure sector of the economy .

The Indian engineering sector is of strategic importance to the economy owing to its intense integration with other industry segments .

Growth in the domestic engineering industry has been fuelled by growth in key end-user industries and many new projects undertaken in various core industries such as railways , power and infrastructure . Capacity creation in sectors such as infrastructure , oil and gas , power , mining , automobiles , auto-components , steel , refinery and consumer durables has driven growth in this sector . For example ,as there is increase in domestic sales of automobiles , there is increase in demand for engineering goods .

Apart from demand for user industries, the availability of technical education , infrastructure that provides an increased number of technically trained human resources each year has been another key factor , aiding the engineering industry in India . Further India is being preferred by global

manufacturing companies as an outsourcing destination due to its lower labour cost and better designing capabilities .

2. SMALL AND MEDIUM ENTERPRISES The definition of small and medium enterprises (SMEs) varies from one country to another . At global level , commonly accepted criteria by most of the countries in the world for defining SMEs is related to the size of employment . In other countries , total net assets , sales , investment level are also taken into consideration .

The small scale industry has emerged as the most dynamic sector of the Indian Industrial Economy . MSME sector has consistently registered a higher growth rate than the rest of the industrial sector . There are 6000 products ranging from traditional to high-tech item , which are manufactured by the MSMEs in India . MSMEs provide the maximum opportunities for self-employment and jobs after agriculture .

DEFINITION OF MICRO ,SMALL AND MEDIUM ENTERPRISES IN INDIA The “ Micro ,Small and Medium Enterprises Development (MSMED) Act ,2006 ” is the first act for micro, small and medium enterprises which provides for establishment of a statutory National Board for micro, small and medium enterprises, filling of memoranda, measures for promotion , development and enhancement of facilities ,procurement preference and provision related to delayed payments to micro, small enterprises .The medium sector has been defined

©SBPIM

1 Assistant Professor, Dr. A.B.Telang Senior College, Nigdi,Pune - 411044 Contact No.: 9422965979 Email Id: [email protected] Head Research, S.B.Patil Institute of Management, Nigdi, Pune 411044.Contact No.: 9822214776 Email Id: [email protected]


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Classification Manufacturing Enterprises Service EnterprisesMicro Enterprises Rs. 2.5 million / 25 lakh Rs. 1 million / 10 lakhSmall Enterprises Rs. 50 million / 5 crore Rs. 20 million / 2 crore

Medium Enterprises Rs.100 million / 10 crore Rs. 50 million / 5 crore

3. ANCILLARY INDUSTRYAncillary Industries are important vehicle for meeting the growth and equity objectives of developing countries . The need for co-existence of industries having variance in size as well as products and inter-sectorial co-operation among them has been registered for the growth of the industrial sector .The inter-sectorial co-operation known by different terminologies namely, ancillarisation, subcontracting, vendor-vendee relations ,preferred supplies, etc. has become an inescapable part of large industrial projects . That means, ancillarisation has become an economic compulsion for industrial growth.

Ancillary Industries are those which manufacture parts or components for supply to other firms which manufacture or assemble end-products .

Definition – Ancillary Industries are undertakings having

investment in fixed assets in plant and machinery not exceeding Rs. 75 lakh and engaged in –

• The manufacture of parts , components , sub- assemblies ,tooling or intermediates OR

• The rendering of services , supplying, rendering or processing to supply or render 30% of their total production of the total services , as the case may be , to other units for production of other articles provided that no such undertaking shall be subsidiary of or owned or controlled by any other undertaking

OBJECTIVES

1. To study the conceptual background of automobile and auto-component industry in India .

2. To study the growth and importance of automobile and auto-component industry in India .

Current Scenario of Automobile and Auto-component Industry in India :-

Automobile and Auto-component industry has emerged as one of the India‟s fastest growing manufacturing sectors and it occupies a prominent place in the Indian Industrial scenario

.Automobile and Auto-component industry is considered as a key driver of economic growth because of its linkages with several key segments of the economy . India has one of the most competitive auto-parts manufacturing industry in the world . Now-a-days , Indian automobile and auto-component industry is recognized as outsourcing hub for several global automobile manufacturers.

The ACMA-vision 2015 document estimates the potential for Indian auto-component industry to be INR 160000 crores to INR 180000 crores by 2016. India is estimated to have the potential to become one of the top five auto-component economies by 2025 .

The key segments of the Indian automotive component market include – 1. Engine Components (31 %) 2. Drive Transmission and Steering Components (19 %) 3. Body and Chassis (12 %) 4. Suspension and Breaking Components (12 %) 5. Equipment (10 %) 6. Electrical Component(9 %) 7. Others (7 %)

Importance of Automobile and Auto-component Industry in India :-

The role of industrialisation –Industrialisation has a major role to play in economic development of the developing countries. The industrial sector has relatively important tendency to save and invest , which results continuously in high levels of investment and rapid growth in income and industrial development. With such contribution industrialisation helps self-sustaining economy to achieve its ultimate goals.

Industrialisation needs higher level of technical knowledge, skill, attitude and infrastructural facilities, which ultimately leads to overall development of industrial workers as well as society.

Industrialisation is beneficial to the growth of productivity

for the first time in India in this act .

Under the MSMED Act ,2006 , „Enterprises‟ have been classified broadly into two distinctive categories namely Manufacturing Enterprises and Service Enterprises. As per the MSMED Act,2006 , micro, small and medium enterprises are defined on their investment in plant and machinery

for manufacturing enterprises and on their investment in equipment’s for service enterprises .

The present ceilings on investment for enterprises to be classified as micro, small and medium enterprises are as follows –


11

in agriculture, trade, distribution and other relate sectors of economy. To increase productivity of every sector, industrialisation is necessary. As productivity increases, income level increases which leads to more industrialisation.

Industrialisation is most important factor of sustained economic development which can not be separated from it. Excess labour power can be absorbed due to industrialisation. Industrialisation fulfils the requirements of diversified market at higher stages of economic development. The rapid growth in industrialisation leads to corresponding growth in managerial skills for efficient operations of the most sophisticated industries and also for construction and each and every aspect of management of such industries.

Automobile Industry –The automobile industry comprising automobile and auto component sector. Growth and Status of Automobile Industry over last decade -

In India, strategy for industrial development has been changed since 1991. Before 1991 , there was a license raj, which through permits and controls ,became a major obstacle in the industrial as well as economic development.

After liberalisation and opening up of the sector to FDI, automobile sector experienced a robust growth. There was a progressive growth in the number of manufacturers . The monopoly of few established manufacturers was replaced by the entry of new manufacturers .Modern techniques and technology available to manufacturers provided them confidence to face international competition .

The automobile industry consists of passenger cars, multi-utility vehicles, commercial vehicles, two/three wheelers. At present there are –

• 15 manufacturers of passengers cars and multi-utility vehicles

• 9 manufacturers of commercial vehicles • 16 manufacturers of two/three wheelers • 14 manufacturers of tractors • 5 manufacturers of engines

Direct and indirect employment in automobile industry - 12.5 million people and the sector currently contributes nearly 5% to national G. D. P.

Where does India stand?

• Largest TRACTOR manufacturer

• 2nd Largest TWO WHEELER manufacturer

• 2nd Largest BUS manufacturer

• 5th Largest HEAVY TRUCK manufacturer

• 6th Largest CAR manufacturer

• 8th Largest COMMERCIAL VEHICLE manufacturer

The industry has been able to restructure itself , absorb newer technology , align itself to the global developments an realize its potential . This has significantly increased industry contribution to overall industrial growth in the country .

Automobile Production Trends In The Period of 2010-2015.

PRODUCTION IN UNITS ‘in ‘ooo

YEAR PASSENGER VEHICLES

COMMERCIAL VEHICLES TRACTORS TWO / THREE

WHEELERSCONSTRUCTION

VEHICLES TOTAL

2010-11 2987 753 545 14176 62.3 18523.3

2011-12 3146 929 640 16330 69.2 21114.2

2012-13 3234 833 579 16584 50.5 21280.5

2013-14 3087 699 697 17713 52 22248

2014-15 3220 697 613 19449 56 24035


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Automobile Production Trends -Percentage Growth In The Period of 2010-2015

GROWTH PERCENTAGE OVER PREVIOUS YEAR

YEAR PASSENGER VEHICLES

COMMERCIAL VEHICLES TRACTORS TWO / THREE

WHEELERSCONSTRUCTION

VEHICLES TOTAL

2011-12 5.3 % 23.4 % 17.4 % 15.2% 11.1% 14%2012-13 2.8 % -10.3% -10.5% 1.6% -27.0% 0.79%2013-14 -4.6 % -16.1 % 20.4 % 6.8% 2.97% 4.6%2014-15 4.3% -0.3 % -12.1 % 9.7% 7.7% 8.03%t

AUTO COMPONENT INDUSTRY Rapid growth in automobile industry after liberalisation and opening up of the sector to FDI , has led to comparative and corresponding growth in auto component sector in the country . The auto component sector has shown growth in different parameters , such as technology , flexibility , sales , production and over all growth of sector .

Continuous economic liberalisation by Government of India attracted many global vehicle manufacturers towards India and force them to select India as one of their prime business destinations . Arrival of such vehicle manufacturers has led to major growth in auto component sector .

With great prospects , auto component industry in India has been recognized as one of the key auto component centre in


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Asia .Global vehicle manufacturers started to recognize India as an outsourcing hub for auto parts for their companies such as Ford, General Motors, Daimler Chrysler, Fiat, Volks Wagaon and Toyato . The auto component industry has a major role to play in global automotive supply chain . All these factors led to rapid changes in auto component industry‟s export scenario .

Below given are some of the characteristic factors which causes growth in the Indian auto component industry --

• Robust Legal and Banking Infrastructure • Reforms in Indian industrial policy led to industrial

development . • Developing infrastructure facilities in urban and

suburban areas and rural to urban migration • Growing middle class and income level • Demographics advantage and largest youth driven

economy

• Growth and technological development in agricultural sector

• Growth in domestic automobile market • Availability of manpower at comparatively low cost

which ultimately causes low manufacturing cost • Increased manufacturing cost across developed

countries .

• Auto component sector is one of the most important sector in developing economy like India.

• Standard of quality and engineering expertise .-- 2nd largest pool of Certified Professionals and highest number of Qualified Engineers in the world

Indian auto component companies have a great cost advantages because of lower labour cost . The ACMA states that wage cost accounts for 3% to 15 % of revenues for Indian manufacturers as compared to 20 % to 40% for US manufacturers .

Figures in INR ‟00 Crs.

Growth Parameter & Percentages

2009-10 2010-11 2011-12 2012-13 2013-14 2014-15

Turnover 1386 1883 2046 2160 2117 2348

Growth rate(%) 25.3 35.9 8.7 5.6 -2.0 11.1

Export 189 303 427 526 614 685

Growth rate(%) 19.2 60.3 40.9 23.3 16.7 11.4

Import 360 497 667 744 771 829

Growth rate(%) -4.3 38.1 34.2 11.5 3.6 7.5


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CONCLUSIONIndustrial development and growth in automobile industry are the important growth drivers of auto component industry in India .Major part of sales is dependent on original equipment manufacturers in country. But in recent years there is substantial growth in component exports .

During economic slowdown, to reduce cost, investment and technological improvement, original equipment manufacturers are reducing in-house component production. It enhances the component exports.

Component export is becoming an important growth driver and is expected to assume greater importance in future .

REFERENCES :

A Report on Engineering Sector

Small-Scale Industries and Entrepreneurship - Vasant Desai

Indian Economy - Gaurav Datt; Ashiwani Mahajan

Automotive Manufacturing in India - “Market Line Industry Profile”

Human Resource and Skill Requirements of Auto and Auto-component Sector, NSDC .

A Report on Auto and Auto ancillaries, in India

Micro,Smalland Medium Enterprises (MSMEs) in India; An Appraisal - Shambu Ghatak

Entrepreneurship Development in India; Evolution of Policy Support -- Laghu Udyog Samachar

www.msme.gov.in - Annual Report

India in Business -website - Ministry of External Affairs


15

CHALLENGES AND PROSPECTS OF AGRICULTURAL MARKETING IN INDIA: AN OVERVIEW

Kranti V Shingate

ABSTRACT

Human kind invented agriculture 10,000 years ago. After a long mile, nowhere in the world has agriculture made an impact as it has in India. The economy of the second most populous country in the world is inextricably linked to the pulse of its agricultural success or failure. The green revolution in the late 60’s saw the country through a period of what could otherwise have been the worst famine in the world.

Agriculture is different from industry and plays a significant role in the economic development of a nation. India’s prosperity depends upon the agricultural prosperity. There are many kinds of agricultural products produced in India and the marketing of all these farm products generally tends to be a complex process.

Given the declining share of traditional agricultural commodities in production, consumption and trade, horticulture and other non-traditional high-value agriculture represent an important area of potential income growth in rural areas. The high-value agriculture-led-growth strategy also provides significant scope for achieving greater commercialization of smallholder agriculture. Despite the potential, the contribution of high-value agricultural exports is still small but increasing. This paper examines the past and existing performance and identifies likely challenges and opportunities for high-value-agriculture in the country.

Agricultural marketing involves many operations and processes through which the food and raw materials move from the cultivated farm to the final consumers. Agriculture provides goods for consumption and exports and manufacturing sectors. The suitable marketing system should be designed so as to give proper reward or return to the efforts of the tiller of the soil. Market information is a means of increasing the efficiency of marketing system and promoting improved price formation. It is crucial to the farmers to make informed decisions about what to grow, when to harvest, to which market produce should be sent and whether or not to store it. Awareness of farmers on different components of market information and its utility was very poor (11 to 37 %) as compared to that of traders (75%). Out of the expectations of farmers on grades, quality, prices in potential markets, price projections; only real time arrivals and prices were documented and disseminated with traditional approach. Hence there is a need to create awareness among the farmers through the agricultural extension agencies like the State Department of Agriculture, Krishi Vigyan Kendras so that the marketing information on agriculture commodities are incorporated in the extension services along with production aspects to the farmers.

Key words - Agriculture, Cultivation, Marketing, food-grains, commercial-crops

© SBPIM

Assistant Professor, Post Graduate College of Agribusiness Management, Talegaon Dabhade,PuneContact No.: 9970395686 Email Id: [email protected]

INTRODUCTION Agricultural marketing covers the services involved in moving an agricultural product from the farm to the consumer. Numerous interconnected activities are involved in doing this, such as planning production, growing and harvesting, grading, packing, transport, storage, agro- and food processing, distribution advertising and sale. Some definitions would even include “the acts of buying supplies, renting equipment,

(and) paying labor”, arguing that marketing is everything a business does. Such activities cannot take place without the exchange of information and are often heavily dependent on the availability of suitable finance.

Given the declining share of traditional commodities in production, consumption and trade, horticulture and other non-traditional, high-value, agricultural crops represent an important area of potential income growth in rural areas.


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The high-value agriculture-led-growth strategy also provides significant scope for achieving greater commercialization of smallholder agriculture. Despite the potential, the contribution of high-value agricultural exports is still small but increasing. This study aims to study the past and existing performance, identify likely challenges and opportunities for high-value-agriculture, defined as fruits and vegetables, livestock and fisheries, in the country, determinants of growth of high value agriculture and changing consumption patterns using secondary data as well as through selected case studies.

Marketing systems are dynamic; they are competitive and involve continuous change and improvement. Businesses that have lower costs, are more efficient, and can deliver quality products, are those that prosper. Those that have high costs, fail to adapt to changes in market demand and provide poorer quality is often forced out of business. Marketing has to be customer-oriented and has to provide the farmer, transporter, trader, processor, etc. with a profit. This requires those involved in marketing chains to understand buyer requirements, both in terms of product and business conditions.

In Western countries considerable agricultural marketing support to farmers is often provided. In the USA, for example, the USDA operates the Agricultural Marketing Service. Support to developing countries with agricultural marketing development is carried out by various donor organizations and there is a trend for countries to develop their own Agricultural Marketing or Agribusiness units, often attached to ministries of agriculture. Activities include market information development, marketing extension, training in marketing and infrastructure development. Since the 1990s trends have seen the growing importance of supermarkets and a growing interest in contract farming, both of which impact significantly on the way in which marketing takes place. In India, there are network of cooperatives at the local,

Throughout the world, major shifts in dietary patterns are occurring, even in the consumption of basic staples towards more diversified diets both in urban and rural areas as well as among rich and poor households. Rising income, urbanization, a change in dietary preferences, socio-demographic factors, increased awareness about the health benefits of fruits and vegetables, food industry marketing and policies of trade liberalization over the

past two decades have been major market drivers for the growth of high value agriculture. To meet the changing demands, production systems are also moving towards high value crops, but extent and pattern of such shifts vary across regions/states due to agro-climatic, socio-economic and demographic factors. In this section, the progress and potential of high value agriculture is examined at all-India and state levels.

International Journal of Agricultural and Food Science 2013, 3(3): 108-118 The commodities that are mostly handled are food grains, jute, cotton, sugar, milk and areca nuts. Currently large enterprises, such as cooperative Indian sugar factories, spinning mills, and solvent-extraction plants mostly handle their own marketing operations independently. Medium- and small-sized enterprises, such as rice mills, oil mills, cotton ginning and pressing units, and jute baling units, mostly are affiliated with cooperative marketing societies. Market information is an important facilitating function in the agriculture marketing system. It facilitates marketing decisions, regulates the competitive market process and simplifies marketing mechanisms. Market information is a means of increasing the efficiency of marketing system and promoting improved price formation. It is crucial to the farmers to make informed decisions about what to grow, when to harvest, to which market produce should be sent and whether or not to store it. Improved information should enable traders to move produce profitably from a surplus to a deficit market and to make decisions about the viability of carrying out storage where technically possible. Agricultural marketing can be defined as the commercial functions involved in transferring agricultural products consisting of farm, horticultural and other allied products from producer to consumer. Agricultural marketing also reflect another dimension from supply of produce from rural to rural and rural to urban and from rural to industrial consumers. In the olden days selling of agricultural produce was easy as it was direct between the producer to the consumer either for money or for barter. It brief, it was selling not marketing. In the modern world it became challenging with the latest technologies and involvement of middlemen, commission agents who keep their margins and move the produce further. As it is well known more the number of mediatory more will be the costs as each transaction incurs expenses and invites profits. Ultimately when it comes to the producer the cost of the produce goes up steep. In the entire process of marketing the producer gets the lowest price and the ultimate consumer pays the highest as the involvement of more middlemen in the entire distribution process. There are several complexities involved in agricultural marketing as agricultural produce involves element of risk like perish ability and it again depends on the type of produce. If the agriculture produce happens to be a seasonal one it involves

another kind of risk. Likewise, there are several risk elements involved in agricultural marketing. The pricing of the produce depends on factors like seasonality and perish ability and it depends on the demand and supply also. And all these are interwoven and ultimately make a deep impact on agricultural marketing.

Agriculture in India has directly or indirectly continued to be the source of livelihood to majority of the population. Indian agriculture has seen a lot of changes in its structure. India, predominantly an agricultural economy, has healthy signs of transformation in agriculture and allied activities. India has


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seen agriculture as a precious tool of economic development as other sectors of production depend on it. Efficient backward and forward integration with agriculture has led to globally competitive production system in terms of cost and quality. Cooperatives seem to be well positioned to coordinate product differentiation at the farm level and to integrate forward into value added processing activities. Indian agriculture can be balanced and made efficient through proper and better management practices. The present study brings out past and present scenario of agricultural marketing prevailing in India, its challenges and future recommendations. Moreover the opportunities provide by agricultural marketing should be tapped effectively by the marketers.

AGRICULTURAL MARKETING IN INDIA Problems and Prospects

There are several challenges involved in marketing of agricultural produce. There is limited access to the market information, literacy level among the farmers is low, multiple channels of distribution that eats away the pockets of both farmers and consumers. The government funding of farmers is still at nascent stage and most of the small farmers still depend on the local moneylenders who are leeches and charge high rate of interest. There are too many vultures that eat away the benefits that the farmers are supposed to get. Although we say that technology have improved but it has not gone to the rural levels as it is confined to urban areas alone. There are several loopholes in the present legislation and there is no organized and regulated marketing system for marketing the agricultural produce. The farmers have to face so many hardships and have to overcome several hurdles to get fair and just price for their sweat.

In Indian agriculture the factors like high soil productivity, supply of balanced crop nutrients, efficient water management, improved crops, better plant protection, post-production management for value-addition and marketing, are responsible for higher yield as compared to most of the other countries.

Achievements of Indian agriculture like development of HYVs, new hybrids of different crops, research in the area of vaccine production, varietal development through somoclonal variations, developing better quality products and transgenic in crops such as brinjal, tomato, cauliflower and cabbage have strengthened the field. In 21st century agriculture, application of modern biotechnologies like DNA finger printing, tissue culture, terminator gene technology and genetic cloning will hold the key in raising the productivity.

In the new millennium, the challenges in Indian agricultural sector are quite different from those met in the previous decades. The enormous pressure to produce more food from less land with shrinking natural resources is a tough task for the farmers. To keep up the momentum of growth a careful economic evaluation of inputs like seeds, fertilisers, irrigation

sources etc are of considerable importance.

Considering the irrigation needs in Indian agriculture, emphasis be given to promote the proven cost-reducing micro-irrigation technology of drips irrigation which helps conserve water reduces fertilizer inputs and ensures higher productivity. Farmer awareness programme coupled with subsidy incentive may prove helpful strategies. The sustainable method of irrigation needs to be popularized. Salinity and water logging problems in the commands of major irrigation systems need to be minimized by recognizing and incorporating corrective measures. Further, proper drainage facilities involving farmer’s groups need to be created. Watershed approach to management of water in rainfed areas should continue to get the due thrust.

Diffusion of fertilizer consumption in Indian agriculture has been quite widespread. The imbalances in the use of N, P and K have become highly conspicuous. The intensity of fertilizer use has gradually gone up from about 3 kg/ha. In early Sixties to about 88 kg/ha in 1997-98. Therefore, wider distribution of fertilizer needs to be promoted by covering regions with low use of fertilizers such as central and eastern regions of Uttar Pradesh (in the case of wheat and rice) through creation of an extensive network of rural infrastructure (including roads and credit) for establishing an appropriate interface of input markets and output markets in these regions.

In Indian agriculture, multiplication, distribution and availability of good quality seed is crucial to accelerated food production. With entry of MNCs in seed production and distribution and consequent effects of patenting under the WTO regime, providing quality seeds to farmer at an affordable cost will be a measure challenge in future. To meet the growing competition companies should adopt modern processing technologies and seed growers have to be trained in cost reducing methods of growing quality seed material.

Indian agriculture has to become more cost-effective to meet the growing challenges and opportunities arising out of WTO agreements and the consequent globalization impacts. For this, future growth of agriculture has to be yield based. Development of infrastructure is essential to support this growth.

The farm credit system in Indian agriculture, evolved over decades has been instrumental in enhancing production and marketing of farm produce and stimulating capital formation in agriculture. Credit for Indian agriculture has to expand at a faster rate than before because of the need to step-up agricultural growth to generate surplus for exports, and also because of change in the product mix towards animal husbandry, aquaculture, fish farming, horticulture and floriculture, medicinal plants, which will necessitate larger investments.


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Indian agriculture has potential and prospects in the following areas of agri business:-India is the third largest producer of fruits and the 2nd largest

grower of vegetables. The total production is about 27.83 MT in fruits and 54 MT in vegetables. The farmers can grow any type of vegetable and fruits throughout the year.

Flowers are estimated to be grown in about 35,000 ha in India of which 10,000 ha are under modern flowers like rose, carnation, orchid, etc. Major flowers grown are jasmine, marigold, rose, etc. In many countries including Israel flowers are cultivated under green house conditions. In India, the land and climate are suitable to grow all types of flowers throughout the year in one part or the other.

India has attained self sufficing in food. It is now exporting rice and wheat to some countries including China. There is a vast scope of exporting the cereals to various countries.

Though India’s irrigated area is about one third of the world, the area under drip and sprinkler irrigation is very meagre compared to total drip and sprinkler area in the world. The area under drip is 1,60,000 ha and under sprinkler, it is about

0.60 Mha. It is estimated that in the next 7 years, the area under drip and sprinkler will be about 1 Mha and 5 Mha respectively.

India’s share in the world market has risen to 0.7%. If the trend continues it is expected that the trade may go upto 1.5%. This is because of rising exports and the opening up of the domestic market rapidly. India will make its presence felt on the world trade scene.

In Indian agriculture, rural women play a vital role and participate in all stages of crop production, as they constitute 50% of rural labour force. They contribute in agricultural operations like, transplanting, manuring and fertilizing, harvesting, threshing, winnowing, drying and carrying the product. To better exploit the emerging opportunities, there is need for changing property rights in favour of women, evolving technologies to suit women farmers, increasing the number of women extension workers, educating and training women farmers

GLOBALISATION The globalization has brought drastic changes in India across all sectors and it is more so on agriculture, farmers and made a deep impact on agricultural marketing. It is basically because of majority of Indians are farmers. It has brought several challenges and threats like uncertainty, turbulence,

competitiveness, apart from compelling them to adapt to changes arising out of technologies. If it is the dark cloud there is silver lining like having excellent export opportunities for our agricultural products to the outside world.

AGRICULTURAL MARKET REFORMS Below are the certain measures that can be affected to bring out the reforms in agricultural marketing so as to ensure just and fair price for the farming community.

Provide loans to the farmer at low rate of interest so that they will be freed from the clutches of local moneylenders who squeeze them. It is said that farmer in born into debt, lives in debt and dies in debt. Right from the beginning of the life, the poor farmers approach money lenders for investing into cultivation who levies very high rate of interest and who takes away the maximum amount of the share from the produce. In case if the crop fails due to natural calamities then the situation would be worse as the farmer is not in a position to pay his loans. And ultimately he is forced to sell the land at throw away price to the money lender.

It is essential to provide subsidized power supply and loans to the farmers as the expenses towards power consumption takes considerable amount of investments.

Generate a new distribution network that connects the farmers directly to the consumers to get maximum returns as the present channel of distribution involves multiple mediatory who take away the major portion of profits which otherwise the farmers is supposed to get.

Elimination of the existing loopholes in the present legislations is warranted.

There should be stringent action against black marketers and hoarders who buy the stocks from farmers at cheap prices and create artificial demand and then sell the stocks at higher prices.

Creating local outlets at each village where the farmers sell their stocks directly to the consumers or the authorized buyers at fixed prices would help to a great extent. Intervention of government in this network is essential to bring the fruits to the farmers.

At the village level there should be counseling centers for farmers about the worth of their stocks so that they can get fair price. The crucial role of Non-Governmental Organizations (NGOs) is needed in this context.

The existing legislations are outdated and are not in tune with the changing trends and technological inventions and the same need to be updated forthwith.

The retail revolution has brought several changes in the retail sector where the retail giants buy in bulk directly from the suppliers and sell to the consumers directly and in this process they pass the benefits to the consumers as well. In the past the consumers were paying more for less as there were many channels of distribution system and now the consumers pay less for more.


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The government is already fulfilling the objective of providing reasonable prices for the basic food commodities through Public Distribution System with a network of 350,000 fair-price shops that are monitored by state governments. It is more effective in states like Punjab, Haryana and some parts of Uttar Pradesh. And the same needs to be strengthened across the country.

Government should levy single entry tax instead of levying multiple entry taxes either directly or indirectly for the transactions and activities that are involved in agricultural marketing such as transportation, processing, grading etc., as it would benefit both farmers and consumers directly.

FARMERS ROLE IN MARKETING Direct marketing of the agricultural produce is the need of the hour. Efforts may be made to provide facilities for lifting the entire stock that farmers are willing to sell with incentive price. There should be provision for storing the stocks such as godowns and warehouses. It helps the farmers to hold the stocks till the prices are stabilized. Usually immediately just after the harvest the prices would be low and if the farmers are patient in holding the same for some time it would fetch better prices. The brokers play the games during the trading of the agricultural stocks which the farmers do not know and realize because of improper information about the market prices. The brokers without any investment and with their negotiation skills transfer stocks by buying at low prices and selling at higher prices to the other end. The farmers need to be educated in this regard. There should be all-round

rationalization and standardization of the prices through legislative means. Presently there is vast gap between the marketing strategies of agricultural produce in India and abroad and the same needs to be bridge. Remove the various malpractices prevalent in the present system. There is need to set up marketing committees which has the representation of growers, merchants, local bodies, traders and nominees from the govt. There should be collective and integrative efforts and energies from all quarters for ensuring just and price for farmers.

NEED FOR AGRICULTURE MARKET INFORMATION SYSTEM Nickels (1978) in his book on the Principles of Marketing has stated that information is one key to increase marketing success for everyone. A market information system is an important tool used by modern management to aid in

problem solving and decision making. Market Information System is a process of gathering, processing, storing and using information to make better marketing decisions and to improve marketing exchange (Amrutha, 2009). Subrahmanyam and Mruthyunjaya (1978) based on their study on marketing of fruits and vegetables in Bangalore suggested for proper dissemination of market intelligence and information through all possible means of communication, for improving the marketing efficiency of fruits and vegetables. Raigar (1988) in his conceptual analysis of Management Information System (MIS) and Management Science opined that though computers have of course a role to play in MIS, all computerized systems do not necessarily mean MIS nor does MIS necessarily imply computerized processing of data to create information. Rahman (2003) reported that the growers received low prices in Bangladesh because of lack of market information which resulted in wide inter-market price variation. Improvement of agricultural market information services was necessary for domestic market efficiency and to integrate domestic agricultural market with regional and international market for sustainable development of agriculture sector and to ensure country‟s long run food security.

REFERENCES :

1. Birthal, P.S., P.K. Joshi, Sonia Chauhan and Harvinder Singh (2008), “Can horticulture

2. revitalize agricultural growth”, Indian Journal of Agriculture Economics, Vol. 63, No.

3. July-September), pp. 310-21.

4. Chand, Ramesh, S.S. Raju and L.M. Pandey (2007), “Growth crisis in agriculture _ Severity and options at national and state level”, Economic and Political Weekly, Vol. 42, No. 26, June 30, pp. 2528-2533.

5. Chand, Ramesh, S.S. Raju and L.M. Pandey (2008), “Progress and potential of horticulture in India”, Indian Journal of Agriculture Economics, Vol. 63, No. 3, July-September), pp. 299-309.

6. CSO (2008), “State-wise estimates International Journal of Agricultural and Food Science 2013, 3(3): 108-11.


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CUSTOMER RELATIONSHIP MANAGEMENT AND SERVICE QUALITY IN THE LIFE INSURANCE INDUSTRY: A CASE STUDY OF LIC IN GOA

Ms. Santana Fernandes1

Dr. Filipe Rodrigues e Melo2

ABSTRACTCustomer Relationship Management has been widely recognised as a strategy for nurturing and enhancing a company’s interaction and relationships with its clients and customers. CRM acts as a tool to attract and acquire new customers, satisfy the existing customers, thus retaining them and thereby increase the profit levels of the company. The objective of the paper is to study the CRM practices of Life Insurance Corporation in Goa as well as to assess its quality of services and to study the role of service quality and its dimensions as an antecedent of customer satisfaction. The primary data is collected from a sample size of 200 policyholders of LIC is analysed by using SPSS 20.0. Use of SERVPERF scale has been made use of for the study. Tangibles, Responsiveness and Empathy were found to have an influence on Customer Satisfaction.

© SBPIM

1Research Scholar, Goa University, Goa

2Head, Dept of Commerce, St. Xavier’s College, Mapusa, Goa

Contact No.: 9422061226 Email Id: [email protected]

INTRODUCTION:With the entry of the private insurance providers in India, which was the outcome of the process of Liberalisation, Globalisation and Privatisation, saw the Indian Insurance Industry make great strides. The Industry has become competitive and in this environment the insurance providers are seized with the crucial task of retaining present customers. The approach of the Insurance providers in interacting with its policyholders has also undergone a sea change. The

consumer today is well informed and demands customised products as per his need and requirements. The state owned life insurance provider Life Insurance Corporation who undoubtedly played the monopoly role in the life insurance industry since its inception was too faced with the daunting task of satisfying its present customers and retaining them. The private insurance providers are facing the crucial task of carving a niche and creating a share for themselves in the insurance market. Thus, maintaining and strengthening relations with their customers is the need of the hour. The strategy that is employed by the insurance providers to acquire new customers, maintain good relations with them and retain the existing ones is Customer Relationship Management (CRM). Customer Relationship Management is a concept that became very popular during the 1990’s. It offered profitable changes to businesses that chose to use it, as it allowed companies to interact with their customers on a whole new platform. Today, CRM is being used to achieve the best. Companies want to maintain strong relationships with their clients while simultaneously increasing their profits.

Customer relationship management is a recognized widely and is implemented as a strategy for managing and nurturing a company’s interaction with customers, clients and sales prospectives. It involves not only using technology to organize, automate and synchronize business processes but also for marketing customer service and technical support. The overall goals are finding, attracting and winning new clients and retaining the existing ones. Customer relationship management can be identified as a business strategy encompassing all client relating departments and even beyond where an implementation is effective. People, process and technology work in tandem to increase profitability and reduce operational costs.

All businesses are there to support its clients for it to achieve success. The focus of all the companies should be on their clients. In order to know the customer preferences, companies have to collect, group and analyze customer data, a tool that assists them in doing all these process is called as CRM Tool. By knowing the preferences of their customer it will help them to build a strong bond with existing customers and also to attract many more new customers.

REVIEW OF LITERATURE:Relationships with the customer has existed since the advent of trade and business as relationships were on one to one basis. It was the age where products were customized as people were skilled in a particular area. Thereafter, the industrial age and the revolution that it brought in extended the markets


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to far and wide areas, thus desegregating the producer and final consumer. (Kumar Alok, et al, 2007). Thus rose a need to maintain one to one contact with the consumer, and what gave rise was Customer Relationship Management.

CRM as defined by Bob Thompson- CRM guru.com. CRM is a business strategy that applies to every organization. It means working with customers such that they receive great services and are motivated to return again and again to do more business with the Company.

As such the customer is now considered to be the king. The cost involved in acquiring a new customer is five times more than retaining a customer (TARP). Therefore it becomes pertinent to keep customers satisfied, and maintain relations with them. The longer the customer remains with the company, the consumption pattern increases and higher value is generated for the company (Salazar Maria T. et al, 2004). Customer Relationship Management has been gaining tremendous importance in the recent years and is needed for the survival of business. All customers want is a relationship with the supplier (Virgil Tony, 2009). Keeping in constant touch with policyholders is highly appreciated by policyholders as insurance is a long term contract. The insurance providers win the confidence of their policyholders and give more importance to market leadership rather than market share (Venogopal R., 2009).

Customer Relationship Management is about managing relations. Customer Relationship means deciding and implementing the relationship programmes, strategies and functions. It is the process of identifying and keeping profitable customers. Hence CRM is identifying and retaining the most valuable customers to achieve a sustained profitable growth.(Khandekar N. A., 2012).As such, building relationships with customers is the fundamental business of every CRM process (Parvatiyar A. and ShethJagdish, 2001).

Implementation of a CRM programme optimizes the relationship between organization and its clients and thereby gain a competitive advantage in the market (Berndt Adele et al, 2005). The current practices of CRM by service sector units positively influence customer relationship practices and responses. (Basalingappa A., 2006) It could be said that CRM holds the key in conducting business in order to earn high profits. (Goswami P., 2007). CRM is successful by placing the needs and desires of the consumer at the heart of the business by integrating them with the organization’s strategies, people, technology and business processes. (Echeybi A. and Amri L., 2010).The trend in marketing towards building relationships with customers continue to grow and marketers have been increasingly interested in retaining customers over the long term . Business houses are facing a paradigm shift from managing a market to managing customers. The service sector is one of the most challenging and competitive landscape and face cut throat competition as in the case of

businesses. Therefore rendering of high quality of services is the prime requisite for survival (Dash Biswamohan, 2013). As

competition in the service sector increases, the concept of Service Quality has become increasingly important. (Burch Edward et al, 2002). Service Quality is crucial to acquire loyal customers. (Anjor Priyanka et al, 2014).

Service Quality is one of the antecedents of customer satisfaction and is more and more than often identified with customer satisfaction itself, although a conceptual difference still remains. Quality would not exist without satisfied customers. (Ruggieri Alessandro et al, 2014, Brady et al 2002, Zeithamal et al, 1998). And improved service quality will result in more satisfaction. (Cronin and Talyor, 1992).

To measure the consumer perception of service quality, Parasuraman et al 1998 compiled the SERVQUAL scale and many research studies have been undertaken on its basis. However now several researchers have challenged the appropriateness and validity of the SERVQUAL scale. (Hossain Jaber Muhammad et al 2013). They opined that the expectation components of SERVQUAL Model be discarded and only the Performance component be used. This performance-only Model is SERVPERF. Researchers have empirically proved that the service performance scale SERVPERF is more effective than SERVQUAL (Cronin, 1992; Brady et al , 2002 ).

RESEARCH METHODOLOGY:The study is based on Individual Life Insurance policyholders of Life Insurance Corporation from Goa. The sample size is 200. The sample is represented by a cross section of individuals from the salaried class, business class, professionals and senior citizens. The individuals were approached by asking a filter question as to whether they had a LIC life insurance policy. The sampling method used was Convenience Random Sampling.

SOURCES OF DATA: The study is based on both primary and secondary data.

Primary Data: The survey method was used to gather the required primary data. Structured Questionnaires were distributed to policyholders of LIC. This assisted in eliciting information that was necessary to fulfil the objectives of the study.

Secondary Data: For the purpose of this study data was gathered from Reference Books, Journals, websites, Annual Reports of IRDA, LIC, existing research studies on CRM, etc.

To attain the second and the third research objectives, the primary data was collected by a structured questionnaire. Part A consisted of Demographic details of the sample and Part B consisted the 22 items related to Service Quality based as SERVPERF. Customer Satisfaction was measured as a single item based on the literature review.


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Statistical tools like Correlation and Regression Analysis have been used to analyse the data with SPSS 20.0.

RELIABILITY ANALYSISCronbach’s Apha Reliability Test was run to check the reliability of the data. The overall Cronbach’s Alpha value is 0.859. The five dimensions of Service Quality also have a high Cronbach Alpha score (Table No.1). According to Nunnally (1978), an alpha value which is more than 0.70 indicates a high level of reliability of the instrument.

Reliability Scale

Table No. 1: Reliability of the factors of SERVPERF

Dimensions of Service Quality

No. of items

Cronbach’ Alpha

Tangibles 4 .758

Reliability 5 .795

Assurance 4 .846

Responsiveness 4 .853

Empathy 5 .817

Source: Primary Data

RESEARCH OBJECTIVES: 1. To study the existing CRM practices in LIC 2. To assess the service quality of LIC 3. To assess the influence of Service Quality factors on

customer satisfaction.

CUSTOMER RELATIONSHIP MANAGEMENT AT LIFE INSURANCE CORPORATION:The greatest impact of the liberalization process in India in the insurance sector is the shift in focus from sellers to buyers market (Bhadri Urmi, 2007). And thus LIC was also forced to shift its attention to the policyholders and provide them with individual attention through its various CRM initiatives.

Life Insurance Corporation has an excellent CRM machinery in place and with its effective implementation tries to reach out to the enormous base of policyholders.

CRM at LIC of India is viewed as a discipline as well as a set of discreet software technologies which enable automating and improving the business processes with managing relationships in the arena of sales, marketing, claims, customer service and support. It has been the pioneer to use Information Technology since 1990s in servicing their clients as well as the enormous amount of policies. (Rai Alok K., 2013).

Therefore a need was felt to study and compare the implementation and evaluation of CRM in the life insurance industry with special reference to LIC in Goa. This study is significant as it will help the insurance provider (LIC) to create a positive effect on its customers by overcoming

its shortcomings in relation to customer service and satisfaction.

Today LIC functions with 2048 fully computerized branch offices, 109 divisional offices, 8 zonal offices, 992 satellite offices and the corporate office. LIC’s Wide Area Network covers 109 divisional offices and connects all the branches through a Metro Area Network. LIC’s ECS and ATM premium payment facility is an addition to customer convenience. With a vision of providing easy access to its policyholders, LIC has launched its SATELLITE SAMPARK offices. The satellite offices are smaller, leaner and closer to the customer. The digitalized records of the satellite offices will facilitate anywhere servicing and many other conveniences in the future.

LIC IN GOAThe Goa division of LIC commenced operations in 1986. As on 31stMarch, 2013 there were 11 branch offices, 3 satellite offices and 3 Mini Offices. During the financial year 2012-13 LIC issued 1,12,866 new policies in Goa and settled 391.49 crores as claims. The Goa division has an Agent base of 3,783. LIC has tied up with Corporation Bank, Dena Bank, Indian Overseas Bank, Bank of Maharashtra, Central Bank of India and the Syndicate Bank for selling 16 of its products. Besides the alternative channels of premium collection are namely; ECS, Electronic Bill Presentation and Payment, ATMs of AXIS and Corporation Bank, Portal Payment, Senior Business Associates (13) and Premium Collection Points (181) .

CRM AT BRANCH LEVELA. CUSTOMER RELATIONSHIP MANAGER: Each branch has

a Customer Relations Executive (CRE) who is in-charge of Customer Relationship Management. The main purpose behind this is to champion the cause of customers. The CRE also serves as a vital link between the customer (policyholder) and the Insurance Co.. The CRE also obtains feedback for improvement purpose.

B. CHIEF LIFE INSURANCE AGENT: This scheme was started in 2008. At a point of time a CLIA can mentor and agents ranging from minimum of 5 to a maximum of 25 members (agents)

C. CUSTOMER ZONE: The one stop centre for resolution of all servicing needs of a customer with special emphasis on ‘Quality Experience’.

At the Branch level the following CRM measures are adopted.

• Customer service desk- which is a Single Window System that provides all services at one counter.

• Complaint Desk• Correspondence Desk• Research and Survey: explores new business and retains

existing customers• Customer Relations Group that works with the Customer

Relations Executive to deal with High-End customers.


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CRM AT ZONAL LEVEL:Programmes are held for the staff and field personnel of zones with the help of the CRM Managers and faculty of trained zonal training centres. At the zonal level the employees and the advisors are guided, monitored and recommends activities and suggests appropriate measures for betterment of Customer Relations.

CRM AT DIVISIONAL OFFICEAwareness programmes are conducted for staff and field personnel for customer orientation. There also exists a Grievance Redressal Machinery at the Divisional level along with a Complaint cell that even accepts web-based complaints. Through this Grievance and Complaint cell efforts are made to settle the complaints and issues of contention at the earliest.

OTHER CRM INITIATIVESIn 2006, LIC roped in IBM and Wipro and undertook a huge CRM Project to enhance the quality of services as well to manage the data through use of technology. Such innovations in the Insurance sector can be utilised also to increase the efficiency in respect to assurance of quality.

i. New policies are issued within 5 daysii. Issue of policy status reports and Quicker revival of

lapsed policies

iii. Training programmes for CRM personnel and agents in technology

iv. Infrastructural support e.g. Support counters, enquiry counters, call centres

v. Service recovery: satisfy an aggrieved customer and reduce damage caused by an error or deficiency in product or service rendered

vi. Green channel: a proposer gets FPR and the Policy Bond on the spot

vii. Interactive Voice response System (IVRS) available 24 x 7, in about 65 centres in 15 cities with a Universal Access Code

viii. Information Kiosks in over 150 locations in the country. The policyholders can check the status report and

details about insurance plans.

ix. Tie-ups with banks and service providers (franchisees) to offer online premium collection facility

x. The web portal of LIC www.licindia.com provides a lot of services right from purchasing a policy to servicing of an existing policy and offers a plethora of options right from premium calculator to online filing of a complaint.

xi. Payment of premium through ATMs of Corporation Bank and Axis Bank

xii. Mobile based app; initiated through in house research. xiii. Data mining and Data Warehousing has made LIC into

one of the world’s top life insurance database in the world.

DEMOGRAPHICS OF THE SAMPLE:

No. % No. %Gender Male

Female102

98

51

49

Occupation Salaried

RetiredDependentsProfessionalBusinessmen

76

30

12

31

51

38

15

6

16

25

District North

South

102

98

51

49

Income Less than 1 LakhI Lakh – 2 Lakhs2 Lakhs – 3 Lakhs3 Lakhs – 5 Lakhs5 Lakhs and above

28

36

49

53

34

14

18

25

26

17

Age Below 3031-40

41-50

51-60

61 and Above

44

53

59

36

8

22

26

30

18

4

Association With LIC

Less than 2 Years3 Years – 5 Years

6 Years – 10 Years

Above 10 Years

34

46

27

93

17

23

13

47

Education SSCHSSCGraduationPost-GraduationProfessional Degree

26

21

78

29

46

13

11

39

14

23

Major Influencer Family MembersAdvertisementsColleagues/FriendsInsurance Advisor

Others

56

8

54

72

10

28

4

27

36

5



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The selected sample for the study consists of almost an equal number of males and females from the North and South districts of Goa. About 75% of the respondents are employed with an education level of Graduation and above. Besides about 43% have an annual income of over ̀ 3 Lakhs and hence are financially literate and are able to invest in a life insurance policy. Almost 50% of the respondents have been associated with LIC for over 10 years hence are loyal customers of LIC. It has been observed that Insurance advisors play a major role in influencing the purchase of policies by the policyholders.

USE OF VARIOUS SERVICES and MULTIPLE CHANNELS OF PREMIUM PAYMENT BY THE POLICYHOLDERS LIC has invested in a huge amount of Technology and has tried to innovate and introduce various avenues to render

quality services to the policyholders. Given below is an overall picture of the use of services and of the multiple channels to pay the premium.

In the above Table No.3, it is observed that though the

website portal of LIC offers various online services around 69% of the respondents have not used a single feature. Those used sparingly by the respondents are the Online purchase

of policy, Premium calculator, SMS enquiry and send an advisor. With regards to the availability of multiple channels for payment of premium the most preferred channels are the authorised banks, the auto debit facility followed by the payment at the branches and at the drop boxes. Thus, it may be said that the policyholders still do not make optimum use of the technological and online facilities made available by LIC. Hence to maintain relations with the policyholders LIC has to depend on its agents and employees to a large extent to service its policyholders and look after their satisfaction with the provision of prompt and quality services. It may also

be said that the respondent policyholders prefer to use the traditional methods of payment of premium even though there exists multiple channels to do the same. Hence it is pertinent to improvise on the traditional methods of payment of premiums.

CORRELATION ANALYSIS:Correlation Analysis is used to determine the level of correlation among the dimensions of SERVPERF taken into consideration for the study. To assess the correlation among the factors of Service Quality, Bi-variate together with Pearson’s Correlation was run and the table below shows that all the factors are positively correlated at 0.01 significance level (2 Tailed).

Table No.3 showing the usage of services and multiple channels of payment of premium

No. %SERVICES Policy Locator

Premium Calculator

SMS Enquiry Send and Advisor

Toll Free Number

Online Purchase

Policy Status

None

3

12

12

12

2

16

4

139

2

6

6

6

1

8

2

69

MODE OF PAYMENT OF PREMIUM

Online

Auto Debit Authorised Banks

Drop Boxes

Cash Payment at Branch

Salary Deduction

Others

9

42

71

28

40

6

5

5

21

35

14

20

3

2



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Table no. 4: Inter-item Correlation Analysis between Service Quality dimensions of SERVPERF

Dimensions Tangibles Reliability Responsiveness Assurance EmpathyTangibles 1

Reliability .530** 1

Responsiveness .503** .648** 1

Assurance .447** .511** .527** 1

Empathy .512** .649** .668** .536** 1


** Correlation is significant at 0.01 level (2 – Tailed)

MEAN PERFORMANCE OF SERVICE QUALITY DIMENSIONS (SERVPERF)

The Mean Performance of the Service Quality dimensions are analysed by finding out the mean values of the variables of each factor and the result SERVPERF (P) score is listed below.

Table No. 5 Performance of Mean Score of Service Quality

Service Quality Dimension SERVPERF (P)Tangibles 3.50

Reliability 3.42

Responsiveness 3.39

Assurance 3.55

Empathy 3.32


In Table No. 5 it is observed that out of the 5 factors, Assurance has the highest score of SERVPERF (3.55), followed by Tangibles (3.50) Reliability (3.42) and Responsiveness (3.39). From the assessment of the mean scores SERVPERF shows the factor Empathy (3.32) dimension needs to be paid attention to by the Insurance Co. (LIC) as it that the minimum or the lowest performance score (P).

IMPACT OF SERVICE QUALITY DIMENSIONS ON CUSTOMER SATISFACTION Table No. 6 below illustrates the influence of Service Quality on Customer Satisfaction in LIC using Regression Analysis.

Dependent Variable Independent Variable Standardized Regression Coefficients

(B-Beta)

t- value P- value

Customer Satisfaction Constant 2.252 0.025

Tangibles 0.196 2.754 0.006

Reliability -0.019 -0.227 0.821

Responsi-veness 0.190 2.236 0.027

Assurance 0.006 0.085 0.932

Empathy 0.343 4.004 0.000

R2 0.372

Adjusted R2 0.356

F Value 23.025 0.000


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In the above table the highest impact of Service Quality dimensions on Customer Satisfaction are Tangibles, Responsiveness and Empathy. A unit increase in the above factors increases Customer Satisfaction in LIC by 0.372 respectively. The change in the above three independent variables explains the change in Customer Satisfaction in LIC to the extent of 37.2% since R2 value is 0.372.

FINDINGS AND CONCLUSIONS:On analysing the effect of Service Quality and its dimensions on Customer Satisfaction in LIC in the Goa division, it is observed that Assurance has a high mean score of performance (SERVPERF) and LIC has to pay more attention to grooming its employees to be more service oriented towards the policyholders as Empathy dimension of Service Quality has the least mean score.

On analysing Service Quality and its dimensions as the antecedents of Customer Satisfaction, it has been observed that Tangibles, Responsiveness and Empathy significantly influence Customer Satisfaction and also partly explain the changes that occur in Customer Satisfaction.

From the study it is observed that LIC does have an effective Customer Relationship Management machinery through its various strategies in place. Yet, it faces a herculean task of being able to reach to its enormous base of policyholders effectively. And this is quite possible if the Corporation and its employees and advisors make optimum use of the available resources and reap benefits in the form of highly qualitative products and services. This will enable LIC to sustain and increase the level of customer satisfaction by retaining the most valued customers.

REFERENCES:

1. Anita, B. (2006). Customer Relationship Management, its role in building Customer Loyalty. (Ph.D), Dharwad: Karnatak University.

2. Anjor Priyanka, P. A. (2014, March ). Service Quality Asessement: A study of Consumer Satisfaction in Indian Insurance sector. IOSR Journal of Business and Management, 16, 34-41.

3. Berndt Adele et al, (2005), Implementing a Customer Relationship Management Programme, Journal of Global Business and technology, Vol. 1, No. 2, 81-89

4. Bhadri Urmi, 2007, Customer Relationship Management – Success Navigator for Insurance, The Journal, Insurance Institute of India, Vol. No. XXXIII, July-Dec, 114-131

5. Biswamohan, D. (2013). Retention of customers: A challenge for 21st century business scenario. Asian Journal of Business and Economics.

6. Echeybi A., Amri L, (2010), CRM adoption by the financial services sector in Tunisia: An Empirical investigation, pp.1-15, medforist.ensias.ma/.../Conference%20Tunisia%20IEBC%202005/.../35.pdf

7. Goswami, Paromita, (2007), Customer satisfaction with service quality in the Life Insurance Industry in India, The Icfian Journal of services marketing, Vol. V, No. 1, 25 – 30.

8. Hossain Jaber Muhammad, I. A. (2013). Evaluating users’ experience of Service Performance using SERVPERF Scale: A case study of some private university libraries in Bangladesh. Annals of Library and Information Studies, 249-259.

9. Lemon N. K. Atherine, W. B. (2002). Dynamic CRM: Incorporating future consideration into the service retention decision. Journal of Marketing, 1-14.

10. Parvatiyar Atul and Sheth Jagdish, (2001). CRM: Emerging practice, process and discipline, Journal of Economic and Social Research Vol. 3(2), 1-34

11. Ruggieri Alessandro, S. C. (2014). Quality and Customer Satisfaction and Custoemr Behaviour: A case study. International Journal of MAnagerial Studies and Research, 22-35.

12. Salazar, Maria T. Et al (2004). CRM in the insurance industry: An attempt to use Survival Analysis in retention and Cross Selling, Frontiers of e-business research, http/www.ebrc.fi/kuvat, 68-77, retrieved on 7th November 2011

13. S.Vijay Anand, M. S. (2012). The Impact of Service Quality on Customer Saisfaction and Loyalty in Indian Banking Sector: An empirical study through SERVPERF. International Journal of Management and Business Research, 151-163.

14. Steve, C. J. (1992). Measuring Service Quality: A Reexamiantion and Extension. Journal of Marketing, 55-68.

15. Virgil Tony, (2008). The Anatomy of a CRM initiative, Ph.D New Zealand: Massey University

16. Venuopal R., (2009). Market Share or Market Leadership, IRDA Journal, August, pp.23-25


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INTRODUCTION:Entrepreneurship plays an important role in the economic growth and development of nation. It is a purposeful activity includes in planning, controlling, promotion and also distribution of various goods and services. The study of entrepreneurship reaches back to the work of Richard Cantillon and Adam Smith in the late 17th and early 18th

centuries, but was largely ignored theoretically until the late 19th and early 20th centuries. An entrepreneur is a difficult task in economic development and a very important part of the socio-economic transformation. It is a risk taking activity and also challenging tasks. The entrepreneurial improvement is not a one day job but also success in this sector never comes easily. It takes time and needs hard work, also systematic planning. ‘Entrepreneur’ refers to a person or group of persons who possesses a certain set of qualities and performs a certain set of activities, which go to make an entrepreneur. An entrepreneur is one who creates something new, undertakes risks, and organizes production and handles

economic uncertainty. The entrepreneur is a crucial factor in the socio-economic changes who creates new opportunities and also co-ordinates various other activities. The role of entrepreneurship in economic development varies from economy to economy depending upon its materials resources, industrial climate and the responsiveness of the political system to the entrepreneurial function, the entrepreneurs contributes more in favorable opportunity conditions than in the economies with relatively a function of co-ordination, upgradation and supervision.

Rural Entrepreneurship can refer to new ventures that happen to be created in rural regions as the result of an intervention, such as a tax subsidy, to attract businesses into an area or via the in-migration of city dwellers that subsequently start businesses. It can also refer to the creation of ventures that result from the unique endowments in rural regions that do not exist in metropolitan areas. Such businesses may involve agriculture, lifestyle, and extraction and knowledge

GLOBALIZATION AND RURAL ENTREPRENEURSHIP IN INDIA

J. P. Bhosale1

Vinod Pate2

G. G. Parkhe3

ABSTRACTRural Entrepreneur succeeding as an entrepreneur and an innovator in today’s world is vastly different from what it was earlier. Beside the existing generation of entrepreneurship also is passing through the transition period. They experience financial resource limitation to promote or to develop a venture and there is also look of research and is also experiencing behavior of entrepreneurial. Aim of most farmers is to earn profits from farming as from any other business, if he determines the objectives. A farm business necessary requires deliberate decision and proper investment, after assessing risk and available resources to maximize profit. There for entrepreneurship is not simply adoption of new activity but it is transformation of a person from traditional of modern India is known as “Home spices” and is in fact the largest producer, consumer and exporter of spices in the world.

To promote entrepreneurs who would take to rural entrepreneurship in utmost earnestness and sincerity is to ensure rural development. Such enterprising people who prefer rural entrepreneurship may or may not themselves belong to rural areas. Entrepreneurship taking to rural entrepreneurship should not only set up enterprises in rural areas but should be also using

rural produce as raw material and employing rural people in their production processes.

KEY WORDS: Rural Entrepreneurship, Regional Growth, Innovation, Social Exchange, Entrepreneurial Development etc.

© SBPIM

1Head, Research Centre in Commerce & Accountancy, Arts, Commerce & Science College, Narayangaon, PuneContact No.: 9860360733 Email Id: [email protected] Professor, Arts, Commerce & Science College, Narayangaon, Pune3Assistant Professor, B. D. Kale Arts Commerce and Science College, Ghodegaon, Pune


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industries. Rural entrepreneurs in developing economies may already be living at a subsistence level when making the decision to start the venture. For a sustainable enterprise, production must take place at an efficient scale, which implies capital accumulation and hence, savings beyond subsistence level consumption. New ventures must be rapidly scalable, which implies a high level of capital and technology intensity relative to the share of labor and have access to fast growth demand markets. More importantly, because high value employment opportunities tend to be limited in rural areas, new ventures must be capable of providing employment to family and extended family members.

Such businesses are unique to rural regions since it is the very nature of the destination that attracts the demand market. However, rural regions suffer from their small size and remote access, difficulties in accessing venture capital and technology and lack of technical and managerial know-how to create high-growth businesses. It is now common practice to establish microenterprise programs in rural regions. Maximizing the contribution of microenterprise to sustainable economic development requires policies that achieve macroeconomic stability, high quality physical, legal and communications infrastructures, technical assistance in education and training, access to new or existing markets, financing alternatives and access to capital, and other measures to lower barriers to business creation.

CONCEPTUAL BACKGROUND:Entrepreneurship as a stabilizing force limits entrepreneurship to reading markets disequilibria, while entrepreneurship defined as owning and operating a business, denies the possibility of entrepreneurial behavior by non-owners, employees and managers who have no equity stake in the business, therefore, the most appropriate definition of entrepreneurship that would fit into the rural development context, argued here, is the broader one, the one which defines entrepreneurship as: “a force that mobilizes other resources to meet unmet market demand”, “the ability to create and build something from practically nothing”, “the process of creating value by pulling together a unique package of resources to exploit an opportunity”. This is why entrepreneurship is considered to be a prime mover in development and why nations, regions and communities that actively promote entrepreneurship development, demonstrate much higher growth rates and consequently higher levels of development than nations, regions and communities whose institutions, politics and culture hinder entrepreneurship. An entrepreneurial economy, whether on the national, regional or community level, differs significantly from a non-entrepreneurial economy in many respects, not only by its economic structure and its economic vigorousness, but also by the social vitality and quality of life which it offers with a consequent attractiveness to people.

“Youths in the rural areas have little options”, this is what they are given to believe. This is the reason that many of them either work at farm or migrate to urban land. The need is to plant other options in the minds of rural youth. Entrepreneurship could be the best option. Of planted and nurtured in the minds of rural women and youth, it could result in revolutionizing the Indian economy. It should be emphasized that the projects undertaken by these entrepreneurs should not be constrained by its location in rural area. It should enjoy all the advantages of the location.

THE OBJECTIVES OF RESEARCH STUDY:1. To study a social exchange view of rural entrepreneurship

in India.

2. To study the challenges before rural entrepreneurship.

3. To give some suggestions for developing entrepreneurship in the rural areas.

RESEARCH METHODOLOGY:With the above objectives keep in mind the instructed Interview Method and Desk Research Method was basically adopted.

The Secondary Data is collected from various reference books related to Rural Entrepreneur, Entrepreneurship Development, Commerce & Management, and Marketing & Finance etc. For said research study secondary data is also collected from the National and International Research Journals which are related to Commerce, Management, Marketing, Finance, and Entrepreneur.

For the present research study the data pertaining to the above objectives was collected and reviewed the literature on the topic concerned. The literature was thus collected by visiting various libraries. Some Government offices were also visited for getting office record and statistical data. The secondary data is also collected from various websites

A SOCIAL EXCHANGE VIEW OF RURAL ENTREPRENEURSHIP IN INDIA:Systems-level theories of entrepreneurial development assume an institutional environment in which entrepreneurship is more or less a norm. For example, national innovation systems perspectives focus on the role of government policy in enabling technological development as the engine for economic growth. An elaboration of this perspective – institutional theory – posits the necessity for private property rights and a culture of risk taking as prerequisites for the emergence of ventures. Also, agglomeration theory argues that information spillovers can be the basis for the emergence of industrial clusters. Although such theoretical perspectives have yet to be fully verified in developing countries, their prescriptions inform policymaking for such


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regions. Where the social identity of entrepreneurs is not institutionalized in rural regions, the pre-startup phase may be more properly viewed as a social exchange phenomenon. According to social exchange theory, an individual contributes to the institutionalization of entrepreneurship in her social environment by engaging in the activities of opportunity search and resource assembly. In doing so, she also learns the norms expected from her role and attains legitimacy as an entrepreneur. Indeed, successful entrepreneurs are constantly engaged in social exchanges with a wide variety of networks to creating social capital through trust, mutual obligation, expectations and norm setting activities.

In rural regions where entrepreneurship is not embedded in the identity of the community, a social identity building process is a requisite step in addressing the structural impediments for entrepreneurship. Hence, policy initiatives must take into consideration the relationships between the macro and micro impediments to the creation of a sustainable rural entrepreneurial ecology.

ENTREPRENEURS WAYS FOR ECONOMIC DEVELOPMENT IN INDIA:Entrepreneur is the key to the creation of new enterprises that energies the economy and the established enterprises that make up the economic structure. Entrepreneurs initiate and sustain the process of economic development in the following ways –

1. Innovation and Entrepreneurship - Mostly important emerging trend in entrepreneurship for the innovated goods and services for using customers. Customers demanded for manufacture production of variety of goods is possible due to new product. Innovation and entrepreneurship are interrelated concept of marketing.

2. Generation of Employment - Entrepreneurs generate

employment both directly and indirectly. Directly, self-employment as an entrepreneur offers the best way for independent and honorable life. Indirectly, by setting up large and small scale business units they offer jobs to millions. Thus, entrepreneurship helps to reduce the unemployment problem in the country.

3. Improvement in Per Capita Income - Entrepreneurs locate

and exploit opportunities. They help to increase Net National Product and Per Capita Income in the country.

4. Expanding Internal Trade - In this emerging trend in entrepreneurship for so many concessions, facilities and amenities are given to motivate expanding internal trade. Also various services like E-mail, Internet, other promotion skills etc. are increased trading activities.

5. Improvement in Living Standards - Entrepreneurs set up

industries which remove scarcity of essential commodities and introduce new products. In the small scale sector help

to improve the standard of life of a common man.

6. Capital Formation - Entrepreneurs mobilize the idle savings of the public through the issues of industrial securities. Rate of capital formation increases which is essential for rapid economic growth. Thus, an entrepreneur is the creator of wealth.

7. Technological Upgradation - The technological upgradation and the change in technology is the important emerging trend in entrepreneurship. Technological upgradation especially those resulting from the role of increasing production and also determined the favorable estimated cost.

8. Value addition to manufactured goods - Entrepreneur

help that is greater value addition to manufactured goods through the entrepreneurship of a range of intangibles provided by growth of profit, such as design features and technical inputs that improvement of product quality.

9. Increase in Employment - The nature of employment and the opportunities of jobs are changing and most important emerging trend in entrepreneurship. The skill of marketing, accounting, salesmanship etc. becomes essential of getting better jobs in entrepreneurship.

CHALLENGES BEFORE ENTREPRENEURSHIP:Entrepreneurship is the new and it’s about continual innovation and creativity. So the challenges before entrepreneurship in India are discuss as follows:

1. The Indian entrepreneurial spirit can only develop and

grow if the Indian economy continues to grow on a sustainable basis. The risks to India’s continued growth are terrorism, political corruption/statement. Non-inclusive growth that focuses only on the urban rich and stalled reforms.

2. India is a complex country with myriad castes, religions and languages. The political parties have evolved to address their needs and give the minority groups a platform and a voice that are heard at the national level. This is a reality, but India has the experience to manage the political processes and differences.

3. Entrepreneurship are not most successful in India, because in this sector facing the rigid institutional setup, political instability, marketing imperfection, failure promotional strategies, continuous flexible consumer demand and also traditional value system.

4. It will be easier for the government to address and repair old infrastructure through public private partnership. India is going through a structural not a cyclical change; hence,

the process is slow and driven by the political process. We need investments in power, roads, ports and bridges.


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5. Many entrepreneurs fail due to several barriers and problems like lack of market knowledge or lack of technical skills.

6. Critics argue that our field is weak because many E-Programs on that one person’s drive and determination. The courage and passion of individuals who have developed courses, programs, centers, etc. that are now beginning to take root in our universities is a real tribute to the emotion that exists within the entrepreneurship field.

7. Raw material is a must for any industry. However the no-availability of raw materials accompanied by their prohibitive cost has weakened the viability of these industries.

8. Entrepreneurship cannot be a field that succumbs to stagnation. It must recognize and apply technologies in the educational setting. In many respects entrepreneurship education may actually transform the educational setting.

9. One of the major problems faced in developing entrepreneurship in rural areas is lack of awareness and knowledge about the importance of developing industries in rural areas.

10. Those entrepreneurship increased pollutions for ecological imbalanced.

SUGGESTIONS:The following measures are suggested for making entrepreneurship development more successful in India –

1. There should be a continuous attempt to inspire, encourage, motivate and proper co-ordination and cooperation among all stakeholders in entrepreneurship concern.

2. An awareness programs should be conducted on a mass scale with the intention of creating awareness among all persons.

3. Need to create awareness for marketing philosophy in terms of production, product, and selling, marketing and societal concept of the marketing.

4. Promote entrepreneurial research and development activities in rural and urban areas.

5. Help in branding and positioning of the product and service with full guidance of marketing mix in business entrepreneurship and other financial and promotional supports of the business organization.

6. Organize training programs to develop professional competencies in managerial, leadership, marketing,

financial, production process, profit planning, maintaining books of accounts and other skills.

7. International, National, Individual exhibitions, Seminars and Conferences should be organized to help entrepreneur to facilitate interaction with other entrepreneurs.

8. One effective way to the entrepreneurial attitude may be establishment and development of B-Schools in rural India and also establishment of colleges and universities in urban India.

9. The entrepreneurial development agencies should select right people, impart right training and entrust viable projects to make entrepreneurship development programs more successful.

10. Those trainees/persons should be selected after proper examination and various tests.

11. Need for strong infrastructure development especially in terms of transport, water, electricity, land, school, hospitals, communication, insurance and information technology for development entrepreneurship in India.

12. Educated unemployed youth should be selected on priority.

13. Need for government support and guidance in terms of financing and subsidy.

14. Persons having entrepreneurial traditional background in the chosen economic activity should be preferred.

15. Need for entrepreneurship development programs with special reference to small family based or generation based business for the scientific and practical trading and development of the entrepreneurs.

16. Government should arrange special training programmes for rural entrepreneurship.

17. Rural entrepreneurs should more competitive and efficient in the local & international market.

18. Government should provide separate financial fund of rural entrepreneurship.

19. Use should invite successful rural entrepreneurs from foreign countries.

20. Government should felicitated top ranker for rural entrepreneurs.

21. Some of rural entrepreneurship development programme are arranged Internatinal, National, Individuals exhibitions, Seminars and Conferences shouls be organized to help rural entrepreneurs.


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CONCLUSION:In India, Entrepreneurs as a role model for new age leadership for various segments of the economy. Entrepreneurship is the base of Indian Economy. Entrepreneurship is one of the most important aspects of our economy. The life of Indian people is very much dependent on the production of this sector. In India, the sector of entrepreneurship is also entered people from different castes and status. The Indian economy is one of the fastest growing economies in the world, so in this sector to provide scope for the growth of entrepreneurs for all the businesses. The early history of entrepreneurship in India reflects from the different culture and tradition of the Indian people. The process of entrepreneurship therefore passed through the potential roots of the social societies. The Indian people are also entered the entrepreneurial role from various different castes and religions.

It is quite clear that rural entrepreneurship cannot be developed without significant training. Therefore, instead of just schemes as the carrot for entrepreneurship development an intensive training needs to be provided to the youth in

rural India. What’s required is to create a devoted team to take up rural entrepreneurship training as per integrated

rural development program. The training for development of rural entrepreneurship has to be different from the entrepreneurship development training in urban areas. This is the reason that government initiated the integrated rural development programs. In integrated rural development programs, apart from providing the training to potential rural entrepreneur, an “industrial area potential survey” is undertaken to estimate the kind of industries that could be set up that region. Industrial area potential survey has all the details about the cost of the project, availability of technology, gestation period and return on investment for the projects that could be set up in that region. The district

Industrial Centre conducts these area potential surveys for usage of potential entrepreneurs.

REFERENCES:1. Gopalaswamy, T. P. 1(1984), “Rural and Agricultural

Marketing in India”. Government of India, Committee on trade policies, New Delhi, Ministry of Commerce.

2. Lalita N. (2005) “Micro Finance and Rural Development”, Gandhi Gram Rural Institute, Gandhi Gram, Dindigal, Tamilnadu.

3. W. Haynes, ‘Principles of Management and Entrepreneurship Development’ New Central Book Agency (P) Ltd., Kolkata, 2009.

4. A Sahay, A Nirjar, ‘Entrepreneurship – Education, Research & Practice’, First Edition, New Delhi, 2006.

5. P. Narayana Reddy, (2010) ‘Entrepreneurship’,

6. Dr. P. C. Pardeshi, (2004) ‘Business Environment and Entrepreneurship’, Nirali Prakashan.

7. Sameeudin, ‘Entrepreneurship Development in India’, Mittal, New Delhi, 1989.

8. Shane S. & Venkataraman S. (2000). The promise of entrepreneurship as a field of research. Academy of Management Review, 25: 217-227.

9. Van Stel A., Carree M. & Thurik R. (2005). The effect of entrepreneurial activity on national economic growth. Small Business Economics, 24: 311-321.

10. Gupta C. B. and N. P. Srinivasan, (1996) ‘Entrepreneurial Development’, Sultan Chand &Sons, New Delhi.

11. Lipi (2009) “Women Empowerment : Globalization and Opportunities” in Empowerment of Rural in India, Kanishka Publishers, New Delhi. Literature, vol.35, September, pp.1320-1346

12. Ram Naresh Thakur (2009) “Rural Women Empowerment in India” in Empowerment of Rural Women in India, Kanishka Publishers, New Delhi.

13. Cantillon, Richard : In Kuby Peter : “Entrepreneurship and Economic Development”.

14. www.entrepreneurship.com 15. www.publishyourarticles.org 16. www.cfowise.com


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PERCEPTION OF CONSUMERS TOWARDS PRIVATE LABEL BRANDS IN FOOD AND GROCERY CATEGORY WITH REFERENCE TO NASHIK CITY.

Sandeep Nandram Dive1

Vijay Ambade2

ABSTRACTThe scope of organized retailing is widening in India with the expanding middle and the upper class consumer and increase in the disposable income. Every retail store international or domestic is utilizing its capacity to establish in these markets. Indian retailer, akin their foreign counterparts, are pushing their store brands for better profit margins, wider product range and greater control over the distribution and availability. Almost every retailer is coming out with its own brands. The efforts seem to be paying off as these store brands also called as private label brands are capturing the market share from the national brands, in the modern trade. With this increasing impact of private labels on the retail business it is also imperative to study the consumer’s behavior towards these private label brands. While many Indian consumers are still unaware of this brand category, some are encashing on its benefit. What exactly are private label brands and what does customers think of these brands is what we intend to study through this paper. Therefore, the purpose of this paper is to study and analyse the consumer perception towards the private label brands in food and grocery category specifically. The study is conducted in Nashik city which is a perfect mix of consumers from all walks of life. Further, it unveils the effect that pricing, accessibility, retail communications, quality and in-store promotion have on shopping behavior associated with private label brands. The study is restricted to the food and grocery categories of the private label brands only.

KEY WORDS: Consumer, Food and Grocery, Perception, Private Label Brands, Retail

© SBPIM

1Assistant Professor, Pune Vidyarthi Griha’s Institute of Management, Nasik Contact No.: 08888887907 Email Id: [email protected], Principal Arunrao Kalode Mahavidyalay, NagpurContact No.: 9579921277 Email Id: [email protected]

INTRODUCTION:On the Global Retail Stage, little has remained the same over the last decade. One of the few similarities with today is that Wal-Mart was ranked the top retailer in the world then and it still holds that distinction. Other than Wal-Mart’s dominance, there’s little about today’s environment that looks like the mid-1990s. The global economy has changed, consumer demand has shifted, and retailers, operating systems today are infused with far more technology than was the case ten years

ago. While the world’s largest developing markets – particularly the BRIC nations of Brazil, Russia, India, and China – still tempt the largest global retailers, and show no signs of slowing down as a source of growth, many smaller, untapped markets are providing new growth opportunities (Global Retail Expansion: Keeps on moving, 2012).

The proliferating organized retail business in India is also inducing some radical changes in the retail sector. The emergence of private label brands is one of them. Private Label Brand is an attempt by the

retailer to further differentiate themselves from the competitors and create a distinctive retail offering to the customers. ‘Private Label Brands’ (PLB) refers to the brands that are owned by the retailers, and sold through a specific chain of stores. These products are typically manufactured by a third party under license. In developed international retail markets private label brands are considered to be the key to success. The concept of PLBs in India is in its embryonic stage, it still promises a humongous potential to vitalize the Indian retail sector. This movement towards PLBs can be closely linked to the industry’s desire to drive profitability from existing assets more heavily, rather than channel investment accelerating the number of new store openings in the short term. These chains are increasingly extending the range of products sold under private label brands from mass consumption basic products (FMCG, Garments & Footwear) to the more sophisticated ones (Consumer electronics, Cosmetics, etc). As of now the retailers have been successful in providing the private label brands as the low-priced high volume alternative to the manufacturer’s brand. PLBs are 5 to 20 percent cheaper than established brands. In FMCG & garments, the profit margins can exceed 60 percent. Experts


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in industry say PLBs, which occupy less than 5 percent of Indian retail market now, are likely to corner 50 percent of the market as the retail markets opens up. There is an

enormous potential for the growth of PLBs in India with the business establishment like TATA, Reliance, ITC, Aditya Birla, and Godrej group making heavy investments in PLBs. At the same time foreign retail majors have also entered India retail sector observing its immense potential. All these players have enormous experience and have tasted success with PLBs in various foreign markets.

Increasing price competition, growing acceptance among consumers, need for differentiation among retailers and lastly the ability to offer higher margins are the key factors contributing to the growth of private labels. Due to the fierce competition in the retail sector, retailers have to increase their efforts to distinguish themselves from their rivals to create loyal consumers. In this context, a key concept is ‘retail branding’, i.e., many retail firms establish their own retail brands also known as private label brands (PLBs). PLBs provide retailers, the ability to offer a significant price advantage to consumers. The introduction of PLBs, may offer the Indian retailers a new lease of life to generate profitable revenue through increased profit margin. However, achieving the goal of generating profitable revenue has become increasingly difficult — challenging even for the most seasoned marketing experts. Fortunately, new methods and technologies are helping deliver marketing messages that focus on the needs of each potential customer, present a clear and consistent message on how a company’s products meet the prospects’ needs, and then help satisfy them. The result is the company’s greater efficiency in offering right product at right time to a right customer in right form and minimum efforts. While the products, the companies sell, have specific features and functions, but there can be various reasons why customers buy those products from them. However these reasons can vary depending on the individual customer. Every individual has a varying degree of conscience which influences each and every action taken by them. These consciences may have been developed due to different associations. Often it is necessary to go further and utilize these consciences and associations to understand the individual behavior in the market.

On the other hand the Indian consumers are known for their unpredictable behavior as compared to their foreign counterparts. This consumer perception and behavior makes the Indian market more vulnerable to risk when it comes to trying out newer concepts. Marketers will have to comprehend this perception and behavior to ensure a positive business output. Therefore it has become essential to study the consumer perception with respect to PLBs and its various aspects which will be helpful to the retailers to formulate appropriate marketing strategies. Many researchers have undertaken the studies to understand

the consumer perception in context to PLBs in developed countries but not many studies have been pursued in Indian

context. The current study will be carried out in the Nasik city of Maharashtra state.

Nasik is the Asia’s largest producer of Onion and Grape yields. It is in forefront of the industrial and educational sector growth in the country. The economic development of the Nasik district is based on agriculture product as well as various other industries like, IT, Retail, Automobile, Pharmaceutical, Manufacturing, Construction, etc. Nasik District is one of the revenue headquarter district of Maharashtra state and one of the rapidly growing industrialized district with many government and private ventures(http://en.wikipedia.org/wiki/Nasik...). Nasik is also called as a ‘Wine Capital’ of India.

Recently, it has been the destination next for the major retailing giants in India. Nasik is a perfect mix of India’s modern and traditional culture and it actually shows the “Unity in Diversity” with people from various walks of life. In short it can be called as a ‘Mini India’. Apparently the consumer class of Nasik well represent the consumer class of the country as a whole. Out of the total Nasik population for 2011 census, 42.53 percent lives in urban regions of district. The district’s GDP is 54212 crore and has the literacy rate of 89.69% (Source: http://www.census2011.co.in/census/district/354-Nasik.html). In total 2,598,167 people lives in urban areas. All this stands for a substantial potential for a retail business to sustain and flourish. In order to satisfy their shopping needs, the shoppers of Nasik district have a varied spectrum of options like convenience store, departmental stores, super markets and hypermarkets both from domestic as well international arena.

OBJECTIVES OF THE PRESENT STUDY:The objectives of the study are as follows;

1. To study and analyse the consumer’s perception towards PLB grocery and food items.

2. To analyse the shopping behavior of consumer towards PLB grocery and food items as compared to national brands.

3. To study influence of price factor on the consumer’s perception consumer towards PLB grocery and food items.

METHODOLOGY ADOPTED FOR THE STUDY:A non-probability, convenience sampling technique was used to administer a consumer survey. Although predefined quotas were not strictly set, samples so selected were the representatives of the supermarket shoppers in the city. A total of 150 questionnaires were deployed using the self administered, mall intercept method at retail stores in the city. A preliminary check was done in the field, to identify and rectify any inconsistencies, omissions or obvious mistakes with the questionnaire. The data so acquired from the self


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administered questionnaires was then captured, screened, coded and analysed.

EMPIRICAL FINDINGSSAMPLE COMPOSITIONThe study includes 160 respondents who were the representatives of the urban mall shopping population of Nashik City. Out of the total respondents 54% were female and 46% were male. Majority of the sample i.e. 65%, were between 21 to 30 years age group. Each consumer was asked to indicate the grocery store where they shop regularly. Responses from the participants were taken, indicating their perception of product category, product awareness, product quality, value consciousness, pricing aspect and their overall attitude associated with PLB and its brand loyalty.

Out of the total respondents, 82% were employed with about 66 % working class and 16% doing business. 20% of the respondents were unemployed or who were not working currently. It can be agreed upon that the sample is slightly inclined towards middle and high income group and it is justifiable because, this is the class which shops at mall and supermarkets and other formats of organized retail formats where availability of PLBs is quite conspicuous.

CONSUMER SHOPPING BEHAVIOURRETAIL FORMATS:The ratio of organized-unorganised retail in India in the year 2005 was 3.6:96.4, which is expected to go up to 15.04:84.94 (with FDI) or 11.54:88.46 (without FDI), towards the end of the year 2015. It is because of this phenomenal growth potential, the retail giants like Wal-Mart, Tesco and Carrefour are ambitious of registering their presence in the Indian market. Secondly, the top 5 Indian business groups in India viz.e TATA, Reliance, Bharti, Aditya Birla and RPG are developing rapidly in their retail business thereby influencing the Indian consumer to shop at these retail formats. Analysis reveals that 56% of consumers prefer to shop in malls, 40% prefer the departmental stores and 4% would like to go the discount stores to satisfy their shopping needs. It can be seen that malls or supermarkets are most preferred as compared to other retail formats and this is the prominent reason for the growth of PLBs.

PURCHASE PATTERN OF GROCERY AND FOOD ITEMS IN A SHOPPING TRIP:It can be revealed from the analysis, how the consumers spend their over different product categories. 33% of the consumers have stated that they purchase more than 4 items of grocery and food category. 31% of the respondents reveal that they purchase more then 5 items; 20% reveal that they purchase more than 3 items; 10% purchases more than 6 items; 2% purchases more than 2 items and 4% purchases more than 7 items.

PURCHASE PATTERN OF PLB GROCERY AND FOOD ITEMS IN A SHOPPING TRIP:Owing to the increasing awareness and value for money aspect of PLB, it is more likely every consumer would like to add PLB in their shopping baskets. The data revealed that 46% of consumers opt for PLBs in grocery & food category; 32% purchases PLBs sometimes; 16% rarely purchase the PLBs and 6% of respondents do not purchase the PLBs. This may be solely because of their loyalty towards standard brand or they are not awareness of the PLBs.

PURCHASE PATTERN OF PLBS IN GROCERY AND FOOD ITEMS:The amount of risk involved in purchasing PLBs food and grocery items affects the preference of the consumers towards PLBs.

Out of 160 respondents; 48 respondents (30%) prefer PLBs of staples; 42 respondents (26%) prefers PLBs of ready to eat/cook items; 22 respondents (14%) prefers PLBs of spices; 19 respondents (12%) prefer PLBs of cooking oil; 8 respondents (5%) prefer PLBs of milk products; and 5 respondents(3%) prefers PLBs of fruits & vegetables.

FACTORS AFFECTING THE PURCHASE OF PLBS IN GROCERY AND FOOD ITEMS:Consumers may exhibit a complex buying behavior during the purchase of PLB food and grocery product categories. The behavior depends on the various factors like the awareness of the brands, reputation of the retailer, past experience, promotional activities, influence from the reference, popularity of the brand, nutritional value, etc. The following chart reveals the importance of different factors affecting the decision making in purchase of PLBs in food and grocery items;


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RESEARCH LIMITATIONS:1. The sample size of 160 respondents is too small in order

to get more accurate and precise information, it should be more.

2. Time limit and pressure were constraints in getting response from the respondents.

3. It is not representation of the total retail consumer base in food and grocery retail sector.

4. The survey is limited to consumer of malls, supermarkets,

discount stores and departmental stores alone, which may not be representation of the whole population.

CONCLUSION:The study emphasizes on the consumer perception towards the PLBs in food and grocery category specifically. The findings of this study enable the retailers to employ more strategic product innovation and brand management discipline of the PLBs. An analysis on consumer’s perception reveals that the perception is changing significantly. It offers insight into the notion that spending less for PLBs doesn’t mean that the consumers are settling for anything less. The retail industry

From fig 1.1 it is clear 21 % of the consumers do purchase PLB due its increasing awareness which is followed by Trust in PLB 14%, Price of PLB 13% and Reputation of the Store 11%. Very few consumers (4%) get influenced by the reference group, while they make the decision of purchasing the PLB.

PRICING – AN IMPORTANT CRITERION FOR PURCHASING PLBS:

Many respondents may not directly disclose the importance that they give to price while purchasing PLBs, which is understandable. Price is one of the most important forms of information available to the consumers when they make purchase decision. The crucial difference between the standard brands and the PLBs is that of the price. Retailers are accentuating more on this aspect of the PLBs rather than promoting the quality, availability and other aspects of the PLBs.

Fig.1.1 Factors affecting the purchase of PLBs in grocery and Food items

Fig.1.2 Pricing- an important criterion for purchasing PLB


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is going through continuous challenges such as higher store rentals and unavailability of appropriate store locations, taxation and other related policies, inefficiencies in supply chain management. With the ongoing economical uncertainty and increased prices of the standard brands, PLBs stands as a viable option. The current environment is favorable for the PLBs to establish itself and get a share in the standard brand’s business.

This study clearly throws light on various aspects that retailers should understand that though the PLBs are beginning to win the battle of the brands through increased market share over the standard brands, there are still reasonable number of consumers who are still opting for the standard brands and the possible reason for this may the inefficiency of the retailers to inform them about the existence of the PLBs. Unawareness of the PLBs is the major reason for consumers not purchasing them. Secondly, the major concern in food and grocery items is its quality. Quality is a requisite in especially food and grocery category. Consumers regard PLBs as most risky on performance measures and the nutrition that PLBs provide are doubted by the consumers. So they go for the safe and trusted option i.e. the standard brands. The stores should concentrate more on quality by using superior raw material available from the best possible sources and convey it to the customers to earn their trust in the PLBs. Price consciousness had a strongest role in predicting the consumer’s behavior towards the PLBs. Food and grocery products are purchased and consumed more frequently than any other product category. So consumer might look to save some money on every purchase they do. In this context PLBs stands as a better option to these price conscious consumers. Retailers can manage to keep the prices of the PLBs below the standard brands by improving the efficiency of the supply chain process. They therefore need to invest more on the logistics and retail ancillaries so as to restrict the fall in margins.

Thus we can conclude that consumers are positively acknowledging the retailer’s effort of offering the PLBs in their stores. Retailers have to be focused in formulating the strategies regarding the PLBs. In this recession period, PLBs can prove to be a life saver to the retailers, only if they put up consistent and sincere efforts. Consumers seeking to save some money in tough times may shift towards the PLBs as a better option to the standard brands. The retailers have sensed the importance of PLBs and therefore they will continue to innovate and pass on the benefits to the consumers.

REFERENCES:1. Global Retail Expansion : Keeps on Moving (2012) :

Global Retail Development Index 2012.

2. James R Bettman and J Morgan Jones (1986) : Formal Model of Consumer Behavior: A conceptual Overview, The Journal of Business (pre-1986); Oct 1972; 45, 4.

3. Michael Nicholson & Sarah Hong Xia (2007), Darwin’s Ghost: Evolutionary Psychology Consumer Behaviour Analysis, School of Economics, Finance and Business Durham University, UK, ISSN: 1749-361 (online) Working Paper.

4. Joseph, Soundararajan, Gupta & Sahu (2008) : Impact of Organized Retailing on the Unorganized Sector (September 2008), ICRIER Working Paper No. 222.

5. Gopal Das (2009), Strategic Positioning of Store Brands, Working Paper, Social Science Research Network (SSRN), @ http://ssrn.com/abstract=1334035.

6. David Fitzpatrick( 2012) : Impact of Organized Retailing on the Unorganized Sector, Reurbanist (Article), August 22, 2012.

7. V V Gopal & A Suryanarayana (2010), Growth Drivers and Challenges for organized Retailing in India, Working Paper, International Conference on Business and Economics Research, Vol 1(2011), Kuala Lumpur, Malaysia.

8. Rajeev Kohli (2011): Organized Retailing In India: Issues And Outlook, (Online)Working Paper Social Science Research Network (SSRN) @ http://ssrn.com/abstract=2049901.

9. http://en.wikipedia.org/wiki/Nasik...

10. http://www.census2011.co.in/census/district/354-Nasik.html


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INTRODUCTION :Globalization of economy has caused a lot of pressure over the executives to enhance rate of return on investment to sharpen the edge of competitiveness. Through various ways of control, cost of production can be reduced substantially of provide a good product to the consumer at competitive rate.

These standard tools of cost reduction may be capital budgeting, working capital management and man-days standard for specific job, materials management, quality control etc. In the context of sugar industry if these tools are not well applied then it ultimately translates results of high cost of production. Management today strives to get the best out of the limited resources available at its disposal, which could be broadly classified as men, material, money and machines. Considering that men and machines are utilized with highest possible limit, there is still sufficient scope for making better use of two resources “MATERIAL” AND “MONEY” which is often referred to working

capital. Productivity of as working capital is usually a neglected area that can bring us positive results using the tool of inventory management of material.

Lastly recommendations are made on the basis of detailed examinations of the working of multipurpose agriculture co-operative credit societies in order to improve the efficiency of the societies for benefit of farmers/members and the society as a whole and giving loan and various services to farmers like veterinary services , rationing facilities, farm implements, seeds , fertilizers, manures, pesticides, services of storage, services of transport , library facilities, information regarding prices of farm products , training facilities etc.

Co-operative sugar factories in Maharashtra have become a catalyst for all-round development in the rural areas. Many of them have made greater contribution to the economic and social development of their areas according to the regional requirements. Some have been especially

innovative in this respect. These factories are instrument at in establishing educational institutions, hospitals, diary and poultry units, co-operative Banks, Consumers stores, Libraries, laboratories, recreation centres etc. In fact, it would be no exaggeration to say that these sugar factories have undertaken virtually all the welfare functions of the state in their area of operation. Without their initiative, these areas would have remained deprived of these facilities for many

ROLE OF CO-OPERATIVE SUGAR FACTORIES IN INDIA

Archana Gunjal

ABSTRACT

Globalization of economy has caused a lot of pressure over the executives to enhance rate of return on investment to sharpen the edge of competitiveness. Through various ways of control, cost of production can be reduced substantially of provide a good product to the consumer at competitive rate.

These standard tools of cost reduction may be capital budgeting, working capital management and man-days standard for specific job, materials management, quality control etc. In the context of sugar industry if these tools are not well applied then it ultimately translates results of high cost of production.

To evaluate the co-operative movement as a way of social transformation, it seems necessary to review the experiences of many different kinds of movements grouped under the name of co-operatives right from the beginning, Indian co-operatives have been said to be dominated by Government bureaucrats and not to be real co-operatives. However, it is also said that India has some few co-operatives ruled by not the bureaucrats but the members themselves and sugar co-operatives in Maharashtra are mentioned as an example of such co-operatives. There are now more than 100 sugar co-operatives in Maharashtra and they are now in an important position in the sugar industry, One of the most important agro-based industries in India, they account for 70% of the total sugar production in Maharashtra and 30% of that in all India.

KEYWORDS : Agriculture Marketing, Global Marketing, Globalization, Cooperative Sugar Industry, Cooperative Sector, Agriculture Sector, Productive Management.

© SBPIM

Research Scholar, Arts, Commerce & Science College, Narayangaon, PuneContact No.: Email Id:


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years. Hence, a study of sugar co-operatives in Maharashtra cannot be merely an extension of sugar industry but it is a micro dimensional socio-economic phenomenon. There are a number of success stories to explain the potentialities of co-operative sugar factories in solving the problems of rural economy.

To evaluate the co-operative movement as a way of social transformation, it seems necessary to review the experiences of many different kinds of movements grouped under the name of co-operatives right from the beginning, Indian co-operatives have been said to be dominated by Government bureaucrats and not to be real co-operatives. However, it is also said that India has some few co-operatives ruled by not only the bureaucrats but also the members themselves and sugar co-operatives in Maharashtra are mentioned as an example of such co-operatives. There are now more than 100 sugar co-operatives in Maharashtra and they are now in an important position in the sugar industry, One of the most important agro-based industries in India, they account for 70% of the total sugar production in Maharashtra and 30% of that in all India.

After the Vighnahar co-operative sugar factory Ltd. the sixth sugar co-operative in the Pune district established in 1981, the first crushing in 1984-85 showed its successful performance, several other sugar co-operatives were founded after 1985-86, mainly under the leadership of grass root leaders. The number of sugar co-operatives kept increasing thereafter and particularly in 1986 and after ‘sugar barnos’ or politicians who lead the establishment and management of sugar co-operatives for their own political and economic interest came to play important role.

Although, until 1990 the locations of sugar co-operatives were concentrated mainly in Pune, Ahmednagar, Kolhapur and several other Western Maharashtra districts, since 1990

‘sugar barons’ came to appear also in “backward” regions like Marathwada and Vidarabha & regional imbalance in co-operative sugar sector became an important issue. Sugar co-operatives in Maharashtra are sometimes called the bright star of Indian co-operative movement, as they said to be run economically viably & ruled democratically by the members.

OBJECTIVE OF THE STUDY1. To study the role of the cooperative sugar factories in the

development of rural area in Pune District.

2. To study the working & functioning of the cooperative sugar factories.

3. To study the progress and performance of cooperative sugar factories.

HYPOTHESES OF THE STUDY :H-1 In recent times, the services rendered by sample

cooperative sugar factories in Pune district are not

sufficient.

H-2 Now a days, Salary and other allowances given by co-operative sugar factories to its staff-members and sugarcane workers are very low.

RESEARCH METHODOLOGY:The present research study uses the most recent available published secondary data. To achieve the above stated

objectives, the secondary data was used. The secondary data was also used from various reference books related to Agriculture Sector, Sugar Industry, Cooperative Sugar Factories, E-Commerce, M-Commerce, Information Technology, Marketing, Banking, Finance, Commerce, Management etc. For the said research study the secondary data is also collected from the various National and International Research Journals which are related to Commerce, Management, Marketing and Agriculture Sector. The Secondary data is also collected

from various websites.

LIMITATIONS OF THE STUDY :The present study has following limitations. The study is related only to Pune District hence generalization of the findings would be limited mostly to this geographical area.1. The period of study is only from 2007-08 to 2011-12 for

generalization of the findings.

2. The sample Cooperative sugar factories are selected from Pune District only.

3. The findings are based on the ability of respondents to the inquiries of the researcher.

4. This may lead a marginal statistical error. However due care is taken to keep degree of error within limits.

5. The said research work is only related to functional problems of cooperative sugar factories and various problems of sugarcane workers.

FINDINGS :1. For the smooth working of the Cooperative Sugar

Factories, the management should be efficient one and should work properly.

2. While getting loans from other financial institutions i.e. while fulfilling the need of finance , the farmers/ members gave the first preference to co-operative banks and co-operative path sanstha and then to money lenders because it is easy to get and good personal contacts with them.

3. It is observed that even and if renovation of loan is not permitted by the cooperative law, the farmers and society is renewed the loan.


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4. The farmers expected good management guidance in finance and good relations from directors.

5. They also expects having social status, having awareness about problem of farmers and supporting relations from political sector. The directors should be well aware about the problems of farmers.

6. The farmers expected from secretary, he should be well aware about farmer’s problems, well educated and trained and good service from secretary and other clerical staff.

7. The farmers measured the efficiency of Sugarcane Producer on the basis of no delay in loan sanctioning dividend for farmers, sufficient working capital, total funds and share capital.

8. The loan given by the Sugarcane Producer are of three types that is short term loan , medium term loan and long term loan.

9. It is observed that the farmers are expected to increase the amount of loan, minimize the rate of interest, guarantee rate should be adopted , loans

should be exempted in case of drought and loan should be sanctioned in time from the district central bank and the government.

10. There are good relations between farmers, secretary and other staff. It helps to solve the difficulties of the farmers of the Sugarcane Producer.

11. It is observed that the secretary and other clerical staff as well as directors of societies guide to farmers while getting loan from the Sugarcane Producer.

RECOMMENDATIONS:The researcher suggested some recommendations and also suggested the future scope for the research study related to cooperative sugar factories in India and also in Maharashtra.

1. Minimize the unnecessary expenditure : Try to minimize the unnecessary expenditure that is expenditure on social obligators, festivals, marriages etc. The farmers may minimize expenditures by doing a “ Group Marriages”

2. For this reason very little recovery is made through the marketing committee. Marketing of produce through marketing society should be made compulsory to farmers, so that the recovery will be more easy and percentage of arrears will be reduced.

a. There should be a provision of proper field staff.

b. There should be effective training programme for staff regarding supervision.

c. There should be co-ordination between staff of district central co-operative bank and the management of the Cooperative Sugar Factories regarding supervision.

d. To prevent the misuse and diversion of agriculture credit, the loan should not be given one time but two installments should be allotted . Only if the earlier one is properly utilized.

3. Training programmes : Well trained secretary should

be appointed for each society and continuous training is to be needed to secretary of the society. The societies should make available various types of training programmes to farmers, secretaries and the directors.

4. The directors must develop business attitude for better progress of the society to face the challenges of globalization . It is a co-operative organization so, they must have social obligations and commitment for better progress of the societies and to face the challenges of globalization directors must develop business attitude. The directors should try to keep the various expenses minimum such as administrative expenses and revenue expenses.

5. The Cooperative Sugar Factories should think for welfare fund, development fund along with building and general fund.

6. The management of Cooperative Sugar Factories should treat the employees in a best way that they should give best service to the society. The satisfied and efficient staff is the assets of the society.

7. The concept co-partnership can be implemented by giving a chance to the representative of staff on the board of directors. This will increase the confidence and good relationship between employees and management.

8. In the era of globalization, the directors , secretary and even farmers should change their mind set. They should have positive attitude.

9. In the age of information and technology . There is a need of not only doing a hard work but also doing smart work by the secretary , clerical staff and the directors of credit societies.

CONCLUSION:Co-operative sugar factories in Maharashtra have become a catalyst for all-round development in the rural areas. Many of them have made greater contribution to the economic and social development of their areas according to the regional requirements. Some have been especially innovative in this respect. These factories are instrument at in establishing educational institutions, hospitals, diary and poultry units,


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co-operative Banks, Consumers stores, Libraries, laboratories, recreation centres etc. In fact, it would be no exaggeration to say that these sugar factories have undertaken virtually all the welfare functions of the state in their area of operation. Without their initiative, these areas would have remained deprived of these facilities for many years. Hence, a study of sugar co-operatives in Maharashtra cannot be merely an extension of sugar industry but it is a micro dimensional socio-economic phenomenon. There are a number of success stories to explain the potentialities of co-operative sugar factories in solving the problems of rural economy.

REFERENCES :1. P. Satish and Gopalkrushna (2002), “The framework

reading viability of banking.” The Journal of Cooperator, Vol-II. Issue-4, pp.22-30.

2. Prakash M. Herekar, (2011), “Challenges before sugar cooperatives in Maharashtra”, ISRJ, Vol-01, Issue-VII, Augest 2011.

3. R. J. Shirke, (1995), “Challenges before cooperative sugar factories in India”, Cooperative Maharashtra.

4. Racine J., (1997), “Peasant Moorings : Village Ties and Mobility Rationales in South India.

5. Sharma and Prasad (1998), “The credit needs at different stages of technological development in agriculture.” The Journal of Cooperator, Vol-II. Issue-3, pp.-12-18.

6. Salve W. N., (1991), “A Socio-economic Study of Seasonal Migrant in Co-operative Sugar Factories with special reference to Kolhapur District”.

7. Sriwastawa and Vinodkumar (2007), “Cost credit in three selected villages in Solapur district.” Indian Journal of Agricultural Economics, pp. 20-27.

8. SudarsanNayak (2007), “Empowerment of the poor through SHG & Micro finance.” National Journal of Cooperative perspective, VaikunthMehata National Institute of cooperative management, pp.46-52.

9. SunitaBhistnene, (2011), “Dynamic lung profile in sugarcane industry workers”, IJBMS, www.ijbms.com,

Vol-03, Issue-03, ISSN : 0976-3556, pp.-01-11.

10. V. Singh, P. N. Singh, R. L. Yadav, (2009), “Increasing the efficiency of Trichodermaharizanum for nutrient uptake and control of red rot in sugarcane”, Journal of Horticultural & Forestry, Vol-02 (4), pp.66-71.

11. Dr. Bhosale J. P., “A study of Primary Cooperative Credit Societies in Pune District”.

12. www.imn.ac.cr/publicaciones/estudies/variab_ratesCR.pdf.

13. w w w. n a c i o n . c o m / I n _ e e / 2 0 0 8 / o c t u b r e / 2 8 /opinion1753073.html.

14. www.pnud.or.cr.com

15. www.scielo.br.com


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INTRODUCTION:The role of financial system in the economy is undeniably important. It cannot be undermined as the financial system is rightly called as nervous system of the economy. Regulation, growth and development of the economy depends solely on the structure and nature of financial system. The failure of the financial system ultimately affects the economy in multiple ways.

Financial system consists of many institutions, instruments and markets. From a pawn shop to a pension fund and from a mortgage dealer to a mutual fund, everything is covered in the gamut of financial system.

Economic development of a country depends to a great extent on its financial structure. The creation of financial assets, wealth and prosperity depends solely on how effectively the financial system is working. Generation of savings and surplus, mobilization of funds and channelization of investment are the true functions of a financial system. Thus to sustain growth, enhance growth process and provide efficient mechanism there is no substitute to an efficient financial system. In other words financial system is the basic important input in the growth process.

The core problem in the present day economy is how to improve the quality and efficiency of financial system. The complex economic environment, growing interaction of diagonally opposite sectors and challenges of uncertainties, innovations as well as divergent economic activities makes it difficult to sustain the pressure.

The aspirations and expectations of different stakeholders also demand the system to work more effectively. However, the challenges of globalization, technology and upheavals do not permit the system to deliver the goods and this creates a challenging situation. The present paper deals with various challenges faced by Indian financial system in the contemporary scenario.

OBJECTIVES OF THE PAPER:The present paper deals with various facets and complexities faced by Indian financial system. How these challenges are faced by the system and how it is responding to critical factors is the principal purpose of the study. Hence the important objectives laid down for this paper are:

1. To understand the importance of financial system in the present day economic scenario.

ROLE OF FINANCIAL SYSTEM IN THE AGE OF ECONOMIC CRISIS

A. B. Adsule

ABSTRACTIn last two decades India has witnessed a significant change in the overall economic scenario. This period of 2 decades can be rightly called as a period of transition and turmoil.

Financial reforms have changed the concept of growth in Indian context. A close knit protected economy has transformed itself into an open market driven system with liberal policies of economic advancement.

The financial system in India has thus brought a sea change in economic development. On one side the liberal economic policies have helped in opening various economic and financial sectors to private players. The idea of state dominance and centralized planning has weathered away due to its limited applicability. Changes at international level, integration of world economy, establishment of new international economic order and growing impact of technology driven financial innovation have changed the structure and role of financial system in India. In what way the financial system has changed and how they are responding to changes? What are the ways and means to stabilize the system amidst the types of reforms, recessions and resurgence is the subject matter of this paper.

The present paper deals with certain key issues related with reforms in financial systems and its implications on Indian economy.

KEY WORDS: Financial system, Economic development, Change agents for growth, Stability and strength, Crisis, Economic crisis and Financial system

© SBPIM

Principal, St. Vincent College of Commerce, Pune 411007Contact No.: 9860360733 Email Id: [email protected]


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1. To identify various facets of financial system influencing Indian economy.

2. To enlist the features of emerging financial system.

4. To examine the critical factors influencing Indian financial system.

WORKING DEFINITIONS 1. Financial system – The term financial system is defined

for the purpose of this paper as follows. “A financial system is a set of interrelated activities / services working together to achieve certain predetermined purpose or goals”.

2. Challenges – The term challenges indicate critical financial issues faced by the financial system.

DISCUSSION

IMPORTANCE OF FINANCIAL SYSTEM IN THE CURRENT ECONOMIC SCENARIO: -1. Indian financial system has undergone a sea change in the

last 2 to 3 decades. Initially it was a mix of both organized and unorganized sectors, wherein a strong and refined structure was missing. The trade volume was very limited and the players were not having systematically defined roles. The principal weaknesses in the pre- liberalized era were: -

a. Unrealistic pegging of interest rates and growing Fiscal deficit

b. Negligible participation of private players and weak participation of banking system.

c. Absolute control of government over insurance sector.

d. Financial products were not having market friendly features.

e. High restrictions on foreign institutions resulted in limited inflow of funds and interaction of multinational players.

f. Institutional and technological structures were outdated when compared with global standards.

The post reform period witnessed many structural system related and functional changes. It brought in many changes which resulted in development of a credible, fast moving and globalised financial market. The features of post reform financial service sector can be stated as follows: -

a. Inflow of non debt capital

b. Development of innovative financial products and services.

d. Liberal entry to Foreign Direct Investment (FDI) and Foreign Institutional Investors (FII) resulted in high inflow of foreign equity, debentures and other types of funds.

d. A stable, strong and upward growing market was thus established.

2. IMPACT ON INDIAN ECONOMY: -The reforms have influenced Indian economy in multiple ways. India made a large number of commitments in the Financial Service Agreements (FSA) in Geneva in 1997. This resulted in basic changes in the economic and financial policies. The implications of these changes can be stated as follows: -

a. Grant of ‘Most Favored Nations’ (MFN) to all foreign banks and financial services and insurance companies.

b. Higher level of participation of foreign investments in various financial services like Factoring, Leasing, Venture Capital, Merchant banking and other Non- Banking Financial Companies (NBFC)

c. Entry to various financial players and permission for cross border supply of a financial service by a financial player.

d. Commercial presence of foreign members in various forms in different financial sectors.

e. Permission to develop new technologies and their application for improvement and up-gradation of financial markets in India.

3. FEATURES OF EMERGING FINANCIAL SYSTEM: -

The new financial system that has emerged as a result of changes in economic and financial sector is vibrant, dynamic and market friendly. It is the end result of a structural upheaval in the conventional financial system. Many tenements of the old system are changed, modified and altered as a result of these structural changes. A few principal reforms in the system as a result of structural changes can be stated as follows: -

a. Establishment of many new agencies as regulators of financial markets such as – SEBI, IRDA, SARFASI (Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Ordinance, 2002) modification of Merchant Bankers Regulation.

b. Encouragement to cash flow management for effective reconstruction and development process. It has encouraged better debt issue management and also new instruments of short term finance like commercial papers are encouraged for circulation. Credit rating and creditworthiness is enhanced resulting in higher liquidity flow and better management of funds for short term


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purposes. It has also encouraged introduction of many new instruments of finance.

4. CRITICAL ANALYSIS OF THE PRESENT STATUS OF THE SYSTEM: -

Inspite of reforms, many new challenges are now posed before Indian financial system. There are different factors both internal and external creating a situation of crisis before the system. The depression and recessionary trends in Europe and America has posed threats to the stability of the market. The credibility of reforms is also challenged by experts from different corners. The pace of initial success is now reduced threatening the future of the reforms. Few important critical challenges before Indian Financial System can be stated as follows: -

a. Decline in GDP and growth rate: - This is a major threat to Indian Financial system. This has indicated the weaknesses of economy and its dependence on western economy. The coupling of Indian economy with Europe and United States (U.S) thus raised serious doubts about its future success.

b. Low growth rate and savings: -The inter- relationship between savings, growth rate and GDP is well known. As the savings rates are turning uncertain and interest

rates are unfriendly to the investors and entrepreneurs, it has become a serious threat to the stability of financial system.

c. Growing uncertainty due to simultaneous occurrence of inflation and depression: - India is witnessing a mix challenge of two economic crisis. There is a growing inflation on one side and the economy is noticing the trends of depression on other side. Thus the stability is suppressed and crushed under the pressure of complex and divergent challenges. The faith in the financial system is slowly doubted.

d. Trade cycles and Balance of Payment (BOP) crisis: - The present scenario of global economy indicates a downturn in the world economy with low growth rate of all economies. This is a serious threat causing troubles and reducing growth prospects. India being an emerging economy cannot sustain to the pressure of low growth rate. Similarly a decline of intrinsic value of Rupee has threatened the Balance of Payment situation. At this juncture when economy is not having absolute internal support from industrial and service sector, Balance of Payment crisis is another threat to the stability of Indian Financial System.

CONCLUSION:Thus in the above paper the author has discussed various

facets of Indian Financial system, challenges before the system and its implications on the structure. The author is of the opinion that there is an urgent need to look after stability plus growth process to overcome the critical situation.


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NTRODUCTION:The importance of statistics in recent years cannot be over emphasized. The development in statistical studies has considerably increased its scope and importance. It is no longer regarded as the science of statecraft or a by-product of state administration. Now it embraces a host of sciences-social, physical and natural. Statistical findings have assumed unprecedented dimensions these days. Statistical thinking has become indispensable for able citizenship. As on date there is no other human walk of life, where statistics cannot be applied.

Origin and Growth of Statistics: The word ‘ Statistics’ and ‘ Statistical’ are all derived from the Latin word Status, means a political state. The theory of statistics as a distinct branch of scientific method is of comparatively recent growth. Research particularly into the mathematical theory of statistics is rapidly proceeding and fresh discoveries are being made all over the world.

MEANING OF STATISTICS:Statistics is concerned with scientific methods for collecting, organising, summarising, resenting and analysing data as well

as deriving valid conclusions and making reasonable decisions on the basis of this analysis. Statistics is concerned with the systematic collection of numerical data and its interpretation. The word ‘statistic’ is used to refer to

1. Numerical facts, such as the number of people living in particular area.

2. The study of ways of collecting, analysing and interpreting the facts.

DEFINITIONS:

Statistics is defined differently by different authors over a period of time. In the olden days statistics was confined to only state affairs but in modern days it embraces almost every sphere of human activity. Therefore a number of old definitions, which was confined to narrow field of enquiry, were replaced by more definitions, which are much more comprehensive and exhaustive. Secondly, statistics has been defined in two different ways –Statistical data and statistical methods. The following are some of the definitions of statistics as numerical data.

STATISTICS: ITS ROLE AND TRENDSP. L. Bisoyi1

Bhushan Pardeshi2

Pavan C. Patil3

ABSTRACT

The word Statistics is as old as the human society itself. It has been used right from the existence of life on earth, though its use was very much limited. In the good old days statistics was regarded as the “Science of State Craft” and was bi-product of the administrative activity of the state. It was first used by Professor Gottfried Achenwall (1719-1772), defining “the political science of the several countries”. Those days the subject matter of statistics was very much limited to the state administration. But now -a-days there is no branches in the society where statistics is not used (Gupta.S.P,2008)

Statistics plays a vital role in every fields of human activity. Statistics has important role in determining the existing position of per capita income, unemployment, population growth rate, housing, schooling medical facilities etc…in a country. Now statistics holds a central position in almost every field like Industry, Commerce, Trade, Physics, Chemistry, Economics, Mathematics, Biology, Botany, Psychology, Astronomy etc…, so application of statistics is very wide. This present study is an attempt to explain the role or the scope of Statistics in present days.

© SBPIM

1Assistant Professor, S.B.Patil Institute of Management ,Nigdi, Pune 411044Contact No.: 8928294775 Email Id: [email protected] Professor, S.B.Patil Institute of Management ,Nigdi, Pune 411044Contact No.: 9970100874 Email Id: [email protected] Professor, S.B.Patil Institute of Management ,Nigdi, Pune 411044Contact No.: 9011522998 Email Id: [email protected]


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1. Statistics are the classified facts representing the conditions of people in a state. In particular they are the facts, which can be stated in numbers or in tables of numbers or in any tabular or classified arrangement.

2. Statistics are measurements, enumerations or estimates of natural phenomenon usually systematically arranged, analysed and presented as to exhibit important interrelationships among them.

DEFINITIONS BY A. L. BOWLEY:Statistics are numerical statement of facts in any department of enquiry placed in relation to each other. - A.L. Bowley Statistics may be called the science of counting in one of the departments due to Bowley, obviously this is an incomplete definition as it takes into account only the aspect of collection and ignores other aspects such as analysis, presentation and interpretation. Bowley gives another definition for statistics, which states ‘ statistics may be rightly called the scheme of averages’ . This definition is also incomplete, as averages play an important role in understanding and comparing data and statistics provide more measures.

DEFINITION BY CROXTON AND COWDEN:Statistics may be defined as the science of collection, presentation analysis and interpretation of numerical data from the logical analysis. It is clear that the definition of statistics by Croxton and Cowden is the most scientific and realistic one. According to this definition there are four stages:

Collection of Data: It is the first step and this is the foundation upon which the entire data set. Careful planning is essential before collecting the data. There are different methods of collection of data such as census, sampling, primary, secondary, etc., and the investigator should make use of correct method.

Presentation of data: The mass data collected should be presented in a suitable, concise form for further analysis. The collected data may be presented in the form of tabular or diagrammatic or graphic form.

Analysis of data: The data presented should be carefully analysed for making inference from the presented data such as measures of central tendencies, dispersion, correlation, regression etc.,

Interpretation of data: The final step is drawing conclusion from the data collected. A valid conclusion must be drawn on the basis of analysis. A high degree of skill and experience is necessary for the interpretation.

DEFINITION BY HORACE SECRIST:Statistics may be defined as the aggregate of facts affected to a marked extent by multiplicity of causes, numerically

expressed, enumerated or estimated according to a reasonable standard of accuracy, collected in a systematic manner, for a predetermined purpose and placed in relation to each other. The above definition seems to be the most comprehensive and exhaustive.

FUNCTIONS OF STATISTICS:There are many functions of statistics. Let us consider the following five important functions.

CONDENSATION:Generally speaking by the word ‘ to condense’ , we mean to reduce or to lessen. Condensation is mainly applied at embracing the understanding of a huge mass of data by providing only few observations. If in a particular class in Chennai School, only marks in an examination are given, no purpose will be served. Instead if we are given the average mark in that particular examination, definitely it serves the better purpose. Similarly the range of marks is also another measure of the data. Thus, Statistical measures help to reduce the complexity of the data and consequently to understand any huge mass of data.

COMPARISON:Classification and tabulation are the two methods that are used to condense the data. They help us to compare data collected from different sources. Grand totals, measures of central tendency measures of dispersion, graphs and diagrams, coefficient of correlation etc provide ample scope for comparison.

If we have one group of data, we can compare within itself. If the rice production (in Tonnes) in Tanjore district is known, then we can compare one region with another region within the district. Or if the rice production (in Tonnes) of two different districts within Tamilnadu is known, then also a comparative study can be made. As statistics is an aggregate of facts and figures, comparison is always possible and in fact comparison helps us to understand the data in a better way.

FORECASTING:By the word forecasting, we mean to predict or to estimate before hand. Given the data of the last ten years connected to rainfall of a particular district in Tamilnadu, it is possible to predict or forecast the rainfall for the near future. In business also forecasting plays a dominant role in connection with production, sales, profits etc. The analysis of time series and regression analysis plays an important role in forecasting.

ESTIMATION:One of the main objectives of statistics is drawn inference about a population from the analysis for the sample drawn from that population. The four major branches of statistical inference are


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1. Estimation theory2. Tests of Hypothesis3. Non Parametric tests4. Sequential analysis

In estimation theory, we estimate the unknown value of the population parameter based on the sample observations. Suppose we are given a sample of heights of hundred students in a school, based upon the heights of these 100 students, it is possible to estimate the average height of all students in that school. In the modern world of computers and information technology, the importance of statistics is very well recogonised by all the disciplines. Statistics has originated as a science of statehood and found applications slowly and steadily in Agriculture, Economics, Commerce, Biology, Medicine, Industry, planning, education and so on. As on date there is no other human walk of life, where statistics cannot be applied.

ROLE/SCOPE OF STATISTICS:

1. Business: Statistics play an important role in business. A successful

businessman must be very quick and accurate in decision making. He knows that what his customers wants, he should therefore, know what to produce and sell and in what quantities. Statistics helps businessman to plan production according to the taste of the costumers, the quality of the products can also be checked more efficiently by using statistical methods. So all the activities of the businessman based on statistical information. He can make correct decision about the location of business, marketing of the products, financial resources etc…

2. In Economics: Statistics play an important role in economics. Economics

largely depends upon statistics. National income accounts are multipurpose indicators for the economists and administrators. Statistical methods are used for preparation of these accounts. In economics research statistical methods are used for collecting and analysis the data and testing hypothesis. The relationship between supply and demands is studies by statistical methods, the imports and exports, the inflation rate, the per capita income are the problems which require good knowledge of statistics.

3. In Mathematics: Statistical plays a central role in almost all natural and

social sciences. The methods of natural sciences are most reliable but conclusions draw from them are only probable, because they are based on incomplete evidence. Statistical helps in describing these measurements more precisely. Statistics is branch of applied mathematics. The large number of statistical

methods like probability averages, dispersions, estimation etc… is used in mathematics and different techniques of pure mathematics like integration, differentiation and algebra are used in statistics.

4. In Banking:

Statistics play an important role in banking. The banks make use of statistics for a number of purposes. The banks work on the principle that all the people who deposit their money with the banks do not withdraw it at the same time. The bank earns profits out of these deposits by lending to others on interest. The bankers use

statistical approaches based on probability to estimate the numbers of depositors and their claims for a certain day.

5. In State Management (Administration): Statistics is essential for a country. Different policies of

the government are based on statistics. Statistical data are now widely used in taking all administrative decisions. Suppose if the government wants to revise the pay scales of employees in view of an increase in the living cost, statistical methods will be used to determine the rise in the cost of living. Preparation of federal and provincial government budgets mainly depends upon statistics because it helps in estimating the expected expenditures and revenue from different sources. So statistics are the eyes of administration of the state.

6. In Accounting and Auditing: Accounting is impossible without exactness. But for

decision making purpose, so much precision is not essential the decision may be taken on the basis of approximation, know as statistics. The correction of the values of current asserts is made on the basis of the purchasing power of money or the current value of it. In auditing sampling techniques are commonly used. An auditor determines the sample size of the book to be audited on the basis of error.

7. In Natural and Social Sciences: Statistics plays a vital role in almost all the natural and

social sciences. Statistical methods are commonly used for analyzing the experiments results, testing their significance in Biology, Physics, Chemistry, Mathematics, Meteorology, Research chambers of commerce, Sociology, Business, Public Administration, Communication and Information Technology etc…

8. In Astronomy: Astronomy is one of the oldest branch of statistical

study, it deals with the measurement of distance, sizes, masses and densities of heavenly bodies by means of observations. During these measurements errors are unavoidable so most probable measurements are


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founded by using statistical methods. Example: This distance of moon from the earth is measured. Since old days the astronomers have been statistical methods like method of least squares for finding the movements of stars.

9. In Research Activities : One cannot think of undertaking any research activities

without using statistics. Primarily, statistical techniques are used for collecting information in any research. Besides, statistical methods are used for analysis and interpretation of research findings. Thus there is hardly any branch of study where statistics is not being used. It is used in all spheres of human activities.

10. In Planning: Planning is necessary for efficient workmanship and

in formulating future policies. Statistics provides the valued interpretation of facts and figures relevant to planning. Planning depends on forecasting the future. Statistics provides the necessary tools of estimation and forecasting. So statistics is indispensable in planning.

LIMITATIONS: Statistics with all its wide application in every sphere of human activity has its own limitations. Some of them are given below.

1. Statistics is not suitable to the study of qualitative phenomenon: Since statistics is basically a science and deals with a set of numerical data, it is applicable to the study of only these subjects of enquiry, which can be expressed in terms of quantitative measurements. As a matter of fact, qualitative phenomenon like honesty, poverty, beauty, intelligence etc, cannot be expressed numerically and any statistical analysis cannot be directly applied on these qualitative phenomenon. Nevertheless, statistical techniques may be applied indirectly by first reducing the qualitative expressions to accurate quantitative terms. For example, the intelligence of a group of students can be studied on the basis of their marks in a particular examination.

2. Statistics does not study individuals: Statistics does not give any specific importance to the individual items, in fact it deals with an aggregate of objects. Individual items, when they are taken individually do not constitute any statistical data and do not serve any purpose for any statistical enquiry.

3. Statistical laws are not exact: It is well known that mathematical and physical sciences are exact. But statistical laws are not exact and statistical laws are only approximations. Statistical conclusions are not universally true. They are true only on an average.

4. Statistics table may be misused: Statistics must be used only by experts; otherwise, statistical methods are the most dangerous tools on the hands of the inexpert. The use of statistical tools by the inexperienced and untraced persons might lead to wrong conclusions. Statistics can be easily

Misused by quoting wrong figures of data. As King says aptly ‘statistics are like clay of which one can make a God or Devil as one pleases’.

5 Statistics is only, one of the methods of studying a problem: Statistical method do not provide complete solution of the problems because problems are to be studied taking the background of the countries culture, philosophy or religion into consideration. Thus the statistical study should be supplemented by other evidences.

CONCLUSION:In conclusion it can be concluded that, statistics has shifted from “science of state craft” to universal science. There is no branch in the modern society, where we can’t use statistics.

REFERENCES1. Cobb, George (1992), “Teaching Statistics,” in Heeding

the Call for Change: Suggestions for Curricular Action, Lynn A. Steen, ed., The Mathematical Association of America

2. Gupta S. P (2009),”Statistical Methods”, Sultan Publication, New Delhi.

3. S. C. Gupta (2009), “Statistical Methods” Himalaya Publication.


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TQM: TOTAL QUALITY MANAGEMENT, CONTEXT, PRACTICES AND FRAMEWORKS

Satish Shrikrishna Chinchorkar 1

Shyamkant Shrigiriwar 2

ABSTRACTTotal Quality Management (TQM) sounds very familiar terminology, however when it comes to reality people baffle. This paper aims to narrate the TQM from various business contexts; the best practices being followed with introduction of important frameworks to adopt for obtain the utmost results.

TQM is basically an integral management approach which is based on a set of social and technical factors that must be put into practice through a reference framework. The best practices selected and the framework chosen needs to be relevant and suitable to the business vertical to achieve the desired results from TQM.

KEYWORDS: Framework, EFQM, ISO, TQM

©SBPIM

1Freelance Consultant and Research Scholar, S.B.Patil Institute of Management, Nigdi, Pune 411044.Contact No.: 9822406187 Email Id: [email protected], Vivekanand Institute of Technology, Balaji Nagar, Pune 411037.Contact No.: 9373313794 Email Id:

BACKGROUNDMain concerns of manufacturer and customer may differ; rather aims are contradicting such as customer may expect quality, price and availability of service, whereas manufacturer will target at quality, cost and productivity. The common concern of both is ‘quality’. Hence it is obvious to have this concern (quality) prioritized on agenda.

There is a common misconception that quality brings down the productivity and increases costs and investments. However Dr. Deming proven that the productivity goes up and costs goes down as quality goes up. This fact is well known, but only to select few.

The perception and vocabulary of quality are elusive. Different people interpret the quality differently. Few can define quality in measurable terms that can be proved operational. But then question remains what is precise meaning of quality?

It is totality of characteristics of an entity that bear on its ability to satisfy stated and implied needs (ISO 8402: 1994) and TQM is the way of managing organization to achieve excellence.

Hence formally TQM is “A management philosophy embracing all activities through which the needs and expectations of the CUSTOMER and COMMUNITY, and the objectives of the organization are satisfied in the most efficient and cost

effective manner by maximising the potential of all employees in a continuing drive for improvement.” (BS4778:1991).

BRIEF HISTORY, THEORY AND CONCEPTSThere are lessons to be learned from the experiences of the successful companies. The common factors are: Focusing on customer needs, upper management in charge of quality, training the entire hierarchy to manage for quality, and employee involvement – (Joseph Juran, World War II and the Quality Movement).

In 1200-1799, Guilds of Medieval Europe were responsible for developing strict rules for product and service quality, inspection committees enforced the rules by identifying flawless goods with a special mark and a second quality mark came from the craftsmen themselves. The Primary Focus was ‘Product Inspection’.

In 1800-1899, US broke from European tradition and adopted a new management approach by Taylor, to increase productivity without increasing the number of skilled craftsmen.

In 1900-1940, Shewhart recognized that industrial processes yield data and inclusion of processes in quality practices is done. Primary Focus was Product Inspection and SQC.

In 1941-1945, after World War II had started, US enacted legislation to help gear the civilian economy to military


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This model is generally adopted where mission critical business is there. Performance standards are set as zero defects and for every gap between requirement and delivery (non-conformance) the price is being calculated as PON (Price of Non-Conformance). Juran’s quality trilogy model

The quality Guru Juran design and developed a simple model similar to project management. This includes three major factors need to be addressed as

1. Quality Planning: Methodology adopted, budget and schedule planning

2. Quality Control: Tracking and monitoring system with quality measurement

3. Quality Improvement: Analysis with preventive and corrective actions Juran’s Cost of Quality (CoQ) model

The same quality Guru Juran design and developed another

cost based model. In which there are two types of quality costs:

1. Unavoidable Costs: preventing defects (inspection, sampling, sorting, QC)

2. Avoidable Costs: defects and product failures (scrapped materials, labour for re-work, complaint processing, losses from unhappy customers

On a single parameter (i.e. cost) the quality is being evaluated to take the decision whether is it worth to adopt TQM (which incurs cost) or organization can sustain the losses due to lack of quality.

PDCA (Plan, Do, Check, Act) model

Dr. Deming, one of the quality Guru caused revolutionary changes in the industry had contributed this popular model to the world.

Sr.No. Absolute Meaning

1 What is Quality? Conformance to requirements2 What system is needed to cause quality? System of quality is prevention3 What performance standard should be used? Performance Standard: Zero Defects4 What measurement system is required? Price of non-conformance (PON)

TABLE-1 (CROSBY’SFOUR ABSOLUTE)

production and contracts were awarded to manufacturers who submitted the lowest bid. Products were inspected upon delivery.

There was birth of Total Quality in 1946, after World War II, major Japanese manufacturers converted from producing military goods for internal use to civilian goods for trade. World realized the need of consolidated, comprehensive framework TQM.

To understand TQM better, quality need to be viewed from seven facets as follows1. Performance: Intends of use2. Features: Special Characteristics3. Reliability: Likelihood of breakdown, failure4. Conformance: Fitness of use5. Serviceability: Speed and Cost of Repair6. Durability: Uptime7. Aesthetics: Look, feel, taste, smell and sound

PROCESS IMPROVEMENT METHODSAs stated earlier TQM is the way of managing organization to achieve excellence through quality. Following are eight TQM principles critical towards managing organization to achieve excellence

1. Customer defines quality2. Top management must lead effort3. View quality as a strategic issue4. Quality is everyone’s responsibility5. Focus on continuous quality improvement6. Employees/Management must cooperate to establish

quality 7. Use of Statistical quality control methods8. Training and education are fundamental to all the above

APPROACHING TQM: VARIOUS MODELSAs the name Total Quality Management indicates that it is a ‘Total’ means consolidated or integrated approach towards quality. There are enormous business advantages of adopting the consolidated or ‘total’ approach against applying the piecemeal solutions. Various proven models are existing which consist of package of best practices to obtain total quality. Few important models are as follows:

CROSBY’S FOUR ABSOLUTE MODEL:This is the most simplest model designed and developed by one of the quality Guru, Crosby; easy to understand, focusing towards only four ‘absolutes’ to manage total quality


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PDCA is most popular model adopted as basis by most of quality framework. This model generally adopted by organizations believes on the basic philosophy behind this model as (continuous improvement) defined earlier.

Gap Model of Quality by (Parasuraman, Zeithman and Berry. 1985)

Human beings are an intelligent species and when get involved in any group activity such as production, generally perception gaps are bound to be there. Parasuraman, Zeithman and Berry have developed the model based on the gaps recently (1985). As shown in the figure the first gap is customer’s own specification of quality against the organizations specification of quality and so on.

Plan-Do-Check-Act is typically four milestones of continuous improvement in quality journey.

These four activities are continuous in nature with philosophy that ‘there is always room for improvement’ and ‘quality is a journey and not the destination’.

Quality related tasks are being systematically planned for these four classes (activities) for each cycle to gain the business benefits.

FIGURE-2 (GAP MODEL)

FIGURE-1 (PDCA)

This model is on philosophy that ‘any deviation in requirement is a defect’ (Crosby). Hence the gaps of perception of requirements need to be bridge to achieve the quality.

MALCOLM BALDRIGE NATIONAL QUALITY AWARDThis MBNQA model is basically designed for the American

companies, the gist of which is adopted in other models such as JRD Tata Quality Award in India.

Indian counter-part of any American company need to understand and adopt the best practices classified in seven categories as shown. Award is popular and referred by many reputed organizations.


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EFQM EXCELLENCE MODELThis European Framework of Quality Model (as name indicated) is for European companies. In this framework the ‘enablers’ and ‘results’ are being classified in the types such as

‘people’, ‘policy’ and ‘processes’. Considering that innovation and learning is being continuous and feedbacks from results are given to the enablers.

FIGURE- 3 (MBNQA)

FIGURE-4 (EFQM)

GENERAL MOTORS QUALITY NETWORK PROCESS MODELGeneral Motor designed and developed their own quality framework, suits to their business. Operational path of

customer requirement to customer satisfaction is measured and tracked for improvement. Operational activities are being classified into Material, People, Methods, Equipments, Environment and the Team-work which is essential to any organization.


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SIX SIGMA QUALITY: DMAIC CYCLEQuality model of six-sigma classified the activities in five classes for managing them better. These are

1. Define: Customer, their requirements with priorities

2. Measure: Processes to convert input into output with its performances

3. Analyze: The root causes of defects (deviation from requirement)

4. Improve: Corrective and Preventive actions to remove the causes of defects

5. Control: Sustain the improvement to maintain the quality

FIGURE-5 (DMAIC)

FIGURE-6 (DMAIC)

THE SHINGO SYSTEM: FAIL-SAFE DESIGNThis models based on Shingo’s argument:

• SQC (Statistical Quality Control) methods do not prevent defects

• Defects arise when people make errors

Defects can be prevented by providing workers with feedback on errors. Case by case defects need to be analyzed and feedback given to worker for corrective and preventive actions. When special purpose operations are involved this model is proven effective.

POKA-YOKE MODELPoka yoke is a Japanese word which means Mistake Proofing.

The aim is to engineer production systems to eliminate the possibility of error rather than relying on quality inspections. Your ultimate inspector is the customer.

Checklists and appropriate tools and techniques are being used to avoid / eliminate the mistakes

1. Checklists2. Special tooling that

• Prevents workers from making errors • Gives rapid feedback of abnormalities to worker in time

to correct them ISO 9000

ISO 9000

TQM has a close correspondence with the ISO 9000 series


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standards, the set of internationally recognized standards of good management practice which ensure that the organization consistently provides products or services that meet the customer’s quality requirements. They define the requirements of a quality management system that can be applied in any organization. A company may invite its customers to audit its quality system so that they can be confident the company is able to meet their quality requirements. It may also get an independent quality system certification body to obtain an ISO 9000 certification of conformity. This certificate is a good reference in dealing with potential clients, and reduces the need for customers to conduct their own audits. TQM can assist companies in a very practical way to meet the requirements of ISO certification.

Following are highlights of this popular model.• Series of standards agreed upon by the International

Organization for Standardization (ISO)• Adopted in 1987• More than 100 countries• A prerequisite for global competition• ISO 9000 directs you to “document what you do and then

do as you documented.”

Typically three parties are being involved for getting formally certified using this model

1. First party: A firm audits itself against ISO 9000 standards

2. Second party: A customer audits its supplier

3. Third party: A “qualified” national or international standards or certifying agency serves as auditor

ZAIRE MODEL

This model, as depicted in the picture, consists of ‘top’, ‘pillars’ and ‘foundation’ related activities.

The Quality Planning, Leadership and Vision are expected from top.

The operational details such as SPC (Statistical Process Control) and SQC (Statistical Process Control), Supply Chain, Control System, Processes and work-place design are typically pillars.

Continuous Improvement, Value Addition and Employee Involvement are foundation.

FIGURE-7 (ZAIRE)

AUSTRALIAN QUALITY AWARD FRAMEWORKThere is lot of similarity between the Australian Quality Award Framework and MBNQA framework. The activities are being

classified and integrated.

This model is Australian version of quality model.


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THE TQMEX MODEL (TOTAL QUALITY MANAGEMENT FOR EXCELLENCE)

The Total Quality Management for Excellence

(TQMEX) is really a consolidated framework

consistof 5S, BPR, QCC, ISO, TPM and TQM.

FIGURE-8 (AUSTRALIAN)

SUMMARY

The challenge that companies face as the 21st Century gets underway, is to succeed in a global economy where competition is fierce and where customers are becoming increasingly demanding of quality. Companies must take a global perspective. They must supply products and services that are competitive in both price and quality, and in international as well as in domestic markets. To maintain a competitive edge in such an environment they must continually improve the quality of what they offer.

Total Quality Management (TQM) has proven itself as a way of managing and continuously improving quality. Its successful

implementation in Japanese firms has been a major factor not only in their success, but also in establishing the levels

of quality that customers now expect in whatever they purchase.

A great deal has been written about TQM, and more scholarly analyses have identified four fundamental orientations of TQM: systems, customer, learning and change. From this perspective, TQM is seen as a dynamic economic effort by firms to adapt and survive in dynamic environments. Understanding the key success factors of business and accordingly selection of appropriate and relevant approach / approaches is the skill.

Figure-9 (TQMEX)


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TQM, as evidenced by the success of Japanese companies, who regard it as essential to their survival, does provide any company that commits itself fully to its implementation, with the means to meet this challenge.

REFERENCES

1. Calvo-Mora, Arturo; Picón, Araceli; Ruiz, Carolina; Cauzo, Lourdes (December 20, 2013). The relationships between soft-hard TQM factors and key business results, International Journal of Operations and Production Management. Emerald Group Publishing Limited, Volume 34, Number 1, 2013 , pp. 115-143(29)

2. K. Shridhara Bhat; Total Quality Management Text and Cases; Himalaya Publishing House, 2007

3. N. Logothetis; Managing for total quality from Deming to Taguchi and SPC; Prentice Hall of India 2002; ISBN-81-203-1137X

4. Dale H Besterfield, Carol Besterfield-Michna, Glen H Besterfield, Mary B Sacre, Hemant Urdhwareshe, Resma Urdhwareshe; Pearson, 2011, ISBN-978-81-317-3227-4

5. P L Jain; Quality Control and Total Quality Management; Tata McGraw Hill Publishing Co. Ltd. ISBN-0-07-040214-0

6. John Bank; The Essence of TQM; Prentice Hall of India; ISBN-81-203-0903-0

7. S M Sundara Raju; Total Quality Management, A Primer; Tata McGraw Hill Publishing Co. Ltd. ISBN-0-07-462452-0

8. Parasuraman, Zeithman and Berry. 1985


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A COMPARATIVE STUDY OF DEVELOPING MANAGERIAL SKILLS THROUGH MANAGEMENT EDUCATION AMONG MANAGEMENT GRADUATES AT SELECTED INSTITUTES IN PUNE AND MUMBAI

Archana Salve1

Kirti Dharwadkar2

INTRODUCTIONGlobalization of Industrial sector is changing the relationship between management education and industrial sector .Top business schools in India have everything going for them in terms of large infrastructure, fair number of faculty, good placements and industry support. But for rest of the industry running business schools is an adventure. Taking students of weaker background and polishing them into industry- savvy MBAs is a challenge.

For these MBA institutes their still remains a gap between what industries expect and what is taught in academic institutes .This research study is aimed at knowing the actual scenario of management education today as far as quality of education and managerial skills development in students is concerned.

RELEVANCE OF THE TOPIC:Research and development forms the backbone of any organization. Especially in corporate sector each and every company relies on R and D department .For continues improvement in quality of management education there is a strong need for research in this field because it is directly related to the future of the corporate world .High quality students passing from management institutes are required by the industries .So study of present scenario of Management education in our state can help a lot for further improvement in management education system .

OBJECTIVES OF THE STUDY:In this era of globalization, competition and industrialization the students in management streams face new challenges and need good quality education to become successful managers entrepreneurs. Also there is major impact of recession on the various industrial sectors in India.

For these reasons Management Institutes in India need to upgrade and stand the test of time for present scenario .The main purpose of this research is to find out what is present status of Management education.

1. To study overall impact of Management Education in developing Managerial skills in Management students.

2. To study the learning outcomes in students passing from Management Institutes in Pune and Mumbai region.

3. To study the applicability of today’s Management curriculum in grooming students’ ability of decision making, analytical skill and crisis handling skill.

4. To study Industry-Institute Participation in enhancing Leadership, Motivational and communication skills.

5. To study the status of Autonomous and University affiliated institutes curriculum and its modus of operandi in enhancing managerial Skills

HYPOTHESES OF THE STUDY

To know the quantum or degree critical skill development in different types of Management Institutes involved in the Research following three Hypotheses are formulated.

Ho1: The impact of Management education in the development of managerial skills among students in management institutes is not satisfactory.

Ha1.1: The impact of Management education in the development of managerial skills among students of Autonomous institutes is satisfactory.

Ha1.2: The impact of Management education in the development of managerial skills among students of University affiliated institutes is satisfactory.

© SBPIM

Research Scholar,

Contact No.: Email Id: Dean Academics, S.B.Patil Institute of Management, Nigdi, Pune 411044.Contact No.: 9881522211 Email Id: [email protected]


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Ho2: Management education does not help in improving learning outcomes among students.

Ha2.1: Management education does help in improving learning outcomes among students of Autonomous institutes.

Ha2.2: Management education does help in improving learning outcomes among students of University affiliated institutes.

Ho3 : Management education does not help in overall development of management students .

Ha3.1: Management education helps in overall development of management students of Autonomous institutes .

Ha3.2 : Management education helps in overall development of management students of University affiliated institutes .

Ho4 : Todays Management curriculum is not helpful in developing decision making , crisis management and analytical skills in management graduates.

Ha4.1 : Todays Management curriculum is helpful in developing decision , crisis management and analytical skills in management graduates of Autonomous institutes.

Ha4.2: Todays Management curriculum is helpful in developing decision , crisis management and analytical skills in management graduates of University affiliated institutes .

Ho5: There is no significant difference in developing managerial skills by Autonomous institutes curriculum and University affiliated institutes Curriculum.

Ha5.1: Autonomous Institutes’ curriculum is more helpful in developing Managerial Skills than University affiliated Institutes curriculum.

Ha5.2 : University affiliated institutes curriculum is more helpful in developing Managerial Skills than Autonomous institutes curriculum.

RESEARCH METHODOLOGYTYPE OF RESEARCH:This is a Quantitative type of research. Quantitative research is based on précised measurements using structured and validated data collection instrument . It is used to test hypotheses, look at cause and effect and make predictions. In this study selected Management institutes from Pune and Mumbai regions are involved .specific number of students and faculty members are respondents for the study .In Quantitative research generalizable findings can be applied to other populations .

SAMPLE DESIGN: -The study is carried out by considering Stratified Random Sampling method .This type of sampling method works well for population with variety of attributes . Selected institutes from Pune & Mumbai region both Autonomous as well as University affiliated institutes have been involved in the research .

UNIVERSE:Total number of Autonomous institutes in Pune is 29 and

total number of University affiliated institutes in Pune is 178 . Management institutes in Mumbai region - Total number of Autonomous institutes in Mumbai is 23 and total number of University affiliated institutes in Mumbai region is 79. Total

Population of research study is 30000.

SAMPLE SIZE:In this research study 20 institutes from Pune region and 18 institutes from Mumbai region have been involved in this study .Total number of respondents from Pune region including Autonomous institutes in Pune and University affiliated institutes in Pune is 660 and Total number of respondents from Mumbai region including Autonomous institutes in Mumbai and University affiliated institutes in Mumbai is 659.

Table No Sample CompositionSr .no Respondents Students Faculty Total

1 Autonomous institutes of Pune 198 128 326

2 University affiliated institutes of Pune 204 130 334

3 Autonomous institutes of Mumbai 197 130 327

4 University affiliated institutes of Mumbai 205 127 332

Total 804 515 1319

Total number of respondents in Mumbai and Pune regions is 1319.


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SOURCES OF DATA :PRIMARY DATAPrimary Data is collected by questionnaire method, using closed ended & descriptive type of questions. Students of first & second year MBA & faculty members are the respondents.

SECONDARY DATA COLLECTION:Secondary data is collected from management’s journals, newspapers, Books, Magazines, internet, B school survey, websites etc. Also previous surveys on this topic are taken into consideration.

DESIGNS OF QUESTIONNAIRES:Researcher has used two different questionnaires one for students & other for faculty members . The scaling is done using Likert scale .

QUESTIONNAIRE FOR STUDENT RESPONDENTS:This is a structured questionnaire with closed ended question to avoid the variations in response of the respondents. All questions are given sufficient options to record the replies of the respondents. This style of questionnaires is adopted to standardize the responses. Total 23 questions having multiple sub questions are designed in order to get thorough information regarding Students development in MBA institutes. All the questions asked in this questionnaire were formulated based on intensive and extensive literature review ,experts opinions and pilot survey .

QUESTIONNAIRE FOR FACULTY MEMBERS:-This is also a structured questionnaire with close ended questions to avoid the variations in responses of the respondents. All questions are given sufficient options to record the replies of respondents. This style of questionnaire is adopted to standardize the response. Total 28 questions having multiple sub questions are designed to get through information regarding quality of education in respective management institutes. All the questions asked in this questionnaire were formulated based on intensive and extensive literature review ,experts opinions and pilot survey.

DATA ANALYSIS :-After collection of primary & secondary data processing of data was done by following operations.

Data analysis has been done in two parts.

A) Data Analysis for student respondents.

B) Data analysis for faculty member respondents.

1. Editing - To facilitate data entry , coding and tabulation of data , it has been scrutinized in detail.

2. Coding - It is a process of assigning numerals & symbols to answers so that responses can be put into limited number of categories. Coding is done for efficient analysis and through it the several replies reduced to small number of classes.

3. Tabulation - When mass data collected assembled, it became necessary for the researcher to arrange the same in some kind of concise and logical order in the form of tabulation i.e the data is orderly arranged in columns and rows .Researcher summarized raw data and displayed in compact form for data analysis .

TOOLS USED FOR DATA ANALYSIS :

One way ANOVA test & Friedman Chi-square test are used to

know the difference in various parameters across four groups of institutes (Autonomous institutes of Pune, University affiliated institutes of Pune, Autonomous institutes of Mumbai & University affiliated institutes of Mumbai).

One way ANOVA test is a parametric test used to determine whether there are any significant difference between three or more independent groups.

Friedman chi- square test is a nonparametric test . it is used to detect differences in treatments across multiple test attempts .This procedure involves ranking each row or block together ,then considering the values of ranks by columns .

Multiple response analysis and cluster bar chart is also used

for presentation of data analysis.

Use of computer software in Data Analysis

1) IBM SPSS 20 updated version (Statistical package for social science) is used for data analysis.

2) Microsoft office excel is used for data entry.

Limitations of research :-

The research is carried out in Mumbai & Pune regions ,hence the various parameters considered during research may or may not represent at different places other than these two regions. .

1. All MBA Institutes in Pune and Mumbai region cannot be covered in this study .

2. Complete data collection by questionnaire method is difficult.

3. Only selected Institutes will represent in this study.


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Problem faced during research

1) Difficulty in approaching respondents as data collection was done during working hours of colleges.

2) Respondents were reluctant to share some information asked in the questionnaires.

1. HYPOTHESES OF TESTING :-

Ho1: The impact of Management education in the development of managerial skills among students in management institutes is not satisfactory.

Ha1.1: The impact of Management education in the development of managerial skills among students of Autonomous institutes is satisfactory.

Ha1.2: The impact of Management education in the development of managerial skills among students of University affiliated institutes is satisfactory.

COMMUNICATIONS SKILLS:Test : One way AnovaPurpose : To study if university affiliated institutes in Pune, university affiliated institutes in Mumbai, Autonomous institutes in Pune and Autonomous institutes in Mumbai differ over development of communication skills of the students.

Ho: There is no difference in improvement of communication skills in students’ across four group of institutes. (Autonomous institutes in Pune, University affiliated institutes in Pune, Autonomous institutes in Mumbai, University affiliated institutes in Mumbai)

H1: There is a significant difference in improvement of communication skills in students’ across four groups of institutes. (Autonomous institutes in Pune, University affiliated institutes in Pune, Autonomous institutes in Mumbai, University affiliated institutes in Mumbai)

Statistical test Statistical results ConclusionOne way – ANOVA Welch ( 3, 388)= 184 P =0.00 Null hypotheses is rejected

Statistical test Statistical results ConclusionOne way – ANOVA Welch ( 3, 325 )= 117 .4 P = 0.00 Null hypotheses is rejected

CONCLUSION Thus it can be concluded that, Communication skills development is better in student’s Autonomous institutes in Pune and Mumbai and University affiliated institutes in Mumbai than University affiliated institutes in Pune.

MOTIVATION SKILLS :Test : One way ANOVA Purpose : To study if university affiliated institutes in Pune, university affiliated institutes in Mumbai, Autonomous institutes in Pune and Autonomous institutes in Mumbai

differ over development of Motivation skills of the students.Ho: There is no difference in improvement of Motivation skills across four groups of institutes (Autonomous institutes in Pune, University affiliated institutes in Pune, Autonomous institutes in Mumbai, University affiliated institutes in Mumbai) .

H1: There is a significant difference in improvement of Motivation skills across four group of institutes (Autonomous institutes in Pune, University affiliated institutes in Pune, Autonomous institutes in Mumbai, University affiliated institutes in Mumbai).

CONCLUSION Thus it can be concluded that Motivational skills development is better in Autonomous institutes in Mumbai and Pune than University affiliated institutes in Mumbai and Pune.

ANALYTICAL AND LOGICAL SKILLS :Test :One Way –ANOVA

Purpose :To study if university affiliated institutes in Pune,

university affiliated institutes in Mumbai , Autonomous institutes in Pune and Autonomous institutes in Mumbai differ over development of Analytical and Logical skills of the students .

Ho: There is no difference in improvement of Analytical and Logical skills across four group of institutes (Autonomous institutes in Pune, University affiliated institutes in Pune, Autonomous institutes in Mumbai , University affiliated institutes in Mumbai )

H1: There is a significant difference in improvement of Analytical and Logical skills across four groups of institutes (Autonomous institutes in Pune, University affiliated institutes in Pune, Autonomous institutes in Mumbai, and University affiliated institutes in Mumbai).


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Statistical test Statistical results ConclusionOne way – ANOVA Welch (3, 413) = 475 P =0.00 Null hypotheses is rejected

Statistical test Statistical results ConclusionOne way – ANOVA Welch (3, 347)= 543 P =0.00 Null hypotheses is rejected

Statistical test Statistical results ConclusionOne way – ANOVA Welch ( 3, 156) = 114 P = 0.00 Null hypotheses is rejected

Statistical test Statistical results ConclusionOne way – ANOVA Welch ( 3, 244.8 )= 364.9 p=0.00 Null hypotheses is rejected

CONCLUSION Thus it can be concluded that, analytical and logical skills development is better in University affiliated institutes in Mumbai and Pune than Autonomous institutes in Pune and Mumbai.

CRISIS MANAGEMENT SKILLS :Test : One Way –ANOVA

Purpose : To study if university affiliated institutes in Pune, university affiliated institutes in Mumbai , Autonomous institutes in Pune and Autonomous institutes in Mumbai differ over development of Crisis Management skills of the students.

Ho : There is no difference in improvement of crisis management skills across four groups of institutes. (Autonomous institutes in Pune ,University affiliated institutes in Pune , Autonomous institutes in Mumbai , University affiliated institutes in Mumbai )H1: There is a significant difference in improvement of crisis management skills across four group of institutes (Autonomous institutes in Pune ,University affiliated institutes in Pune , Autonomous institutes in Mumbai ,University affiliated institutes in Mumbai ).

CONCLUSION: Thus it is concluded that Crisis management skills development in students of Autonomous institutes of Pune is best followed by Autonomous institutes of Mumbai which have done better than University affiliated institutes of Pune and Mumbai.

LEADERSHIP SKILLS :Test : One Way –ANOVA

Purpose :To study if university affiliated institutes in Pune, university affiliated institutes in Mumbai; Autonomous

institutes in Pune and Autonomous institutes in Mumbai differ over development of Leadership skills of the students.Ho: There is no difference in improvement of Leadership skills across four groups of institutes. (Autonomous institutes in Pune, University affiliated institutes in Pune, Autonomous institutes in Mumbai, University affiliated institutes in Mumbai).H1: There is a significant difference in improvement of Leadership skills across four groups of institutes (Autonomous institutes in Pune, University affiliated institutes in Pune, Autonomous institutes in Mumbai, University affiliated institutes in Mumbai) .

CONCLUSION : Thus it can be concluded that, Leadership skill development is better in Autonomous institutes in Pune and Mumbai than university affiliated institutes in Pune and Mumbai.

INNOVATIVE SKILLS:Test : One –Way ANOVA

Purpose : To study if university affiliated institutes in Pune, university affiliated institutes in Mumbai , Autonomous institutes in Pune and Autonomous institutes in Mumbai differ over development of Innovative skills of the students.

Ho : There is no difference in improvement of innovative skills across four groups of institutes (Autonomous institutes in Pune ,University affiliated institutes in Pune , Autonomous institutes in Mumbai , University affiliated institutes in Mumbai )

H1: There is a significant difference in improvement of innovative skills across four group of institutes (Autonomous institutes in Pune, University affiliated institutes in Pune , Autonomous institutes in Mumbai , University affiliated institutes in Mumbai ).


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CONCLUSION: Thus it can be concluded that innovative skills development is better in Autonomous institutes in Pune than Autonomous institutes in Mumbai, university affiliated institutes in Mumbai and Pune.

DECISION MAKING SKILLS:Test : One Way ANOVA

Purpose :To study if university affiliated institutes in Pune, university affiliated institutes in Mumbai; Autonomous institutes in Pune and Autonomous institutes in Mumbai differ over development of Decision making skills of the students.

Ho : There is no difference in improvement of Decision making skills across four group of institutes (Autonomous institutes in Pune ,University affiliated institutes in Pune , Autonomous institutes in Mumbai , University affiliated institutes in Mumbai )

H1: There is a significant difference in improvement of Decision making skills across four group of institutes (Autonomous institutes in Pune, University affiliated institutes in Pune, Autonomous institutes in Mumbai, University affiliated s institutes in Mumbai)

Purpose Statistical results ConclusionOne way – ANOVA Welch ( 3, 257 ) = 55 P = 0.00 Null hypotheses is rejected

Statistical test Statistical results Null accepted / rejectedOne way -ANOVA Welch(3,274.7) = 72.66, P = 0.00 Null hypotheses is rejected

CONCLUSION Thus it can be concluded that, Decision making skills development is better in Autonomous institutes in Mumbai than Autonomous institutes in Pune, University affiliated institutes in Mumbai and Pune.

Managerial skills development in students of Autonomous institutes of Pune and Mumbai is better than University affiliated institutes of Mumbai and Pune. Thus the hypothesis is tested and validated .

Ho2: Management education does not help in improving learning outcomes among students.

Ha2.1: Management education does help in improving learning outcomes among students of Autonomous institutes.

Ha2.2: Management education does help in improving learning outcomes among students of University affiliated institutes.

LEARNING OUTCOME :Purpose :To study if there is a difference in learning outcome across the four categories of MBA institutes. (Autonomous institutes in Pune, University affiliated institutes in Pune, Autonomous institutes in Mumbai, University affiliated institutes in Mumbai) .

Test : One way ANOVA

Ho: There is no difference in learning outcome across the four categories of MBA institutes. (Autonomous institutes in Pune, University affiliated institutes in Pune, Autonomous institutes in Mumbai, University affiliated institutes in Mumbai).

H1: There is a significant difference in learning outcome across the four categories of MBA institutes. (Autonomous institutes in Pune, University affiliated institutes in Pune, Autonomous institutes in Mumbai, University affiliated institutes in Mumbai) .

CONCLUSION : Learning outcomes of students in autonomous institutes of Pune and Mumbai are better than students of University affiliated institutes of Mumbai and Pune. Thus the hypothesis is tested and validated .

Ho3 : Management education does not help in overall development of management students .

Ha3.1: Management education helps in overall development of management students of Autonomous institutes .

Ha3.2 : Management education helps in overall development of management students of University affiliated institutes .

FACULTY COMPETENCE :

Test : One Way ANOVA

Purpose :To study if there is a difference in students’ perception of faculty competence across the four groups. (Autonomous institutes in Pune, University affiliated institutes in Pune, Autonomous institutes in Mumbai, University affiliated institutes in Mumbai)

Ho: There is no difference in student’s perception of faculty competence across the four groups. . (Autonomous institutes in Pune, University affiliated institutes in Pune , Autonomous institutes in Mumbai , University affiliated institutes in Mumbai )


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H1: There is a significant difference in student’s perception of faculty competence across the four group. . (Autonomous institutes in Pune, University affiliated institutes in Pune,

Autonomous institutes in Mumbai , University affiliated institutes in Mumbai .

Statistical Test Statistical results Null hypothesis is accepted /rejected One way – ANOVA Welch (3, 409.247) = 9.038 P= 0.00 Null hypotheses is rejected

Statistical Test Statistical results Null hypothesis is accepted /rejected One way – ANOVA Welch (3, 406.2 ) =19.277 P = 0.00 Null hypotheses is rejected

Statistical Test Statistical results Null hypothesis is accepted /rejected One way – ANOVA Welch ( 3, 410 ) = 131.050 P = 0.00 Null hypotheses is rejected

CONCLUSION : Thus it can be concluded that University affiliated institutes of Mumbai , Autonomous institutes of Mumbai and Pune are similar in performance in students perception of faculty competence and they have performed better than University affiliated institutes of Pune .

COMPETITIVE ENVIRONMENT :Test : One Way ANOVA

Purpose : To study if there is a difference in students’ perception of Competitive environment across the four groups. (Autonomous institutes in Pune, University affiliated

institutes in Pune, Autonomous institutes in Mumbai, University affiliated institutes in Mumbai).Ho : There is no difference in students perception of competitive environment across the four group. (Autonomous institutes in Pune, University affiliated institutes in Pune, Autonomous institutes in Mumbai , University affiliated institutes in Mumbai )H1 : There is a significant difference in students perception of competitive environment across the four groups . (Autonomous institutes in Pune, University affiliated institutes in Pune, Autonomous institutes in Mumbai, University affiliated institutes in Mumbai).

CONCLUSION: Thus it can be concluded that students’ perception of competitive environment is better in University affiliated institutes in Mumbai, Autonomous institutes in Pune and Mumbai than University affiliated institutes in Pune .

QUALITY OF PROGRAMMES :Test : One Way ANOVA

Purpose : To study if there is a difference in students’ perception of Quality of programmes across the four groups. (Autonomous institutes in Pune, University affiliated institutes in Pune, Autonomous institutes in Mumbai, University

affiliated institutes in Mumbai)

Ho: There is no difference in student’s perception of Quality of programmes across the four groups. . (Autonomous institutes in Pune, University affiliated institutes in Pune, Autonomous institutes in Mumbai, University affiliated institutes in Mumbai)

H1 : There is a significant difference in students perception of Quality of programmes across the four groups . (Autonomous institutes in Pune, University affiliated institutes in Pune, Autonomous institutes in Mumbai, University affiliated institutes in Mumbai).

CONCLUSION: Thus it can be concluded that students’ perception of quality of programmes is better in, Autonomous institutes in Pune and Mumbai than University affiliated institutes in Pune and Mumbai.

PERSONAL ATTENTION:Test : One Way ANOVA

Purpose :To study if there is a difference in students’ perception of personal attention across the four groups. (Autonomous institutes in Pune, University affiliated institutes in Pune, Autonomous institutes in Mumbai, University affiliated institutes in Mumbai).

Ho : There is no difference in students perception of personal attention across the four groups (Autonomous institutes in Pune, University affiliated institutes in Pune, Autonomous institutes in Mumbai, University affiliated institutes in Mumbai) .H1 : There is a significant difference in students perception of personal attention across the four groups (Autonomous institutes in Pune, University affiliated institutes in Pune, Autonomous institutes in Mumbai, University affiliated institutes in Mumbai).


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Statistical Test Statistical results Null hypothesis is accepted /rejected One way – ANOVA Welch (3, 389 ) = 90.5 P =0.00 Null hypotheses is rejected

Statistical Test Statistical results Null hypothesis is accepted /rejected One way – ANOVA Welch (3, 383) = 30.2 p = 0.00 Null hypotheses is rejected

Statistical Test Statistical results Null hypothesis is accepted /rejected One way – ANOVA Welch (3, 406 ) = 129.4 p =0.00 Null hypotheses is rejected

CONCLUSION: Thus it can be concluded that Autonomous institutes in Pune gives more attention personally for students than university affiliated institutes in Pune and Mumbai and Autonomous institutes in Mumbai in present education system.

FACULTY MEMBERS WITH REAL WORLD EXPERIENCE :Test : One Way ANOVA

Purpose : To study if there is a difference in student’s perception of faculty members with real world experience across the four groups. . (Autonomous institutes in Pune,

University affiliated institutes in Pune, Autonomous institutes in Mumbai, University affiliated institutes in Mumbai)

Ho : There is no difference in students’ perception of faculty members with real world experience across the four groups (Autonomous institutes in Pune, University affiliated institutes in Pune, Autonomous institutes in Mumbai, University affiliated institutes in Mumbai).

H1: There is a significant difference in students’ perception of faculty members with real world experience across the four groups. (Autonomous institutes in Pune, University affiliated institutes in Pune, Autonomous institutes in Mumbai and University affiliated institutes in Mumbai).

CONCLUSION: Thus it can be concluded that, there are more faculty members with real world experience in Autonomous institutes in Pune and Mumbai compared to university affiliated institutes in Pune and Mumbai.

NETWORKING TIES WITH BUSINESS COMMUNITY :Test : One Way ANOVA

Purpose : To study if there is a difference in students’ perception of networking ties with business community across the four groups. (Autonomous institutes in Pune,

University affiliated institutes in Pune, Autonomous institutes in Mumbai, University affiliated institutes in Mumbai

Ho: There is no difference in students’ perception of networking ties with business community across the four groups (Autonomous institutes in Pune, University affiliated institutes in Pune, Autonomous institutes in Mumbai, and University affiliated institutes in Mumbai)

H1: There is a significant difference in students’ perception of networking ties with business community across the four groups (Autonomous institutes in Pune, University affiliated institutes in Pune, Autonomous institutes in Mumbai, and University affiliated institutes in Mumbai)

CONCLUSION :Thus it can be concluded that It can be concluded that,

there is more networking ties with business community in Autonomous institutes in Mumbai as compared to Autonomous institutes of Pune ,University affiliated institutes in Mumbai and Pune .

Ho4 : Todays Management curriculum is not helpful in developing decision making , crisis management and analytical skills in management graduates.

Ha4.1 : Todays Management curriculum is helpful in developing decision making, crisis management and analytical skills in management graduates of Autonomous institutes.

Ha4.2: Todays Management curriculum is helpful in developing decision making skills, crisis management and analytical skills in management graduates of University affiliated institutes .

IMPROVEMENT IN SKILLS AND ABILITIES :Test : One way – ANOVA

Purpose: To see if there is a difference in skills and abilities developed in MBA students across the four groups (Autonomous institutes in Pune ,University affiliated institutes in Pune , Autonomous institutes in Mumbai , University affiliated institutes in Mumbai ) .

HO: There is no difference in skills and abilities developed in MBA students across the four groups (Autonomous institutes in Pune, University affiliated institutes in Pune , Autonomous institutes in Mumbai and University affiliated institutes in Mumbai ) .

H1: There is a significant difference in skills and abilities developed in MBA students across the four groups (Autonomous institutes in Pune, University affiliated institutes in Pune, Autonomous institutes in Mumbai and University affiliated institutes in Mumbai).


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Purpose Statistical results ConclusionOne way – ANOVA Welch (3, 345 ) = 105.5 P = 0.00 Null hypothesis is rejected

Purpose Statistical results ConclusionOne way – ANOVA Welch (3,112.714) = 123.89 p = 0.00 Null hypothesis is rejected

Purpose Statistical results ConclusionOne way – ANOVA Welch (3, 67.122 ) = 201.355 P = 0.00 Null hypothesis is rejected

CONCLUSION : Thus it can be concluded that, there is more improvement in skills and abilities of students in Autonomous institutes in Mumbai as compared to Autonomous institutes in Pune ,University affiliated institutes in Mumbai and Pune.

CHANGE IN PERSONALITY DEVELOPMENT IN STUDENTS :Purpose :To see if there is a difference in personality development due to MBA course across the four categories of the institutes. (Autonomous institutes in Pune, University affiliated institutes in Pune, Autonomous institutes in

Mumbai, University affiliated institutes in Mumbai)

Test: One way – ANOVAHO : There is no difference in personality development due to MBA course across the four categories of the institutes . (Autonomous institutes in Pune, University affiliated institutes in Pune , Autonomous institutes in Mumbai , University affiliated institutes in Mumbai )

H1 : There is a significant difference in personality development due to MBA course across the four categories of the institutes . (Autonomous institutes in Pune, University affiliated institutes in Pune, Autonomous institutes in Mumbai, University affiliated institutes in Mumbai)

CONCLUSION: Thus it can be concluded that; major development in personality is seen in MBA students of Autonomous institutes in Pune and Mumbai as compared to students of University affiliated institutes in Pune and Mumbai. Thus the hypothesis is tested and validated .

INDUSTRY –INSTITUTE PARTICIPATION:Purpose : To study if there is a difference in the industry institute interface across the four groups (Autonomous institutes in Pune ,University affiliated institutes in Pune, Autonomous institutes in Mumbai , University affiliated

institutes in Mumbai ).Test : One way – ANOVA HO : There is no difference in the industry institute interface across the four groups ,(Autonomous institutes in Pune,University affiliated institutes in Pune , Autonomous institutes in Mumbai , University affiliated institutes in Mumbai )

H1: There is a significant difference in the industry institutes interface across the four groups (Autonomous institutes in Pune, University affiliated institutes in Pune, Autonomous institutes in Mumbai, University affiliated institutes in Mumbai)

CONCLUSION: Thus it can be concluded that Autonomous institutes in Mumbai and Pune have done comparatively better than University affiliated institutes in Mumbai and Pune in industry institute partnership.

Ho5: There is no significant difference in developing managerial skills by Autonomous institutes curriculum and University affiliated institutes Curriculum.

Ha5.1: Autonomous Institutes’ curriculum is more helpful in developing Managerial Skills than University affiliated Institutes curriculum.

Ha5.2 : University affiliated institutes curriculum is more helpful in developing Managerial Skills than Autonomous institutes curriculum.

COMMUNICATIONS SKILLS:Test : One way Anova

Purpose : To study if university affiliated institutes in Pune, university affiliated institutes in Mumbai, Autonomous institutes in Pune and Autonomous institutes in Mumbai differ over development of communication skills of the students.

Ho: There is no difference in improvement of communication skills in students’ across four group of institutes. (Autonomous institutes in Pune, University affiliated institutes in Pune, Autonomous institutes in Mumbai, University affiliated institutes in Mumbai)

H1: There is a significant difference in improvement of communication skills in students’ across four groups of institutes. (Autonomous institutes in Pune, University affiliated institutes in Pune, Autonomous institutes in Mumbai, University affiliated institutes in Mumbai)


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Statistical test Statistical results ConclusionOne way – ANOVA Welch ( 3, 388)= 184 P =0.00 Null hypotheses is rejected

Statistical test Statistical results ConclusionOne way – ANOVA Welch ( 3, 325 )= 117 .4 p = 0.00 Null hypotheses is rejected

Statistical test Statistical results ConclusionOne way – ANOVA Welch (3, 413) = 475 P =0.00 Null hypotheses is rejected

CONCLUSION Thus it can be concluded that, Communication skills development is better in student’s Autonomous institutes in Pune and Mumbai and also in University affiliated institutes in Mumbai than University affiliated institutes in Pune.

MOTIVATION SKILLS :Test : One way ANOVA

Purpose : To study if university affiliated institutes in Pune, university affiliated institutes in Mumbai, SAutonomous institutes in Pune and Autonomous institutes in Mumbai differ over development of Motivation skills of the students.

Ho: There is no difference in improvement of Motivation skills across four groups of institutes (Autonomous institutes in Pune, University affiliated institutes in Pune, Autonomous institutes in Mumbai, University affiliated institutes in Mumbai) .

H1: There is a significant difference in improvement of Motivation skills across four group of institutes (Autonomous institutes in Pune, University affiliated institutes in Pune, Autonomous institutes in Mumbai, University affiliated institutes in Mumbai).

CONCLUSION: Thus it can be concluded that Motivational skills development is better in Autonomous institutes in Mumbai and Pune than University affiliated institutes in Mumbai and Pune.

ANALYTICAL AND LOGICAL SKILLS:Test : One Way –ANOVA

Purpose :To study if university affiliated institutes in Pune, university affiliated institutes in Mumbai , Autonomous institutes in Pune and Autonomous institutes in Mumbai differ over development of Analytical and Logical skills of the students .

Ho: There is no difference in improvement of Analytical and Logical skills across four group of institutes (Autonomous institutes in Pune, University affiliated institutes in Pune, Autonomous institutes in Mumbai , University affiliated institutes in Mumbai )

H1: There is a significant difference in improvement of Analytical and Logical skills across four groups of institutes (Autonomous institutes in Pune, University affiliated institutes in Pune, Autonomous institutes in Mumbai, and University affiliated institutes in Mumbai).

CONCLUSION : Thus it can be concluded that, analytical and logical skills development is better in University affiliated institutes in Mumbai and Pune than Autonomous institutes in Pune and Mumbai.

CRISIS MANAGEMENT SKILLS :Test : Test :One Way –ANOVA

Purpose : To study if university affiliated institutes in Pune,

university affiliated institutes in Mumbai , Autonomous institutes in Pune and Autonomous institutes in Mumbai differ over development of Crisis Management skills of the

students.

Ho: There is no difference in improvement of crisis management skills across four groups of institutes. (Autonomous institutes in Pune ,University affiliated institutes in Pune , Autonomous institutes in Mumbai, University affiliated institutes in Mumbai)

H1: There is a significant difference in improvement of crisis management skills across four group of institutes (Autonomous institutes in Pune ,University affiliated institutes in Pune , Autonomous institutes in Mumbai, University affiliated institutes in Mumbai).


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Statistical test Statistical results ConclusionOne way – ANOVA Welch (3, 347)= 543 P =0.00 Null hypotheses is rejected

Statistical test Statistical results ConclusionOne way – ANOVA Welch ( 3, 156) = 114 P = 0.00 Null hypotheses is rejected

Statistical test Statistical results ConclusionOne way – ANOVA Welch ( 3, 244.8 )= 364.9 p=0.00 Null hypotheses is rejected

CONCLUSION: Thus it is concluded that Crisis management skills development in students of Autonomous institutes of Pune is best followed by Autonomous institutes of Mumbai which have done better than University affiliated institutes of Pune and Mumbai.

LEADERSHIP SKILLS :Test : One Way –ANOVA

Purpose : To study if university affiliated institutes in Pune, university affiliated institutes in Mumbai; Autonomous institutes in Pune and Autonomous institutes in Mumbai

differ over development of Leadership skills of the students.

Ho: There is no difference in improvement of Leadership skills across four groups of institutes. (Autonomous institutes in Pune, University affiliated institutes in Pune, Autonomous institutes in Mumbai, University affiliated institutes in Mumbai).

H1: There is a significant difference in improvement of Leadership skills across four groups of institutes (Autonomous institutes in Pune, University affiliated institutes in Pune, Autonomous institutes in Mumbai, University affiliated institutes in Mumbai) .

CONCLUSION Thus it can be concluded that, Leadership skill development is better in Autonomous institutes in Pune and Mumbai than university affiliated institutes in Pune and Mumbai.

INNOVATIVE SKILLS:Test : One –Way ANOVA

Purpose : To study if university affiliated institutes in Pune, university affiliated institutes in Mumbai , Autonomous institutes in Pune and Autonomous institutes in Mumbai differ over development of Innovative skills of the students.

Ho : There is no difference in improvement of innovative skills across four groups of institutes (Autonomous institutes in Pune ,University affiliated institutes in Pune , Autonomous institutes in Mumbai , University affiliated institutes in Mumbai )

H1: There is a significant difference in improvement of innovative skills across four group of institutes (Autonomous institutes in Pune, University affiliated institutes in Pune, Autonomous institutes in Mumbai , University affiliated institutes in Mumbai).

CONCLUSION: Thus it can be concluded that innovative skills development is better in Autonomous institutes in Pune than Autonomous institutes in Mumbai, university affiliated institutes in Mumbai and Pune.

DECISION MAKING SKILLS:Test : One Way ANOVA

Purpose : To study if university affiliated institutes in Pune, university affiliated institutes in Mumbai; Autonomous institutes in Pune and Autonomous institutes in Mumbai differ over development of Decision making skills of the

students.

Ho : There is no difference in improvement of Decision making skills across four group of institutes (Autonomous institutes in Pune, University affiliated institutes in Pune, Autonomous institutes in Mumbai, University affiliated institutes in Mumbai )

H1: There is a significant difference in improvement of Decision making skills across four group of institutes (Autonomous institutes in Pune, University affiliated institutes in Pune, Autonomous institutes in Mumbai, University affiliated institutes in Mumbai


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Purpose Statistical results ConclusionOne way – ANOVA Welch ( 3, 257 ) = 55 P = 0.00 Null hypotheses is rejected

CONCLUSION : Thus it can be concluded that, Decision making skills development is better in Autonomous institutes in Mumbai than Autonomous institutes in Pune, University affiliated institutes in Mumbai and Pune.

Thus Managerial skills development in Autonomous institutes of Pune and Mumbai is better than University affiliated institutes of Mumbai and Pune .

Thus the hypothesis is tested and proved .

FINDINGS : Data Analysis was done in total four groups of institutes (Autonomous institutes of Pune , University affiliated institutes of Pune , Autonomous institutes of Mumbai and University affiliated institutes of Mumbai ) .

Finding are written in two groups, whenever same findings are noted in similar types of institutes. (Autonomous Institutes and University affiliated Institutes ) .

Rest of the findings is written with reference to all four types of Institutes.

FINDINGS OF DATA ANALYSIS FOR STUDENTS:

1. It has been observed that students from Commerce and science background give more preference to MBA than Arts and engineering graduates.

2. Maximum number of students have registered for finance and then marketing .less number of students have registered for HRM and other subjects for specialization.

3. Maximum number of students have no work experience and around 33% students have got work experience before taking admission to MBA.

4. Placements, value addition and to acquire professional skills or competencies –These three parameters are given equal importance by students for taking admission to MBA course in Autonomous Institutes as well as University affiliated Institutes.

5. Students of Autonomous Institutes are exposed almost equally to all co-curricular activities and students of University affiliated Institutes are exposed more to Industrial visits, lectures on Industries. Guest lectures,

mentorship and internship are given less weightage.

6. Students of Autonomous institutes are exposed equally to all five types of curricular activities.

7. Students of University affiliated Institutes of Pune are exposed almost equally to all five types of curricular activities. University affiliated Institutes of Mumbai focus more on Industry visits, guest lectures, workshops and seminars by industry people .Sponsorship for events and summer projects are given less weightage.

8. Autonomous institutes of Pune give almost equal importance to all five types of activities for internal assessment.

9. Students of University affiliated institutes in Pune are exposed more on tutorials, internal examination and physical attendance .Class preparation and extracurricular activities are given less weightage.

10. Autonomous institutes in Mumbai focus more to internal examination, physical attendance and tutorials. Extracurricular activities and class preparation are given less weightage.

11. Students of University affiliated institutes in Mumbai focus more on physical attendance, tutorials, and extracurricular activities. Class preparation and tutorials are given less weightage .

12. Internal assessment method is used more effectively by Autonomous Institutes in Pune than other three types of institutes.

Also course in research methodology before research project is conducted more effectively in Autonomous institutes of Pune compared to other three types of institutes.

13. Major development in personality is seen in MBA students of Autonomous institutes than students of University affiliated institutes.

14. Learning outcomes are better in students of Autonomous institutes than students of University affiliated institutes.

15. It was observed that there is more improvement in skills and abilities of students of Autonomous institutes compared to students of University affiliated Institutes.

16. Autonomous institutes have done comparatively better than University affiliated institutes in Industry –Institute Partnership.

17. Students perception of regarding course in teaching methodology is better in Autonomous institutes than in University affiliated institutes.


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18. Students perception of faculty competence is better in University affiliated institutes in Mumbai, Autonomous institutes of Pune and Mumbai than University affiliated institutes of Pune.

19. Students perception of Competitive environment is better in University affiliated institutes of Mumbai, Autonomous institutes of Pune and Mumbai as compared to University affiliated institutes of Pune.

20. Students perception of quality of programmes is better in Autonomous institutes than in University affiliated institutes.

21. It was observed that scheduling of institutes is more flexible in Autonomous institutes of Pune than University affiliated institutes of Pune and Mumbai and Autonomous institutes of Mumbai.

22. It was observed that Autonomous institutes of Pune pay more personal attention to students than University affiliated institutes of Pune and Mumbai and Autonomous institutes of Mumbai.

23. Autonomous institutes of Mumbai prefer more for accommodation of working students than Autonomous institutes of Pune, University affiliated institutes of Pune and Mumbai.

24. There are more faculty member with real world experience in Autonomous institutes compared to University affiliated institutes.

25. Networking ties in business community is better in Autonomous institutes of Pune than Autonomous institutes of Mumbai, University affiliated institutes of Pune and Mumbai.

26. It was observed that Communication skills development is better in students of Autonomous institutes of Pune and Mumbai and University affiliated institutes of Mumbai than University affiliated in Pune.

27. Motivation skills development is better in students of Autonomous institutes than students of University affiliated institutes.

28. Analytical and logical skills development is better in students of University affiliated institutes than students of Autonomous institutes.

29. Crisis management skills development is better in students of Autonomous institutes than University affiliated institutes.

30. Leadership skills development is better in students of Autonomous institutes than students of University affiliated institutes.

31. Innovative skills development is better in students of Autonomous institutes of Pune than Autonomous institutes of Mumbai, University affiliated institutes of Mumbai and Pune .

32. Decision making skills development is better in students of Autonomous institutes of Mumbai than Autonomous institutes of Pune, University affiliated institutes of Pune and Mumbai.

FINDINGS OF DATA ANALYSIS FOR FACULTY MEMBERS:

1. Proportion of more experienced faculty members are in University affiliated institutes of Pune and Autonomous institutes of Mumbai, while Proportion of less experienced faculty members is more in university affiliated institutes of Mumbai and Autonomous institutes of Pune.

2. Proportion of full time faculty members is more in University affiliated institutes of Pune and Autonomous institutes of Mumbai compared to University affiliated institutes of Mumbai and Autonomous institutes of Pune .

3. According to faculty members perception of learning outcomes , Autonomous institutes of Pune focus more on acquiring domain knowledge and reading and learning initiatives while upgrading teaching skills, research and research skills are given less weightage.

4. University affiliated institutes of Pune focus more on research and acquiring domain knowledge in learning initiatives .Reading, upgrading teaching skills and research skills are given less weightage.

5. Autonomous institutes of Mumbai focus more on research and acquiring domain knowledge in learning initiatives .Reading , upgrading teaching skills and research skills are given less weightage.

6. University affiliated institutes in Mumbai focus more on acquiring domain knowledge and reading in learning initiatives .Upgrading teaching skills, research and research skills are given less weightage.

7. Autonomous institutes of Pune focus more on test and assignments, compelling students to analyse cases, exposing students to the realities of the field, encouragement of students to read a lot ,supply students with lots of information etc. in the students development initiatives undertaken by faculty members . Compelling students to write research papers, building analytical skills and organizing events are given less weightage.


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8. University affiliated institutes in Pune focus more on supplying students with lots of information, test and assignments, often comforting students with test and assignments, encouragement of students to read a lot, compelling students to write research papers and building analytical skills in the Students development initiatives undertaken by faculty members. Organizing events, analyzing cases, and exposing students to the realities of field are given less weightage.

9. Autonomous institutes in Mumbai focus more on supplying students with lots of information, comforting students with tests and assignments, organizing events, encouraging students to read a lot and to analysing

cases.

Exposing students to the realities of the field, building analytical skills, and writing research papers are given less weightage.

10. University affiliated institutes in Mumbai focus more on supplying students with lots of information ,often comforting students with test and assignments, to organize events ,to expose students to the realities of the field and to compel students to analyze cases in the students development initiatives undertaken by faculty members .building analytical skills , to compel students to write research papers and to encourage students to read a lot are given less weigtage.

11. Autonomous institutes and University affiliated institutes are able to complete the syllabus in time except for a very few autonomous Institutes.

12. Autonomous and University affiliated institutes conduct extra classes for completion of syllabus.

13. Both Autonomous and University affiliated institutes take part in designing syllabus almost equally, except for few institutes from University affiliated institutes in Mumbai which do not take part in designing syllabus.

14. Autonomous and University affiliated institutes fulfill industry needs except for few from University affiliated institutes in Mumbai.

15. Both Autonomous and University affiliated types of institute’s make research articles available for students except for few from university affiliated institutes in Mumbai.

16. Both Autonomous and University affiliated institutes’ make audiovisual aids available for students except for few institutes from University affiliated institutes in Mumbai.

17. Faculty members of Autonomous institutes in Pune focus more on case study, group discussion, lectures

and role play. Brain storming sessions, team teaching sessions and seminars are given less weigtage.

18. Faculty members of University affiliated institutes in Pune focus more on seminars, brain storming sessions, lectures and group discussions .Team teaching sessions, case study and role play are given less weigtage.

19. Faculty members of Autonomous institutes in Mumbai focus more on seminars , brain storming sessions , lectures and Team teaching sessions. Group discussions, case study and role play are given less weigtage.

20. Faculty members of University affiliated institutes in Mumbai focus more on Group discussions, lectures, Team teaching sessions and role play. Case study, seminars, and brain storming sessions are given less weigtage.

21. Multiple response analysis for various books referred for teaching by faculty members of Autonomous institutes of Pune shows that 50% faculty member refer books recommended in syllabus and 50% refer other reference books .In case of faculty members from university affiliated institutes of Pune , 51.2% refer books recommended in syllabus and 48.8% faculty members refer other reference books .46.3% Faculty members from Autonomous institutes of Mumbai refer books recommended in syllabus and 53.8% faculty members refer to other reference books .64.2% Faculty members of University affiliated institutes of Mumbai refer books recommended in syllabus and 35.8% faculty members refer to other reference books.

22. Faculty members of Autonomous institutes in Mumbai and University affiliated institutes in Pune are more interested in upgrading syllabus than faculty members of Autonomous institutes in Pune and University affiliated institutes in Mumbai.

23. Faculty members of University affiliated institutes are satisfied with students attendance compared to faculty members from Autonomous institutes.

24. Attitudinal change due to industrial visit is seen more in University affiliated institutes in Pune and Autonomous institutes in Mumbai compared to students of university affiliated institutes in Mumbai and Autonomous institutes in Pune.

25. Faculty members of Autonomous institutes in Pune focus more on group discussion, project reports, seminars and semester examination. End examination, class test and vivas are given less weightage.

26. Faculty members of University affiliated institutes in Pune focus more on class test End examination, group discussion and seminars. Semester examination, Project


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report and viva are given less weightage.

27. Faculty members of Autonomous institutes in Mumbai gives equal importance to all parameters in evaluation system.

28. Faculty members of University affiliated institutes in Mumbai focus more on end examination, class test, and Viva and group discussion. Seminars, semester examination and project reports are given less weigtage.

29. Faculty members of Autonomous institutes are more satisfied with placements of their students but faculty members of University affiliated institutes in Mumbai and Pune are less satisfied with placements of their students.

30. Faculty members of Autonomous institutes in Pune are successful in skill development of students in leadership skill, communication skills , Innovative skills , Measured level of confidence Management skill development, crisis Management skills and Decision making skills . Motivation skills, Personality development, Analytical and logical skills are given less weigtage.

31. Faculty members of University affiliated institutes in Pune are successful in developing crisis Management skills, Analytical logical skills, Decision making skills, Measured level of confidence, Personality development, communication skill development and Motivation skills. Leadership skill development, Management skill development, and Innovative skills are given less weigtage.

32. Faculty members of Autonomous institutes in Mumbai are successful in developing Management skills development, Innovative skills, Analytical logical skills, communication skill development, measured level of confidence and Leadership skill development. Personality development, Decision making skills ,crisis Management skills and Motivation skills are given less weigtage.

33. University affiliated institutes in Mumbai are successful in developing Innovative skills , crisis Management skills, communication skill development, Personality development , Measured level of confidence ,Motivation skills and Decision making skills. Management skills development, Leadership skill development, Analytical and logical skills are given less weightage .

34. Faculty members of Autonomous institutes in Pune focus more on Lectures on current topics by industry experts , MDPs for Industry , Surveys for Industry and Student career /professional club.FDP by Industry people , work project and Consultancy to the Industry

are given less weightage.

35. Faculty members of University affiliated institutes in Pune focus more on Lectures on current topics by industry people, work project, Surveys for Industry and Consultancy to the Industry. Student career /professional club, MDPs for Industry and FDP by Industry people are given less weigtage.

36. Faculty members of Autonomous institutes in Mumbai focus more on Consultancy to the Industry, FDP by Industry people, work project and Lectures on current topics by industry people. Student career /professional club, Surveys for Industry and MDPs for Industry are given less weigtage.

37. Faculty members of University affiliated institutes in Mumbai focus more on Consultancy to the Industry, FDP by Industry people, Lectures on current topics by industry people and student career /professional club. Surveys for Industry, MDPs for Industry, work project are given less weightage.

38. Autonomous institutes in Mumbai are involved more in course designing and changes in syllabus than

University affiliated institutes.

CONCLUSION:

The research has been carried out across two categories of Institutes in Pune and Mumbai regions i.e Autonomous Institutes of Pune and Mumbai and Institutes, affiliated to Pune and Mumbai University .The analysis shows that Autonomous Institutes have performed better than University affiliated Institutes .

The performance of Autonomous Institutes was excellent in implementing curricular and co- curricular activities and using internal assessment methods effectively. Autonomous Institutes have focused more on overall growth of students through personality development programmes ,learning outcome, improvement of skills and abilities by strengthening Industry –Institute partnership. Autonomous institutes insist more on students attendance , Competitive environment ,quality of Programmes for students and flexibility of scheduling .These institutes have given weightage for continues evaluation through tutorials and class preparations , summer projects ,and seminars .

These institutes are ahead of University affiliated Institutes in faculty members with real world experience, giving personal attention to students .These Institutes carry out various activities for enhancement of Innovative skills , Leadership skills and crisis management skills .All these sum up to give better placements to their students .

Students perception in these institutes regarding teaching


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methodology , faculty competence, Competitive environment and quality of programmes in Autonomous institutes is found to be very much satisfactory.

Autonomous institutes fail to provide good research platform to their students and faculty members Research platform helps students to explore the new vision and equip themselves for industry exposure .

Autonomous institutes has got upper hand in experienced faculty members and staff to provide competitive environment which gives platform to students to accept challenges and come with solutions as this is the first step of training before entering into industry .

With all these advantages of Autonomous institutes ,Students shows excellent performance in development of Communication skills , decision making skills , Leadership skills , Motivation and innovative skills which ultimately reflects in good attitudinal changes in students of their institutes University affiliated Institutes have tried their level best in providing Competitive environment to students , concentrated on students attendance and also appointing more experienced faculty members which helps in development of Communication skills ,Motivational skills, Logical and analytical skills in students. Implementation of curricular activities like Industrial visits , summer projects, guest lectures in University affiliated institutes is also satisfactory.

But University affiliated institutes are lagging behind Autonomous Institutes in all other parameters like syllabus design, tie up with industries, overall development of students, attitudinal change in students, involvement of industries in designing syllabus etc.

Thus Autonomous institutes have shown better performance, on the contrary University affiliated Institutes fall short on many accounts than Autonomous Institutes.

SUGGESTIONS AND RECOMMENDATIONS:

This research study reveals that, Institutes which have got autonomy for their functioning have improved their quality to great extent .

For example –All premier institutes (IIMs) and Autonomous MBA institutes have got Autonomy regarding changes in syllabi ,fee structure etc .and these institutes are able to maintain high standards of education .

The MBA programme is run to bridge the gap between the Industry requirement and fresh graduates. It means that MBA graduate should be partially trained manager before he should enter into the Industry. To fill this gap researcher propose the following suggestions for all levels i.e Students, faculty members, Institute and Government.

FOR THE STUDENTS :

• It was observed that students from Arts, Science, commerce and technical background take admission for MBA course. During graduation personality development is not necessary to be the part of their curriculum. But as a manager it is important trait of MBA graduate therefore it is necessary that student should pay more attention towards polishing their personality along with their studies.

• Students interest in research activities is found to be less than expected in all four types of institutes . Research oriented projects and activities are essential to formulate new policies which can benefit all management institutes in future .so focus on research based activities and active participation of students in these activities can be included as part of MBA curriculum.

• Students should focus on acquiring updated knowledge through reading news paper, live discussion on current topics which will help them in developing critical & analytical skills.

• Students should develop their approach as to be “JOB GIVER INSTEAD OF JOB SEEKER”

• Student should read different cases of industries along with solutions and increase their participation in case study, business plan competitions this will help them to improve their problem solving skill & decision making skills.

FOR THE FACULTY MEMBERS :-

• MBA programme is basically to create either Managers or businessmen therefore it is of utmost importance that the teachers who teach them must have basic knowledge of these fields.

• Faculty should have the urge to update themselves through industry training. Those faculty who do not have industry exposure must undergo minimum 20 days training during their vacation period to enable themselves to satisfy the need of MBA curriculum. Teaching through reading books may not generate interest among students about the programme.

• Faculty members should actively participate in paper assessment this help the faculty in teaching as they understand the mistakes students are doing while writing papers and what is the gap of learning.

• Faculty members should promote specialization forums, clubs in the institute where open discussion on various current issues, new development of ideas should be discussed this helps to improve faculty knowledge.


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• Faculty members must try to give consultancy or training to company employees on various topics to enhance the skills and functioning of organization.

FOR THE INSTITUTES:-• It is seen that many institutes are lagging behind

on various parameters such as good teaching staff, infrastructure, and student development. Institute should promote faculty development approach institute which intern will develop students also.

• Institute should focus on Industry-Institute partnership to impart good quality management education. Students & faculty regular interaction with industry improve the managerial skills in both. Industry experience sharing, guest lectures must be a regular phenomena at institute level for managerial skill enhancement.

• Institute – Industry MOU’s is another way to increase the bond between the institute and industry.

• To build better image of professionalism in industry institute must promote the industry participation in various programmes of the institute.

• Institute must invite Industry nominee to frame certain institute level courses.

FOR THE GOVERNMENT:-• Government policy of granting the permission to new

institute should be only after satisfaction of required norms, otherwise it is hampering the image of the MBA degree..

• There should be periodical review of the institute performance and the extension of institute should be permitted.

• The government rule should not be cumbersome in terms of hiring permanent faculty in the institute. MBA is not a regular degree it is a professional degree and you need some professionally experience people too to teach the course. The policy should give some autonomy to the institute to hire the faculty. Hiring ratio should proportionate. Out of total faculty members 70% faculty must be permanent and 30% should be visiting. This will ease the institute from economical burden.

• UGC should permit existing management institutes to tie up with industry for some programme or undertake run industry oriented subjects. There industry will train the students as per their requirement.

SCOPE FOR FURTHER RESEARCH :The research subject is very crucial and still has the scope of further research. Present study focuses to what extent

the present management education help in developing managerial skill in student. The areas which are untapped are impact of present management education on employability skill generation in students.

CONTRIBUTION TO KNOWLEDGE ,PROFESSION AND SOCIETY :-This research study explores the present scenario of Management education .Nowadays graduates from all streams are choosing MBA as better career option .By this study MBA aspirants and their parents can come to know about the benefits as well as drawbacks in Management education system and they can opt for good quality management institutes for their career .After getting good knowledge about today’s Management education , by way of such research studies , students professionals and society at large can avail its benefits for their own growth.

CHAPTER SCHEME :1. Title

2. Introduction 3. Literature review4. Research Methodology

5. Data Analysis and Hypothesis testing 6. Finding and Conclusion7. Bibliography

8. Appendix

BIBLIOGRAPHY :

1. Apoorwa Bharadwaj ,Indian Institute of Management Calcutta, India “Globalization in Management Education challenges & Strategies” – International Journal of Arts and Sciences 3(7) : 466 - 477 (2010) CD-ROM. ISSN: 1944-6934 © InternationalJournal.org .

2. David Finegold , Brent Krentner, “ Institutional effects on skill creation.:A comparison of management Development in the U.S. & Germany”, CEO Centre for Effective Organizations, 31st May ,1995.

3. Dr. V. R. Mehta,`` “Management Education in the New Millennium” I.I.M. Review vol.3 No.2 April 1999 Quarterly News letter – New Delhi.

4. Anis U.R Rehman, Dr. Yasir Arafat ElahiIntegral university, Lmeknow. ““Entrepreneurship Education in India – Scope, challenge and Role of B- Schools in promoting .Entrepreneurship Education’’.” International Journal of Engineering and Management Research Vo12, Issue-5, October 2012. (Pages5-14) ISSN No.: 2250-0758 .

5. Dr. Bharat Meghe Readee and head dept of commerce,


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Kamala Nehru College Nagpur..“Business schools in India and Students expectations” International Referred Research Journal ISSN-0974-2832 VOL. I * ISSUE—17 RNI : RAJBIL/2009/29954.

6. Bholanath Datta, “Management of management Department A road to excellence’’, pg no105-156

7. Sonal Bhat, Dr Pratibha Joshi, “Industry Institute Interaction : A stakeholder Perspective’’ Novel Research Kaleidoscope, Pg no 66-80 vol no 4Feb 2014.

8. Manzoor shah,“Management Education : Challenges and future directions ’’University news, Vol 50 no 48 26th November -2 nd December 2012.

9. Abhijit Bora, “Professional Education : Overcoming Major Challenges’’, University News, 49 (52) December 26, 2011-01January, 2012 Pg no 9-13.

10. Ankush More, (2012) Management Education : Recent Trends , Challenges and Opportunities ,Univresity news, 50 (06) February 06-12, 2012 Pg no 17-24


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A STUDY TO ASSESS THE H.R.D. PRACTICES ADOPTED AMONG SCHOOL TEACHERS IN SELECTED SECONDARY SCHOOLS

IN PUNE CITY DURING 2011–12

Sunny P. Mathew1

Daniel Penkar2

© SBPIM

Research Scholar,

Contact No.: Email Id: [email protected], S.B.Patil Institute of Management, Nigdi, Pune 411044.Contact No.: 9881522211 Email Id: [email protected]

INTRODUCTION:Human resource management is concerned with human being in an organization. It reflects a new philosophy, a new outlook, approach, which deals with manpower as its resource. People need competencies like knowledge, attitude, values & skills to perform tasks. Higher degree and quality of performance of tasks requires higher degree of skills. Without continuous development of competencies in people, an organization cannot achieve its goals. Competent & motivated employees are essential for organizational survival, growth & excellence.

It is well recognized that human competency development is an essential pre-requisite for development of an organization. Research, experimentation & experience in the field of human resource management has grown enormously in the last decade.

Any growing dynamic organization has to pay attention to working conditions of human resource because, other resources can grow in a limited manner, but human resources have an unlimited potential of growth.

RECENT TRENDS IN COMPETITIVE ACADEMIC ENVIRONMENT A few years ago human resource management was considered as a new name for training. Today most academic institutions talk in terms of HRM climate, performance appraisal, potential development, performance counselling, career path development and healthy working environment. Thus human resource development has become an important essential dimension of modern academic management. It treats individual as a resource rather than an expense & views expenditure on training/refreshing as an investment than cost. Now a days there is great awareness about investment potential in training & development all over the world.

In the face of enormous & rapid change in the academic environment in India, backed by liberalization of economy, globalization of business, modernization of technology and privatization of services, a need exists for a fresh look at the human resources. Thus, it has opened a new chapter in training and investing in employees. The need for participation of the teachers is carefully nurtured. Separation between ownership & management also increased the scope of human resource department.

Need of the study of H.R. practices in selected secondary schools in Pune City. Searching best talent and retaining them has emerged as a challenge. In the changing academic environment & technological changes, operational efficiency of teachers must cope with such changes, such as introduction of electronically operated equipments for schools such as OHP, LCD Projector Pre recorded video CDs etc. There is a need for training and refreshing knowledge for teachers also. Due to increased number of schools, large number of trained & skilled teachers is required. Placing people at appropriate place is also a difficult task. It needs proper planning at micro level and its successful implementation.

As already stated, the most important resource of an organization is its human resource, the people who supply the organization with their work, talent, creativity and skill. Thus human beings hold the key to organization performance. In view of this, most of the investigations in this area of management have repeatedly argued that unless people working in an organization are emotionally involved, the organization will not be in a position to effectively perform over a long period of time. This is true in case of all organization – manufacturing, service industry / education

There is potential to increase school-based management in India’s publicly funded secondary schools (both public and


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private), which can lead to (i) improved decision-making based on better information and (ii) increased community and parental involvement (which can increase accountability of decision makers). Finally, investments are urgently needed to improve basic information collection and analysis for secondary education, key for management at all levels.

The most important example of a centrally sponsored scheme is Sarva Shiksha Abhiyan (SSA). Secondary education does not have an equivalent scheme, although one is proposed for the XIth Plan, called SUCCESS.

The central government runs three chains of schools –Kendriya Vidyalayas (Central Schools) for children of Central government employees, Navodaya Vidyalayas (higher quality residential schools)for talented rural children, and the National Institute for Open Schooling

Whether partnership models are developed or not, the government has an important role to play in the regulation of the private sector, such that it serves the public good. To begin with, by ruling of the Supreme Court, all private schools in India must be non-profit in nature (although in practice this appears to be an unenforceable and widely ignored ruling).Secondly, only private schools which are “recognized” (i.e. certified by government) are able to issue officially recognized transcripts, exam scores and diplomas.

Recognition is a state-level matter (not central), subject to norms and regulations which are quite extensive, so much so that they appear to discourage the establishment, registration and recognition of private schools Several factors lead to a mismatch between the supply and demand of secondary school teachers: shortfalls in recruitment; inflexible norms for the deployment of teachers in government and aided schools; teachers’ reluctance to work in rural areas; and the politicization of teacher transfers. These features of the system already cause difficulties.

Within the broad guidelines set by states, teachers’ terms and conditions of service differ according to the type of school they work in. Different terms and conditions encourage different behavior and attract different types of people to the teaching profession, which has different policy implications. Teachers in government schools are civil servants. In addition to teaching, they are required to help organize elections, update electoral rolls, and conduct population and household censuses

Teachers in aided schools are entitled to the same salary scale and subject to similar terms and conditions of service as teachers in government schools, except in three respects. First, they are not civil servants, so they are not required to perform public duties and they can take secondary jobs. Second, because they are hired by the organization that manages the school, they cannot be transferred by the government across schools or across localities. Third, they

are not subject to a reservation system.

REASON FOR CHOICE OF THE STUDY

The proportion of unaided schools is getting increased as getting aid from government has become a difficult task. Appointing teachers by hook & crook is the main aim of management of such schools. Such schools are therefore avoiding of framing terms and conditions of service for their teachers. The teachers in such schools are suffering from their rights & benefits but cannot do anything.

To prepare a common manual of service conditions for such teachers was the prime intention of the Researcher. However the first step for this, is to study the present structure of service conditions. Hence this Research Study.

OBJECTIVES OF THE STUDYH. R. Practices play a crucial role in any organization. It is an integrated system approach to manpower planning. Availability of human resources may not be the problem but to get the required professionals is a Herculean task. The objectives of the study are as follows :

1. To assess the overall knowledge of the secondary school teachers regarding Human Resource Management in Pune City.

2. To assess the knowledge of the secondary school teachers working in schools adopting CBSE pattern regarding Human Resource management in Pune City.

3. To assess the knowledge of the secondary school teachers working in schools adopting State Board pattern regarding Human Resource management in Pune City.

4. To compare the knowledge of the secondary school teachers working in schools adopting State Board and CBSE pattern regarding Human Resource management in Pune City.

5. To associate the findings with selected demographic variables.

6. To study these focused objectives, the researcher reached to formulate following hypothesis guiding the direction of the study.

SCOPE OF THE STUDY: To give justice to the study and to get reliable information in the desired time-frame, the Researcher restricted his attention to the secondary school teachers, teaching in schools located in

Pune Municipal Corporation area only. Serious efforts were made to cover schools from various locations, having various types of management, with English and Marathi mediums of teaching and adopting various teaching patterns.


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METHODOLOGY:Primary sources of informationQuestionnaire : The structured questionnaire was prepared for assessing the knowledge regarding Human Resource management, for the secondary school teachers in Pune. The structured

questionnaire included two sections,

Section I covered items on demographic data such as age, sex, education, experience etc. Section II comprised of items to assess knowledge of teachers about various aspects of Human Resource Management. It comprises questions on following broad aspects • Recruitment • Working Hours • Salary & Increments and Provident Fund • Leaves • Schools Management • Attendance • Training • Administration and Infrastructure

Secondary DataThe secondary data obtained fromA) Books

B) Periodicals, journals and bulletinsC) Library literatureD) InternetE) Reports published in newspapersF) Data published by the government, World Bank, Reports

of National / International Commissions / Committees on Educational aspects, published material, Reports of various committees.

Sample SizeThe selection of schools is made on the basis of following criteria.

Researcher firstly prepared a database of schools falling within PMC area. By making various permutations and combinations, random sample from out of database was designed in such a manner that it will try to maintain similar percentage of various criteria, viz., medium of teaching, geographical location and examining body, to represent the population of secondary schools in Pune city area.

A sample of 30 schools from out of 306 schools, i.e about 10% was selected. From each of the schools, 20 teachers were selected. Thus, the study was carried out to cover 600 teachers which represent about 25% of population of teachers in Pune city as per data of Govt. of Maharashtra. (Pl. Refer Table Below)

Maharashtra Board C.B.S.E I.C.S.E TOTAL TOTALEnglish Marathi English English English Marathi

Central 3 5 1 - 4 5 9

North 1 1 1 - 2 1 3

South 1 3 - - 1 3 4

East 3 6 1 1 5 6 11

West 1 2 - - 1 2 3

Total 9 17 3 1 13 17 30

HYPOTHESISThe researcher confined himself to focus his attention to following hypothesis only.

1. The average knowledge of secondary school teachers of Pune city about the Human Resource Management is less than or equal to 50%.

2. The average knowledge of secondary school teachers of Pune city adopting CBSE pattern about the Human Resource Management is less than or equal to 50%. .

3. The average knowledge of secondary school teachers of Pune city adopting State Board pattern about the Human Resource Management is less than or equal to 50%.

4. There is no significant difference in the average knowledge of secondary school teachers working in schools in Pune City adopting State Board and CBSE pattern about Human Resource Management.

5. There is no association of average knowledge of secondary school teachers in Pune City regarding Human Resource management with demographic variables.

CLASSIFICATION OF DATACollected data is classified, coded and tabulated by using various statistical tools, charts, diagrams and graphs


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ANALYSIS OF DATA: Collected data was analyzed using Microsoft Excel software using percentages, averages , appropriate measures of Central Tendency & Dispersion and conclusions were drawn with the help of different statistical tools to arrive at inferences.

CHAPTERISATION:

Chapter – I HRM IntroductionIn India Human resources management has attained wider dimensions and immense importance in recent years. It represents a deviation from the existing philosophy, attitudes, approaches and methods. It is the management of human asset of an organisation. The actual job of every manager is activating, which is possible only by properly managing people. Hence, managing people is the most essential aspect of every manager’s job.

This chapter covered lot of aspects of HR such as : • Historical Background• Legal Background• Concept of HRM• Definition of HRM• Features of HRM• Importance of HRM• General structure of HR Department • Process of HRM• Challenges Before H.R.M. • New concepts in HRM• Human Resource Audit• HRM Audit• Characteristic features of Human resource Development• Scope of HRD • HRD Goals and Objectives • Role of Human Resource Development Manager• HR Planning

The chapter also covers in detail, the need of the Research and reasons to choose the said topic.

Chapter – II Developmental Role of HR in IndustriesThis chapter basically is devoted to enlighten the Status of HR Activities in Secondary Schools. The Report of the Education Commission (Kothari, 1964-66) which was titled as ‘Education and National Development’, set a number of goals to be pursued: “To bring about major improvement in the effectiveness of primary education; to introduce work experience as an integral element of general education; to vocationalise secondary education; to improve the quality of teachers at all levels and to provide teachers in sufficient strength; to liquidate illiteracy; to strengthen

centers of advanced study and strive to attain, in some of our universities at least, higher international standards; to lay special emphasis on the combination of teaching and research; and to pay particular attention to education and research in agriculture and allied sciences.” These assertions reiterated by the National Policy on Education – 1986 and the accompanying Programme of Action (modified further in 1992) have continued to guide all programmes in the education sector.

The three pillars of education are expansion, inclusion and excellence. A Vision is to realize India’s human resource potential to its fullest, with equity and excellence. The Mission of the two Departments within the Ministry of Human Resource Development, viz., the Department of School Education and Literacy and the Department of Higher Education are explained in this chapter. • Education: Vision and Goals• Education in a Changing Global Scenario• Current Policy Initiatives• Emerging Challenges and Future Directions• Human resource Management• Management of Secondary Schools• The Institutional Context of Secondary Education• School Management: Comparing Public, Private Aided

and Private Unaided schools

• Management Cost-Effectiveness• Teacher Recruitment Criteria and Methods• Qualifications of Private Aided and Unaided Teachers• Teacher Performance Appraisal and Incentives• School-Based Management and Decentralization• Options for Improving Management of Secondary

Schooling

The chapter also covers in detail following aspects:

Regulation of Private Schools and School-Based Management and Decentralization is also discussed in this chapter.

Chapter – III Review of LiteratureOne of the most important early steps in a research project is conducting of the literature review. A literature review is designed to identify related research, to set the current research project within a conceptual and theoretical context. Various National, International Journals, Articles and books were reviewed before starting the field work.

Researcher reviewed around 7 books, 166 articles published in Newspaper, periodicals and 12 Ph. D. Thesis of Research scholars.


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Chapter – IV Research DesignThe research design outlines the actual research problem on hand and details the process for solving it. In this chapter a research design will clearly describe the techniques to be used for selecting samples, collecting data, managing costs and other aspects that are essential for conducting research.

The study was conducted in secondary schools in Pune city. There are 306 secondary schools in Pune city under Pune

Municipal Jurisdiction. Researcher divided the Pune city in five regions viz. East, West, South, North and Central. A random method was used to select the 30 schools for the research. This was done to ensure that participating schools were sufficiently representative of each region, programme level (State Board, CBSE, ICSE) and language of instruction. The distribution of the schools in each of geographical area is outlined in Table 1.

Table 1. Regionwise Selection of the School

Table 2. Programme wise selection of schools

Table 3. Medium wise selection of school

Region Number of schools Percentage (%) Schools included in study Percentage %East 112 36.60 11 36.66

West 32 10.46 3 10.00

South 42 13.72 4 13.34

North 32 10.46 3 10.00

Central 88 28.75 9 30.00

Total 306 100 30 100

Programme Number of schools Percentage (%) Schools included in

study

Percentage %

State Board 263 86 26 86.6

CBSE 34 11 3 10

ICSE 9 3 1 3.4

Total 306 100 30 100

Medium of Instruction Number of schools Percentage (%) Schools included in

study

Percentage (%)

English 129 42 13 43.33

Marathi 177 58 17 56.67

Total 306 100 30 100

Researcher has given due justice to all five regions. 20 teachers from each school were selected in the study by simple random method. While selecting the schools researcher ensured that equal percentage was maintained between English and Marathi medium schools. (Table 3) The state board schools, CBSE schools and ICSE schools were also given equal representation. (Table 2). Total 600 teachers across the city from 30 schools (on an average 20 teachers from each school by simple random method) were included in the study.

Chapter – V Survey FindingsResponses received through questionnaires were checked, collated and after compilation were entered into personal computer for further processing. The processed data was then analysed statistically to check for meaningful outcomes.

Major outcomes are summarized below:

Demography of respondents:

• Dominance of female teachers about 74%.• Average age of teachers is about 36 years.• Around 87% teachers are married.• 45% teachers have PG qualification, 47% teachers are

graduate.

• About 75 % teachers have acquired Professional Qualification in Teaching.

• Over 38% teachers have experience for more than 10 years and 6 % teachers have more than 20 years.

• Average Salary is about Rs. 21,800/- per month.


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HRM KNOWLEDGE• About 89 % teachers are full time regular teachers.• About 72% of teachers are appointed through Regular

Advertisements.• According to 66% teachers their school is governed by

their School’s own management policy.• 68 % teachers work for 6-8 hours per day.• Probation period of ‘one academic year’ is reported by

41.2% of teachers, • Salary of 94 % teachers is credited to individual’s bank

account.

• Salary of about 50 % teachers is paid on 10th day every month.

• Salary of vacations is not paid for about 13% teachers.• About 70 % teachers receive their salary as per 6th Pay

Commission.• 46.5 % teachers get their Annual Increment after one

year.

• Deduction of PF from salary is made in case of 58% teachers only.

• Only 58% teachers know that they have been covered under GIC.

• According to 92% teachers programmes of academic interest are carried.

• 24% teachers received a pat on their back towards their ‘appreciation.

• ‘Signing attendance register’ is still in practice as per 90.5% of teachers.

• Both arrival & departure timings are noted… say about 93% teachers.

• 24.67% of teachers are motivated for higher education/further studies.

• Special Training programmes are conducted …say 46% teachers.

• About 45% teachers use their two-wheeler to attend school.

• Only 1% teachers keep their kids in their school crèche.

• Less than 2% teachers have access for Common Personal Computer.

• About 74% teachers have Dress Codes in their schools.• Subject of teaching is based as per qualification …70%

teachers

• In case of 54% teachers Class / Standard of teaching is changed in next Academic year.

• According to 75.9% teachers, workshops and / or conferences are arranged in their schools.

• 84.5% teachers agree that their schools have adopted Performance Based Self Appraisal’ system.

• LCD projector is used as a teaching aid by less than 11% teachers.

• Service Book is maintained in case of about 95% of teachers.

• 66% teachers have their age of retirement is 58 years.• HR policy of the school is Good or above good is opinion

of 63% teachers.• The consolidated results about score of teachers

indicating average HR knowledge is given in the table below:

All Teachers State Board CBSE ICSENo. of Teachers 600 518 60 22

Mean 74.64 74.76 71.77 79.54

Median 75 75 75 81.25

Mode 81.25 81.25 62.5 81.25

Standard Deviation 14.193 13.878 18.248 4.39

Range 87.5 87.5 81.25 12.5

Minimum 12.5 12.5 12.5 75

Maximum 100 100 93.75 87.5

CHAPTER – VI STATISTICAL ANALYSIS This method is also used to analyse data and draw conclusion. ( known as Analytical Statistics ) There exist two separate techniques of analysis. One is called as Analytical technique in which averages, variability, correlation, regression, trends, rates and ratios etc. are used. The other side uses probability concepts in which estimation, testing of Hypothesis and

deterministic and stochastic models etc. are involved. Researcher tested his all hypotheses in this chapter and their

results are as given below:

Hypothesis #1: The average knowledge of secondary school teachers of Pune city about the Human Resource Management is ≤ 50%.


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Based on the Z-statistic test the hypothesis is rejected, resulting that the average knowledge of secondary school teachers of Pune city about the Human Resource Management is > 50%.

Hypothesis #2 : The average knowledge of secondary school teachers of Pune city adopting CBSE pattern about the Human Resource Management is ≤ 50%.

Based on the Z-statistic test the hypothesis is rejected, resulting that the average knowledge of secondary school teachers of Pune city adopting CBSE pattern about the Human Resource Management is > 50%.

Hypothesis #3: The average knowledge of secondary school teachers of Pune city adopting Maharashtra State Board pattern about the Human Resource Management is ≤ 50%.

Based on the Z-statistic test the hypothesis is rejected, resulting that the average knowledge of secondary school

teachers of Pune city adopting Maharashtra State Board pattern about the Human Resource Management is > 50%.

Hypothesis -#4 : There is no significant difference in the average knowledge of the secondary school teachers working in schools in Pune City adopting State Board pattern and CBSE pattern regarding Human Resource management

Based on the paired t-test the hypothesis is accepted resulting that there is no significant difference in the average knowledge of the secondary school teachers working in schools in Pune City adopting State Board pattern and CBSE pattern regarding Human Resource management.

Hypothesis– # 5: There is no association of average knowledge of secondary school teachers in Pune City regarding Human Resource management with demographic variables.

For this purpose the Researcher used Chi-Square test and following results were seen,:

S.N. Knowledge combined with Result

1 Age Associated

2 Sex Not Associated

3 Educational Qualifications Not Associated

4 Experience Associated

5 Examining Body Not Associated

6 Teachers’ Training Not Associated

Chapter – VII Conclusions & Recommendations Conclusions are drawn to fulfill objectives and test the hypothesis. Conclusions are inferences drawn from the

findings. Major conclusions based on the survey findings are compiled in this chapter and some recommendations are made by the Researcher.


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SBPIM JOMAT (GUIDELINES FOR CONTRIBUTORS)

SBPIM JOMAT is a bi-annual journal brought out by the S.B.Patil Institute of Management, Pune, JOMAT aims to take on the practices, concepts, and ideas in the field of management and administration, with a prominence to provide managerial and administration insight, which tomorrow become a part of business functions.

SBPIM JOMAT invites manuscripts from management practitioners, researchers and academicians in any managerial and administrative function of the business. Our emphasis is on papers that focus on emerging economies and business throughout the world. These papers improves the thought process and the novel analysis which provides guidance to the managers and contribute to make a better tomorrow.

A Full length manuscript (up to 5,000 words) on all the functions, policy framing, decision making form the journal. At present we are focusing on the research papers, articles and cases.

SBPIM JOMAT is a peer reviewed journal and follow a ‘double blind’ review process. All the articles, papers are initially screened by editorial committee and those appropriate articles, papers, etc. are sent to the reviewer.

SUBMISSION OF ARTICLES:

The authors may send their manuscript on [email protected], [email protected] The whole manuscript is required to be in ONE MS WORD FILE only.

COVER PAGE: The cover page of the manuscript containing the title, AUTHOR NAME (S) & AFFILIATIONS: The author (s) full name, designation, affiliation (s), address, mobile/landline numbers, and email/alternate email address should be in italic & 11-point Calibri Font. It must be centered underneath the title.

ABSTRACT: Abstract should be in fully italicized text, not exceeding 250 words. The abstract must be informative and explain the background, aims, methods, results & conclusion in a single para. Abbreviations must be mentioned in full.

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MANUSCRIPT: Manuscript must be prepared on a standard A4 size PORTRAIT SETTING PAPER. It must be prepared on a single space and double column with 1” margin set for top, bottom, left and right. It should be typed in 10 point Calibri Font with page numbers at the bottom and centre of every page. It should be free from grammatical, spelling and punctuation errors and must be thoroughly edited.

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MAIN TEXT: The main text should be in a 10 point Calibri Font, single spaced and justified. The manuscript should preferably not exceed 5000 WORDS.

FIGURES &TABLES: These should be simple, centered, separately numbered & self explained, and titles must be above the table/figure. Sources of data should be mentioned below the table/figure. It should be ensured that the tables/figures are referred to the main text.

REFERENCES: The authors (s) are supposed to follow the references as per the following:

1.All works cited in the text (including sources for tables and figures) should be listed alphabetically as appropriate- the name of author(s), year of publication, title of the article/book, name of the journal, details of the publisher, volume and issue number, and starting and ending page numbers.

2.URL of online sources with access date.

SAMPLE JOURNAL REFERENCES:

Krishnaswamy S.G., (2006), Sugar Factory Efficiency Measurement; Application of Data Envelopment Analysis – A New insight for managers’ paradigm, The research journal of Institute for Management and Technology, Vol. X No.2, July- December, PP. 79-82

SAMPLE BOOK REFERENCES

Chandra Prasanna, (2008), Financial Management Theory and Practice, 7th Edition, Tata McGraw-Hill Publishing Company Limited, New Delhi.

COPYRIGHT: The author (s) must transfer the authority and copyright to the publisher if the manuscript accepted for publication and certify that all the material used directly or indirectly must met the copyright requirement.

No part of the material published in SBPIM JOMAT should be reproduced, photocopied or stored in electronic format and used for commercial purpose. For reprint and permission to use material please send the request to editor SBPIM JOMAT or call (+91) 020 27656900 or e-mail [email protected], [email protected]

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