PragyaanPragyaan: Journal of Management

a bi-annual refereed Journal

Volume 11: Issue 1, June 2013

ISSN : 0974-5505

Listed in Ulrich’s International Periodicals Directory, USA

Research Papers/Articles

1. Dimensions Affecting Leadership Styles in LIC

2. Issues and Challenges in Managing Generation Y Employees

3. Customer's Perception of ICT Based Services of State Bank of India

4. Reorganization at the National Experimental Research Institute, Bizzareland: A Case Study

5. Effect of ISO9000 and TSI 6949 Quality Management Systems on Firms Performance: A Comparative Study

H. Hema Lakshmi, Dr. S. Chand Basha

Dr. P. Adi Lakshmi, Dr. Rajesh C. Jampala, Srinivasa Rao Dokk

Vivek Kumar Pathak, Dr. Vishal Shukla, Dr. Mitushi Singh

Arvind Sudarsan

Parashuram Dangwal, Dr. D.S. Chaubey

Copyright @ 2013 IMS Unison University, Dehradun.

All rights reserved.

No part of this publication may be reproduced or transmitted in any form or by any means, or stored in any retrieval system of any nature without prior permission. Application for permission for other use of copyright material including permission to reproduce extracts in other published works shall be made to publishers. Full acknowledgement of author, publishers and source must be given.

The Editorial Board invites original, unpublished contributions in the form of articles, case studies, research papers, book reviews.

The views expressed in the articles are those of the contributors and not necessarily of the Editorial Board or the Institute.

Although every care has been taken to avoid errors or omissions, this publication is being sold on the condition and understanding that information given in this journal is merely for reference and must not be taken as having authority of or binding in any way on the authors, editors, publishers and sellers who do not owe any responsibility for any damage or loss to any person, a purchaser of this publication or not, for the result of any action taken on the basis of this work. All disputes are subject to Dehradun jurisdiction only.

Members of Editorial Advisory Board: Professor Arun P. Sinha Department of Industrial & Management EngineeringProfessor Pulin B. Nayak IIT, KanpurDelhi school of EconomicsDelhi Professor Narendra K Sharma

Head, Department of Industrial & Management Professor T.J. Kamlanabhan EngineeringDMS IIT, Madras IIT, Kanpur

Professor P.K. Chaubey Dr. S.P. KalaIndian Institute of Public Administration Professor (Retd.), HNB Garhwal university, SrinagarNew Delhi

Professor V. NangiaProfessor M. Akbar Department of Management StudiesIIM, Lucknow IIT, Kanpur

Professor D.L. Sunder Professor D.P. GoyalIIM, Indore Chairperson, Computer Centre

MDI, GurgaonProfessor Vipin GuptaRos Jaffe Chair Professor of Strategy Professor Bhagwati PrasadSimmons School of Management, Former Director, KIMS,Simmons College, Boston, USA Dharwad

Pragyaan: Journal of Management

Volume 11: Issue 1, June 2013

Patron: Prof. (Dr.) M.P. Jain Pro Chancellor and Vice Chancellor IMS Unison University, Dehradun

Chief Editor: Prof. (Dr.) Pawan K. Aggarwal Associate Pro Vice Chancellor and Dean Academics

IMS Unison University, Dehradun

Editor: Dr. Brijendra Singh Yadav Associate Professor

School of Management IMS Unison University, Dehradun

Professor-in-charge Dr. A.S.PandeyResearch Publications: Professor, IMS Unison University, Dehradun

Copyright @ 2013 IMS Unison University, Dehradun.

All rights reserved.

No part of this publication may be reproduced or transmitted in any form or by any means, or stored in any retrieval system of any nature without prior permission. Application for permission for other use of copyright material including permission to reproduce extracts in other published works shall be made to publishers. Full acknowledgement of author, publishers and source must be given.

The Editorial Board invites original, unpublished contributions in the form of articles, case studies, research papers, book reviews.

The views expressed in the articles are those of the contributors and not necessarily of the Editorial Board or the Institute.

Although every care has been taken to avoid errors or omissions, this publication is being sold on the condition and understanding that information given in this journal is merely for reference and must not be taken as having authority of or binding in any way on the authors, editors, publishers and sellers who do not owe any responsibility for any damage or loss to any person, a purchaser of this publication or not, for the result of any action taken on the basis of this work. All disputes are subject to Dehradun jurisdiction only.

Members of Editorial Advisory Board: Professor Arun P. Sinha Department of Industrial & Management EngineeringProfessor Pulin B. Nayak IIT, KanpurDelhi school of EconomicsDelhi Professor Narendra K Sharma

Head, Department of Industrial & Management Professor T.J. Kamlanabhan EngineeringDMS IIT, Madras IIT, Kanpur

Professor P.K. Chaubey Dr. S.P. KalaIndian Institute of Public Administration Professor (Retd.), HNB Garhwal university, SrinagarNew Delhi

Professor V. NangiaProfessor M. Akbar Department of Management StudiesIIM, Lucknow IIT, Kanpur

Professor D.L. Sunder Professor D.P. GoyalIIM, Indore Chairperson, Computer Centre

MDI, GurgaonProfessor Vipin GuptaRos Jaffe Chair Professor of Strategy Professor Bhagwati PrasadSimmons School of Management, Former Director, KIMS,Simmons College, Boston, USA Dharwad

Pragyaan: Journal of Management

Volume 11: Issue 1, June 2013

Patron: Prof. (Dr.) M.P. Jain Pro Chancellor and Vice Chancellor IMS Unison University, Dehradun

Chief Editor: Prof. (Dr.) Pawan K. Aggarwal Associate Pro Vice Chancellor and Dean Academics

IMS Unison University, Dehradun

Editor: Dr. Brijendra Singh Yadav Associate Professor

School of Management IMS Unison University, Dehradun

Professor-in-charge Dr. A.S.PandeyResearch Publications: Professor, IMS Unison University, Dehradun

Prof. R.C. MishraPanel of RefereesDirector, IPSDR Kumaun UniversityProf Rudra Prakash Pradhan NainitalVinod Gupta School of Management, IIT, Kharagpur-721302Prof Zillur RahmanDepartment of Management Studies,Prof. Himanshu RaiIndian Institute of Technology, RoorkeeIndian Institute of ManagementNH 58, Roorkee, UttarakhandPrabandh Nagar, Off Sitapur Road,India - 247667Lucknow - 226 013.

Prof Sheeba KapilProf, GeetikaIndian Institute of Foreign Trade,School of Management StudiesIIFT BhawanMotilal Nehru National Institute of Technology,B-21, Qutab Institutional AreaAllahabad- 211004New Delhi 110 016

Prof Susmita MukhopadhyayProf. Ram SinghVinod Gupta School of Management,Indian Institute of Foreign Trade,IIT, Kharagpur-721302IIFT BhawanB-21, Qutab Institutional AreaProf. R K PandeyNew Delhi 110 016FMS, Banaras Hindu University,

Varanasi-221005Prof V P S AroraCollege of Agribusiness ManagementProf Sita MishraG B Pant University of Agriculture and Technology, Institute of Management technology, Pantnagar.Raj NagarPantnagar - 263145Post Box No. 137Dist. Udham Singh Nagar, Ghaziabad 201001, IndiaUttarakhand (India)

Prof V. NangiaIndian Institute of Technology RoorkeeNH 58, Roorkee, UttarakhandIndia - 247667

From the Chief Editor

We draw immense pleasure in presenting June 2013 issue of our research journal- Pragyaan: Journal of

Management. It continues to gain appreciation and accolades as it provides a platform that stimulates and

guides the intellectual quest of Management scholars. Pragyaan: JOM is a blind refereed bi-annual journal

that brings to its readers high quality research in Management that should help to address the challenges of the

21st century.

The Journal strives to seek ways to harness the power of technology to meet some of real world challenges, and

to provide substance for making informed judgements on important matters. We welcome contributions that

can demonstrate near term practical usefulness, particularly contributions that take a multi disciplinary

convergent approach as many real world problems are complex in nature.

The academically peer refereed Pragyaan: JOM encourages authors to develop and publish quality papers

that address various facets of Management in a balanced manner. Selecting quality papers for publication in

our Journal is indeed a tough task. We thank our Panel of referees for the time and thought invested by them

into the papers for giving us sufficient insights to ensure the quality of papers published in Pragyaan: JOM.

Thanks are also due to the members of our Editorial Board and the Management for their constant guidance

and support.

Our team of professionals comprising of Dr. A.S.Pandey (Professor-in-charge, Research Publications), and

Dr. Brijendra Singh Yadav (Editor Pragyaan: JOM) has made a significant contribution towards making the

research papers error free, presentable, and reader friendly. The contribution of our team members is highly

appreciated.

We would like to express gratitude to our esteemed authors, editors and reviewers all of whom have

volunteered to contribute to the success of the Journal. We do our best to oversee a review and decision

making process in which we invite appropriate individuals to review each paper and encourage them to

provide timely, thoughtful, constructive, and diplomatic critiques. We work towards integrating reviewers'

feedback along with our own insights into the final decision and craft fair and balanced action that

acknowledges the strengths of the manuscript, addresses areas of improvement, and clearly conveys the

editorial board decision and its rationale.

We wish to encourage contributors from the scholars, scientific community and industry practitioners to ensure

a continued success to the journal.

We hope our readers find Pragyaan: Journal of Management, informative and stimulating. We have tried our

best to put together all the research papers/articles, coherently. Suggestions from our valued readers for

adding further value to our Journal are however, solicited.

Dr.) Pawan K AggarwalAssociate Pro Vice Chancellor and Dean AcademicsIMS Unison University, Dehradun

Prof. (

Prof. R.C. MishraPanel of RefereesDirector, IPSDR Kumaun UniversityProf Rudra Prakash Pradhan NainitalVinod Gupta School of Management, IIT, Kharagpur-721302Prof Zillur RahmanDepartment of Management Studies,Prof. Himanshu RaiIndian Institute of Technology, RoorkeeIndian Institute of ManagementNH 58, Roorkee, UttarakhandPrabandh Nagar, Off Sitapur Road,India - 247667Lucknow - 226 013.

Prof Sheeba KapilProf, GeetikaIndian Institute of Foreign Trade,School of Management StudiesIIFT BhawanMotilal Nehru National Institute of Technology,B-21, Qutab Institutional AreaAllahabad- 211004New Delhi 110 016

Prof Susmita MukhopadhyayProf. Ram SinghVinod Gupta School of Management,Indian Institute of Foreign Trade,IIT, Kharagpur-721302IIFT BhawanB-21, Qutab Institutional AreaProf. R K PandeyNew Delhi 110 016FMS, Banaras Hindu University,

Varanasi-221005Prof V P S AroraCollege of Agribusiness ManagementProf Sita MishraG B Pant University of Agriculture and Technology, Institute of Management technology, Pantnagar.Raj NagarPantnagar - 263145Post Box No. 137Dist. Udham Singh Nagar, Ghaziabad 201001, IndiaUttarakhand (India)

Prof V. NangiaIndian Institute of Technology RoorkeeNH 58, Roorkee, UttarakhandIndia - 247667

From the Chief Editor

We draw immense pleasure in presenting June 2013 issue of our research journal- Pragyaan: Journal of

Management. It continues to gain appreciation and accolades as it provides a platform that stimulates and

guides the intellectual quest of Management scholars. Pragyaan: JOM is a blind refereed bi-annual journal

that brings to its readers high quality research in Management that should help to address the challenges of the

21st century.

The Journal strives to seek ways to harness the power of technology to meet some of real world challenges, and

to provide substance for making informed judgements on important matters. We welcome contributions that

can demonstrate near term practical usefulness, particularly contributions that take a multi disciplinary

convergent approach as many real world problems are complex in nature.

The academically peer refereed Pragyaan: JOM encourages authors to develop and publish quality papers

that address various facets of Management in a balanced manner. Selecting quality papers for publication in

our Journal is indeed a tough task. We thank our Panel of referees for the time and thought invested by them

into the papers for giving us sufficient insights to ensure the quality of papers published in Pragyaan: JOM.

Thanks are also due to the members of our Editorial Board and the Management for their constant guidance

and support.

Our team of professionals comprising of Dr. A.S.Pandey (Professor-in-charge, Research Publications), and

Dr. Brijendra Singh Yadav (Editor Pragyaan: JOM) has made a significant contribution towards making the

research papers error free, presentable, and reader friendly. The contribution of our team members is highly

appreciated.

We would like to express gratitude to our esteemed authors, editors and reviewers all of whom have

volunteered to contribute to the success of the Journal. We do our best to oversee a review and decision

making process in which we invite appropriate individuals to review each paper and encourage them to

provide timely, thoughtful, constructive, and diplomatic critiques. We work towards integrating reviewers'

feedback along with our own insights into the final decision and craft fair and balanced action that

acknowledges the strengths of the manuscript, addresses areas of improvement, and clearly conveys the

editorial board decision and its rationale.

We wish to encourage contributors from the scholars, scientific community and industry practitioners to ensure

a continued success to the journal.

We hope our readers find Pragyaan: Journal of Management, informative and stimulating. We have tried our

best to put together all the research papers/articles, coherently. Suggestions from our valued readers for

adding further value to our Journal are however, solicited.

Dr.) Pawan K AggarwalAssociate Pro Vice Chancellor and Dean AcademicsIMS Unison University, Dehradun

Prof. (

Pragyaan: Journal of Management

Volume 11: Issue 2, December 2012

CONTENTS

Research Papers/Articles

1. Dimensions Affecting Leadership Styles in LIC................................................................. 1-7

2. Issues and Challenges in Managing Generation Y Employees .......................................8-17

3. Customer's Perception of ICT Based Services of State Bank of India .............................18-22

4. Reorganization at the National Experimental Research Institute, Bizzareland: A Case Study...........................................................................................23-25

5. Effect of ISO9000 and TSI 6949 Quality Management Systems on Firms Performance: A Comparative Study ...................................................................26-33

H. Hema Lakshmi, Dr. S. Chand Basha

Dr. P. Adi Lakshmi, Dr. Rajesh C. Jampala, Srinivasa Rao Dokk

Vivek Kumar Pathak, Dr. Vishal Shukla, Dr. Mitushi Singh

Arvind Sudarsan

Parashuram Dangwal, Dr. D. S. Chaubey

ABSTRACT

Leadership is essentially the core and spirit of an organization. The people in- charge, not only manage

the organization's affairs but also deal with the employees face to face. The way in which successful

leaders apply leadership practices is influenced by various factors, like their judgments about the working

conditions, scope of learning in the organization, the confidence and experience of their staff; and the

behavior and aspirations of the employees. The research paper has considered the social dimensions

covering working conditions, team work, employee feedback, security, trust, dignity, respect, and

discipline; economic dimensions covering pay hikes, benefit packages, future advancements,

promotions and welfare; and organizational dimensions covering harassments, adequacy of

equipment, physical working conditions, work load, commitment etc., affecting leadership styles in LIC.

Among the different districts of Andhra Pradesh, the Coastal Districts of Guntur, Krishna, Nellore and

Prakasam have been purposively selected for the study. The tools used for the analysis are confirmatory

factor analysis, and convergent and discriminant validity. The leadership styles are measured on the five

point rating scale ranging from almost always true to almost never true.

Keywords: Economic dimension, Leadership, Organizational, Social, Team work.

1. Introduction

The Behavior of human beings, particularly of leaders, affects not only the behavior and performance of others but also of organizations. The behavior of leaders is closely related to their perceptions and attitudes relating to their objectives, roles and functions. The performance of the leaders is the outcome of the approaches they adopt in their jobs which might have been influenced by their own perceptions about their own leaders. The nature of a person, without any exception to a leader, is to emulate and imitate his/her own ideal personality. The organizational effectiveness depends upon the leadership effectiveness. Leadership effectiveness changes with the social, economic and organizational variables.

Besides these variables, the leadership styles influence followers and their performance results in overall efficiency of the people and effectiveness of the organization. The way in which successful leaders apply leadership quality practices is influenced by a number of factors, including their judgments about the working conditions and scope

of learning in the organizations, the confidence and experience of their staff; and the behavior and aspirations of the employees. There is a strong association between leadership practices and performance of the employees in the organizations. The successful leadership practices improve employee's outcomes through their values, virtues, dispositions, attributes and competence as well as what they do in terms of the strategies they select and the ways in which they adopt their leadership practices to their unique context in order to achieve an excellent performance.

2. Significance of the Study

All over the world, organizations are facing stiff competition. Many dramatic changes like changes in education, communication, motivation, etc have occurred in the society in the last fifteen years. These are still changing on account of globalization, liberalization and privatization. In the global era, since there is lot of awareness among the people and employees. In this scenario, the importance of leadership lies in motivating,

Dimensions Affecting Leadership Styles in LIC

"Pragyaan: Journal of Management" Volume 11: Issue 1, June 2013 1

* Assistant Professor,Department of Business Administration, St. Ann's College of Engineering and Technololgy, Nayunipalli, Vetapalem (M),Chirala**Head, Department of Business Administration, St. Ann's College of Engineering and Technololgy, Nayunipalli, Vetapalem (M),Chirala

H. Hema Lakshmi* Dr. S. Chand Basha**

Pragyaan: Journal of Management

Volume 11: Issue 2, December 2012

CONTENTS

Research Papers/Articles

1. Dimensions Affecting Leadership Styles in LIC................................................................. 1-7

2. Issues and Challenges in Managing Generation Y Employees .......................................8-17

3. Customer's Perception of ICT Based Services of State Bank of India .............................18-22

4. Reorganization at the National Experimental Research Institute, Bizzareland: A Case Study...........................................................................................23-25

5. Effect of ISO9000 and TSI 6949 Quality Management Systems on Firms Performance: A Comparative Study ...................................................................26-33

H. Hema Lakshmi, Dr. S. Chand Basha

Dr. P. Adi Lakshmi, Dr. Rajesh C. Jampala, Srinivasa Rao Dokk

Vivek Kumar Pathak, Dr. Vishal Shukla, Dr. Mitushi Singh

Arvind Sudarsan

Parashuram Dangwal, Dr. D. S. Chaubey

ABSTRACT

Leadership is essentially the core and spirit of an organization. The people in- charge, not only manage

the organization's affairs but also deal with the employees face to face. The way in which successful

leaders apply leadership practices is influenced by various factors, like their judgments about the working

conditions, scope of learning in the organization, the confidence and experience of their staff; and the

behavior and aspirations of the employees. The research paper has considered the social dimensions

covering working conditions, team work, employee feedback, security, trust, dignity, respect, and

discipline; economic dimensions covering pay hikes, benefit packages, future advancements,

promotions and welfare; and organizational dimensions covering harassments, adequacy of

equipment, physical working conditions, work load, commitment etc., affecting leadership styles in LIC.

Among the different districts of Andhra Pradesh, the Coastal Districts of Guntur, Krishna, Nellore and

Prakasam have been purposively selected for the study. The tools used for the analysis are confirmatory

factor analysis, and convergent and discriminant validity. The leadership styles are measured on the five

point rating scale ranging from almost always true to almost never true.

Keywords: Economic dimension, Leadership, Organizational, Social, Team work.

1. Introduction

The Behavior of human beings, particularly of leaders, affects not only the behavior and performance of others but also of organizations. The behavior of leaders is closely related to their perceptions and attitudes relating to their objectives, roles and functions. The performance of the leaders is the outcome of the approaches they adopt in their jobs which might have been influenced by their own perceptions about their own leaders. The nature of a person, without any exception to a leader, is to emulate and imitate his/her own ideal personality. The organizational effectiveness depends upon the leadership effectiveness. Leadership effectiveness changes with the social, economic and organizational variables.

Besides these variables, the leadership styles influence followers and their performance results in overall efficiency of the people and effectiveness of the organization. The way in which successful leaders apply leadership quality practices is influenced by a number of factors, including their judgments about the working conditions and scope

of learning in the organizations, the confidence and experience of their staff; and the behavior and aspirations of the employees. There is a strong association between leadership practices and performance of the employees in the organizations. The successful leadership practices improve employee's outcomes through their values, virtues, dispositions, attributes and competence as well as what they do in terms of the strategies they select and the ways in which they adopt their leadership practices to their unique context in order to achieve an excellent performance.

2. Significance of the Study

All over the world, organizations are facing stiff competition. Many dramatic changes like changes in education, communication, motivation, etc have occurred in the society in the last fifteen years. These are still changing on account of globalization, liberalization and privatization. In the global era, since there is lot of awareness among the people and employees. In this scenario, the importance of leadership lies in motivating,

Dimensions Affecting Leadership Styles in LIC

"Pragyaan: Journal of Management" Volume 11: Issue 1, June 2013 1

* Assistant Professor,Department of Business Administration, St. Ann's College of Engineering and Technololgy, Nayunipalli, Vetapalem (M),Chirala**Head, Department of Business Administration, St. Ann's College of Engineering and Technololgy, Nayunipalli, Vetapalem (M),Chirala

H. Hema Lakshmi* Dr. S. Chand Basha**

2

nurturing and influencing the employees for enhancing productivity and developing quick delivery system to meet the consumer needs and wants.

Now, all the organizations have recognized the vital role played by the leaders, and not necessarily by the managers. At present, the success and failure of organizations is attributed to the effectiveness of leaders in the organizational setting.

Attracting effective leaders and practicing effective leadership qualities for sustainable improvement of working environments are currently engaging the minds of businesses around the world. The role of the leaders has become more complex. Finding enough people willing to lead working and learning, organize maintenance of infrastructure facilities, balance budgets, develop and maintain effective relationships, deal with disciplinary issues, meet accountability requirements and maintain a family and personal life may be one of the most critical issues for most of the employees in both public and private sector organizations.

With the above background, the present study is being carried out to analyze the relationship of leadership styles with socio-economic and organizational dimensions, which includes working conditions, job security, levels of trust, team work, feedback on performance, handling of employee grievances, fair treatment in promotions and pay hikes, career development and delegation of authority etc.

Life Insurance Corporation (LIC) of India is one among the successful public sector organizations in India with 80% market share in life insurance sector. On January 1956, in keeping with the then prevailing political and economic philosophy of socialism, 245 Indian and foreign insurers and provident societies operating in India were taken over by the Central Government by an Act of parliament. Today LIC functions with 2048 fully computerized branch offices, 109 divisional offices, 8 zonal offices, 992 satellite offices and the corporate office.

3. Review of Literature

Amin (1963) reported that qualities perceived in successful leaders were: technical knowledge and ability to co-ordinate supply of materials, good behaviour, politeness and straightforward and persuasive approach. They were not expected to pass on duties to workers under them but were expected to give freedom to workers in their work.

Stogdill (1965) carried out a study of 27 organizations and found that leader structure is related to follower satisfaction with organization, while consideration is associated with satisfaction and freedom of action.

In a survey conducted by Punekar and Savur (1969) of the relations between white-collar employees and their supervisors in 11 different organizations such as banks, insurance companies, manufacturing firms, government offices, a state-owned public utility company and an educational institution, it was found that only three supervisors and only six workers thought that giving responsibility to the white-collar employees is the best way to get the work done. Most supervisors (70%) expressed the belief that subordinates can only work with supervision and have no sense of responsibility.

R. Rangaswamy and Helmick (1976) in their study of leadership behaviour of 56 top level managers have found that Indian managers are more employee-oriented as compared to their American counterpart. This is due to the Indian culture and religious pattern which influence helpfulness and peaceful co-operation.

The study by Joseph and Kasavan (1977) of 45 supervisors from public sector and 38 from private sector shows that in a private sector the emphasis is on production which is meaningful since total wages are tied up with the quantity produced, whereas in public sector, superior orientation is prevalent which can be explained by the fact that superiors are given full authority in recommending their subordinates for promotion and increase in pay.

Kalra (1980) has studied the pattern of styles of 70 managers and has found that most of the managers have their leadership behaviour guided by the situation in their organizations.

Chen and Spector (1991) found that the quality of the leader-employee relationship has profound influence on the employee's self-esteem and leadership styles.

Keashly et. al., (1994) found that negative leader-employee relations affect the leadership styles and productivity and increases absenteeism.

Dawes (1996) found that political consensus, moral codes, competent leadership and the ability to instill trust were affecting the leadership styles. Leaders also played an essential role in ensuring political or top executive support, building and maintaining many kinds of simultaneous relationships and encouraging learning and adaptation. Further, their communication skills, resourcefulness, and boundary spanning abilities all affected leadership styles.

Santiago (1999) found that race, gender, age, educational level, institutional size, career expectations, security level, knowledge, attitude, behavior and experience were influencing the leadership styles.

Lussier (2000) found that five factors: (a) assurgency, (b) agreeableness, (c) adjustment, (d) conscientiousness, and (e) openness to experience significantly influence the leadership styles and functioning of leaders.

"Pragyaan: Journal of Management" Volume 11: Issue 1, June 2013 "Pragyaan: Journal of Management" Volume 11: Issue 1, June 2013 3

Tirmizi (2002) found that a manager's personality had a significant influence on the way he/she thinks, feels and relates other people. Personality traits tend to be pretty stable in adulthood and led people to act in certain preferred ways. At work, the manager's personality, sometimes helps subordinates to execute work roles effectively and at other times get in the way. Individuals with extravert traits found it easier to lead meetings, confront presentations and lead a change. By contrast, people with low scores on the agreeableness scale may take adequate time to acquire skills in areas like team building, coaching and mentoring because they are self-sufficient and self-absorbed.

Doh (2003) presented an overview of the key arguments with respect to leadership development, inclusive of the key nature versus nurture argument in leadership. This argument considered whether leaders were born with the aptitude and attitude for leadership or whether leaders could be made, that is requisite leadership skills and attitudes can be developed in the individual.

Elmuti (2004) suggested that management education should adopt soft skills development in intra-personal and interpersonal skills to complement traditional hard skills development in business analysis to better respond to rapid technological change and impact of globalization.

Allio (2005) stated that leadership cannot be taught but can be learned. He saw leadership programs as capable of building skills and a knowledge base of concepts and approaches, but fail to develop leadership practice.

Broome and Hughes (2006) found that commitment, long term relationship, practical knowledge, experience, providing information to employees, popularity, innovative approach and charisma had significant influence on the leadership styles.

Bono, et. al., (2007) found that a leader's emotional intelligence, employees' emotions, working attitude and political skill affect the leadership styles. Emotional intelligence, however, was a multifaceted construct that comprised several different abilities and skills.

Albulushi and Hussain (2008) highlighted that when transformational leadership was practiced, team members believed that their leaders cared for them rather than using them as a means to an end. It also revealed that transformational leaders who encouraged their followers to think critically and creativity can have an influence on their followers' commitment and leadership styles.

Woodbine and Liu (2010) concluded that moral behavior, motivation, achievement oriented approach, experience, knowledge, directive and participative approach, supportive in nature, and situational factors influence the leadership styles.

From the above review, it is observed that leadership styles are affected by various factors like leader's personal traits, situational variables and organizational variables. For the present study relating to LIC, the researcher has taken the organizational variables including the social factors, economic factors and organizational factors of LIC.

4. Objectives of the Study

To analyse the relationship of leadership styles with social, economic and organizational dimensions of employees of LIC.

Hypothesis

There is no significant relationship of leadership styles with social, economic and organizational dimensions of employees of LIC.

5. Methodology

The primary and secondary data are collected from LIC and its employees, covering the districts of Coastal areas in Andhra Pradesh. LIC is purposively selected for the study due to familiarity of the researcher. The leadership styles are measured in the five point scale ranging from almost always true to almost never true.

For this study, 300 employees of LIC out of total of 2300 employees in Andhra Pradesh have been selected by adopting stratified random sampling technique. Almost 80% of these employees are males and 20% females.

6. Sample characteristics and Analysis

6.1 Socio- Economic characteristics of Employees

Socio-economic characteristics of sample of 300 employees of LIC are briefly discussed here.

By age criterion, about 33%, 27%, 16%, 13%, 7%, and 4% of these employees fall in the age group of 36-40 years, 41-50 years, 31-35 years, 26-30 years, 21-25 years and more than 50 years respectively.

By income criterion, about 24%,25%,21%,8%,5%, and 17% of these employees fall in the monthly income groups of Rs. 30001-35000, Rs. 25001-30000, Rs. 20001-25000, Rs. 150001-20000, Rs. 10001-15000, and more than Rs. 35000 respectively. About 89% of these employees are married while about 11% are unmarried.

By education criterion, about 47% of these employees are educated up to post graduation followed by graduation 29 %, higher secondary 10%, secondary 7%, professional education 4% and diploma 3%.

By employee category, about 33% of them are HGA followed by assistant 28%, Assistant Administrative Officers 23%, Administrative Officers 12%, Divisional Officers 3% and Branch Managers 1%.

!

Dimensions Affecting Leadership Styles In Lic Dimensions Affecting Leadership Styles In Lic

2

nurturing and influencing the employees for enhancing productivity and developing quick delivery system to meet the consumer needs and wants.

Now, all the organizations have recognized the vital role played by the leaders, and not necessarily by the managers. At present, the success and failure of organizations is attributed to the effectiveness of leaders in the organizational setting.

Attracting effective leaders and practicing effective leadership qualities for sustainable improvement of working environments are currently engaging the minds of businesses around the world. The role of the leaders has become more complex. Finding enough people willing to lead working and learning, organize maintenance of infrastructure facilities, balance budgets, develop and maintain effective relationships, deal with disciplinary issues, meet accountability requirements and maintain a family and personal life may be one of the most critical issues for most of the employees in both public and private sector organizations.

With the above background, the present study is being carried out to analyze the relationship of leadership styles with socio-economic and organizational dimensions, which includes working conditions, job security, levels of trust, team work, feedback on performance, handling of employee grievances, fair treatment in promotions and pay hikes, career development and delegation of authority etc.

Life Insurance Corporation (LIC) of India is one among the successful public sector organizations in India with 80% market share in life insurance sector. On January 1956, in keeping with the then prevailing political and economic philosophy of socialism, 245 Indian and foreign insurers and provident societies operating in India were taken over by the Central Government by an Act of parliament. Today LIC functions with 2048 fully computerized branch offices, 109 divisional offices, 8 zonal offices, 992 satellite offices and the corporate office.

3. Review of Literature

Amin (1963) reported that qualities perceived in successful leaders were: technical knowledge and ability to co-ordinate supply of materials, good behaviour, politeness and straightforward and persuasive approach. They were not expected to pass on duties to workers under them but were expected to give freedom to workers in their work.

Stogdill (1965) carried out a study of 27 organizations and found that leader structure is related to follower satisfaction with organization, while consideration is associated with satisfaction and freedom of action.

In a survey conducted by Punekar and Savur (1969) of the relations between white-collar employees and their supervisors in 11 different organizations such as banks, insurance companies, manufacturing firms, government offices, a state-owned public utility company and an educational institution, it was found that only three supervisors and only six workers thought that giving responsibility to the white-collar employees is the best way to get the work done. Most supervisors (70%) expressed the belief that subordinates can only work with supervision and have no sense of responsibility.

R. Rangaswamy and Helmick (1976) in their study of leadership behaviour of 56 top level managers have found that Indian managers are more employee-oriented as compared to their American counterpart. This is due to the Indian culture and religious pattern which influence helpfulness and peaceful co-operation.

The study by Joseph and Kasavan (1977) of 45 supervisors from public sector and 38 from private sector shows that in a private sector the emphasis is on production which is meaningful since total wages are tied up with the quantity produced, whereas in public sector, superior orientation is prevalent which can be explained by the fact that superiors are given full authority in recommending their subordinates for promotion and increase in pay.

Kalra (1980) has studied the pattern of styles of 70 managers and has found that most of the managers have their leadership behaviour guided by the situation in their organizations.

Chen and Spector (1991) found that the quality of the leader-employee relationship has profound influence on the employee's self-esteem and leadership styles.

Keashly et. al., (1994) found that negative leader-employee relations affect the leadership styles and productivity and increases absenteeism.

Dawes (1996) found that political consensus, moral codes, competent leadership and the ability to instill trust were affecting the leadership styles. Leaders also played an essential role in ensuring political or top executive support, building and maintaining many kinds of simultaneous relationships and encouraging learning and adaptation. Further, their communication skills, resourcefulness, and boundary spanning abilities all affected leadership styles.

Santiago (1999) found that race, gender, age, educational level, institutional size, career expectations, security level, knowledge, attitude, behavior and experience were influencing the leadership styles.

Lussier (2000) found that five factors: (a) assurgency, (b) agreeableness, (c) adjustment, (d) conscientiousness, and (e) openness to experience significantly influence the leadership styles and functioning of leaders.

"Pragyaan: Journal of Management" Volume 11: Issue 1, June 2013 "Pragyaan: Journal of Management" Volume 11: Issue 1, June 2013 3

Tirmizi (2002) found that a manager's personality had a significant influence on the way he/she thinks, feels and relates other people. Personality traits tend to be pretty stable in adulthood and led people to act in certain preferred ways. At work, the manager's personality, sometimes helps subordinates to execute work roles effectively and at other times get in the way. Individuals with extravert traits found it easier to lead meetings, confront presentations and lead a change. By contrast, people with low scores on the agreeableness scale may take adequate time to acquire skills in areas like team building, coaching and mentoring because they are self-sufficient and self-absorbed.

Doh (2003) presented an overview of the key arguments with respect to leadership development, inclusive of the key nature versus nurture argument in leadership. This argument considered whether leaders were born with the aptitude and attitude for leadership or whether leaders could be made, that is requisite leadership skills and attitudes can be developed in the individual.

Elmuti (2004) suggested that management education should adopt soft skills development in intra-personal and interpersonal skills to complement traditional hard skills development in business analysis to better respond to rapid technological change and impact of globalization.

Allio (2005) stated that leadership cannot be taught but can be learned. He saw leadership programs as capable of building skills and a knowledge base of concepts and approaches, but fail to develop leadership practice.

Broome and Hughes (2006) found that commitment, long term relationship, practical knowledge, experience, providing information to employees, popularity, innovative approach and charisma had significant influence on the leadership styles.

Bono, et. al., (2007) found that a leader's emotional intelligence, employees' emotions, working attitude and political skill affect the leadership styles. Emotional intelligence, however, was a multifaceted construct that comprised several different abilities and skills.

Albulushi and Hussain (2008) highlighted that when transformational leadership was practiced, team members believed that their leaders cared for them rather than using them as a means to an end. It also revealed that transformational leaders who encouraged their followers to think critically and creativity can have an influence on their followers' commitment and leadership styles.

Woodbine and Liu (2010) concluded that moral behavior, motivation, achievement oriented approach, experience, knowledge, directive and participative approach, supportive in nature, and situational factors influence the leadership styles.

From the above review, it is observed that leadership styles are affected by various factors like leader's personal traits, situational variables and organizational variables. For the present study relating to LIC, the researcher has taken the organizational variables including the social factors, economic factors and organizational factors of LIC.

4. Objectives of the Study

To analyse the relationship of leadership styles with social, economic and organizational dimensions of employees of LIC.

Hypothesis

There is no significant relationship of leadership styles with social, economic and organizational dimensions of employees of LIC.

5. Methodology

The primary and secondary data are collected from LIC and its employees, covering the districts of Coastal areas in Andhra Pradesh. LIC is purposively selected for the study due to familiarity of the researcher. The leadership styles are measured in the five point scale ranging from almost always true to almost never true.

For this study, 300 employees of LIC out of total of 2300 employees in Andhra Pradesh have been selected by adopting stratified random sampling technique. Almost 80% of these employees are males and 20% females.

6. Sample characteristics and Analysis

6.1 Socio- Economic characteristics of Employees

Socio-economic characteristics of sample of 300 employees of LIC are briefly discussed here.

By age criterion, about 33%, 27%, 16%, 13%, 7%, and 4% of these employees fall in the age group of 36-40 years, 41-50 years, 31-35 years, 26-30 years, 21-25 years and more than 50 years respectively.

By income criterion, about 24%,25%,21%,8%,5%, and 17% of these employees fall in the monthly income groups of Rs. 30001-35000, Rs. 25001-30000, Rs. 20001-25000, Rs. 150001-20000, Rs. 10001-15000, and more than Rs. 35000 respectively. About 89% of these employees are married while about 11% are unmarried.

By education criterion, about 47% of these employees are educated up to post graduation followed by graduation 29 %, higher secondary 10%, secondary 7%, professional education 4% and diploma 3%.

By employee category, about 33% of them are HGA followed by assistant 28%, Assistant Administrative Officers 23%, Administrative Officers 12%, Divisional Officers 3% and Branch Managers 1%.

!

Dimensions Affecting Leadership Styles In Lic Dimensions Affecting Leadership Styles In Lic

4

6.2 Social Dimensions

The social dimensions covering working conditions, team work, feedback, security, trust, dignity,

respect, discipline in LIC is analyzed by working out weighted means of the employees' responses, and the results are presented in Table 1.

"Pragyaan: Journal of Management" Volume 11: Issue 1, June 2013

Table 1. Social Dimensions Affecting Leadership Styles in LIC

Social Dimensions Weighted Mean Status

Employees work well together. 3.08 NADA

Employees work as a team. 3.31 NADA

Supervisor gives enough feedback about job performance. 3.44 NADA

Supervisor motivates employees to perform the best of their abilities. 3.23 NADA

The job is secured. 4.16 A

Supervisor does a good job keeping, employees informed. 3.97 A

There is a trust between employees and senior management. 3.76 A

Senior management treats employees with dignity and respect. 3.80 A

Supervisor does a good job handling employee complaints. 2.85 NADA

Supervisor does a good job handling employee's discipline. 3.65 A

Source: Primary & Computed DataNote: A=Agree if weighted mean is about 4.00NADA= Neither Agree Nor Disagree if weighted mean is about 3.00

These results show that in LIC, the job is secured, supervisor does a good job keeping employees informed, there is a trust between employees and senior management, senior management treat employees with dignity and respect. The employees neither agree nor disagree with the propositions that employees work well together, employees work as a team, supervisor gives enough feedback about job performance, and supervisor

motivates employees to perform to the best of their abilities, and supervisor does a good job handling employee complaints affecting the leadership styles.

6.3 Economic Dimensions

The results relating to economic dimensions affecting the leadership styles in LIC are presented in Table 2.

Table 2. Economic Dimensions Affecting Leadership Styles in LIC

Economic Dimensions Weighted Mean Status

Employees are satisfied with pay increase procedure. 3.96 A

Employees are satisfied with salary. 4.05 A

Employees are satisfied with overall benefit packages. 3.61 A

Employees are satisfied with opportunities for future advancement. 3.84 A

Employee's promotions are handled fairly. 3.28 NADA

Employees benefit package is competitive. 4.04 A

The pay is fair compared to other jobs. 3.84 A

Employees have enough input in to decision that affects jobs. 3.83 A

Organization has sufficient fund. 4.06 A

Organization gives high attention to employee's welfare 3.96 A

Source: Primary & Computed Data Note: A=Agree if weighted mean is about 4.00 NADA= Neither Agree Nor Disagree if weighted mean is about 3.00

"Pragyaan: Journal of Management" Volume 11: Issue 1, June 2013 5

These results show that in LIC, employees are satisfied with pay increase procedure, salary, overall benefit packages, and opportunities for future advancement. Employees benefit package is competitive, and the pay fairly compares to other jobs. Employees have enough inputs for decision

making that affects jobs. Organization has sufficient fund and provides high attention to employee's welfare.

6.4 Organizational Dimensions

The results relating to organizational dimensions affecting the leadership styles in LIC are presented in Table 3

These results show that in LIC, supervisor treats employees with respect, jobs can be done without harassment, the facilities are adequate, the physical working condition is good, employees feel free to discuss their complaints with their supervisor, employees have enough help to handle the workload, and employee's complaints handled fairly. Employees have sense of commitment to the organization and managers' delegate duties to subordinates efficiently, while, they neither agree nor disagree with the proposition

that organization has good decision making system as it affects the leadership styles.

6.5 Confirmatory Factor Analysis (CFA) for Dimensions Affecting Leadership Styles in LIC

The confirmatory factor analysis (CFA) is carried out for each of the Social, economic, and Organizational dimensions affecting leadership styles in LIC, and the results are presented in Table 4.

Table 3. Organizational Dimensions Affecting Leadership Styles in LIC

Source: Primary & Computed DataNote: A=Agree if weighted mean is about 4.00NADA= Neither Agree Nor Disagree if weighted mean is about 3.00

Table 4. Confirmatory Factor Analysis (CFA) for Dimensions Affecting Leadership Styles in LIC

Dimensions Chi-Square P-Value GFI CFI RMR RMSEAValue

Social 4.856 0.722 0.99 1.00 0.07 0.00

Economic 4.771 0.444 0.99 1.00 0.09 0.00

Organizational 5.046 0.410 0.99 1.00 0.09 0.06

These results indicate excellent fits with chi-square statistic more than 4.0. The Goodness of Fit Index (GFI) is 0.99 and Comparative Fit Index (CFI) is 1.00. These GFI and CFI values indicate perfect fit. The standardized Root

Mean Residual (RMR) is not more than 0.09 and Root Mean Square Error of Approximation (RMSEA) is not exceeding 0.06 indicating excellent fit.

Source: Primary and Computed Data

Dimensions Affecting Leadership Styles In Lic Dimensions Affecting Leadership Styles In Lic

Organizational Dimensions Weighted Mean Status

Supervisor treats employees with respect. 4.07 A

Jobs can be done without harassment. 3.65 A

The facilities are adequate. 3.93 A

The physical working condition is good. 3.57 A

Employees feel free to discuss their complaints with their supervisor. 3.97 A

Employees have enough help to handle the workload. 3.69 A

Employee's complaints handle fairly. 3.68 A

Employees have sense of commitment to the organization. 4.05 A

Managers delegate duties to subordinates efficiently. 3.63 A

Organization has good decision making system 3.04 NADA

4

6.2 Social Dimensions

The social dimensions covering working conditions, team work, feedback, security, trust, dignity,

respect, discipline in LIC is analyzed by working out weighted means of the employees' responses, and the results are presented in Table 1.

"Pragyaan: Journal of Management" Volume 11: Issue 1, June 2013

Table 1. Social Dimensions Affecting Leadership Styles in LIC

Social Dimensions Weighted Mean Status

Employees work well together. 3.08 NADA

Employees work as a team. 3.31 NADA

Supervisor gives enough feedback about job performance. 3.44 NADA

Supervisor motivates employees to perform the best of their abilities. 3.23 NADA

The job is secured. 4.16 A

Supervisor does a good job keeping, employees informed. 3.97 A

There is a trust between employees and senior management. 3.76 A

Senior management treats employees with dignity and respect. 3.80 A

Supervisor does a good job handling employee complaints. 2.85 NADA

Supervisor does a good job handling employee's discipline. 3.65 A

Source: Primary & Computed DataNote: A=Agree if weighted mean is about 4.00NADA= Neither Agree Nor Disagree if weighted mean is about 3.00

These results show that in LIC, the job is secured, supervisor does a good job keeping employees informed, there is a trust between employees and senior management, senior management treat employees with dignity and respect. The employees neither agree nor disagree with the propositions that employees work well together, employees work as a team, supervisor gives enough feedback about job performance, and supervisor

motivates employees to perform to the best of their abilities, and supervisor does a good job handling employee complaints affecting the leadership styles.

6.3 Economic Dimensions

The results relating to economic dimensions affecting the leadership styles in LIC are presented in Table 2.

Table 2. Economic Dimensions Affecting Leadership Styles in LIC

Economic Dimensions Weighted Mean Status

Employees are satisfied with pay increase procedure. 3.96 A

Employees are satisfied with salary. 4.05 A

Employees are satisfied with overall benefit packages. 3.61 A

Employees are satisfied with opportunities for future advancement. 3.84 A

Employee's promotions are handled fairly. 3.28 NADA

Employees benefit package is competitive. 4.04 A

The pay is fair compared to other jobs. 3.84 A

Employees have enough input in to decision that affects jobs. 3.83 A

Organization has sufficient fund. 4.06 A

Organization gives high attention to employee's welfare 3.96 A

Source: Primary & Computed Data Note: A=Agree if weighted mean is about 4.00 NADA= Neither Agree Nor Disagree if weighted mean is about 3.00

"Pragyaan: Journal of Management" Volume 11: Issue 1, June 2013 5

These results show that in LIC, employees are satisfied with pay increase procedure, salary, overall benefit packages, and opportunities for future advancement. Employees benefit package is competitive, and the pay fairly compares to other jobs. Employees have enough inputs for decision

making that affects jobs. Organization has sufficient fund and provides high attention to employee's welfare.

6.4 Organizational Dimensions

The results relating to organizational dimensions affecting the leadership styles in LIC are presented in Table 3

These results show that in LIC, supervisor treats employees with respect, jobs can be done without harassment, the facilities are adequate, the physical working condition is good, employees feel free to discuss their complaints with their supervisor, employees have enough help to handle the workload, and employee's complaints handled fairly. Employees have sense of commitment to the organization and managers' delegate duties to subordinates efficiently, while, they neither agree nor disagree with the proposition

that organization has good decision making system as it affects the leadership styles.

6.5 Confirmatory Factor Analysis (CFA) for Dimensions Affecting Leadership Styles in LIC

The confirmatory factor analysis (CFA) is carried out for each of the Social, economic, and Organizational dimensions affecting leadership styles in LIC, and the results are presented in Table 4.

Table 3. Organizational Dimensions Affecting Leadership Styles in LIC

Source: Primary & Computed DataNote: A=Agree if weighted mean is about 4.00NADA= Neither Agree Nor Disagree if weighted mean is about 3.00

Table 4. Confirmatory Factor Analysis (CFA) for Dimensions Affecting Leadership Styles in LIC

Dimensions Chi-Square P-Value GFI CFI RMR RMSEAValue

Social 4.856 0.722 0.99 1.00 0.07 0.00

Economic 4.771 0.444 0.99 1.00 0.09 0.00

Organizational 5.046 0.410 0.99 1.00 0.09 0.06

These results indicate excellent fits with chi-square statistic more than 4.0. The Goodness of Fit Index (GFI) is 0.99 and Comparative Fit Index (CFI) is 1.00. These GFI and CFI values indicate perfect fit. The standardized Root

Mean Residual (RMR) is not more than 0.09 and Root Mean Square Error of Approximation (RMSEA) is not exceeding 0.06 indicating excellent fit.

Source: Primary and Computed Data

Dimensions Affecting Leadership Styles In Lic Dimensions Affecting Leadership Styles In Lic

Organizational Dimensions Weighted Mean Status

Supervisor treats employees with respect. 4.07 A

Jobs can be done without harassment. 3.65 A

The facilities are adequate. 3.93 A

The physical working condition is good. 3.57 A

Employees feel free to discuss their complaints with their supervisor. 3.97 A

Employees have enough help to handle the workload. 3.69 A

Employee's complaints handle fairly. 3.68 A

Employees have sense of commitment to the organization. 4.05 A

Managers delegate duties to subordinates efficiently. 3.63 A

Organization has good decision making system 3.04 NADA

6.6 Convergent and Discriminant Validity for Dimensions affecting Leadership Styles in LIC.

In addition, the adequacy of the measurement model for dimensions affecting leadership styles in LIC is also evaluated based on the criteria of Composite Reliability (CR), Average Variance Extract (AVE) and Discriminant Validity (DV) of the constructs, and the results are presented in Table 5.

These results show that composite reliability for dimensions affecting leadership styles in LIC is above the cut off value of 0.70, average variance extract is greater than the minimum value of 0.50 and discriminant validity is above 0.60 indicating that convergent validity is confirmed for dimensions affecting leadership styles in LIC.

7. Relationship between Leadership Styles and Dimensions affecting the Leadership Styles

The relationship between leadership styles as perceived by employees and social, economic and organizational dimensions affecting the leadership styles in LIC are analyzed by using Pearson correlation coefficients, and the results are presented in Table 6.

Table 5: Construct Reliability for Dimensions Affecting Leadership Styles in LIC

These correlation coefficients indicate that the leadership styles are significantly and positively correlated with social dimensions, economic dimensions and organizational dimensions at one per cent level. It is inferred that the leadership styles are associated with social dimensions

Dimensions CR AVE DV

Social 0.72 0.64 0.64

Economic 0.76 0.74 0.68

Organizational 0.82 0.62 0.61

Particulars LS SD ED OD

Leadership Styles (LS) 1.00

Social Dimensions (SD) 0.45** 1.00

Economic Dimensions(ED) 0.47** 0.45** 1.00

Organizational 0.36** 0.43* 0.32* 1.00

Dimensions(OD)

Table 6. Relationship between Leadership Styles and Dimensions Affecting the Leadership Styles in LIC

Notes: ** indicates significant at one per cent level. * indicates significant at five per cent level.

and economic dimensions at moderate level, whereas the association with organizational dimension is low.

The correlation coefficients show that social dimensions are significantly and positively correlated with economic dimensions at one per cent level and with organizational dimensions at five per cent level. It reveals that the social dimensions are associated with both economic and organizational dimensions at moderate level. The results also indicate that economic dimensions are significantly and positively associated with organizational dimensions at five per cent level of significance.

Thus, the null hypothesis that there is no significant relationship between leadership styles and dimensions affecting the leadership styles in LIC is not accepted.

8. Summary

The Leadership styles are found to have positive association with social and economic dimensions of employees, and organizational dimensions. Researchers should endeavor to do research on impact of leadership styles and leadership practices on motivation, employees' welfare and work life balance of employees in LIC. Other potential research could investigate the extent to which leadership practices do (or do not) influence a particular unit's success. Further, it is suggested that new studies seek clarification on the different leadership functions required to assist organizations in sustaining growth. The present research can be enhanced if the understanding of the issues involved in implementing the quality aspects in leadership styles and practices is improved. Successful adoption, diffusion, and implementation of quality leadership practices can be critical determinants that could be further explored for organizational success and effectiveness. When innovative leadership practices are adopted, they provide sustainable competitive advantage depending on how creatively and effectively they are interpreted and executed. This also calls for intensive research in future in both public and private sector enterprises in India.

References

! Amin D.L., “Perception of the First Line Supervisor about His Job”, Industrial Relations, IIBM, Calcutta, 1963.

! Stogdi l l R.M., “Managers, Employees, Organisations”, Bureau of Business Research, Ohio State University, Columbus, 1965.

! S.D.Punekar and M.G.Savur, Management White Collar Relations, Popular Prakashan, Bombay, 1969.

! R. Rangaswamy and D. Helmick, “A comparative Study of Indian and American Executives'

Leadership styles, “Indian Administrative and Management Review”, July-september 1976.

! P.M. Joseph and R. Kesavan, “ A Comparative Study of Leader Behaviour inPublic and Private Sectors in India”, Indian Manager, April-June 1977.

! H.K. Kalra, “Leadership styles of Executives in Indian Enterprises”, unpublished research report, Punjab Agricultural University, Ludhiana,1980

! Chen, P.Y., and Spector, P.E., (1991), “Negatively Affectivity as the Underlying Cause of Correlations between Stressors and Strains”, Journal of Applied Psychology, 76(4): pp.398-407.

! Keashly, L., Trott, V., and MacLean, L.M., (1994), “Abusive Behavior in the Workplace: A Preliminary Investigation”, Violence and Victims, 9(4): pp.341-357.

! Dawes, S. S., (1996), “Interagency Information Sharing: Expected Benefits, Manageable Risks”, Journal of Policy Analysis and Management, 15(3): pp. 377-394.

! Nancy E. Santiago (1999), “Factors Affecting Leadership Styles of Prison Wardens: Case Study” An unpublished Ph.D. Dissertation submitted to the Old Dominion University Virginia.

! Lussier, R.N., (2000), “Leadership", South-Western College, USA.

! Tirmizi, S.A., (2002), “A Study of Leadership Prototypes in Pakistani Organizations”, LEAD Pakistan, Islamabad

! Doh, J.P., (2003), “Can Leadership Be Taught? Perspectives from Management Educators”, Academy of Management Learning and Education, 2(1):pp. pp. 54-67.

! Elmuti, D., (2004), “Can Management be Taught?? Management Decision, 42(3/4): pp. 439-453.

! Allio, R.J., (2005), “Leadership Development: Teaching versus Learning?. Management Decision, 43(7/8): pp. 1071-1077.

! Gina Hernez-Broome and Richard L. Hughes,(2006), “Leadership Development: Past, Present, and Future”, Research Report, Centre for Creative Leadership, California.

! Bono, E. J. , Foldes, H. J. , Vinson, G, and Muros, P. J., (2007), “Workplace Emotions: The Role of Supervision and Leadership”, Journal of Applied Psychology, 92 (5):pp.13571367.

! Albulushi, A., and Hussain, S., (2008), “Transformational Leadership Takes Majan to the Top of the Class”, Human Resource Management International Digest, 16(2): pp. 31-33.

! Gordon F. Woodbine and Joanne Liu(2010), “ Leadership Styles and the Moral Choice of Internal Auditors” , Electronic Journal of Business Ethics and Organization Studies, 15(1): pp.28-35.

! Rama Murthy A. 'Life Insurance Corporation-Advantage of strong base”, The Hindu Survey of Indian Industry, 2003, pp.81-82.

! Suresh Padmalatha, “Management of Banking and Financial Services”, Pearson education India, P-510.

! Biswas Roy, P.K and Venkateswara Rao, BH, “Marketing of Life Insurance Business”, Discovery Publishing House Pvt. Ltd, New Delhi, 2008, pp. 27-29.

! Kumar Dipak, “The Social Security Schemes provided by LIC”. Yogakshema, Vol 46. No.9 September, 2002. pp.57-58.

! Annual report of LIC of India, 2010.

"Pragyaan: Journal of Management" Volume 11: Issue 1, June 2013 76 "Pragyaan: Journal of Management" Volume 11: Issue 1, June 2013

Dimensions Affecting Leadership Styles In Lic Dimensions Affecting Leadership Styles In Lic

6.6 Convergent and Discriminant Validity for Dimensions affecting Leadership Styles in LIC.

In addition, the adequacy of the measurement model for dimensions affecting leadership styles in LIC is also evaluated based on the criteria of Composite Reliability (CR), Average Variance Extract (AVE) and Discriminant Validity (DV) of the constructs, and the results are presented in Table 5.

These results show that composite reliability for dimensions affecting leadership styles in LIC is above the cut off value of 0.70, average variance extract is greater than the minimum value of 0.50 and discriminant validity is above 0.60 indicating that convergent validity is confirmed for dimensions affecting leadership styles in LIC.

7. Relationship between Leadership Styles and Dimensions affecting the Leadership Styles

The relationship between leadership styles as perceived by employees and social, economic and organizational dimensions affecting the leadership styles in LIC are analyzed by using Pearson correlation coefficients, and the results are presented in Table 6.

Table 5: Construct Reliability for Dimensions Affecting Leadership Styles in LIC

These correlation coefficients indicate that the leadership styles are significantly and positively correlated with social dimensions, economic dimensions and organizational dimensions at one per cent level. It is inferred that the leadership styles are associated with social dimensions

Dimensions CR AVE DV

Social 0.72 0.64 0.64

Economic 0.76 0.74 0.68

Organizational 0.82 0.62 0.61

Particulars LS SD ED OD

Leadership Styles (LS) 1.00

Social Dimensions (SD) 0.45** 1.00

Economic Dimensions(ED) 0.47** 0.45** 1.00

Organizational 0.36** 0.43* 0.32* 1.00

Dimensions(OD)

Table 6. Relationship between Leadership Styles and Dimensions Affecting the Leadership Styles in LIC

Notes: ** indicates significant at one per cent level. * indicates significant at five per cent level.

and economic dimensions at moderate level, whereas the association with organizational dimension is low.

The correlation coefficients show that social dimensions are significantly and positively correlated with economic dimensions at one per cent level and with organizational dimensions at five per cent level. It reveals that the social dimensions are associated with both economic and organizational dimensions at moderate level. The results also indicate that economic dimensions are significantly and positively associated with organizational dimensions at five per cent level of significance.

Thus, the null hypothesis that there is no significant relationship between leadership styles and dimensions affecting the leadership styles in LIC is not accepted.

8. Summary

The Leadership styles are found to have positive association with social and economic dimensions of employees, and organizational dimensions. Researchers should endeavor to do research on impact of leadership styles and leadership practices on motivation, employees' welfare and work life balance of employees in LIC. Other potential research could investigate the extent to which leadership practices do (or do not) influence a particular unit's success. Further, it is suggested that new studies seek clarification on the different leadership functions required to assist organizations in sustaining growth. The present research can be enhanced if the understanding of the issues involved in implementing the quality aspects in leadership styles and practices is improved. Successful adoption, diffusion, and implementation of quality leadership practices can be critical determinants that could be further explored for organizational success and effectiveness. When innovative leadership practices are adopted, they provide sustainable competitive advantage depending on how creatively and effectively they are interpreted and executed. This also calls for intensive research in future in both public and private sector enterprises in India.

References

! Amin D.L., “Perception of the First Line Supervisor about His Job”, Industrial Relations, IIBM, Calcutta, 1963.

! Stogdi l l R.M., “Managers, Employees, Organisations”, Bureau of Business Research, Ohio State University, Columbus, 1965.

! S.D.Punekar and M.G.Savur, Management White Collar Relations, Popular Prakashan, Bombay, 1969.

! R. Rangaswamy and D. Helmick, “A comparative Study of Indian and American Executives'

Leadership styles, “Indian Administrative and Management Review”, July-september 1976.

! P.M. Joseph and R. Kesavan, “ A Comparative Study of Leader Behaviour inPublic and Private Sectors in India”, Indian Manager, April-June 1977.

! H.K. Kalra, “Leadership styles of Executives in Indian Enterprises”, unpublished research report, Punjab Agricultural University, Ludhiana,1980

! Chen, P.Y., and Spector, P.E., (1991), “Negatively Affectivity as the Underlying Cause of Correlations between Stressors and Strains”, Journal of Applied Psychology, 76(4): pp.398-407.

! Keashly, L., Trott, V., and MacLean, L.M., (1994), “Abusive Behavior in the Workplace: A Preliminary Investigation”, Violence and Victims, 9(4): pp.341-357.

! Dawes, S. S., (1996), “Interagency Information Sharing: Expected Benefits, Manageable Risks”, Journal of Policy Analysis and Management, 15(3): pp. 377-394.

! Nancy E. Santiago (1999), “Factors Affecting Leadership Styles of Prison Wardens: Case Study” An unpublished Ph.D. Dissertation submitted to the Old Dominion University Virginia.

! Lussier, R.N., (2000), “Leadership", South-Western College, USA.

! Tirmizi, S.A., (2002), “A Study of Leadership Prototypes in Pakistani Organizations”, LEAD Pakistan, Islamabad

! Doh, J.P., (2003), “Can Leadership Be Taught? Perspectives from Management Educators”, Academy of Management Learning and Education, 2(1):pp. pp. 54-67.

! Elmuti, D., (2004), “Can Management be Taught?? Management Decision, 42(3/4): pp. 439-453.

! Allio, R.J., (2005), “Leadership Development: Teaching versus Learning?. Management Decision, 43(7/8): pp. 1071-1077.

! Gina Hernez-Broome and Richard L. Hughes,(2006), “Leadership Development: Past, Present, and Future”, Research Report, Centre for Creative Leadership, California.

! Bono, E. J. , Foldes, H. J. , Vinson, G, and Muros, P. J., (2007), “Workplace Emotions: The Role of Supervision and Leadership”, Journal of Applied Psychology, 92 (5):pp.13571367.

! Albulushi, A., and Hussain, S., (2008), “Transformational Leadership Takes Majan to the Top of the Class”, Human Resource Management International Digest, 16(2): pp. 31-33.

! Gordon F. Woodbine and Joanne Liu(2010), “ Leadership Styles and the Moral Choice of Internal Auditors” , Electronic Journal of Business Ethics and Organization Studies, 15(1): pp.28-35.

! Rama Murthy A. 'Life Insurance Corporation-Advantage of strong base”, The Hindu Survey of Indian Industry, 2003, pp.81-82.

! Suresh Padmalatha, “Management of Banking and Financial Services”, Pearson education India, P-510.

! Biswas Roy, P.K and Venkateswara Rao, BH, “Marketing of Life Insurance Business”, Discovery Publishing House Pvt. Ltd, New Delhi, 2008, pp. 27-29.

! Kumar Dipak, “The Social Security Schemes provided by LIC”. Yogakshema, Vol 46. No.9 September, 2002. pp.57-58.

! Annual report of LIC of India, 2010.

"Pragyaan: Journal of Management" Volume 11: Issue 1, June 2013 76 "Pragyaan: Journal of Management" Volume 11: Issue 1, June 2013

Dimensions Affecting Leadership Styles In Lic Dimensions Affecting Leadership Styles In Lic

1. Introduction

Organizations have increasingly recognized the need to lend primacy to the people aspects of management. The burgeoning growth of industry is transforming the landscape and globalization has further fuelled the need to embrace the boundarylessness of the workforce and the immense possibilities it opens up. Now there is a serious new problem in the workplace, and it has nothing to do with downsizing, global competition, pointy-haired bosses, stress or greed. Instead, it is the problem of distinct Generations with the entry of Generation Y- persons, born between 1981-1990, to the working world. Their needs and demands are different. The Generation Y demands not just a high paying job but look at total rewards, they do not want just promotions but opportunities for career progression and a career path, not just a brand name but a great place to work and a more open and fair culture. They need an environment which recognizes their work, fosters innovation and promote ideas to improve work & bringing about a revolution. The impetus for this is their inner drive to excel and be a step ahead of their peers. This Generation has been freeing on the principles of equality and the power of merit to get recognized and rewarded accordingly. It is important to ensure that one can match their expectations and offer them a conducive and friendly workplace.

1.1 Need for the study

This Generation Y is a huge and diverse group, but they bring some common expectations with them ranging from competitive compensation and recognition to faster career

growth and instant feedback to inclusive culture and flexible working hours. India today boasts as one of the largest available workforces in the world. This is a telling and powerful demographic truth. Even more powerful is the fact that a large segment of this demographic belongs to the Generation Y cohort, those either just entering the workforce or who have been working for one or two years. How this cohort makes the transition into the workforce either from school or otherwise, and how organizations develop and engage them to move up and become business leaders are extremely important questions for Indian organizations today.

India's large Generation Y cohort is young and eager to learn and advance. Managing this workforce through robust talent identification and development plans will be the only way that organizations will reap the benefits of the dividend promised by Young India. Managers will learn what they and their organizations must do to help this cohort realize its potential. This paper identifies the importance of managing Generation Y in the organization, lists the issues and challenges in managing such employees. and also provides tips for managing Generation Y employees.

1.2 Objectives and Presentation of the Study

The main objective of this study is to know the issues and challenges in managing Generation Y employees. It gives traces of research findings relating to this Generation and also gives tips for effective management of this Generation. The study is divided into seven sections. First section presents introduction, need for the study, and

ABSTRACT

This article lays a foundation for thinking about various Generations, issues in managing Generation Y

employees, and share of Generation Y in total work force. It lists out various research findings relating to

Generation Y. The article also analyzes the challenges in managing Generation Y employees and

provides tips for managing this Generation in an organization.

Key words: Generation, Generation Y, Workforce, Challenges, Issues, Organizations

Issues and Challenges in Managing Generation Y Employees

* Professor & Head, Department of Business Administration, P.V.P. Siddhartha Institute of Technology, Kanuru, Vijayawada,Andhra Pradesh, India** Professor& Head, Department of Commerce and Business Administration, P.B. Siddhartha College of Arts & Science, Vijayawada,Andhra Pradesh, India*** Assistant Professor, Department of Business Administration, P.V.P. Siddhartha Institute of Technology,Kanuru, Vijayawada, Andhra Pradesh, India

Dr. P. Adi Lakshmi * Dr. Rajesh C. Jampala**

Srinivasa Rao Dokk***

Classification of workforce. World demographics and Generations in India are presented in the Section two. Personal and workplace characteristics of Generation Y are presented in Section three. Various research findings on issues in managing Generation Y employees are presented in Section four. Section five presents the challenges of Generation Y and Gaps in expectation of this Generation. Section Six presents the role of HR manager in Managing Generation Y. Section seven provides important tips for managing Generation Y, and the last section presents the conclusion.

1.3 Classification of Workforce

Howe and Strauss, in their books on the Generations of America, classified the world working population in to five Generations namely veterans, Baby boomers, Generation X, E-Generation and Generation Y. Veterans or Traditionalists were born between 1920 and 1945. Now in their 60s, 70s and 80s about 95% of them are retired from the workforce. Those who remain in the workplace are at or near retirement age and many of them work for reduced hours. This Traditionalist in the legal workplace is largely aging partners, managers, and senior support staff and of counsel to law firms. A case to point is the so-called baby boomer segment, born in between 1945 to 1960. The western-born baby boomers grew up in an affluent, prosperous world where thousands of industries were being set up, innovation was rampant and income levels zoomed up to never before numbers. Generation X are the older cohort born in between 1961-1970. This

segment saw the upswing of the economy, focused all energies on a respectable white-collar job and gradually began developing the confidence that India could indeed hack the economic puzzle. The younger half of the group (as per the western description of Generation X), are what we call the E-Generation or the electronic Generation. This group born in between 1971-1980, this cohort brings a very international approach to work and in most organizations this is the group which is snapping at the heels of top management.

The latest segment the Generation Y is possibly the only segment whose mainstreaming into the global classification is accurate to some extent. Born between 1981-1990, the term Generation Y first appeared in an August 1993 Maxim editorial to describe teenagers of the day, which it defined, at that time, as separate from Generation X. Generation Y has been referred to as the Millennial Generation, Millennial Generation Next, Net Generation etc. Generation Y people are the newest and youngest members of the work force. Their presence is felt like never before due to their distinct characteristics and inherent power. The characteristics of Generation Y vary from region to region depending on the prevailing socio-economic conditions. However, the core essence of Generation Y is marked by profound communications and technological impact through the use of computers, social media, cell phones and other digital technology products. Table 1 provides the classification of Generations and their share in today's work force.

Source: Saundarya Rajesh (2011), Unlocking the Value, The Hindu Survey of Indian Industry 2011, the Hindu, pages 313-317.

Table 1. Classification of Workforce

Veterans

! Born: 1920-1945

! Pre independence cohort

! Unsure and wary

! Very rarely in active employment today

Free-Generation

! Born: 1945-1960

! Post independence cohort

! Believe in concept of life-time employment

! 20% of today's work force

! Interim seniors

Generation X

! Born:1961-1970

! Socialism to liberalization transitionary cohort

! Saw the upswing of economy and hastened to catch up with younger cohorts

! Believe in the power of change

! Accounts for about 25 % of the work force

E-Generation

! Born: 1971-1980

! Confident India cohort

! Comfortable with change significant cause of attraction at the Indian work place

! Constitutes 29% of the work force in India today

! Has seen the sharpest trajectory of success, in spite of 2 large downturns

Generation Y

! Born:1981 -1990

! Constitutes about 26 % of workforce

! Feels less guilt in being an aggressive consumer

! Has seen one significant big recession of 2008

"Pragyaan: Journal of Management" Volume 11: Issue 1, June 2013 98 "Pragyaan: Journal of Management" Volume 11: Issue 1, June 2013

Issues and Challenges in Managing Generation Y Employees

1. Introduction

Organizations have increasingly recognized the need to lend primacy to the people aspects of management. The burgeoning growth of industry is transforming the landscape and globalization has further fuelled the need to embrace the boundarylessness of the workforce and the immense possibilities it opens up. Now there is a serious new problem in the workplace, and it has nothing to do with downsizing, global competition, pointy-haired bosses, stress or greed. Instead, it is the problem of distinct Generations with the entry of Generation Y- persons, born between 1981-1990, to the working world. Their needs and demands are different. The Generation Y demands not just a high paying job but look at total rewards, they do not want just promotions but opportunities for career progression and a career path, not just a brand name but a great place to work and a more open and fair culture. They need an environment which recognizes their work, fosters innovation and promote ideas to improve work & bringing about a revolution. The impetus for this is their inner drive to excel and be a step ahead of their peers. This Generation has been freeing on the principles of equality and the power of merit to get recognized and rewarded accordingly. It is important to ensure that one can match their expectations and offer them a conducive and friendly workplace.

1.1 Need for the study

This Generation Y is a huge and diverse group, but they bring some common expectations with them ranging from competitive compensation and recognition to faster career

growth and instant feedback to inclusive culture and flexible working hours. India today boasts as one of the largest available workforces in the world. This is a telling and powerful demographic truth. Even more powerful is the fact that a large segment of this demographic belongs to the Generation Y cohort, those either just entering the workforce or who have been working for one or two years. How this cohort makes the transition into the workforce either from school or otherwise, and how organizations develop and engage them to move up and become business leaders are extremely important questions for Indian organizations today.

India's large Generation Y cohort is young and eager to learn and advance. Managing this workforce through robust talent identification and development plans will be the only way that organizations will reap the benefits of the dividend promised by Young India. Managers will learn what they and their organizations must do to help this cohort realize its potential. This paper identifies the importance of managing Generation Y in the organization, lists the issues and challenges in managing such employees. and also provides tips for managing Generation Y employees.

1.2 Objectives and Presentation of the Study

The main objective of this study is to know the issues and challenges in managing Generation Y employees. It gives traces of research findings relating to this Generation and also gives tips for effective management of this Generation. The study is divided into seven sections. First section presents introduction, need for the study, and

ABSTRACT

This article lays a foundation for thinking about various Generations, issues in managing Generation Y

employees, and share of Generation Y in total work force. It lists out various research findings relating to

Generation Y. The article also analyzes the challenges in managing Generation Y employees and

provides tips for managing this Generation in an organization.

Key words: Generation, Generation Y, Workforce, Challenges, Issues, Organizations

Issues and Challenges in Managing Generation Y Employees

* Professor & Head, Department of Business Administration, P.V.P. Siddhartha Institute of Technology, Kanuru, Vijayawada,Andhra Pradesh, India** Professor& Head, Department of Commerce and Business Administration, P.B. Siddhartha College of Arts & Science, Vijayawada,Andhra Pradesh, India*** Assistant Professor, Department of Business Administration, P.V.P. Siddhartha Institute of Technology,Kanuru, Vijayawada, Andhra Pradesh, India

Dr. P. Adi Lakshmi * Dr. Rajesh C. Jampala**

Srinivasa Rao Dokk***

Classification of workforce. World demographics and Generations in India are presented in the Section two. Personal and workplace characteristics of Generation Y are presented in Section three. Various research findings on issues in managing Generation Y employees are presented in Section four. Section five presents the challenges of Generation Y and Gaps in expectation of this Generation. Section Six presents the role of HR manager in Managing Generation Y. Section seven provides important tips for managing Generation Y, and the last section presents the conclusion.

1.3 Classification of Workforce

Howe and Strauss, in their books on the Generations of America, classified the world working population in to five Generations namely veterans, Baby boomers, Generation X, E-Generation and Generation Y. Veterans or Traditionalists were born between 1920 and 1945. Now in their 60s, 70s and 80s about 95% of them are retired from the workforce. Those who remain in the workplace are at or near retirement age and many of them work for reduced hours. This Traditionalist in the legal workplace is largely aging partners, managers, and senior support staff and of counsel to law firms. A case to point is the so-called baby boomer segment, born in between 1945 to 1960. The western-born baby boomers grew up in an affluent, prosperous world where thousands of industries were being set up, innovation was rampant and income levels zoomed up to never before numbers. Generation X are the older cohort born in between 1961-1970. This

segment saw the upswing of the economy, focused all energies on a respectable white-collar job and gradually began developing the confidence that India could indeed hack the economic puzzle. The younger half of the group (as per the western description of Generation X), are what we call the E-Generation or the electronic Generation. This group born in between 1971-1980, this cohort brings a very international approach to work and in most organizations this is the group which is snapping at the heels of top management.

The latest segment the Generation Y is possibly the only segment whose mainstreaming into the global classification is accurate to some extent. Born between 1981-1990, the term Generation Y first appeared in an August 1993 Maxim editorial to describe teenagers of the day, which it defined, at that time, as separate from Generation X. Generation Y has been referred to as the Millennial Generation, Millennial Generation Next, Net Generation etc. Generation Y people are the newest and youngest members of the work force. Their presence is felt like never before due to their distinct characteristics and inherent power. The characteristics of Generation Y vary from region to region depending on the prevailing socio-economic conditions. However, the core essence of Generation Y is marked by profound communications and technological impact through the use of computers, social media, cell phones and other digital technology products. Table 1 provides the classification of Generations and their share in today's work force.

Source: Saundarya Rajesh (2011), Unlocking the Value, The Hindu Survey of Indian Industry 2011, the Hindu, pages 313-317.

Table 1. Classification of Workforce

Veterans

! Born: 1920-1945

! Pre independence cohort

! Unsure and wary

! Very rarely in active employment today

Free-Generation

! Born: 1945-1960

! Post independence cohort

! Believe in concept of life-time employment

! 20% of today's work force

! Interim seniors

Generation X

! Born:1961-1970

! Socialism to liberalization transitionary cohort

! Saw the upswing of economy and hastened to catch up with younger cohorts

! Believe in the power of change

! Accounts for about 25 % of the work force

E-Generation

! Born: 1971-1980

! Confident India cohort

! Comfortable with change significant cause of attraction at the Indian work place

! Constitutes 29% of the work force in India today

! Has seen the sharpest trajectory of success, in spite of 2 large downturns

Generation Y

! Born:1981 -1990

! Constitutes about 26 % of workforce

! Feels less guilt in being an aggressive consumer

! Has seen one significant big recession of 2008

"Pragyaan: Journal of Management" Volume 11: Issue 1, June 2013 98 "Pragyaan: Journal of Management" Volume 11: Issue 1, June 2013

Issues and Challenges in Managing Generation Y Employees

2. World Demography

As economies and businesses become more knowledge-intensive, knowledge and skills are at a premium. The fact that there are not enough of them only makes their talents even more attractive. Apparently, there is a dearth of Generation Y entering the work force in Western Europe. In the UK, for example, they are the smallest of the Generations in the current total population. Increasing numbers of them are highly educated and talented, and in the rest of the world, are in demand. In 2009, if we consider the wider definition of the Generation Y (15-29 years old) and rely on current statistical database of the US Census Bureau, the wider Generation Y represents 25.47% of the world population, the wider Generation X (30 to 44) represents 21.32% of the population. The first of the Baby Boomers (45-64 years old) represent 18.56% of the world population and are due to retire in large numbers, starting in 2004, taking their knowledge and experience with them (Table 2). Countries such as Canada, Australia, and the United States could lose more than a third of their government employees by 2014-15. Worldwide, within the age group, which we research, there are more males than females, especially amongst the young Generation (below 25 years old), while the older Generation (above 50 years old) has more females than males.

2.1 Generation Y in India:

India, today, has over 780 million in the economically productive age group that is 15 to 64 years (Graph 1). Over time literacy rate has grown from 44 per cent in 1950 to 65.38 per cent as per the 2001 census, enabling the inclusion of additional talent pools into the work force. The dependency ratio of unproductive members of the population to those economically productive has fallen sharply to 53 per cent and will continue to dip by an average of 5-8 percentage points till 2026. To give a simple comparison, India is in the same position that China was in the early Eighties with the average age of an Indian today being an enviable 25 years. Contrast this with other countries such as Japan (average age: 44.7), US (average age: 36.6) and Europe (40.1) and you can

imagine the huge potential India has in terms of exporting talent. According to latest estimates the current proportion of population under 25 years in India is 51 per cent and the proportion under 35 is about 66 per cent. This predominance of youth in the population is expected to last until 2050. While the average age of an Indian in 2020 is expected to be 29 years, the average age for China is expected to be 37 years, all of which proclaim that India enjoys the world's most promising demographic dividend.

Table 2. World Demographics

Generations Population % of World Population

Generation Y: 15-29 years old 1,723,911,077 25.47

Generation X: 30-44 years old 1,442,951,791 21.32

Baby Boomers:45-64 years old 1,233,836,150 18.56

Traditionalists: 65-74 years old 316,330,067 4.67

Source: Age structure of the world 2006 CIA World Factbook

Source: Population Bulletin, Washington.

Graph 1. Age group-wise population (in Million)

In India, Generation Y population makes up for more than half of the population. Despite the large potential work force, not all are 'employment ready' and therefore, talent is in short supply. The Generation Y people in India are remarkable, are ambitious, optimistic, embrace change and have a clear sense of where they are headed. Most of them are 'entrepreneurial and business savvy, as well as technologically capable and connected. With about half of India's one billion people under the age of 25 years, Generation Y in India is the world's largest. Positioned in a time of exciting and rapid economic growth in the country, they are keen to participate in the country's future and success. Some of the facts about Indian Generation Y are presented below:

! We have the youngest population in the world, nearly half of India's billion-plus people are under the age of 25 years. Economists call it the demographic dividend-an opportunity to harness the skills and talent of young people, in a growing economy, at a time when most countries have ageing populations. A recent study indicates that in the next five years more than a third of the Indian work force will belong to the Net Generation. This growing population of youngsters is giving our work force a demographic shift. And companies, new and old, are realizing that with great diversity comes greater responsibility.

! According to 'The Best Companies to Work For' study, 2001, 73% of the work force in India is less than 35 years of age.

Issues and Challenges in Managing Generation Y Employees

10 "Pragyaan: Journal of Management" Volume 11: Issue 1, June 2013

! The average age of employees in Indian IT/ITES sector is between 27-29 years. Sectors such as DTH, VAS, Gaming, Advertising, etc. are thriving on young talent.

! Global report by Ernst & Young (May 2010), 'Managing today's global work force' notes: "The global work force is accommodating an influx of younger workers, causing many companies to implement programmes they had never considered. Recognising the need to uncover talent in every area of the labour market, 56% of respondents said their companies might launch internal diversity or inclusiveness initiatives aimed at Generation X and Generation Y employees (11%), Baby Boomers (6%) or the entire organization (39%)." While the IT/ITES industries have risen up to the challenge earlier, given that nearly 80% of their work force is Generation X and Generationeraion Y, the old school companies like manufacturing and energy are catching up. Public sector oil and gas major, ONGC, is a case in point.

! According to Expedia Survey (2011), India's Generation Y has emerged as the fourth most vacation deprived lot in the world as they are able to take an average of only 22 leave days annually. However, 35 percent of those surveyed were not

able to take more than 15 days of annual leave in a year. Interestingly, over 22 percent Indians said that their bosses were not supportive of employees taking all of their annual leaves. On an average, Indian employees are entitled to 26 annual leave days but are able to take an average of 22 days leave annually, found the survey conducted by Expedia amongst the service class professionals at managerial levels and above in 11 countries in December 2010 with over 1000 respondents per country.

3. Personal and Workplace Characteristics of Different Generations

To begin to understand how individuals in different Generations act and react, one must first start with understanding oneself. Since this timeline represents a conglomeration of many views, the starting and ending dates (birth years) of the Generations are subjective, not scientific or fully agreed-on time spans. However, this subjectivity poses no real problems since the variation of years is not significant enough to impact the big picture of a Generation's description. The first thing to consider is the individual and his or her underlying values, or personal and lifestyle characteristics, which seem to correspond with each Generation, as shown in Table 3.

Source: Gerge hammill (2005), FDU Magazine, winter / spring, 2005.

Table 3. Personal and Lifestyle Characteristics by Generations

Core Values

Family

Education

Communication Media

Dealing with Money

Veterans (1920-45)

Respect for authority, conformers discipline

Traditional Nuclear

A dream

Rotary phones one-on-one, Write a memo

Put it away Pay cash

Baby Boomers (1946-1960)

Optimism Involvement

Disintegrating

A birth right

Touch tone phone Call me anytime

Buy now, pay later

Generation X (1961-1980)

Skepticism Fun, Informality

Latch key kids

A way to get there

Cell phone, Call me only at work

Cautious, Conservative, Save,

save, save

Generation Y (1981-2000)

Realism Confidence, Extreme fun, Social

Merged families

Incredible expenses

Internet, Picture, phones, E-mail

Earn to spend

3.1 Work place Characteristics of Different Generation Employees:

The characteristics listed in the Table 3 are but a very few of those that have been studied and reported by various authors. Not every person in a Generation will share all of the various characteristics shown in this or Table 4 with others in the same Generation. However, these examples are indicative of Generationeral patterns in the

relationships between and among family members, friends and people in the work place. Individuals born at one end of the date range or the other may see overlapping characteristics with the preceding or succeeding Generation. Understanding these characteristics about individuals makes it easier to look at work place characteristics and how they manifest themselves in business (see Work place Characteristics below).

Issues and Challenges in Managing Generation Y Employees

"Pragyaan: Journal of Management" Volume 11: Issue 1, June 2013 11

2. World Demography

As economies and businesses become more knowledge-intensive, knowledge and skills are at a premium. The fact that there are not enough of them only makes their talents even more attractive. Apparently, there is a dearth of Generation Y entering the work force in Western Europe. In the UK, for example, they are the smallest of the Generations in the current total population. Increasing numbers of them are highly educated and talented, and in the rest of the world, are in demand. In 2009, if we consider the wider definition of the Generation Y (15-29 years old) and rely on current statistical database of the US Census Bureau, the wider Generation Y represents 25.47% of the world population, the wider Generation X (30 to 44) represents 21.32% of the population. The first of the Baby Boomers (45-64 years old) represent 18.56% of the world population and are due to retire in large numbers, starting in 2004, taking their knowledge and experience with them (Table 2). Countries such as Canada, Australia, and the United States could lose more than a third of their government employees by 2014-15. Worldwide, within the age group, which we research, there are more males than females, especially amongst the young Generation (below 25 years old), while the older Generation (above 50 years old) has more females than males.

2.1 Generation Y in India:

India, today, has over 780 million in the economically productive age group that is 15 to 64 years (Graph 1). Over time literacy rate has grown from 44 per cent in 1950 to 65.38 per cent as per the 2001 census, enabling the inclusion of additional talent pools into the work force. The dependency ratio of unproductive members of the population to those economically productive has fallen sharply to 53 per cent and will continue to dip by an average of 5-8 percentage points till 2026. To give a simple comparison, India is in the same position that China was in the early Eighties with the average age of an Indian today being an enviable 25 years. Contrast this with other countries such as Japan (average age: 44.7), US (average age: 36.6) and Europe (40.1) and you can

imagine the huge potential India has in terms of exporting talent. According to latest estimates the current proportion of population under 25 years in India is 51 per cent and the proportion under 35 is about 66 per cent. This predominance of youth in the population is expected to last until 2050. While the average age of an Indian in 2020 is expected to be 29 years, the average age for China is expected to be 37 years, all of which proclaim that India enjoys the world's most promising demographic dividend.

Table 2. World Demographics

Generations Population % of World Population

Generation Y: 15-29 years old 1,723,911,077 25.47

Generation X: 30-44 years old 1,442,951,791 21.32

Baby Boomers:45-64 years old 1,233,836,150 18.56

Traditionalists: 65-74 years old 316,330,067 4.67

Source: Age structure of the world 2006 CIA World Factbook

Source: Population Bulletin, Washington.

Graph 1. Age group-wise population (in Million)

In India, Generation Y population makes up for more than half of the population. Despite the large potential work force, not all are 'employment ready' and therefore, talent is in short supply. The Generation Y people in India are remarkable, are ambitious, optimistic, embrace change and have a clear sense of where they are headed. Most of them are 'entrepreneurial and business savvy, as well as technologically capable and connected. With about half of India's one billion people under the age of 25 years, Generation Y in India is the world's largest. Positioned in a time of exciting and rapid economic growth in the country, they are keen to participate in the country's future and success. Some of the facts about Indian Generation Y are presented below:

! We have the youngest population in the world, nearly half of India's billion-plus people are under the age of 25 years. Economists call it the demographic dividend-an opportunity to harness the skills and talent of young people, in a growing economy, at a time when most countries have ageing populations. A recent study indicates that in the next five years more than a third of the Indian work force will belong to the Net Generation. This growing population of youngsters is giving our work force a demographic shift. And companies, new and old, are realizing that with great diversity comes greater responsibility.

! According to 'The Best Companies to Work For' study, 2001, 73% of the work force in India is less than 35 years of age.

Issues and Challenges in Managing Generation Y Employees

10 "Pragyaan: Journal of Management" Volume 11: Issue 1, June 2013

! The average age of employees in Indian IT/ITES sector is between 27-29 years. Sectors such as DTH, VAS, Gaming, Advertising, etc. are thriving on young talent.

! Global report by Ernst & Young (May 2010), 'Managing today's global work force' notes: "The global work force is accommodating an influx of younger workers, causing many companies to implement programmes they had never considered. Recognising the need to uncover talent in every area of the labour market, 56% of respondents said their companies might launch internal diversity or inclusiveness initiatives aimed at Generation X and Generation Y employees (11%), Baby Boomers (6%) or the entire organization (39%)." While the IT/ITES industries have risen up to the challenge earlier, given that nearly 80% of their work force is Generation X and Generationeraion Y, the old school companies like manufacturing and energy are catching up. Public sector oil and gas major, ONGC, is a case in point.

! According to Expedia Survey (2011), India's Generation Y has emerged as the fourth most vacation deprived lot in the world as they are able to take an average of only 22 leave days annually. However, 35 percent of those surveyed were not

able to take more than 15 days of annual leave in a year. Interestingly, over 22 percent Indians said that their bosses were not supportive of employees taking all of their annual leaves. On an average, Indian employees are entitled to 26 annual leave days but are able to take an average of 22 days leave annually, found the survey conducted by Expedia amongst the service class professionals at managerial levels and above in 11 countries in December 2010 with over 1000 respondents per country.

3. Personal and Workplace Characteristics of Different Generations

To begin to understand how individuals in different Generations act and react, one must first start with understanding oneself. Since this timeline represents a conglomeration of many views, the starting and ending dates (birth years) of the Generations are subjective, not scientific or fully agreed-on time spans. However, this subjectivity poses no real problems since the variation of years is not significant enough to impact the big picture of a Generation's description. The first thing to consider is the individual and his or her underlying values, or personal and lifestyle characteristics, which seem to correspond with each Generation, as shown in Table 3.

Source: Gerge hammill (2005), FDU Magazine, winter / spring, 2005.

Table 3. Personal and Lifestyle Characteristics by Generations

Core Values

Family

Education

Communication Media

Dealing with Money

Veterans (1920-45)

Respect for authority, conformers discipline

Traditional Nuclear

A dream

Rotary phones one-on-one, Write a memo

Put it away Pay cash

Baby Boomers (1946-1960)

Optimism Involvement

Disintegrating

A birth right

Touch tone phone Call me anytime

Buy now, pay later

Generation X (1961-1980)

Skepticism Fun, Informality

Latch key kids

A way to get there

Cell phone, Call me only at work

Cautious, Conservative, Save,

save, save

Generation Y (1981-2000)

Realism Confidence, Extreme fun, Social

Merged families

Incredible expenses

Internet, Picture, phones, E-mail

Earn to spend

3.1 Work place Characteristics of Different Generation Employees:

The characteristics listed in the Table 3 are but a very few of those that have been studied and reported by various authors. Not every person in a Generation will share all of the various characteristics shown in this or Table 4 with others in the same Generation. However, these examples are indicative of Generationeral patterns in the

relationships between and among family members, friends and people in the work place. Individuals born at one end of the date range or the other may see overlapping characteristics with the preceding or succeeding Generation. Understanding these characteristics about individuals makes it easier to look at work place characteristics and how they manifest themselves in business (see Work place Characteristics below).

Issues and Challenges in Managing Generation Y Employees

"Pragyaan: Journal of Management" Volume 11: Issue 1, June 2013 11

4. Issues in Managing Generation Y

Organizations have had people from different age groups working for them. But never in history, have there been exhaustive discussion on the age groups. So, why is there a sudden interest in Generation Y alone? What is so special about them? Generation Y is a unique Generation in our history. According to S.V. Nathan (2011), article on “Getting HR ready for Generation Y: what should companies do differently” some of the reasons of this are:

! Generation Y members have come of age in a very child focused world. Many of them had Baby boomers as parents; boomers are as parents; boomers are as competitive for their children as they were for themselves. Boomers have worked long hours and are used to getting their own way, and they have been strong advocates for their children. Thus, Generation Y has grown up in a very structured, busy and over planned world. This has positively impacted their competitive spirit and result orientation.

! Boomers have made sure their children participate in all forms of lessons and activities, when they grew up. This participation in all activities has made them confident and optimistic, and has developed their urge to feel valued and wanted.

! This Generation combines the can-do attitude of veterans, the teamwork ethic of Boomers and the technological savviness of Generation X. For this group, the preferred learning conditions should combine teamwork and technology.

! Global work force solutions leader, Kelly Services has released a white paper on Generation Y. This paper reflects that meaningful work is most important to the Generation Y employee and that mentoring from managers helps a Generation Y employee to align his/her career goals. Once this is established, managers and employers will most likely find their Generation Y employees exhibiting a greater sense of responsibility, applying an "all or nothing" attitude towards the tasks that they are entrusted with.

Table 4. Workplace characteristics

Work Ethics and Values

Work is ------

Leadership Style

Interactive Style

Communication

Feedback and Rewards

Messages that Motivate

Work and Family Life

Veterans(1920-45)

Hard work, Respect authority, Sacrifice, Duty before fun, Adhere to rules

An obligation

Directive Command and control

Individual

Formal memo No

News is good news, Satisfaction in a job,

Well done

Your experience is respected

Never the twain shall meet

Baby Boomers (1946-1960)

Work aholics, Work efficiently, Crusading

causes, Personal fulfillment, Desire quality, Question

authority

An exciting adventure

Consensual Collegial

Team player, Loves to have meeting

In person

Don't appreciate it, Money, Title recognition

You are valued, You are needed

No balance, Work to live

Generation X (1961-1980)

Eliminate the task, self reliance, Want structure and

direction, Skeptical

A difficult challenge, A contract

Everyone is the same Challenge others,

Ask why

Entrepreneur

Direct Immediate

Sorry to interrupt, but how am I doing?

Freedom is the best reward

Do it your way, Forget the rules

Balance

Generation Y (1981-2000)

What's next, multitasking tenacity,

Entrepreneur, tolerance, Goal

oriented

A means to an end, Fulfillment

TBD*

Participative

E-mail, Voice mail

I want it at the push of button, Meaningful

work

Your will work with other bright and creative people

Balance

* As this group has not spent much time in the workforce, this characteristic is yet to be determined. Source: Gerge hammill (2005), FDU Magazine, winter / spring, 2005.

Issues and Challenges in Managing Generation Y Employees Issues and Challenges in Managing Generation Y Employees

Oxy Generation.com (2010), collected information from 5375 respondents in the world for its research report on Generation Y and the workplace, and it identified how important the workplace is in attracting, recruiting and retaining Generation Y workers between the age of 18 to 25 years old and what factors contribute to talent management. It identified that:

! The Generation Y values sustainability. The Generation Y is flexible, mobile, collaborative and unconventional.

! The Generation Y prioritizes opportunities to learn, work colleagues and corporate culture and values when it comes to deciding for which job to apply for.

! The Generation Y prefers workplaces in an urbanized location with access to social and commercial facilities, good public Infrastructure and the ability to use public transport or drive to work.

! The Generation Y prioritizes collaboration and interaction in the workplace and requires particularly access to dedicated team spaces as well as ample breakout spaces.

! The working environment of the Generation Y is a place they emotionally engage with, a space where they socialize in with other co-workers and a space which supports their health and well being.

! The Generation Y sees the workplace as a very important factor and values it as a place of learning and development.

! The Generation Y privileges access to their own desk rather than desk sharing or hot desking (hoteling).

While the financial benefits of flexible working are clear to business owners, work will have to be done with Generation Y to help them to trade dedicated desks and personalization for mobility and team oriented spaces. Mobile technology will be an unavoidable support here. The workplace can directly support and influence the Generation Y through a workplace that enables individuals and teams to collaborate and engage with each other, and human resource policies which actively promote flexible working and alternative ways of working. In this context, the following may be noted:

! The workplace is important in attracting and retaining the Generation Y.

! The type of workplace and its location influences the choice of a company.

! The workspace allocation and technological provisions contribute to productivity and creativity.

! The working arrangements must be flexible and adaptable to satisfy a work life balance they demand.

! The workplace must support both formal and informal collaborative engagement and interaction.

! The workplace contributes to the level of emotional engagement of individuals with their work.

5. Challenges of Generation Y

This section provides the detailed challenges in managing Generation Y employees.

5.1 Missing Skills

Today's Generation Y are more qualified than ever before. However, a degree is not enough and the days of a degree being a passport to employability are gone. There is need to focus on enhancing employability skills as most of the Generation Y have low employability skills. The Ashridge research from 2009 highlighted the following skill gaps:

! Instant gratification: according to the Pew Research Center (2012), 55 percent of the respondents agreed with a statement that in 2020 the brains of young people would be wired differently from those over 35, with good results for finding answers quickly and without shortcomings in their mental processes. But 42 percent of the respondents were pessimistic, agreeing with a second statement that in 2020 young technology users would be easily distracted, would lack deep thinking skills and would thirst only for instant gratification.

! Self-awareness: overall Generation Y seem to lack an understanding of the impact of their behavior and action on those around them and appear more self-centered than previous Generations.

! Self- management: Generation Y wants to accept responsibility and be self starters. However, there are some issues around time management, taking criticism on board and making time for reflective learning.

! Basic numeracy and literacy skills: consistently English and mathematical skills of Generation Y were highlighted as lacking (e.g. spotting rogue figures, written business communication).

! Independent thought: managers find Generation Y requires more support and hadholding and do not 'think outside the box' as much as they would like.

! Problem solving: Generation Y need to further develop skills in analysis of information and identifying solutions.

"Pragyaan: Journal of Management" Volume 11: Issue 1, June 2013 1312 "Pragyaan: Journal of Management" Volume 11: Issue 1, June 2013

4. Issues in Managing Generation Y

Organizations have had people from different age groups working for them. But never in history, have there been exhaustive discussion on the age groups. So, why is there a sudden interest in Generation Y alone? What is so special about them? Generation Y is a unique Generation in our history. According to S.V. Nathan (2011), article on “Getting HR ready for Generation Y: what should companies do differently” some of the reasons of this are:

! Generation Y members have come of age in a very child focused world. Many of them had Baby boomers as parents; boomers are as parents; boomers are as competitive for their children as they were for themselves. Boomers have worked long hours and are used to getting their own way, and they have been strong advocates for their children. Thus, Generation Y has grown up in a very structured, busy and over planned world. This has positively impacted their competitive spirit and result orientation.

! Boomers have made sure their children participate in all forms of lessons and activities, when they grew up. This participation in all activities has made them confident and optimistic, and has developed their urge to feel valued and wanted.

! This Generation combines the can-do attitude of veterans, the teamwork ethic of Boomers and the technological savviness of Generation X. For this group, the preferred learning conditions should combine teamwork and technology.

! Global work force solutions leader, Kelly Services has released a white paper on Generation Y. This paper reflects that meaningful work is most important to the Generation Y employee and that mentoring from managers helps a Generation Y employee to align his/her career goals. Once this is established, managers and employers will most likely find their Generation Y employees exhibiting a greater sense of responsibility, applying an "all or nothing" attitude towards the tasks that they are entrusted with.

Table 4. Workplace characteristics

Work Ethics and Values

Work is ------

Leadership Style

Interactive Style

Communication

Feedback and Rewards

Messages that Motivate

Work and Family Life

Veterans(1920-45)

Hard work, Respect authority, Sacrifice, Duty before fun, Adhere to rules

An obligation

Directive Command and control

Individual

Formal memo No

News is good news, Satisfaction in a job,

Well done

Your experience is respected

Never the twain shall meet

Baby Boomers (1946-1960)

Work aholics, Work efficiently, Crusading

causes, Personal fulfillment, Desire quality, Question

authority

An exciting adventure

Consensual Collegial

Team player, Loves to have meeting

In person

Don't appreciate it, Money, Title recognition

You are valued, You are needed

No balance, Work to live

Generation X (1961-1980)

Eliminate the task, self reliance, Want structure and

direction, Skeptical

A difficult challenge, A contract

Everyone is the same Challenge others,

Ask why

Entrepreneur

Direct Immediate

Sorry to interrupt, but how am I doing?

Freedom is the best reward

Do it your way, Forget the rules

Balance

Generation Y (1981-2000)

What's next, multitasking tenacity,

Entrepreneur, tolerance, Goal

oriented

A means to an end, Fulfillment

TBD*

Participative

E-mail, Voice mail

I want it at the push of button, Meaningful

work

Your will work with other bright and creative people

Balance

* As this group has not spent much time in the workforce, this characteristic is yet to be determined. Source: Gerge hammill (2005), FDU Magazine, winter / spring, 2005.

Issues and Challenges in Managing Generation Y Employees Issues and Challenges in Managing Generation Y Employees

Oxy Generation.com (2010), collected information from 5375 respondents in the world for its research report on Generation Y and the workplace, and it identified how important the workplace is in attracting, recruiting and retaining Generation Y workers between the age of 18 to 25 years old and what factors contribute to talent management. It identified that:

! The Generation Y values sustainability. The Generation Y is flexible, mobile, collaborative and unconventional.

! The Generation Y prioritizes opportunities to learn, work colleagues and corporate culture and values when it comes to deciding for which job to apply for.

! The Generation Y prefers workplaces in an urbanized location with access to social and commercial facilities, good public Infrastructure and the ability to use public transport or drive to work.

! The Generation Y prioritizes collaboration and interaction in the workplace and requires particularly access to dedicated team spaces as well as ample breakout spaces.

! The working environment of the Generation Y is a place they emotionally engage with, a space where they socialize in with other co-workers and a space which supports their health and well being.

! The Generation Y sees the workplace as a very important factor and values it as a place of learning and development.

! The Generation Y privileges access to their own desk rather than desk sharing or hot desking (hoteling).

While the financial benefits of flexible working are clear to business owners, work will have to be done with Generation Y to help them to trade dedicated desks and personalization for mobility and team oriented spaces. Mobile technology will be an unavoidable support here. The workplace can directly support and influence the Generation Y through a workplace that enables individuals and teams to collaborate and engage with each other, and human resource policies which actively promote flexible working and alternative ways of working. In this context, the following may be noted:

! The workplace is important in attracting and retaining the Generation Y.

! The type of workplace and its location influences the choice of a company.

! The workspace allocation and technological provisions contribute to productivity and creativity.

! The working arrangements must be flexible and adaptable to satisfy a work life balance they demand.

! The workplace must support both formal and informal collaborative engagement and interaction.

! The workplace contributes to the level of emotional engagement of individuals with their work.

5. Challenges of Generation Y

This section provides the detailed challenges in managing Generation Y employees.

5.1 Missing Skills

Today's Generation Y are more qualified than ever before. However, a degree is not enough and the days of a degree being a passport to employability are gone. There is need to focus on enhancing employability skills as most of the Generation Y have low employability skills. The Ashridge research from 2009 highlighted the following skill gaps:

! Instant gratification: according to the Pew Research Center (2012), 55 percent of the respondents agreed with a statement that in 2020 the brains of young people would be wired differently from those over 35, with good results for finding answers quickly and without shortcomings in their mental processes. But 42 percent of the respondents were pessimistic, agreeing with a second statement that in 2020 young technology users would be easily distracted, would lack deep thinking skills and would thirst only for instant gratification.

! Self-awareness: overall Generation Y seem to lack an understanding of the impact of their behavior and action on those around them and appear more self-centered than previous Generations.

! Self- management: Generation Y wants to accept responsibility and be self starters. However, there are some issues around time management, taking criticism on board and making time for reflective learning.

! Basic numeracy and literacy skills: consistently English and mathematical skills of Generation Y were highlighted as lacking (e.g. spotting rogue figures, written business communication).

! Independent thought: managers find Generation Y requires more support and hadholding and do not 'think outside the box' as much as they would like.

! Problem solving: Generation Y need to further develop skills in analysis of information and identifying solutions.

"Pragyaan: Journal of Management" Volume 11: Issue 1, June 2013 1312 "Pragyaan: Journal of Management" Volume 11: Issue 1, June 2013

! Team work : Generation Y struggle to move from individual marks awarded in university to the team focus of the workplace. They need to learn to work in a team.

! Business/customer awareness: Younger Generation had a lack of interest in, and understanding of, the foundations for business success, and building customer loyalty.

! Communication: Generation Y graduate struggle with oral communication, especially concerning 'difficult conversations' as well as clear written communications, and need support to develop these skills more than previous generations.

! Risk awareness and evaluation: According to managers, graduates seem less able to judge risks in business than their peers from previous Generations.

These skills underpin effectiveness at work. Today's Generations do have many of these employability skills, but they are not universal and not the level that employers are seeking from the group as a whole. Hence, many employers have to invest in expensive remedial training for their new graduates.

5.2 Gaps in Expectation of Generation Y

There are also large gaps in expectations between Generation Y and their managers. According Institute of Leadership and Management, 2011, highlights a number of areas of disconnect:

! Generation Y have high expectations relating to salary, job status and career progression. A significant proportion of our employed graduate respondents stated that salary (45%), Job status (30%), and achievement in work (28%) are below their personal expectations and over half (57%) plan to leave their jobs within two years.

! Work life balance: Despite their high career expectations, Generation Y do not buy into the long working hours culture in the same way their managers do.

! In terms of relationships, Generation Y want a manager who is a coach (56%). Although 75% of managers believe that they are fulfilling the role of a coach, only 25 % of Generation Y agree.

! Generation Y value a high level of freedom and independence. However, managers want Generation Y to gain experience before major work is delegated to them and 50% see regular feedback about performance and 49% see setting clear objectives as the most important managerial behaviors.

6. Role of Managers in Managing Generation Y

The managers need to play a vital role in balancing organizational expectations and employee's expectations and they need use tips for better management, a few tips are listed below.

! A more inclusive and collaborative way of leading; as “command and control” leadership is likely to negatively impact on staff attraction and retention.

! Listening to people in the organization at all levels and from all areas. People want to be heard, especially Generation X and Generation Y.

! Communicating more honestly and regularly with people throughout the organization. They want to know how the organization is doing, not only the good times, but also when things are tough, and what they can proactively do to help.

! Creating highly effective teams where people collaborate and feel a “sense of belonging”, and are given the opportunity to demonstrate their true potential.

7. Tips for Managing Generation Y

Generation Y expect, challenging work assignments, accelerated career growth, socially responsible workplaces, flexible work environments, freedom, and collaboration and innovation from their jobs and employers. The management may follow the following tips for managing Generation Y very effectively.

! According to Ms. Savneet Shergill, Head-Talent Acquisition, Dell, “The biggest expectation that students have today is whether the organization will support them with the training required to perform effectively. Another important aspect is to understand their deficiencies and guide them to perform their best. The other expectations are whether the organization will enable them to launch their career successfully, the work culture within the organisation and the ability to move between roles/functions to provide them with an exposure that in turn creates opportunities for them to grow faster.”

! Mr. Syed Raza, Head Recruitments, Fiserv India stands by flexible job arrangements. “Today's Generation believes in work hard and party hard! They are better organised to manage work life balance and expect the employer to have processes and policies that encourage this way of working and lifestyle.” According to statistics too, about 85% of Generation Y members want to spend 30-70% of their time working from home.

Issues and Challenges in Managing Generation Y Employees Issues and Challenges in Managing Generation Y Employees

! According to Karanath , MD, Kelly Services India, to attract and retain young talents, companies need to remember that Generation Y do things differently. It is important to take time to explain to a Generation Y employee how his work fits into the bigger scheme of things, and how it will impact the organization. If he achieves or exceeds the desired results using his unique combination of smartness and shortcuts, everyone benefits".

7.1 Other tips for Managing Generation Y Employees:

Based on Business Insider article on “6 tips for managing employees” and some other relevant articles, additional tips for managing Generation Y are given below.

! Be flexible: The busiest Generation ever isn't going to give up its activities just because of jobs. A rigid schedule is a sure-fire way to lose your Generation-Y employees. Take advantage of the lessons already learned by many startups, who have flexible work weeks, flexible start times, and work at home opportunities.

! Show respect to everyone: Generation Y expects their approaches and ideas to be treated with respect, even though they are new and inexperienced. Assign projects to teams of people who are measured as a group for specific goals. They love praise as the highest sign of respect, so use it constructively.

! Make the workplace fun and enjoyable: A little humor, a bit of silliness, even a little irreverence will make your work environment more attractive. Lay out the office so that Generation Y finds it easy to interact with peers and share ideas.

! Give feedback quickly: Due to the role of technology in their lives, Generation Y expects both immediate and constant feedback. Tell them how they are doing on a regular basis don't wait until review time.

! Watch out for itchy feet: Nearly 90% of Generation Y describe themselves as loyal to their employer, but that doesn't mean they will stick with you forever. They don't believe in or expect a 'job for life'. On top of that, Generation Y are highly adept at reinvention so if their needs are not met, they will reinvent themselves and move on.

! Provide challenges: Their expectations of what a job is have changed significantly, and they are not content to turn up, work 8 hours and go home. Check that the Generation Y in your department are significantly challenged.

! Make work fun: Generation Y want to enjoy their work. Again, this is about different perceptions of what work means: spending more time with colleagues than with family and friends means that work people become friends. The environment at the office is crucially important to this Generation, so make it welcoming and fun.

! Be family friendly: Both Generation Y women and men expect to remain in employment once starting a family. Make it easy for them, and the family friendly policies will also improve the working lives of your older employees. Generation Y believe they have more choice about work-life balance than previous Generations, and if they don't have it at your company they are likely to look for it elsewhere.

! Encourage technology: Companies need to allow Generation Y to leverage their technology skills. That's Twitter, Facebook, LinkedIn and so on. Don't restrict access to these sites because you think this is 'socialising or time away from work. Generation Y often does not have sharp boundaries between work and social and often integrate work into their social experience and thus help grow grass-roots company visibility.

! Offer personal and professional development: Generation Y women (and men) are interested in continually improving and developing themselves. They want the autonomy to shape their own careers, and that means providing the tools to allow them to develop personally and professionally, so they have options around where they want to go.

! Allow international mobility: International assignments are sometimes seen as the preserve of older, more experienced employees most notably, men. Generation Y employees are highly mobile, which is partly due to the sense that jobs are not for life, any more. They go where the work is, and often as a result of university and online connections have friends and contacts overseas. Generation Y see themselves as part of the global village and will appreciate being considered for international assignments.

! Provide real leadership: This Generation has grown up with parents who were role models, and provided structure and supervision. Generation Y is expecting to find leaders with honesty and integrity. It's not that they don't want to be leaders themselves; they'd just like some great role models first.

! Foster family relationship with workers: Generation Y says they want to work with people they click with. They like being friends with coworkers. Consider setting up a mentoring and

"Pragyaan: Journal of Management" Volume 11: Issue 1, June 2013 1514 "Pragyaan: Journal of Management" Volume 11: Issue 1, June 2013

! Team work : Generation Y struggle to move from individual marks awarded in university to the team focus of the workplace. They need to learn to work in a team.

! Business/customer awareness: Younger Generation had a lack of interest in, and understanding of, the foundations for business success, and building customer loyalty.

! Communication: Generation Y graduate struggle with oral communication, especially concerning 'difficult conversations' as well as clear written communications, and need support to develop these skills more than previous generations.

! Risk awareness and evaluation: According to managers, graduates seem less able to judge risks in business than their peers from previous Generations.

These skills underpin effectiveness at work. Today's Generations do have many of these employability skills, but they are not universal and not the level that employers are seeking from the group as a whole. Hence, many employers have to invest in expensive remedial training for their new graduates.

5.2 Gaps in Expectation of Generation Y

There are also large gaps in expectations between Generation Y and their managers. According Institute of Leadership and Management, 2011, highlights a number of areas of disconnect:

! Generation Y have high expectations relating to salary, job status and career progression. A significant proportion of our employed graduate respondents stated that salary (45%), Job status (30%), and achievement in work (28%) are below their personal expectations and over half (57%) plan to leave their jobs within two years.

! Work life balance: Despite their high career expectations, Generation Y do not buy into the long working hours culture in the same way their managers do.

! In terms of relationships, Generation Y want a manager who is a coach (56%). Although 75% of managers believe that they are fulfilling the role of a coach, only 25 % of Generation Y agree.

! Generation Y value a high level of freedom and independence. However, managers want Generation Y to gain experience before major work is delegated to them and 50% see regular feedback about performance and 49% see setting clear objectives as the most important managerial behaviors.

6. Role of Managers in Managing Generation Y

The managers need to play a vital role in balancing organizational expectations and employee's expectations and they need use tips for better management, a few tips are listed below.

! A more inclusive and collaborative way of leading; as “command and control” leadership is likely to negatively impact on staff attraction and retention.

! Listening to people in the organization at all levels and from all areas. People want to be heard, especially Generation X and Generation Y.

! Communicating more honestly and regularly with people throughout the organization. They want to know how the organization is doing, not only the good times, but also when things are tough, and what they can proactively do to help.

! Creating highly effective teams where people collaborate and feel a “sense of belonging”, and are given the opportunity to demonstrate their true potential.

7. Tips for Managing Generation Y

Generation Y expect, challenging work assignments, accelerated career growth, socially responsible workplaces, flexible work environments, freedom, and collaboration and innovation from their jobs and employers. The management may follow the following tips for managing Generation Y very effectively.

! According to Ms. Savneet Shergill, Head-Talent Acquisition, Dell, “The biggest expectation that students have today is whether the organization will support them with the training required to perform effectively. Another important aspect is to understand their deficiencies and guide them to perform their best. The other expectations are whether the organization will enable them to launch their career successfully, the work culture within the organisation and the ability to move between roles/functions to provide them with an exposure that in turn creates opportunities for them to grow faster.”

! Mr. Syed Raza, Head Recruitments, Fiserv India stands by flexible job arrangements. “Today's Generation believes in work hard and party hard! They are better organised to manage work life balance and expect the employer to have processes and policies that encourage this way of working and lifestyle.” According to statistics too, about 85% of Generation Y members want to spend 30-70% of their time working from home.

Issues and Challenges in Managing Generation Y Employees Issues and Challenges in Managing Generation Y Employees

! According to Karanath , MD, Kelly Services India, to attract and retain young talents, companies need to remember that Generation Y do things differently. It is important to take time to explain to a Generation Y employee how his work fits into the bigger scheme of things, and how it will impact the organization. If he achieves or exceeds the desired results using his unique combination of smartness and shortcuts, everyone benefits".

7.1 Other tips for Managing Generation Y Employees:

Based on Business Insider article on “6 tips for managing employees” and some other relevant articles, additional tips for managing Generation Y are given below.

! Be flexible: The busiest Generation ever isn't going to give up its activities just because of jobs. A rigid schedule is a sure-fire way to lose your Generation-Y employees. Take advantage of the lessons already learned by many startups, who have flexible work weeks, flexible start times, and work at home opportunities.

! Show respect to everyone: Generation Y expects their approaches and ideas to be treated with respect, even though they are new and inexperienced. Assign projects to teams of people who are measured as a group for specific goals. They love praise as the highest sign of respect, so use it constructively.

! Make the workplace fun and enjoyable: A little humor, a bit of silliness, even a little irreverence will make your work environment more attractive. Lay out the office so that Generation Y finds it easy to interact with peers and share ideas.

! Give feedback quickly: Due to the role of technology in their lives, Generation Y expects both immediate and constant feedback. Tell them how they are doing on a regular basis don't wait until review time.

! Watch out for itchy feet: Nearly 90% of Generation Y describe themselves as loyal to their employer, but that doesn't mean they will stick with you forever. They don't believe in or expect a 'job for life'. On top of that, Generation Y are highly adept at reinvention so if their needs are not met, they will reinvent themselves and move on.

! Provide challenges: Their expectations of what a job is have changed significantly, and they are not content to turn up, work 8 hours and go home. Check that the Generation Y in your department are significantly challenged.

! Make work fun: Generation Y want to enjoy their work. Again, this is about different perceptions of what work means: spending more time with colleagues than with family and friends means that work people become friends. The environment at the office is crucially important to this Generation, so make it welcoming and fun.

! Be family friendly: Both Generation Y women and men expect to remain in employment once starting a family. Make it easy for them, and the family friendly policies will also improve the working lives of your older employees. Generation Y believe they have more choice about work-life balance than previous Generations, and if they don't have it at your company they are likely to look for it elsewhere.

! Encourage technology: Companies need to allow Generation Y to leverage their technology skills. That's Twitter, Facebook, LinkedIn and so on. Don't restrict access to these sites because you think this is 'socialising or time away from work. Generation Y often does not have sharp boundaries between work and social and often integrate work into their social experience and thus help grow grass-roots company visibility.

! Offer personal and professional development: Generation Y women (and men) are interested in continually improving and developing themselves. They want the autonomy to shape their own careers, and that means providing the tools to allow them to develop personally and professionally, so they have options around where they want to go.

! Allow international mobility: International assignments are sometimes seen as the preserve of older, more experienced employees most notably, men. Generation Y employees are highly mobile, which is partly due to the sense that jobs are not for life, any more. They go where the work is, and often as a result of university and online connections have friends and contacts overseas. Generation Y see themselves as part of the global village and will appreciate being considered for international assignments.

! Provide real leadership: This Generation has grown up with parents who were role models, and provided structure and supervision. Generation Y is expecting to find leaders with honesty and integrity. It's not that they don't want to be leaders themselves; they'd just like some great role models first.

! Foster family relationship with workers: Generation Y says they want to work with people they click with. They like being friends with coworkers. Consider setting up a mentoring and

"Pragyaan: Journal of Management" Volume 11: Issue 1, June 2013 1514 "Pragyaan: Journal of Management" Volume 11: Issue 1, June 2013

reverse mentoring program to foster relationships between workers of different Generations.

8. Conclusion

Generation Y expect challenging work assignments, accelerated career growth, socially responsible workplaces, flexible work environments, freedom, and collaboration and innovation from their jobs and employers. In order to improve retention and encourage more productive working relationship, there is an urgent need to bridge the gaps between what Generation Y expect and what organizations provide. The organizations need to review their recruitment strategy and to match the recruits to the internal culture as well as articulate more clearly on career development and expectations of work. The primary drivers through which we can retain this young employee segment is by providing the right set of value propositions like personalised attention through their assigned mentors, operational freedom, respect, care and inclusiveness as an organisational DNA, adequate reward and recognition both for performance and behavioural demonstration, learning opportunities through exposure in diverse business environment early in their career, and value based organisation culture, which keeps them excited at the workplace.

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Issues and Challenges in Managing Generation Y Employees Issues and Challenges in Managing Generation Y Employees

!

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smartphones before getting out of bed, the Indian express, Thu Dec 13 2012.

! the times of India 'Expand education access to Generation Y', the times of India, Feb 24, 2013, 04.08AM IST

! Wals ton , Sandra Ford . Dis t ingu i sh ing Communication Approaches Across Generations, 1999 (onl ine publ icat ion), ht tp://www. walstoncourage.com/pages/articles/Generation.htm.

! Zemke, Ron; Raines, Claire; Filipczak, Bob. Generations at Work: Managing the Clash of Veterans, Boomers, Xers, and Nexters in Your Workplace. New York, N.Y.: American Management Association, 2000.

! http://phobos.ramapo.edu/~seisner/Managing.htm.

the Indian express, Majority of Generation Y use

"Pragyaan: Journal of Management" Volume 11: Issue 1, June 2013 1716 "Pragyaan: Journal of Management" Volume 11: Issue 1, June 2013

reverse mentoring program to foster relationships between workers of different Generations.

8. Conclusion

Generation Y expect challenging work assignments, accelerated career growth, socially responsible workplaces, flexible work environments, freedom, and collaboration and innovation from their jobs and employers. In order to improve retention and encourage more productive working relationship, there is an urgent need to bridge the gaps between what Generation Y expect and what organizations provide. The organizations need to review their recruitment strategy and to match the recruits to the internal culture as well as articulate more clearly on career development and expectations of work. The primary drivers through which we can retain this young employee segment is by providing the right set of value propositions like personalised attention through their assigned mentors, operational freedom, respect, care and inclusiveness as an organisational DNA, adequate reward and recognition both for performance and behavioural demonstration, learning opportunities through exposure in diverse business environment early in their career, and value based organisation culture, which keeps them excited at the workplace.

References

!

quick, here & now!, Business Line, Nov. 6, 2011.

! Avril Henry (2011), Generation Y Exposed an Australian perspective, NHRD Network Journal, October, Vol. 4, Issue.4, page no.22-26.

! Deccan Herald (2011), Generation Y wants fast success, faster money: Study, the Deccan Herald,New Delhi, July 12, 2011.

! Des Dearlove (2009), Managing the Generation gap, Forbs India, Nov 20, 2009.

! Dr. Carina Paine Schofield, Sue Honore and Narendra Laljani (2011), Generation Y: Bridging the Gulf to make them tomorrow's leaders” NHRD Network Journal, October, Vol. 4, Issue.4, page no.13-18.

! Dr. Ije Jidenma (2011), Getting HR ready for Generation Y: an African Perspective, NHRD Network Journal, October, Vol. 4, Issue.4, page no.19-21.

! Elizabeth Harrin (2009), 10 Tips for Managing Generation Y, http://www.theglasshammer.com, September 2nd, 2009, London.

! Geetanjali Shukla (2012), KM Birla and Aroon Purie on Generation Y in the workforce, India Today, Mumbai, February 14, 2012.

A. J. Vinayak (2011), For Generation Y, be simple,

!

comments like these, FDUMagazine, winter / spring, 2005.

! Generation Y prefers social networks for on-the-go connection: TCS survey

! Jhimli Mukherjee Pandey & Ankita Chaudhuri (2012), Generation-Y dreams big, earn big, The Times of India, Jan 19, 2012.

! Johnson controls & Haworth (2010), “Generation Y and the Workplace Annual Report 2010” Global Work Place Innovation, oxyGeneration.com, 2010.

! Karp, Hank; Fuller, Connie; Sirias, Danilo. Bridging the Boomer Xer Gap: Creating Authentic Teams for High Performance at Work. Palo Alto, Calif.: Davies-Black Publishing, 2002.

! Kritika Kapoor “The desi definition of Generation X, Y, Z”, The Time of India, 16, 2012.

! Kersten, Denise. “Today's Generations Face New Communications Gap,” USA Today, November 15, 2002.

! K. Ganesan (2011), Generation Y Leading the course, The Hindu Survey of Indian Industry 2011, The Hindu, Page No. 208-210.

! Lancaster, Lynne C.; Stillman, David. When Generations Collide: Who They Are, Why They Clash, How to Solve the Generational Puzzle at Work. HarperCollins Publishers Inc., 2002.

! Mini Joseph Tejaswi, Generation Y are serious workers with high sense of responsibility: Report, The Times of India, Sep 27, 2012.

! McKinsey (2008), Making Talent a Strategic Priority, McKinsey Quarterly, 2008.

! NS Rajan (2011), Generation Y: A passing fax or reality?, NHRD Network Journal, October, Vol. 4, Issue.4, page no.82 86.

! Nupur Amarnath & Ravi Teja Sharma (2010), Generation Y writes new rules of Indian workforce, The Economic Times, November 21, 2010.

! Nambiar Seema Arora “Young India: Developing, Engaging and Retaining Generation Y Talent, Forbes, Mar 4, 2013.

! Payal Chanania “Managing the Generation Y workforce” The Hindu, November 28, 2012.

! Sago, Brad. “Uncommon Threads: Mending the Generation Gap at Work,” Executive Update, July 2000.

Gerge hammill (2005), think of the last heard

Issues and Challenges in Managing Generation Y Employees Issues and Challenges in Managing Generation Y Employees

!

Y is a different ball game, The Economic Times, Nov 12, 2010.

! Saundarya Rajesh (2011), Unlocking the Value, The Hindu Survey of Indian Industry 2011, the Hindu, page No. 313-317.

! Sheetal Srivastava (2008), Generation Y: The future of India Inc, The Times of India, 13 Aug, 2008.

! Shivani Shinde “Generation Y needs to stay connected, drives every facet of their lives'” Business standard, December 13, 2012

! S. V. Nathan (2011), Getting HR ready for Generation Y: what should companies do differently, NHRD Network Journal, October, Vol. 4, Issue.4, page no.70-76.

! The Indian Express (2012), Generation Y is vacation deprived: Study, The Indian Express, Apr 06 2011.

! The Indian Express (2012), Wired world to be boon, bane for Generation Y, The Indian Express, 29th February, 2012.

Sangeeth Varghese (2012), Managing Generation !

smartphones before getting out of bed, the Indian express, Thu Dec 13 2012.

! the times of India 'Expand education access to Generation Y', the times of India, Feb 24, 2013, 04.08AM IST

! Wals ton , Sandra Ford . Dis t ingu i sh ing Communication Approaches Across Generations, 1999 (onl ine publ icat ion), ht tp://www. walstoncourage.com/pages/articles/Generation.htm.

! Zemke, Ron; Raines, Claire; Filipczak, Bob. Generations at Work: Managing the Clash of Veterans, Boomers, Xers, and Nexters in Your Workplace. New York, N.Y.: American Management Association, 2000.

! http://phobos.ramapo.edu/~seisner/Managing.htm.

the Indian express, Majority of Generation Y use

"Pragyaan: Journal of Management" Volume 11: Issue 1, June 2013 1716 "Pragyaan: Journal of Management" Volume 11: Issue 1, June 2013

1. Introduction

Information and Communication Technology (ICT) has changed the working of banks and other financial institutions worldwide. Banks in India have invested heavily on deployment of information and communication technology (ICT) in the past one decade. ICT over the years has become a business driver rather than a business enabler. The State Bank of India (SBI) is the oldest and largest public sector bank in India. Till 1992, it has just one fully computerised branch. Due to the implementation of more modern centralized core processing systems by private sector banks it started losing its market share. In 2002, it began the largest implementation of a centralised core system ever undertaken in the banking industry to remain competitive. Today, SBI has 15,000 computerized branches and more than 22,000 ATMs across the country. It has now 8.96 million internet banking customers out of the 153.9 million saving bank account holders.With increasing competition among banks, customers are also becoming more discerning and demanding.The traditional Banking with brick and mortar structure is now getting converted into click and portal model, thereby giving a concept of virtual banking a real shape. At the time of manual transactions, an account holder had to wait for hours at the bank counters for getting a draft or for withdrawing his own money. Now, for banking transactions customers are no longer prepared to wait for

information or services. They want their banking information and services at their fingertips by their chosen delivery channel. With the advent of Core banking solutions, customers can open an account at one location and can deposit a cheque, check bank balance, withdraw cash, get demand draft, get account statement, transfer funds, and perform other transactions from various locations in different cities. E-banking is now becoming a large part of financial services. As the prime objective of Computerization is to serve customers, the present study aims to evaluate customers’ perception with regard to ICT based services offered by State bank of India on certain parameters, identified through literature review.

2. Literature review

A review of previous studies relevant to the present study was undertaken. According to Abubakar et al (2012), Information and communication technology (ICT) has in particular brought a complete paradigm shift on the bank's performance and on the customer service delivery in the banking industry. Customer satisfaction and customer service delivery is a key parameter for banks to ascertain how effectively the web furthers their objectives of customer acquisition, retention and increased share of wallet. According to Kanhaiya et al (2011), efficient customer service helps a bank to attract and retain customers. To meet customer expectations, banks now offer a broad

ABSTRACT

ICT has taken the center stage in almost every aspect of human endeavour. Banking services are not in

exception. For the last one decade banks have invested heavily on deployment of ICT. As the prime

objective of Computerization is to serve customers effectively, this paper aims to evaluate customer's

perception with regard to ICT based services offered by State bank of India, the oldest and largest public

sector bank in India. Four parameters namely: In-branch services, ATM services, Website convenience &

security services and E-banking transaction services were considered for the study. It was predicted at the

start of the study that on all the four parameters identified, the outcome will be positive. The result shows

that for all except ATM services, the results are in the predicted direction.

Key Words: ICT, Banking industry, Customers’ perception.

Customers' Perception of ICT Based Services of State Bank of India

Vivek Kumar Pathak* Dr. Vishal Shukla**

Dr. Mitushi Singh***

Research Scholar, Faculty of Management Studies, Banaras Hindu University, Varanasi.**Assistant Professor, School of Management, IMS UNISON University, Dehradun*** Assistant Professor, Amity School of Business, Amity University, Noida.

"Pragyaan: Journal of Management" Volume 11: Issue 1, June 2013 1918 "Pragyaan: Journal of Management" Volume 11: Issue 1, June 2013

range of deposit, investment and credit products through diverse distribution channels including upgraded branches, ATMs, telephone and Internet. According to Saraswat (2013), E-banking is now becoming a large part of financial services. Though any type of transactions can be handled through E-banking, in the initial phase, most of the basic banking transactions can be performed conveniently through it. Some of the basic functions include account inquiry, fund transfer, payment of utility bills (Electricity, Water, and Telephone bills etc.), online payment for transactions, request for issuance of cheque book, draft etc. Woldie et al (2008) classified E-banking services on the basis of service sophistication. According to him, E-banking services range from information-push services where customers receive information about the bank, its products and services, to information-download services where customers can download account information and forms to full-transaction services where customers can perform most banking transactions (such as transfer between accounts, bill payment, third party payment, card and loan applications, etc.) electronically. According to Selvi (2012), the introduction of automated teller machines (ATMs) has enabled customers to do banking without visiting the bank branch. Using an ATM, customers can access their bank accounts in order to make cash withdrawals, credit card cash advances, and check their account balances as well as purchase prepaid cell phone credit.

3. Scope of the Study

The present study has tried to examine customers’ perception with regard to ICT based services offered by State bank of India. Out of the three groups of banks- public sector, private sector and foreign sector banks, only one bank, which is the largest public sector bank in India, has been selected for the study. Apart from this, only those variables that fall under the category of high-tech services have been considered.

4. Objective of the study: The present study is aimed at evaluating customers’ perception with regard to ICT based services offered by State bank of India. Customers’ perception is evaluated on the basis of four group-class variables. In-branch services, ATM services, Website convenience & security services and E-banking transaction services.

5. Research Methodology

Methodology is an essential part of research in order to find answers to the research objectives. The objectives and the procedure followed to collect, capture, process and analyse data is discussed below.

5.1 Variables used in the study: Customer services are intangible and can be easily duplicated. They can be classified as high-touch services and high-tech services. High-touch services are mostly dependent on people producing the services whereas high-tech services are

Table 1. Variables used in the study

Group Class (ITC Based Services)

A. IN_BRANCH_SR (In-Branch services)

B. ATM_SR (ATM services)

C. WEB_COSEC_SR (Website Convenience & Security services)

D. TRANSAC_SR (E-Banking Transaction Services)

Components

1. INB_TM_AC2. INB_DEP_CAS3. INB_WITHD4. INB_CLR_CHQ5. INB_DD

1. ATM_LOCN2. ATM_FUNC3. ATM_NUM4. ATM_CRD

1. WBS_FUN2. WBS_NAV3. WBS_LAN4. WBS_UPDT5. WBS_MSUINF6. WBS_CONFD7. WBS_CRDINF

1. EBT_ACIN2. EBT_FUNDTRF3. EBT_PMUTI4. EBT_PMMRCH5. EBT_RQDDCH

Meaning of Abbreviations Used

“Opening of account”“Cash deposit”“Cash withdrawal”“Clearance of Cheques”“Issuing of Demand draft”

“locational Convenience of ATMs”“Functioning of ATMs”“Number of ATMs”“Crowding at ATM Booths”

“Functioning of Website”“Navigation and Simplicity of Website”“language of Website”“Updated technology for E-banking”“Misuse of Information”“Confidentiality of online transactions”“Credit/Debit card Information security”

“Account Information”“Fund transfer”“Payment of utility bills”“Payment to merchants”“Request and intimation for DD & Cheques"

Customer's Perception of ICT Based Services of State Bank of India

1. Introduction

Information and Communication Technology (ICT) has changed the working of banks and other financial institutions worldwide. Banks in India have invested heavily on deployment of information and communication technology (ICT) in the past one decade. ICT over the years has become a business driver rather than a business enabler. The State Bank of India (SBI) is the oldest and largest public sector bank in India. Till 1992, it has just one fully computerised branch. Due to the implementation of more modern centralized core processing systems by private sector banks it started losing its market share. In 2002, it began the largest implementation of a centralised core system ever undertaken in the banking industry to remain competitive. Today, SBI has 15,000 computerized branches and more than 22,000 ATMs across the country. It has now 8.96 million internet banking customers out of the 153.9 million saving bank account holders.With increasing competition among banks, customers are also becoming more discerning and demanding.The traditional Banking with brick and mortar structure is now getting converted into click and portal model, thereby giving a concept of virtual banking a real shape. At the time of manual transactions, an account holder had to wait for hours at the bank counters for getting a draft or for withdrawing his own money. Now, for banking transactions customers are no longer prepared to wait for

information or services. They want their banking information and services at their fingertips by their chosen delivery channel. With the advent of Core banking solutions, customers can open an account at one location and can deposit a cheque, check bank balance, withdraw cash, get demand draft, get account statement, transfer funds, and perform other transactions from various locations in different cities. E-banking is now becoming a large part of financial services. As the prime objective of Computerization is to serve customers, the present study aims to evaluate customers’ perception with regard to ICT based services offered by State bank of India on certain parameters, identified through literature review.

2. Literature review

A review of previous studies relevant to the present study was undertaken. According to Abubakar et al (2012), Information and communication technology (ICT) has in particular brought a complete paradigm shift on the bank's performance and on the customer service delivery in the banking industry. Customer satisfaction and customer service delivery is a key parameter for banks to ascertain how effectively the web furthers their objectives of customer acquisition, retention and increased share of wallet. According to Kanhaiya et al (2011), efficient customer service helps a bank to attract and retain customers. To meet customer expectations, banks now offer a broad

ABSTRACT

ICT has taken the center stage in almost every aspect of human endeavour. Banking services are not in

exception. For the last one decade banks have invested heavily on deployment of ICT. As the prime

objective of Computerization is to serve customers effectively, this paper aims to evaluate customer's

perception with regard to ICT based services offered by State bank of India, the oldest and largest public

sector bank in India. Four parameters namely: In-branch services, ATM services, Website convenience &

security services and E-banking transaction services were considered for the study. It was predicted at the

start of the study that on all the four parameters identified, the outcome will be positive. The result shows

that for all except ATM services, the results are in the predicted direction.

Key Words: ICT, Banking industry, Customers’ perception.

Customers' Perception of ICT Based Services of State Bank of India

Vivek Kumar Pathak* Dr. Vishal Shukla**

Dr. Mitushi Singh***

Research Scholar, Faculty of Management Studies, Banaras Hindu University, Varanasi.**Assistant Professor, School of Management, IMS UNISON University, Dehradun*** Assistant Professor, Amity School of Business, Amity University, Noida.

"Pragyaan: Journal of Management" Volume 11: Issue 1, June 2013 1918 "Pragyaan: Journal of Management" Volume 11: Issue 1, June 2013

range of deposit, investment and credit products through diverse distribution channels including upgraded branches, ATMs, telephone and Internet. According to Saraswat (2013), E-banking is now becoming a large part of financial services. Though any type of transactions can be handled through E-banking, in the initial phase, most of the basic banking transactions can be performed conveniently through it. Some of the basic functions include account inquiry, fund transfer, payment of utility bills (Electricity, Water, and Telephone bills etc.), online payment for transactions, request for issuance of cheque book, draft etc. Woldie et al (2008) classified E-banking services on the basis of service sophistication. According to him, E-banking services range from information-push services where customers receive information about the bank, its products and services, to information-download services where customers can download account information and forms to full-transaction services where customers can perform most banking transactions (such as transfer between accounts, bill payment, third party payment, card and loan applications, etc.) electronically. According to Selvi (2012), the introduction of automated teller machines (ATMs) has enabled customers to do banking without visiting the bank branch. Using an ATM, customers can access their bank accounts in order to make cash withdrawals, credit card cash advances, and check their account balances as well as purchase prepaid cell phone credit.

3. Scope of the Study

The present study has tried to examine customers’ perception with regard to ICT based services offered by State bank of India. Out of the three groups of banks- public sector, private sector and foreign sector banks, only one bank, which is the largest public sector bank in India, has been selected for the study. Apart from this, only those variables that fall under the category of high-tech services have been considered.

4. Objective of the study: The present study is aimed at evaluating customers’ perception with regard to ICT based services offered by State bank of India. Customers’ perception is evaluated on the basis of four group-class variables. In-branch services, ATM services, Website convenience & security services and E-banking transaction services.

5. Research Methodology

Methodology is an essential part of research in order to find answers to the research objectives. The objectives and the procedure followed to collect, capture, process and analyse data is discussed below.

5.1 Variables used in the study: Customer services are intangible and can be easily duplicated. They can be classified as high-touch services and high-tech services. High-touch services are mostly dependent on people producing the services whereas high-tech services are

Table 1. Variables used in the study

Group Class (ITC Based Services)

A. IN_BRANCH_SR (In-Branch services)

B. ATM_SR (ATM services)

C. WEB_COSEC_SR (Website Convenience & Security services)

D. TRANSAC_SR (E-Banking Transaction Services)

Components

1. INB_TM_AC2. INB_DEP_CAS3. INB_WITHD4. INB_CLR_CHQ5. INB_DD

1. ATM_LOCN2. ATM_FUNC3. ATM_NUM4. ATM_CRD

1. WBS_FUN2. WBS_NAV3. WBS_LAN4. WBS_UPDT5. WBS_MSUINF6. WBS_CONFD7. WBS_CRDINF

1. EBT_ACIN2. EBT_FUNDTRF3. EBT_PMUTI4. EBT_PMMRCH5. EBT_RQDDCH

Meaning of Abbreviations Used

“Opening of account”“Cash deposit”“Cash withdrawal”“Clearance of Cheques”“Issuing of Demand draft”

“locational Convenience of ATMs”“Functioning of ATMs”“Number of ATMs”“Crowding at ATM Booths”

“Functioning of Website”“Navigation and Simplicity of Website”“language of Website”“Updated technology for E-banking”“Misuse of Information”“Confidentiality of online transactions”“Credit/Debit card Information security”

“Account Information”“Fund transfer”“Payment of utility bills”“Payment to merchants”“Request and intimation for DD & Cheques"

Customer's Perception of ICT Based Services of State Bank of India

"Pragyaan: Journal of Management" Volume 11: Issue 1, June 2013 2120 "Pragyaan: Journal of Management" Volume 11: Issue 1, June 2013

based on the use of automated systems, information technology and other type of physical resources. Based on literature review and existing practices of electronic banking, four group-classes of variables were identified. All these identified variables fall under the category of high-tech services. High-touch and advanced core banking service variables were excluded from the study (Table 1).

5.2 Predictions (Expected outcome of the study) about customer's perception with regard to ICT based services: With so much heavy investment and deployment of ICT in SBI in the past one decade, it is predicted that for all the four group-class variables (In-branch services, ATM services, Website convenience & security services, E-banking transaction services), the perception of customers is positive (+).

5.3 Sampling & Questionnaire Design: A non-probability, convenience sampling method is used to select customers of SBI making use of both ATM and E-banking transaction services. A total of 150 respondents were approached, out of which 120 completed responses are used. For the final study, a structured questionnaire consisting of different sections is compiled in accordance with the conceptual framework and study objectives. The various sections dealt with identified four group-class variables and demographic information. A Likert-type scale varying from 1 to 5 was used to measure the degree

to which the variables under study vary with 1 = strongly disagree and 5 = strongly agree.The primary data was collected from sample customers from sample branches (two) of State Bank of India (Varanasi city) with the help of questionnaire. The data obtained was analysed using various statistical tools such as mean, standard deviation and't' test using SPSS package.

6. Results and discussion: The results obtained from the study are presented here.

6.1 Banking profile of customers: The Banking profile of customers reveals that 60 % of the customers maintain savings account, 30% current account and 10% maintain both types of accounts with SBI. 6% of them are having banking experience of more than 10 years, 36% of 5 to 10 years, 46% are having banking experience of 1 to 5 years whereas 12% are having banking experience of less than 1 year. 75 % of the respondents have E-banking experience ranging between 1-5 years.

6.2 Descriptive statistics and t-test results:

The relevant descriptive statistics are given in Table-2

Group-class variable A-In-branch services: For In-branch services positive perception of customers was predicted. With a mean value of 3.53 it is ranked third in the selected four group-class variables, but the results are in predicted direction and significant (p-value .000<.05).

Table 2. Descriptive statistics and One sample t-test results (N=120, df=119)

GroupClass

6

A. IN_BRANCH_SR

B. ATM_SR

C. WEB_COSEC_SR

Predicted Direction & Outcome

In Predicted direction Positive(+) Significant

Not in predicted directionNegative (-) Not Significant

In Predicted direction Positive(+) Significant

In Predicted direction Positive(+) Significant

Components

1. INB_TM_AC2. INB_DEP_CAS3. INB_WITHD4. INB_CLR_CHQ5. INB_DD

1. ATM_LOCN2. ATM_FUNC3. ATM_NUM4. ATM_CRD

1. WBS_FUN2. WBS_NAV3. WBS_LAN4. WBS_UPDT5. WBS_MSUINF6. WBS_CONFD7. WBS_CRDINF

1. EBT_ACIN2. EBT_FUNDTRF3. EBT_PMUTI4. EBT_PMMRCH5. EBT_RQDDCH

Mean

3.503.343.303.713.80

2.702.973.102.78

3.733.433.653.143.904.094.23

3.953.914.033.95 3.60

p-Value*

.000

.000

.000 .000.000

.000.757.186.664

.000

.000

.000

.015

.000

.000

.000

.000

.000

.000

.000

.000

Composite Mean & SD

3.53&

409

2.93& 447

3.74& 342

3.89& 631

Value For Group Class*

.000

.142

.000

.000

*Statistically significant at p<0.05, Test value=3

Group-class variable B - ATM services: For ATM services the mean value of responses is 2.93. It is lowest of all the group-class variables taken into account. The outcome is not in the predicted direction and is not significant (p-value .142>.05).

Group-class variable C - Website convenience & security services: For Website convenience and security services mean value is 3.74 and it is ranked second in the selected four group-class variables, the results are in predicted direction and significant (p-value .000<.05).

Group-class variable D-E-banking transaction services: For E-banking transaction services mean value is 3.89 which is the highest in the selected four group-class variables, the results are in predicted direction and significant (p-value .000<.05).

7. Conclusion

The conclusion derived from the analysis of the customer's opinion is given here. In order to know the perception of customers about ICT based services in SBI they were asked to indicate their agreement on given statements. Regarding the perception of individual group-class variables, the perception score varied from 3.89 (E-banking transaction services) to 2.93 (ATM services). As the prime objective of Computerization is to serve customers effectively, it was predicted at the start of the study that for all the four group-class variables identified, the outcome will be positive i.e. the perception for these services will be positive. For all the group-class variables except ATM services the outcomes were in the predicted direction (with a mean score>3) and were statistically significant. The E-banking services scored the highest, which included services like fund transfer, payment of utility bills, payment to merchants etc. Almost all the components in this group-class scored near a mean of four. Based on the perception score received it can be said that SBI excels in providing these services. A mean score of 3.74 was obtained for website convenience and security services. Internet related fraud schemes are perpetrated with increasing frequency, creativity and intensity, also, ease of use is associated with all the factors relating to the design of website. The key site seeks to reduce customer's frustration during the course of navigation. The mean score obtained for this group-class variable was in the predicted direction and statistically significant. Almost all the components under this group scored around 3.50, except use of updated technology for E-banking transactions by SBI. Based on the scores obtained, it can be said that customers trust the website of SBI while doing online transactions. For In-branch services the mean score obtained was 3.53 which is in the predicted direction and statistically significant. This group-class was ranked third in terms of composite mean. This group-class of services has some component of high-touch services which depends

on people producing the services. The group-class service which seems to be a concern for SBI is ATM services. It scored the lowest of all the classes in the study. The composite mean obtained was 2.93 which is against the predicted direction and the result was not significant. For the individual components under this class it was found that the customers find ATMs not functioning properly, the number of ATMs is not sufficient and there is always crowding at ATM booths.

8. Limitations of the Study

Although the present study has yielded some preliminary findings, its design is not without flaws. The main limitations are as follows: the data collection was confined only to two branches of State Bank of India; the sample size for the present study comprised of only 120 customers which is only a small proportion of the entire population; certain relevant variables of ICT based services might have been skipped.

References

! AbubakarA. et al. (2012), The impact of information and communication technology on Bank's performance and customer service delivery in the banking industry, Int. J Latest Trends Fin. Eco. Sc., Vol.2, No.1, pp.80-90.

! Harikanth D. (2012), Customer perception towards computerization in Indian banks- A study of select banks, IJREB, Vol.1, No.2

! Hunt R. (2009), Case study: State bank of India, World's largest centralized core processing implementation.

! Kanhaiya S. et al. (2011), Technological innovation in Indian banking sector Use of it products, International journal of management and strategy, Vol.2, No.2.

! Kumbhar V.M., Alternative Banking Channels and Customers' Satisfaction: An Empirical Study of Public and Private Sector Banks, International journal of business and management tomorrow, Vol.1, No.1, pp.1-24.

! Luka M.K. and Frank I.A. (2012), The impacts of ICTs on banks, International journal of advanced computer science and applications, Vol.3, No.9, pp.145-149.

! Meena R.S., Lecture Notes -Use of Information System in Banking and Insurance Sector.

! Sanjay D. (2011), Measuring IT effectiveness in banks of India for sustainable development, International journal of information technology

Customer's Perception of ICT Based Services of State Bank of India Customer's Perception of ICT Based Services of State Bank of India

"Pragyaan: Journal of Management" Volume 11: Issue 1, June 2013 2120 "Pragyaan: Journal of Management" Volume 11: Issue 1, June 2013

based on the use of automated systems, information technology and other type of physical resources. Based on literature review and existing practices of electronic banking, four group-classes of variables were identified. All these identified variables fall under the category of high-tech services. High-touch and advanced core banking service variables were excluded from the study (Table 1).

5.2 Predictions (Expected outcome of the study) about customer's perception with regard to ICT based services: With so much heavy investment and deployment of ICT in SBI in the past one decade, it is predicted that for all the four group-class variables (In-branch services, ATM services, Website convenience & security services, E-banking transaction services), the perception of customers is positive (+).

5.3 Sampling & Questionnaire Design: A non-probability, convenience sampling method is used to select customers of SBI making use of both ATM and E-banking transaction services. A total of 150 respondents were approached, out of which 120 completed responses are used. For the final study, a structured questionnaire consisting of different sections is compiled in accordance with the conceptual framework and study objectives. The various sections dealt with identified four group-class variables and demographic information. A Likert-type scale varying from 1 to 5 was used to measure the degree

to which the variables under study vary with 1 = strongly disagree and 5 = strongly agree.The primary data was collected from sample customers from sample branches (two) of State Bank of India (Varanasi city) with the help of questionnaire. The data obtained was analysed using various statistical tools such as mean, standard deviation and't' test using SPSS package.

6. Results and discussion: The results obtained from the study are presented here.

6.1 Banking profile of customers: The Banking profile of customers reveals that 60 % of the customers maintain savings account, 30% current account and 10% maintain both types of accounts with SBI. 6% of them are having banking experience of more than 10 years, 36% of 5 to 10 years, 46% are having banking experience of 1 to 5 years whereas 12% are having banking experience of less than 1 year. 75 % of the respondents have E-banking experience ranging between 1-5 years.

6.2 Descriptive statistics and t-test results:

The relevant descriptive statistics are given in Table-2

Group-class variable A-In-branch services: For In-branch services positive perception of customers was predicted. With a mean value of 3.53 it is ranked third in the selected four group-class variables, but the results are in predicted direction and significant (p-value .000<.05).

Table 2. Descriptive statistics and One sample t-test results (N=120, df=119)

GroupClass

6

A. IN_BRANCH_SR

B. ATM_SR

C. WEB_COSEC_SR

Predicted Direction & Outcome

In Predicted direction Positive(+) Significant

Not in predicted directionNegative (-) Not Significant

In Predicted direction Positive(+) Significant

In Predicted direction Positive(+) Significant

Components

1. INB_TM_AC2. INB_DEP_CAS3. INB_WITHD4. INB_CLR_CHQ5. INB_DD

1. ATM_LOCN2. ATM_FUNC3. ATM_NUM4. ATM_CRD

1. WBS_FUN2. WBS_NAV3. WBS_LAN4. WBS_UPDT5. WBS_MSUINF6. WBS_CONFD7. WBS_CRDINF

1. EBT_ACIN2. EBT_FUNDTRF3. EBT_PMUTI4. EBT_PMMRCH5. EBT_RQDDCH

Mean

3.503.343.303.713.80

2.702.973.102.78

3.733.433.653.143.904.094.23

3.953.914.033.95 3.60

p-Value*

.000

.000

.000 .000.000

.000.757.186.664

.000

.000

.000

.015

.000

.000

.000

.000

.000

.000

.000

.000

Composite Mean & SD

3.53&

409

2.93& 447

3.74& 342

3.89& 631

Value For Group Class*

.000

.142

.000

.000

*Statistically significant at p<0.05, Test value=3

Group-class variable B - ATM services: For ATM services the mean value of responses is 2.93. It is lowest of all the group-class variables taken into account. The outcome is not in the predicted direction and is not significant (p-value .142>.05).

Group-class variable C - Website convenience & security services: For Website convenience and security services mean value is 3.74 and it is ranked second in the selected four group-class variables, the results are in predicted direction and significant (p-value .000<.05).

Group-class variable D-E-banking transaction services: For E-banking transaction services mean value is 3.89 which is the highest in the selected four group-class variables, the results are in predicted direction and significant (p-value .000<.05).

7. Conclusion

The conclusion derived from the analysis of the customer's opinion is given here. In order to know the perception of customers about ICT based services in SBI they were asked to indicate their agreement on given statements. Regarding the perception of individual group-class variables, the perception score varied from 3.89 (E-banking transaction services) to 2.93 (ATM services). As the prime objective of Computerization is to serve customers effectively, it was predicted at the start of the study that for all the four group-class variables identified, the outcome will be positive i.e. the perception for these services will be positive. For all the group-class variables except ATM services the outcomes were in the predicted direction (with a mean score>3) and were statistically significant. The E-banking services scored the highest, which included services like fund transfer, payment of utility bills, payment to merchants etc. Almost all the components in this group-class scored near a mean of four. Based on the perception score received it can be said that SBI excels in providing these services. A mean score of 3.74 was obtained for website convenience and security services. Internet related fraud schemes are perpetrated with increasing frequency, creativity and intensity, also, ease of use is associated with all the factors relating to the design of website. The key site seeks to reduce customer's frustration during the course of navigation. The mean score obtained for this group-class variable was in the predicted direction and statistically significant. Almost all the components under this group scored around 3.50, except use of updated technology for E-banking transactions by SBI. Based on the scores obtained, it can be said that customers trust the website of SBI while doing online transactions. For In-branch services the mean score obtained was 3.53 which is in the predicted direction and statistically significant. This group-class was ranked third in terms of composite mean. This group-class of services has some component of high-touch services which depends

on people producing the services. The group-class service which seems to be a concern for SBI is ATM services. It scored the lowest of all the classes in the study. The composite mean obtained was 2.93 which is against the predicted direction and the result was not significant. For the individual components under this class it was found that the customers find ATMs not functioning properly, the number of ATMs is not sufficient and there is always crowding at ATM booths.

8. Limitations of the Study

Although the present study has yielded some preliminary findings, its design is not without flaws. The main limitations are as follows: the data collection was confined only to two branches of State Bank of India; the sample size for the present study comprised of only 120 customers which is only a small proportion of the entire population; certain relevant variables of ICT based services might have been skipped.

References

! AbubakarA. et al. (2012), The impact of information and communication technology on Bank's performance and customer service delivery in the banking industry, Int. J Latest Trends Fin. Eco. Sc., Vol.2, No.1, pp.80-90.

! Harikanth D. (2012), Customer perception towards computerization in Indian banks- A study of select banks, IJREB, Vol.1, No.2

! Hunt R. (2009), Case study: State bank of India, World's largest centralized core processing implementation.

! Kanhaiya S. et al. (2011), Technological innovation in Indian banking sector Use of it products, International journal of management and strategy, Vol.2, No.2.

! Kumbhar V.M., Alternative Banking Channels and Customers' Satisfaction: An Empirical Study of Public and Private Sector Banks, International journal of business and management tomorrow, Vol.1, No.1, pp.1-24.

! Luka M.K. and Frank I.A. (2012), The impacts of ICTs on banks, International journal of advanced computer science and applications, Vol.3, No.9, pp.145-149.

! Meena R.S., Lecture Notes -Use of Information System in Banking and Insurance Sector.

! Sanjay D. (2011), Measuring IT effectiveness in banks of India for sustainable development, International journal of information technology

Customer's Perception of ICT Based Services of State Bank of India Customer's Perception of ICT Based Services of State Bank of India

! Santhiyavalli G. (2011), Customer's perception of service quality of State bank of India-A factor analysis, IJMBS, Vol.1, No.3, pp.78-84

! Saraswat V. and Jadhav P. (2013), Impact of information technology on banking industry, Abhinav, Vol.2, pp.10-13.

! Selvi V.D. (2012), IT enabled banking services in the globalized era, International journal of multidisciplinary research, Vol.2, No. 5, pp.232-243.

! Woldie A. et al. (2008), Internet banking: an initial look at Ghanaian bank consumer perception, Banks and bank systems, Vol.3, No.3, pp.36-46.

! http://businesstoday. intoday. in/story/sbi-c o m p e t i n g - h a r d - w i t h - t h e - b e s t - p r i v a t e banks/1/190807.html(accessed on 5-7-2013).

Customer's Perception of ICT Based Services of State Bank of India

"Pragyaan: Journal of Management" Volume 11: Issue 1, June 2013 2322 "Pragyaan: Journal of Management" Volume 11: Issue 1, June 2013

1. Introduction

The following situation arose at the National Experimental Research Institute (NERI), the premier scientific institute in

1Bizarreland , which was conventionally organized into a number of departments primarily on the basis of academic fields/sub fields.

Exhibit I: Extract from Inter Office Memo dated 1/8/xxx1From: Chief Administrative Officer To: All Department Heads

A clear lack of organization is observed across the departments. Often minor items cannot be located when needed, so a new item (replica/duplicate) is purchased.

Such purchases tend to be on an ad hoc basis and often at higher prices. The misplaced items are almost inevitably found later on so multiple units of the same items are unnecessarily accumulated. In the process, budgets are used up incrementally and when large purchases are required questions are raised because the budget is insufficient. For example, in the molecular biology lab a new large freezer is a desperate requirement. The current freezer is so full that things are getting knocked off the shelves almost every time the doors are opened. Last week someone threw out another researcher's important intermediate reaction products because apparently they had not been properly colour coded. There is no control on costs and we are not sure that some of the important reactants and chemicals are not being stolen, as there is no systematic record of purchases and issues. Therefore, after discussions with

all department heads it has been suggested that our Institute be reorganized so as to improve functioning. One major change is that starting on 7/8/xxx1 all equipment and chemicals will be issued from a central materials department with stores manned by techno-commercial personnel who will be able to understand our scientific requirements. They will also be responsible for ensuring that entire procurement process is streamlined and carried out economically. Details of the new system will be circulated shortly. Other changes include tighter security and administration.

Exhibit II: Extract from Inter Office Memo dated 31/10/xxx1

From: Head, Cellular Biology Department To: Chief Administrative Officer Cc: Other Department Heads

The stated reason for centralizing the materials function was to improve efficiency, cut costs and reduce losses due to (suspected) pilferage. It now appears that the administrative staff are paranoid about thieves. Everywhere there are locked doors. Things are put away safely so safely that they are never found again! Last week there was a huge commotion because the lock of the laboratory door could not be found before the shift closing time! Almost everyone in the lab stopped what ever they were doing and got involved searching for it till it was located about 15 minutes later.

The deep freeze is also kept locked. Last week some

ABSTRACT

The article is structured as a case study of an organization and the problems faced in changing some

policies and processes. The body of case is presented in the form of exhibits from several inter office

memos. Management activities are often discussed and analyzed in oversimplified terms thereby failing to

accurately communicate the difficulties of operating in an environment where decisions have to address

several factors simultaneously and have unexpected consequences. The focus is on real world complex

organizational and business systems wherein various aspects of management are interrelated and

dependent on each other; and with particular reference to Indian work conditions.

Keywords: Management Systems, Centralization/Decentralization, Reorganization.

Reorganization at the National Experimental Research Institute, Bizzareland: A Case Study

*Assistant Professor, BITS, Pilani (Department of Management and Department of Economics & Finance), Rajasthan 333031, India

Arvind Sudarsan*

! Santhiyavalli G. (2011), Customer's perception of service quality of State bank of India-A factor analysis, IJMBS, Vol.1, No.3, pp.78-84

! Saraswat V. and Jadhav P. (2013), Impact of information technology on banking industry, Abhinav, Vol.2, pp.10-13.

! Selvi V.D. (2012), IT enabled banking services in the globalized era, International journal of multidisciplinary research, Vol.2, No. 5, pp.232-243.

! Woldie A. et al. (2008), Internet banking: an initial look at Ghanaian bank consumer perception, Banks and bank systems, Vol.3, No.3, pp.36-46.

! http://businesstoday. intoday. in/story/sbi-c o m p e t i n g - h a r d - w i t h - t h e - b e s t - p r i v a t e banks/1/190807.html(accessed on 5-7-2013).

Customer's Perception of ICT Based Services of State Bank of India

"Pragyaan: Journal of Management" Volume 11: Issue 1, June 2013 2322 "Pragyaan: Journal of Management" Volume 11: Issue 1, June 2013

1. Introduction

The following situation arose at the National Experimental Research Institute (NERI), the premier scientific institute in

1Bizarreland , which was conventionally organized into a number of departments primarily on the basis of academic fields/sub fields.

Exhibit I: Extract from Inter Office Memo dated 1/8/xxx1From: Chief Administrative Officer To: All Department Heads

A clear lack of organization is observed across the departments. Often minor items cannot be located when needed, so a new item (replica/duplicate) is purchased.

Such purchases tend to be on an ad hoc basis and often at higher prices. The misplaced items are almost inevitably found later on so multiple units of the same items are unnecessarily accumulated. In the process, budgets are used up incrementally and when large purchases are required questions are raised because the budget is insufficient. For example, in the molecular biology lab a new large freezer is a desperate requirement. The current freezer is so full that things are getting knocked off the shelves almost every time the doors are opened. Last week someone threw out another researcher's important intermediate reaction products because apparently they had not been properly colour coded. There is no control on costs and we are not sure that some of the important reactants and chemicals are not being stolen, as there is no systematic record of purchases and issues. Therefore, after discussions with

all department heads it has been suggested that our Institute be reorganized so as to improve functioning. One major change is that starting on 7/8/xxx1 all equipment and chemicals will be issued from a central materials department with stores manned by techno-commercial personnel who will be able to understand our scientific requirements. They will also be responsible for ensuring that entire procurement process is streamlined and carried out economically. Details of the new system will be circulated shortly. Other changes include tighter security and administration.

Exhibit II: Extract from Inter Office Memo dated 31/10/xxx1

From: Head, Cellular Biology Department To: Chief Administrative Officer Cc: Other Department Heads

The stated reason for centralizing the materials function was to improve efficiency, cut costs and reduce losses due to (suspected) pilferage. It now appears that the administrative staff are paranoid about thieves. Everywhere there are locked doors. Things are put away safely so safely that they are never found again! Last week there was a huge commotion because the lock of the laboratory door could not be found before the shift closing time! Almost everyone in the lab stopped what ever they were doing and got involved searching for it till it was located about 15 minutes later.

The deep freeze is also kept locked. Last week some

ABSTRACT

The article is structured as a case study of an organization and the problems faced in changing some

policies and processes. The body of case is presented in the form of exhibits from several inter office

memos. Management activities are often discussed and analyzed in oversimplified terms thereby failing to

accurately communicate the difficulties of operating in an environment where decisions have to address

several factors simultaneously and have unexpected consequences. The focus is on real world complex

organizational and business systems wherein various aspects of management are interrelated and

dependent on each other; and with particular reference to Indian work conditions.

Keywords: Management Systems, Centralization/Decentralization, Reorganization.

Reorganization at the National Experimental Research Institute, Bizzareland: A Case Study

*Assistant Professor, BITS, Pilani (Department of Management and Department of Economics & Finance), Rajasthan 333031, India

Arvind Sudarsan*

temperature controlled supplies arrived when the administrative staff were out and by the time the key was obtained the dry ice had almost totally evaporated. A few more minutes and the expensive and difficult to obtain biological materials would have been rendered unusable. The previous month some items had got scattered inside the freezer and taking them out took some time. By the time the scientist could remove some of the items, transfer them to the experimental table and return for the rest of the items, the freezer had been locked up again!

Exhibit III: Extract from Inter Office Memo dated 17/11/xxx1

From: Head, Renewable Energy Department To: Chief Administrative Officer Cc: Other Department Heads

Previously any researcher who wanted to get a copy of the any report or other publication authored by any department in the institute simply had to contact the publications unit and buy the same. Some publications were even issued free of cost to employees. Now, apparently the rules have been changed. One of my colleagues 'Z' wanted to refer to a monograph on experimental design and went over to the publications section. The person over there redirected him to a new office. When Z went there he was informed that the publications section did not directly sell publications any longer. However, employees could be issued a complimentary copy but that required the signature of the Department Head of the author's department. Z went to the appropriate HoD explained his requirement got the HoD's signature and submitted the form in the office. He was then informed that the concerned person was not sure whether to issue the item or not, since the applicant (i.e. Z) was not from the concerned department and was asked to meet the Manager (Sales) (MS) who in turn again asked him why he wanted the monograph. Once again he explained why he had asked for it. Then the MS said that it was not possible to just issue free copies to anyone who asked. I quote his words as reported to me, “If every body asks what will I do?” Z replied that he was willing to buy a copy. The MS responded (rather like a smug debater getting free bonus points) that buying (i.e. paying) was different from requesting a free copy. Z patiently pointed out that yes, he knew that there was a difference; that he had wanted to buy a copy but was told there was no longer any mechanism for direct sale, by the publication unit, even to an employee; and that he had been unaware of the option of the complimentary copy, until it had been suggested by the MS's own office staff. The MS agreed and said that he would see what could be done. The matter ended there. The MS didn't offer any solution and Z didn't revert. Next week on his trip to town he simply bought from

2the bookstore for the munificent sum of Rs. 95 .

Exhibit IV: Extract from Inter Office Memo dated 01/01/xxx2

From: Head, Material Sciences (Inorganic) Department To: Chief Administrative Officer Cc: Other Department Heads

The new purchase system is creating havoc. I have made requests for the purchase of certain apparatus and other materials several weeks ago, but there appears to have been little progress in procurement till date. Informally I have been informed that it is expected that tax rates will be reduced in the budget and so the purchase people are deferring purchases in order to take advantage of the lower prices they expect to get. To the best of my knowledge the prices of these products have never been reduced in the past. Moreover, there is no guarantee that the taxes will in fact be reduced, so ultimately we may actually end up paying more! Furthermore, apparently our “commercial” staff don't realize that in the mean time our work will come to a total halt for want of materials and equipment.

Exhibit V: Extract from Inter Office Memo dated 21/1/xxx2

From: Head, Medicinal Chemistry Department To: Chief Administrative Officer Cc: Other Department Heads

The internet connectivity in the department is completely unreliable. Sometimes it works and sometimes it does not. Every time I take up this issue with our computer maintenance section their stock reply is that our computers are virus infected. Each time the antivirus software has been updated and the machines scanned. Nothing has been found. Several outside experts were consulted informally. No one has any idea about this type of virus. Furthermore when the same computer is used in another location the connection works just fine (A connection specific computer virus? Truly remarkable. I doubt if even nature could achieve such specificity, much less us in our labs). Even after filling out the necessary form in triplicate, maintenance is unsure when they will be able to carry out a physical check. Last time, I was told that perhaps it was due to power fluctuations. Which brings me to the next point: the electricity supply has become completely unstable. To take one example: our NMR process requires many hours of preparation. If there are fluctuations or power cuts in-between, the whole process has to be restarted. The few minutes gap between the power supply stopping and the generator coming on is sufficient to disrupt the process. Over the last six months, I have raised this problem repeatedly but my requests for purchase of a large capacity UPS have been repeatedly turned down, (even though the proposed expenditure has been within our budgetary limits), on the grounds that it is an unjustifiable expenditure since the Institute has a generator.

Reorganization at the National Experimental Research Institute, Bizzareland: A Case Study

"Pragyaan: Journal of Management" Volume 11: Issue 1, June 2013 2524 "Pragyaan: Journal of Management" Volume 11: Issue 1, June 2013

We claim to be an internationally reputed institute but our infrastructure, facilities and processes appear to be not even third class. I urge immediate reconsideration of measures introduced if we are to accomplish our main purpose of achieving original and meaningful research results.

Notes:

1. Many writers refer to the division/divergence of India and Bharat. In some parallel universe, the Indian sub-continent (of our universe) was instead divided into Bizarreland and Bazaarland. This case is set in those two lands.

2. All currency transactions have been converted to Rupee terms for convenience.

Reorganization at the National Experimental Research Institute, Bizzareland: A Case Study

temperature controlled supplies arrived when the administrative staff were out and by the time the key was obtained the dry ice had almost totally evaporated. A few more minutes and the expensive and difficult to obtain biological materials would have been rendered unusable. The previous month some items had got scattered inside the freezer and taking them out took some time. By the time the scientist could remove some of the items, transfer them to the experimental table and return for the rest of the items, the freezer had been locked up again!

Exhibit III: Extract from Inter Office Memo dated 17/11/xxx1

From: Head, Renewable Energy Department To: Chief Administrative Officer Cc: Other Department Heads

Previously any researcher who wanted to get a copy of the any report or other publication authored by any department in the institute simply had to contact the publications unit and buy the same. Some publications were even issued free of cost to employees. Now, apparently the rules have been changed. One of my colleagues 'Z' wanted to refer to a monograph on experimental design and went over to the publications section. The person over there redirected him to a new office. When Z went there he was informed that the publications section did not directly sell publications any longer. However, employees could be issued a complimentary copy but that required the signature of the Department Head of the author's department. Z went to the appropriate HoD explained his requirement got the HoD's signature and submitted the form in the office. He was then informed that the concerned person was not sure whether to issue the item or not, since the applicant (i.e. Z) was not from the concerned department and was asked to meet the Manager (Sales) (MS) who in turn again asked him why he wanted the monograph. Once again he explained why he had asked for it. Then the MS said that it was not possible to just issue free copies to anyone who asked. I quote his words as reported to me, “If every body asks what will I do?” Z replied that he was willing to buy a copy. The MS responded (rather like a smug debater getting free bonus points) that buying (i.e. paying) was different from requesting a free copy. Z patiently pointed out that yes, he knew that there was a difference; that he had wanted to buy a copy but was told there was no longer any mechanism for direct sale, by the publication unit, even to an employee; and that he had been unaware of the option of the complimentary copy, until it had been suggested by the MS's own office staff. The MS agreed and said that he would see what could be done. The matter ended there. The MS didn't offer any solution and Z didn't revert. Next week on his trip to town he simply bought from

2the bookstore for the munificent sum of Rs. 95 .

Exhibit IV: Extract from Inter Office Memo dated 01/01/xxx2

From: Head, Material Sciences (Inorganic) Department To: Chief Administrative Officer Cc: Other Department Heads

The new purchase system is creating havoc. I have made requests for the purchase of certain apparatus and other materials several weeks ago, but there appears to have been little progress in procurement till date. Informally I have been informed that it is expected that tax rates will be reduced in the budget and so the purchase people are deferring purchases in order to take advantage of the lower prices they expect to get. To the best of my knowledge the prices of these products have never been reduced in the past. Moreover, there is no guarantee that the taxes will in fact be reduced, so ultimately we may actually end up paying more! Furthermore, apparently our “commercial” staff don't realize that in the mean time our work will come to a total halt for want of materials and equipment.

Exhibit V: Extract from Inter Office Memo dated 21/1/xxx2

From: Head, Medicinal Chemistry Department To: Chief Administrative Officer Cc: Other Department Heads

The internet connectivity in the department is completely unreliable. Sometimes it works and sometimes it does not. Every time I take up this issue with our computer maintenance section their stock reply is that our computers are virus infected. Each time the antivirus software has been updated and the machines scanned. Nothing has been found. Several outside experts were consulted informally. No one has any idea about this type of virus. Furthermore when the same computer is used in another location the connection works just fine (A connection specific computer virus? Truly remarkable. I doubt if even nature could achieve such specificity, much less us in our labs). Even after filling out the necessary form in triplicate, maintenance is unsure when they will be able to carry out a physical check. Last time, I was told that perhaps it was due to power fluctuations. Which brings me to the next point: the electricity supply has become completely unstable. To take one example: our NMR process requires many hours of preparation. If there are fluctuations or power cuts in-between, the whole process has to be restarted. The few minutes gap between the power supply stopping and the generator coming on is sufficient to disrupt the process. Over the last six months, I have raised this problem repeatedly but my requests for purchase of a large capacity UPS have been repeatedly turned down, (even though the proposed expenditure has been within our budgetary limits), on the grounds that it is an unjustifiable expenditure since the Institute has a generator.

Reorganization at the National Experimental Research Institute, Bizzareland: A Case Study

"Pragyaan: Journal of Management" Volume 11: Issue 1, June 2013 2524 "Pragyaan: Journal of Management" Volume 11: Issue 1, June 2013

We claim to be an internationally reputed institute but our infrastructure, facilities and processes appear to be not even third class. I urge immediate reconsideration of measures introduced if we are to accomplish our main purpose of achieving original and meaningful research results.

Notes:

1. Many writers refer to the division/divergence of India and Bharat. In some parallel universe, the Indian sub-continent (of our universe) was instead divided into Bizarreland and Bazaarland. This case is set in those two lands.

2. All currency transactions have been converted to Rupee terms for convenience.

Reorganization at the National Experimental Research Institute, Bizzareland: A Case Study

"Pragyaan: Journal of Management" Volume 11: Issue 1, June 201326

1. Introduction

In recent years, the importance lent to quality management, both in ISO 9000 and TS16949 implementation and certification, has been overwhelming in the business world. This has led to a numerous researchers to concentrate their efforts on studying the quality movement. Currently, there are several quality management strategies or philosophies that an organization can apply to maintain and improve quality of its processes, products, services and overall business performances. ISO 9000 mainly deals with quality management systems for the design, development, purchasing, production, installation, and servicing of products and services.

The International Organization for Standardization mentions that ISO 9000 can increase customer satisfaction, provide cost and risk-management benefits, and result in improved competitiveness. ISO-registered companies have better quality management practices and quality results than those companies that are neither ISO-registered nor interested in obtaining registration. ISO 9000 provides the opportunity to evaluate suppliers' goods and services consistently.

Many independent third parties or registrars are now using the ISO 9000 series standards to evaluate suppliers' quality systems. When a supplier's quality system conforms to the appropriate ISO 9000 standards, the registrar issues the supplier a certificate. The supplier is also listed in directories of registered suppliers .

TS 16949 standard outlines the specific requirements for the application of ISO 9001:2008 to automotive production and relevant service part organizations. It contains recommended automotive industry practices and examples. ISO 9001:2008 specifies requirements for a QMS that can be used for internal application by organizations, or for certification, or for contractual purposes. Both standards use the "process" approach, referring to the application of a system of processes (numerous linked activities) that allows the transformation of inputs into outputs, such as in the manufacture of cars and related parts. TS 16949 are developed by the International Automotive Task Force (IATF) for global recognition; it has become a mandatory set of requirements of many automotive Original Equipment Manufacturers (OEMs) globally. This standard recognizes the uniqueness of every automotive supplier's process,

ABSTRACT

TS 16949 achieve the objectives of continually improving the

production of automobile parts and related services, and strengthening the international competition

for the automotive industry and its suppliers. By applying this quality system standard, automotive

manufacturers offer superior products and good services to customers. These standards have been

implemented in companies considering the associated benefits. This study compares the effect of ISO

9000 & TS 16949 quality system on the basis of employees awareness level of the quality management

system, degree of its implementation and its effect on firm's performance. The study was done on ISO

9000/TS 16949 certified engineering companies in Uttarakhand, a state in India. The study envisages

understanding and reason out as to which quality management has (a) better awareness level among the

employess, (b) Higher degree of implementation, and (c) more effect on firm's performance.

Key Words: ISO 9000 , TS16949 , QMS – Quality Management System

ISO 9000 is the name given to a 'family' of standards that are internationally accepted to form the basis of

a sound quality management system. The standard provides a framework for organisations to coordinate

and manage their quality activities and to gain independent recognition for their achievements through

an international certification scheme.

Effect of ISO9000 and Ts16949 Quality Management Systems on Firms Performance - A Comparative Study

* P. G. Dangwal – Assistant Professor , IMS Unison University – Dehradun , UK** Dr. D. S. Chaubey – Professor, Department Of Management , Uttaranchal University-Dehradun , UK

P. G. Dangwal* Dr. D. S. Chaubey**

"Pragyaan: Journal of Management" Volume 11: Issue 1, June 2013 27

while providing critical tools to help the company to better meet customer-specific requirements. TS 16949:2009 are based on process approach. It provides an organized way for business to document and codify specific work practices in ways that best serve customer needs. TS 16949 eliminate redundancy, cost and administrative burdens imposed by multiple standard formerly mandated in various geographic regions.

1.1 ISO 9000 QMS Overview

ISO 9000 is a family of standards that provides a series of guidelines on how to establish a quality system to manage the processes that affect its product or services. This family of standards was first published by the International Organization for Standardization (ISO) in 1987 and was subsequently updated in 1994 , 2000 and 2008. The quality system is required to be documented and employees are expected to follow consistently the documented procedures. After the quality system is implemented, the firms can obtain registration through an audit performed by an independent (third-party) registrar. Proponents of ISO 9000 generally view the benefits of such registration as having the ability to improve product or service quality, efficiency and productivity, customer confidence, competitive advantage and the like. Criticism of ISO 9000 generally relates to the high level of paperwork and documentation, a rigid system that does not support creativity or empowerment, a standard that aims for consistency but not continuous quality improvement,

Quality management principles are the basis for ISO 9001:2008. The standard has been restructured on a business process model corresponding with the way organisations actually operate. And it is more closely aligned with the philosophy and objectives of most business excellence programmes. The principles are:

Customer focus: Understanding existing and potential customer needs, meeting their requirements and striving to exceed their expectations

Leadership: Establishing unity of purpose and direction of the organisation. Creating and maintaining the working environment in which people are fully involved in achieving the organisation's objectives.

Involvement of people: Involving people fully at all levels of the organisation and using their abilities for the benefit of the organisation.

Process approach: Managing related resources and activities as a process. It involves the systematic identification and management of the various internal processes to achieve objectives. A systems approach to management i.e identifying, understanding and managing a system of interrelated processes for given objectives.

Continual improvement: Continually increasing the effectiveness and/or efficiency of the organisation; responding to customers' growing needs and expectations; ensuring a dynamic evolution of the quality management system. Factual approach to decision making , Basing decisions on the analysis of data and information balanced with experience and intuition.

Mutually beneficial supplier relationships: Establishing suppliers as an integral part of the organisation to create value through flexibility, speed and optimising costs and resources.

Structure:

The standard is structured into four main chapters. These four chapters and the elements of each are:

Management responsibility: Establish leadership, commitment and the active involvement of the top management. These are essential for developing and maintaining an effective quality management system. Management responsibilities defining the commitment, quality policy development, planning, allocation of responsibilities and authorities, communication and management review requirements for the organisation will be required.

Resource management: Identify resources essential to implement strategy and achieve objectives. Included will be resources for operations and improvements and satisfying customers and other interested parties. Resources are people, infrastructure, work environment, information, suppliers and partners, natural and financial.

Product and/or service realization: Plan and develop processes that are needed for product realisation and support. These need to be consistent with the requirements of the other management system processes. Determine customer requirements related to the product and/or service and the design, development, production and service provisions. These should be defined, implemented and maintained. Purchases should conform to specified requirements. Suppliers are evaluated and selected based on their ability to supply within the specifications. Establish monitoring and measurement processes to provide evidence of product conformity.

Measurement, analysis and improvement: Ensure effective and efficient data measurement, collection and validation. Plan and implement monitoring, measuring, analysing and improvement processes. Include information relating to customer perceptions of the organisation's performance in fulfilling customer requirements.

Conduct internal audits:

Identify and control product nonconformance: Continually improve the effectiveness of the management system

Effect of ISO9000 and TSI 6949 Quality Management Systems on ........

"Pragyaan: Journal of Management" Volume 11: Issue 1, June 201326

1. Introduction

In recent years, the importance lent to quality management, both in ISO 9000 and TS16949 implementation and certification, has been overwhelming in the business world. This has led to a numerous researchers to concentrate their efforts on studying the quality movement. Currently, there are several quality management strategies or philosophies that an organization can apply to maintain and improve quality of its processes, products, services and overall business performances. ISO 9000 mainly deals with quality management systems for the design, development, purchasing, production, installation, and servicing of products and services.

The International Organization for Standardization mentions that ISO 9000 can increase customer satisfaction, provide cost and risk-management benefits, and result in improved competitiveness. ISO-registered companies have better quality management practices and quality results than those companies that are neither ISO-registered nor interested in obtaining registration. ISO 9000 provides the opportunity to evaluate suppliers' goods and services consistently.

Many independent third parties or registrars are now using the ISO 9000 series standards to evaluate suppliers' quality systems. When a supplier's quality system conforms to the appropriate ISO 9000 standards, the registrar issues the supplier a certificate. The supplier is also listed in directories of registered suppliers .

TS 16949 standard outlines the specific requirements for the application of ISO 9001:2008 to automotive production and relevant service part organizations. It contains recommended automotive industry practices and examples. ISO 9001:2008 specifies requirements for a QMS that can be used for internal application by organizations, or for certification, or for contractual purposes. Both standards use the "process" approach, referring to the application of a system of processes (numerous linked activities) that allows the transformation of inputs into outputs, such as in the manufacture of cars and related parts. TS 16949 are developed by the International Automotive Task Force (IATF) for global recognition; it has become a mandatory set of requirements of many automotive Original Equipment Manufacturers (OEMs) globally. This standard recognizes the uniqueness of every automotive supplier's process,

ABSTRACT

TS 16949 achieve the objectives of continually improving the

production of automobile parts and related services, and strengthening the international competition

for the automotive industry and its suppliers. By applying this quality system standard, automotive

manufacturers offer superior products and good services to customers. These standards have been

implemented in companies considering the associated benefits. This study compares the effect of ISO

9000 & TS 16949 quality system on the basis of employees awareness level of the quality management

system, degree of its implementation and its effect on firm's performance. The study was done on ISO

9000/TS 16949 certified engineering companies in Uttarakhand, a state in India. The study envisages

understanding and reason out as to which quality management has (a) better awareness level among the

employess, (b) Higher degree of implementation, and (c) more effect on firm's performance.

Key Words: ISO 9000 , TS16949 , QMS – Quality Management System

ISO 9000 is the name given to a 'family' of standards that are internationally accepted to form the basis of

a sound quality management system. The standard provides a framework for organisations to coordinate

and manage their quality activities and to gain independent recognition for their achievements through

an international certification scheme.

Effect of ISO9000 and Ts16949 Quality Management Systems on Firms Performance - A Comparative Study

* P. G. Dangwal – Assistant Professor , IMS Unison University – Dehradun , UK** Dr. D. S. Chaubey – Professor, Department Of Management , Uttaranchal University-Dehradun , UK

P. G. Dangwal* Dr. D. S. Chaubey**

"Pragyaan: Journal of Management" Volume 11: Issue 1, June 2013 27

while providing critical tools to help the company to better meet customer-specific requirements. TS 16949:2009 are based on process approach. It provides an organized way for business to document and codify specific work practices in ways that best serve customer needs. TS 16949 eliminate redundancy, cost and administrative burdens imposed by multiple standard formerly mandated in various geographic regions.

1.1 ISO 9000 QMS Overview

ISO 9000 is a family of standards that provides a series of guidelines on how to establish a quality system to manage the processes that affect its product or services. This family of standards was first published by the International Organization for Standardization (ISO) in 1987 and was subsequently updated in 1994 , 2000 and 2008. The quality system is required to be documented and employees are expected to follow consistently the documented procedures. After the quality system is implemented, the firms can obtain registration through an audit performed by an independent (third-party) registrar. Proponents of ISO 9000 generally view the benefits of such registration as having the ability to improve product or service quality, efficiency and productivity, customer confidence, competitive advantage and the like. Criticism of ISO 9000 generally relates to the high level of paperwork and documentation, a rigid system that does not support creativity or empowerment, a standard that aims for consistency but not continuous quality improvement,

Quality management principles are the basis for ISO 9001:2008. The standard has been restructured on a business process model corresponding with the way organisations actually operate. And it is more closely aligned with the philosophy and objectives of most business excellence programmes. The principles are:

Customer focus: Understanding existing and potential customer needs, meeting their requirements and striving to exceed their expectations

Leadership: Establishing unity of purpose and direction of the organisation. Creating and maintaining the working environment in which people are fully involved in achieving the organisation's objectives.

Involvement of people: Involving people fully at all levels of the organisation and using their abilities for the benefit of the organisation.

Process approach: Managing related resources and activities as a process. It involves the systematic identification and management of the various internal processes to achieve objectives. A systems approach to management i.e identifying, understanding and managing a system of interrelated processes for given objectives.

Continual improvement: Continually increasing the effectiveness and/or efficiency of the organisation; responding to customers' growing needs and expectations; ensuring a dynamic evolution of the quality management system. Factual approach to decision making , Basing decisions on the analysis of data and information balanced with experience and intuition.

Mutually beneficial supplier relationships: Establishing suppliers as an integral part of the organisation to create value through flexibility, speed and optimising costs and resources.

Structure:

The standard is structured into four main chapters. These four chapters and the elements of each are:

Management responsibility: Establish leadership, commitment and the active involvement of the top management. These are essential for developing and maintaining an effective quality management system. Management responsibilities defining the commitment, quality policy development, planning, allocation of responsibilities and authorities, communication and management review requirements for the organisation will be required.

Resource management: Identify resources essential to implement strategy and achieve objectives. Included will be resources for operations and improvements and satisfying customers and other interested parties. Resources are people, infrastructure, work environment, information, suppliers and partners, natural and financial.

Product and/or service realization: Plan and develop processes that are needed for product realisation and support. These need to be consistent with the requirements of the other management system processes. Determine customer requirements related to the product and/or service and the design, development, production and service provisions. These should be defined, implemented and maintained. Purchases should conform to specified requirements. Suppliers are evaluated and selected based on their ability to supply within the specifications. Establish monitoring and measurement processes to provide evidence of product conformity.

Measurement, analysis and improvement: Ensure effective and efficient data measurement, collection and validation. Plan and implement monitoring, measuring, analysing and improvement processes. Include information relating to customer perceptions of the organisation's performance in fulfilling customer requirements.

Conduct internal audits:

Identify and control product nonconformance: Continually improve the effectiveness of the management system

Effect of ISO9000 and TSI 6949 Quality Management Systems on ........

"Pragyaan: Journal of Management" Volume 11: Issue 1, June 201328

through policy, objectives, audit results, analysis of data, corrective and preventive actions and management review.

1.2 TS16949 QMS Overview

TS 16949 are an internationally recognized Quality Management System specification for the Automotive Industry. It contains all of the requirements of ISO 9001 plus several additions specifically for the Automotive Industry. The current version is from the year 2009. TS16949 defines the Quality Management System requirements for the design and development, production and, when relevant, installation and service of automotive-related products.TS16949 is applicable to sites of the organization where customer-specified parts, for production and/or service, are manufactured. TS 16949 can be applied throughout the automotive supply chain. The rationale for TS16949 is that it enhances customer satisfaction, Encourages Analysis of customer requirements, Definition of processes and Process control. It provides a framework for continual improvement. Provides confidence in the ability to provide consistent products and services.

TS 16949 require one to be proficient in each of these Core Tools:

APQP stands for Advanced Product Quality Planning. It is a disciplined process for suppliers to ensure they are capable of designing product and/or manufacturing systems that will meet their automotive customers' requirements.

FMEA stands for Process Failure Mode & Effects Analysis. It is a tool typically used by Engineering and/or Quality that identifies and quantifies risk associated with potential product and process failures.

MSA stands for Measurement System Analysis. It is the application of ensuring that your organization's inspection, measuring and test equipment provides reliable and relevant measurement data.

PPAP stands for Production Part Approval Process. It is a standardized approval method automotive OEM's require of their suppliers. Documented and observed evidence is required of suppliers to demonstrate they can meet customer requirements prior to regular production runs.

Control Plans summarize the systems used to minimize process and product variation, guiding manufacturing on how to control the process and ensure product quality structure the approach to design, selection and implementation of value-added control methods describe the actions required at each phase of the process to ensure all process outputs will be in control are living documents - updated as measurement systems and control methods are evaluated and improved.

SPC stands for Statistical Process Control. SPC includes a series of tools to methodically monitor and control manufacturing processes and also may be applied throughout many other processes in an organization.

Goals of TS 16949 are:

A. Development of a Quality Management System (QMS) that provides for continual improvement, emphasizing defect prevention and the reduction of variation and waste in the supply chain.

B. TS16949 Technical Specification document, coupled with customer-specific & industry specific requirements that apply, defines the fundamental QMS requirements.

C. Avoids multiple certification audits and provide a common approach to the QMS.

D. Application of the Eight Management Principles:

1) Leadership 2) Customer focused organisation3) Involvement of people 4) Process approach 5) System approach to management 6) Continual Improvement 7) Factual approach to decision making 8) Mutually beneficial supplier relationship(s)

2. Literature Review

According to Ostadi B, Aghdasi M, Kazemzadeh R B (2010), there is a statistical relation between TS16949 efforts and implementing benefits; and successful implementation of TS16949 leads to create some important organizational capabilities. Stefanatos S., Dasic P & Petropoulos D (2006) point out that the focus of ISO 9000 and ISO/TS 16949:2002 registrations, is compliance to specified practices so as to guarantee a consistent level of product quality. Its main purpose is to enhance and facilitate trade. As per Mohamad, D., Deros. B.M, Wahab. D.A., Ismail. A. R. and Ling, C.O (2010) the main reason of applying this ISO/TS16949 standard was based on customer's requirement. The main benefit of ISO/TS16949 implementation is reduction in rejection rate. Besides that, main obstacle in implementing ISO/TS16949 it is difficult to get full cooperation and acceptance from all staff in the organization. Therefore, it is important to understand the ISO/TS16949 implementation procedure in order to be successful in this high competitive globalise world. According to Bandyopadhyay J K (2001) many of those suppliers who had gone through painstaking and expensive process of registration, have indicated that they will be willing to do it again, as their business have significantly increased after TS16949 registration. According to F Franceschini F , Galetto M, Maisano D

"Pragyaan: Journal of Management" Volume 11: Issue 1, June 2013 29

A, and Mastrogiacomo L (2010) quality certifications are indeed perceived as an advertising tool, as an instrument for internal improvement, but also as a necessary tool for doing business with car manufacturers. The diffusion of the TS 16949 certification was significantly more pronounced in those countries where car manufacturers require it. According to Anand Nair , Daniel Prajogo (2009) ISO 9000 internalisation is significantly associated with operational performance and operational performance in turn is significantly associated with business performance. According to Ali Uyar (2008) majority of Turkeys top 500 industrial enterprise implement at least one quality initiative. There are significant associations between implementing quality initiative and top 500 ranking. Quality initiative implementing companies outperform in financial performance compared to non quality initiative implementing companies. According to Inaki Heras , Gavin Dick , Marti Casadesus (2002) after comparing certified and non certified ISO 9000 firms , a significant better sales growth and profitability was found in certified firms compared to non certified firms. However on analyzing the difference between pre and post registration sales growth and profitability for certified firms , no evidence to support this causal link was found. Superior performance of certified firms is due to firms with superior performance having a greater propensity to pursue ISO9000 registration. According to P. Padma , L. S. Ganesh and C. Rajendran (2006), firms experience higher reduction in quality cost , higher productivity , better market performance and better overall internal performance by implementing ISO 9000 quality management system. There is a significant change in critical factors of quality management system and performance indicators of a firm. Divesh S Sharma ( 2005 ) sought to investigate whether ISO 9000 certification is associated with financial performance measures at the organizational level. His study provides evidence that ISO 9000 certification is associated with improvements in financial performance. It suggests that ISO 9000 certification does bring benefits to the firm and its stakeholders. ISO 9000 certification is associated with significant improvements in profit margin, growth in sales, and earnings per share. However, the effect of ISO 9000 certification was greater on profit margin than on growth in sales. This suggests that the improvement in overall performance is attributed largely to improvements in internal business processes.

3. Need for Research

There are numerous studies which highlight the impact of quality management practices on a firm's performance. Out of all quality management practices in engineering firms, ISO9000 and ISO16949 are the most commonly

used quality management systems. There is no literature available on comparative study between these two quality management practices. This paper attempts to compare both the quality management practices on certain parameters.

4. Objectives of the Study

The overall objective of the study is to assess the effect of the quality management systems on the overall performance of an organization. Specific objective of the study are:

! To compare the awareness level of the ISO 9000 and TS 16949 systems among the employees of the firm.

! To assess the degree of implementation of the above said Quality management Systems in the firm.

! To assess the effect of implementation of these systems on the firm's performance

5. Hypotheses

A hypothesis is a tentative statement about the relationship between two or more variables. A hypothesis is a specific, testable prediction about what is expected to happen in the study. The hypotheses framed for this study are as follows:

Hypothesis I

Ho: There is no significant difference between awareness levels of the employees about ISO 9000 and TS 16949.

Ha: There is a significant difference between awareness levels of the employees about ISO 9000 and TS 16949.

Hypothesis II

Ho: There is no significant difference between degree of implementation of ISO 9000 and TS 16949.

Ha: There is a significant difference between degree of implementation of ISO 9000 and TS 16949.

Hypothesis III

Ho: There is no significant difference between effect of ISO 9000 and TS 16949 implementation on firm's performance.

Ha: There is a significant difference between effect of ISO 9000 and TS 16949 implementation on firm's performance.

6. Research Design: To achieve the research objectives both exploratory and descriptive research methods were applied. Appropriate research strategies were undertaken to gather relevant data to address the research objectives.

Sampling Method: Convenience Sampling

Effect of ISO9000 and TSI 6949 Quality Management Systems on ........Effect of ISO9000 and TSI 6949 Quality Management Systems on ........

"Pragyaan: Journal of Management" Volume 11: Issue 1, June 201328

through policy, objectives, audit results, analysis of data, corrective and preventive actions and management review.

1.2 TS16949 QMS Overview

TS 16949 are an internationally recognized Quality Management System specification for the Automotive Industry. It contains all of the requirements of ISO 9001 plus several additions specifically for the Automotive Industry. The current version is from the year 2009. TS16949 defines the Quality Management System requirements for the design and development, production and, when relevant, installation and service of automotive-related products.TS16949 is applicable to sites of the organization where customer-specified parts, for production and/or service, are manufactured. TS 16949 can be applied throughout the automotive supply chain. The rationale for TS16949 is that it enhances customer satisfaction, Encourages Analysis of customer requirements, Definition of processes and Process control. It provides a framework for continual improvement. Provides confidence in the ability to provide consistent products and services.

TS 16949 require one to be proficient in each of these Core Tools:

APQP stands for Advanced Product Quality Planning. It is a disciplined process for suppliers to ensure they are capable of designing product and/or manufacturing systems that will meet their automotive customers' requirements.

FMEA stands for Process Failure Mode & Effects Analysis. It is a tool typically used by Engineering and/or Quality that identifies and quantifies risk associated with potential product and process failures.

MSA stands for Measurement System Analysis. It is the application of ensuring that your organization's inspection, measuring and test equipment provides reliable and relevant measurement data.

PPAP stands for Production Part Approval Process. It is a standardized approval method automotive OEM's require of their suppliers. Documented and observed evidence is required of suppliers to demonstrate they can meet customer requirements prior to regular production runs.

Control Plans summarize the systems used to minimize process and product variation, guiding manufacturing on how to control the process and ensure product quality structure the approach to design, selection and implementation of value-added control methods describe the actions required at each phase of the process to ensure all process outputs will be in control are living documents - updated as measurement systems and control methods are evaluated and improved.

SPC stands for Statistical Process Control. SPC includes a series of tools to methodically monitor and control manufacturing processes and also may be applied throughout many other processes in an organization.

Goals of TS 16949 are:

A. Development of a Quality Management System (QMS) that provides for continual improvement, emphasizing defect prevention and the reduction of variation and waste in the supply chain.

B. TS16949 Technical Specification document, coupled with customer-specific & industry specific requirements that apply, defines the fundamental QMS requirements.

C. Avoids multiple certification audits and provide a common approach to the QMS.

D. Application of the Eight Management Principles:

1) Leadership 2) Customer focused organisation3) Involvement of people 4) Process approach 5) System approach to management 6) Continual Improvement 7) Factual approach to decision making 8) Mutually beneficial supplier relationship(s)

2. Literature Review

According to Ostadi B, Aghdasi M, Kazemzadeh R B (2010), there is a statistical relation between TS16949 efforts and implementing benefits; and successful implementation of TS16949 leads to create some important organizational capabilities. Stefanatos S., Dasic P & Petropoulos D (2006) point out that the focus of ISO 9000 and ISO/TS 16949:2002 registrations, is compliance to specified practices so as to guarantee a consistent level of product quality. Its main purpose is to enhance and facilitate trade. As per Mohamad, D., Deros. B.M, Wahab. D.A., Ismail. A. R. and Ling, C.O (2010) the main reason of applying this ISO/TS16949 standard was based on customer's requirement. The main benefit of ISO/TS16949 implementation is reduction in rejection rate. Besides that, main obstacle in implementing ISO/TS16949 it is difficult to get full cooperation and acceptance from all staff in the organization. Therefore, it is important to understand the ISO/TS16949 implementation procedure in order to be successful in this high competitive globalise world. According to Bandyopadhyay J K (2001) many of those suppliers who had gone through painstaking and expensive process of registration, have indicated that they will be willing to do it again, as their business have significantly increased after TS16949 registration. According to F Franceschini F , Galetto M, Maisano D

"Pragyaan: Journal of Management" Volume 11: Issue 1, June 2013 29

A, and Mastrogiacomo L (2010) quality certifications are indeed perceived as an advertising tool, as an instrument for internal improvement, but also as a necessary tool for doing business with car manufacturers. The diffusion of the TS 16949 certification was significantly more pronounced in those countries where car manufacturers require it. According to Anand Nair , Daniel Prajogo (2009) ISO 9000 internalisation is significantly associated with operational performance and operational performance in turn is significantly associated with business performance. According to Ali Uyar (2008) majority of Turkeys top 500 industrial enterprise implement at least one quality initiative. There are significant associations between implementing quality initiative and top 500 ranking. Quality initiative implementing companies outperform in financial performance compared to non quality initiative implementing companies. According to Inaki Heras , Gavin Dick , Marti Casadesus (2002) after comparing certified and non certified ISO 9000 firms , a significant better sales growth and profitability was found in certified firms compared to non certified firms. However on analyzing the difference between pre and post registration sales growth and profitability for certified firms , no evidence to support this causal link was found. Superior performance of certified firms is due to firms with superior performance having a greater propensity to pursue ISO9000 registration. According to P. Padma , L. S. Ganesh and C. Rajendran (2006), firms experience higher reduction in quality cost , higher productivity , better market performance and better overall internal performance by implementing ISO 9000 quality management system. There is a significant change in critical factors of quality management system and performance indicators of a firm. Divesh S Sharma ( 2005 ) sought to investigate whether ISO 9000 certification is associated with financial performance measures at the organizational level. His study provides evidence that ISO 9000 certification is associated with improvements in financial performance. It suggests that ISO 9000 certification does bring benefits to the firm and its stakeholders. ISO 9000 certification is associated with significant improvements in profit margin, growth in sales, and earnings per share. However, the effect of ISO 9000 certification was greater on profit margin than on growth in sales. This suggests that the improvement in overall performance is attributed largely to improvements in internal business processes.

3. Need for Research

There are numerous studies which highlight the impact of quality management practices on a firm's performance. Out of all quality management practices in engineering firms, ISO9000 and ISO16949 are the most commonly

used quality management systems. There is no literature available on comparative study between these two quality management practices. This paper attempts to compare both the quality management practices on certain parameters.

4. Objectives of the Study

The overall objective of the study is to assess the effect of the quality management systems on the overall performance of an organization. Specific objective of the study are:

! To compare the awareness level of the ISO 9000 and TS 16949 systems among the employees of the firm.

! To assess the degree of implementation of the above said Quality management Systems in the firm.

! To assess the effect of implementation of these systems on the firm's performance

5. Hypotheses

A hypothesis is a tentative statement about the relationship between two or more variables. A hypothesis is a specific, testable prediction about what is expected to happen in the study. The hypotheses framed for this study are as follows:

Hypothesis I

Ho: There is no significant difference between awareness levels of the employees about ISO 9000 and TS 16949.

Ha: There is a significant difference between awareness levels of the employees about ISO 9000 and TS 16949.

Hypothesis II

Ho: There is no significant difference between degree of implementation of ISO 9000 and TS 16949.

Ha: There is a significant difference between degree of implementation of ISO 9000 and TS 16949.

Hypothesis III

Ho: There is no significant difference between effect of ISO 9000 and TS 16949 implementation on firm's performance.

Ha: There is a significant difference between effect of ISO 9000 and TS 16949 implementation on firm's performance.

6. Research Design: To achieve the research objectives both exploratory and descriptive research methods were applied. Appropriate research strategies were undertaken to gather relevant data to address the research objectives.

Sampling Method: Convenience Sampling

Effect of ISO9000 and TSI 6949 Quality Management Systems on ........Effect of ISO9000 and TSI 6949 Quality Management Systems on ........

"Pragyaan: Journal of Management" Volume 11: Issue 1, June 2013 3130 "Pragyaan: Journal of Management" Volume 11: Issue 1, June 2013

Population: Engineering Companies in Uttarakhand State ( India)

Sample Size: 250 Employees from engineering companies in Uttarakhand.

Response Rate: 84% i.e 211 respondents out of 250 responded correctly. The rest either didn't participate or returned the questionnaire unfilled.

Pre-testing of Questionnaire: The questionnaire was pre-tested with experts in the field and then potential respondents. The questionnaire was then revised in line with feedback obtained. A number of strategies were adopted to assess the reliability of the questionnaire. A literature review and semi-structured interviews were completed before drafting the questionnaire. Feedback from pre-testing was used to refine questions. Multiple indicators of constructs were used.

Statistical Analysis of Data: The collected data was tabulated and analyzed using SPSS 20.0. The techniques used for analysis were Descriptive statistics, Graphical representation and Mann Whitney U Test (since the data is not normally distributed) for testing the hypotheses.

Tests for Reliability of Scales: During the first phase of the data analysis a number of statistical tests to confirm the reliability of the scales were conducted. The items selected to measure the concept were subjected to calculating the item-to-scale correlation coefficient. The best items were selected for each scale. Some items were dropped from the scales. After selecting the items for the scale, reliability was tested by calculating item – item correlations or the Cronbach's alpha coefficient.

Reliability Statistics

Cronbach's Alpha N of Items

.982 48

Result: From the above table it is clear that the value of Cronbach's alpha is 0.982 which is more than 0.7. Hence it proves that the scale used in the questionnaire is a reliable one.

Hypothesis I

Ho: There is no significant difference between awareness levels of the employees about ISO 9000 and TS 16949.

Ha: There is a significant difference between awareness levels of the employees about ISO 9000 and TS 16949.

The above table indicates that U=3160.5 , p=0.082 , So it clearly indicates that the value of significance is greater than the established significance level of 0.05.So on this basis null hypothesis is accepted and it can be clearly stated there is no significance difference between awareness level of the employees about ISO 9000 and TS 16949 QMS.

Hypothesis II

Ho: There is no significant difference between degree of implementation of ISO 9000 and TS 16949.

Ha: There is a significant difference between degree of implementation of ISO 9000 and TS 16949.

The above table indicates that U=2897.05 , p=0.014 , so it clearly indicates that the value of significance is less than the established significance level of 0.05. So on this basis null hypothesis is rejected and it can be clearly stated there is a significant difference between degree of implementation of ISO 9000 and TS 16949.

The mean rank of degree of implementation for ISO 9000 certified firms is 100.58 and that for TS 16949 certified firms is 125.52. This indicates that the degree of implementation of quality management system in TS 16949 firms is higher than that of ISO 9000 firms. TS16949 is highly customer focused and a very demanding quality management system. The supply chain firms have to stringently implement this system.

Hypothesis III

Ho: There is no significant difference between effect of ISO 9000 and TS 16949 implementation on firm's performance.

Ha: There is a significant difference between effect of ISO9000 and TS 16949 implementation on firm's performance.

The above table indicates that U=2808.5 , p=0.007 , So it clearly indicates that the value of significance is less than the established significance level of 0.05.So on this basis null hypothesis is rejected and it can be clearly stated there is a significant difference between effect of ISO 9000 and TS 16949 implementation on firm's performance.

The mean rank for ISO 9000 certified firms is 100.02 and for TS 16949 certified firm is 127.45. This indicates that the implementation of quality management systems does have an impact on the performance of the firm and perceived impact on performance for TS 16949 certified firm is higher than ISO 9000 firms. The greater the degree of implementation of the quality management system, better is the effect on the performance of the firm. Several methods have evolved in TS16949 to reduce variation. Among them are PPAP, APQP, CP, SPC, FMEA, MSA, and many other techniques. More the suppliers adopt such variation reduction techniques the more likely it will be that the resultant product will be brought to the market more quickly and its production process is more efficient.

Effect of ISO9000 and TSI 6949 Quality Management Systems on ........Effect of ISO9000 and TSI 6949 Quality Management Systems on ........

"Pragyaan: Journal of Management" Volume 11: Issue 1, June 2013 3130 "Pragyaan: Journal of Management" Volume 11: Issue 1, June 2013

Population: Engineering Companies in Uttarakhand State ( India)

Sample Size: 250 Employees from engineering companies in Uttarakhand.

Response Rate: 84% i.e 211 respondents out of 250 responded correctly. The rest either didn't participate or returned the questionnaire unfilled.

Pre-testing of Questionnaire: The questionnaire was pre-tested with experts in the field and then potential respondents. The questionnaire was then revised in line with feedback obtained. A number of strategies were adopted to assess the reliability of the questionnaire. A literature review and semi-structured interviews were completed before drafting the questionnaire. Feedback from pre-testing was used to refine questions. Multiple indicators of constructs were used.

Statistical Analysis of Data: The collected data was tabulated and analyzed using SPSS 20.0. The techniques used for analysis were Descriptive statistics, Graphical representation and Mann Whitney U Test (since the data is not normally distributed) for testing the hypotheses.

Tests for Reliability of Scales: During the first phase of the data analysis a number of statistical tests to confirm the reliability of the scales were conducted. The items selected to measure the concept were subjected to calculating the item-to-scale correlation coefficient. The best items were selected for each scale. Some items were dropped from the scales. After selecting the items for the scale, reliability was tested by calculating item – item correlations or the Cronbach's alpha coefficient.

Reliability Statistics

Cronbach's Alpha N of Items

.982 48

Result: From the above table it is clear that the value of Cronbach's alpha is 0.982 which is more than 0.7. Hence it proves that the scale used in the questionnaire is a reliable one.

Hypothesis I

Ho: There is no significant difference between awareness levels of the employees about ISO 9000 and TS 16949.

Ha: There is a significant difference between awareness levels of the employees about ISO 9000 and TS 16949.

The above table indicates that U=3160.5 , p=0.082 , So it clearly indicates that the value of significance is greater than the established significance level of 0.05.So on this basis null hypothesis is accepted and it can be clearly stated there is no significance difference between awareness level of the employees about ISO 9000 and TS 16949 QMS.

Hypothesis II

Ho: There is no significant difference between degree of implementation of ISO 9000 and TS 16949.

Ha: There is a significant difference between degree of implementation of ISO 9000 and TS 16949.

The above table indicates that U=2897.05 , p=0.014 , so it clearly indicates that the value of significance is less than the established significance level of 0.05. So on this basis null hypothesis is rejected and it can be clearly stated there is a significant difference between degree of implementation of ISO 9000 and TS 16949.

The mean rank of degree of implementation for ISO 9000 certified firms is 100.58 and that for TS 16949 certified firms is 125.52. This indicates that the degree of implementation of quality management system in TS 16949 firms is higher than that of ISO 9000 firms. TS16949 is highly customer focused and a very demanding quality management system. The supply chain firms have to stringently implement this system.

Hypothesis III

Ho: There is no significant difference between effect of ISO 9000 and TS 16949 implementation on firm's performance.

Ha: There is a significant difference between effect of ISO9000 and TS 16949 implementation on firm's performance.

The above table indicates that U=2808.5 , p=0.007 , So it clearly indicates that the value of significance is less than the established significance level of 0.05.So on this basis null hypothesis is rejected and it can be clearly stated there is a significant difference between effect of ISO 9000 and TS 16949 implementation on firm's performance.

The mean rank for ISO 9000 certified firms is 100.02 and for TS 16949 certified firm is 127.45. This indicates that the implementation of quality management systems does have an impact on the performance of the firm and perceived impact on performance for TS 16949 certified firm is higher than ISO 9000 firms. The greater the degree of implementation of the quality management system, better is the effect on the performance of the firm. Several methods have evolved in TS16949 to reduce variation. Among them are PPAP, APQP, CP, SPC, FMEA, MSA, and many other techniques. More the suppliers adopt such variation reduction techniques the more likely it will be that the resultant product will be brought to the market more quickly and its production process is more efficient.

Effect of ISO9000 and TSI 6949 Quality Management Systems on ........Effect of ISO9000 and TSI 6949 Quality Management Systems on ........

! Sharma D.D. (2008), “Total Quality Management-Principles, Practice and Cases”, Sultan Chand & Sons, New Delhi

! Nair A and Prajogo D (2009), "Internalisation of ISO9000 standards: the antecedent role of functionalist and Institutionalist drivers and performance implications", International Journal of Production Research,vol 47 no.16 pp. 4545-4568

! Uyar A (2008), "An empirical Investigation of the Relationship between Quality Initiatives and Financial Performance", Eurasian Journal of Business and Economics, Vol. 1(1), pp.25-36

! Heras I , Dick G P M and Casadesus M (2002), "ISO9000 registration's impact on sales and profitability : A longitudinal analysis of performance before and after accreditation” ", International Journal of Quality & Reliability Management, Vol. 19 No.6, pp.774-791

! Tanninen K , Puumalainen K and Sandstrom J (2010), "The power of TQM : analysis of its effects on profitability , productivity and customer satisfaction”, Total Quality Management, Vol. 21 No.2, pp.171-18

! Pignanelli A , Csillag J M (2008), "The Impact of Quality Management on Profitability : An Empirical Study”, Production and Operations Management Society Research Journal, Vol. 1 No.1, pp.66-77

! Padma P , Ganesh L S and Rajendran C (2006), "A Study on the critical factors of ISO9000:2000 and organ i za t iona l per fo rmance o f Ind ian manufacturing firms”, International Journal of Production Research, Review Article , pp. 1-31

! Sharma D S (2005), "The association between ISO9000 certification and financial performance” , The International Journal of Accounting, Vol. 40 , pp. 151-172

! Samat N , Ramayah T , Yusoff Y (2008), "Do ISO certified SME's have higher quality practices ? Empirical Insights from the Northern Region of Malaysia”, International Journal of Business and Management , Vol. 3 No. 3 , pp. 66-75

! Santos-Vijande M , Alvarez-Gonza L (2009) . “TQM's contribution to marketing implementation and firm's competitiveness” , Total Quality Management , Vol. 20 No. 2, pp 171–196

! Singh L , Bhardwaj A , Sachdeva A (2009) , “The Impact of Quality Management Tools on Performance : An Exploratory Study on SMEs” , The IUP Journal of Operations Management , Vol 8 No. 3 , pp 61-70

7. Findings and Suggestions

1. Employees' awareness about the quality management system in ISO9000 firms and IS16949 firms is the same.

2. There is a difference in the degree of implemention of ISO9000 and TS16949 systems. The degree of implementation in TS16949 certified firms is better than that in ISO9000 certified firms.

3. Implementation of TS16949 quality management system gives better effect on performance as compared to ISO9000 quality management system..

4. If an ISO9000 firm's products or services do not meet specified requirements then clearly the quality management system has failed but the failure is no fault of the standard, it is a fault of the way the standard has been applied and interpreted both by the organizations themselves and by the auditors who determine conformity. If the specified requirements are less than those of the customers, it is inevitable that products will bring dissatisfaction.

5. ISO9000 certified firms can pick up techniques from TS16949 as mentioned above so that it delivers a better effect on implementation and performance, and lead to customer delight.

6. The auditing methodology of TS16949 is very comprehensive and stringent, so should be of ISO9000 to deliver better results.

The primary objective of ISO 9000 registered firm's is to bag contracts from customer, whereas it should have been a holistic improvement in the quality management system to deliver superior products and services to the delight of their customers. Hence, there are many dissatisfied customers The automotive sector is a very competitive and demanding market. ISO/TS 16949 is not a set of requirements for producing documentation as many perceive ISO 9000 to be. It contains requirements that address the key characteristics of a quality system which if not met will put product quality and consequently customer satisfaction at risk.

References:

! Ostadi B, Aghdasi M, Kazemzadeh R B (2010), “The impact of ISO/TS 16949 on automotive industries and created organizational capabilities from its implementation”,Journal of Industrial Engineering and Management, Vol 3 , No. 3 , pp 494-511

! P. N. Mukherj i (2009), “Total Quali ty Management”, PHI Learning Private Limited, New Delhi

"Pragyaan: Journal of Management" Volume 11: Issue 1, June 2013 3332 "Pragyaan: Journal of Management" Volume 11: Issue 1, June 2013

! Stefanatos S., Dasic P & Petropoulos D (2006),” An overview and a comparison of ISO 9000:2000 quality system standards with related automotive ones (QS9000, iso/TS 16949) and TQM models (MBNQA AND EFQM)”, Annals of the Faculty of Engineering Hunedoara , Vol 4 , No. 2 , pp 155-166

! Mohamad, D., Deros. B.M, Wahab. D.A., Ismail. A. R. and Ling, C.O (2010),” Case study of ISO/TS16949 application in automotive industry”, National Conference in Mechanical Engineering Research and Postgraduate Studies , Vol 1 , No. 2 , pp559-563.

! Bandyopadhyay J K (2001),” Quality systems requirements in Supply Chain Management: The implementation of QS-9000 by United States”, International Journal of Management , Vol. 18 No.2 , pp 1-9.

! F Franceschini F, Galetto M, MaisanoD A, and Mastrogiacomo L (2010),” TS16949: Analysis of the diffusion and current trends”, Journal of Engineering Manufacture , Vol. 225 , No. B , pp 735-745

Effect of ISO9000 and TSI 6949 Quality Management Systems on ........Effect of ISO9000 and TSI 6949 Quality Management Systems on ........

! Sharma D.D. (2008), “Total Quality Management-Principles, Practice and Cases”, Sultan Chand & Sons, New Delhi

! Nair A and Prajogo D (2009), "Internalisation of ISO9000 standards: the antecedent role of functionalist and Institutionalist drivers and performance implications", International Journal of Production Research,vol 47 no.16 pp. 4545-4568

! Uyar A (2008), "An empirical Investigation of the Relationship between Quality Initiatives and Financial Performance", Eurasian Journal of Business and Economics, Vol. 1(1), pp.25-36

! Heras I , Dick G P M and Casadesus M (2002), "ISO9000 registration's impact on sales and profitability : A longitudinal analysis of performance before and after accreditation” ", International Journal of Quality & Reliability Management, Vol. 19 No.6, pp.774-791

! Tanninen K , Puumalainen K and Sandstrom J (2010), "The power of TQM : analysis of its effects on profitability , productivity and customer satisfaction”, Total Quality Management, Vol. 21 No.2, pp.171-18

! Pignanelli A , Csillag J M (2008), "The Impact of Quality Management on Profitability : An Empirical Study”, Production and Operations Management Society Research Journal, Vol. 1 No.1, pp.66-77

! Padma P , Ganesh L S and Rajendran C (2006), "A Study on the critical factors of ISO9000:2000 and organ i za t iona l per fo rmance o f Ind ian manufacturing firms”, International Journal of Production Research, Review Article , pp. 1-31

! Sharma D S (2005), "The association between ISO9000 certification and financial performance” , The International Journal of Accounting, Vol. 40 , pp. 151-172

! Samat N , Ramayah T , Yusoff Y (2008), "Do ISO certified SME's have higher quality practices ? Empirical Insights from the Northern Region of Malaysia”, International Journal of Business and Management , Vol. 3 No. 3 , pp. 66-75

! Santos-Vijande M , Alvarez-Gonza L (2009) . “TQM's contribution to marketing implementation and firm's competitiveness” , Total Quality Management , Vol. 20 No. 2, pp 171–196

! Singh L , Bhardwaj A , Sachdeva A (2009) , “The Impact of Quality Management Tools on Performance : An Exploratory Study on SMEs” , The IUP Journal of Operations Management , Vol 8 No. 3 , pp 61-70

7. Findings and Suggestions

1. Employees' awareness about the quality management system in ISO9000 firms and IS16949 firms is the same.

2. There is a difference in the degree of implemention of ISO9000 and TS16949 systems. The degree of implementation in TS16949 certified firms is better than that in ISO9000 certified firms.

3. Implementation of TS16949 quality management system gives better effect on performance as compared to ISO9000 quality management system..

4. If an ISO9000 firm's products or services do not meet specified requirements then clearly the quality management system has failed but the failure is no fault of the standard, it is a fault of the way the standard has been applied and interpreted both by the organizations themselves and by the auditors who determine conformity. If the specified requirements are less than those of the customers, it is inevitable that products will bring dissatisfaction.

5. ISO9000 certified firms can pick up techniques from TS16949 as mentioned above so that it delivers a better effect on implementation and performance, and lead to customer delight.

6. The auditing methodology of TS16949 is very comprehensive and stringent, so should be of ISO9000 to deliver better results.

The primary objective of ISO 9000 registered firm's is to bag contracts from customer, whereas it should have been a holistic improvement in the quality management system to deliver superior products and services to the delight of their customers. Hence, there are many dissatisfied customers The automotive sector is a very competitive and demanding market. ISO/TS 16949 is not a set of requirements for producing documentation as many perceive ISO 9000 to be. It contains requirements that address the key characteristics of a quality system which if not met will put product quality and consequently customer satisfaction at risk.

References:

! Ostadi B, Aghdasi M, Kazemzadeh R B (2010), “The impact of ISO/TS 16949 on automotive industries and created organizational capabilities from its implementation”,Journal of Industrial Engineering and Management, Vol 3 , No. 3 , pp 494-511

! P. N. Mukherj i (2009), “Total Quali ty Management”, PHI Learning Private Limited, New Delhi

"Pragyaan: Journal of Management" Volume 11: Issue 1, June 2013 3332 "Pragyaan: Journal of Management" Volume 11: Issue 1, June 2013

! Stefanatos S., Dasic P & Petropoulos D (2006),” An overview and a comparison of ISO 9000:2000 quality system standards with related automotive ones (QS9000, iso/TS 16949) and TQM models (MBNQA AND EFQM)”, Annals of the Faculty of Engineering Hunedoara , Vol 4 , No. 2 , pp 155-166

! Mohamad, D., Deros. B.M, Wahab. D.A., Ismail. A. R. and Ling, C.O (2010),” Case study of ISO/TS16949 application in automotive industry”, National Conference in Mechanical Engineering Research and Postgraduate Studies , Vol 1 , No. 2 , pp559-563.

! Bandyopadhyay J K (2001),” Quality systems requirements in Supply Chain Management: The implementation of QS-9000 by United States”, International Journal of Management , Vol. 18 No.2 , pp 1-9.

! F Franceschini F, Galetto M, MaisanoD A, and Mastrogiacomo L (2010),” TS16949: Analysis of the diffusion and current trends”, Journal of Engineering Manufacture , Vol. 225 , No. B , pp 735-745

Effect of ISO9000 and TSI 6949 Quality Management Systems on ........Effect of ISO9000 and TSI 6949 Quality Management Systems on ........

QUESTIONNAIRE

II Rate your own awareness level regarding the following Quality Management Systems:

Not Aware Partly Aware Satisfactorily to a Good Fully AwareAware Aware Extent

ISO 9000/1

TS 16949

TQM

QUALITY CIRCLE CIRCLECIRCLE

SIG SIGMA

III] Quality Management System Information

a) Quality Management Systems implemented in your current companyi. ISO9000/1 [ ]ii. TS16949 [ ]iii. TQM [ ]iv. Six Sigma [ ]v. Quality Circle [ ]vi. Other Specify ___________________

1. General Information about the company:

a) Name (Optional): _____________________________________

b) No. of years of service :

i. Less than 5 years [ ]ii. 5 to 10 years [ ]iii. 10 to 20 years [ ]iv. More than 20 years [ ]

c) Type of ownership of your current company

i. Government Owned [ ]ii. Public Limited [ ]iii. Private Limited [ ]iv. Family Owned [ ]

d) Work Force Strength Of your current company

i. Less than 100 employees [ ]ii. Greater than 100, less than 500 [ ]iii. Greater than 500, less than 1000 [ ]iv. Above 1000 employees [ ]

e) Your working position in the current organization

i. Top Management [ ]ii. Middle Management [ ]iii. Lower Management [ ]iv. Worker [ ]

f) You are currently engaged in

i. Production/Operations [ ]ii. Sales/Marketing [ ]iii. Administration/Support Staff [ ]iv. Other , please specify ______________

"Pragyaan: Journal of Management" Volume 11: Issue 1, June 201334

IV] Evaluation of Quality Management System Implementation in your current Company.

SD:Strongly Disagree D:Disagree N: Neutral(Neither agree nor Disagree) A: Agree SA: Strongly Agree

SA D N A SA

1 2 3 4 5

Quality Related issues are discussed in Top Management meetings

Top Management empowers employees to solve quality problems

Top Management provides adequate resources for education and training

Our firm considers quality as the most important factor in selecting suppliers

Our firm regularly conducts supplier audit

Our firm has a clear quality policy

SA D N A SA

1 2 3 4 5

Our firm has a detailed quality goal

Our firm has a clear long term vision statement

Our firm has effective quality improvement plans

Our firm regularly conducts quality audits

Our firm utilizes quality related costs extensively

Quality related data is used to evaluate performance of the firm

Process capability in our firm can meet production requirements

Production equipments are well maintained as per maintenance plan

Our firm implements incoming , in process and final inspection effectively

Our firm uses quality control tools extensively for process control and improvements

Our firm uses statistical process control for process control and improvements

Various departments participate in new product development

Customer requirements are thoroughly considered in new product design

Quality system in our firm are being continuously improved

Our firm has a clear quality manual

Our firm has clear procedure documents and working instructions

Our firm implements suggestion activities extensively

Excellent suggestions are financially rewarded

Specific work skills training is given to all employees

Most employees in our firm are trained to use quality management tools

Customer complaints are treated with top priority

Firm conducts customer satisfaction survey every year

"Pragyaan: Journal of Management" Volume 11: Issue 1, June 2013 35

QUESTIONNAIRE

II Rate your own awareness level regarding the following Quality Management Systems:

Not Aware Partly Aware Satisfactorily to a Good Fully AwareAware Aware Extent

ISO 9000/1

TS 16949

TQM

QUALITY CIRCLE CIRCLECIRCLE

SIG SIGMA

III] Quality Management System Information

a) Quality Management Systems implemented in your current companyi. ISO9000/1 [ ]ii. TS16949 [ ]iii. TQM [ ]iv. Six Sigma [ ]v. Quality Circle [ ]vi. Other Specify ___________________

1. General Information about the company:

a) Name (Optional): _____________________________________

b) No. of years of service :

i. Less than 5 years [ ]ii. 5 to 10 years [ ]iii. 10 to 20 years [ ]iv. More than 20 years [ ]

c) Type of ownership of your current company

i. Government Owned [ ]ii. Public Limited [ ]iii. Private Limited [ ]iv. Family Owned [ ]

d) Work Force Strength Of your current company

i. Less than 100 employees [ ]ii. Greater than 100, less than 500 [ ]iii. Greater than 500, less than 1000 [ ]iv. Above 1000 employees [ ]

e) Your working position in the current organization

i. Top Management [ ]ii. Middle Management [ ]iii. Lower Management [ ]iv. Worker [ ]

f) You are currently engaged in

i. Production/Operations [ ]ii. Sales/Marketing [ ]iii. Administration/Support Staff [ ]iv. Other , please specify ______________

"Pragyaan: Journal of Management" Volume 11: Issue 1, June 201334

IV] Evaluation of Quality Management System Implementation in your current Company.

SD:Strongly Disagree D:Disagree N: Neutral(Neither agree nor Disagree) A: Agree SA: Strongly Agree

SA D N A SA

1 2 3 4 5

Quality Related issues are discussed in Top Management meetings

Top Management empowers employees to solve quality problems

Top Management provides adequate resources for education and training

Our firm considers quality as the most important factor in selecting suppliers

Our firm regularly conducts supplier audit

Our firm has a clear quality policy

SA D N A SA

1 2 3 4 5

Our firm has a detailed quality goal

Our firm has a clear long term vision statement

Our firm has effective quality improvement plans

Our firm regularly conducts quality audits

Our firm utilizes quality related costs extensively

Quality related data is used to evaluate performance of the firm

Process capability in our firm can meet production requirements

Production equipments are well maintained as per maintenance plan

Our firm implements incoming , in process and final inspection effectively

Our firm uses quality control tools extensively for process control and improvements

Our firm uses statistical process control for process control and improvements

Various departments participate in new product development

Customer requirements are thoroughly considered in new product design

Quality system in our firm are being continuously improved

Our firm has a clear quality manual

Our firm has clear procedure documents and working instructions

Our firm implements suggestion activities extensively

Excellent suggestions are financially rewarded

Specific work skills training is given to all employees

Most employees in our firm are trained to use quality management tools

Customer complaints are treated with top priority

Firm conducts customer satisfaction survey every year

"Pragyaan: Journal of Management" Volume 11: Issue 1, June 2013 35

V] Impact of Implementing Quality Management System in your current Company.

SD: Strongly Disagree D: Disagree N: Neutral(Neither agree nor Disagree A: Agree SA: Strongly Agree

SA D N A SA

1 2 3 4 5

Final Product Quality has improved

In time Finish product delivery has improved

Customer complaints have reduced

Market share of the company has increased

Customer satisfaction has increased

Product cost has reduced

Finish Goods inventory has reduced

Profit of the company has increased

Worker productivity has increased

New Product introduction time has reduced

Employee skills have improved

Employees are more knowledgeable about quality

Employee morale has increased

Machine down time due to maintenance work has reduced

Sales revenue have increased

Wastage in general has reduced

Machine idle time has reduced

Top Management and Employee relations have improved

Job satisfaction of employees has increased

Management focuses more on training and development of employees

VI] Suggestions to Improve Quality Management Practices in your current company.

"Pragyaan: Journal of Management" Volume 11: Issue 1, June 201336

Our Contributors

Dr. S. Chand Basha

Head, Department of Business Administration, St. Ann's College of Engineering and Technololgy,

Nayunipalli, Vetapalem (M),Chirala

Dr. D. S. Chaubey

Professor, Department of Management , Uttaranchal University, Dehradun, U.K. India

Parashuram Dangwal

Assistant Professor, School of Management, IMS Unison University, Dehradun, India

Srinivasa Rao Dokk

Assistant Professor, Department of Business Administration, P.V.P. Siddhartha Institute of Technology,

Kanuru, Vijayawada, Andhra Pradesh, India

Dr. Rajesh C. Jampala

Professor& Head, Department of Commerce and Business Administration, P.B. Siddhartha College of Arts

& Science, Vijayawada,Andhra Pradesh, India

H. Hema Lakshmi

Assistant Professor,Department of Business Administration, St. Ann's College of Engineering and

Technololgy, Nayunipalli, Vetapalem (M),Chirala

Dr. P. Adi Lakshmi

Professor & Head, Department of Business Administration, P.V.P. Siddhartha Institute of Technology, Kanuru,

Vijayawada,Andhra Pradesh, India

Vivek Kumar Pathak

Research Scholar, Faculty of Management Studies, Banaras Hindu University, Varanasi

Dr. Vishal Shukla

Assistant Professor, School of Management, IMS Unison University, Dehradun

Dr. Mitushi Singh

Assistant Professor, Amity School of Business, Amity University, Noida

Arvind Sudarsan

Assistant Professor, BITS, Pilani (Department of Management and Department of Economics & Finance),

Rajasthan 333031, India

V] Impact of Implementing Quality Management System in your current Company.

SD: Strongly Disagree D: Disagree N: Neutral(Neither agree nor Disagree A: Agree SA: Strongly Agree

SA D N A SA

1 2 3 4 5

Final Product Quality has improved

In time Finish product delivery has improved

Customer complaints have reduced

Market share of the company has increased

Customer satisfaction has increased

Product cost has reduced

Finish Goods inventory has reduced

Profit of the company has increased

Worker productivity has increased

New Product introduction time has reduced

Employee skills have improved

Employees are more knowledgeable about quality

Employee morale has increased

Machine down time due to maintenance work has reduced

Sales revenue have increased

Wastage in general has reduced

Machine idle time has reduced

Top Management and Employee relations have improved

Job satisfaction of employees has increased

Management focuses more on training and development of employees

VI] Suggestions to Improve Quality Management Practices in your current company.

"Pragyaan: Journal of Management" Volume 11: Issue 1, June 201336

Our Contributors

Dr. S. Chand Basha

Head, Department of Business Administration, St. Ann's College of Engineering and Technololgy,

Nayunipalli, Vetapalem (M),Chirala

Dr. D. S. Chaubey

Professor, Department of Management , Uttaranchal University, Dehradun, U.K. India

Parashuram Dangwal

Assistant Professor, School of Management, IMS Unison University, Dehradun, India

Srinivasa Rao Dokk

Assistant Professor, Department of Business Administration, P.V.P. Siddhartha Institute of Technology,

Kanuru, Vijayawada, Andhra Pradesh, India

Dr. Rajesh C. Jampala

Professor& Head, Department of Commerce and Business Administration, P.B. Siddhartha College of Arts

& Science, Vijayawada,Andhra Pradesh, India

H. Hema Lakshmi

Assistant Professor,Department of Business Administration, St. Ann's College of Engineering and

Technololgy, Nayunipalli, Vetapalem (M),Chirala

Dr. P. Adi Lakshmi

Professor & Head, Department of Business Administration, P.V.P. Siddhartha Institute of Technology, Kanuru,

Vijayawada,Andhra Pradesh, India

Vivek Kumar Pathak

Research Scholar, Faculty of Management Studies, Banaras Hindu University, Varanasi

Dr. Vishal Shukla

Assistant Professor, School of Management, IMS Unison University, Dehradun

Dr. Mitushi Singh

Assistant Professor, Amity School of Business, Amity University, Noida

Arvind Sudarsan

Assistant Professor, BITS, Pilani (Department of Management and Department of Economics & Finance),

Rajasthan 333031, India

Call for Papers for Pragyaan: Journal of Management

Pragyaan: Journal of Management (ISSN: 0974-5505) is a double blind refereed journal of IMS Unison

University (formerly Institute of Management Studies), Dehradun. The journal is dedicated to develop,

promote and coordinate theory, research, and practice in the areas of Management, in Indian as well as

global context. It aims at bringing together the academicians as well as practicing managers. The University publishes conceptually sound articles and papers through this Journal, which have the potential

to enrich the existing management education, theory and practice. The papers could deal with research on

contemporary issues covering the fields of general management, corporate strategy, policy and governance,

finance, public policy, marketing, organisational behavior, productions and operations management, retail

management, international business and other related areas of economics and social sciences including

macro as well as micro perspectives. Our journal provides food for thought to the managers in public as well as the private sector, consultants,

academicians and students. We invite research papers, case studies and book reviews on management related issues for our subsequent

issues. Empirical studies as well as sound conceptual and application oriented studies in the area of

Management are welcome.

The papers should be prepared as per the guidelines and submitted to the Editor, Pragyyan:JOM at

pragyaan.mgt@iuu.ac.

Warm regards

EditorPragyaan: Journal of ManagementIMS Unison UniversityMakkawala GreensDehradun- 248009 Email: pragyaan.mgt@iuu.acTel: 91-135-3000600 91-135-3000630Fax: 91-135-3000700

Guidelines for Contributors

1. Manuscripts for publication should be typed in double space with a margin of 1.5 inches on both sides

to facilitate editing, only on one side of the paper and sent in duplicate to the Editor along with a soft

copy in the format of 12 point text single font- Times Roman and package preferably MS Word for

Editorial convenience. All articles should include an abstract of about 150 words, and a few key

words.

2. Each manuscript should be accompanied by a declaration of the author that the paper has neither

been published nor submitted for publication elsewhere.

3. Articles which are published should not be reproduced or reprinted in any form either in full or in part

without the prior permission of the editor.

4. Wherever copyrighted material is used, the authors should be accurate in reproduction and obtain

permission from the copyright holders, if necessary.

5. Papers submitted or presented in a seminar must be clearly indicated at the bottom of the first page.

6. Notes and references should be consecutively numbered and presented at the end of the article on

separate sheets of paper, and not at the foot of each page.

7. The articles can fall into any one of the following types: research based articles on management (with

executive summaries), case studies, book reviews, letters to the editors, or interviews with

academicians/gurus/CEOs.

8. Footnotes, typed in single-space, should be numbered serially and placed at the end of the text.

Reference to literature cited should be carried within the text in brackets. The references, to be placed

after footnotes, should be listed alphabetically by author and chronologically for each author. It

should be kept as brief as possible.

9. Contributors are advised to be brief in introducing the subject and devote most of the paper to the

principal theme. The Journal prefers papers based on original data and fresh theoretical insights.

References to previous works should be made economically. The Journal does not publish survey of

literature comprising lengthy bibliographical references.

10. Present each figure and table on a separate sheet of paper. All tables must be consecutively

numbered using Arabic numerals with appropriate titles.

11. Write numbers in figures (rather than words) for exact measurement and series of quantities, including

percentages. Use thousands and millions rather than lakhs and crores.

12. Book review must contain the name of the author and the book reviewed place of publication and

publisher, date of publication, number of pages and price.

13. A brief resume of the author/s should accompany the research articles.

14. Manuscripts are accepted for publication on the understanding that they are subject to editorial

revisions. Proofs will not be sent to the authors.

15. Authors will receive a complimentary copy of the journal.

16. All manuscripts should be addressed to:

The Editor

PRAGYAAN: Journal of Management

IMS Unison University

Makkawala Greens

Mussoorie Diversion Road

Dehradun, Uttarakhand (India).

Phones: 91-135-3000600

Fax: 91-135-3000700

E-mail: pragyaan.mgt@iuu.ac

Call for Papers for Pragyaan: Journal of Management

Pragyaan: Journal of Management (ISSN: 0974-5505) is a double blind refereed journal of IMS Unison

University (formerly Institute of Management Studies), Dehradun. The journal is dedicated to develop,

promote and coordinate theory, research, and practice in the areas of Management, in Indian as well as

global context. It aims at bringing together the academicians as well as practicing managers. The University publishes conceptually sound articles and papers through this Journal, which have the potential

to enrich the existing management education, theory and practice. The papers could deal with research on

contemporary issues covering the fields of general management, corporate strategy, policy and governance,

finance, public policy, marketing, organisational behavior, productions and operations management, retail

management, international business and other related areas of economics and social sciences including

macro as well as micro perspectives. Our journal provides food for thought to the managers in public as well as the private sector, consultants,

academicians and students. We invite research papers, case studies and book reviews on management related issues for our subsequent

issues. Empirical studies as well as sound conceptual and application oriented studies in the area of

Management are welcome.

The papers should be prepared as per the guidelines and submitted to the Editor, Pragyyan:JOM at

pragyaan.mgt@iuu.ac.

Warm regards

EditorPragyaan: Journal of ManagementIMS Unison UniversityMakkawala GreensDehradun- 248009 Email: pragyaan.mgt@iuu.acTel: 91-135-3000600 91-135-3000630Fax: 91-135-3000700

Guidelines for Contributors

1. Manuscripts for publication should be typed in double space with a margin of 1.5 inches on both sides

to facilitate editing, only on one side of the paper and sent in duplicate to the Editor along with a soft

copy in the format of 12 point text single font- Times Roman and package preferably MS Word for

Editorial convenience. All articles should include an abstract of about 150 words, and a few key

words.

2. Each manuscript should be accompanied by a declaration of the author that the paper has neither

been published nor submitted for publication elsewhere.

3. Articles which are published should not be reproduced or reprinted in any form either in full or in part

without the prior permission of the editor.

4. Wherever copyrighted material is used, the authors should be accurate in reproduction and obtain

permission from the copyright holders, if necessary.

5. Papers submitted or presented in a seminar must be clearly indicated at the bottom of the first page.

6. Notes and references should be consecutively numbered and presented at the end of the article on

separate sheets of paper, and not at the foot of each page.

7. The articles can fall into any one of the following types: research based articles on management (with

executive summaries), case studies, book reviews, letters to the editors, or interviews with

academicians/gurus/CEOs.

8. Footnotes, typed in single-space, should be numbered serially and placed at the end of the text.

Reference to literature cited should be carried within the text in brackets. The references, to be placed

after footnotes, should be listed alphabetically by author and chronologically for each author. It

should be kept as brief as possible.

9. Contributors are advised to be brief in introducing the subject and devote most of the paper to the

principal theme. The Journal prefers papers based on original data and fresh theoretical insights.

References to previous works should be made economically. The Journal does not publish survey of

literature comprising lengthy bibliographical references.

10. Present each figure and table on a separate sheet of paper. All tables must be consecutively

numbered using Arabic numerals with appropriate titles.

11. Write numbers in figures (rather than words) for exact measurement and series of quantities, including

percentages. Use thousands and millions rather than lakhs and crores.

12. Book review must contain the name of the author and the book reviewed place of publication and

publisher, date of publication, number of pages and price.

13. A brief resume of the author/s should accompany the research articles.

14. Manuscripts are accepted for publication on the understanding that they are subject to editorial

revisions. Proofs will not be sent to the authors.

15. Authors will receive a complimentary copy of the journal.

16. All manuscripts should be addressed to:

The Editor

PRAGYAAN: Journal of Management

IMS Unison University

Makkawala Greens

Mussoorie Diversion Road

Dehradun, Uttarakhand (India).

Phones: 91-135-3000600

Fax: 91-135-3000700

E-mail: pragyaan.mgt@iuu.ac

The Editor

Pragyaan: Journal of Management

IMS Unison University

Makkawala Greens,

Mussoorie – Diversion Road, Dehradun

Pin-248001, Uttarakhand

Ph: (M) (Editor) - 91-135-3000600

Fax: +91-135-3000700

Sir,

Sub: Assignment of Copyright

I/We,_____________________________________________________________, author(s) of the article

entitled______________________________________________________________________________

do hereby authorize you to publish the above said article in PRAGYAAN: JOURNAL OF MANAGEMENT.

I/We further state that:

1) The Article is my/our original contribution. It does not infringe on the rights of others and does not contain any libelous

or unlawful statements.

2) Wherever required I/We have taken permission and acknowledged the source.

3 The work has been submitted only to this journal PRAGYAAN: JOURNAL OF MANAGEMENT and that it has not

been previously published or submitted elsewhere for publication.

I/We hereby authorize, you to edit, alter, modify and make changes in the Article in the process of preparing the

manuscript to make it suitable for publication.

I/We hereby assign all the copyrights relating to the said Article to the IMS Unison University, Dehradun.

I/We have not assigned any kind of rights of the above said Article to any other person/Publications.

I/We agree to indemnify the IMS Unison University, Dehradun against any claim or action alleging facts which, if true,

constitute a breach of the foregoing warranties.

First author Second author Third author

Name: Name: Name:

Signature: Signature: Signature:

SUBSCRIPTION/ADVERTISEMENT RATES The Subscription rates for each of our four journals, viz., Pragyaan: Journal of Management, Pragyaan:

Information Technology, Pragyaan: Journal of Mass Communication and Pragyaan: Journal of Law are as follows:

Advertisement Rates (Rs.)

SUBSCRIPTION FORM

I wish to subscribe to the following journal(s) of IMS, Dehradun:

Name of Journal No. of Years Amount

Pragyaan: Journal of Management

Pragyaan: Journal of Information Technology

Pragyaan: Journal of Mass Communication

Pragyaan: Journal of Law

Total

A bank draft/cheque bearing no dated for Rs. Drawn in favour of IMS Unison University, Dehradun towards the

subscription is enclosed. Please register me/us for the subscription with the following particulars:

Name:__________________________________________________________________ (IndiviuaI /Organisation)

Address___________________________________________________________________________________________

_________________________________________________________________________________________________

Phone ___________________________ Fax ________________E- mail: _____________________________________

Date: Signature (individual/authorized signatory)

Please send the amount by DD/Local Cheque favouring IMS Unison University, Dehradun, for timely

receipt of the journal. Outstation cheques shall not be accepted.

Please cut out and mail along with your cheque /DD to: The Registrar, IMS Unison University, Dehradun.

Makkawala Greens, Mussorrie Diversion Road, Dehradun 248009. Uttarakhand, India, Phone No. -0135-3000600

Journal of

Academic Institutions

500 30 1200 75 2000 120

Corporate 1000 60 2500 150 4000 240

Individual Members

400 25 1000 60 1600 100

Students 300 20 700 40 1200 75

Domestic Rates (`)

Category Foreign Rates (US $)

Domestic Rates (`)

Foreign Rates (US $)

Domestic Rates (`)

Foreign Rates (US $)

1 Year 3 Years 5 Years

B/W (Inside Page) 10,000/- (2 Issues) 18,000/- (4 Issues) 25,000/- (6 Issues)

Colour (Inside Back Cover)

17,000/- (2 Issues) 30,000/- (4 Issues) 45,000/- (6 Issues)

Single Insertion (1 Issues)(Inside B/W Page)- Rs. 5000/-

Location/Period 1 Year 2 Years 3 Years

The Editor

Pragyaan: Journal of Management

IMS Unison University

Makkawala Greens,

Mussoorie – Diversion Road, Dehradun

Pin-248001, Uttarakhand

Ph: (M) (Editor) - 91-135-3000600

Fax: +91-135-3000700

Sir,

Sub: Assignment of Copyright

I/We,_____________________________________________________________, author(s) of the article

entitled______________________________________________________________________________

do hereby authorize you to publish the above said article in PRAGYAAN: JOURNAL OF MANAGEMENT.

I/We further state that:

1) The Article is my/our original contribution. It does not infringe on the rights of others and does not contain any libelous

or unlawful statements.

2) Wherever required I/We have taken permission and acknowledged the source.

3 The work has been submitted only to this journal PRAGYAAN: JOURNAL OF MANAGEMENT and that it has not

been previously published or submitted elsewhere for publication.

I/We hereby authorize, you to edit, alter, modify and make changes in the Article in the process of preparing the

manuscript to make it suitable for publication.

I/We hereby assign all the copyrights relating to the said Article to the IMS Unison University, Dehradun.

I/We have not assigned any kind of rights of the above said Article to any other person/Publications.

I/We agree to indemnify the IMS Unison University, Dehradun against any claim or action alleging facts which, if true,

constitute a breach of the foregoing warranties.

First author Second author Third author

Name: Name: Name:

Signature: Signature: Signature:

SUBSCRIPTION/ADVERTISEMENT RATES The Subscription rates for each of our four journals, viz., Pragyaan: Journal of Management, Pragyaan:

Information Technology, Pragyaan: Journal of Mass Communication and Pragyaan: Journal of Law are as follows:

Advertisement Rates (Rs.)

SUBSCRIPTION FORM

I wish to subscribe to the following journal(s) of IMS, Dehradun:

Name of Journal No. of Years Amount

Pragyaan: Journal of Management

Pragyaan: Journal of Information Technology

Pragyaan: Journal of Mass Communication

Pragyaan: Journal of Law

Total

A bank draft/cheque bearing no dated for Rs. Drawn in favour of IMS Unison University, Dehradun towards the

subscription is enclosed. Please register me/us for the subscription with the following particulars:

Name:__________________________________________________________________ (IndiviuaI /Organisation)

Address___________________________________________________________________________________________

_________________________________________________________________________________________________

Phone ___________________________ Fax ________________E- mail: _____________________________________

Date: Signature (individual/authorized signatory)

Please send the amount by DD/Local Cheque favouring IMS Unison University, Dehradun, for timely

receipt of the journal. Outstation cheques shall not be accepted.

Please cut out and mail along with your cheque /DD to: The Registrar, IMS Unison University, Dehradun.

Makkawala Greens, Mussorrie Diversion Road, Dehradun 248009. Uttarakhand, India, Phone No. -0135-3000600

Journal of

Academic Institutions

500 30 1200 75 2000 120

Corporate 1000 60 2500 150 4000 240

Individual Members

400 25 1000 60 1600 100

Students 300 20 700 40 1200 75

Domestic Rates (`)

Category Foreign Rates (US $)

Domestic Rates (`)

Foreign Rates (US $)

Domestic Rates (`)

Foreign Rates (US $)

1 Year 3 Years 5 Years

B/W (Inside Page) 10,000/- (2 Issues) 18,000/- (4 Issues) 25,000/- (6 Issues)

Colour (Inside Back Cover)

17,000/- (2 Issues) 30,000/- (4 Issues) 45,000/- (6 Issues)

Single Insertion (1 Issues)(Inside B/W Page)- Rs. 5000/-

Location/Period 1 Year 2 Years 3 Years

IMS Unison University at a glance

University presently offers under-graduate, post-graduate

and doctorate programs in several streams of Management,

Computer Applications, Law and Mass Communication

under the following four schools:

The University is committed towards delivering quality

education, developing strong industry interface and

providing placement opportunities to its students.

The University brings out the following four Journals, one

each in the four disciplines of Mass Communication,

Computer Applications, Management and Law, in an effort to

fulfill our objective of facilitating and promoting quality

research work:

IMS Unison University, a constituent of Unison Group is a

premier educational and research University nestled amidst

beautiful and serene surroundings offering an environment

that fosters learning and stimulates creativity.

It was established as IMS Dehradun in 1996, as a non- profit

organization by a group of visionaries dedicated to the cause

of changing the face of professional education in Northern

India.

The University today provides a platform for excellence in

teaching, learning, and administration. Its State-of-the-art

Infrastructure facilitates in developing well trained graduate,

post- graduate and doctorate professionals to meet the ever

changing needs of the corporate world.

IMS Unison University aspires to become a world-renowned

center for creation & dissemination of knowledge. It aims to

provide a holistic career-oriented education that develops

intellectual, moral and physical capabilities of the students.

1. School of Management

2. School of Computer Applications

3. School of Law

4. School of Journalism and Mass Communication

Information Technology

"• Pragyaan: Journal of Management

"• Pragyaan: Journal of Mass Communication

"• Pragyaan: Journal of

"• Pragyaan: Journal of Law

Makkawala Greens, Mussoorie Diversion Road, Dehradun - 248009Uttarakhand, India, Ph.: 0135-3000600 Fax: 0135-3000700Email: info@iuu.ac, Website: www.iuu.acEstablished under Uttarakhand Act no. 13 of 2013, and recognised by UGC under section 2 (f) of UGC act, 1956