cover page jenith

ZENITH International Journal of Multidisciplinary Research Vol.2 Issue 12, December 2012, ISSN 2231 5780

ZENITH INTERNATIONAL JOURNAL OF MULTIDISCIPLINARY RESEARCH Vol.2 Issue 12; December 2012; ISSN 2231-5780

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CONTENTS ENTREPRENEURSHIP EDUCATION: AN ASSESSMENT OF ITS EFFECT ON ENTREPRENEURIAL INTENSIONS (A CASE OF PUBLIC UNIVERSITIES’ STUDENTS IN ETHIOPIA) AFEWORK GETACHEW, YOHANNES TIGRO EVALUATION AND ANALYSIS OF PROFIT EFFICIENCYOF WHEAT PRODUCING AND MARKETING FARMERS (A CASE STUDY OF SINANA WHEAT PRODUCING AND MARKETING FARMERS) HAILEMICHAEL MULIE, ADDIS ABABA PSYCHOLOGICAL CHARACTERISTICS AND ITS IMPACT ON FIRM PERFORMANCE: A CASE STUDY OF SMALL AND MEDIUM ENTREPRENEURS IN SRI LANKA DR. B. NIMALATHASAN CUSTOMER SATISFACTION THROUGH SERVICE QUALITY IN BANKING ARUN KUMAR.G, DR. S. J. MANJUNATH BASIS OF DONORS’ TRUST IN NPOS: A CASE STUDY OF ALL INDIA PINGALWARA CHARITABLE SOCIETY (AIPCS), AMRITSAR BALJIT SINGH, DR. FULBAG SINGH PHENOMENOLOGICAL DEMORALIZATION AMONGST THE SUB-CLINICAL MIZO ELDERLY C. LALFAMKIMA VARTE STRATEGIC PLANNING FOR RURAL COLLEGE USING SWOT-AHP METHOD

19-35

36-51

52-62

63-88

89-103

ENGINEERING

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1-18

104-117 GOMATESH M. RAVANAVAR, DR. POORNIMA M. CHARANTIMATH PROBLEMS FACED BY THE SUPERMARKETERS – A CASE OF KARNATAKA STATE (INDIA) DR. K. B. RAMAPPA, DR. S. MANIKANDAN

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www.zenithresearch.org.in

SR. NO.


WOMEN, WORK AND JOB SATISFACTION

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132-144 DR. YASHASWINI. B STATUS OF BASIC AMENITIES AND STUDENTS’ ACADEMIC ACHIEVEMENT IN ELEMENTARY SCHOOLS IN URBAN SLUMS OF VARANASI CITY JAI SINGH AN EMPIRICAL ANALYSIS OF INVESTOR PERCEPTION AND INVESTMENT PATTERN OF SELECTED INSTITUTION IN FINANCIAL SECTORS - A CASH STUDY OF PUBLIC AND PRIVATE SECTOR BANKS DR. KAILASH P. DAMOR STUDY ON THE PERCEPTION OF HEALTHCARE PROFESSIONALS AND PATIENTS ON PATIENTS’ VALUES & NEEDS IN A TERTIARY HOSPITAL, CHENNAI MS. BHOOMA DEVI, DR. M. GANESH, DR. N. PANCHANTHAM, DR. A.SIVANIAH SHOPLIFTING: LEADING TO HIGH SHRINKAGE IN RETAIL INDUSTRY SALI P.S., DR. TAPASYA JULKA, ASHA SHARMA EMPIRICAL ANALYSIS OF CAPM AND APT MODELS IN FMCG COMPANIES LISTED IN BSE STOCK EXCHANGE SHASHI GUPTA, DR. D.R. AGGARWAL APPRAISAL OF FINANCIAL PERFORMANCE OF URBAN CO-OPERATIVE BANKS OF WEST BENGAL DR. AMIT BASAK TESTING THE DAY OF THE WEEK EFFECT IN SOUTHEN MARKET DR. REKHA GUPTA ANALYSIS OF DEPOSITS AND THEIR MOBILISATION BY THE DINDIGUL DISTRICT CENTRAL CO-OPERATIVE BANK DR.S.RAJAMOHAN, T.DHANABALAN ANALYTICAL STUDY OF TRADITIONAL COMMUNICATION SYSTEM AND COMUNICATION SYSTEM MS. SAPNA TYAGI

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WIRE BASED WIRELESS 260-271


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DR. PHILIP MODY, SRI. RIKO MIHU, SRI. BENGIA TADA, DR. OKEN LEGO IMPORTANCE OF QUALITY WORK LIFE (QWL) IN TODAY'S DYNAMIC MARKET DR. P. S. RAVINDRA, MR. S. A. HUSSAIN IMPACT OF SELECTED MINOR GAMES PSYCHOLOGICAL FACTORS AMONG DEAF STUDENTS

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T.P. SHASHIKUMAR, S.P. KIRAN, K. RANGASWAMY THE PERCEPTION OF THE PARLIAMENTARIANS ON THE FACTORS CONSIDERED FOR THE APPOINTMENT AND PROMOTION OF POLITICAL LEADERS IN TANZANIA

IN

THE

NOVELS

297-305

306-315

OF

J. RANJITHKUMAR DISCOVERING THE APPROACHES OF ACTIVITY CENTERED LANGUAGE TEACHING PROGRAMMES DR. T. SASISEKARAN, J.KARTHIKEYAN HUMANISTIC APPROACH OF LANGUAGE TEACHING TO SOFT SKILLS PRABHAVATHY. P, DR. S. N. MAHALAKSHMI TRIBAL WOMEN EMPOWERMENT THROUGH KUDUMBASREE UNITS: A STUDY ON THE ULLADAN TRIBE OF NORTH PARAVUR TALUK IN ERNAKULAM DISTRICT OF KERALA MANJUSHA K. A. MEASUREMENT OF TACT - AN INNOVATIVE WAY TO PREVENT INDUSTRIAL DISPUTES DEVAPRIYA CHATTERJEE

282-290

ON

PRADEEP.C.S, AJEESH.P.T, ARUN.C.NAIR ORIGIN AND PERFORMANCE OF THE NATIONAL RURAL HEALTH MISSION IN INDIA

NORMAN A.S.K THE NARRATIVE TECHNIQUES KAMALA MARKANDAYA

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316-323

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GINGER CULTIVATION IN LOWER DIBANG VALLEY AND LOHIT REGIONS OF ARUNACHAL PRADESH: HOUSEHOLD INCOME, SAVING AND INVESTMENT


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CELEBRITY ENDORSERS IMPACT ON THE BRAND BUILDING - A CASE STUDY OF LUX P. RAJASHEKARREDDY IS TASLIMA NASRIN A SECULAR HUMANIST OR RADICAL FEMINIST?

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J. JAYA PARVEEN, V. RAJESH LEVEL - TESTING IN SOFTWARE TESTING 31.

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MR. SURESH A.S, MS. JYOTSNA SREENATH OVERCOMING THE CHALLENGES OF MANAGING SUSTENANCE AND GROWTH IN THE ERA OF ECONOMIC DOWNTURNS WITH THE HELP OF YOUTH MARKETING STRATEGIES IN INDIA HINA SHARMA INFORMATION COMMUNICATION TECHNOLOGY – ROLE, USAGE, AWARENESS BY THE DISTANCE LEARNER MEHAL PANDYA MONITORING AND TRACING SYSTEM FOR SOLDIERS WITH RADIO FREQUENCY IDENTIFICATION TECHNOLOGY

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DR. PRAMOD BUBNA


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390-398 SHIV KUMAR HASMUKHRAI TRIVEDI, KALYANI M RAVAL A STUDY ON ASSESSING THE PERFORMANCE OF MICRO, SMALL AND MEDIUM ENTERPRISE OF CANARA BANK


ENTREPRENEURSHIP EDUCATION: AN ASSESSMENT OF ITS EFFECT ON ENTREPRENEURIAL INTENSIONS (A CASE OF PUBLIC UNIVERSITIES’ STUDENTS IN ETHIOPIA) AFEWORK GETACHEW*; YOHANNES TIGRO** *Lecturer, Department of Management, College of Business and Economics, Arba Minch University, Ethiopia. **Lecturer, Department of Psychology, College of Social Sciences and Humanities, Arba Minch University, Ethiopia.

KEYWORDS: Entrepreneurship, entrepreneurship education, entrepreneurial intention, Self-employment. _____________________________________________________________________________

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Entrepreneurship education programmes in universities are important to increase the inspiration and intention by the side of students to be self employed after graduation. Owing to its importance, several researchers continually call for more studies in the area, particularly those which try to investigate the effect of entrepreneurship education. The empirical gap in the context of our country Ethiopia is much. The basic purpose of this study was to investigate the effect of entrepreneurship education on entrepreneurial intentions in the context of Ethiopian public higher institutions. To achieve this basic purpose, four research questions, four specific objectives and four hypotheses were put forward. In the endeavor of answering the research questions, achieving the objectives and testing the hypothesis; the study was designed as a crosssectional survey research. A multistage sampling design is employed to participate students from fourteen departments in five public Universities and from the distributed questionnaires, 404 from those who haven‟t taken the course and 418 from those who have taken the course are collected back resulting in a response rate of 82.2 percent. Based on Ajzen‟s ( 1991) theory of planned behavior, with the addition of entrepreneurial background, a research model was developed with entrepreneurial intention as a dependent variable; attitude towards entrepreneurship , perceived behavioral control as well as entrepreneurial background as independent variables and entrepreneurship education as mediating variable. Descriptive, correlation, regression as well as t-test analysis were employed in the analysis. The results of the questionnaire analysis indicated that the intention towards entrepreneurship among those students taking the course is higher than those who haven‟t taken the course. It follows then that entrepreneurship education can enhance entrepreneurial intention of students.


ABSTRACT


INTRODUCTION 1.1 BACKGROUND AND JUSTIFICATION Entrepreneurship as an academic discipline is still considered relatively new although its origin can be traced back to the seventeenth century, when economist Richard Cantillon coined the term, „entrepreneur‟ (Cantillon, 1755). The literal definition of this French term is „to undertake‟ or „go between‟ referring to the position an individual assumed when pursuing an opportunity. A person took on the associated risk but did not necessarily provide the capital – they were the „go between‟ (Hisrich, Peters, and Shepherd, 2005). Since this early period, the extant literature has been crowded with a variety of different definitions, domains, and contexts of entrepreneurship (Gartner, 1988; Davidsson, 2003). According to Joseph Schumpeter (1952), the function of entrepreneurs is to reform or revolutionize the pattern of production by exploiting an invention or more generally an untried technological possibility for producing a new commodity or producing an old one in a new way, opening a new source of supply of materials or a new outlet for products by reorganizing a new industry. Rosandant, (1984) defined entrepreneurship as the dynamic process of creating incremental wealth. While each of the above definitions views entrepreneurship from a different perspective, each contains similar notion. Hisrich et,al (2005), provide the following comprehensive definition:

There has been little rigorous research on the effects of entrepreneurship education (Gorman et al., 1997). Some empirical studies do confirm that there is a positive impact of entrepreneurship education courses or programs at universities on perceived attractiveness and perceived feasibility of new venture initiation (Tkachev and Kolvereid, 1999; Fayolle and Lassas-Clerc, 2006). Reviews of literature on enterprise and entrepreneurship education ( Gorman et al., 1997) and of particular entrepreneurship programs give evidence that these programs encourage

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For so long several studies have been undertaken in the area of entrepreneurship in the general sense and very recently many scholars have shown much interest on entrepreneurship education. Yet there is only limited amount of literature on entrepreneurship education and the area as a research focus is believed to be only at its infancy (Gorman et al., 1997). The majority of the studies so far aim at simply describing entrepreneurship courses (Vesper and Gartner, 1997), at discussing the contents of good entrepreneurship education or at evaluating the economic impacts of courses by comparing those who take the course and those who do not (Chrisman, 1997). Some researchers have identified a positive link between entrepreneurship education and entrepreneurial attitudes, intention or action, but the evidence is still limited (Gorman et al , 1997, 1994; Robinson et al.,1991; Kruegel and Brazeal, 1994).


“Entrepreneurship is the process of creating something different with value by devoting the necessary time and effort, assuming the accompanying financial, physical and social risks, and receiving the resulting rewards of monetary and personal satisfaction”.


entrepreneurs to start a business. But usually, there are serious methodological limitations. For example, studies rarely involve control groups or a form of stochastic matching (Block and Stumpf, 1992), basic controls as pre- and post-testing are not employed and most studies survey participants with an existing predisposition towards entrepreneurship, biasing the results in favor of educational interventions (Gorman et al., 1997). The place of entrepreneurship education in Ethiopia as a regular course matter with formal curricula is only less than a decade development, which was even limited to business disciplines. Very recently it is being offered to several disciplines including engineering, agriculture and natural and computational science areas.Due to the limited amount of research in the area of entrepreneurship, less is known about its status in the country. Even those few researches undertaken in the area concentrate on general terms and no focus is given to investigating the impacts of entrepreneurship education. Even though there are some researches undertaken suggesting that entrepreneurship education will enhance the self-employment intensions of students, there are regional differences. In Ethiopia, the recent regime has shown much emphasis for enterprising as well as entrepreneurship education. To support these policies and strategies for the development of enterprising, the importance fo entrepreneurship education is also evidenced. This is shown by the inclusion of entrepreneurship courses to both University and TVET level studies. The inclusion of entrepreneurship education on such a grand focus is meant to influence the intention of graduates on enterprising. With such emphasis however the empirical evidence regarding the influence of entrepreneurship education is very much limited.

Do students‟ backgrounds affect their level of entrepreneurial intensions?

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What is the relationship between attitude towards entrepreneurship & entrepreneurial intention?

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What is the relationship between perceived behavioral control & entrepreneurial intentions?

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Does entrepreneurship education affect students‟ entrepreneurial intensions?

1.2. OBJECTIVES OF THE STUDY The general objective of this research is to investigate the impact of entrepreneurship education on students‟ entrepreneurial intensions.

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The researchers have tried to find studies on the area in the context of the country, however , there are no similar studies ; published or unpublished in the context of our country Ethiopia to the researchers‟ reach making the area wide open for such types of studies. Thus the researchers believe that the area highly demands empirical justifications to uncover the effect of entrepreneurship education on students‟ entrepreneurial intentions in the case of Ethiopia. This research therefore will be conducted in alignment to, and aimed at answering the following basic questions.


SPECIFIC OBJECTIVES •

To investigate the effect of students entrepreneurial backgrounds on entrepreneurial intension.

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To investigate relationship between attitude towards entrepreneurship & entrepreneurial intention.

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To investigate the relationship between perceived behavioral control & entrepreneurial intentions.

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To uncover whether entrepreneurial intension of students taking the course entrepreneurship is relatively higher than those not taking the course or not.

1.3 MODELS TO STUDY ENTREPRENEURSHIP EDUCATION Different researchers approach entrepreneurship education in different perspectives. The common models perused predominantly are the social cognitive theory (Bandura, 1986), the trait theory, Shapero‟s entrepreneurial event model (Shapero and Sokol, 1982), as well as Ajzen‟s theory of planned behavior. 1. TRAIT ORIENTATION The trait theory is one of the oldest approaches in studying entrepreneurship intentions. Yet it is applied by many researches until recently. The trait approach to entrepreneurship has been pursued by many researchers in an attempt to separate entrepreneurs from non-entrepreneurs and to identify a list of character traits specific to the entrepreneur. There is no agreement however on the number of traits, specific to the entrepreneur, or their validity. Chell (2000) suggests that it is not clear whether some of the studied attributes precede entrepreneurial behavior or whether entrepreneurs acquire them in the process. Furthermore, entrepreneurs may possess some, but not necessarily all, of the traits highlighted.

3. SOCIAL COGNITIVE CAREER THEORY With its foundation in Bandura‟s (1986) Social Cognitive Theory, SCCT asserts that the psychological process underlying career decisions and behaviors is dictated largely by the

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This model suggests that human behaviour is in a state of inertia until an event creates displacement resulting in behaviour change (Shapero & Sokol , 1986). Displacement comes in either a negative or positive form described by as the „push‟ theory and the „pull‟ theory. The negative displacement of, for example, losing a job pushes an individual into self-employment. On the other hand, the positive displacement of, for example, financial assistance pulls an individual into self-employment. Unfortunately, empirical studies of these specific push and pull factors are limited with results offering little predictive ability (Krueger & Reilly 2000) and logically, displacement may cause other behaviors than self-employment.


2. THE ENTREPRENEURIAL EVENT MODEL


interplay of three key constructs: 1) self-efficacy, which is defined as the dynamic set of beliefs about one‟s capacity to carry out a specific course of action within a given domain, 2) outcome expectations, which are characterized as the expected consequences of a given behavior, and 3) goals, which are specified in terms of one‟s determination to engage in a specific behavior. 4. THE THEORY OF PLANNED BEHAVIOR FIG. 1 THE THEORY OF PLANNED BEHAVIOR (TPB) MODEL ATTITUDE TOWARDS THE BEHAVIOUR

SOCIAL NORMS INTENTION

BEHAVIOR

PERCIEVED BEHAVIORAL CONTROL

1.4 THE RESEARCH MODEL IN THIS STUDY According to Mcstay (2008), many researchers have used the Theory of planned behavior for its predictive power and applicability across a variety of content domains including entrepreneurial intentions. Ajzen „s theory may be applied to nearly all voluntary behaviors and it provides quite good results in very diverse fields, including the choice of professional career (Ajzen, 2001; Kolvereid, 1996). To this effect this model will be the basis in this study. Thus based on Ajzen‟s

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Theory of planned behavior (TPB), explains intentions by means of attitudes, perceived behavioral control (PBC), and subjective norms (Gelderen, et,al, 2008). The central factor of the theory is the individual intention to perform a given behavior. The main postulate is that intention is the result of three conceptual determinants i.e the attitude toward behavior (the degree to which a person has a favorable or unfavorable evaluation or appraisal of the behavior in question), the subjective norms (perceived social pressures to either perform or not the related behavior), and perceived behavioral control (the perceived ease or difficulty of performing behavior where individuals tend to adopt behaviors they think they will be able to control and master.


Source: Ajzen (1991), the theory of planned behavior


theory of planned behavior with the addition of previous entrepreneurial experience and entrepreneurship education, the following variables are included in the model of this study: ATTITUDES TOWARD ENTREPRENEURSHIP: To measure the students‟ attitudes toward entrepreneurship, the Entrepreneurship intention questionnaires (EIQ) as well as the instruments developed by , Krueger & carsudl (1993) , Chen et, al. (1998) , Robinson et al. (1991) are used as basis. The attitude measures used in this study are made to include affective, cognitive as well as behavioral components. To see the role of attitude towards intention, the following hypothesis is forwarded: HYPOTHESIS 1: ATTITUDE TOWARDS ENTREPRENEURSHIP HAS POSITIVE RELATIONSHIP WITH AND EXPLAINS TO THE VARIANCE IN THE INTENTION OF BECOMING AN ENTREPRENEUR PERCEIVED BEHAVIORAL CONTROL: perceived behavioral control also referred as perceived feasibility in Shapero‟s model or self efficacy of Bandura (1986) represents one‟s own belief on one‟s skills and abilities towards a particular behavior. To measure perceived behavioral control instruments applied by Chen et,al. ( 1998) and Forbes ( 2005) are reviewed. And based on the works of the authors stated, a construct with items on four major categories are developed. HYPOTHESIS 2: PERCEIVED BEHAVIORAL CONTROL HAS POSITIVE RELATIONSHIP WITH AND EXPLAINS TO THE VARIANCE IN THE INTENTION OF BECOMING AN ENTREPRENEUR

ENTREPRENEURIAL BACKGROUND: Previous business exposure has been shown to be a consistent and strong predictor of entrepreneurial intentions (Hisrich et.al,2005). Individuals who have family members and/or close friends who are entrepreneurs tend to be more likely to start their own business than those who have not experienced the same level of exposure to entrepreneurship (Collins and Moore, 1970; Cooper and Dunkelberg, 1984 Matley (2006), suggest that Personal, family and peer influences can affect graduates‟ entrepreneurial motivation and career aspirations (Matlay, 2006) in both a positive and a negative way. Other

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For measuring the students‟ intentions to new venture creation, this study uses a six item construct based on the Entrepreneurial intention questionnaire (EIQ). Similar construct items for studying intentions are also used by different researchers (Linan, 2006; Davidson, 1995; Krueger & Carsud , 1993 ; Chen et,al., 1998).


ENTREPRENEURIAL INTENTIONS: Intentions are signals of an individual‟s commitment to carry out a specific behavior and it has been proven that intentions precede behavior (Ajzen and Fishbein, 1975). According to Ajzen (1991), intentions are the best predictors of behavior and are therefore considered as important indicators of students‟ behavior to be entrepreneurs. Supporting Ajzen‟s theory of planned behavior, Meta-analyses research by Kim and Hunter (1993) using a path analysis methodology confirmed that the association between attitudes and behavior can be fully explained by attitude-intention and intention-behavior relationships.


studies have also have identified role models and networks as important (Hisrich and Brush, 1984; Kets de Vries, 1977; 1989; Taylor and Thorpe, 2004; Wilson & Marlin , 2007). To measuring entrepreneurial background the instrument developed by Mcstay (2008) is adapted and two additional questions are included in the survey in this study. HYPOTHESIS 3: ENTREPRENEURIAL BACKGROUND HAS POSITIVE RELATIONSHIP WITH THE INTENTION OF BECOMING AN ENTREPRENEUR ENTREPRENEURSHIP EDUCATION: several studies have found a positive relationship between entrepreneurship education and entrepreneurial intentions (Mcstay, 2008;. Oosterbeek et, al. 2010, Gorman et, al. 1997;Krueger & Carsud , 1993). There are no similar studies found in the context of Ethiopia to the researchers reach. Thus this study tried to replicate the results founded by the other researchers in the relationship of entrepreneurship education that are made in other countries. To measure entrepreneurship education, a construct with five items is employed. HYPOTHESIS 4: THE INTENTION OF BECOMING AN ENTREPRENEUR IS HIGHER FOR THOSE TAKING THE COURSE THAN THOSE WHO HAVEN’T TAKEN THE COURSE The validity and reliability of all the measuring instruments are checked using appropriate mechanisms. Experts in the area of entrepreneurship education are used in addition to pilot test administration of the questionnaires. For reliability test, Cronbaches alpha are tested and all the constructs have scored well beyond the cut-off point i.e. 0.70. FIG. 2 THE MODEL FOR THIS STUDY

ENTREPRENEURIAL BACKGROUND PERCIEVED BEHAVIORAL CONTROL

ENTREPRENEURSHIP EDUCATION

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ENTREPRENEURIAL INTENTION


ATTITUDE TOWARDS ENTREPRENEURIAL BEHAVIOUR


Source: developed for this study based on Ajzen‟s (1991), TPB model II: METHODOLOGY 2.1 RESEARCH DESIGN This study is categorized under the cross-sectional survey research and it is predominantly a quantitative research. 2.2 SAMPLING DESIGN The researchers employed a multi stage sampling technique in this study. First using judgmental sampling technique 5 universities are selected. Then based on the proportion of students in each selected university, compared to the total number of students in the selected universities, students to be included in the sample are determined using simple random sampling technique. 2.3 DATA GATHERING TOOLS In this study questionnaire are selected as an appropriate data gathering tool. Using the Likert‟s scale, a five scale category responses are developed to provide manageable and controllable options for respondents. 2.4 THE MEASURING INSTRUMENTS Based on Ajzen‟s(1991), theory of planned behavior ,with the addition of entrepreneurial background, the following constructs are developed for the study:TABLE 1: THE INDEPENDENT VARIABLES CONSTRUCT Variables

Construct focus

Krueger & Kickul (2004), Chen et,al. Affective , cognitive and behavioral the (1998), Robinson et,al.(1991) attitudes towards entrepreneurship as self assessed

Perceived behavioral control

Krueger & Kickul(2004), et,al.(1998), Forbes (2005)

Entrepreneurial Background

Mcstay ( 2008)

Chen Opportunity recognition and creative ability , financial management , managerial and team building abilities , managing uncertainty and challenges etc. Family business background, selfbusiness background, role models etc.


Attitude towards behavior

Contributing authors

8

Source: Developed for this study


TABLE 2: THE DEPENDENT VARIABLE CONSTRUCT Variables

Contributing authors

Construct focus

Entrepreneurial Intentions

Linan (2006), Davidson (2005) , Chen Intention to start business after et,al.(1998) Krueger & Carsud( 1993), graduation including the next Mcstay ( 2008), two, five or ten years.

Source: Developed for this study III: FINDINGS AND DISCUSSION The survey consisted of a five-page, structured questionnaire. Students answered items that addressed their entrepreneurial intentions, perceived feasibility (behavioral control) of starting a business and attitude towards entrepreneurial behavior. They also responded to questions about family and self-business backgrounds. Response options included five-point Likert scales and appropriate categorical scales for the background questions. With the approval and cooperation of lecturers, the data collectors distributed the majority of questionnaires during class sessions. Most students completed and returned them during the sessions. Participation was voluntary and 822 students completed and submitted the questionnaire, resulting in a response rate of over 82.2%. This study is undertaken in five public Universities in Ethiopia; Arba Minch University, Wolaita Sodo University, Hawassa University, Adama University as well as Addis Ababa University. Undergraduate Students have participated from four colleges and under that 14 departments have participated and a total of 822 students in both categories i.e. 404 those that do not take the course and 418 from those who have taken the course entrepreneurship.

The variables consist of three interrelated elements to the intention towards entrepreneurship (ITE), which are Attitude toward the Behavior (ATB), Entrepreneurial background (EB), and Perceived Behavior Control (PBC).

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In this study parametric statistical analyses were used (e.g. t-tests, correlation analysis and regression analysis). Skewness and kurtosis of the data was investigated to assess the normality of distribution. A correlation matrix was generated to examine the potential threats of multicollinearity and singularity, and linearity was addressed by viewing boxplots and histograms for each of the variables.


3.1: DESCRIPTIVE ANALYSIS


TABLE 3: A COMPARATIVE DESCRIPTIVE ANALYSIS OF THE VARIABLES N EB ATB PBC INTENSION Valid N (listwise)

821 821 821 821 821

Descriptive Statistics Minimum Maximum 1 1 2 2

Mean

Std. Deviation

1.63 3.51 4.17 3.76

.603 .802 .970 .820

3 5 5 5

Source: SPSS output. The descriptive analysis of the independent and dependent variable was conducted to obtain mean values. ATB, PBC and INTENTION responses are measured based on a five points likert scale from 1= very low to 5= very high and EB is measured based on a three points scale where 1= most unfavorable 2= moderately favorable and 3= most favorable .The mean for Intention is 3.76 which shows a much favorable intention toward entrepreneurship. However, from the descriptive analysis it is stated that PBC has the highest mean value that is 4.17 compared to the rest of the mean values where ATB has the mean value of 3.51, and EB has a mean value which is 1.63 (Table 3 above). 3.2 CORRELATION ANALYSIS In the correlation analysis, it was found that there are strong positive relationships between ATEB (r=.667, p ttab value and p-value < α = 0.05 for all the select factors under study.

N

Mean

Std. Deviation

Std. Error Mean

Easy to operating hour

150

3.8067

.86464

.07060

Convenience business hours

150

3.3667

1.12576

.09192

to 150

4.3200

.81364

.06643

Providing customers

information

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EMPATHY


TABLE 4.1 ONE-SAMPLE STATISTICS


TABLE 4.2 ONE-SAMPLE TEST Test Value = 3 95% Confidence Interval of the Difference

EMPATHY t Easy hour

to

operating 11.426

df

Sig. tailed)

(2- Mean Difference

Lower

Upper

149

.000

.80667

.6672

.9462

Convenience business hours

3.989

149

.000

.36667

.1850

.5483

Providing information customers

19.869

149

.000

1.32000

1.1887

1.4513

to

Based on the results of the One sample t-test analysis at 95% confidence level, the Hypothesis H0 - There is no significant influence of empathy on customer satisfaction at SBI bank in Mysore is rejected, and Ha - There is a significant influence of empathy on customer satisfaction at SBI bank in Mysore is not rejected since one sample t-test successfully revealed a statistically significant values for physical aspects. Mean values fall in positive side of RSQS rating (less than 3), tcal value > ttab value and p-value < α = 0.05 for all the select empathy factors under study.

N

Mean

Std. Deviation

Std. Error Mean

Infrastructure parking, ATM etc

facilities, 150

3.7067

.45682

.03730

Banking network

150

3.7067

.45682

.03730

Modern equipment

150

4.1667

.85465

.06978

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TANGIBLES


TABLE5.1 ONE-SAMPLE STATISTICS


TABLE 5.2 ONE-SAMPLE TEST Test Value = 3 95% Confidence Interval of the Difference

TANGIBLES df

Sig. tailed)

Infrastructure 18.946 facilities, parking, ATM etc

149

.000

.70667

.6330

.7804

Banking network

18.946

149

.000

.70667

.6330

.7804

Modern equipment

16.719

149

.000

1.16667

1.0288

1.3046

t

(2- Mean Difference

Lower

Upper

Based on the results of the One sample t-test analysis at 95% confidence level, the Hypothesis H0 There is no significant influence of tangibles on customer satisfaction at SBI bank in Mysore is rejected, and Ha - There is a significant influence of tangibles on customer satisfaction at sbi bank in Mysore is not rejected since one sample t-test successfully revealed a statistically significant values for personal interaction factor. Mean values fall in positive side of RSQS rating (less than 3), tcal value > ttab value and p-value < α = 0.05 for all the select tangibles factor under study.

Mean

Std. Deviation

Std. Error Mean

Safety of customer investment 150

3.4867

.50150

.04095

Keep confidentiality account and transaction

of 150

3.8467

1.28354

.10480

service 150

3.2400

.42851

.03499

150

3.6800

.81364

.06643

Various offered

kind

N

of

Reputation of the bank

58

COMPETENCE


TABLE6.1 ONE-SAMPLE STATISTICS


TABLE6.2 ONE-SAMPLE TEST Test Value = 3 95% Confidence Interval of the Difference

COMPETENCE df

Sig. tailed)

Safety of customer 11.885 investment

149

.000

.48667

.4058

.5676

Keep confidentiality 8.079 of account and transaction

149

.000

.84667

.6396

1.0538

Various kind service offered

of 6.859

149

.000

.24000

.1709

.3091

the 10.236

149

.000

.68000

.5487

.8113

t

Reputation bank

of

(2- Mean Difference

Lower

Upper

Based on the results of the One sample t-test analysis at 95% confidence level, the Hypothesis H0 - There is no significant influence of competence on customer satisfaction at SBI bank in Mysore is rejected, and Ha - There is a significant influence of competence on customer satisfaction at SBI bank in Mysore is not rejected since one sample t-test successfully revealed a statistically significant values for reliable service factor. Mean values fall in positive side of RSQS rating (less than 3), tcal value > ttab value and p-value < α = 0.05 for all the select competence factor under study. TABLE 7 ANOVA( AGE)

df

Mean Square F

Sig. .860

Between Groups

6.126

4

1.531

Within Groups

680.147

145

4.691

Total

686.273

149

.326


Reliability

of

59

Sum Squares


Empathy

Tangibles

Competence

Between Groups

70.521

4

17.630

Within Groups

764.972

145

5.276

Total

835.493

149

Between Groups

61.764

4

15.441

Within Groups

376.776

145

2.598

Total

438.540

149

Between Groups

41.722

4

10.430

Within Groups

342.652

145

2.363

Total

384.373

149

3.342

.012

5.942

.000

4.414

.002

To determine whether any significant differences existed between the respondent ages regarding the service quality factors a one way Anova test was carried out. The above table shows the ANOVA analysis results of the comparison of the four dimensions between ages. Out of four dimensions three dimensions of service quality showed statistically significant differences (p < .05) between the age groups. Among the five dimensions, empathy showed the difference of (f = 33.42, p < .05), and the tangibles presented the difference of (f = 59.40, p < .05), and competence showed (f = 44.14, p < .05). As a result we accept the hypothesis for the variables: empathy, tangible and competence reject it for the rest of the dimensions

60

As per the study, State Bank of India is providing the services to the satisfaction of the customers. The bank needs to consider the weak points so that it can meet the customer‟s expectation. The findings conclude that satisfaction seems to be the most important factor with the bank. The results also show that there is a positive relationship between satisfaction and service dimensions that means increase or decrease in level of satisfaction is influenced by service quality. . Those who are satisfied with the bank they also intend to continue with the bank as a loyal customers. Moreover, the overall satisfaction with the bank has a significant relationship with recommending the bank to other people.


CONCLUSION


REFERENCES 1. Andaleeb, S Sand Basu, A K (1994). “Technical Complexity and Consumer Knowledg as Moderators of Service Quality Evaluation in the Automobile Service Industry,” Journal of ing, 70(4), 367-81. 2. Anderson, C and Zeithaml, C P (1984). “Stage of the Product Life Cycle, Business Strategy, and Business Performance,” Academy of Management Journal, 27 (March), 524. 3. Angur, M.G.; Natarajan, R; and Jahera, J.S. (1999); “Service Quality in the Banking Industry: An assessment in a Developing Economy”, International Journal of Bank Marketing, Vol.17, No.3, pp.116-123. 4. Babakus, E and Inhofe, M (1991). “The Role of Expectations and Attribute Importance in the Measurement of Service Quality” in Gilly M C (ed.), Proceedings of the Summer Educator‟s Conference, Chicago, IL: American Marketing Association, 142-44. 5. Babakus, E and Mangold, W G (1989). “Adapting the Servqual Scale to Hospital Services: An Empirical Investigation,” Health Service Research, 26(6), 767-80. 6. Bhat, M.A. (2005); “Service Quality Perceptions in Banks: A Comparative Analysis”, Vision –The Journal of Business Perspective, Vol.9, No.1, (Jan – Mar),pp.11-20. 7. Brady, M K and Robertson, C J (2001). “Searching for a Consensus on the Antecedent Role of Service Quality and Satisfaction: An Exploratory Cross-National Study,” Journal of Business Research, 51(1) 53-60. 8. Brown, TJ, Churchill, G A and Peter, j p (1993). “Improving the Measurement of Service Quality,” Journal of ing, 69(1), 127-39. 9. Churchill, C A and Surprenant, C (1982). “An Investigation into the Determinants Customer Satisfaction,” Journal of Marketing Research, 19(November), 491-504.

12. Parasuraman, A., Zeithaml, V.A. and Berry, L.L. (1985). A conceptual model of service quality and its implications for future research. Journal of Marketing. 43(Fall), pp. 41-50. 13. Raajpoot, N. (2004). Reconceptualizing service encounter quality in a non-western context. Journal of Service Research. 2, pp. 181-201.

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11. Parasuraman, A., Berry, L.L. and Zeithaml, V.A. (1993). More on improving service quality measurement. Journal of ing. 69(Spring), pp. 140-7.


10. Parasuraman, A., Berry, L.L. and Zeithaml, V.A. (1991b). Refinement and reassessment of SERVQUAL scale. Journal of ing, 67 (4), pp. 420-50.


14. Spreng, R.A., MacKenzie, S.B., Olshavsky, R.W. (1996). A re-examination of the determinants of consumer satisfaction. Journal of Marketing, 60 pp.15-32. 15. Tsoukatos, E. and Rand, G.K. (2007). Cultural influences on service quality and customer satisfaction: evidence from Greek insurance. Managing Service Quality. 17 (4), 467-85. 16. Weekes, D.J., Scott, E.M. and Tidwell, P.M. (1996). Measuring quality and client satisfaction in professional business services. Journal of Professional Services Marketing. 14 (2), 25-37.

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17. Winsted, F.K. (1997). The service experience in two cultures: a behavioral perspective. Journal of ing, 73(3), pp. 337-60.


BASIS OF DONORS’ TRUST IN NPOS: A CASE STUDY OF ALL INDIA PINGALWARA CHARITABLE SOCIETY (AIPCS), AMRITSAR BALJIT SINGH*; DR. FULBAG SINGH** *Research Scholar, Department of Commerce and Business Management, Guru Nanak Dev University, Amritsar, Punjab, India. **Professor, Department of Commerce and Business Management, Guru Nanak Dev University, Amritsar, Punjab, India.

ABSTRACT The study investigates the basis of donors‟ trust in the Non-Profit Organizations by taking a case study of All India Pingalwara Charitable Society, Amritsar (AIPCS). An attempt has been made to identify the reasons of trust and confidence shown by the donors in giving the donation to a specified charity. Simple arithmetic average and percentages were used for finding out the sequence of importance of the reasons. The T and one-way ANOVA tests have been applied for checking differences in the perceptions of various donors‟ categories based on the demographics. It has been found from this study that the donors show trust if, a charity has the good reputation, works for a cause and is set up for the public good. The study also examines the impact of charity‟s performance on its donors‟ trust by applying the Ordered Logistic Regression. The four parameters were used for assessing the performance of AIPCS. All except „reasonable proportion of the donation gets to the end cause‟ have found to be statistically significant in building the trust and confidence among donors. The parameter „AIPCS spends wisely and effectively‟ is the most important driver of the donors‟ trust and confidence. Finally, our study throws a light on the extent of benefits derived by the donors from the said organization‟s services. KEYWORDS: Donors‟ trust, donation, performance, charitable. ___________________________________________________________________________

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Philanthropic organizations strongly depend on the donors‟ trust. The donors often don‟t know what happens exactly to their donations, how much is saved for the overhead costs and where the money is actually spent. They don‟t even know whether their donations are efficiently and effectively used for the purpose for which charitable organizations exist. Charitable organizations generally tend to justify their existence in emotional or moralistic terms because of distribution constraint. The donation of money represents a form of „gift‟ which does not require an immediate return or exchange, rather it generates a kind of symbolic credit, which contributes to a larger social good (Tonkiss Fran, 1999).


INTRODUCTION


In India, there are a number of charity laws namely Society Registration Act 1860, Religious Endowment Act 1863, Charitable and Religious trust Act 1920, Waqf Act 1995, Indian Trust Act 1882, Charitable Endowment Act 1890, Bombay Public Trust Act 1950 and other State Acts. The Second Administrative Reform Commission of India has stated in its ninth report (Social Capital – A Shared Destiny) that „‟the multiplicity of charity laws has prevented evolution and growth of a proper institutional framework in this sector. While voluntary organizations often feel harassed in complying with the various legal obligations, institutions of the government too have not been effective in regulating the sector and securing legal compliance. Instances of misuse of tax provisions, fraud and poor governance have become frequent (Ninth report of Second Administrative Reform Commission of India 2008: 36).” In addition to this, there is no accreditation system in India for the charitable organizations, which signals trustworthiness to the donors. The question arises, how can the donors ascertain whether their trust in these organizations is legitimate? How can the donors make sure that their donations are optimally used and get to the end cause? The trust of the people in these organizations may fall due to the above reasons. The question of the donors' trust in non-profit organizations is a serious one and deserves a careful examination. By taking the case study of All India Pingalwara Charitable Society (AIPCS), this article examines the factors which provide the basis for donors‟ trust to support financially these organizations in India.

64

All India Pingalwara Charitable Society (AIPCS) is one of the largest multitasking non-profit organizations in India. It was founded by the Bhagat Puran Singh in the August, 1947 with a few discarded patients. At present, the AIPCS is taking care of approximately 1600 inmates by the end of August 2011. These inmates include a high percentage of the mentally retarded patients aging from the two years to eighty years. Besides these patients, a number of patients suffering from the TB, AIDS, blindness and deafness are included in them. The AIPCS is providing a free education and residence to the destitute, orphan and poor children. It also runs a number of schools for the normal, mentally retarded and deaf-and-dumb children in which no fee is being charged by it. Besides this, it is spreading awareness about the environment protection, zero budget natural farming and social evils by conducting a free seminars and distributing free literature in the various villages of India. It has its own printing press, which provides a wide range of literature free of cost for the guidance and reconstruction of man and society. It has been awarded with a heap of honours by the Indian Government for the above said contribution to the society. At present, the AIPCS has a number of branches working nationally and internationally for well-being of the society at large. It has a largest donors‟ base in the State of Punjab. The AIPCS accepts donation through cash by hand, cheque by hand or post, sponsoring someone, collection boxes fixed outside the holy Sikh shrines and public places, door to door collection, direct debit and in kind. The AIPCS communicates its performance to the public through leading newspapers and its own published literature from time to time.


THE BRIEF INTRODUCTION OF ALL INDIA PINGALWARA CHARITABLE SOCIETY AMRITSAR (AIPCS)


LITERATURE REVIEW The review of relevant studies related to the research topic has been carried out and is given as follows: Bekkers (2003) examined the relationship between trust and charitable giving in his study. The researcher has found that charitable organizations can increase the public‟s trust by signalling their trustworthiness. The author has given the example of the Netherlands which shows how a system of accreditation can be an instrument for signalling trustworthiness to the public. Donors who are aware of the accreditation system have more trust in charities than those who are not and they give more money to charitable causes. The author said that the charitable organizations have only limited control over the public‟s trust because it is also rooted in a general social trust in institutions and fellow citizens. The author has also found that general social trust increases the amount which people give to charitable causes, even more so when people know about the accreditation system. However, the author was not discussed what should be the basis of donors' trust, where there is no accreditation system in a country like India.

65

Reinhardt (2009) explored the donor–recipient relationship in non-profit funding and the effects of signalling on non-profit resources. Multivariate analysis of data collected shows that donors channelize their money to organizations exhibiting higher levels of reliability, accessibility, credibility, reputation and fundraising specialization. The author has found that non-profits emit these signals through obtaining certification, employing staff members who speak various languages, acquiring the endorsement of international donors and undergoing third-party audits. The donors are giving their money to the most skilful signallers. Larger geographic ranges of service, more full time staff and religious affiliation also increase an organization‟s yearly intake. The author uses a signalling game in his study to sharpen understanding of non-profit fundraising and derive the conditions under which signals will be credible. Interview and survey evidence gathered in Brazil indicate that signals of accessibility, reliability, and credibility attract the highest payoffs. However, the author has not given attention regarding performance indicators of charitable organizations, which could form the basis of donor‟s trust and also signal reliability and credibility.


Sargeant and Lee (2004) explored the relationship among trust, relationship commitment and donating behaviour. The technique of structural equation modelling is used to determine whether the trust directly affects giving behaviour or whether its effects are mediated by the commitment. The authors found that commitment plays a mediating role. The relationship commitment is maximized by the extent to which trust is present. The authors have discussed four indicative trust behaviours namely; relationship investment, mutual influence, communication acceptance and forbearance from opportunism. Finally, the authors have concluded that communicating antecedents of trust to the donors and delivering a high standard of service from the fundraising department would be likely to increase levels of trust that would, in turn, build commitment and stimulate higher levels of charity giving. However, the authors have not discussed, what are the antecedents of trust? They have also not given attention regarding the effect of charity performance on donors‟ trust.


Sloan (2009) discussed the current landscape of accountability systems and accountability ratings. The author describes a model for estimating the effect of ratings systems on donor behaviour within the theoretical context of information asymmetry. Hypotheses are tested with non-profit ratings for New York charities from the Better Business Bureau‟s Wise Giving Alliance to estimate the effect of accountability ratings on the amount of contributions an organization receives. Results indicate that the Wise Giving Alliance “pass” ratings have a statistically significant effect on the contributions received and “did not pass” ratings are insignificant. However, there is no accountability rating system for charitable organizations in India. Handy et al., (2010) explored consumers‟ abilities to identify non-profits and their levels of trust in non-profits as compared to for-profits and government organizations as well as their proclivity to patronize non-profits as direct and indirect consumers. From a sample of 1,169 university students, the authors found out that the students are more likely to trust as well as to volunteer and donate to non-profits than other types of organizations. In purchasing health care and education, they are also more likely to patronize non-profits. Moreover, most cannot spontaneously identify the status of „well-known‟ non-profits and in this regard they did not differ from the front line staff working for those organizations. But, authors have not discussed the basis on which non-profits can acquire status of „well-known‟.



To find out the reasons for showing trust by the donors in giving the donation to AIPCS.



To examine the impact of AIPCS performance on the donors‟ trust.

66

The issue of the donors' trust has received a broad attention of the researchers. Brody, 2002; Gronbjerg, 1993; Salamon, 1999, 2002, 2003; and Weisbrod, 1977 recognized the need for and promoted the use of accountability systems. Some authors namely; Benett & DiLorenzo, 1994; Bies, 2001; Edwards & Hulme, 1996; Kanter & Summers, 1987 and Murray, 2001 focused specifically on the effectiveness of non-profit accountability systems. Sloan, 2009 discussed the systems of accountability and examined the effect of accountability ratings on donor behaviour. Bekkers, 2003 studied the relationship between the donors‟ trust and charitable giving. He also observed the effect of awareness about the accreditation system on the donors‟ trust. Sargeant and Lee, 2004 explored the relationship among the trust, relationship commitment and the donating behaviour. Reinhardt 2009 explored the donor–recipient relationship in the non-profit funding and the effects of signaling on its resources. Handy et al., 2010 explored the consumers‟ abilities to identify the non-profits and their levels of trust in the non-profits as compared to the for-profits and the government organizations as well as their proclivity to patronize the nonprofits as direct and indirect consumers. However, in India, there is no accountability rating and accreditation system. No author has discussed the basis of donors‟ trust in the absence of an accreditation and accountability ratings system. An attempt has been made in the present study to provide the basis for donors‟ trust in the absence of an accreditation and accountability ratings system. This research paper aims at the following objectives:-


RESEARCH GAP


THE BASIS OF DONORS’ TRUST The countries where there is an accreditation and accountability ratings system, the decision on the part of donors, whether to support particular charity or not is influenced by these ratings system. These systems are helping the donors to make well informed decisions about where to place their giving power. For example; American rating agency Wise Giving Alliance (2011) states, “The BBB Wise Giving Alliance offers guidance to the donors on making informed giving decisions through our charity evaluations”; Charity Navigator‟s (2011) self-avowed purpose is “to advance a more efficient and responsive philanthropic marketplace by evaluating the financial health of America‟s largest charities”; Ministry Watch (2011) calls itself “a place where you can learn about how to be a „responsible giver‟” and the American Institute of Philanthropy (2011) refers to itself as “a nationally prominent charity watchdog service whose purpose is to help donors make informed giving decisions.” The country where there is no accreditation and accountability ratings system, the donor‟s decision whether to support the particular charity or not, is dependent on its performance. For assessing the performance of charities, the Paul Light of New York University and the Brookings Institutions has conducted a series of surveys on the public trust in non-profits. The central question they used in their surveys was “How much trust and confidence do you have in charitable organizations: a great deal, a fair amount, not too much or none". In addition to this question, the Brooking surveys used four parameters to assess performance by asking respondents for their views on whether the charities spend money wisely, do a good job of running their programs and services, help people and are fair in their decisions. The survey conducted by Opinion Leader Research in 2005 on behalf of Charity Commission also used four parameters for assessing performance of the charities in the England and Wales. The public of the England and Wales were asked for their views on whether the charities ensure a reasonable proportion of donation gets to end cause, spend wisely and effectively, being well managed and are having the ethical and honest fund collectors. In 2008, survey conducted by Ipsos MORI on the behalf of Charity Commission (U.K.) also used the same four parameters for assessing the performance of the charities in the England and Wales.

Hypothesis 2: The effective management increases the trust and confidence among donors. Hypothesis 3: The assurance of reasonable proportion of the donation gets to the end cause stimulates the trust and confidence among donors. Hypothesis 4: The honesty of fund collectors increases the trust and confidence among donors.

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Hypothesis 1: The wise and effective spending builds the trust and confidence among donors.


In the present study, parameters used by the Opinion Leader Research and Ipsos MORI have been taken for assessing the performance of All India Pingalwara Charitable Society, India. To test the effect of AIPCS performance on the trust and confidence of donors in giving the donation, following four possible hypotheses have been constructed.


DATA COLLECTION For examining the basis of donors‟ trust, a survey instrument was prepared from the available literature with some modification as per the need. It was pretested and administered to a sample of 1000 donors of AIPCS. The donors were selected by the systematic random sampling from the list of donors provided by AIPCS. The present study is limited to the donors of the State of Punjab because AIPCS has the maximum number of branches in the State of Punjab. The questionnaire was sent to 1000 donors along with the prepaid return envelope. It was a paperpencil survey. 348 questionnaires were filled up by the respondents. 44 questionnaires were found to be incomplete and excluded from the analysis. Remaining 304 questionnaires were used for the analysis. The data were collected during the year 2009 and 2010. Table I shows the demographic profile of the respondents. TABLE I: DEMOGRAPHIC PROFILE OF RESPONDENTS Demographic Category

Frequency

Percentage

Male

199

65.46

Female

105

34.54

Total

304

100.00

20 years or less

7

2.30

21 - 30 years

96

31.58

31 - 40 years

50

16.45

41 - 50 years

54

17.76

51 years or above

97

31.91

Total

304

100.00

Rs. 15,000 or less

165

54.27

Rs. 15,001 - Rs. 30,000

110

36.18

Rs. 30,001 - Rs. 45,000

15

4.93

More than Rs. 45000

14

4.61

Total

304

100.00

Variable

Gender

68

Monthly Income


Age


Education

Up to Higher level

18

5.92

Up to Senior Secondary level

90

29.61

Up to College level

88

28.95

Up to University level

108

35.53

Total

304

100.00

Businessperson

33

10.86

Professional

20

6.58

Government and Private Employees

147

48.36

Student

58

19.08

Others

46

15.13

Total

304

100.00

Occupation

Source: Survey of AIPCS donors 2010, N = 304. RESEARCH METHODOLOGY To find out the reasons for showing trust and confidence in choosing AIPCS for donation, donors were asked to rank the eight statements. Simple arithmetic average and percentages were used for finding out the sequence of importance of reasons. T and one-way ANOVA tests have been applied for checking the differences in the perceptions of various donors‟ categories based on demographics. IBM SPSS statistics 19 (Evaluation version) software was used for it. To check whether the AIPCS performance affects donors‟ trust or not, Ordered Logistic regression has been applied by using the Stata 12 software. The tables, bar diagrams and pie charts have been used to demonstrate the results.

To investigate reasons for choosing the AIPCS for donation, donors were asked to rank the following eight statements. 1. It is set up for the public good. 2. It was established by the Bhagat Puran Singh. 3. It is undertaking selfless service to the humanity.


REASONS FOR THE TRUST IN AIPCS

69

4. It is nearest to your place.


5. I have heard the lots about it. 6. It is an institution established by a Sikh person. 7. I have seen what the AIPCS does. 8. It follows the teachings of Guru Nanak Sahib that all human beings are the creation of the Almighty. The statements 1,3,4,5 and 7 are understood and self-explanatory. These statements were taken from the surveys conducted by Opinion Leader Research and Ipsos MORI on the behalf of charity commission U.K. The statement 2 was constructed due to the popularity of Bhagat Puran Singh at the national and international level. Bhagat Puran Singh was awarded a number of prestigious awards at the national and international level due to his great contribution to the society. The statement 3 indicates the present reputation of AIPCS because Bhagat Puran Singh was died in the year 1992. The statement 6 was added because the survey has been conducted in the State of Punjab. The State of Punjab comprises majority of population from Sikh community. The statement 8 was added because Bhagat Puran Singh was a strong follower and practised the teachings of Guru Nanak Sahib through his founded AIPCS. The difference between statement 6 and 8 is that the person belonging to Sikh community may not be practising the teachings of Guru Nanak Sahib. In AIPCS, out of 1600 inmates, more than 70 percent belong to non-Sikh community.

70


Figure 1 shows an average ranking of each statement given by the 304 respondents. Rank 1 represents the most important statement and rank 8 represents the least important. Donors perceived that the most important reason for choosing the AIPCS for their donation was its good reputation due to its selfless service to humanity. This statement scored 2.26 average ranking. The statement „it follows the teaching of Guru Nanak Sahib that all human beings are the creation of Almighty‟ got an average ranking of 2.73 and stood at the second place. This signifies that donors believe in the cause. The third reason perceived by the donors for choosing AIPCS for the donation was found to be „it is set up for public good‟. This statement scored an average ranking of 2.92. The statement which was found to be the least important for donors was „AIPCS is nearest to your place‟. It got an average ranking of 7.08.


FIGURE 1: AVERAGE RANKING OF REASONS FOR CHOOSING AIPCS FOR A DONATION

71

The figure 2 demonstrates the percentage of donors who have given a specified rank to all the eight statements. It has been found that 39 percent of donors have given first rank to the 8th statement i.e. AIPCS follows the teaching of Guru Nanak Sahib that all human beings are the creation of Almighty. It indicates that 39 percent of donors believe in the cause. 34 percent of donors have given the first rank to 3rd statement. It implies that they have been showing trust and confidence in giving the donation to AIPCS because of its selfless service to the humanity. The 17 percent of donors claim that they have been showing the trust because it is set up for the public good.


Source: Survey of AIPCS donors 2010, N = 304.


FIGURE 2: PERCENTAGE OF DONORS WHO HAVE GIVEN A SPECIFIED RANK

72

The T and one-way ANOVA test have been applied to check whether there is any difference in the perceptions of various demographic categories of the donors for choosing AIPCS for the donation. Table II shows the results of T and ANOVA test along with the average ranking given by the donors to all the reasons. The cells in yellow colour indicate the first reason for showing trust in choosing AIPCS for the donation. The cells in green and pink colour indicate second and third reason respectively. The row labelled t-value exhibits, whether there is any difference in the opinion of male and female donors. It has been found that there is a significant difference in the average ranking given by both the categories of donors in respect of the statements 1, 2, 4, 7 and 8. However, equal importance has been given by both the categories of donors to the most important reason i.e. „AIPCS is undertaking selfless service to the humanity‟. It indicates that a charity having a good reputation in the public attracts donors irrespective of the gender. One-way ANOVA test has been applied on the four demographic variables. It has been found that there is no significant difference in the average ranking given by the various donors‟ categories of




income and occupation with respect to the first reason i.e. „AIPCS is undertaking selfless service to the humanity‟. However, significant age and education effect have been found in the average raking given by donors to the statement 3. The second important reason found is that „It follows the teaching of Guru Nanak Sahib that all human beings are the creation of Almighty‟. With respect to this reason, age group, levels of income and education have shown an insignificant effect on the perception of donors. In other words, it can be said that there is no difference found in the average ranking of donors irrespective of their age group, income and education level. However, occupational background of donors is found to be significant. With respect to the third important reason i.e. 'AIPCS is set up for the public good', only education level of donors has shown the significant effect on their perception. TABLE II: AVERAGE RANKING OF EACH CATEGORY OF DEMOGRAPHICS

St. 1 St. 2

St. 3

St. 4

St. 5

St. 6

St. 7

St. 8

Male

3.06

3.88

2.29

7.21

5.6 6

6.09

5.14

2.54

Female

2.65

4.52

2.21

6.83

5.5 9

6.15

4.73

3.10

Total

2.92

4.11

2.26

7.08

5.6 4

6.11

5.00

2.73

t – Value

2.425 **

2.83 4*

0.458

2.257 **

0.4 41

0.35 9

1.924 ***

2.449 **

20 years or less

3.43

4.00

2.71

7.57

5.5 7

5.86

3.57

3.29

21 - 30 years

2.94

4.61

1.95

7.19

5.4 1

6.29

4.58

2.69

31 - 40 years

2.70

4.10

2.26

7.02

5.7 8

6.00

5.06

2.82

41 - 50 years

3.13

4.20

2.50

6.87

5.8 9

5.65

5.19

2.54

51 years or above

2.86

3.56

2.40

7.08

5.6

6.26

5.38

2.80

Gender

Age


Category

73

Demograp hics

Reasons of showing the trust in choosing AIPCS for the donation


6

Monthly Income

Total

2.92

4.11

2.26

7.08

5.6 4

6.11

5.00

2.73

F – Value

0.868

3.97 0*

2.078 ***

0.666

1.2 95

1.89 2

3.934 *

0.368

Rs. 15,000 or less

2.76

4.38

2.17

7.14

5.5 1

6.10

4.99

2.86

Rs. 15,001 - Rs. 30,000

2.88

4.12

2.22

7.05

5.6 5

6.15

5.11

2.69

Rs. 30,001 - Rs. 45,000

3.13

3.80

1.93

7.67

5.9 3

6.20

5.13

2.20

More than Rs. 45000

3.50

4.14

2.50

6.57

5.6 4

6.21

4.50

1.86

Total

2.92

4.11

2.26

7.08

5.6 4

6.11

5.00

2.73

F – Value

1.257

1.59 1

1.066

1.190

0.5 62

0.12 6

0.447

1.353

3.22

4.22

2.22

7.11

5.5 0

5.72

4.56

2.33

2.77

3.77

2.57

7.19

5.5 6

6.01

5.54

2.60

College level

3.20

3.77

2.18

7.13

5.7 5

6.24

4.99

2.68

University level

2.76

4.64

2.07

6.94

5.6 4

6.15

4.63

2.95

Total

2.92

4.11

2.26

7.08

5.6 4

6.11

5.00

2.73

F - Value

2.282 ***

4.93 9*

2.224 ***

0.539

0.3 65

0.72 4

5.024 *

0.933

3.24

4.03

2.39

7.21

5.9

5.94

5.33

1.94

Higher level Senior Secondary

74

Occupation Businessperson


Education


1 Professional

3.30

4.50

2.00

7.65

5.7 0

6.15

4.45

2.25

Govt. and Pvt. Employees

2.89

4.01

2.32

6.91

5.6 6

6.07

5.05

2.86

Student

2.64

4.55

2.00

7.26

5.4 7

6.34

4.55

2.95

Others

2.96

3.74

2.41

7.04

5.5 7

6.04

5.39

2.85

Total

2.92

4.11

2.26

7.08

5.6 4

6.11

5.00

2.73

F - Value

1.381

1.58 0

0.964

1.659

0.6 04

0.48 4

2.362 ***

2.215 ***


Rank 1

Rank 2

Rank 3

*Significant at 1%, ** Significant at 5%, *** Significant at 10%. AIPCS PERFORMANCE AND DONORS’ TRUST IN GIVING DONATION: AN EVALUATION As stated earlier, four parameters have been taken from the study conducted by Opinion Leader Research and Ipsos MORI on the behalf of Charity Commission (U.K.) for assessing the performance of AIPCS. These parameters are listed below: 1. AIPCS spends wisely and effectively.

4. Fund collectors are ethical and honest. The respondents were asked to give the score from 0 - 10 to the above stated parameters. The „0‟ represents very poor performance and the „10‟ represents excellent performance. The figure 3 shows mean scores of all the four parameters perceived by the donors. The parameter „AIPCS is well managed‟ got the highest average score of 7.82 and the parameter „Fund collectors are ethical and honest‟ got the lowest mean score of 6.50. It indicates that the donors' trust in fund

75

3. AIPCS ensures reasonable proportion of donation gets to end cause.


2. AIPCS is well managed.


collectors is not much strong. AIPCS should take steps to build more donors' trust about the honesty of fund collectors by bringing more transparency in the funds collection. FIGURE 3: AVERAGE SCORE OF PARAMETERS OF AIPCS PERFORMANCE

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The figure 4 demonstrates the overall trust and confidence of the donors in giving the donation to AIPCS. The donors were asked to rate their trust and confidence in giving the donation to AIPCS. The rating „3‟ indicates an extremely high degree of trust-and-confidence and the rating „0‟ indicates a little degree of trust and confidence in giving the donation to AIPCS. It is clearly observable from the same figure that the 42 percent of total donors selected for the analysis are having a high degree of trust and confidence in giving the donation. The 37 percent of the donors have an extremely high degree of trust and confidence in giving the donation. A very little percentage, i.e. 3 per cent of the total donors, is having a little degree of trust and confidence in giving the donation. This may be considered as a limitation of the study. However, it may happen when one studies the perception of existing donors of an organisation. An option of „no trust and confidence‟ has not been included because a donor donates only when one trusts a particular organization. However, trust may vary from a little degree to an extremely high degree. This study is a case study of the one big multitasking non-profit organization of the north




India. It focuses on why AIPCS has a big donor base in the north India. On what basis, the donors of AIPCS show trust and confidence in giving the donation to it. FIGURE 4: EXTENT OF DONORS’ TRUST AND CONFIDENCE IN GIVING DONATION

Donors‟ trust in giving donation = f (parameters of assessing charitable performance, donors awareness about AIPCS history and demographic variables) Table III shows the description of variables considered for regression analysis.

77

Now the question arises which parameter is more important in driving the donors‟ trust? A model has been framed for examining the parameters which drive the donor's trust. This model asserts that the donor's trust is a function of wise and effective spending, well managed, assurance of reasonable proportion of donation gets to end cause, assurance of ethical and honest fund collectors, donor's awareness about AIPCS history, age of donors, educational qualification of donors, gender of donors, income level of donors and occupational background of donors.




TABLE III: DESCRIPTION OF VARIABLES Variable Identity

Variable Description

Donors‟ trust and confidence

Ordinal variable (0 = lower degree, 1 = Moderate degree 2= High degree and 3 = Extremely high degree)

Parameters of assessing charitable

Rating scale variable on a scale of 0 - 10

performance

(10 = Excellent performance and 0 = very poor performance)

Awareness about AIPCS history

A dummy variable (1 = aware of history and 0 = not aware of history)

Demographic variables

Dummy variables as noted in Table I

78

The table IV reveals the results of Ordered Logistic regression. The maximum log likelihood of a fitted model is found to be -259.102 at sixth iteration. The fifth column (labelled P > |z|) of the table shows p values of the given variables. Out of the four selected parameters of assessing charitable performance, all except „reasonable proportion of donation gets to end cause‟ have found to be statistically significant at one percent level. It has been found from the analysis that among all the demographic variables, some categories of age group, level of personal monthly income and occupational background of the donors affect significantly their trust and confidence in giving the donation. In respect of the age of donors, the donors having age group of 21 – 30 years, 31 – 40 years and above 50 years are found to be having the negative significant effect. The two categories of the occupational background viz. businessperson and professional have also shown the negative significant effect. Out of all the demographic variables‟ categories, only the donors, whose monthly income varies between Rs. 15,001 and Rs. 30,000, have shown the positive significant effect. The donors, who are aware of journey about establishment of AIPCS, have also shown the positive significant effect. In order to know which variable has the greater impact on trust and confidence of the donors, the exp. (b) and %X have been computed. The column sixth and seventh of the table IV show exp. (b) and %X. The exp. (b) and %X denote factor and percent change in the odds for a unit change in the X. Among the significant parameters of assessing the charitable performance, the AIPCS spends wisely and effectively is found to have greater impact on the trust and confidence of the donors. For a unit increase in the average score of „AIPCS spends wisely and effectively‟ perceived by donors, the odds of having


The effect of AIPCS performance on the trust and confidence of donors in giving the donation was estimated through Ordered Logistic regression.


extremely high degree of trust and confidence increase by the factor of 1.44, holding all other variables constant. TABLE IV: RESULTS OF ORDERED LOGISTIC REGRESSION Number of obs

Ordered Logistic Regression

=

304

=

185. 14

=

0.00 00

=

0.26 32

LR chi2(20) Prob > chi2 Log Likelihood = -259.102 (At 6th iteration)

Pseudo R2

Donors’ trust and confidence in giving donation

Coef. Std. (b) Error

Spends wisely and effectively *

0.37

0.08

4.46 0.00 1.44 44.10 2.18

2.22 122.00

Well managed *

0.26

0.09

2.97 0.00 1.29 29.00 2.04

1.68

68.30

Reasonable proportion of donation gets to end cause

0.06

0.07

0.88 0.38 1.06 6.30 2.51

1.17

16.60

Fund collectors are ethical and honest *

0.24

0.06

3.89 0.00 1.27 26.50 2.61

1.84

84.40

1.34

0.43

3.11 0.00 3.83

283.3 0.32 0

1.53

52.80

21 – 30 years **

-2.07

0.97

-2.14 0.03 0.13

0.47 87.40

0.38

-61.90

31 – 40 years ***

-1.98

1.02

-1.93 0.05 0.14

0.37 86.20

0.48

-52.00

41 – 50 years

-1.50

1.02

-1.47 0.14 0.22

0.38 77.70

0.56

-43.70

51 years and above ***

-1.82

1.01

-1.80 0.07 0.16

0.47 83.80

0.43

-57.30

0.01

0.35

0.03 0.98 1.01 0.90 0.45

1.00

0.40

z

P> SDof e^bStd %Std e^b % X |z| X X X

Awareness about AIPCS history (ref.: not aware of) Aware of history *

Senior secondary

79

Education level (ref.: higher)


Age group (reference: 20 years or less)


College level

-0.02

0.37

-0.05 0.96 0.98 -1.90 0.48

0.99

-0.90

University level

-0.63

0.58

-1.08 0.28 0.53

0.24 46.60

0.86

-13.80

-0.21

0.29

-0.71 0.48 0.82

0.48 18.50

0.91

-9.30

Rs.15,001 – Rs.30,000 ***

0.54

0.32

1.68 0.09 1.71 71.20 0.48

1.30

29.50

Rs.30,001 – Rs.45,000

0.06

0.61

0.09 0.93 1.06 5.60 0.22

1.01

1.20

More than Rs.45,000

0.25

0.63

0.39 0.69 1.28 28.00 0.21

1.05

5.30

Businessperson **

-1.39

0.55

-2.54 0.01 0.25

0.31 75.10

0.65

-35.20

Professional **

-1.49

0.64

-2.35 0.02 0.23

0.25 77.50

0.69

-31.00

Govt. and Pvt. Employees

-0.73

0.45

-1.60 0.11 0.48

0.50 51.60

0.70

-30.40

Student

-0.56

0.58

-0.96 0.34 0.57

0.39 42.70

0.80

-19.70

Gender (reference: female) Male Personal monthly income level (Rs.15,000 or less)

Occupational background (ref.: others)

z = z-score for test of b=0

SDofX = standard deviation of X

P>|z| = p-value for z-test

%X = percent change in odds for unit increase in X

e^b = exp(b) = factor change in odds for unit increase in X

%StdX = percent change in odds for SD increase in X

e^bStdX = exp(b*SD of X) = change in odds for SD increase in X Similarly, a unit increase in the average score of parameters „AIPCS is well managed‟ and „Fund collectors are ethical and honest‟, the odds of having extremely high degree of trust and confidence increase by the factor of 1.29 and 1.26 respectively, holding all other variables constant. It indicates that good performance definitely builds trust and confidence in the minds of donors. The donors perceive that they trust AIPCS primarily because of its wise spending behaviour. However, among all the variables, the variable denoting awareness about journey of


*Significant at 1%, **Significant at 5%, ***Significant at 10%

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Source: Survey of AIPCS donors 2010, N = 304


establishment of AIPCS has been found to have the greater impact on trust and confidence of donors. The odds of having extremely high degree of trust and confidence in giving the donation are 283.30 percent larger for the donors who are aware of about the journey of establishment than who are not aware of, holding all other variables constant. On the other hand, among all the significant variables, a large amount of deviation has been found in the odds of having extremely high degree of trust and confidence is due to the variable „AIPCS spends wisely and effectively‟. For a standard deviation increase in the variable „AIPCS spends wisely and effectively‟, the odds of having extremely high degree of trust and confidence compare to the low degree of the same increase by the factor of 2.22, holding all the other variables constant. TABLE V: MEASURES OF FIT FOR ORDINAL LOGIT REGRESSION OF DONORS' TRUST AND CONFIDENCE IN GIVING DONATION

518.204

Log-Lik Full Model: LR chi2 (20): Prob > LR:

-259.102 185.139 0.00

McFadden's R2:

0.263

McFadden's Adj R2:

0.198

ML (Cox-Snell) R2:

0.456

Cragg-Uhler(Nagelkerke) R2:

0.506

McKelvey & Zavoina's R2:

0.525

Variance of y*:

6.926

Variance of error:

Count R2:

0.632

Adj Count R2:

AIC:

1.856

AIC*n:

564.204

BIC:

-1088.28

BIC':

-70.799

AIC used by Stata:

564.204

BIC used by Stata:

649.696

3.29 0.349

The table V demonstrates a list of goodness-of-fit measures. D (281) indicates that this model estimates twenty three parameters (twenty regressors and three cut points): 281 = 304-23. However, cut points have been omitted from Table IV. Stata software estimates τm, /cut1, /cut2, and /cut3, assuming β0 = 0 (Long and Freese 2003: 148-149). Accordingly, the output Table IV does not report the intercept. As per Table V, Likelihood Ratio (LR) chi2 (20) of a fitted model is found to be 185.14 which is significant at one percent. In Ordered Logistic Regression, it is difficult to find out overall variance explained by the model. Using simulations, both Hagle and Mitchell (1992) and Windmeijer (1995) found that, for ordinal outcomes, McKelvey and


D(281):

-351.672

81

Log-Lik Intercept Only:


Zavonia‟s R2 most closely approximates the R2 obtained by estimating the linear regression model on the underlying latent variable (Long and Freese 2003: 148). It can be said that this model has explained approximately 52.50 percent variance as McKelvey and Zavonia‟s R2 is found to be 0.525.

chi2 (1)

Prob > chi2

βSpends wisely and effectively = 0

19.91

0.00

βWell managed = 0

8.81

0.00

βFund collectors are ethical and honest = 0

15.09

0.00

βAware of about journey of establishment = 0

9.69

0.00

βAge: 21-30 years = 0

4.56

0.03

βAge: 31-40 years = 0

3.73

0.05

βAge: 51 years and above = 0

3.25

0.07

βIncome: Rs.15001 – Rs.30000 = 0

2.81

0.09

βBusinessperson = 0

6.47

0.01

βProfessional = 0

5.52

0.02

The table VI depicts Wald test for the individual significant coefficients. The variable „AIPCS spends wisely and effectively‟ is found to have the greater significant effect on the donors‟ trust and confidence followed by the variable „Fund collectors are ethical and honest‟. These findings support the hypothesis 1, 2 and 4. However, it does not support the third hypothesis. BENEFITS OF BEING A PART OF AIPCS In this materialistic world, no one wants to sacrifice the money and time without any consideration. To what extent a donor derives benefit from the services of a charitable organization is one of the motivational factors for giving the further support to it. When this question was asked from the AIPCS donors, 79 percent of them said that after being a part of the AIPCS, they got inspiration to serve the humanity. The 49 percent of the donors said they got awareness about the environment protection and social evils. The 38 percent of the donors felt that their life has become meaningful and purposeful. The 34 percent of the donors found

82

Null Hypothesis (H0)


TABLE VI: WALD TEST OF INDIVIDUAL SIGNIFICANT COEFFICIENTS


themselves to be spiritually advanced by reading the AIPCS literature. The 7 percent of the donors said that they have visited the museum and library. The figure 5 demonstrates the above findings. FIGURE 5: EXTENT OF BENEFIT DERIVED BY DONORS FROM AIPCS SERVICES


83

In the previous section, evidence was presented from the survey data on the importance of charitable performance in building trust and confidence among donors in the absence of any accreditation and accountability rating system in the country. But, what are the implications for a non-profit sector in other countries of this evidence? Why would it be important to know for practitioners in this sector that primarily donor‟s trust is related to the charitable performance and not to the accreditation? However, accreditation may increase the trust and confidence among donors. In countries, where the corruption is at the highest, good ratings can be obtained by using the political links. At the same time, when donors will be benefited from the organization's services as stated in the previous section, no question will be raised on it. The findings of this study partly confirm the findings of the study conducted by opinion leader research and Ipsos


IMPLICATIONS FOR THE NON-PROFIT SECTOR


MORI in England and Wales, regarding the reasons asked for showing trust and confidence in the specified charity. This study confirms that the donors show trust primarily because of the good reputation gained from its selfless service to the humanity. The second important reason perceived by the donors is that they believe in the cause. Thirdly, the donors show trust after considering that the specified charity (AIPCS) is set up for the public good. In England and Wales, the studies conducted by opinion leader research and Ipsos MORI on the behalf of charity commission (U.K) about the issue of public trust and confidence in charities, have shown the findings presented in the Table No. VII. TABLE VII: REASONS FOR SHOWING TRUST IN SPECIFIED CHARITY.

2008

2010

Opinion leader research on behalf of Charity Commission

Ipsos MORI on behalf of Charity Commission


Reasons for showing trust (Rank wise) Ran k1

They have a good reputation

Ran k2

I have seen/experienced what they do

Ran k3

I believe in the cause

Ran k1


Ran k2


Ran k3


Ran k1


Ran k2


Ran k3


Source: Reports published by Charity Commission (U.K.) in 2005, 2008 and 2010. It is observable from the Table VII that the donors of England and Wales confirmed the two reasons namely „good reputation‟ and „believe in the cause‟. However, they have not confirmed the third reason. According to the study conducted in 2008 and 2010, donors have shown trust in the specified charity primarily because they have seen what charitable organizations do. Nevertheless, in the present study, the AIPCS donors have not given much importance to it. As per figure1, they have given the 5th rank to it.


2005

Study conducted by

84

Year in which study was conducted


In respect of the parameters of charitable performance, the findings of this study show variance in mean scores as compared to the findings of studies conducted by opinion leader research and Ipsos MORI. Table VIII shows the findings of the studies conducted in England and Wales. TABLE VIII: MEAN SCORES OF PERFORMANCE PARAMETERS. Year of conducting the study

2005

2008

2010

Study conducted by

Opinion leader research on behalf of Charity Commission



Mean score

Performance parameter

6.5

Ensures fund collectors are ethical and honest

6.3

Spend wisely and effectively

6.2

Well managed

5.9

Ensure reasonable proportion of donation gets to end cause

6.7


6.3


6.3

Well managed

6.0


6.8


6.7


6.6

Well managed

6.2


85

All the three studies produce the same results. Some small variations have been found in the mean scores but these are not significant. However, in the present study, the parameter „AIPCS is well managed‟ got the highest mean score of 7.82. The parameter „AIPCS spends wisely and effectively‟ stood at the second place with a score of 7.58. The parameter „AIPCS ensures reasonable proportion of donation gets to end cause‟ took the third place having a score of 7.36. The lowest mean score (6.50) has been given to the parameter „AIPCS ensures fund collectors are ethical and honest‟. The donors have given the lowest score to this parameter because of having doubt in respect of the donation collected through boxes at public places. Moreover, no charitable receipt has been issued in respect of the donations collected through boxes. However,


Source: Reports published by Charity Commission (U.K.) in 2005, 2008 and 2010.


in respect of other modes of collecting donations, proper receipt is issued to the donors. In both the countries viz. India and United Kingdom, the parameter „spends wisely and effectively‟ has been found the most significant driver of donors‟ trust. CONCLUSION This study revealed the basis of donors‟ trust in the charitable organizations, specifically in the absence of any accreditation and accountability rating system. The four parameters were used for assessing the performance of AIPCS viz. AIPCS is well managed, spends wisely and effectively, ensures reasonable proportion of donation gets to end cause and ensures funds collectors are ethical and honest. All except „reasonable proportion of the donation gets to the end cause‟ have found to be statistically significant in building the trust and confidence among donors. The parameter „AIPCS spends wisely and effectively‟ is the most important driver of the donors‟ trust and confidence. However, the parameter „AIPCS is well managed‟ got the highest mean score. This study further reveals that donors show trust in giving the donation to AIPCS primarily because of the good reputation gained from its selfless service to the humanity. The most important motivational factor found out by this study, which motivates the donors to continue their financial support is that, after being a part of AIPCS, the donors got inspiration to serve the humanity. It has also been found that donors want more transparency in the fund collection specifically in the door to door collection and the ones who collect donations in the boxes at public places. That is why, they have given the lowest score to this parameter. AIPCS should take steps to bring more transparency in the above method of fund collection. REFERENCES American Institute of Philanthropy. (2011). Welcome. Retrieved January 9, 2011, from http://www.charitywatch.org Bennett, J. T., and DiLorenzo, T. J. (1994). Unhealthy charities: Hazardous to your health and wealth, Basic Books, New York.

Brody, E. (2002). Accountability and public trust. In L. S. Salamon (Ed.), The state of nonprofit America (pp. 471-498), Brookings Institution Press, Washington, DC. Opinion Leader Research. (2005). Report of findings of a survey of public trust and confidence in charities, Charity Commission, U.K.

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Bies, A. L. (2001). Accountability, organizational capacity, and continuous improvement: Findings from Minnesota‟s nonprofit sector. In P. Barber (Ed.), Accountability: A challenge for charities and fundraisers (Vol. 31, pp. 7-22), Jossey-Bass, San Francisco.


Bekkers, R. (2003). Trust, Accreditation, and Philanthropy in the Netherlands. Nonprofit and Voluntary Sector Quarterly, 32, 596-615.


Charity Navigator. (2011). Find a charity you can trust. Retrieved January 9, 2011, from http://www.charitynavigator.org Edwards, M., and Hulme, D. (Eds.). (1996). Beyond the magic bullet: NGO performance and Accountability in the post-cold war world, Kumarian Press, West Hartford, CT. Gronbjerg, K. A. (1993). Understanding nonprofit funding: Managing revenues in social services and community development organizations, Jossey-Bass, San Francisco. Handy et al., (2010). The Discerning Consumer: Is Nonprofit Status a Factor?. Nonprofit and Voluntary Sector Quarterly, 39, 866-883. Ipsos MORI. (2008). Report of findings of a survey of public trust and confidence in charities, Charity Commission, U.K. Ipsos MORI. (2010). Report of findings of a survey of public trust and confidence in charities, Charity Commission, U.K. Kanter, R. M., and Summers, D. V. (1987). Doing well while doing good: Dilemmas of performance measurement in nonprofit organizations and the need for a multiple-constituency approach. In W. Powell (ed.), The nonprofit sector: A research handbook (pp. 154-166), Yale University Press, New Haven, CT. Long, J. S., and Freese, J. (2003). Regression models for categorical dependent variables using stata, Stata Press, 2nd ed. college station, Texas. Ministry Watch. (2011). The MinistryWatch.com 5 Star Ratings System. Retrieved January 9, 2011, from http://www.ministrywatch.org/mw2.1/A_About.asp

Salamon, L. S. (1999). America‟s nonprofit sector: A primer, Foundation Center, New York. Salamon, L. S. (Ed.). (2002). The state of the nonprofit sector, Brookings Institution Press, Washington, DC. Salamon, L. S. (2003). The resilient sector: The state of nonprofit America, Brookings Institution Press, Washington, DC.

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Reinhardt, G. Y. (2009). Matching Donors and Nonprofits: The Importance of Signaling in Funding Awards. Journal of Theoretical Politics, 21(3), 283–309.


Murray, V. (2001). The state of evaluation tools and systems for nonprofit organizations. In P. Barber (ed.), Accountability: A challenge for charities and fundraisers (pp. 39-50), Jossey-Bass, San Francisco.


Sargeant, A., & Lee, S. (2004). Donor Trust and Relationship Commitment in the U.K. Charity Sector: The Impact on Behavior. Nonprofit and Voluntary Sector Quarterly, 33, 185-202. Second Administrative Reform Commission. (2008). Social capital – A shared destiny, Ninth report, Government of India. Sloan, M. F. (2009). The Effects of Nonprofit Accountability Ratings on Donor Behavior. Nonprofit and Voluntary Sector Quarterly, 38, 220-236. Tonkiss, F., & Passey, A. (1999). Trust, confidence and voluntary organizations: Between values and institutions. Sociology, 33(2), 257-274. Weisbrod, B. (1977). The voluntary nonprofit sector: An economic analysis, Lexington Books, Lexington, MA.

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Wise Giving Alliance. (2011). Standards for charity accountability. Retrieved January 9, 2011, from http://www.give.org/standards/newcbbbstds.asp


PHENOMENOLOGICAL DEMORALIZATION AMONGST THE SUB-CLINICAL MIZO ELDERLY C. LALFAMKIMA VARTE* *Department of Psychology, Mizoram University, Tanhril, Aizawl, Mizoram, India.

ABSTRACT The community sample of 400 Mizo participated in the study to examine the relationship between a latent variable termed demoralization and measured variables of stress, anxiety, depression and hopelessness. The participants comprised of 185 males and 215 females between 60 to 101 years of age from Aizawl, the capital city of Mizoram. The participants completed the Depression, Anxiety and Stress Survey (DASS), The Hopelessness Scale (HS), and demographic survey. The analysis revealed applicability of the dependent variables for measurement in the target population. The exploratory factor analysis suggested for the structural equation model for stress, depression, anxiety and hopelessness and one latent variable demoralization that fit the data (CMIN/Df = .940, p = .332, goodness of fit indices (GFI=.99, CFI=1.00, NFI=.99) and RMSEA = 0.00). The findings suggested that, close relationships exist among stress, depression, anxiety, hopelessness and demoralization that is stable across demographic variables. Further, the model explains the relationship between sub-clinical stress, anxiety, depression and hopelessness. The findings contribute to a theoretical framework, which has implications for educational and clinical intervention. The findings will help guide researches examining demoralization as a precursor to sub-clinical stress, anxiety, depression and hopelessness. KEYWORDS: Sub-clinical, Elderly, stress, anxiety, depression, hopelessness, demoralization. ___________________________________________________________________________

Frank (1974) coined the phenomenological term demoralization to capture the essence of an individual‟s inability to cope and the relationship between feelings of helplessness, hopelessness, meaninglessness, incompetence and low self-esteem. The persistent failure to cope with internally or externally induced stresses that the person and those close to him expect him to handle leads to demoralization. The main characteristic features include feelings of impotence, isolation, and despair. The person‟s self-esteem is damaged, and he feels rejected by others because of his failure to meet their expectations that in turn may contribute to a sense of meaninglessness of life (Frank, 1974).

89

Morale is defined as “the mental and emotional attitude of a person or group with regard to their confidence, hope, zeal and willingness, the degree of contentment with one's lot or situation” (Allen, 1990). Thus, to demoralize, “means” to deprive a person of spirit, courage, or discipline; to reduce to a state of weakness or disorder (Delbridge, 1991).


INTRODUCTION


NATURE OF DEMORALIZATION Demoralization is the state of mind that psychotherapy seeks to treat and for which many people seek psychotherapy (Frank, 1974). Thus, anxiety and depression are direct expressions of demoralization (Frank, 1968). When a person is seeking psychotherapeutic help, then he is very likely to be demoralized. Psychotherapy at its core is the art of restoring hope. Thus, demoralization is the general descriptor of psychological distress and makes it synonymous with suffering, existential distress, and Weltschmerz. Demoralization is viewed as a self-perceived incapacity to deal effectively with a stressful situation in psychiatric literature (Klein et al, 1980), a „nonspecific‟ distress (Dohrenwend, et al, 1980; Wenger, 1992), or a combination of these (de Figueiredo, 1993). Demoralization syndrome is the state in which hopelessness, helplessness, meaninglessness and existential distress form the core phenomena (Kissane, Clarke & Street, 2001). Loss of hope arise from a sense of not knowing what to do and feeling trapped, often present in the context of social isolation and alienation. Sometimes intense anxiety can lead to desperation to obtain relief, such anguish signaling an imminent risk of suicide. The cognitive state of the demoralized is negatively oriented, dominated by pessimism and includes all-or-nothing thinking, in which the world is seen in black or white terms, exaggeration, generalization and negative self-labeling that lowers self-esteem. In contrast, the affective state may still be reactive, demonstrating consummation pleasure and spontaneous humor, albeit without enthusiasm. DEMORALIZATION AND THE ELDERLY

It is not the difficult social situation in itself, but the subjective experience of relative disadvantage, the prolonged negative emotional state, that is, chronic stress seems to be the most important risk factor (Kopp et al, 2007). The individual lacks motivation or ambition and involves passivity, there being no perception of a worthwhile future. While the demoralization

90

The prevalence of demoralization occurring in the elderly has been shown to be double the rate of depression (Gurland & Toner, 1982). Factors contributing to the development of demoralization are social isolation (Kissane & Kelly, 2000), declining physical health (Coleman, 1995), disfigurement (Kissane, Street & Nitschke, 1998; Street & Kissane, 1999-2000), disability such as deafness (Coleman, 1995), dependency (Coleman, 1995; Gurland & Toner, 1982), perceived loss of dignity (Page & Cole, 1992) and concern about being burden to family (Kissane, Street & Nitschke, 1998; Street & Kissane, 1999-2000). Studies of the terminally ill have highlighted its relevance in those desiring death (Chochinov, et al, 1998; Chochinov, et al, 1999).


Demoralization has been shown to be associated with being elderly (Gurland & Toner, 1982), disabled (Tweed, Shem & Ciarlo, 1988), disfigured (Street & Kissane, 2001), dependent (Coleman, 1995), socially isolated (Fenig & Levav, 1991), or alienated (Bilanakis, Madianos & Liakos, 1995), concerned about being a burden (Street & Kissane, 1999-2000), fearing a loss of dignity or control (Street & Kissane, 2001), and desiring death or becoming actively suicidal (Breitbart, Rosenfeld & Passik, 1996). Clarke and Kissane (1963) maintained that, while demoralization may exist co-morbidly with depression, it can occur independently of depression.


syndrome may be a harbinger of depression, indeed, many cases actively progress into a fullblown major depression, others do grumble along more insidiously, but cause considerable distress. It is the latter that particularly challenge clinicians today (Kissane, 2001). DEMORALIZATION IN RELATION TO STRESS, ANXIETY AND DEPRESSION The theory of relative deprivation hypothesizes maintain that chronic stress can arise out of situations in which there is rapid improvement in living standards for some but not for others. Relative deprivation may be deleterious to both psychological and physical health, mediated by stress-related coping responses (e.g., more smoking, heavier drinking) as well as invidious social comparisons. Status syndrome is the name given to this phenomenon, which is especially important among the sudden hierarchy disruptions in changing societies (Marmot, 2004). Conversely, social cohesion and meaning in life may help to counterbalance the widening gap in material circumstances (Skrabski, et al, 2003; Skrabski, et al, 2004; Skrabski, et al, 2005). Rickelson (2002) suggest that demoralization may be a precursor to anxiety, substance abuse, depression and suicide. Unfortunately, few studies have examined the construct of demoralization in sub-clinical populations. In addition, literature examining demoralization is sparse and definitive criteria unclear (Rickelson, 2002). In terms of the present study model, demoralization is a defined latent variable common in stress, anxiety, depression and hopelessness, measured in a normal population of adolescents. The model represents important groundwork from which a prospective examination of vulnerabilities to the later development of clinical anxiety, depression and related disorders can be drawn.

Theoretically, de Figueiredo (1993) has described the features that distinguish depression and demoralization; the former characterized particularly by anhedonia – the diminished ability to experience pleasure (Snaith, 1987) – the latter by a feeling of subjective incompetence and helplessness. A depressed person has lost the ability to experience pleasure generally, whereas a demoralized person, while being unable to look forward with pleasant anticipation, may laugh

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Depression or dysphoric states in general, are familiar responses to stressful situations and commonly observed in people suffering physical or mental illness. It occurs in the context of a severe threat that causes marked anxiety, in which the person does not know the solution. This brings feelings of helplessness, which if not assisted can lead to hopelessness and the feeling of being „unable to cope‟. Alternatively, there may be a perception of loss of direction, role or sense of purpose, leading to feelings of pointlessness. These lower a person‟s self-esteem and, when coupled with social isolation or a feeling of „uniqueness‟ (that no-one else shares the experience), leads to a sense of alienation, existential distress and severe demoralization.


According to the DSM-IV, major depression is defined by persistent low mood, or anhedonia (pervasive loss of interest or pleasure), that lasts for 2 weeks or more and is accompanied by at least 4 of the 9 following symptoms: sleep disruption (especially early morning insomnia), weight loss or change in appetite, psychomotor retardation or agitation, fatigue or loss of energy, feelings of worthlessness or excessive guilt, diminished ability to think or concentrate, and recurrent thoughts of death or suicidal ideation (American Psychiatric Association, 2000).


and enjoy the present moment. The demoralized feel inhibited in action by not knowing what to do, feeling helpless and incompetent; the depressed have lost motivation and drive even when an appropriate direction of action is known. Evidence supports a temporal relationship between anxiety and depression in clinical, community and college settings (Brown, Campbell, et al., 2001; Cole, Peeke, Martin, Truglio & Seroczynski, 1998; Wetherell, Gatz & Pederson, 2001). Anxiety disorders appear to precede the onset of depression by approximately two years. This temporal relationship suggests that anxiety disorders predispose adolescents to development of depression (Regier, Rae, Narrow, Kaelber & Schatzberg, 1998; Goodwin, 2002; Wittchen, et al, 2003; Ferninand, Nijs, van Lier, Verhulst, 2005). Perhaps these two disorders share similar etiologic origins including several overlapping mechanisms (Mineka, Pury & Luten, 1995; Marien & Bell, 2004). DEMORALIZATION AND HOPELESSNESS On the other hand, depression, pessimism and hopelessness – the very antitheses of hope – are often associated with negative distortions of reality (Beck, 1976). An optimistic disposition is good for health and wellbeing (Seligman, 2000). Conversely, hopelessness and helplessness are associated with poor health. While hopelessness is often correlated with depressed mood, it is a stronger correlate of suicidal intent even after controlling for depression, and it predicts risk for reattempt and completion of suicide beyond psychopathological characteristics (Hawton & Goldacre, 1982; Kerfoot, et al, 1996; Beck, et al, 1974; Beck, et al, 1985). Hopelessness is a critical domain to target in treatment, not only because of its strong relationship to suicidal risk, but also because hopeless patients are more likely to drop out of treatment (Brent, et al. 1998). Therefore, the restoration of hope is a critical first step to the development of a treatment alliance and further intervention.

SAMPLE: Four hundred participants from the community of Aizawl, the capital city of Mizoram participated in the study. The age of the male (n=185) and female (n=215) participants ranges between 60 to 101 years. The participants comprised of being under matriculation to postgraduation. Some of the participants are living alone while others are having up to 12 other family members with the mean family size of 6.35. The participants indicated moderate level of participation in the society and religious functions. There are participants having no sibling while others are having maximum of 14 siblings with the mean number of sibling to be 6.42 and the mean birth order of 3.51.

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METHODS


In view of the foregoing, demoralization is a defined latent variable common in stress, anxiety, depression and hopelessness, measured in a normal population of the elderly. The design of the present study provides groundwork from which a prospective examination of vulnerabilities to the later development of clinical anxiety, depression and related disorders can be drawn.


INSTRUMENTS: The test materials consisted of two self-rating questionnaires and background demographic sheet incorporating age, gender, educational qualification, family size, religious participation, societal participation, number of sibling and birth order. DEPRESSION, ANXIETY AND STRESS SCALE (DASS; LOVIBOND & LOVIBOND, 1995): The DASS is a set of three self-report scales designed to measure the negative emotional states of depression, anxiety and stress. Each of the three DASS scales contains 14 items and subjects are asked to use 4-point severity/frequency scales from 0 to 3) to rate the extent to which they have experienced each state over the past week. Scores for Depression, Anxiety and Stress are calculated by summing the scores for the relevant items. THE HOPELESSNESS SCALE (HS; BECK, WEISSMAN, LESTER & TREXLER, 1974): The Hopelessness Scale (HS) is a 20-item self-report inventory designed to measure three major aspects of hopelessness: affective, motivational, and cognitive factors. There are 11 „true‟ items and 9 „false‟ items. For every statement, each response is assigned a score of 0 or 1, and the total "hopelessness score" was the sum of the scores on the individual items. Thus, the possible range of scores was from 0 to 20. PROCEDURE: Each participant received booklet containing the demographic sheet and the two self-rating questionnaires. The participants completed their responses in the presence of the researcher. All the responses are coded and screened for statistical analyses STATISTICAL ANALYSES The study employed quantitative techniques that included descriptive statistics, such as means, standard deviations, skewness and kurtosis as well as bi-variate correlation for the measured dependent variables. The study also employed exploratory factor analysis of the demographic variables with the measured dependent variables. Structural equation modeling (SEM) is used as an analytical tool to describe the commonality between the measured variables involved in the current study: stress, anxiety, depression and hopelessness.

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The results (Table-1) revealed the mean, standard deviation, skewness and kurtosis. The scores on anxiety, depression and hopelessness were transformed by using logarithmic transformation to fit into the assumption underlying normality. Thus, all the scores on stress, anxiety, depression and hopelessness were converted to z-scores.


RESULTS


TABLE-1: MEAN AND STANDARD DEVIATION (SD) VALUES WITH THE INDICES FOR NORMALITY OF THE DEPENDENT VARIABLES Skewness Mean

Kurtosis

SD Statistic

Error

Statistic

Error

Stress

14.93

7.41

.22 (.22)

.12

-.43 (-.43)

.24

Anxiety

11.74

7.38

.55 (-.34)

.12

-.37 (-.62)

.24

Depression

11.48

8.47

.75 (-.36)

.12

-.14 (-.72)

.24

Hopelessnes s

6.98

4.18

.53 (-.26)

.12

-.17 (-.62)

.24

{Values presented in Bold-Italicized letters are the values for the z-scores of the transformed variables} The bi-variate correlation and the reliability coefficients (cronbach alphas) for the background demographic variables and measured dependent variables of stress (α = .82), anxiety (α = .82), depression (α = .89) and hopelessness (α = .78) are highlighted in table-2. The cronbach alphas suggested for their applicability for measurement in the population under study. The bi-variate correlation coefficients revealed positive relationship between age with that of religious participation and hopelessness as well as religious participation with that of societal participation and birth order; higher level of educational qualification for the males as compared to females and the reverse on religious participation, societal participation and anxiety; higher educational qualification indicated lower levels of religious participation, societal participation, number of sibling and depression; larger family size indicated lower levels of religious participation and birth order; larger number of sibling indicated increasing birth order and decreasing depression; and highly positive relationship between stress, anxiety, depression and hopelessness.

2

3

4

5

6

7

-.18**

-

-.07 -.01

-

.17** -.17** -.15**

-

.15** -.14** -.06 .44** -.03 -.14** .07 .05 -.08

8

9

10

11

12

-

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1 Age-1 Gender-2 -.01 Educational -.06 Qualification-3 Family Size-4 .09 Religious Participation.14** 5 Societal Participation-6 .06 Number of Sibling-7 -.01


TABLE-2: BI-VARIATE CORRELATION COEFFICIENTS OF THE DEMOGRAPHIC VARIABLES ALONG WITH THE DEPENDENT VARIABLES


Birth Order-8 .04 .00 -.08 -.12* .10* -.07 .51** Stress-9 -.02 .07 -.08 -.03 .09 -.02 -.03 -.06 .82 Anxiety-10 -.05 .11* -.04 .03 .01 -.05 -.10 -.07 .75** .82 Depression-11 -.05 .09 -.10* -.04 .06 -.06 -.11* -.04 .71** .75** .89 Hopelessness-12 .11* .06 -.04 -.06 .08 -.01 -.02 .06 .42** .42** .55** .78 * = Significant at the 0.05 level (2-tailed); ** = Significant at the 0.01 level (2-tailed). {Values presented in Bold-Italicized letters are the cronbach alphas of the dependent variables} TABLE-3: COMPONENT LOADINGS OF THE EXPLORATORY FACTOR ANALYSIS WITH OBLIQUE ROTATION OF THE DEMOGRAPHIC SURVEY WITH THE DEPENDENT VARIABLES

Anxiety

.875

Stress

.864

Hopelessness

.698

Religious Participation

.762

Societal Participation

.688

Age

.574

.531

Birth Order

.857

Number of Sibling

.843

Family Size

.839

Gender

-.680

Educational Qualification

.667

The bi-variate correlation between the background demographic variables and the measured dependent variables suggested for exploratory factor analysis (Table-3). The result (Table-3) off the exploratory factor analysis revealed five components with eigen-values over 1 explaining 69.15% of variances. The first component with eigen-values of 2.88 explaining 24.01% of variances is labeled „demoralization‟, whereas, the demographic variables are scattered over the remaining four (4) components. Therefore, only stress, anxiety, depression and hopelessness – the measured dependent variables – are included in further analysis. The structural equation model with the latent variable of „demoralization‟ and the measured dependent variables with constraint on the residual of depression and hopelessness was employed. The estimated values of the structural equation model are presented in Figure-1. The analysis revealed a non-significant CMIN/Df = .940, p = .332, satisfactory goodness of fit indices (GFI=.99, CFI=1.00, NFI=.99) and low standardized error (RMSEA = 0.00). The


.903

95

Depression


standardized solution emerging from the structural equation models, based on confirmatory factor analysis, revealed one latent variable to explain the relationship between stress, anxiety, depression and hopelessness. FIGURE-1: CONFIRMATORY STRUCTURAL EQUATION MODEL OF THE LATENT VARIABLE TERMED DEMORALIZATION AND MEASURED VARIABLES OF STRESS, ANXIETY, DEPRESSION AND HOPELESSNESS Stress .84

.89

Anxiety

Demoralization .85 Depression .48

Hopelessness

DISCUSSION

Hopelessness, loss of meaning, and existential distress are proposed as the core features of the diagnostic category of demoralization syndrome. It is associated with chronic medical

96

Hope the most basic, fundamental and integral part of life. Where there is no hope, death follows (Frankl, 1973; Kubler-Ross, 1969). Hope is closely related to meaning and purpose. Folkman and colleagues (Park & Folkman, 1997; Folkman & Greer, 2000) extended the model of coping to include „meaning based‟ coping, further emphasizing the seminal contribution of meaning in the coping process. The concept of „assumptive world‟ described by Frank and frank (1993) and others (Parkes, 1975; Parkes, 1998; Janoff-Bulman, 1989) is similar, referring to beliefs and understandings about how things work in the world. Such understanding is crucial to our ability to predict the future and sustain a sense of control and security.


It remains important to consider demographic variables as possible confounds in the relationship between the measured variables and the latent factor. Differences due to demographic variables in relation to stress, anxiety, depression and hopelessness have been documented in the literature (Lovibond & Lovibond, 1995; Cicchetti, et al, 1998, Lewinsohn, et al, 1993, Cunningham, et al, 2008). The demographic variables were excluded from the final model because of the results of the exploratory factor analysis and that their inclusion would not improve the model.


illness, disability, bodily disfigurement, fear of loss of dignity, social isolation, and--where there is a subjective sense of incompetence--feelings of greater dependency on others or the perception of being a burden. Because of the sense of impotence or helplessness, those with the syndrome predictably progress to a desire to die or to commit suicide (Kissane, Clarke & Street, 2001). Research findings revealed that the most important chronic stress factors are work insecurity and living alone. Depression and anxiety are closely connected with these chronic stress factors (Kopp, et al, 2007). This result means that from the prevention point of view it would be fundamental to care for severely depressed aged men. Anxiety disorders are among the most prevalent diagnoses and they are the most common type of mental disorder (Kashani & Orvaschel, 1988). Depression or dysphoric states in general, are familiar responses to stressful situations and commonly observed in people suffering physical or mental illness (Clarke & Kissane, 2002). The failure of Physicians to understand the nature of suffering can result in medical intervention that (though technically adequate) fails to relieve suffering and becomes a source of suffering itself (Cassell, 1982). Similarly, while treating depression or other mental illness psychiatrists may consequently increase a person‟s suffering. People suffer and become demoralized because they have lost, or feel they are losing, something critical to their sense of self. These affects points out are merely the outward expression of injury, not the injury itself (Cassell, 1982).

The findings of the present study and previous empirical researches (Cunningham, Gunn, Alladin & Cawthorpe, 2008; Barlow, 2000, 2002; Chorpita, 2002, Clarke & Kissane, 2002; Rickelson, 2002; Lewinsohn, et al., 2000, Brozina & Abela, 2006; Ferninand, et al, 2005) provide strong support for the hypothesized relationship between sub-clinical stress, anxiety,

97

The model of demoralization posits a temporal relationship between anxiety, depression and hopelessness due to stressors, and demoralization is the outcome of depression and hopelessness that has not been treated (Clarke & Kissane, 2002). The main therapeutic approach to the demoralized include exploration of attitudes to hope and meaning in life, fostering a search for renewed purpose or understanding of a new role, promotion of supportive relationships and use of volunteers, active and comprehensive symptom management, cognitive reframing of negative beliefs, continuity of care, the conduct of family meetings to enhance communication and support (Grau, Teresi & Chandler, 1993), and clear goals of care for the multidisciplinary treatment team (Kissane, Clarke & Street, 2001).


The findings revealed the health consequences of the toxic components of stress, depression, hopelessness, and anxiety. Research finding revealed that the phenomenon of demoralization can play an important role in its relationship to specific disorders (Clarke & Kissane, 2002). Frank (1974) observed both anxiety and depressive symptoms as direct expressions of demoralization. Research demonstrates that if an individual endures internal or external stressors that are perceived as severe, then anxiety levels increase (Clarke & Kissane, 2002). When anxiety levels increase, an individual may feel the situation is uncontrollable, leading to helplessness. If the feeling of helplessness is not attended to, then hopelessness and the inability to cope will develop (Clarke & Kissane, 2002).


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STRATEGIC PLANNING FOR RURAL ENGINEERING COLLEGE USING SWOT-AHP METHOD GOMATESH M. RAVANAVAR*; DR. POORNIMA M. CHARANTIMATH** *Professor & Dean, Bahubali College of Engineering, Shravanabelagola, Karnataka, India. **Professor, KLS‟ Institute of Management Education & Research, Belgaum, Karnataka, India.

ABSTRACT Strength, Weakness, Opportunities and Threats (SWOT) technique examines both internal and external factors of an organisation. The combination yields analytically determined priority factors and make them commensurable. The prioritized SWOT factors are then used to formulate strategic planning for an organisation. Analytic Hierarchy Process (AHP) method is applied in order to evaluate SWOT factors systematically and commensurate their intensities which has also the ability of taking these factors into consideration in a hierarchical structure. The purpose of this study is to evaluate the critical factors of the rural engineering college as perceived by its stakeholders through SWOT analysis method and to utilize them in developing effective strategies for the college. It would be crucial for policy makers to understand the relative importance of critical factors. To support their decision making process, a SWOT analysis was used in combination with AHP in this study. Ten SWOT factors and the relative weight of SWOT groups were examined through responses to questionnaire to the stake holders. The result can be utilized to prioritize factors to develop effective strategies for the college. KEYWORDS: Strategic Planning, SWOT, AHP, Rural Engineering College. ______________________________________________________________________________

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Strength, Weakness, Opportunities and Threats (SWOT) analysis method has been widely used as a tool for planning and analysing strategic actions over the past decade. This method can also be used in identifying environmental relationships and enable an institution to relate to its environment and help to develop strategies. SWOT analysis originally explained by Learned et al. (1969) as a key tool for tackling complex strategic issues by decreasing the quantity of information to enhance decision making. SWOT analysis is a commonly used instrument which scans internal strengths and internal weaknesses of a product or service industry and highlights the opportunities and threats of the external environment (Rauch, 2007). Generally SWOT is a list of statements or factors with descriptions of the present and future trend of both internal and external environment; the expressions of individual factors are general and brief which describes subjective views. Despite early advantages of SWOT in decision making, the use of conventional


1. INTRODUCTION


SWOT analysis has no means of determining the importance of each SWOT factor (Shinno et al. 2006). It is difficult to assess the most influencing factor in the strategic decision. Further, numerous criteria and interdependencies often complicate the decision process. Thus, utilization of SWOT alone in decision making process is insufficient. In this study, Analytic Hierarchy Process (AHP) and its Eigen-value calculation framework is combined with SWOT analysis. Some of the researchers argue that SWOT analysis method is oversimplified. However, proponents of the simplicity of the method have stated that the institutions can use the method efficiently and evaluate the issues based on consumer‟s perception (Baker, 2000). Multi-criteria decision making (MCDM) method is an approach to produce a compromise solution. It is a compromise in that the decision maker has traded-off the weights of the alternatives according to the decision maker‟s understanding of the issue atmosphere, experience, and even biases. These are handled by the AHP via the answers to the pair-wise comparison questions. There is a large literature dedicated to the use of AHP, which is one of the best methods has been widely used since 32 years ago to tackle a wide range of multi-criteria decision issues (Bodin & Gass, 2003). In the next section the AHP will be discussed in detail. 1.1 THE FUNDAMENTAL CONCEPT OF THE AHP

One of the main advantages of this method is the ease of use in which it deals with multiple criteria. In spite this method is easier to understand it can effectively capture both qualitative and quantitative data. Literature also demonstrates that AHP is the best method used to evaluate the system by selecting the best one amongst the complex criteria structure at various level. This method is used for ranking decision alternatives and choosing the best alternatives that meets his/her requirements criteria (Taylor, 2004) by evolving a numerical score to position each decision alternatives according on how well fit each alternative. Shahrabi, et al. (2007) stated

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The AHP assists the decision maker to handle the critical aspects of an issue into a hierarchical structure similar to a family tree. This method is not only assists the decision makers to find out the best decision, but also presents a clear justification for the choices made. AHP is applied to find out the weights of the criteria and determine the final solution weights of the choice with respect to the criteria. The main purpose of employing an AHP is to recognize the best alternative through ranking them by considering all the decision criteria at the same time (Saaty, 1980).


AHP is a MCDM method that utilises hierarchical formation to show a problem and then develop priorities for alternatives based on the decision of the user (Saaty, 1980). AHP has been developed by Thomas Saaty in 1970 to assist decision makers to solve unstructured problems in social, economic, military analysis and management science (Coyle, 2004). This method is an appropriate method for complex decision that involves the comparison of decision tools that are difficult to quantify. Also can be expressed as a MCDM method to derive ratio scales from paired-wise comparisons. Saaty fundamentally introduced 27 numerical comparison scales for comparing two items when he was developing the AHP prior the decision to utilise 1-9 scales (Saaty 1980). Eventually, Saaty deduced that 1-9 scale work perfectly in its ability to cover both qualitative and quantitative information as needed by the pair-wise comparison form of the AHP.


that the use of AHP as a substitute of another multi-criteria technique because of the following basis: 1- Decision making involve both quantitative and qualitative criteria 2. A great number of criteria can be considered 3. A flexible hierarchy can be constructed based on the problem. The main essence of the AHP method is analysing complex problems into a hierarchy with aim at the top of the hierarchy, criterions and sub criterions at middle levels of the hierarchy and decision alternatives at the bottom of the hierarchy. Elements at given hierarchy level are compared in pair-wise to calculate their relative favourite with respect to each of the elements at the next higher level. The AHP method calculates and totalises their eigenvectors until the composite last vector of weight comparisons for alternatives is achieved. The entries of last weight comparisons vector reflect the importance value of each alternative with respect to the aim stated at the top of hierarchy to make decisions. If the comparisons are not perfectly consistent, then it provides a mechanism for improving consistency (Saaty, 1980). 1.2 THE CALCULATION TECHNIQUE OF AHP The first step in the AHP procedure is the decomposition of a complex issue into a structure (hierarchy) with the aim criteria at the top of the structure. The criteria and sub-criteria allocated at levels and sub-levels of the structure and decision alternatives or comparisons at the bottom of the structure, as depicted in figure 1.

Goal or objective level

FIGURE 1 AHP STRUCTURE (HIERARCHY) OF DECISION ISSUE 1.2-1 PAIR-WISE COMPARISON Pair-wise comparison can be explained as the procedure of comparing units in pairs to find out which one is selected. In other words, for each unit or entity of the hierarchy the entire entities which are associated in the low hierarchy are compared in pair-wise. We can observe from Table

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Comparisons or alternatives level


Criteria or attributes level


1 that the number of comparisons or alternatives is a function of the number of entities or elements. TABLE 1 PAIR-WISE COMPARISON No. of elements

1

2

3

4

5

6

7

No. of comparisons

0

1

3

6

10

15

21

n

The main aim of calculation technique is to make a reciprocal matrix comparison expressing the relative values of a set of attributes. The comparisons are used to structure a matrix of pair-wise comparisons called the judgement matrix or square matrix A. For instance, let consider n elements to be compared C1 … Cn and denote the relative „weight‟ (or priority or significance) of Ci with respect to Cj by aij and form a square matrix A= [aij] of order n with the constraints that aij = 1/aji, for i ≠ j, and aii = 1, for all i. Such a matrix is said to be a reciprocal matrix. To find out the relative selection for n elements of the hierarchy matrix, the Saaty‟s fundamental scale of value from 1-9 is used to consider the intensity priority between two elements and using the verbal scale associated with the 1–9 scale as shown in Table 2. TABLE 2 SAATY’S SCALES FOR PAIR-WISE COMPARISON (SAATY, 2008)

1

Equal importance

2

Slight or Weak

3

Moderately important with one over another

4

Moderately plus

5

Strongly important

6

Strongly plus

7

Very strongly important

8

Too strong

9

Extremely important

The weights are consistent if they are transitive, that is aik = aijajk for all i, j, and k. Such a matrix might exist if the aij are calculated from exactly measured data. Then find a vector ω of order n such that Aω = λω. For such a matrix, ω is said to be an eigenvector (of order n) and λ is an eigen-value.


Priorities represented in linguistic variables

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Saaty’s scale value


For a consistent matrix, λ = n. For matrices involving human judgement, the condition aik = aijajk does not hold as human judgements are inconsistent to a greater or lesser degree. In such a case the ω vector satisfies the equation Aω= λmaxω and λmax ≥ n. The difference, if any, between λmax and n is an indication of the inconsistency of the judgements. If λmax = n then the judgements have turned out to be consistent. Finally, a Consistency Index (CI) can be calculated from (λmax-n) / (n-1). That needs to be assessed against judgments made completely at random and Saaty has calculated large samples of random matrices of increasing order and the Random Consistency Indices (RI) of those matrices. A true Consistency Ratio (CR) is calculated by dividing the Consistency index for the set of judgments by the Index for the corresponding random matrix. Saaty suggests that if that ratio exceeds 0.1 the set of judgments may be too inconsistent to be reliable. In practice, CRs of more than 0.1 sometimes have to be accepted. A CR = 0 means that the judgements are perfectly consistent. The consistency index is used in order to check whether the judgment of decision makers is consistent with respect to a comparison matrix. In other words, this index is important for the decision maker to assure him that his/her judgments were consistent and that the final decision is made well. The random CI is illustrated in Table 3. The matrix will be consistence and acceptable if consistency ration is less than 0.1 or (CR ≤ 0.1), if not we have to revise the subjective judgement. TABLE 3 RANDOM CONSISTENCY INDEX (SAATY, 1990) n

1

2

3

4

5

6

7

8

9

10

RI

0

0

0.58

0.9

1.12

1.24

1.32

1.41

1.45

1.49

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The idea of using SWOT analysis is to systematically evaluate SWOT‟s criteria or factors and proportionate their strength. This method scans both demand (external) and supply (internal) side. Regardless of these advantages of SWOT, the use of traditional SWOT analysis has no mean of forming the significance of each SWOT factor (Shinno, et. al. 2006). It will be hard to evaluate the most impacting factors in decision making process. Hence, with SWOT analysis method alone cannot perform accurate decision. In this research, AHP and their Eigen-value calculation is integrated with SWOT analysis. Current study used SWOT-AHP to prioritize the internal and external factors, followed by developing strategic planning based on those factors. The objective in utilizing the AHP within SWOT framework is to systematically evaluate SWOT factors and equate their intensities. AHP advantages; i.e., a systematic approach to decision problems and commensurability, are regarded as valuable characteristics in SWOT analysis. Additional value from SWOT analysis can be achieved by performing pair-wise comparisons between SWOT factors and analyzing them by means of eigen-value technique as applied in AHP. The structure of conducting these integration methods is addressed in the four steps with a case study below.


2. SWOT- AHP METHODOLOGY


3. CASE STUDY: RURAL ENGINEERING COLLEGE An engineering college situated at a rural place is facing many challenges since last four years due to increase in numbers of colleges to its surrounding urban places and their competitions. There is shortage of admissions in most of the colleges as total availability of seats in the colleges is increased as compared to the numbers of eligible students aspiring to take admission to engineering colleges. Under such situation, with an aim to formulate a strategic planning for the next five years, the management of the college decided to carry out situational assessment, find critical factors for its sustainability and priorities them to prepare an action plan. The four steps followed in strategic planning with systematic approach and analytical means with AHP integrated in SWOT are explained below. STEP 1: SITUATIONAL ASSESSMENT (SWOT ANALYSIS)

Strengths

Weaknesses

What strengths can we build upon?

What weaknesses do we need to address?

S1. Calm and Quite Environment, Good for Studies

W1. Poor Placements W2. No Branding

S3. Cost of Education is Less (Economical) S4. Small Class Size S5. Good Discipline

W3. Low Financial Status (Fundraising) W4. Less Exposure due to Rural Place W5. Inadequate Marketing Promotion W6. Low Academic Standards of the Students W7. Limited Campus Life

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S2. Good and Care Taking Faculty and Staff


The ultimate success of a strategic planning is largely dependent on the accuracy of an effective situational assessment. SWOT technique is one of the best and the simplest in situational assessment. Though the outcome is more subjective and qualitative, if used carefully SWOT can provide a good basis for successful strategy formulation (Pesonen et al., 2000). Initial questionnaires were framed for the current study to collect data in order to prepare a SWOT matrix for the college. Data collection was carried out from the students, parents, faculty and the alumni of the college. In total, 143 students, 43 parents, 44 faculty and 53 alumni responded to the questionnaire. The answers of the respondents for SWOT were listed, reviewed, deliberated, and organized into meaningful small number of groups. Though it is beneficial to consider many factors, the number of pair-wise comparisons in AHP grows exponentially with the number of factors. Thus, the current process yielded 8 strengths, 7 weaknesses, 6 opportunities and 6 threats as shown in figure 3. It is mentioned that the developed SWOT matrix for an engineering college is applicable for only next five years and same could be repeated if required for the future strategic planning.


S6. Good Teaching S7. Good Results S8. Good Administration Opportunities

Threats

What opportunities can we use?

What threats do we need to be aware of?

O1. Adding New Courses

T1. Loss of Key Staff

O2. Building Infrastructure

T2. Lack of Professional Approach

O3. Take Advantage of Location for Programming and Fund Raising

T3. Sustaining Internal Capabilities T4. Sustainable Financial Backing

O4. Partner with Business, Industry and Government

T5. Increased Competition from Others

O5. Multi-Campus Structure

T6. Negative Perception due to Past Experience

O6. Enhancing Campus Facilities

FIGURE 3 SWOT MATRIX FOR THE COLLEGE

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The hierarchical structure of the evaluation process is achieved at this step which is illustrated in figure 1. Upper level represents the Aim (A) which is developing a strategic planning for an engineering college for the next five years. The level below the upper level (second level) represents the SWOT factors assigned to each SWOT group. The lowest (third) level represents SWOT factors. In normal circumstances, the lowest level in AHP hierarchical structure must be alternatives (Saaty, 1980). However, the alternative level can be eliminated in such cases where the evaluation is carried out with either rating scale or absolute value approach with respect to upper level factors (SWOT factors in this case) rather than pair-wise comparisons. Though it is useful to consider many factors, according to (Saaty, 1986) the number of factors should not exceed 10 factors under each SWOT group and this is the main shortage of the AHP. However, this made the user to avoid overlapping and carelessness when building the SWOT matrix. The comparison matrix of the second level has the size of 4 by 4, to identify the most significant SWOT factors of the SWOT group, which is illustrated in Table 4. These values are used as a scaling factor or priority vector of the four SWOT groups and they are employed to calculate the global or overall priorities of the independent factors within them. This is performed by multiplying the local priorities factors that mentioned in step 3, by the value of the corresponding


STEP 2: HIERARCHICAL STRUCTURE


scaling factor of the SWOT group. The sum of all global priorities becomes one, which will be explained in the next step. TABLE 4 PRIORITY FACTORS WITHIN THE SWOT GROUP SWOT groups

Strengths (S)

Weakness (W)

Opportunities (O)

Threats (T)

Normalized Priority

Strengths (S)

1

1/2

2

1

0.2448

Weakness (W)

2

1

1

1/2

0.2536

Opportunities (O)

1/2

1

1

1/2

0.1672

Threats (T)

1

2

2

1

0.3344

STEP 3: PAIR-WISE COMPARISONS At level three of the hierarchical structure of evaluation process, the pair wise comparisons of factors within the four SWOT groups are conducted as shown in Table 5. The local weight or priority factor for all of the strengths, weaknesses, opportunities and threats are calculated. In order to check and validate the judgments made, Consistency Index (CI) and Consistency Ratio (CR) are calculated and shown in the Table 5. Finally, the global priority of each SWOT factor was calculated as a product of local priority and the scale of each SWOT group (Table 3). Global priorities of all the factors are summed into one.

S1 S2

S3

S4

S5

S6

S7

S8

Weights

S1. Calm and Quite Environment, Good for Studies

1

1/3

1

½

1

¼

1/3

½

0.0565

1

3

2

3

1

1

3

0.2009

1

½

1

¼

1/3

½

0.0565

1

1

½

1/3

½

0.0793

S2. Good and Care Taking Faculty and Staff S3. Cost of Education is Less (Economical) S4. Small Class Size S5. Good Discipline

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Strengths


TABLE 5 PAIR-WISE COMPARISONS MATRICES FOR SWOT FACTORS OR LOCAL WEIGHTS IN SWOT GROUP


S6. Good Teaching

1

S7. Good Result

½

1/3

½

0.0614

1

1

2

0.2287

1

3

0.2106

1

0.1060

S8. Good Administration λ max = 8.1635

CI = 0.02336

CR = 0.017

Weaknesses

W1 W2 W3 W4

W5 W6 W7

Weights

W1. Poor Placements

1

W2. No Branding

1

4

3

2

3

3

0.2642

1

3

3

1

2

2

0.2033

1

1/3

¼

1/3

1/3

0.0441

1

½

1

1/3

0.0779

1

2

1/3

0.1388

1

1/3

0.0825

1

0.1890

W3. Low Financial Status (Fundraising) W4. Less Exposure due to Rural Place W5. Inadequate Marketing Promotion W6. Low Academic Standards of the Students W7. Limited Campus Life

CR = 0.057

Opportunities

O1

O2

O3

O4

O5

O6

Weights


1

¼

1/3

2

3

1/3

0.1086

1

3

3

2

1

0.2912

1

2

3

1/3

0.1625

1

2

1/3

0.0846

1

1/3

0.0681

1

0.2850

O2. Building Infrastructure O3. Take Advantage of Location for Programming and Fund Raising O4. Partner with Business, Industry and Government O5. Multi-Campus Structure O6. Enhancing Campus Facilities λ max = 6.4831

CI = 0.09662

CR = 0.078

Threats

T1

T2

T3

T4

T5

T6

Weights


1

2

1

3

1

2

0.2301

1

½

2

½

1

0.1234

T2. Lack of Professional


CI = 0.07585

112

λ max = 7.4551


Approach T3. Sustaining Internal Capabilities

1

T4. Sustainable Financial Backing

2

3

2

0.2673

1

1

1

0.1042

1

2

0.1683

1

0.1067

T5. Increased Competition from Others T6. Negative Perception due to Past Experience λ max = 6.251

CI = 0.05019

CR = 0.040

STEP 4: STRATEGY FORMULATION The underlying objective of strategy formulation is to transform current conditions into desired situations. In this step, the strategic alternatives having higher value of the global priority for the factors is selected as it is the most effective in concerning all SWOT factors. Now, new objectives may be set, priorities defined and action plans for implementations may be suggested by taking into account the SWOT factors. In this step the overall or global priorities of SWOT factors are calculated and illustrated in Table 6.

SWOT Group

Scaling factor

SWOT Factors

Strengths (S)

0.2448

S1. Calm and Quite Environment, Good for Studies S2. Good and Care Taking Faculty and Staff S3. Cost of Education is less (Economical)

Local Priority

Global Priority

[7]

0.0565

0.0138

[3]

0.2009

0.0492

[8]

0.0565

0.0138

[5]

0.0793

0.0194

[6]

0.0614

0.0150

S4. Small Class Size S5. Good Discipline S6. Good Teaching


TABLE 6 FACTOR PRIORITY SCORES AND OVERALL PRIORITY SCORES OF SWOT FACTORS

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S7. Good Result


S8. Good Administration

Weaknesses (W)

0.2536

[1]

0.2287

0.0560

[2]

0.2106

0.0516

[4]

0.1060

0.0259

W1. Poor Placements

[1]

0.2642

0.0670

W2. No Branding

[2]

0.2033

0.0516

W3. Low Financial Status (Fundraising)

[7]

0.0441

0.0112

[6]

0.0779

0.0198

[4]

0.1388

0.0352

[5]

0.0825

0.0209

[3]

0.1890

0.0479


[4]

0.1086

0.0182

O2. Building Infrastructure

[1]

0.2912

0.0487

O3. Take Advantage of Location for Programming and Fund Raising

[3]

0.1625

0.0272

[5]

0.0846

0.0141

[6]

0.0681

0.0114

[2]

0.2850

0.0477


[2]

0.2301

0.0769

T2. Lack of Professional Approach

[4]

0.1234

0.0413

W4. Less Exposure due to Rural Place W5. Inadequate Marketing Promotion W6. Low Academic Standards of the Students W7. Limited Campus Life

Opportunities (O)

0.1672

O6. Enhancing Campus Facilities

Threats (T)

0.3344

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O5. Multi-campus structure


O4. Partner with business, industry and government


T3. Sustaining Internal Capabilities

[1]

0.2673

0.0894

[6]

0.1042

0.0348

[3]

0.1683

0.0563

[5]

0.1067

0.0357

T4. Sustainable Financial Backing T5. Increased Competition from Others T6. Negative Perception due to Past Experience

4. DISCUSSION

5. CONCLUSION This study brings up a systematic approach and analytical means for strategic planning for the rural engineering college. Combined SWOT and AHP, was applied in the process to identify the critical factors and priorities them to develop action plans for the next five years. Following suggestions are made for few important identified factors; i) The management of the college have to sustain the internal capabilities and see that no key staff of the college should leave the organisation. ii) To overcome the competitions of the neighboring colleges, professional outlook has to be given to the training and placement activities to enhance placements of the students to

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The uniqueness of this analysis over other MCDM studies in various disciplines can be explained as follows: AHP hierarchy structure adds a strategic criteria level in order to link SWOT groups to the goal. Both AHP and SWOT are commonly used in decision making and relatively simple. The combined method can be performed even with a small sample of individuals or groups who are knowledgeable with the issue under investigation (Kurttila et al., 2000). Ability to perform in a limited time frame, less data requirement, transparency of the procedure, and capturing the uncertainties of subjective answers are few advantages of the proposed combined method. Considering only few factors (less than 10) under each SWOT group is the major deficit. However, this induces the user to avoid overlapping and carelessness when constructing the SWOT matrix. Further, performing the prioritization of alternatives with pair wise comparisons may capture the inconsistency of subjective views (Wickramasinghe, V. and Takano, S. 2009). However, evidence shows this method is simple, transparent, systematic, and fast.


This paper intended to introduce a simple, acceptable, systematic and transparent methodology for strategic planning for an engineering college. The ultimate success of a strategic process is, to a large extent, dependent on the accuracy of an effective situational assessment (i.e., external and internal environment). However, SWOT does not analytically determine the importance of factors or assess the fit between SWOT factors and decision alternatives. To eliminate these drawbacks, SWOT is combined with AHP which prioritizes the factors with pair wise comparisons and absorbs uncertainties. This study endeavors to explain the strategies for the rural college combining SWOT with AHP.


attract more numbers of students for admission. iii) In line with the good teaching and training and good care taking of the students, they have to be provided good campus facilities compared to the competitors. iv) Investments in building infrastructure and face lifting of the old building have to be carried out in a phased manner. v) Few more experienced and well qualified teachers have to be recruited to strengthen the departments. After carrying out these suggested action plans in the next five years, if required the process of SWOT-AHP approach be repeated. The particular advantage of this methodology is that each step is transparent and the outcome highly represents the internal and external environment conditions. REFERENCES [1] Baker, M. J. (2000) „Marketing Strategy and Management‟, 3rd edition, New York: Plagrave. [2] Bodin, L., and Gass, I. S. (2003) „On Teaching the Analytic Hierarchy Process‟, Computers & Operations Research, Vol. 30, pp 1487-1497. [3] Coyle, G. (2004) „The Analytic Hierarchy Process (AHP)‟, New York: Pearson Education. [4] Gomatesh M R and Poornima M C (2012) „SWOT Analysis: An Instrument for Strategic Planning – A Case Study (unpublished) [5] Geoff Coyle: Practical Strategy. Open Access Material. AHP, Pearson Education Limited 2004 (Retrieved on 25-06-2012) [6] Kurttila, M., Pesonen, M., Kangas, J., and Kajanus, M. (2000) Utilizing the analytic hierarchy process (AHP) in SWOT analysis-a hybrid method and its application to a forestcertification case, Forest Policy and Economics, Vol.1, 41-52. [7] Learned, E. P., Christiansen, C. R., Andrews, K. and Guth, W. D., (1969) „Business policy: Tax and Cases‟, Irwin: Homewood, IL.

[10] Saaty, T.L. (1980) The Analytic Hierarchy Process: Planning, Priority Setting, Resource Allocation, McGraw-Hill, Inc. [11] Saaty, T. L. (1990). How to make a decision: the analytic hierarchy process. European Journal of Operational Research, 48(1), 9-26. [12] Saaty, T.L. (2008) „Decision making with the analytic hierarchy process‟, Int. J. Services Sciences, Vol. 1, No. 1, pp.83–98.

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[9] Rauch, P. (2007) SWOT analyses and SWOT strategy formulation for forest owner cooperations in Austria, Eur J Forest Res, vol. 126, 413-420.


[8] Pasonen, M., Kurttila, M., Kangas, J., Kajanus, M., and Heinonen, P. (2000) Assessing the priorities using A‟WOT among resource management strategies at the Finnish forest and park service, Forest Science, Vol. 47, No. 4, 534-541.


[13] Shareef, M. Shareef et al. Analysis of the e-Government stage model evaluation using SWOT-AHP method (Retrieved on 25-06-2012) [14] Shahrabi, S. M., Pariazar, J., and Zaeri, S. M. (2007) „Project Selection by Using Fuzzy AHP and TOPSIS Technique‟, World Academy of Science, Engineering and Technology, Vol. 30, pp 333-338 [15] Shinno, H., Yoshioka, H., Marpaung, S., and Hachiga, S. (2006) “Quantitative SWOT analysis on global competitiveness of machine tool industry”, Journal of Engineering Design, Vol. 17, No. 3, June 2006, 251-258. [16] Taylor, B. W., (2004) „Introduction to Management Science‟, New Jersey: Pearson Education Inc.

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[17] Wickramasinghe, V. and Takano, S. (2009) Application of Combined SWOT and Analytic Hierarchy Process (AHP) for Tourism Revival Strategic Marketing Planning: A Case of Sri Lanka Tourism, Journal of the Eastern Asia Society for Transportation Studies, Vol.8, pp 1-16.


PROBLEMS FACED BY THE SUPERMARKETERS – A CASE OF KARNATAKA STATE (INDIA) DR. K. B. RAMAPPA*; DR. S. MANIKANDAN** *Associate Professor, Acharya’s Bangalore B-School (ABBS), Bangalore. **Associate Professor, Acharya’s Bangalore B-School (ABBS), Bangalore.

ABSTRACT The organized food retailing sector in India is on the verge of a boom and expected to undergo further change with prospective new domestic and global foreign entrants and the takeover or exit of some existing participants. Until 1990s, regulations prevented innovation and entrepreneurship in Indian retailing. Between 2000 to 2010 period, consumers in selected Indian cities have gradually begun to experience the quality, choice, convenience and benefits of organized retail industry. Karnataka state is experiencing rapid structural change with the emergence of huge retail firms with massive buying power and concomitantly concentration in the manufacturing sector. Hence, an effort was made in the state to understand the problems of organized food supermarketers, keeping in mind the viewpoint of investors in the food retailing industry. The research was conducted using primary data collected from the concerned authorities of the selected supermarketers across five cities in Karnataka to ascertain the major problems faced by them using Principal Component Analysis. The results revealed that the problems in the supermarket business were many but the variation were governed by a few dimensions. Non availability of trained employees, banks for sources of finance, demand for credit from the customers and bargain from the customers were the key problems among 38 variables considered. The study finally cautioned the food retailers risk a loss of image or even a loss of the customer if they do not learn to react effectively to the problems encountered in the process of the business, which may lead to failures. _________________________________________________________________________

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The retail sector is not yet organized in the country having the highest shop density in the world, with 11 outlets per 1000 people (12 million retail shops for about 209 million households). In ancient India there was a concept of weekly HAAT, where all the buyers & sellers gather in a big market for bartering. It takes pretty long times to and step to shape the modern retail. It is estimated that less than 4% of Indian retailers have shops larger than 500 square feet (Hemant K. Batra, 2012). In 2010, larger format convenience stores and supermarkets accounted for about 4 % of the industry, and these were present only in large urban centers. India’s retail and logistics industry employs about 40 million Indians (3.3% of the Indian population (Asia Times 2004). This sector is one of the pillars of its economy and accounts for 14 to 15 % of its GDP (Anand Dikshit, 2011). The Indian retail market is estimated to be US$ 450 billion and one of the fastest growing retail markets in the world by


INTRODUCTION


economic value. India is one of the fastest growing retail markets in the world with 1.2 billion people (Majumder Sanjoy, 2011). Until the 1990s, regulations prevented innovation and entrepreneurship in Indian retailing. Some retails faced complying with over thirty regulations such as "signboard licences" and "anti-hoarding measures" before they could open doors. There are taxes for moving goods to states, from states, and even within states in some cases. Farmers and producers had to go through middlemen monopolies. The logistics and infrastructure was very poor, with losses exceeding 30 per cent. Through the 1990s, India introduced widespread free market reforms, including some related to retail. Between 2000 to 2010 period, consumers in selected Indian cities have gradually begun to experience the quality, choice, convenience and benefits of organized retail industry.

The study conducted by the Rabo India Finance Pvt. Ltd. says that South Indian states of Tamil Nadu, Andhra Pradesh and Karnataka have taken a lead role in establishing modern food outlets. The growth of organized retailing has shown particular vigour in Chennai and Bangalore where an estimated 40 per cent of their grocery requirements were met through modern retail formats. The study pointed out that media exposure; nuclear families and emancipation of women are some of the important demographic reasons for the shift in the decision-making variables from price. The study also estimated that organized food retail sector is set to expand over ten folds in the next five years to approximately Rs. 75 billion

119

International attention is now increasingly focused on the rapidly growing Indian food retail market. With the removal of quantitative restrictions on imports, Indian consumers can have access to food from around the world. Market analysts believe that hypermarket will determine the future of organized food retailing over the short to medium term. Traditional grocers are also gradually redefining themselves by increasing floor space and introducing self-service format and value added services such as credit and home delivery (Anonymous, 2004).


The organized food retailing sector in India is on the verge of a boom and expected to undergo further change with prospective new domestic and global foreign entrants and the takeover or exit of some existing participants. The domestic corporate houses including Calcutta based Spencer’s and RPG group, Chennai based Subhiksha and Niligiri’s, Hyderabad based Trinethra Group (since 1971), Bangalore based Fabmall, the joint venture between Calcutta’s RPG group and the UK’s Jardine Matheson Group’s Hong-Kong based subsidiary Dairy Farm International’s (now owned) Foodworld supermarket chain, Tatas, Reliance, ITC Group, Lohias-promoted Indo Rama, Mumbai-based RK Hospitality, Kishore Biyani with his Big Bazaar etc., with its hypermarket and supermarket chains are already in process. The globally fourth ranked Germany based Metro AG (with two Metro Cash and Carry wholesale stores opened in Bangalore so far since 2002) and the South African owned Shoprite Group in partnership with a local investor (with one Shoprite hypermarket opened in Mumbai in late 2004) have already started operation in India. In addition, the big retailers such as Tesco (UK) and Carrefour (France) have indicated their plans to enter India once the Indian Foreign Investment Regulations permit. On November 28, 2006 Wal-Mart, the world’s biggest retailer announced plans to enter India in partnership with Sunil Mittal’s Bharati Enterprises, making a direct entry into the rapidly growing Indian retail sector (Anonymous, 2006).


($1.6 billion). The estimate was based on the assumption that 6 million households would spend Rs. 1000/ per month through organized retail. Karnataka is one of the leading states in organized retailing in India as there are more than ten organized retailers (firms) with more than 100 outlets including Metro AG operating in Bangalore city alone due to increasing urbanization and expanding service sectors like software, banking, insurance and Business Process Outsourcing (BPO), which has taken a metropolitan city status more recently has led to increase in income of the consumers. Apart from Bangalore, cities such as Mysore, Mangalore, Hubli-Dharwad and Belgaum in Karnataka are also growing rapidly in terms of urbanization, income and organized retailing with local food marketers as they are converting unorganized retail outlets into organized form because of strong demand for convenience products; and better educated consumers concerned about health, nutrition, food safety, and the environment. As income rose and shoppers sought both convenience and new tastes and stimulation, supermarkets were able to expand the products offered. The global economy has changed, consumer demand has shifted, and retailers operating system today are infused with far more technology than was the case in the past. It was observed that lot of progress have been achieved in the food retailing in the past decade through organized food stores such as supermarkets, discount stores, fresh product outlets, specialty stores, convenience stores and off price retailers. But still there is a lot of scope for the food retailing. The state is experiencing rapid structural change with the emergence of huge retail firms with massive buying power and concomitantly concentration in the manufacturing sector. Hence, an effort was made in the state to understand the problems of organized food retailing in general and supermarketers in particular. The objective is very much relevant from the viewpoint of investors in the food retailing industry. Although few studies were conducted on the food retailing, there were no studies, which cover the food retailing business and constraints faced by the supermarketers in Karnataka. REVIEW OF LITERATURES

Rudolph et al. (2000) in their study suggested that the food retailers risk a loss of image or even a loss of the customer if they do not learn to react effectively to failures and improve their service strategy. Nageshwar Rao and Bramhanandan (2003) in their study on problems of retail traders in Guntur district of Andhra Pradesh found that increasing salary, other incentives and working

120

Connor et al. (1999) reviewed the economic literature on empirical studies of competition in the US food-retailing industry, with special attention to a few studies that attempt to cope with new forms of horizontal and vertical competition. With the end of the 'supermarket revolution' in the 1970s, new forms of horizontal, vertical, and geographic competition have appeared to challenge the supremacy of the supermarket format. New retail formats like warehouse stores, super centers, and fast-food outlets appear to affect local retail supermarket prices. Slotting allowances, coupons, and electronic data gathering have intensified retailermanufacturer rivalry. Foreign direct investment offers the promise of new European-style management styles in US grocery retailing.


Here an effort is made to collect the relevant reviews related to the present research and are presented as follows;


hours were major problems from the employees’ side. Rent on building was a problem of retail traders (62%) since they were facing many problems from the building owner side like high rent, frequent repairs and demand for more good-will. Apart from these retailers (44%) also had faced many problems on media like high rates, inadequate information and coverage of area and timing problems. METHODOLOGY A multistage random sampling technique was used for the study. In the initial stage, Karnataka state was selected as it is one of the leading states in organized retailing in India. At the second stage, five cities across Karnataka such as Bangalore, Hubli-Dharwad, Mangalore, Belgaum and Mysore were selected as the majority of organized retailers were existed in these areas. Recently, most of the local retailers in these areas also modernizing their stores in the form of modern formats like supermarkets. In the last stage, three supermarkets (one outlet/ branch) from each city were selected randomly, so, that the total sample size selected for the study were 15. Among the number of supermarkets existing in these areas, only three supermarketers who agreed to provide the data were selected. The primary data on related to problems faced by the retailers such as causes for loss in retail business, sources of finance, infrastructure problems, problems from the government authorities etc., were collected from the concerned authorities of these selected supermarkets through pre-tested questionnaire method. The Principle Component Analysis, which is a multivariate statistical technique, was employed to ascertain the major problems faced by the supermarketers. FINDINGS OF THE STUDY

121

Table 2 shows the factor loading of the each variable under different factors and the percentage variation explained by each factor. The first dimension comprised of eight indicators with higher factor loadings (above 0.5). Non availability of trained employees, banks for sources of finance, demand for credit from the customers and bargain from the customers were the key problems among them. As the supermarket business is new approach towards organized marketing hence there may be a lack of availability of trained personnel; as the business requires huge investments and uncertainty of the success may restrain financial sector towards retailing business. The credit and bargains from the customers are as usual in any business activities. This indicated that there is a need to train the employees as per supermarkets requirement and bring confidence of the business in financers to get the support. The other problems such as lack of government schemes for finance towards this business, defaults from the customers and non-availability of the credit facility from the wholesalers were found to be the other major problems. It indicates that there is a need to frame some schemes by the government for this business as it is flourishing in recent years,


In the present study, there were 38 variables identified and grouped to explain the problems of retailers/supermarkets across cities in the state. These indicators were identified after careful investigation of the earlier studies and consultation with the higher authorities of the supermarkets and are presented in Table 1. These indicators were subjected to factor analysis (Principal Component Analysis). Out of them 25 indicators were selected with factor loading (above 0.50) by applying the techniques of varimax rotation and considered nine dimensions which together explained 92.38 per cent of the total variation in the problems for interpretation.


providing better services to the consumers’ in turn superior prices to the farmers. It may alert the farmers towards production of quality produces. In contrast, advertisement rate and coverage of area, WTO impact on profit margin and price of the products and market information from the wholesalers have shown no impact. The variables affecting the business such as lack of experience in the business, bad timing of advertisement, damage of products from wholesalers, bribes to government authorities, tax charged by the government and margin from the wholesalers were listed in the second dimension. The demand for discounts and offers from the customers, location of the supermarket, WTO impact on competition and existing laws of the business were listed as the third dimensional problems. It may be due to general tendency of the customers for discounts and offers; as the world is opened for general competition it has an impact on the business; every business has to undergo the prevailing rules and regulations and there is no quid pro quo hence the retailers felt these things as the problems. Similar to this result, study conducted by Connor (1999) shown that new forms of horizontal, vertical, and geographic competition have appeared to challenge the supremacy of the supermarket format in US grocery retailing. The other problems quoted by the retailers listed in subsequent dimensions were VAT charges, demand for new products from the customers, land and building and financial resources, price variation by the wholesalers, storage facilities and agencies for supply of products to supermarkets, delayed delivery from the wholesalers, existing location of the site and availability of untrained employees have consequences on the problems of the retailing. Nageshwar Rao and Bramhanandan (2003) in their study on problems of retail traders in Guntur district of Andhra Pradesh found that rent on building was a problem of retail traders (62 per cent) since they were facing many problems from the building owner side like high rent, frequent repairs and demand for more good-will. Apart from these retailers (44 per cent) also had faced many problems on media like high rates, inadequate information and coverage of area and timing problems. Looking into the listed problems the retailers must learn to cope up and solve the problems efficiently to be the leader in the business. Rudolph et al (2000) in their study suggested that the food retailers risk a loss of image or even a loss of the customer if they do not learn to react effectively to failures and improve their service strategy.

The problems in the supermarket business were many but the variation were governed by a few dimensions. Non availability of trained employees, banks for sources of finance, demand for credit from the customers and bargain from the customers were the key problems among 38 variables considered. As the supermarket business is new approach towards organized marketing hence there may be a lack of availability of trained personnel; as the business requires huge investments and uncertainty of the success may restrain financial sector towards retailing business. The credit and bargains from the customers are as usual in any business activities. In contrast, advertisement rate and coverage of area, WTO impact on profit margin and price of the products and market information from the wholesalers have

122

SUMMARY & CONCLUSIONS


The component matrix and the extent of variation explained by different dimensions on the problems of supermarkets in Karnataka are shown in Appendix-I and Appendix-II.


shown no impact. The other problems quoted by the retailers listed in subsequent dimensions were VAT charges, demand for new products from the customers, land and building and financial resources, price variation by the wholesalers, storage facilities and agencies for supply of products to supermarkets, delayed delivery from the wholesalers, existing location of the site and availability of untrained employees have consequences on the problems of the retailing. Therefore, it is cautioned the food retailers risk a loss of image or even a loss of the customer if they do not learn to react effectively to the problems encountered in the process of the business, which may lead to failures. Hence, they should concentrate to the latest retailing strategies to improve their services to the customers and to make profits. TABLE 1: SELECTED PROBLEMS OF RETAILERS IN FOOD RETAILING BUSINESS AT KARNATAKA Sl No.

Problems of Retailers

Code

I. Infrastructural problems 1

Land & building

P1

2

Transportation

P2

3

Storage

P3

4

Electricity

P4

5

Insurance

P5

6

II. Location of the site

P6

III. Employees Problems 7

Trained employees

P7

8

Un trained employees

P8

9

Agencies

P9

10

Banks

P10

11

Govt. schemes

P11

V. Media problems 12

Rate

P12

13

Coverage of area

P13

14

Timing

P14

15

Information

P15


IV. Source of finance

123

VI. Causes of loss in retail business


16

Financial resource

P16

17

Experience

P17

18

Location

P18

VII. Impact of WTO 19

Competition

P19

20

Price of the product

P20

21

Margin

P21

VIII. VAT 22

Charges

P22

23

Opinion

P23

IX. Problems from the Govt. authorities 24

Tax charges

P24

25

Laws

P25

26

Bribes

P26

27

Procedures

P27

Price variation

P28

29

Delivery

P29

30

Market information

P30

31

Credit facility

P31

32

Damage of products

P32

33

Margin

P33

XI. Problems from the customers 34

Bargain

P34

35

Credit facility

P35

36

Discounts & Offers

P36

37

Demand for new products

P37

38

Repayment

P38

124

28


X. Problems from the wholesalers


TABLE 2: VARIABLES WITH RELATIVELY HIGHER FACTOR LOADINGS ON NINE DIMENSIONS ON THE PROBLEMS OF SUPERMARKETERS IN KARNATAKA

Availability of Trained employees

0.7973

Banks for sources of finance

0.7881

Demand for credit from the customers

0.7428

Bargain from the customers

0.6970

Govt. schemes for finance

0.6652

Repayment from the customers

0.5937

Credit facility from the wholesalers

0.5551

Electricity

0.5232

Advertisement rate

-0.4172

Advertisement coverage (of area)

-0.5568

WTO impact on profit margin

-0.5589

Market information from the wholesalers

-0.5876

WTO impact on price of the product

-0.7112

Percentage Variation

Second Dimension Variables

19.1760

Experience in the business

0.6772

Timing of the advertisement

0.6687

Damage of products from wholesalers

0.6575

Bribes to Govt. authorities

0.6504

Tax charge by the Govt.

0.5829

Margin from the wholesalers

0.4861

Transportation facilities

-0.6319

Percentage Variation Third Dimension Variables

Factor loadings

Demand for discounts & offers from the customers

15.8454 0.6713


First Dimension Variables

Variables

125

Dimensions


Location of the supermarket

0.5932

WTO impact on competition

0.5928

Existing laws

0.4599

Information in advertisement

-0.5735

VAT Charges

0.7235

Demand for new products from the customers

0.5576

Land and building

0.5233

Financial resource

0.4899


Fifth Dimension Variables

Price variation from the wholesalers

0.5486

Insurance facilities

-0.5219

Procedures in the Govt.

-0.5479

Percentage Variation Sixth Dimension Variables

0.6345

Agencies for products supply

0.5987

0.6480

Opinion regarding VAT

0.5183

Existing location of the site Percentage Variation

Ninth Dimension Variables

6.6697

Delivery from the wholesalers

Percentage Variation Eigth Dimension Variables

9.4247

Storage facility

Percentage Variation Seventh Dimension Variables

9.7770

Availability of un trained employees Percentage Variation

6.1932 -0.4656 4.7010 0.5366 4.1074


Fourth Dimension Variables

11.0437

126



PC1

PC2

PC3

PC4

PC5

PC6

PC7

PC8

PC9

Land and building

0.1938

-0.1521

-0.0246

0.5233

0.2849

-0.3063

0.1058

0.5185

-0.2171

Transportation

0.5561

-0.6319

-0.4132

0.1435

-0.1411

0.0950

0.0343

0.2002

-0.0601

Storage

0.0699

-0.2594

-0.5182

0.2955

0.2139

0.6345

-0.1149

-0.2443

-0.1053

Electricity

0.5232

0.3217

0.0842

0.2593

0.3312

0.0092

0.4499

-0.0864

0.3783

Insurance

0.4866

-0.2126

-0.3160

0.0050

-0.5219

-0.1529

0.1611

-0.1297

-0.0720

Location of the site

0.3809

0.4636

0.3020

0.2273

0.2839

0.0935

-0.2763

-0.4656

0.2796

Trained employees

0.7973

0.3168

-0.1010

0.0313

0.1382

0.1566

-0.1809

-0.2233

0.0570


-0.0815

0.4911

0.1039

-0.4321

0.3211

-0.1278

0.1352

0.2381

0.5366

Agencies

-0.0378

-0.1210

0.0803

-0.5020

0.4000

0.5987

-0.0157

-0.0948

-0.0645

Banks

0.7881

-0.2822

-0.0631

-0.0909

-0.3038

0.1763

-0.1346

0.1437

0.0749

Govt. schemes

0.6652

0.3102

-0.4228

-0.0741

0.0446

-0.0939

-0.3620

0.2317

0.0462

Rate

-0.4172

-0.2763

-0.2731

0.3089

0.1313

0.3225

0.3421

-0.0330

0.2637

Coverage of area

-0.5568

-0.4406

0.2213

0.0701

0.3161

0.4091

0.2190

0.3321

-0.0330

Timing

0.1039

0.6687

0.0727

-0.3710

0.0717

0.1938

0.2628

0.4469

-0.1209

Information

-0.1328

0.5205

-0.5735

0.1144

-0.1921

0.2939

-0.2810

-0.1673

-0.2516

Financial resource

-0.0675

0.3378

-0.3577

0.4899

0.4018

-0.1357

0.0448

-0.2830

-0.0919

127

Variables


APPENDIX I: COMPONENT MATRIX OF DIFFERENT DIMENSIONS ON THE PROBLEMS OF SUPERMARKETS

ZENITH

0.1979

0.6772

-0.5137

0.1704

0.1502

0.0286

0.1282

0.2375

0.0095

Location

-0.1362

-0.3059

0.5932

-0.1795

-0.0909

0.5008

-0.3425

0.1465

0.0252

Competition

0.0095

0.3489

0.5928

0.4683

0.0390

-0.0363

0.0774

0.1237

-0.3014


-0.7112

0.3525

0.2160

0.3347

0.1790

0.3373

-0.0515

0.0317

0.0027

Margin

-0.5589

0.3914

0.0360

-0.0064

0.4288

0.1563

-0.2237

0.0632

-0.0044

Charges

0.2643

-0.0792

0.3752

0.7235

-0.1956

0.3293

0.1404

-0.0649

-0.1803

Credit facility

0.5551

-0.5403

-0.1845

-0.0535

0.3529

0.1060

-0.0835

0.1984

0.0423

Damage of products

-0.1482

0.6575

0.2198

0.0700

-0.5619

-0.0489

-0.1210

0.0934

0.0086

Margin

0.3119

0.4861

-0.0670

-0.1640

-0.4620

0.3247

0.1088

0.0222

0.1455

Bargain

0.6970

0.0306

0.2045

0.4770

0.0868

0.2741

0.0804

0.0137

0.2811

Credit facility

0.7428

0.0855

0.5073

-0.0409

-0.1529

-0.1510

0.0648

-0.2930

-0.0367

Discounts & Offers

0.4536

-0.2001

0.6713

0.1776

0.1742

-0.2617

-0.2234

0.0586

-0.1363


0.0333

-0.4011

0.3231

0.5576

0.1618

-0.2297

-0.2042

0.1883

0.1930

Repayment

0.5937

-0.1430

0.3475

-0.3639

0.5522

0.0681

0.0145

-0.0425

0.1510

Opinion

0.2487

0.4982

0.2680

-0.3429

-0.0134

0.0632

0.5183

-0.0490

-0.3993

Tax charges

0.4513

0.5829

-0.0888

0.2176

0.3184

0.0768

-0.3572

0.1123

-0.2534

Laws

0.1948

-0.0863

0.4599

-0.3634

0.1724

0.0692

0.3372

-0.3185

-0.3418

Bribes

0.4263

0.6504

-0.0765

-0.0342

-0.0061

0.1084

0.1755

0.2873

0.0374

128

Experience


International Journal of Multidisciplinary Research Vol.2 Issue 12, December 2012, ISSN 2231 5780


Procedures

0.0351

0.1572

0.2022

0.4902

-0.5479

0.3539

0.3893

0.1032

0.0963

Price variation

-0.4087

0.3204

-0.1671

0.2252

0.5486

-0.3593

0.2030

-0.2003

-0.1223

Delivery

0.2937

-0.4528

-0.3968

-0.0044

0.1958

-0.0709

0.6480

-0.1180

-0.0141

Market information

-0.5876

0.1861

0.1468

0.1614

-0.4139

-0.1250

0.0788

-0.1620

0.3742

APPENDIX II: EXTENT OF VARIATION EXPLAINED BY DIFFERENT DIMENSIONS ON THE PROBLEMS OF SUPERMARKETS IN KARNATAKA

Total

% of Variance

Cumulative %

Total

% of Variance

Cumulative %

Land and building

7.2869

19.1760

19.1760

7.2869

19.1760

19.1760

Transportation

6.0213

15.8454

35.0214

6.0213

15.8454

35.0214

Storage

4.1966

11.0437

46.0651

4.1966

11.0437

46.0651

Electricity

3.7153

9.7770

55.8421

3.7153

9.7770

55.8421

Insurance

3.5814

9.4247

65.2668

3.5814

9.4247

65.2668

Location of the site

2.5345

6.6697

71.9366

2.5345

6.6697

71.9366

Trained employees

2.3534

6.1932

78.1298

2.3534

6.1932

78.1298


2.0703

5.4482

83.5780

2.0703

5.4482

83.5780

Agencies

1.7864

4.7010

88.2790

1.7864

4.7010

88.2790

Banks

1.5608

4.1074

92.3863

1.5608

4.1074

92.3863

Govt. schemes

0.9450

2.4868

94.8731


Variables

Extraction Sums of Squared Loadings

129

Initial Eigenvalues

ZENITH

0.8874

2.3352

97.2083

Coverage of area

0.5814

1.5301

98.7383

Timing

0.4794

1.2617

100.0000

Information

0.0000

0.0000

100.0000

Financial resource

0.0000

0.0000

100.0000

Experience

0.0000

0.0000

100.0000

Location

0.0000

0.0000

100.0000

Competition

0.0000

0.0000

100.0000


0.0000

0.0000

100.0000

Margin

0.0000

0.0000

100.0000

Charges

0.0000

0.0000

100.0000

Credit facility

0.0000

0.0000

100.0000

Damage of products

0.0000

0.0000

100.0000

Margin

0.0000

0.0000

100.0000

Bargain

0.0000

0.0000

100.0000

Credit facility

0.0000

0.0000

100.0000

Discounts & Offers

0.0000

0.0000

100.0000


0.0000

0.0000

100.0000

Repayment

0.0000

0.0000

100.0000

Opinion

0.0000

0.0000

100.0000

Tax charges

0.0000

0.0000

100.0000

130

Rate




Laws

0.0000

0.0000

100.0000

Bribes

0.0000

0.0000

100.0000

Procedures

0.0000

0.0000

100.0000

Price variation

0.0000

0.0000

100.0000

Delivery

0.0000

0.0000

100.0000

Market information

0.0000

0.0000

100.0000

REFERENCES 1. Hemant K. Batra, 2012, FDI in the retailing sector – Pros & cons, India Law Journal, Vol 5, Issue II, April-June 2012. 2. "Global Economy: China, India confront WalMarts". Asia Times. 31 January 2004. 3. Anand Dikshit (August 12, 2011). "The Uneasy Compromise - Indian Retail". The Wall Street Journal. 4. Majumder, Sanjoy (25 November 2011). "Changing the way Indians shop". BBC News.

7. Connor, J. M., 1999, Evolving research on price competition in the grocery retailing industry: an appraisal, Agricultural and Resource Economics Review, 28(2): 119-127. 8. Nageshwar Rao, D. and Brahmanandam, G, N., 2003, Problems of retail traders in Guntur district, Andhra Pradesh: An empirical study, Indian Journal of Marketing, 33: pp. 14-21. 9. Rudolph, T., Busch, A. and Busch, S., 2000, Retail food failures and recovery strategies in Switzerland, Journal of Marketing Channels, 7(3): pp. 69-91.

131

6. Anonymous, 2006, Times of India, Daily dated 28th December 2006.


5. Anonymous, 2004, Business line, Daily dated December 15, 2004.


WOMEN, WORK AND JOB SATISFACTION DR. YASHASWINI. B* *Assistant Professor, Department of Social Work, Acharya Institute of Management and Science. Bangalore.

ABSTRACT This Article includes research study on contemporary working women and work concepts in urban areas. Women who have been entering in to remunerative occupation and professions are increasing substantially. Women are absorbing themselves in various occupations and enjoying equal status more or less on par with men. Women are working in all types of jobs such as technical, professional and non professional in both private and public sectors. The study is carried out in Mangalore city of Karnataka State where the samples were chosen only from urban sector. The scope of this study extends to the working women of all organized sectors.The Objectives of the Study included to tudy the factors responsible for jobs among women , to understand the position of employment and job rewards in the working system of Working Women.to study the extent of freedom enjoyed by working women in the organization, and to understand the level of job satisfaction of the respondents.Women normally take up the jos mainly for financial freedom, and it is very significant that major part of their earnings they utilize for family purpose.working women are in challeging smug by balancing both job and responsibilities at home. In other side of their path also suffering with harassment and discrimination at workplace. KEYWORDS: Employment possition, job satisfaction, job rewards, Quality of working life, Working Women, women rights at work place. ________________________________________________________________________

This article emphasis on few perspectives of working women and her associated aspects of work.viz reason for selection of work among women, position of the employment as per the qualification, nature of job, job designation. involvement in decision making of the

132

This Article includes research study on contemporary working women and work concepts in urban areas. Women who have been entering in to remunerative occupation and professions are increasing substantially. Women are absorbing themselves in various occupations and enjoying equal status more or less on par with men. Women are working in all types of jobs such as technical, professional and non professional in both private and public sectors. Particularly educated women from middle class have come out of their homes due to their economic compulsion, soaring price rise, preference for modern living, and to utilize the acquired education, etc. “Global employment trends for women – March 2008”, released on the occasion of International Women‟s Day, says that the number of employed women grew by almost 200 million over the last decade, to reach 1.2 billion in 2007 compared to 1.8 billion men. (cf: ILO 2008). According to the data available with the Ministry of Labour, the annual rate of growth in employment between 1999-2000 and 2004-05 stood at 3.9 per cent for women against 2.51 per cent for men.


INTRODUCTION


organization, position in organization structure, nature of working condition and job satisfaction, awareness on facilities and legislation at work place. METHODOLOGY OF THE RESEARCH The study is carried out in Mangalore city of Karnataka State where the samples were chosen only from urban sector. The scope of this study extends to the working women of all organized sectors. The research design adopted for this research is descriptive. 200 samples of working women were covered to collect the required data for the present study. Various samples were collected which includes employed women like women polices, bus conductors, women HRs, Bank managers, lawyers, advocates, hardware, software, mechanical, chemical engineers, journalists, reporters Primary school teachers, high school teachers, college teachers, professors and principals, doctors, nurses, lab technicians, college librarians, clerical staffs (L.D.C), Clerk (U.D.C), , directors , Project staffs of non Governmental sectors, editors, news readers, programme anchors, call centers employees etc. OBJECTIVES OF THE STUDY 1) study the factors responsible for jobs among women 2) To understand the position of employment and job rewards in the working system of Working Women. 3) To study the extent of freedom enjoyed by working women in the organization 4) To understand the level of job satisfaction of the respondents. REASONS FOR WORK AMONG WOMEN The first and foremost question arises why women prefer for work.The reason for the same is that both married and unmarried working women are as follows. The data is summarised in the following graph. GRAPH NUMBER 1 SHOWING VARIOUS FACTORS LED FOR WORK 60 52 50 42 36 Unmarried

30

26

24 21

Married 21

20 12 10

5

0 Economic necessity

To Interest to supplement w ork f amily

5

3

Financial independe nce

make use of training &

Ef f ective use of time

Unmarried

36

12

36

42

21

3

Married

24

52

21

26

5

5


36

133

40


Women generally take up work mainly for economic independence. earning on their own gives them financial liberty and independence .The most important reason really is that women want to use their higher education that have gained, augment their economic situation of their families, they want to be enriched in the way that they perceive themselves not just a homemaker but also as a organisation changer. This is the main driving force for the women to work out side. This research data supports financial independence is the major factor for job among unmarried working women, and to supplement family income is the factor for job among married working women. WHAT MOTIVATED YOU TO WORK? TABLE 1SHOWING MOTIVATIONAL FACTORS FOR WORK SI NO

Motivational factors

Unmarried

Married

1

economic independence

42

34

2

To attain social status

33

21

3

Pressure by family members

3

18

4

To spend leisure time

6

15

5

Self motivation

16

12

Child hood expectation was less among married working women compared to unmarried working women. 65 married working women said „yes‟ for having expectation from child hood onwards to work out side. where as among unmarried 77 respondents said „yes‟ for having expectation from child hood onwards to work out side. Women tend to develop dreams of going for a job once completion of the studies, proved to be true from the findings of this study.

134

HAVE YOU HAD ANY EXPECTATION FROM CHILDHOOD ONWARDS TO GO FOR WORK OUT SIDE?


While analysing motivational factor to work out side 42 unmarried working women said economic independence is the major aspect motivated them, Among married urban working women 34 respondents said that economic necessity is the major motivated factor led them to work out side, The more they are economically secure they are able to deal with other social aspects in a much better way. The other reason is that along with economic security job brings dignity and self-respect for them within the family and within the society. They are able to ensure livelihood security for them and that helps in improving the quality of life, proper education for their children and better health care services. Therefore majority of working women think that full employment and self-reliance is what they would want in terms of economic security.


ARE YOU REALLY ENJOYING THE CURRENT POSITION AS PER YOUR EDUCATIONAL QUALIFICATION? GRAPH 2 SHOWING ENJPYING CURRENT POSITION ASPER YOUR EDUCATIONAL QUALIFICATION

Current position as per educational qualification 70 65 62

60

Unmarried

50

Married

40 30

32

20

18 11

10

6

0

0 Strongly Agree

Agree

0 Cannot say

Disagree

Strongly disagree

( λ2=38.142 p=0.001 vhs) There is very high significant difference in the opinion on enjoying current position as per their educational qualification. (N=200) Chi Square Value is 38.142. 65 of unmarried and 62 of married respondents agreed for enjoying current position as per their educational qualification. ARE YOU INVOLVED IN THE DECISION MAKING PROCESS FOR YOUR ORGANIZATION ACTIVITIES? TABLE 3 SHOWING INVOLVEMENT IN DECISION MAKING

1

Superior in decision-making

2 3

Unmarried

Married

-

15

Matters of my job tasks

92

67

No freedom in decision making

8

18

100

100

Total

( λ2=22.777 p=0.001vhs)


Aspects

135

SI NO


When decision making freedom for working women at work place is being asked 92 respondents (unmarried) said that they are given with freedom to take decision only in the matters of their job tasks, among married 67 of them said only in the matters of job tasks but not in the organization aspects. While correlating the opinion of married and unmarried working women in this respect, there is a very high significant difference in their opinion chi square value is 22.77 where the portability value is 0.001, which shows majority of the married working women are already put along year of service and they are promoted to very senior position in the organogram, But there are respondents who revealed negative experience that has been faced by the employers, superior managers, who have acted harshly in terms of gender perspective. In spite of having required eligibilities for a promotion or any other rewards, they are made injustice just because them for being a women, they are usually asked to handle soft assignments by the managers or superior just with an understanding that she cannot handle the position just because she is a women. ARE YOU REALLY ENJOYING YOUR POSITION AS PER YOUR PLACE IN ORGANOGRAM? Being having male as subordinates as superiors 52 unmarried and 42 of married working women agrees for enjoying the position as per their place in organogram, 22 of the unmarried respondent and 21 of married said only some times they place they are enjoying status of the job position , 16 of the unmarried and 24 of married said they cannot say anything on that, 10 of the unmarried and 13 of married said they are not enjoying their job position. GRAPH NO: 3 ENJOYING POSITION AS PER THE PLACE IN ORGANOGRAM Position as per place in the organogram

60 52 50 42 40

Unmar r ied

30 22

24

Mar r ied

21

20

16 13 10

Yes

Some t imes

Cannot say

No

The λ2= 3.078 p=0.3719 which shows no significance in the opinion of married and unmarried working women Findings: - It is observed from this study that working women are not having any understanding about the organisation structure of their organisation, they are unaware to know the place of their position. It is very important to know the various policies pertaining to that position in terms of job description pay, leaves, decision making power etc.

136

0


10


Correlation test does not show major significant difference since opinion of both married and unmarried working women are same in their opinion. DO YOU HAVE THE DESIRE TO GET TO THE HIGHEST POSITION OF YOUR ORGANIZATION, PROVIDED IF YOU HAVE THE ELIGIBILITIES? A question on upon having the eligibilities have the desire to get the highest position of the organization is asked, unmarried gave positive answer where 76 of unmarried women and 36 of married said they will have a try on this matter. 24 of the married said they are not even had thought on it, and 22 respondents said it is impossible to get highest position of the organization. It was observed that working women of this research study are comparatively less thought of promotion, and other reward and also the tougher assignments at work place. They are adjusted to their current position and carrying only soft assignments hence moving to higher positions and handling tougher assignments is not of their ability. Most of the Working women get simply get dissolved with their work without having a first thought on promotion or taking any tougher assignments. They hypothesize managing the high risk jobs along with handling responsibilities at home is really difficult task. Few of them (22 respondents are) said it is impossible to think of promotion since few factors in the organization are not favoring to them to get highest position. In spite of having eligibilities, qualification, experience, they have been discriminated in the basis of sex by their superiors‟ prevalence of stereotype about women, and existing of a wide spread argument that women have the leadership potential on account of emotion but lacked the aggressive leadership ability which is required in such positions. DO YOU THINK THE PRESENT JOB INCREASED YOUR SOCIAL STATUS? Perception of respondents on social status due to the present job.(N=100)(unmarried) 92 percentage of working women said Yes, telling that their job increased the social status, among married 63 said Yes and 37 said No. There is a very high significant difference in the opinion of married and unmarried working on social status.( Λ2=24.115 p=0.001 vhs) Job always increases the social status of working women. Women who are into teaching, police & bank sectors are highly recognised and respected for their service. Chi-square value is 24.115 where p=0.001. Perception of married and unmarried working women on their social status shows very high significant difference as there is wide difference in the opinion.

Sl. No

Aspects

1

P.F

2

Maternity benefits

3

ESI benefits

Unmarried

Married

63

67

-

54

11

56

137

TABLE 5 SHOWING ORGANIZATION FACILITIES


BEING IN THIS POSITION, DO YOU ENJOY THE ORGANIZATION FACILITIES LIKE…..


4

Bonus / Increment

45

72

5

T.A & D.A

45

65

6

Quarters

8

32

7

Organization vehicle

1

1

8

Paid holidays

23

11

The above table summarise organization facilities enjoyed by the working women in their present position. Among unmarried P.F (63%), ESI benefits (11%), Bonus (45%), T.A & D.A (45%) Quarters, (8%), organisation vehicles (1) Paid holidays (23%).Among married 69% of said they are being provided with P.F, Maternity benefits (54%), ESI benefits (56%), Bonus and increment (72%) T.A & D.A (65%), Quarters (32%) organisation vehicle and Paid holidays (11%). NATURE OF WORKING CONDITION ARE YOU HAPPY WITH WORK TIME SCHEDULE? GRAPH NO 4 SHOWING OPINIONS OF WORKING WOMEN ON TIME SCHEDULE

happy with work time schedule 75 80 53 60 27

40

21

20

Unmarried

Married

Always

75

53

Some times

21

27

Cannot say

4

20

While correlating the opinion of research respondents on work time schedule, 75% of unmarried working women said they are always happy with work time schedule ,21% said only sometimes ,4 of them said „cant say‟. Among married 53 said they are always happy with work time schedule, 27 said some times, 20 said they cannot say regarding this.


4

138

0

20


The Chi-square =15.972 p=0.0005 shows, there is a very high significant in the opinion on work time schedule. Comparatively married women are less happy with work time schedule. This is a significant reason that married working women have dual responsibilities. They always face difficulties in balancing both work and family. So they were not able to negotiate start and finish time. Many respondents said it was bit problematic reaching to office on time. Many found difficult working for very long shifts also. Few respondents said one hardening case which had ended with call for dismiss from the job, when it is requested for changes in hours for ½ an hour to 45 minutes relaxation in time schedules. QUALITY OF WORK LIFE (UNMARRIED) TABLE NO- 6 SHOWING OPINIONS ON QUALITY OF WORK LIFE Unmarried working women

Married working women

Grades

5

4

3

2

1

Mean

5

4

3

2

1

Mean

1

Lighting

35

31

33

0

1

3.99

41

47

12

0

0

4.29

2

Cleanliness

54

33

11

2

0

4.39

43

46

11

0

0

4.32

3 Seating Arrangement 42

30

27

1

0

4.13

33

36

16

15

0

3.87

4

Drinking water

45

52

3

0

0

4.42

37

35

14

14

0

3.95

5

Rest Rooms

0

5

18

3

74

1.36

0

17

30

9

44

2.2

6

Recreation

0

21

39

28

12

2.69

18

32

15

35

0

3.33

7

Lunch/tea break

0

24

57

3

3

2.70

34

34

15

17

0

3.85

8

To use & develop capacities

13

60

24

3

0

3.83

36

35

16

13

0

3.94

9

career growth opportunities

13

48

39

0

0

3.74

43

41

13

3

0

4.24

10

Social integration

0

52

30

9

9

3.25

38

36

14

12

0

4.0

In the work force 11

Non work aspects

0

51

33

16

0

3.35

37

31

24

8

0

3.97

12

Recognition

13

27

48

9

3

3.38

46

42

12

0

0

4.34


Parameters /

139

Sl No


LI GHTING GROUP Unmarried Married

N

Mean 3.9900 4.2900

100 100

St d. Dev iation .88186 .67112

t 2.70700 p=0.007 hs

Cleanliness CLEANLNE

GROUP Unmarried Married

N 100 100

Mean 4.3900 4.3200

Std. Dev iat ion .76403 .66485

t .69100 p=0.49 ns

Drinking water GROUP Unmarried Married

N

Mean 4.4200 3.9500

100 100

St d. Dev iation .55377 1.03840

t 3.99400 pFt. So in this case null hypothesis is rejected. That means it shows there significance difference among each E- banking services and satisfaction level of individuals. It proves that there is no same usage pattern according to satisfaction level.


(5% Level Of Significance)


3. RELATIONSHIP BETWEEN E-BANKING SERVICES AND AGE TABLE – 5 RELATIONSHIP BETWEEN E-BANKING SERVICES AMONG VARIOUS AGE GROUP

AGE 30-40 YEARS

40-50 YEARS

ABOVE YEARS

ATM

60

38

18

10

DEBIT CARD

16

12

06

06

CREDIT CARD

10

09

02

03

PHONE BANKING

08

06

03

01

MOBILE BANKING

06

07

06

01

INTERNET BANKING

18

04

03

01

50

In e-banking services we can analyze that the usage of ATM card is highest In20- 30 years that is 60%a few customers are using ATM i.e. 38%here the age group is 30 – 40 years. Between 40 – 50 years peoples are using 18% and lowest Is 10% comes under the above50 years. By the analysis the table shows that the user of debit card is highest between the 20 – 30 years that is 16% in 30 – 40 there is 12% 40 – 50 and above 50 years there are only 06%users. 06%is highest figure in credit card between the 20 – 30 years. 09% 02% 03% show in the age between 30 – 40, 40 – 50, and above 50 years. The similar analysis states that in phone banking services 08% 06%03% of people using this service in the age between 20 – 30, 30 – 40, and 40 – 50 years and 01% above the 50 years.. In mobile banking services by the ratio analysis 06%,07%, 06%,01% in the age between, 20– 30, 30 – 40, 40 – 50 and above 50,respectively. At last in internet banking at the age between 20-30, 30-40,40-50, and above 50, which are 18%,04, 03,and 01%,respectively. H0: There is no significance difference between usages of e-banking services among various age groups. H1: There is significance difference between usages of e-banking services among various age groups.


20-30 YEARS

166

EBANKING SERVICES


TABLE-6 ONE-WAY ANOVA ANOVA Source of Variation

SS

Between Groups

df

MS

916.5

3

305.5

Within Groups

3111.333

20

155.5667

Total

4027.833

23

F

P-value

F crit

1.963788

0.151933

3.098391

(5% level of significance) In E-banking service wise data Calculated value is lower than tabulated value Fc15 YEARS

4

11

1

2

TOTAL

38

100

49

100

Source: Primary data


NURSES

177

DOCTORS


Table 1 shows the basic details of the patient i.e. 21% of the patients are between 20 - 30 years of age, 26% are between 30- 40 years, 27% are between 40-50 years, 7% are between 50 – 60 years and 19% are above 60 years of age. 30% of the respondents are male and the remaining 70% are female. 43% of the respondents have completed high school, 7% of the respondents have completed higher secondary, 3% diploma, 6% UG, 3 % PG and remaining 38% are illiterates. Almost all the patients’ length of stay is more than 7days. Table 2 shows the profile of the healthcare professionals (doctors and patients) i.e. 42% of the doctors and 84% of the nurses are between 20 - 30 years of age, 45% doctors and 16% nurses are between 30- 40 years, and 13% of the doctors are between 40-50 years. 79% of the doctors are male and only 4% of nurses are male, the remaining 21% of doctors and 96% of nurses are female. The respondents from three basic medical wards and a specialty ward were included in the study i.e. general medicine doctors (24%) and nurses (33%), general surgery doctors (39%) and nurses (20%), Gynecology doctors (13%) and nurses (27%) and special ward doctors (24%) and nurses (27%). And it was found that 82% of doctors and 63% of nurses have experience between 0-5 years, 5% of doctors and 29% of nurses have 5-10 years of experience, 2% of doctors and 6% of nurses have experience between 10-15 years and 11% doctors and only 2% of nurses have more than 15 years of experience. TABLE 3 RESULTS OF ONE-WAY ANOVA

ENCOURGAING INDEPENDENTS

PATIENT BEING TREATED AS AN INDIVIDUAL

ATTITUDE TOWARDS PATIENTS

TIME

N

Mean

PATIENT

96

16.09

NURSE

49

16.43

DOCTOR

38

16.45

Total

183

16.26

PATIENT

96

16.46

NURSE

49

16.31

DOCTOR

38

17.37

Total

183

16.61

PATIENT

96

16.47

NURSE

49

14.98

DOCTOR

38

16.32

Total

183

16.04

PATIENT

96

19.43

NURSE

49

17.18

DOCTOR

38

18.61

Total

183

18.66

PATIENT

96

12.25

NURSE

49

9.45

Sig.

0.605

0.048

0.005

0.000


PRIVACY

RESPONDENTS

0.000

178

ITEMS


NEEDS

DOCTOR

38

10.37

Total

183

11.11

PATIENT

96

25.66

NURSE

49

28.76

DOCTOR

38

28.32

Total

183

27.04

0.000

From table 3, it is observed tFrom table 3, it is oberved that there is difference in the perception of healthcare professionals and patients on the following aspects: •

Encouraging independence

•

Patient being treated as an individual

•

Attitude of doctor & nurse towards patient, patient’s opinion about doctor’s attitude

•

Time

•

Needs

And, there is no difference in the perception of patients & health care professionals with regard to privacy. Hence there are differences in the perception of patients and healthcare professionals in certain aspects TABLE 4 SHOWS THE PERCENTAGE ANALYSIS Category of Respondent (in percentage) ITEMS

1

Attention towards privacy

79

18

0 100

0

0

89

10

0

2

Getting consent before examining

61

34

5

84

8

0

30

15

24

3

Upset because group of people around them

8

61

3

33

57

0

10

16

7

4

Patient’s health records secure and confidential

71

16

13

92

8

0

67

2

30


Do not know

Sometimes

Patient

Do not know Mostly

Sometimes

Mostly

PRIVACY

Nurse

Do not know Mostly

Doctor Sometimes

S.No.

179

ENCOURAGING INDEPENDENCE


5

Choose treatment from list of choices

72

24

0

67

29

2

31

29

13

6

Forcing to take up the treatment

11

29

0

18

39

0

8

31

2

7

Allowing to say everything which they feel

90

8

0

71

22

0

83

16

0

8

When exposing to risk allowing them to share their opinion

63

34

0

65

16

0

78

18

3

3

0

8

0

2

0

8

13

13

TREATED AS AN INDIVIDUAL 9

Time provided for personal attention

10

Genuine interest towards patient as an individual person

66

34

0

55

25

2

65

26

3

11

One nurse is in charge of overall patient care

53

18

24

59

12

0

54

37

2

12

Deliberately not telling certain things which they wanted to know

5

47

0

18

59

2

9

15

7

13.1

Paternalistic

37

42

11

76

18

2

71

21

4

13.2

Empathetic

76

21

3

90

10

0

74

22

0

13.3

Professionalistic

40

37

13

0

0

0

19

28

33

13.4

Partnership

0

11

47

51

35

4

15

15

29

13.5

Dominant

5

16

29

29

49

22

4

0

26

Delay in providing treatment to the patient

18

42

3

45

33

2

13

13

1

15

Spend time to discuss about the operation to be performed

87

11

3

76

20

0

68

26

1

16

Hurrying up at times when giving treatment

11

50

3

27

35

0

5

23

2

NEEDS 17

Choice of specialist offered

71

18

3

63

27

8

22

15

25

18

Pay full attention and listen to them carefully without ignoring

76

18

0

88

12

0

89

8

0

Opportunity given for the patient to talk

92

8

0

82

18

0

70

22

1

19

180

14


TIME


20

Wash hands between touching patients

0

0

5

0

0

0

1

0

46

21

Check everything when treating and examining them

0

0

3

0

0

0

1

1

7

22

Treating with respect and dignity during their stay

97

3

0

92

8

0

88

13

0

PRIVACY 

From table 4, it was found that almost 80% of all the respondents (patients, doctors and nurses) perceived in a similar way with respect to privacy i.e. Mostly attention towards the privacy of the patient is given and Hospital is keeping patients’ personal information/health records secure and confidential.



Whereas only 30% of the patients felt that mostly doctors/nurses gets consent before examining amongst a group of people, 15% said sometimes they gets consent and others didn’t know about that.



On the other hand, only 26% of patients told that they were upset because group of people were around them, 67% patients said they were rarely or never upset and others do not know about that. Around 60% of the healthcare professionals felt that the patients were sometimes upset becaue group of people were around them.

Only 60% of the patients felt that they were mostly or sometimes allowed to choose the treatment from the list of choices recommended whereas 96% of healthcare professionals told that they mostly or sometimes allow the patients to choose the treatment.



Around 60% of all the respondents felt that the healthcare professionals rarely or never force them to take the treatment, test, food as recommended, few of the respondents do not know about that and others felt that in certain cases mostly or sometimes they have to force the patients to take up the treatment, test or food.



95% of all the respondents (patients, doctors and nurses) said that mostly or sometimes the patients were allowed

o to say something which they feel is important during medical check-up and o to share their opinion when healthcare professionals expose them to unnecessary risk PATIENT BEING TREATED AS AN INDIVIDUAL 

Almost 95% of the doctors and nurses felt that they were rarely and never impersonal towards patient under certain circumstances whereas only few patients (21%) felt that healthcare professionals were mostly and sometimes impersonal towards them.

181




ENCOURAGING INDEPENDENTS




Most (95%) of the respondents (patients, doctors and nurses) felt that healthcare professionals mostly or sometimes shows genuine interest towards the patient as a person and others do not know about that. On the other hand most (91%) of the patients and 71% of the healthcare professaionals said that mostly or sometimes there was one doctor in overall charge of the care and others do not know about that.



All the three repondents i.e. paients (24%), doctors (52%) and nurses (77%) had felt in a different way that mostly or sometimes doctors (or) nurses were deliberately not telling you certain things that you wanted to know and others said rarely or never they do that.



More than 90% of all the respondents felt that mostly and sometimes the doctors were paternalistic (parent like) and empathetic (kind hearted). 50% of the patients and doctors said rarely or never the doctors were partnership in nature and Dominant but around 70% of the nurses said mostly or sometimes the doctors were partnership in nature and dominant towards their patient. TIME



Only few (26%) patients, most of the doctors(60%) and nurses(78%) felt mostly or sometimes the healthcare professionals delay in providing treatment and others do not know about that.



Almost all (98%) the respondents (patients, doctors and nurses) said that mostly or sometimes spend sufficient time with patients to discuss about the operation or procedure that they are going to perform.



On the other hand around 60% of the doctors and nurses said that mostly or sometimes the doctor hurries up at times while treatment, whereas only few (28%) patients felt that way.



Around 90% of doctors and nurses felt that mostly or sometimes patients were offered a choice in consulting the specialist and only few (37%) patients felt that way.



50% of the patients, and around 95% of the doctors and nurses felt rarely or never the doctors or nurses wash or clean their hands between touching patients while others do not know whether they clean or not.



Whereas around 95% of all the respondents felt that rarely or never the healthcare professionals were careful to check everything in the ward when treating and examining the patients and others do not know about that.



Almost (100%) all the respondents (patients, doctors and nurses) felt that mostly or sometimes on the following aspects

o Paying full attention and listening carefully without ignoring o Opportunity to talk to their doctor/nurse


NEEDS

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o Treating patient with respect and dignity.


SUGGESTIONS 

Educating staff about the health beliefs, practices, and more of specific ethnic and cultural groups in patient population.



Educating staff to ask and not to assume regarding patients’ needs their opinion on treatment modalities and their outcome.



Allowing the patients to do and control as much as they can on their own, wherever possible.



Patients can be asked regularly about their experiences for instance about waiting time and corrective action should be taken then and there.



When the patients stay in the ward, steps should be taken to check every aspect while treating and examining them.



Placing a bulletin board beside each patient’s bed and encourage the patients to write down their questions and concerns. Review this with the patient’s physician and nurse daily.



Hospitals might consider developing different kinds of educational materials for different kinds of patients. CONCLUSION Our purpose is to share what we have learned and to suggest a structured way to think about the quality of health care from the patient’s perspective and incorporate that perspective into quality assessment. Patients who are able to take a more active part in their care may have a better recovery. Whether or not they want to know every statistic related to their case or take part in clinical decisions, almost every patient wants honest, accurate information about what clinicians think is wrong with them, what they plan to do about it, and what outcomes they expect. And yet health care providers routinely misjudge how much their patients want to know or do. Health care must become substantially, even radically, more centered on the needs, desires, and wants of patients and their families. Thus a patient centered care – “Respecting patient’s values & needs” which is an essential need in the current scenario can be provided without any flaw.

Barr M, Ginsburg J. The Advanced Medical Home: A Patient-Centered, Physician-Guided Model of Health Care. Philadelphia: American Coll of Physicians; 2008. Accessed at www.acponline.org/running_practice/pcmh on 5 December 2008.



Fisher, Weinberg. “Innovation in Patient and Family-Centered Care” IOM report Century, January 6, 2005



Jossey Bass, “Through the patient’s eyes – understanding and promoting patient – centered care”, A Wiley Company, 1993, First edition.

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


BIBLIOGRAPHY

ZENITH

Cleary, P.D., and others. “Patients evaluate their hospital care: A National survey,” Health affairs, 1991



Dakof, G.A., and Taylor, S. E. “Victim’s Perceptions of Social Support: What Is Helpful from whom?” Journal of Personality and Social Psychology, 1990



Journal of financial services and management, Volume I, Issue I, April – June 2010, ISSN: 0976-1632, pg 44-51.



Rosenbaum, E.E. The Doctor. New York: Ballantine Books, 1988.



Stegner, W. Crossing to safety. New York: Penguin Books, 1987.



Kimberly D. Allshouse, Baron, R. J. “An Introduction to Medical Phenomenology: I Can’t Hear You While I’ m Listening.” Annals of Internal Medicine, 1985

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




SHOPLIFTING: LEADING TO HIGH SHRINKAGE IN RETAIL INDUSTRY SALI P.S.*; DR. TAPASYA JULKA**; ASHA SHARMA*** *Research Scholar, SOBM, Jaipur National University, Jaipur, Rajasthan, India. **Co-ordinator and Research Supervisor SOBM, Jaipur National University, Jaipur, Rajasthan, India. ***Assistant Professor, Institute of Rural Managementm Jaipur, Rajasthan, India.

ABSTRACT Shoplifting is one of the major problems faced by the retailers since 1950s as the concept shifted from service to self service stores. According to the Global Retail Theft Barometer (GRTB) for 2011, for the third consecutive year, Indians have topped the Barometer which clearly indicates that shoplifting is a real threat to Indian retailing system. An attempt is made though this study to know the magnitude of shoplifting and factors leading to the same in Jaipur City, including the types of shoplifters and the situation of the retail stores where the stealing takes place. For the study, city is divided into three geographical zones viz; North zone, Walled city and South Zone. One store each from organized and unorganized retailing stores were selected at random from the list of retail formats. 150 retail customers and 30 floor managers of retail outlets are surveyed wherein the floor were considered as a control group for validating the responses of retail customers. After analyzing the responses from both sides it is concluded that due to deficiency of an in-house tagging system and effective surveillance system, people intentionally get attracted to “get something for nothing”. The inferences and suggestions serve as a guide for retailers to prevent shoplifting. KEYWORDS: In-house tagging, Shrinkage, Shoplifting, Surveillance, etc. _________________________________________________________________________

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The retail industry, across the globe, has traversed a long way from a modest launching to an industry where the worldwide retail sale is valued at over US $7.0 trillion. Retailing indeed is a marketing activity, designed to provide satisfaction to the end user and to profitably maintain the customer base by continuous quality improvements in all areas concerned with selling of goods and services. In common parlance, retailers are primarily acting as the buying agents of consumers who understand the needs of consumers, break the bulk into sellable units, developing good assortment of merchandises and displaying the merchandises with enhanced visibility to enable the consumers to find it easy and attractive to buy. The Indian retail industry has witnessed tremendous growth over last decade with a noticeable shift towards organized formats, owing to an unprecedented consumption boom and


INTRODUCTION


consumers‟ inclination towards modern concepts of retailing and the service quality, thereon. The retailing business, with a huge turnover, is regarded as the largest private industry in the world which plays a crucial role in the transformation of world economies. In India, retailing is one of the largest industries, which is currently growing at a great pace and expected to grow up to US $1.3 trillion by the year 2018 at a CAGR of 10%. Also, the sector is a major source of employment which contributes around 22% to the GDP and 8% of the employment, which in fact is next to agricultural industry. But, it seems, it's not all smooth sailing. Despite all those encouraging facts, it is observed that the industry is not free from certain pit falls, either due to micro level or macro level reasons. What, if the customer himself turns to be a hindrance in the effective functioning of the system? Not surprisingly, amidst the micro level issues, „Shoplifting‟ is one of the major concerns of organized retailing system in India, more so in recent years. Estimates show that India topped for third consecutive year in the list of Shoplifting activities world over. Of the total shrinkage, shoplifting theft rate in the country is at around 45%, which is found higher than the global average rate of 43.2%. It is also noticeable that shoplifting is very rampant in jewellery and FMCD retailing in India. Most interesting fact is that in recent years spending by Indian retailers on EAS (Electronic Articles Surveillance) machines, dummy models of goods, CCTV cameras, security guards, RFID (Radio Frequency Identification) systems and other security equipments amounted to US$ 158 million, against a total global average of $8.75 billion1 which itself throws light on the magnitude of issue . After shoplifting, employee theft accounted for around 23% of retail shrinkage in India where global average stood at 35%.

 To analyze the factors leading to shoplifting and shrinkage  To inquire into the possible measures for checking the magnitude of shrinkage. 1

The Global retail theft barometer 2011- www.globalretailtheftbarometer.com

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According to the Global Retail Theft Barometer (GRTB) for 2011, retail shrinkage rose to $119 billion i.e. 6.6 percent of the total sales since the last survey conducted in 2010. And for the third consecutive year, Indians have topped the Barometer which clearly indicates that shoplifting is a real threat to Indian retailing system. The silver lining here is that India is the worlds‟ only country, where the shrink rate came down in 2011 in comparison to previous years. Despite a downward trend in shrinkage rate of 2.38 percent, as compared to last year‟s 2.72 percent of the total retail sales, the Nation still occupies No.1 position as the World‟s biggest Shoplifters‟ country. Hence, to understand the magnitude of shrinkage and the factors leading to five finger discounts at store level, a study has been carried out with the following objectives:


Shoplifting, also known as boosting or five-finger discount or shrinkage within the retail industry, is nothing but, theft of goods from retail establishments. The act of stealing goods that are on display in a store has a significant effect on the bottom line of retailers. Shoplifters represent every age group and income level. World over shoplifters are giving the retail industry a massive headache and sometimes a blow which will even result in an economic imbalance at the store level.


The study is an effort to portray certain basic features of and reasons for retail shoplifting which would entail an urgent attention from hierarchy at the policy level. Types of shoplifters, techniques adopted by shoplifters, key factors that lead to shoplifting and thought for prevention, are the thrust areas under discussion. RESEARCH METHODOLOGY The study is confined to the city of Jaipur in Rajasthan. For the purpose of study, the city is divided into three geographical zones viz; North zone, Walled city and South Zone. One store each from organized and unorganized retailing stores were selected at random from the list of retail formats kept and maintained by Merchants‟ association, from each zone for the study. Thus, a total of three organized retail stores and three unorganized store based retailers were considered for the study. While selecting unorganized stores, the size of the store (a minimum of 46m2), average footfall (200 in a day) and size of merchandise assortments, were kept in mind to see that these are small-medium sized stores having augmented features, who play a vital role in the day to day life of the residents of the area. From six sample stores, 25 customers each were selected as sample using judgmental sampling method, to arrive at a size of 150 sample respondents. In addition, 5 floor managers from each sample stores were selected and interviewed as a control group to validate the opinion of retail customers and to know the differences in opinion, if any, which brought the sample size of floor managers to thirty. The study is based on primary and secondary sources of information. The primary data for the study has been drawn from sample respondents through a field survey by instituting a pretested structured schedule. The secondary data has been collected from various magazines, journals, published reports, newspapers and e-sources. For the analysis of data, simple statistical tools like percentage, average and weighted mean were used. Weighted Mean (WM) = Where, Mi

= Number of respondents in the ith response category.

Wi

= Weightage given for the ith response category.

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Anyone who enters a store could be a potential shoplifter. People who steal from stores can be of any age, race, gender, and social and economic background. There are professionals and amateurs who avail five-finger discounts from a store. As far as non-professional shoplifters are concerned, „getting something for nothing‟ is like getting a reward, which in turn gives them an internal elevation. It‟s a fact that, in contemporary generation, many people feel that they need a "lift" just to get through the week or even the day, thanks to adventurous movie flicks and advertisement campaigns in electronic media that always enthuse us towards doing something unprecedented and unparallel, to stand out from the crowd.


SHOP LIFTERS- CLASSIFIED


PROFESSIONAL SHOPLIFTERS: Professional shoplifters target high value goods like jewellery, consumer durables and apparels, and often steal a number of items, even the entire rack of clothes at one time. They often work in teams passing the goods through several pairs of hands before they are eventually stolen away. Some gangs also employ „minders‟ to protect them. These people generally target those items in the store that has a demand in parallel market and they can resell easily. These types of people are a severe threat to retails businesses as the loss incurred could be beyond the containable limit.

2.

AMATEUR SHOPLIFTERS: Most shoplifters fall in this group. They are casual shoplifters. Some of these shoplifters are simply „opportunists‟ and steal because they notice some items, exert a pull on them and quickly decide to conceal and eventually remove it. They perceive little or no risk when contemplating the act. These people are less severe of a threat to businesses.

3.

THE KLEPTOMANIAC 2: Many people assume that shoplifters have a mental disorder or that they must really need the items they are stealing, in order to survive. But the truth is far away from the general assumptions on why most people steal. Very few people have kleptomania, a compulsive urge to steal, and many people who steal have enough money to pay for the items. Shoplifting is clearly a psychological issue for them. Here, for most individuals it is rarely about greed or poverty. It‟s about people struggling with their own personal conflicts and needs. The more intense form of shoplifting is classified in the Diagnostic and Statistical Manual of Mental Disorders, is an „Impulse Disorder‟ known as Kleptomania.

4.

THRILL SEEKER: These are persons who get thrill or a high from shoplifting. The item that they steal will most likely be something that they don‟t even need and probably have the money to pay for it. They don‟t target a very high value item rather they just restrict themselves to items like candy bar, deodorants, handkerchiefs etc. These individuals provide a moderate threat to business owners.

5.

THE VAGRANT- Vagrants are those shoplifters that steal because of need. Usually, they steal items like food, alcohol beverages, tobacco and clothing for personal use. Often vagrants are under the influence of alcohol or some intoxicating substances. Since they seek any method to find a source of income to supply for a very expensive habit, they turn to shoplifting.

Whether it‟s for a thrill, a mental disorder or a professional act, when it comes to the impact of theft, studies reiterates that the shoplifting rarely affects the store as it affects the people 2

Merriam- Webster‟s‟, 1994

188

1.


Similarly, peer pressure is another important reason why people shoplift. Some might do it to seem daring. Some do it because their friends do it and they want to be close to the group. Some people shoplift because they can't afford the items their friends have. Some people shoplift to see what they can get away with. They may do it as a way to challenge authority or to be a nonconformist to the societal rules. Others do it as a way to get attention from dear and near. For some, it's a „substitute for loss‟ because they perceive themselves unfairly deprived in some way, before. On the other hand, depression was found to be the most frequent physiological problem. Generally, shoplifters fall into following categories:


who shop there. Instances say that the shoppers are delayed for frisking and security checks when theft happens at stores. This results in even mental harassment for many. Some stores may add the cost of shoplifting into their prices, surreptitiously. Mostly, the people shopping there are the ones who are paying extra, and not the stores. TECHNIQUES OF SHOPLIFTING For many shop lifters, it‟s an art and exceptional act to grab attention and positive reception of others. But for some, it‟s a serious affair as it would help them fetch means for availing luxury. People with a psychological disorder also constitute a considerable part of shoplifters. Generally, shoplifters develop and use techniques that are most suitable as per their requirements and habits. To conceal the merchandise and walk out of store they may adopt methods like: 1. Palming or carrying small items in hands. Packages, gloves, newspapers, etc. could be use to cover up the act. 2. Using various utility equipments like shopping bags, umbrellas, books, purses, briefcases, paper bags etc. to conceal and steal items. 3. Using booster equipments like a cardboard box that is large enough to conceal stolen items, loose top coats with large pockets or wearing skirts, pants or other garments with elastic waistbands that can receive and hold stolen merchandise. 4. The baby carriage or stroller is a great tool for shoplifters. There are always blankets, toys, and other things in strollers (including the baby) that merchandise can be hidden under. Some thieves have even built false bottoms in baby carriages. 5. A common technique, especially if fitting rooms aren't well monitored, is to steal garments by putting them on under own clothes and wearing them out of the store. Others will just put the clothing on and walk out. 6. Barcode Switching is done when a shoplifter switches the tags/barcodes between to pieces of merchandise most likely putting the cheaper tag on the product they wish to obtain.

9. Employee diversion techniques sometimes work to distract employee attention away from the shoplifter. An accomplice occupies the attention of the clerk while the shoplifter does the stealing. KEY FINDINGS OF THE STUDY Shoplifting indeed is a threat to retail businesses across the globe. The area under reference is not at all free from this general phenomenon. While analyzing the reasons leading to

189

8. Bold shoplifters may grab an item and run out of the store.


7. In the event of a power failure where all lighting and CCTV goes out, the shoplifter quickly grabs as much merchandise as possible and calmly leaves the establishment before power is restored.


shoplifting, it's relevant to note that „getting something for nothing‟3 always represents something more to the shoplifter than the value of the merchandise. Despite the way we normally look at it, shoplifters perceive shoplifting as a form of self nourishment in their life. But in reality, shoplifting is self-destructive and not self-cultivating. Due to their disbelief and skeptical nature, shoplifters often can‟t see the illogicality within it. The key findings of the study as per the responses of retail customers are as follows: 1. FACTORS LEADING TO SHOPLIFTING- RESPONSE BY RETAIL CUSTOMERS When the responses of retail customers at store level were analyzed (Table 1), major factors that lead to shoplifting are: A. LACK OF IN-HOUSE TAGGING AT THE STORES AND UNSCIENTIFIC EXIT INSPECTIONS: This has created a huge opportunity for the shoplifters to execute their act. This is found to be the most prominent reason for theft at stores as per the opinion of retail customers. This came out to be the most important priority of respondents when the major reasons are prioritized. Approximately 20% of the respondents believe that, a much illogical customer exit structure, absence of an in house tagging and RFID system leads to theft and easy exit for shoplifters . It was also observed that, in-house tagging and RFID systems existed in some store were not properly inducted by the exit inspection staff due to their lethargic attitude.

Instances also points at the fact that, due to the irresponsible act of billing personnel, customers are intercepted and frisked at the exit inspection area as the in-house tag on the merchandises were not removed when the item was billed and payment has been received. Customers were of the opinion that this has lead to mental harassment and embarrassment for many and resulted in even discontinuing the visits to same store and „changing‟ store preferences.

3

Berlin,2006

190

B. LACK OF EFFECTIVE SURVEILLANCE SYSTEM AND IRRESPONSIBLE FLOOR MANAGEMENT: It is observed from the analysis that the other important reasons which lead to shoplifting are the absence of an effective surveillance system (18%) and irresponsible and lackluster performance of floor managers and customer relationship executives (17.4%). It‟s a known fact that an effective surveillance system like CCTV or spy cams are capable of reducing the theft up to a certain extent but, due to the lack of an appropriate maintenance system, monitoring and observatory mechanism, the performance of electronic surveillance systems are hindered especially during peak business hours. The nature and performance of floor staff is equally important to check theft. A committed and sensible floor manager is more than a mechanized surveillance system when it comes to checking of shoplifting.


The exit inspection staffs were of the opinion that, overtime job, increased workload and lack of refreshing mechanisms leads to lassitude in employees which in turn results in improper exit inspections. But this seems to be an illogical justification and need an urgent intervention from the supervisory cadre to periodically carry out inspections and motivate and train the staff accordingly, so as to enable the organization to avoid more theft instances, in future.


C. CUSTOMER ATTITUDE AND MENTAL DISORDERS: For few shoplifters the act of shoplifting is due to the mental disorder or basically the personal needs which directs them towards these activities. Several studies have found „diagnosed depression‟ exists in almost 1/3 of the shoplifters, who were studied. Yet another reason pointed out by retail customers for shoplifting is the attitudinal problems of customers either due to mental disorders or depression or due to a developed habit or addiction of stealing (15.1%). D. LACK OF LOSS PREVENTION PERSONNEL AND GATE GUARDS: Absence of Loss prevention personnel on floor and guards on the gate excites the thrill seekers and amateur shoplifters to cash the opportunity and hence it is found to be another notorious reason for shoplifting in retail stores (12.6%), respondent customers opined. It was observed that in some retail stores, to reduce cost of operations, downsizing of employees has been resorted to, where a major chunk of pink slips were issued to the employees at floor level and inspection level. Perhaps, this could be a reason for an increased level of shrinkage in recent years. Among the other reasons, irrational layout also makes it difficult for the employees in the outlets exercise effective surveillance on the customers entering the outlets. Absence of a proper in-store employee deployment system creates huge imbalances as the employee himself is not aware about the commodity location and the layout as a whole. This leads to a much reduced „personal watch‟ by floor managers. At times internal working environment also leads to shoplifting but not by the outsiders, rather by the employees engaged on the counter and the floors. Internal Retail Fraud [IRF] usually involves a cash register transaction. Store merchandise and cash are most often targeted through fraudulent transactions involving refunds, gift certificates, under-rings [sweet-hearting], false voids, paid outs, false transfers & vendor collusion. But as far as Indian retail market is considered it accounts to only 5% of all the shoplifting factors. In this study, theft by employees was found to be mild reason for shrinkage, as only 5% of the respondents opined on the same. TABLE-1: FACTORS LEADING TO SHOPLIFTING- RESPONSE BY RETAIL CUSTOMERS

1

Lack of effective surveillance system

Priority

Priority

Priority

Priority

I

II

III

IV

32

23

21

29

WM

26.8 (17.9)

2

Irresponsible floor management

25

31

23

22

26.1 (17.40)

3

Customer attitude/ Mental disorder

26

18

25

19

22.7 (15.13)


Reasons

191

Sl. No


4

Internal environment leading to employee theft

9

8

5

7

7.7 (5.13)

5

Irrational layout

12

24

16

23

17.5 (11.7)

6

Lack of Loss prevention personnel and guards

19

14

26

19

18.9 (12.6)

7

Lack of in-house tagging Unscientific exit inspections

27

32

34

30

30.2 (20.13)

8

Others (Specify)

0

0

0

1

0.10 (0.06)

9

Total

150

150

150

150

150.0 (100.0)

Note: Figures in bracket denotes percentage to total Source: Field Survey 2. REASONS FOR SHOPLIFTING- RESPONSE BY FLOOR MANAGERS

On contrary to the aforesaid, they accepted that, lack of in-house tagging and lack of a proper scientific exit inspection system (18.7%) is one among the major reason that leads to retail shrinkage followed by inadequate number of loss prevention personnel (14%). This revelation need to be taken seriously by the policy makers as it is a confession by the one who is responsible for the retail floor that the prevailing systems for checking shoplifting and frauds are ineffective. Untrained and irresponsible nature of floor management also formed major reasons for shoplifting (12.3%). They also opined that the present surveillance systems

192

Psychological researches say that the reward that they are getting out of stealing, temporarily eliminates their feelings of anger, frustration, depression or other unhappiness in their life and the realization thereon that how easy is to get that reward, will make them inclined towards doing it again and their addiction begins to develop. This response from floor managers seems to be a contradiction to the major reasons pointed out by the customers and make us believe that it‟s an act of shielding one‟s own fault and blaming others for the mishaps.


According to the Floor managers, the most prominent reason for shoplifting is the customer attitude and mental disorder in them. Out of total respondents, 28% says that the mental disorders and addiction towards doing something extraordinary and to „get away with a day‟ are the major factors that lead to theft at store. It‟s a fact that a person's addiction to shoplifting can develop quickly when the excitement generated from "getting away with it" generate an adrenaline, resulting in a high for him. This „high‟ is treated by many shoplifters as a real reward, rather than the merchandise, he stole.


are not free from disorders and they lack careful maintenance during active store hours (10.7%).Also, the study reveals that the respondents accorded least priority to the irrational layout that induces shoplifting which indicates that the layout of the store is promising a better watch by floor managers. TABLE-2: REASONS FOR SHOPLIFTING- RESPONSE BY FLOOR MANAGERS Sl. No 1

Reasons

Lack of effective surveillance system

Priority

Priority

Priority

Priority

I

II

III

IV

03

02

04

06

WM

3.2 (10.7)

2

Irresponsible floor management

03

03

05

06

3.7 (12.3)

3

Customer attitude/ Mental disorder

11

06

07

07

8.3 (27.7)

4

Internal environment leading to employee theft

01

04

03

03

2.8 (9.3)

5

Irrational layout

02

04

02

01

2.5 (8.3)

6

Lack of Loss prevention personnel and guards

04

05

04

03

4.2 (14.0)

7

Lack of in-house tagging Unscientific exit inspections

06

06

05

04

5.6

Total

30

30

30

30

30.0 (100.0)

Note: Figures in bracket denotes percentage to total Source: Field Survey

193

8


(18.7)


According to the control group, major factor that lead to shoplifting is the customer attitude and mental disorder of some customers, in contrast to the response given by the retail customers who clearly stated that it is due to the lack of an in-house tagging system, unscientific exit inspections and ineffective surveillance system. Thus after generalizing the responses from both sides it is concluded that due to deficiency of an in-house tagging system and effective surveillance system, people intentionally get attracted to “get something for nothing”. Also it is pertinent to note that the attitude of employees and exit inspection personnel need to be energized towards moving in tandem with the organization‟s goals and also to ensure the „customer franchise‟, which is the catchword in contemporary marketing ideology. SUGGESTIONS AND POLICY IMPLICATIONS It is evident from the analysis that, shoplifting remains as a shock to the retailing system both organized and unorganized stores, as ever. Organized retails chains are the worst affected ones owing to its large scale of operations, size of floor and inadequate human resources to cover the total business area. Human errors and technical snags seemed to be equally responsible for this sorry state of affair. This call for an urgent attention of policy makers, as most of these issues which lead to shrinkage are internal to the system, which could be easily resolved in one go if there is a concerted and conscious effort. The study reiterates on the need for a revamped system for checking shoplifting acts in Retail outlets. The suggested measures on the basis of responses of respondents are:

3. UPGRADING RETAIL SECURITY: In-house tagging helps in a big way to electronically locate lifting and to check theft. It is found that, in Asia-Pacific region, 18.5% of the theft occurs due to the lack of such a system (GRTB-2011). Use of an electronic shoplifting anticipation system or Electronic Article Surveillance (EAS) system may upgrade security mechanism in retail outlets. Under this technological method special tags are fixed to merchandise. Exit gates detect tags through RFID (Radio Frequency Identification) system, that have not been removed or deactivated, and sound

194

2. IMPROVING STORE LAYOUT AND DISPLAYS: A well-designed store layout will not eliminate all shoplifting but will help reduce it. Combining customer service techniques with good store design will help combat shoplifting. Keep the store neat and orderly. Full displays and straightened shelves allow employees to see it at a glance if something is missing. Use mirrors to eliminate blind spots in corners that might hide shoplifters. Maintain adequate lighting in all areas of the store, keep fixtures and displays.


1. INSTALLING AND MONITORING CCTV: Use of Closed Circuit Television (CCTV) with a video recording capability may help deter theft and also strengthens the tracking system through the use of footages for a stipulated period of time. It increases surveillance of vulnerable merchandise and locations and act as evidence under law to identify offenders for their prosecution. Moreover, a qualified team should be maintained at store level that should be entrusted with the responsibility to centrally monitor the surveillance system. If so, CCTV technique works best, if it is located close to key areas with a clear visibility. But care should be taken to guard against offenders sneaking off to conceal goods beyond the catchment area of the system, such as around blind corners, in elevators and in stairwells. Deployment of well trained watch personnel in those areas, may help reduce the act.


an alarm. Establishing clear rules for use of changing rooms in clothing stores, keeping high-valued items in locked-displays or securing them through cable locks and security hangers, displaying one shoe per pair in shoe shops etc. could be some other tactics that can help retail owners to reduce the shoplifting acts. 4. HIRING MORE AND BETTER-TRAINED SALES STAFF: Stores should hire sufficient numbers of staff to properly oversee goods and customers, especially at high risk periods for shoplifting. Staff needs to be attentive to customers and alert for thieves. Scientific training need to be imparted to the staff on procedures for dealing with shoplifting incidents. Procedure of bag checks, when a suspicious activity is noticed, need to be revamped and staff should alert each other immediately through the security code. Train staff to be observant at all times and to report anything suspicious to their Supervisor. 5. TIGHTENING STOCK CONTROLS: A more scientific Inventory control procedure would permit shoplifting trends to be detected and shoplifting to be distinguished from employee theft. It helps managers to detect changes in amounts or patterns of shoplifting so as to enable them to take necessary steps to control the theft. 6. CHECK PRICE SWITCHING: Cashiers should watch price tags and be on the lookout for price switching. Ask for a price check if something seems out of place. This require a proper awareness on products, variants and prices for which periodical training through simulations and role plays, need to be imparted to all employees. Shoe boxes, pocket books, baskets with lids and any other products which can be easily opened, should be inspected by cashiers to make sure that it does not contain un-billed merchandises. 7. SIGNAGE: Signs and posters reinforcing security messages should be used. Signage on CCTV surveillance and anti-shoplifting catchphrases like 'Shoplifters Will Be Prosecuted' should be pasted in clearly visible locations. These notices may alert potential thieves that the identified merchandise may be subject to special surveillance.

9. PHONY SHOPPERS: This is a common practice adopted by many retailers where they pose store surveillance personnel as casual shoppers who will look for signs of shoplifting among the real shoppers. This could be a remedial measure, if the surveillance personnel are imparted with proper training to avoid tarnishing the image of the store, if they hold a wrong customer identified as a shoplifter. 10. BUZZER: If store is small, a buzzer or bell can be attached to the front door so that it rings whenever front door is opened. This is a practice in many retail outlets in west and is effective when outlets are small in size. CONCLUSION


8. USE CUSTOMER SERVICE TO PREVENT SHOPLIFTING: This includesSchedule an adequate number of employees, greet every customer that enters the store. This lets the customer know that staff is aware of their presence. Don't allow customers to distract the cashier & every bag should be stapled closed, with the sale receipt attached.

195

It's raining malls in India. The mushrooming of shopping malls across the country's landscape may have made everyone wonder where they will find so many shoppers and tenants. The


fact is, the mall culture is still in nascent stages in the country when compared to developed and other developing countries, but is fast changing. Whether it's a small town or a metro city, in India, the mall and multiplex culture has tightened its grip in the country's cities and suburbs, triggered by the rapidly increasing purchasing power of India's middle-class and the entry of biggies in the sector with an altogether different shopping experience and service quality for its customers. From a handful of malls in the mid '90s, India today has nearly 300 malls spread across large and small cities. Also, 40% among the upcoming malls in the country are concentrated in the smaller cities which clearly points at the fact that „Little-town India‟ is the next zing thing in the retail industry. Despite this robust scenario, shoplifting seems to be a major problem in today‟s retail business environment which ultimately dampens the very existence of the system as the impact of shrinkage is far reaching and is becoming beyond imagine. The temptation of not paying for something, just hiding it away and saving one‟s money is a large factor for some people. The culprit just thinks he's getting a product for free and doesn't know what he's actually doing to himself and the community. Customers agreed that shoplifting is a major concern but the occurrence of such an ill-act is basically due to the unscientific methods and unwatchful attitude of the retailers which prompted people to lift items from stores. Retailers should bring in strong antitheft policies and create awareness among customers and employees, in a similar fashion. It seems, shoplifting techniques are as varied as people‟s imaginations. Training employees to detect and prevent shoplifting should be a continued effort. Though Indian shrinkage rate has fallen down from 2.72 percent to 2.38 percent of total retail sales, the retailers should build in policies to punish the culprits who indulge in the crime of shoplifting and be vigilant of people who commit the same. Like we have to follow certain ethics in marketing, customers too should follow some „purchase ethics‟ which would certainly have a positive impact on the concerted mission to curb shoplifting. Looking ahead, retail analysts suggest that the sustained success of the stores largely depends on attitude of customers and hence an attitudinal motivation is required to get desired level of results. This, in turn, would help us maintain the growth path and fetch a more robust market in the time to come. REFERENCES

3. Gilbert, David, (2007), „Retail marketing Management‟, Prentice Hall Publication,New Jersey 4. Jay, Diamond and Pintel, Gerald (2001)‟ Retail Buying‟, Prentice Hall Inc, New Jersey 5. Levy, Micheal and Weitz, Barton.A, (2009) “Retailing Management”, Tata McGraw Hill Publication, New Delhi

196

2. Beisel, L.Lohn (1993), „Contemporary retailing‟, MacMillan Publishing Company, New York.


1. Beck.A. Peackock, C. (2009) New Loss Prevention: Redefining Shrinakge Management, New York: Palgrave MacMillan.


6.

Mason, Berry,J, Mayer, Morris L, Wilkinson, J.B et al (1998), “ Retailing: Theory and practice”, Irwin Series Publication, Boston,USA

7. Mathew Joseph, Nirupama S et al, (2008) “Impact of Organised Retailing on Un Organised Sector”, Indian Council for Research on International Economic Relations, Working Paper no222, New Delhi 8. Sinha, Piyush Kumar and Uniyal, Dwarika Prasad (2008), “ Managing Retailing”, Oxford University Press JOURNALS 1. Bhattacharya,K. Pranab Dr., „Booming Retail Sector- Destination India‟, ELK: Journal of Marketing and Retail Management (ISSN 0976-7193), Volume 1(1), August 2010 2. Bhattacharya Pinki, Ranjan and Dr., Sourav Laha, „ Responsible factors for decline of an organized retail sector: A case study of Sambayika , in West Bengal‟ , Indian Journal of Marketing, Vol XXXX (1), Jan 2010 3. Datta, Mahua, and Datta, Debraj „A Study of Local Diversities in Retail Purchase Behavior of Grocery to formulate Retail Strategy for the Global Players proposing the use of Data Envelopment Analysis‟, Focus-International Journal of Management Digest, (ISSN: 0973-9165), Vol 5 (1,2), April-Oct 2009. 4. Pathak, S.V, Dr & Tripathi P.Aditya, „Customer shopping behavior among modern retail formats: a case study of Delhi and NCR‟, Indian Journal of Marketing, Vol XXXIX (2), Feb., 2009 5. Saxena, Nitu,, „Changing Consumer Behaviour: Its influence on Organised Retailing in India‟, ICFAI- Marketing Mastermind (ISSN 0972-5156), Vol IX (11), Nov.2009 6. VU Vinitha, „Shoplifting- Five finger discounts in Retailing‟, Marketing Master Mind, ICFAI-2008. E- ARTICLES 1. www.globalretailtheftbarometer.com

3. www.berlin.barwick.de 4. www.retail-week.com 5. www.internetretailing.net 6. www.economictimes.com 7. www.checkpointsystems.com


2. www.merriam-webster.com

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8. www.accessmylibrary.com


9. www.allaboutmarketresearch.com 10. www.siliconindia.com 11. www.newyorker.com

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12. www.webaward.org


EMPIRICAL ANALYSIS OF CAPM AND APT MODELS IN FMCG COMPANIES LISTED IN BSE STOCK EXCHANGE SHASHI GUPTA*; DR. D.R. AGGARWAL** *Assistant Professor, ITM University, Gurgaon. **Professor, ITM University.

ABSTRACT Asset Pricing Models have been commonly used techniques in the Global Investment world for calculating the required rate of return of risky assets. Capital Asset Pricing Model and the Arbitrage Portfolio theory are the main models which are used for the asset pricing. This paper investigates the applicability of CAPM and APT model in the Indian FMCG Sector companies and tried to find out the plausible reasons of the deviations from the theories. In this study we examines the Capital Asset Pricing Model (CAPM) and APT (Arbitrage Portfolio theory) for the Indian stock market using monthly stock returns from 27 FMCG companies of BSE 500 Index listed on the Bombay stock exchange for the period of January2008 to December 2011. KEYWORDS: Asset Pricing Model, Capital Asset Pricing Model, Arbitrage Pricing Model, BSE (Bombay Stock Exchange), beta, risk free rate, systematic risk. __________________________________________________________________________ INTRODUCTION

199

FMCG industry provides a wide range of consumables and accordingly the amount of money circulated against FMCG products is also very high. The competition among FMCG manufacturers is also growing and as a result of this, investment in FMCG industry is also increasing, specifically in India, where FMCG industry is regarded as the fourth largest with estimated total market size of around Rs 110,000 crore in 2010. A weak rupee and rising input costs may force FMCG companies to increase prices of their products in 2012, which in turn is likely to hit sales during the year by about 10-15 per cent. Persistent rise in rawmaterial prices, fluctuation in the currency, weak industrial growth and slowing global economy coupled with an overall moderating consumer sentiment might lead to a slow volume growth of FMCG segment in 2012. In this research CAPM and APT model has been used to measure volatility and returns of FMCG stocks. CAPM model measures required return on stocks using Beta factor for evaluation. It measures effect of Beta (systematic risk)


Capital market plays an important role in the development of an economy and is an integral part of financial system. The issues related to pricing the securities have been a core issue and has attracted the attention of the researchers for long. The risk-return relationship performs a pivotal role in pricing of securities and as a result helps in taking the judicious investment decisions. In this study we are inclined toward application of the CAPM and APT models in pricing the securities.


on stock return. Whereas APT model includes various other macro-economic factors such as GDP growth rate, population Growth rate, inflation rate etc. that have impact on return of various stocks. The study is organized in four parts: Part 1 is the introduction; part 2 reviews some of the empirical evidences on CAPM and APT models; part 3 deals with the objectives, data and methodology; part 4 focuses on the analysis of the results; part 5 presents the summery and conclusions. LITERATURE REVIEW Various studies has been conducted to calculate appropriate returns on risky stocks and to find the factors on the bases of which portfolios can be established. Harry Markowitz introduced MPT in a 1952 and 1959. Prior to Markowitz's work, investors focused on assessing the risks and rewards of individual securities in constructing their portfolios. Standard investment advice was to identify those securities that offered the best opportunities for gain with the least risk and then construct a portfolio from these. William Sharpe (1964) published the capital asset pricing model (CAPM). Parallel work was also performed by Treynor (1961) and Lintner (1965). CAPM extended Harry Markowitz's portfolio theory to introduce the notions of systematic and specific risk. For his work on CAPM, Sharpe shared the 1990 Nobel Prize in Economics with Harry Markowitz and Merton Miller. The APT model was first described by Steven Ross in an article entitled The Arbitrage Theory of Capital Asset Pricing, which appeared in the Journal of Economic Theory in December 1976. The Arbitrage Pricing Theory assumes that each stock's (or asset's) return to the investor is influenced by several independent factors. Miller and Scholes (1972) exhibited some statistical problems when using individual securities’ returns in testing the validity of the CAPM. Black,Jensen and Scholes (1972) formed portfolios of all the stocks of the New York Stock Exchange over the period 19311965, and reported a linear relationship between the average excess portfolio return and the beta, and for high beta portfolios(low beta portfolios) the intercept tends to be negative (positive).Extending the work of

200

Various researcheshave been conducted by researchers to test the validity of CAPM model and APT model in different scenario. Jamal Munshi, Sonoma State University, 1992 has conducted research for Empirical tests of the APT are characterized by the emotional zeal of the authors and their universal dislike for the CAPM rather than objective scientific inquiry. H. Jamal Zubairi, Shazia Farooq has also undertaken study to test the validity of CAPM and APT in the oil, gas and fertilizer companies listed on the Karachi Stock Exchange. The purpose of the research is also to identify plausible reasons for deviations from the theories. Alina Lucia Trifan has written an article purpose of which is empirical testing of Capital Asset Pricing Model (CAPM) for the Romanian capital market, both for individual assets and


Black, Jensen and Scholes (1972) study, Fama and MacBeth (1973) highlighted theevidence (i) of a larger intercept term than the risk-free rate, (ii) that the linearrelationship between the average return and the beta holds and (iii) that the linearrelationship holds well when the data covers a long time period. Subsequentstudies, however, provide weak empirical evidence on these relationships. See, forexample, Fama and French (1992), He and Ng (1994), Davis (1994) and Miles andTimmermann (1996).


for portfolios, using a sample of daily data for 24 companies listed on Bucharest Stock Exchange OBJECTIVES The main objective of this paper is to examine whether the CAPM and APT model holds true in Indian stock market. DATA SELECTION: The research has been applied to 27 FMCG companies listed on BSE 500 with a view to apply CAPM and APT model and analyze the result thereof. Data for the period 2008-2011 has been taken. The BSE 500 index represents the 93 percent of BSE’s total market capitalization and 74 per cent of BSE’s total turnover. The data were obtained from BSE Website (www.bseindia.com) and www.rfinance.yahoo.com. The monthlyclosing values of the BSE 500 share Index are used as a proxy for the market portfolio. Furthermore, the yield on 91-days treasury bills of government of India is incorporated as risk free return. The returns on sample scrips and market index are calculated as follows:

For applying APT model, Data on 4 factors has been collected and those factors are GDP growth rate, inflation rates, currency exchange rate and population growth rate.

In finance, the capital asset pricing model (CAPM) is used to determine a theoretically appropriate required rate of return of an asset, if that asset is to be added to an already welldiversified portfolio, given that assets non-diversifiable risk. The model takes into account the asset's sensitivity to non-diversifiable risk (also known as systematic risk or market risk), often represented by the quantity beta (β) in the financial industry, as well as the expected return of the market and the expected return of a theoretical risk-free asset.

201

Capital asset Pricing Model as the name suggests is the theory that explains how asset prices are formed in the market place. It act as a logical and major extension of the portfolio theory of Markowitz by William sharpe (1964) was introduced by Jack Treynor (19652) and Jan Mossin (1966). Sharpe, Markowitz and Merton Miller jointly received the Nobel Memorial Prize in Economics for this contribution to the field of financial economics.


CAPITAL ASSET PRICING MODEL


A model that describes the relationship between risk and expected return and that is used in the pricing of risky securities.

The general idea behind CAPM is that investors need to be compensated in two ways: time value of money and risk. The time value of money is represented by the risk-free (rf) rate in the formula and compensates the investors for placing money in any investment over a period of time. The other half of the formula represents risk and calculates the amount of compensation the investor needs for taking on additional risk. This is calculated by taking a risk measure (beta) that compares the returns of the asset to the market over a period of time and to the market premium (rm-rf). The CAPM says that the expected return of a security or a portfolio equals the rate on a riskfree security plus a risk premium. If this expected return does not meet or beat the required return, then the investment should not be undertaken. The security market line plots the results of the CAPM for all different risks (betas). CAPM decomposes a portfolio's risk into systematic and specific risk. According to CAPM, the marketplace compensates investors for taking systematic risk but not for taking specific risk. This is because specific risk can be diversified away. When an investor holds the market portfolio, each individual asset in that portfolio entails specific risk, but through diversification, the investor's net exposure is just the systematic risk of the market portfolio. Systematic risk can be measured using beta. According to CAPM, the expected return of a stock equals the risk-free rate plus the portfolio's beta multiplied by the expected excess return of the market portfolio.

Systematic Risk: The risk inherent to the entire market or entire market segment. Also known as "un-diversifiable risk" or "market risk."

•

Unsystematic Risk : Company or industry specific risk that is inherent in each investment. The amount of unsystematic risk can be reduced through appropriate diversification.

•

Beta : A measure of the volatility, or systematic risk, of a security or a portfolio in comparison to the market as a whole. Beta is used in the capital asset pricing model (CAPM), a model that calculates the expected return of an asset based on its beta and expected market returns.

202

•


IMPORTANT TERMS


•

'Risk-Free Return: In theory, the risk-free rate is the minimum return an investor should expect for any investment, as any amount of risk would not be tolerated unless the expected rate of return was greater than the risk-free rate.

•

Capital Market Line: A line used in the capital asset pricing model to illustrate the rates of return for efficient portfolios depending on the risk-free rate of return and the level of risk (standard deviation) for a particular portfolio.

ARBITRAGE PRICING THEORY - APT As its name implies, the Arbitrage Pricing Theory, or APT, describes a mechanism used by investors to identify an asset, such as a share of common stock, which is incorrectly priced. Investors can subsequently bring the price of the security back into alignment with its actual value. The APT model was first described by Steven Ross in an article entitled The Arbitrage Theory of Capital Asset Pricing, which appeared in the Journal of Economic Theory in December 1976. The Arbitrage Pricing Theory assumes that each stock's (or asset's) return to the investor is influenced by several independent factors. THE APT FORMULA Furthermore, Ross stated that the return on a stock must follow a very simple relationship that is described by the following APT formula: Expected Return = rf + b1x (factor 1) + b2x (factor 2)... + bnx (factor n) Where: •

rf = the risk free interest rate, which is the interest rate the investor would expect to receive from a risk-free investment. Typically, U.S. Treasury Bills are used for U.S. dollar calculations, while German Government bills are used for the Euro

•

b = the sensitivity of the stock or security to each factor

•

factor = the risk premium associated with each factor

The risk premiums associated with each of the factors described above

•

The stock's own sensitivity to each of the factors; similar to the beta concept

Risk Premium r - rf = b1x (r factor(1) - rf) + b2x (r factor(2) - rf)... + bnx (r factor(n) - rf) If the expected risk premium on a stock were lower than the calculated risk premium using the formula above, then investors would sell the stock. If the risk premium were higher than the calculated value, then investors would buy the stock until both sides of the equation were

203

•


The APT model also states that the risk premium of a stock depends on two factors:


in balance. Arbitrage is the term used to describe how investors could go about getting this formula, or equation, back into balance. FACTORS USED IN THE ARBITRAGE PRICING THEORY It's one thing to describe the APT theory in terms of simple formulas, but it's another matter entirely to identify the factors used in this theory. That's because the theory itself does not tell the investor what those factors are for a particular stock or asset, and for a very good reason. In practice, and in theory, one stock might be more sensitive to one factor than another. For example, the price of a share of ExxonMobil might be very sensitive to the price of crude oil, while a share of Colgate Palmolive might be relatively insensitive to the price of oil. In fact, the Arbitrage Pricing Theory leaves it up to the investor, or analyst, to identify each of the factors for a particular stock. Therefore, the real challenge for the investor is to identify three items: •

Each of the factors affecting a particular stock

•

The expected returns for each of these factors

•

The sensitivity of the stock to each of these factors

Identifying and quantifying each of these factors is no trivial matter, and is one of the reasons the Capital Asset Pricing Model remains the dominant theory to describe the relationship between a stock's risk and return. Keeping in mind that the number and sensitivities of a stock to each of these factors is likely to change over time, Ross and others identified the following macro-economic factors they felt played a significant role in explaining the return on a stock: •

Inflation

•

GNP or Gross National Product

•

Investor Confidence

•

Shifts in the Yield Curve

ri – rf = α+ β (rm- rf)

--------Regression equation

204

In order to test the CAPM hypothesis, it is essential to find the counterparts to the theoretical values that must be used in the CAPM equation. In this study the yield on the 91days Treasury bill was used as an approximation of the risk-free rate. For the market portfolio return (rmt), the BSE 500 Share index is taken as the proxy for the market portfolio. The regression equation used for CAPM is


ANALYSIS OF RESULTS


TABLE 1

Britania

colgate

dabur

Std. tProb. Erro Statistic r

R-squared

beta

0.15711 1

6.08756 8

0

alpha

1.59530 7

1.14063 7

0.259 9

Variab le

Std. Error

tStatistic

beta

0.14895

alpha

Adjuste Fd R- statistic squared

Prob(Fstatistic )

0.4461 73

0.434134

37.058 49

0

Prob.

Rsquared

Adjusted Rsquared

Fstatistic

Prob(Fstatistic )

8.00792 1

0

0.5823

0.573219

64.126 8

0

1.51243 8

1.55123 8

0.127 7

Variab le

Std. Error

tStatistic

Prob.

Rsquared

Adjusted Rsquared

Fstatistic

Prob(Fstatistic )

beta

0.34259 1

0.10454 9

0.917 2

0.0002 38

0.021496

0.0109 31

0.9171 88

alpha

3.47867 9

0.82314 2

0.414 7

Variab le

Std. Error

tStatistic

Prob.

Rsquared

Adjusted Rsquared

Fstatistic

Prob(Fstatistic )

beta

0.09189 2

2.2542

0.029

0.0994

0.079906

5.0817

0.0289

alpha

0.93307 7

1.80773

0.077

Variab le

Std. Error

tStatistic

Prob.

Rsquared

Adjusted Rsquared

Fstatistic

Prob(Fstatistic )


Bata

Variab le

205

agro tech

ZENITH

0.18368 4

1.31330

0.195

0.0361

0.015186

1.7247

0.1955

alpha

1.86512 6

0.21753

0.828

Variab le

Std. Error

tStatistic

Prob.

Rsquared

Adjusted Rsquared

Fstatistic

Prob(Fstatistic )

beta

0.1885

3.82901

0.000

0.2416

0.225207

14.661

0.0003

alpha

1.91403 4

0.32751

0.744

Variab le

Std. Error

tStatistic

Prob.

Rsquare d

Adjusted Rsquared

Fstatistic

Prob(Fstatistic )

beta

0.11836 8

5.80044

0

0.4224

0.409883

33.645

0.0000

alpha

1.20191 5

0.99790

0.323

Variab le

Std. Error

tStatistic

Prob.

Rsquared

Adjusted Rsquared

Fstatistic

Prob(Fstatistic )

beta

0.09307 7

5.32836

0

0.3816 49

0.368207

28.391 42

0.0000 03

alpha

0.94510 8

2.93896

0.005

Variab le

Std. Error

tStatistic

Prob.

Rsquared

Adjusted Rsquared

Fstatistic

Prob(Fstatistic )

beta

0.14311 7

5.35579

0

0.3840

0.370686

28.684

0.0000

alpha

1.45321 1

1.08241

0.284

Variab le

Std. Error

tStatistic

Prob.

Rsquared

Adjusted Rsquared

Fstatistic

Prob(Fstatistic )

emami

gillete

GSK

godfrey philips

godrej consumer

206

beta



ZENITH

ITC

0.12046 1

4.89764

0

0.3427

0.328446

23.986

0.0000

alpha

1.22316 5

2.00482

0.050

Variab le

Std. Error

tStatistic

Prob.

Rsquared

Adjusted Rsquared

Fstatistic

Prob(Fstatistic )

beta

0.09940 2

2.79599

0.007

0.1452

0.126679

7.8175

0.0075

alpha

1.00933 4

1.25466

0.215

Variab le

Std. Error

tStatistic

Prob.

Rsquared

Adjusted Rsquared

Fstatistic

Prob(Fstatistic )

beta

0.16647 4

1.99613

0.051

0.0797

0.05971

3.9845

0.0518

alpha

1.69037 7

0.05972

0.952

Std. Error

tStatistic

Prob.

Rsquared

Adjusted Rsquared

Fstatistic

Prob(Fstatistic )

beta

0.33529 9

1.22580

0.226

0.0316

0.01058

1.5025

0.2265

alpha

3.40463 4

0.99700

0.324

Std. Error

tStatistic

Prob.

Rsquared

Adjusted Rsquared

Fstatistic

Prob(Fstatistic )

beta

0.63433 9

1.44536

0.155

0.0434

0.022647

2.0890

0.1551

alpha

6.44108 8

0.10083

0.920

Variab le

Std. Error

tStatistic

Prob.

Rsquared

Adjusted Rsquared

Fstatistic

Prob(Fstatistic )

Variab Jyothi laboratori le al

Variab Kwality dairy Ltd. le

Marico

207

HUL

beta



ZENITH

Nestle

0.09589 6

4.59698

0

0.3147

0.299889

21.132

0.0000

alpha

0.97373

1.73074

0.090

Variab le

Std. Error

tStatistic

Prob.

Rsquared

Adjusted Rsquared

Fstatistic

Prob(Fstatistic )

beta

0.14668

10.1915

0

0.6930

0.686389

103.86

0

alpha

1.48939

2.05973

0.045

Variab le

Std. Error

tStatistic

Prob.

Rsquared

Adjusted Rsquared

Fstatistic

Prob(Fstatistic )

beta

0.07449 4

4.60726

0

0.3157

0.300875

21.226

0.0000

alpha

0.75641

2.82311

0.007

Std. Error

tStatistic

Prob.

Rsquared

Adjusted Rsquared

Fstatistic

Prob(Fstatistic )

Beta

0.09705 1

4.02427

0.000

0.2603

0.244309

16.194

0.0002

Alpha

0.98546 1

1.93017

0.059

Variab le

Std. Error

tStatistic

Prob.

Rsquared

Adjusted Rsquared

Fstatistic

Prob(Fstatistic )

beta

0.14815 2

5.11062

0

0.3621

0.348295

26.118

0.0000

alpha

1.50433 6

0.28354

0.778

Std. Error

tStatistic

Prob.

Rsquared

Adjusted Rsquared

Fstatistic

Prob(Fstatistic )

0.55874 5

1.74299 3

0.088

0.0619 52

0.04156

3.0380 26

0.0880 16

Procter & Variab le gamble

Radico Khaitan Ltd.

Rei Agro Variab le Ltd. beta

208

Mcleod Russel

beta



ZENITH

TATA Coffee

5.67350 2

1.29651

0.201

Variab le

Std. Error

tStatistic

Prob.

Rsquared

Adjusted Rsquared

Fstatistic

Prob(Fstatistic )

beta

0.18198 8

8.75128

0

0.6247

0.616593

76.585

0

alpha

1.84790 4

0.25946

0.796

Variab le

Std. Error

tStatistic

Prob.

Rsquared

Adjusted Rsquared

Fstatistic

Prob(Fstatistic )

beta

0.18836 3

4.36567

0.000

0.2929

0.27758

19.059

0.0000

alpha

1.91264 5

1.28592

0.204

Std. Error

tStatistic

Prob.

Rsquared

Adjusted Rsquared

Fstatistic

Prob(Fstatistic )

beta

0.47199 6

0.71484

0.478

0.0109

-.010514

0.5110

0.4783

alpha

4.79265 2

.003391

0.320

Variab le

Std. Error

tStatistic

Prob.

Rsquared

Adjusted Rsquared

Fstatistic

Prob(Fstatistic )

beta

0.17908 2

6.3850

0

0.4698

0.458333

40.769

0

alpha

1.81840 3

0.72627

0.471

Variab le

Std. Error

tStatistic

Prob.

Rsquared

Adjusted Rsquared

Fstatistic

Prob(Fstatistic )

beta

0.14047 7

6.41313

0

0.4720

0.460565

41.128

0

Variab Tata le Global Beverages

United Breweries

United Spirits

209

Soya industries Ltd.

alpha




alpha

1.42640 8

1.55207

0.127

Std. Error

tStatistic

Prob.

Rsquared

Adjusted Rsquared

Fstatistic

Prob(Fstatistic )

beta

0.12504 7

4.74711

0

0.3288

0.31422

22.535

0.0000

alpha

1.26973 4

1.98078

0.053

Variab le

Std. Error

tStatistic

Prob.

Rsquared

Adjusted Rsquared

Fstatistic

Prob(Fstatistic )

beta

0.16735 8

6.60563

0

0.4868

0.475648

43.634

0

alpha

1.69935 3

1.88768

0.065

Variab VST Industries le

Zydus Wellness

The computed t- statistics reveals a significance level of 10% at which the intercept value is very high.Additionally, low R-squared value implies variation in realized excessreturn is explained by CAPM.The value of Prob (F) is the probability that the null hypothesis for the full model is true. For all the FMCG companies the p (f-statistics) is less than .05 so we reject the null hypothesis and conclude that the regression equation have some validity in fitting the data

High value of R and R squared showed that how much the variation in the realized excess return is explained by the CAPM.For some companies like Agro Tech, Bata, Mcleodsoya, United Brewery, United Spirit, Zydus R and R squared values are better than the value of other individual assets like Colgate. The above results show that the CAPM model does not explain variations in realized excess return in some companies while for some other companies like Colgate, Reiagro ltd and

210

Beta which is the estimated coefficient of the model which signifies the CAPM model as the null hypothesis is β = 0 which is rejected as the p value for the regression equation is less than .05. So we reject the null hypothesis and accept the alternative hypothesis.


The result of the regression analysis of 27 companies in the FMCG sector confirms that the intercept is statistically significant. For all the 27 companies taken in the study uphold the theory of CAPM.CAPM theory says that the value of the Alfa which is the constant of the model has to be equal to zero. The null hypothesis for the Alfa was α = 0, as the p value for the t statistic is more than .05 so we accept the null hypothesis and reject the alternative hypothesis.


Dabur CAPM theory does not hold true.Inefficiency and volatility in emerging markets such as India may be the underlying reasons for this behavior. Similarly, we have taken the expected excess return based on the APT as the determinant of realized excess return to test the validityof the APT theory. The results are shown in the Table 2. TABLE 2 Dependent Variable: STOCK_RETURN Method: Least Squares Date: 03/17/12 Time: 21:18 Sample (adjusted): 2 13

Variable

Coefficient

Std. Error

t-Statistic

Prob.

MARKETRETURN

0.850497

0.175899

4.835131

0.0029

POPULATION

-2.111165

6.330896

-0.333470

0.7501

INFLATION

9.822786

7.118441

1.379907

0.2168

GDP

-0.950527

3.441187

-0.276221

0.7916

EXCHANGE

0.841940

1.041588

0.808324

0.4498

C

-1.427929

18.87207

-0.075664

0.9421

R-squared

0.878521

Mean dependent var

3.279208

Adjusted R-squared

0.777289

S.D. dependent var

37.04130

S.E. of regression

17.48065

Akaike info criterion

8.866919

Sum squared resid

1833.439

Schwarz criterion

9.109372

Log likelihood

-47.20151

Hannan-Quinn criter.

8.777154

F-statistic

8.678251

Durbin-Watson stat

2.419169

Prob(F-statistic)

0.010196


Included observations: 12 after adjustments

211

Results shows that t-statistics reveals significance at 10% level. P–value is high than .05


which leads to the conclusion of population, exchange rate, GDP and inflation are not having influence on the determination of the return of the FMCG Company’s stock. So the null hypothesis that population, exchange rate, GDP and inflation is equal to zero is rejected. The Null hypothesis that market return is the only factor which influences the return of FMCG Company’s stock is accepted as the p-statistics is less than .05. High value of R and R squared showed that how much the variation in the realized excess return is explained. So the results show that the APT model is not uphold by the empirical analysis and the result of APT model support the CAPM equation that it is only the market return which effect the return of the stock. We are extending our study by using the factor analysis to find out how much percentage of the variation is explained by the selected variables in the APT model. FACTOR ANALYSIS Factor analysis is a general name denoting a class of procedures primarily used for data reduction and summaisatioin. In research there may be a large number of variables, most of which are correlated and that must be reduced to a manageable level. Relationship between sets of many inter related variables are examined and represented in terms of a few underlined factors. In analysis of variance, multiple regression, and discriminant analysis, one variable is considered as the dependent variable and others as independent variables. However, no such distinction is made in factor analysis. Factor analysis is an interdependent technique in that entire set of interdependent relationships is examined. Mathematically, factor analysis is similar to multiple regression analysis where each variable is expressed as a linear combination of underlined factors. The factor analysis is expressed as: Xi = Ai1F1 + Ai2F2+ ………… AimFm + ViUi Where : Xi = ith standardized variable Aij = Standardised multiple regression coefficient of variable I on common factor j

Ui = unique factor for variable i m = number of common factors

212

Vi = standardized regression coefficient of variable i on unique factor i


F = common factor


INTERPRETATION AND ANALYSIS CORRELATION MATRIX market return

exchange rate inflation population gdpgrowth

Correlation market return

1.000

-.208

-.280

.090

.285

exchange rate

-.208

1.000

.151

.380

.024

inflation

-.280

.151

1.000

.749

.670

population

.090

.380

.749

1.000

.709

gdpgrowth

.285

.024

.670

.709

1.000

a. Determinant = .061

The correlation matrix states correlation among variables. To use factor analysis, correlation among variables must be significant and greater than 0.5. The above table shows that the correlation between population, inflation,and GDP growth rate and GDP growth rate and inflation is greater than .50 that shows significant correlation among different variables. This indicates use of this model is appropriate. KMO AND BARTLETT'S TEST Kaiser-Meyer-Olkin Measure of Sampling Adequacy. Bartlett's Test of Sphericity

.465

Approx. Chi-Square

23.812

Df

10

Sig.

.008

Initial Eigenvalues

Extraction Sums of Squared Loadings

Rotation Sums of Squared Loadings

% of % of % of Componen Varianc Cumulativ Varianc Cumulativ Varianc Cumulativ t Total e e% Total e e% Total e e% 1

2.49 0

49.809

49.809

2.49 0

49.809

49.809

2.46 1

49.214

49.214

213

TOTAL VARIANCE EXPLAINED


Formal statistic s are available to test the appropriateness of factor model like Bartlett's Test of sphericity is used to test null hypothesis that variables are uncorrelated in the population . Significance value of test less than 0.05 therefore we reject null hypothesis. This states factor is correlated and use of factor analysis model is appropriate.


2

1.32 7

26.532

76.342

3

.874

17.488

93.830

4

.207

4.138

97.968

5

.102

2.032

100.000

1.32 7

26.532

76.342

1.35 6

27.127

76.342

Extraction Method: Principal Component Analysis.

Once it has been determined that factor analysis is suitable for analyzing data, appropriate method to find significant variables must be selected. Principalcomponent analysis has been used that considers variations in data to determine minimum number of factors that will account for maximum variance in data. It is recommended that factors extracted should account for at least 60% of variance. As per the table above, about 76% of variations invariable are caused by variable1 and variable 2 i.e. market return and exchange rate. That means these two factors play significant role in determining return of stocks. Variationcaused by variable4 and variable 5 is minimal.

214

A scree plot is a plot of Eigen values against the number of factors in order of extraction. Shape of plot is used to determine the number of factors. After plotting Eigen values of Variables, we can say that eigenvalues of variable 1 and 2 is greater than eigenvalues of variable3, 4 and 5


This interpretationsupport APT model that major variations in stock return is caused by market variations.


COMPONENT MATRIX Component 1

2

market return

.883

exchange rate

-.596

Inflation

.884

Population

.934

gdpgrowth

.848

Component matrix divides the variables into 2 factors. Ist factor includes inflation, population growth rate and GDP growth rate. That means these three variables are highly correlated and can put to the under one factor named inflation factor. Factor 2 includes market return named as the market return.These two factors do 76% variation in the FMCG stock return. CONCLUSION

Market inefficiency and uncertain political/economic situation in the country appear to be major factors responsible for the inapplicability of these models on local scrips. Volatilemarket conditions result in unexpected changes in systematic risk due to which predictability of returns based on constant beta values tends to result in deviations of actual returns fromvalues determined through these models. Also it may be the case that stock prices are subject to manipulation by a small number of key players.

215

With respect to APT model, the study reflects that changes in GDP, inflation, exchange rate and population growth do not serve as valid determinants of returns on FMCG stocks. These results are generally in line with other studies conducted on listed companies in India and Pakistan while minor differences are observed when the same results are compared with those of similar studies conducted on stock exchanges of other developed and developing countries.


In this study, data of a sample of 27 FMCG companies listed on BSE was analyzed to determine whether the CAPM and APT models are valid determinants of the realized excess return on these companies. The study based on the monthly return of the 27 FMCG companies for the period 2008 to 2011. The regression analysis was done on the monthly return of these 27 companies for the testing the applicability of the CAPM.The results obtained provide credence to the linear structure of the CAPM equation being a good explanation of security returns. The CAPM’s prediction for the intercept is that it should be equal to zero and the slope should equal the excess returns on themarket portfolio. The results are upholding the CAPM for most of the companies taken into study.


LIMITATION OF STUDY Several limitations are inherent in the study. The sample size used for the study was quite limited. The models applied in the study are very static in nature. Also, they did not take into account company factors such as size (market capitalization) and book-to-market-value and qualitative factors such as government policies, industry lifecycle, political risk, and so on which have an impact on asset returns. The results of the study could also depend on the nature of capital markets in the study period, which was a boom period, and may not be generalisable to other periods. There is vast scope for the further study in this field, by bringing the other macro variable factors in the study. REFERENCES •

Black, F., Jensen M.C., Scholes, M.(1972),”The Capital Asset Pricing Model: Some Empirical Test. Studies in the Theory of Capital Markets”, Praeger Publishers, pp. 79-121

•

Davis, J. (1994), “The Cross-section of Realised Stock Pre-COMPUSTAT Evidence”, Journal of Finance, Vol. 49, Issue 5.

•

Fama, E.F. and French, K.R. (1992), “The Cross-section of Expected Stock returns”, Journal of Finance, Vol. 47, Issue 2.

•

Fama, E.F. and MacBeth, J.D. (1973), “Risk, Return and Equilibrium: Empirical Tests”, The Journal of Political Economy, Vol. 81, No. 3.

•

He, J. and Ng, L.K. (1994), “Economic Forces, Fundamental Variables and Equity returns”,Journal of Business, Vol. 67, No. 4.

•

Miles, D. and Timmermann, A. (1996), “Variation in Expected Stock Returns: Evidence on the Pricing of Equities from a Cross-section of UK Companies”, Economica, Vol. 63, Issue 251.

•

Markowitz, H. (1952), "Portfolio Selection," Journal of Finance 7.

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Markowitz, H. (1959), Portfolio Selection: Efficient Diversification of Investment, New York: John Wiley and Sons.

•

Trifan Alina Lucia(2009),” Testing of Capital Asset Pricing Model in Romanian Market”Annales Universitatis Apulensis Series Oeconomica,

•

Fama, E.F., and French, K.R. (1992), "The Cross-Section of Expected Stock Returns," Journal of Finance 47.

•

Fama, E.F., and French, K.R. (1995), "Size and Book-to-Market Factors in Earnings and Returns," Journal of Finance 50.

•

Fama, E.F., and French, K.R. (1996), "Multifactor Explanations of Asset Pricing Anomalies," Journal of Finance 51.


the

216

Returns:

ZENITH

Lintner, J. (1965), “The valuation of risk assets and the selection of risky investments in stock portfolios and capital budgets,” Review of Economics and Statistics, 47 (1)

•

Ross, S. A. (1976), "The Arbitrage Theory of Capital Asset Pricing," Journal of Economic Theory 13.

•

Ross, S. A. (1976), "Risk, Return, and Arbitrage." In Risk and Return in Finance, edited by Irwin Friend and James Bicksler, Cambridge, Mass.: Ballinger

217

•




APPRAISAL OF FINANCIAL PERFORMANCE OF URBAN CO-OPERATIVE BANKS OF WEST BENGAL DR. AMIT BASAK* *Assistant Professor & Head, Department of Commerce, Susil Kar College, West Bengal.

ABSTRACT Urban co-operative banks are one of the vital segments of the banking industry of the country. They essentially cater to the credit needs of persons of small means. These banks take active part in local communities and local development with a stronger commitment and social responsibilities. Urban co-operative banks are the best vehicles for taking banking to the doorsteps of common men, unbanked people in urban and semi- urban areas in particular. There were 1645 urban co-operative banks in the country at the end of March 31, 2011 with a total deposits and advances of Rs.212031 crore and Rs.136341 crore respectively. Statistical distribution of UCBs shows that around 80% of UCBs are concentrated in 5 states viz. Maharastra, Gujrat, Karnataka, Andhra Pradesh and Tamil Nadu. On the other hand, 46 UCBs are found functioning in West Bengal at the end of March, 2011 with a deposit of Rs.2161 crore and loans and advances of Rs.1611 crore

218

The study is based on secondary data, which have been colleted from the published annual report of the banks for the period from 2001-02 to 2010-11. This data have been analysed with the help of the statistical tools like ratios, percentages, averages, Correlation Coefficient(r), Multiple Correlation and Regression Analysis, Coefficient of Determination (R2), Linear Regression Equations, Test of Significance (such as „t‟ test, Chi-square test Sandler‟s „A‟ test) etc. ____________________________________________________________________________


Though some UCBs have shown credible performance in recent years, a large number of banks have shown discernible signs of weakness. The operational efficiency is unsatisfactory and characterised by low profitability, ever growing non-performing assets (NPA) and relatively low capital base. Their situation gradually worsened due to heavy overdue and non-collection of loans advanced by them. The large-scale sickness in the UCBs has shaken the public confidence in co-operative banks. In this context, the present research work makes an attempt to examine the working and financial performance of the urban co-operative banks of West Bengal. The objective of the study is to identify and analyse the trend, progress and problems of this sector and to throw light on the problems of swelling NPAs and to offer some meaningful suggestions for improving the efficiency and effectiveness in the operation of these banks.


I: INTRODUCTION

The serious scams in a number of UCBs also have brought a high drgree of discomfort among the stakeholders of UCBs. It is a fact that the functioning of the urban co-operative banks has come up for adverse criticism in recent years due to the collapse of a few urban co-operative banks in Maharastra, Gujrat, Karnataka and Andhra Pradesh. In West Bengal, things are not very much different from the national scenario. Though some UCBs (viz. Contai, Liluah, Raniganj, Durgapur, Shibpur, Baidyabati-Sheoraphuli, Nabapally, Nabagram, etc.) have shown creditable

219

Urban co-operative banks are one of the vital segments of the banking industry of the country. The urban co-operative credit movement started in India with the object of catering to the banking and credit requirements of the urban middle classes, eg. small trader or businessman, the artisan or factory workers, the salaried people with a limited fixed income in urban or semi urban areas. The spatial distribution of UCBs across the country is skewed, with significant concentration in southern and western region. Most of the UCBs are concentrated mainly in 5 states, viz. Maharashtra, Gujrat, Karnataka, Tamil Nadu and Andhra Pradesh. The operations of urban co-operative banks have expanded rapidly since 1966, when they were brought under the purview of the Banking Regulation Act, 1949.In 1966, there were about 1100 UCBs with deposits and advances of Rs 167 crore and Rs 153 crore respectively. As at the end of 1996, the number of banks increased to 1501 and their deposits and advances rose significantly to Rs 24161crore and Rs 17927 crore respectively. The UCBs continued to grow at a faster pace till 2003, when their number increased to 1941 and their deposits and advances to Rs 101546 crore and Rs 64880 crore respectively. Subsequently, the number of UCBs declined to 1872 in 2005 with total deposits of Rs 105017 crore and advances of Rs 66905 crore. Due to the mergers and consolidation, the numbers of banks have been squeezed and it was reduced to 1674 as on March 31, 2010 and which was further declined to 1645 in 2010-11.On the other hand, at the end of March 2011, 46 UCBs are found functioning in West Bengal with deposits of Rs.2161 crore and loans and advances of Rs.1622 crore. Out of these, 6 are Salary Earners Banks, 2 banks are Mahila Banks and 31 are Unit Bank (i.e. banks which function as head office cum branches). 25 banks are considered as Grade I, 11 banks fall under Grade II and 10 banks are treated as Grade III and IV banks.


Co-operative movement owes its origin to England, where a great philosopher, Robert Owen (1771-1858) gave the idea of “ self help through mutual help” to mitigate the sufferings of the exploited class of the society. The first ever effort towards the formation of a co-operative organisation was made by 28 flannel weavers, at Rochdale near Manchester in England in the year 1844.Urban co-operative movement of global horizon tasted the sweet of success following success of Urban Credit Institutions between 1855 and 1885, organised by Herman Schulze and Luigi Luzzatti of Germany and Italy respectively. Likewise, the origin of urban credit movement in India dates back to 5th Frbruary, 1889 when under the guidance of Shri Vithal Laxman Kavthekar, a Mutual Aid Society was formed by some middle class Maharastrian families in Baroda State. The co-operative movement in India gained momentum with the establishment of the Co-operative Credit Society Act, 1904. After the enactment of this act Primary Co-operative Credit Societies were set up in the urban areas called the Urban Co-operative Banks (UCBs) with the objective of promoting sustainable banking practices among the lower and middle-income strata of the urban population.


performance in the recent years, a large number of banks have shown discernible signs of weaknesses. The published accounts of these banks reveal that the amount of overdues is mounting up gradually both in absolute and relative terms, which is obviously a headache on the part of the authorities of any type of financial institution. It is, therefore, urgently needed to arrest this situation through improved monitoring and follow up. In this context measures for improving the overall health of urban co-operative banks are becoming pertinent. In the present study, an attempt has been made to assess the overall performance of urban co-operative banks of West Bengal. The paper is divided into five sections. In section I and II introduction and objectives of the study have been serialized. Section III contains the data and methodology. The analysis and interpretations are presented in section IV and section V is a concluding part wherein some remedial steps have been taken into consideration. II: OBJECTIVE OF THE STUDY 1. To analyse the trends in the progress of the urban co-operative banks of West Bengal and to find out the profitability position as well as different ranking of these banks. 2. To analyse the performance of this sector in mobilising deposits. 3. To identify the trends in the volume and direction of credit advanced by these banks. 4. To identify and analyse the problem of overdues in its various aspects and suggests measures for reducing the same. 5. To identify the problem of swelling NPAs and to examine whether urban co-operative banks have taken the initiative for keeping NPA under control and reduce NPA to the expected level so that bank does not fall in lower category. 6. To find out ways and means for improving the efficiency and effectiveness in the operations of urban co-operative banks of West Bengal.



NATURE OF DATA USED

. Mainly this study is based on secondary data and other information provided by different urban co-operative banks in their published annual reports.

220

Out of 46 UCBs, 14 from Grade I, 8 from Grade II and 7 from Grade III and IV banks have been selected at random , i.e. as a whole 29 out of 51 banks have been selected at random sampling basis for the purpose of our study. Thus, in the present study we have covered near about 57% of urban co-operative banks of West Bengal, which justifies the performances of banking of this sector under study.


III: RESEARH METHODOLOGY

ZENITH International Journal of Multidisciplinary Research Vol.2 Issue 12, December 2012, ISSN 2231 5780 

THE PERIOD OF STUDY

The present study relates to 10 years, starting from 2001-002 and ending on 2010-11. 

TOOLS USED

In the course of analysis of this study, various accounting and statistical tools have been used. Accounting tools include ratio analysis. The quantitative measurements of performance of urban co-operative banks have been made by the different ratios under five aspects: Capital Adequacy (long-term solvency), Asset Quality (non-performing assets), Management Capacity (employees‟ productivity), Earning Ability (profitability) and Liquidity in the light of CAMEL Rating. On the other hand, among statistical tools Arithmetic Mean (A.M.), Standard Deviation (S.D.), Coefficient of Variation (C.V.), Correlation Coefficient(r), Multiple Correlation and Regression Analysis, Coefficient of Determination (R2), Linear Regression Equations, Kendall‟s Coefficient of Concordance (W) and Test of Significance (such as „t‟ test, Sandler‟s „A‟ test) have been used. In this respect following formula have been used :  For Kendall‟s Coefficient of Concordance (W) S W=

; where k= Number of sets of rankings k2(N3-N)/12

N=Number of objects ranked Rj= sum of ranks; S=( Rj- Rj)2

 For Sandler‟s A-test, A=

Sum of squares of the differences Square of the sum of the differences

=D2/(D)2

 For Chi-square (2) Test

 Judging the Closeness of Association of Different Parameters Relating to Financial Performance of Urban Co-operative Banks by Kendall‟s Test In the present context, an effort has been made to assess the overall performance of urban co-operative banks more precisely by using a comprehensive test based on the sum of scores of separate individual ranking under the five criteria, viz Capital Adequacy (C), Assets Quality (A), Management Capacity (M), Earning Ability (E) and Liquidity (L). The various ratios under these five parameters of all 29 urban co-operative banks have been taken into account and average

221

IV: ANALYSIS AND INTERPRETATION


2 = (O-E)2/E ; where, O= Observed value and E= Expected value.


value of the period under study (i.e. ten year‟s data) have been computed and used for the purpose of analysis. In case of Capital Adequacy (i.e. combination of Capital to risk weighted assets, Share capital to working fund, Deposit to working fund, Net worth protection), Earning Ability (i.e. Net profit to total assets, Net profit to earning assets, Return on capital employed, Net interest margin, Diversification ratio) and Liquidity (i.e. Credit deposit ratio, Cash deposit ratio, Investment deposit ratio, Interest margin coverage ratio), a high value indicates relatively favourable position and ranking has been done in that order. On the other hand, a low Assets Quality (i.e. Gross NPAs to total loans, Net NPAs to net loans, Substandard assets to total loans, Doubtful assets to total loans, Loss assets to total loans) depicts a more favourable position and has been ranked accordingly. But in ranking the Management Capacity mixture of above two bases has been followed. Out of the six components of this parameter, Cost per employee, Administrative cost per employee, Finance cost per employee, Staff cost to total expenditure, a high value implies relatively adverse position and on contrary, a low value signifies relatively favourable position and ranking has been made in that order. But in case of remaining two ratios of Management Capacity i.e. Earning per employee and Business per employee, a high value indicates much healthy position and ranking has been done accordingly. Total rank has been computed by summing up the ranks under the above five criteria (i.e. CAMEL). Ultimate ranking has been done on the principle that the lower the point scored under total rank, much better is the financial position. Table I exhibits the ultimate rank of all banks, which has been worked out on the basis of these principles. TABLE I STATEMENT OF RANKING IN ORDER OF CAMEL (ON THE BASIS OF MEAN) Total Ultimate

C

A

M

E

Liluah Co-operative Bank Ltd

14

9

13

3 13.5 52.5

9

Shibpur Co-operative Bank Ltd

7

24

19.5

6

64.5

11

64

10

Baidyabati Sheoraphuli Co-operative Bank Ltd

15.5 10

27

L Ranks

8

1 10.5

Rank

Konnagar Samabay Bank Ltd

8

4

10.5

13

9

44.5

7

Nabagram People‟s Co-operative Bank Ltd

12

3

4

8

16

43

6

Hooghly Co-operative Credit Bank Ltd

6

7

2

7

5

27

3

Kalna Town Co-operative Bank Ltd

4

13

17

21 13.5 68.5

12

Durgapur Steel People‟s Co-operative Bank Ltd

5

2

10.5

2

2

1

20.5


Ranks

222

Urban Co-operative Banks

ZENITH

1.5 19.5

Raniganj Co-operative Bank Ltd

3

Dhakuria Co-operative Bank Ltd

11.5 2

35.5

5

3

4

3

14

1

12 15.5

29

16

27

99.5

21

The Nabapally Co-operative Bank Ltd

17

6

22

9 18.5 72.5

13

The Jaynagar-Mozilpur Co-operative Bank Ltd

18

29

8.5

10 10.5

76

15.5

Contai Co-operative Bank Ltd

25

14

22

14

12

87

17.5

15.5 26

17

11.5 28

98

20

87

17.5

Baltikuri Co-operative Bank Ltd

1

1

Bansabati Co-operative Bank Ltd

19

11

5.5

28 23.5

Samata Development Co-operative Bank Ltd

1.5

5

17

5

6

34.5

4

Budge Budge Nanghi Co-operative Bank Ltd

22.5 22

5.5

22

4

76

15.5

73.5

14

96

19

Union Co-operative Bank Ltd

9 15.5

8.5

Bankura Town Co-operative Bank Ltd

10

23

24.5 23.5 15

Bishnupur Town Co-operative Bank Ltd

20

27

22

20 23.5 112.5

26

22.5 21

15

27

20 105.5

25

Nabadwip Co-operative Bank Ltd

23.5 17

Ranaghat People‟s Co-operative Bank Ltd

26

12

13

26 23.5 100.5

22

Panihati Co-operative Bank Ltd

12

8

7

15

49

8

Bantra Co-operative Bank Ltd

28 19.5

28

25 18.5 119

27

Kasundia Co-operative Bank Ltd

29

28

Rahuta Union Co-operative Bank Ltd

24

25

13

Bally Co-operative Bank Ltd

21

18

26

18.5 21 104.5

24

The Boral Union Co-operative Bank Ltd

27

17

19.5

17 23.5 104

23

7

24.5 18.5 26 29

29

126

29

120

28

Source: Compiled and computed from Published Annual Reports of the UCBs under study. Now, Kendall‟s coefficient of concordance (W) has been computed as it is considered as an appropriate measure of studying the degree of association among several sets (i.e. more than

223

Durgapur Mahila Co-operative Bank Ltd




two, here it is done with respect to twenty-nine urban co-operative banks) of ranking. The Chisquare (2) test has been applied for testing the significance of such coefficients. The computed value of W is 0.5673 and 2 is 79.42. But the table value of 2 at 5% level for (29-1) i.e. 28 degree of freedom is 41.337. So, computed value of 2 is considerably higher than the table value and we can infer that W is significant at 5%. This does not support the null hypothesis of independence. Hence, we come to the conclusion that the above components i.e. Capital Adequacy (C), Assets Quality (A), Management Capacity (M), Earning Ability (E) and Liquidity (L) of the urban co-operative banks under study are closely associated.  RELATIONSHIP BETWEEN DIFFERENT PARAMETERS RELATING TO FINANCIAL PERFORMANCE OF URBAN CO-OPERATIVE BANKS AND PROFITABILITY BY SIMPLE CORRELATION In the present study, an attempt has been made to determine empirically the impact of different selected parameters on the performance of the urban co-operative banks. To measure the relationship between profitability and other important parameters of UCBs, like capital adequacy, assets quality, management capacity, liquidity, it is pertinent to study different performance indicators, namely, deposit to working fund (DTWF), non-performing assets to total loans (NPATL), business per employee (BPE) and credit deposit ratio (CDR) and the most popular profitability ratio, return on capital employed (ROCE). An attempt has been made to examine the impact of different performance parameters on the earning ability of the urban cooperative banks by computing Karl Pearson‟s Correlation Coefficient between the profitability measures and the selected ratios indicating financial performance of this sector. Simple correlation between different performance indicators and return on capital employed of urban cooperative banks has been tabulated in Table II. TABLE II SELECTED PARAMETERS RELATING TO FINANCIAL PERFORMANCE ANALYSIS OF UCBS BPE Year

ROCE (%)

DTWF (%)

NPATL (%)

CDR (%)

1.29

89.44

20.00

51.39

49.55

2002-03

1.55

86.93

19.98

59.30

48.43

2003-04

1.55

88.54

20.85

70.48

45.11

2004-05

1.25

85.58

21.43

82.12

42.45

2005-06

0.68

86.17

21.77

91.47

41.12

224

2001-02


(Rs in lakhs)


2006-07

1.13

88.54

21.67

106.92

38.49

2007-08

1.61

89.81

20.83

123.90

36.55

2008-09

1.47

89.25

21.82

133.29

37.05

2009-10

1.53

88.88

23.03

143.49

36.33

2010-11

1.03

88.32

23.28

149.72

38.53

Mean

1.31

88.15

21.47

101.21

41.36

r

-

0.495

-0.337

-0.027

0.043

t value of r

-

0.073

0.171

0.471

0.453

Source: Compiled and computed from Published Annual Reports of the UCBs under study. TableII shows that the correlation coefficient between DTWF and ROCE is 0.495, which implies that there is a moderate degree of positive association between these two variables. The value of correlation coefficient is not found to be significant at 5% level. Secondly, the correlation coefficient between NPATL and ROCE –0.337,which is not found to be significant at 5% level. It indicates a high degree of negative association between ROCE and NPA. There is a very low degree of negative association between BPE and ROCE. The correlation coefficient between these two variables has been computed at -0.027, which is not statistically significant at 5%. On the other hand, correlation coefficient between CDR and ROCE is 0.043. It indicates that there is a very low degree of positive association between credit deposit ratio and profitability and it is not found to be significant at 5% level.

ROCE= +1.DTWF +2.NPATL+3.BPE +4.CDR Where  is the value of intercept term and 1, 2, 3 and 4 are the partial regression coefficients. In this analysis, Return on capital employed (ROCE) has been taken as the dependent variable and Deposit to working fund (DTWF), Non-performing assets to total loans (NPATL), Business per employee (BPE) and Credit deposit ratio (CDR) have been used as the explanatory variables.

225

In this section, an attempt has been made to examine composite impact of Capital Adequacy, Assets Quality, Management Capacity and Liquidity on Profitability through the sophisticated statistical techniques. Accordingly, multiple correlation and multiple regression techniques have been applied to study the joint influence of the selected ratios indicating urban co-operative bank‟s financial position and performance on the profitability. The multiple correlation coefficients and the partial regression coefficients have been tested by „t‟ test. The regression model which has been fitted in this study, is given below:


 MULTIPLE REGRESSION ANALYSIS


TABLE III MULTIPLE CORRELATIONS AND MULTIPLE REGRESSION ANALYSIS OF UCBS Variable Constant

Regression Coefficient

Standard Error

t value

Significance

0.728

10.977

0.066

0.95 Multiple correlation coefficient(R)

DTWF

0.04837

0.097

0.499

0.639

NPATL

-0.261

0.231

-1.126

0.311

BPE

0.0091

0.013

0.727

0.50

CDR

0.02379

0.060

0.397

0.708

= 0.658 Coefficient of determination (R2)=0.433

Source: Compiled and computed from Published Annual Reports of the UCBs under study. It is observed that due to increase in DTWF by one unit, the ROCE increased by 0.048 units, which is not found significant at 5% level. When NPATL increased by one unit, the ROCE decreased by 0.261 units and that is not found to be significant at 5% level. The profitability of the banks improved by 0.0091 units due to one unit increase in BPE, which is not found significant at 5% level. However, when CDR increased by one unit, the ROCE enhanced by 0.02379 units, which is not statistically significant at 5% level.

226

In Table IV an effort has been made to estimate the value of ROCE by using the multiple regression equation of ROCE on DTWF, NPATL, BPE and CDR fitted in Table II. Further, the deviations between the actual ROCE and the estimated ROCE have been found out and these have been tested by Sandler‟s „A‟ Test.


The multiple correlation coefficients between the dependent variable ROCE and independent variables DTWF, NPATL, BPE and CDR taken together is 0.658. It indicates that the profitability was moderately influenced by DTWF, NPATL, BPE and CDR. It is also evident from the coefficient of determination (R2) that 43.3% of the variation in ROCE was accounted for by the joint variation in DTWF, NPATL, BPE and CDR.


TABLE IV ESTIMATION OF ROCE BY USING REGRESSION EQUATION ROCE= +1.DTWF +2.NPATL+3.BPE +4.CDR Actual ROCE (%)

Estimated ROCE(%)

Excess(+)/Shortage(-)

(O)

(E)

(O- E)

2001-02

1.29

1.48

-0.19

2002-03

1.55

1.41

0.14

2003-04

1.55

1.29

0.26

2004-05

1.25

1.05

0.20

2005-06

0.68

1.03

-0.35

2006-07

1.13

1.25

-0.12

2007-08

1.61

1.64

-0.03

2008-09

1.47

1.45

0.02

2009-10

1.53

1.19

0.34

2010-11

1.03

1.21

-0.18

Year

Source: Compiled and computed from Published Annual Reports of the UCBs under

227

Table IV discloses that in the year 2002-03, 2003-04,2004-05, 2008-09 and 2009-10 the actual ROCE was in excess than the estimated ROCE, whereas in all the other years under study there was shortage in ROCE. This Table also exhibits that the computed value of Sandler‟s „A‟ is 1.02, which is greater than the tabulated value (i.e.0.276) at 5% level of significance and hence it is not found to be significant at 5%. It implies the insignificant variation between the actual and anticipated financial performance of the urban co-operative banks. The net outcome of this analysis reveals that the financial performance of urban co-operative banks was much better influenced by its efficient management of Capital Adequacy, Assets Quality, Management Capacity and Liquidity.


study.


 FREQUENCY DISTRIBUTION OF URBAN CO-OPERATIVE BANKS IN TERMS OF RELATIVE SHARE OF SHARE CAPITAL TO WORKING FUND Table V depicts that out of 29 urban co-operative banks 22 banks (i.e. 75.86%) had share capital to working fund ratio “ below 5%”(on an average) during the period under study. TABLE V FREQUENCY DISTRIBUTION RELATING TO SHARE CAPITAL AS A PERCENTAGE OF WORKING FUND OF UCBS UCBs having share capital as percentage of working fund (on the basis of average)

No of UCBs

Up to 5%

22 (75.86%)

Above5% & up to 10%

5 (17.24%)

Above10%

2 (6.90%)

Total

29 (100%) Source: Compiled and computed from Published Annual Reports of the UCBs under

study. The number of UCBs having the relative share of share capital within the range of “above 5% and up to 10%” stood at 5 (17.24%) on an average. It is observed that only 6.90% banks (i.e. 2 out of 29) achieved this ratio in the range of “above 10%”.

228

It is found that out of 29 urban co-operative banks only 3 banks (10.34%) had relative share of gross NPA to total loans and advances“ below 10%”on an average. The number of UCBs having the percentage of gross NPA within the range of “above 10% and up to 20%” stood at 7 (24.14%) on an average. It is observed that 51.72% of banks (i.e. 15 out of 29) registered this ratio in the range of “ above 20% and up to 30%”. On the other hand, 4 banks had the share of gross NPA “ above 30%”. It is also apparent that as many as 18 banks having the relative share of gross NPA above the tolerance limit of 15% on an average throughout the period. The percentage of gross NPA to total loans and advances of the urban co-operative banks under study stood at 21.47% on an average.


 FREQUENCY DISTRIBUTION OF URBAN CO-OPERATIVE BANKS IN TERMS OF GROSS NPAS TO TOTAL LOANS AND ADVANCES


TABLE VI FREQUENCY DISTRIBUTION OF GROSS NPAS TO TOTAL LOANS AND ADVANCES OF UCBS Urban Co-operative Banks having Gross NPAs

No of UCBs(on the basis of average)

Up to 10%

3 (10.34%)

Above10% & up to 20%

7 (24.14%)

Above20%& up to 30%

15 (51.72%)

Above30%

4 (13.80%) Total

29 (100%)

Source: Compiled and computed from Published Annual Reports of the UCBs under study.  FREQUENCY DISTRIBUTION OF URBAN CO-OPERATIVE BANKS IN TERMS OF CREDIT DEPOSIT RATIO The frequency distribution of UCBs in terms of credit deposit ratio has been shown in Table VII. It is apparent that at the lower of the spectrum, 6.9% of the UCBs (i.e.2 out of 29) had a credit deposit ratio of “less than 20%”and at the top end only 2 banks registered this ratio of “above 60%”and account for only 6.9% of the total. Nearly 35% of the UCBs (10 out of 29) fell in the range of credit deposit ratio “ above 20% and up to 40%”. TABLE VII FREQUENCY DISTRIBUTION RELATING TO CREDIT DEPOSIT RATIO OF UCBS No of UCBs (on the basis of average)

Up to 20%

2 (6.90%)

Above 20% & up to 30%

6 (20.69%)


4 (13.79%)


10(34.48%)


5(17.24%)

Above 60%

2(6.90%) Total

29(100%)



UCBs having Credit Deposit Ratio

229

study


The number of UCBs having the credit deposit ratio within the range of “above 40% and up to 60%” stood at 15 (51.72%) on an average. The credit deposit ratio of the banks under study stood at 41.41% on an average, which is much lower than the desired C/D ratio of 60%.  FREQUENCY DISTRIBUTION OF URBAN CO-OPERATIVE BANKS IN TERMS OF DIVERSIFICATION RATIO Table VIII shows that out of 29 urban co-operative banks 12 banks (41.38%) registered diversification ratio (i.e. relative share of non-banking income as a percentage of total earning )of “up to 3%”. TABLE VIII FREQUENCY DISTRIBUTION RELATING TO DIVERSIFICATION RATIO OF UCBS UCBs having Diversification Ratio

No of UCBs (on the basis of average)

Up to 3%

12(41.38%)

Above 3% &Up to 5%

7 (24.14%)

Above5% & up to 10%

5(17.24%)

Above10%& up to 15%

4(13.79%)

Above 15%

1(3.45%) Total

29 (100%)


V: SUMMARY OF FINDINGS AND CONCLUSIONS The problems and weaknesses of urban co-operative banks, which are coming out from the analysis, can be summarised by the following way:

230

On the other hand, at the top end only 1 bank had a diversification ratio of above 15%, which accounted for 3.45% of the total. The number of UCBs having this ratio within the range of “above 3% and up to 5%” stood at 7 (24.14%) on an average. It is also found that more than 17% banks (i.e. 5 out of 29) registered relative share of non-banking income in the range of “above 5% and up to 10%” and only 4 banks attained this ratio within the range of “above 10% and up to 15%”, which represents 13.79% of total. The diversification ratio of the banks under study stood at 4.55% on an average. It implies that the income other than banking activities is inadequate.


study.


1. Although some urban co-operative banks (viz. Contai, Liluah, Raniganj, Durgapur, Shibpur, Baidyabati- Sheoraphuli, Nabapally, Nabagram, etc.) have shown creditable performance in the recent years, a large number of banks have shown discernible signs of weaknesses. The operational efficiency of these banks is unsatisfactory and characterised by low profitability, ever growing non-performing assets and relatively low capital base. There are as many as 18 UCBs having relative share of gross NPA above the tolerance limit of 15%. 2. Poor resource base is the main constraint of the urban co-operative banks. Relatively low capital base and less equity base due to non-participation of the members in financial activities and limited area of operation is becoming a permanent hindrance in the progress of this sector. 3. Poor profit position and burden of huge accumulated losses of several UCBs has threatened the very survival of these banks. 4. The huge amount of cost of management of this sector has adversely affected its profitability. Most of the UCBs indulge in overstaffing and as a result per capita business of each employee is very much low which is not at all feasible. 5. Most of the UCBs follow conservative credit policy. The credit deposit ratio of the banks is much lower than the desired C/D ratio of 60%. 6. The diversification ratio of the UCBs is very low, which is just over 4.5% on an average. It implies that the income other than banking activities is very insignificant. 7. Another problem, which vitiates co-operative movement, is the interference of the politicians in the organisation. Politically insulated environment prevailing in the UCBs at the management level is a hindrance of this sector. 8. Urban co-operative banks are suffering from the lack of professional management- most of the cases approach is very much casual.

11. In co-operative banks, there is lack of proper governance. The recent failure of a large number of urban co-operative banks in the state (viz, Bally Co-op Bank, Bantra Co-op Bank, Kasundia CB, Rahuta CB, Boral CB, Bhatpara Naihati CB, Baranagar CB etc) has threatened the very survival of this sector. As there is no formal system of corporate governance in co-operative banks, many banks have become the hot bed of political patronage, unscrupulous financial practice and gross mis-management.

231

10. In most of the cases, the efficiency of employees of this sector is below than that of commercial bank employees due to the defective recruitment policy and absence of qualitative training.


9. Many UCBs even now continue to follow age-old system and procedures, which are not conductive in the present technologically driven banking environment.


SUGGESTIONS On the basis of the above discussions I now offer the following suggestions for improving the efficiency and effectiveness in the operation of urban co-operative banks: 1. It is apparent that the mounting overdue has become a major problem of the urban co-operative banks and hence, it is urgently needed to arrest this situation through improved monitoring and follow up. The firm measures should be followed to make credit appraisal, documentation, disbursement, monitoring etc. 2. The UCBs need to prepare a comprehensive perspective plan for product diversification to maintain a competitive edge in the market. These can enhance their fee- based income through issue of Demand Drafts, Telegraphic Transfers, Account Maintenance Fee, Processing Fee, and Safe Deposit Locker Rents etc. The UBBs can collect and pay utility bills like telephone bill, electricity bill, corporation tax, municipality tax on behalf of the customers, which can be a good source of earning other income. It can also undertake insurance business on referral basis without risk participation. In return they are able to earn referral fees on the basis of premia collected. 3. The UCBs should take the initiative for opening “No Frills Account” to the vast sections of disadvanged and low-income group so as to ensure greater financial inclusion. 4. The UCBs can also go for such schemes for opening of saving bank and other accounts treated as low cost deposit so that deposit base as well as clientele base of the banks will take a remarkable shape.

7. It is strongly suggested that the UCBs should increase their credit deposit ratio and in this respect emphasize should be given on “House Building Loan”. The banks should go for more publicity and advertisement whereby they will let public know their marketing package of various attractive loans scheme. 8. All urban co-operative banks should come forward and participate in “Consortium Finance” jointly with West Bengal State Co-operative Bank. 9. All UCBs should come under one umbrella (i.e. core banking). The UCBs ought to seriously consider the ways of networking amongst themselves and aggregating

232

6. With a limited area of operation for so many decades together urban co-operative banks could not expand their business in another area in general. At this juncture, it should have Governmental support and Government should liberalise this area of operation for UCBs, so that they could increase their business at their will.


5. Mobilisation of resources from members of UCBs may be given higher importance and adequate freedom to raise resources from the market through issue of non-voting shares, bonds and debentures etc should be made effective.


their resources, so that they have the advantage of size while approaching the financial markets and dealing with larger entities. It is extremely necessary that joint efforts be made towards that, to create a single technological platform through electronic connectivity and networking which will reduce per capita cost and extend reach of banks like WBSCB, UCBs, DCCBs, units of WBSCARDB etc. 10. Urban co-operative banks, with their new-formed emphasis on prudential norms, need a high degree of professionalism in management. 11. The UCBs must be encouraged to take up “micro credit” in a big way. It must work as “Special Purpose Vehicle (SPV)” for Micro Finance for reducing poverty and helping the informal economy to flourish. 12. It would be prudent to adopt corporate governance in the field of urban co-operative banks. 13. The management of the banks should be very much cautious against weakness, which generally creeps in through the political interference directly or indirectly in the operations of the banks.

Basak,Dr.Amit(2010),Co-operative Bankks in India-Functioning and Reforms, New Century Publications, New Delhi.



Bedi, Raghubans.Dev(1969),Theory, History and Practice of Co-operation, Loyal Book Depot,Meerut.



Cole, G.D.H. (1944), A Century of Co-operation, George Allen and Unwin Ltd., London.



Dhingra, I.C. (1993), Theory and Practice of Rural Banking in India, Sultan Chad and Sons, New Delhi.



Dubhashi, P.R.(1988),Principles and Philosophy of Co-operation,Vaikunth Mehata National Institute of Co-operative Management,Puna.



Dutta.S.K.(1991),Co-operative Societies and Rural Development,Mittal Publications, New Delhi.



Dutta, Dr.Uttam and Basak, Amit (2008), Appraisal of Financial Performance of Urban Co- operative Banks- A Case Study, The Management Accountant, ICWAI, Vol.43,No.3, March.

233




REFERENCES

ZENITH

Gupta, R.P. (2003), An Appraisal of the Working of Schedule Urban Cooperative Banking in India-Problems and Prospects, The Cooperator, Vol.40.No.8, NCUI, New Delhi



Hough, E.M (1966), Co-operative Movement in India, Oxford University Press, New Delhi.



Iyengar, A.S.K. (1961), A study in the Co-operative Movement in India, Current Book House, Bombay.



Joshi,Vasant.C and Joshi, Vinay. V(2005), Managing Indian banks- The Challenges Ahead(Second Edition), Response Books Sage Publications India Pvt. Ltd,New Delhi.



Kamat, G.S. (1978), New Dimensions of Co-operative Management, Himalaya Publishing House, Bombay.



Krishna, D. (1998), Peace, Progress and Prosperity through Urban Co-operative Banks,



The Cooperator, Vol.36.No.5, NCUI, New Delhi.



Krishna, D. (2002), Future Strategies to Strengthen the Urban Co-operative Banks, The Cooperator, Vol.40.No.5, NCUI, New Delhi.



Kulkarni,K.R.(1955),Theory and Practice of Co-operation in India and Abroad, The Co-operator‟s Book Depot,Bombay.



Laud,G.M(1980),Co-operative Banking in India,Sage Publications,New Delhi.



Mathur, Dr.B.S(1973),Co-operation in India,Sahitya Bhawan,Agra.



Majumdar, N.A.(1996),Rural Credit – A Case of Benign Neglect, Urban Credit, Vol.18.No.4, NAFCUB,New Delhi



Nayak,Umesh Chandra and Roy,Ananta Kumar(1988),Co-operation and Co-operative Management,Kalyani Publishers,New Delhi.



Pitre,V.(2003),Urban Co-operative Banks- Issues and Prospects, Economic and Political Weekly, Vol.XXXVIII, No.15, April 12.



Roy, Durgadas (1982),Reorganition of Rural Credit in West Bengal Through the Cooperative Institutions During the Plan Period, West Bengal State Co-operative Union, Calcutta



Sarangi,Dr.Mrutyunjay and Selvaraju,Dr.R(2005),Structure,Management and NonAgricultural Credit Co-operatives in Tamil Nadu- A Socio-Economic Perspective, New Central Book House (P) Ltd.

234





ZENITH

Saxena,K.K(1973), Evolution of Co-operative Thoughts, Orient Longman,New Delhi.



Sinha, B.K. (1968), Co-operatives in India, National Co-operative Union of India, New Delhi.



Thirunarayanan,R.(1996),Co-operative Banking in India,Mittal Publications, New Delhi.

235






TESTING THE DAY OF THE WEEK EFFECT IN SOUTHEN MARKET DR. REKHA GUPTA* *Assistant Professor, Govt. P. G. College, Una, HP, India.

ABSTRACT The main focus of this study is to trace out the impact of the days of week effect on Southern stock market. For these purpose fourteen countries indices are chosen. Leven test, Robust test and independent student t- test are used for this purpose. Leven test statistics shows there are no differences in the volatility of county indices’ returns across the days of the week. Robust test and t test statistics shows that majority of countries have insignificant difference between mean return of days of the week. KEYWORDS: independent student t- test, Leven test, Robust test, and volatility. ____________________________________________________________________________

Thus, a number of studies have documented evidence in support of anomalous pattern of daily returns in the international and Indian stock markets. Some literature in this context indicates considerably higher returns on Friday and the lowest on Monday as compared to other days of the week in Indian stock market. Some studies deny its existence. These studies indicates that day of the week effect vanished after the introduction of rolling settlement. Day of the week effect is also documented for other stock markets around the world. Among them Jaffe and Westerfield (1985) investigate the weekend effect in four developed markets, namely Australia, Canada, Japan and U.K. The result indicates the existence of weekend effect in all countries studied. Contrary to previous studies of the U.S. market, the lowest mean returns for both Japanese and Australian stock markets were found to be on Tuesday. In India, impact of trading settlement system on the weekend effect was conducted by Amanulla and Thiripalraju (2001). They have found evidence to support weekend effect during the period of ban on carry-forward transactions. It also noticed consistent positive returns on Wednesday a phenomenon never been reported elsewhere. It is expected from an investor to look at the return of the stock while buying it. But there is also other condition that can’t underestimate is the volatility of the stock price. It is very important know if high volatility of stock price is related with high volatility for a given day. If investors could identify a certain pattern for the day; they could revise their position in the stock market to avoid high volatility in their portfolio. Kiymaz and Berument (2003) report that volatility varies by the day of the week for developed. Nath and Dalvi (2005) documented the impact of introduction of rolling settlement in India on the daily returns and noted the Monday and Fridays were critically significant trading days. It noticed that even after compulsory rolling settlement Friday continues to be the most significant trading day of the week for return propagation. Ramesh and Kiran (2007) has noticed day of the week effect was noticed in the


INTRODUCTION

236

I.


sense that Mondays and Fridays were critically significant trading days before introduction of the rolling settlement. On the whole, the study documented evidence on the subject that anomalous returns pattern on the Indian bourses has dissipated after the introduction of rolling settlement. Chander and Mehta (2007) also the studies of some structural changes in the market leading to or removing some anomalous pattern in the stock prices, are of interest to investors and analysts. The present study was conceptualized to scrutinize whether anomalous patterns yield abnormal return consistently for any specific day of the week even after introduction of the compulsory rolling settlement of Indian bourses. Three market series viz. BSE sensex, S&P CNX Nifty and S and P CNX 500 were observed on daily basis for ten years viz 1. Pre -rolling settlement period, April 1997- December 2001 and 2. Post rolling settlement period, January 2002- March 2007 to discern evidences in this regard. Contrary to developed capital markets, the results reported in this study documented lowest Friday returns in the pre- rolling settlement period as credible evidence for the weekend effect. The findings recorded for post -rolling settlement period were in harmony with those obtained elsewhere in the sense that Friday returns were highest and those on Monday were the lowest. It implied that arbitrage opportunities existed have disappeared consequent to the rolling settlement on the whole , the study noted stock markets moved more rationally and anomalous return pattern noted earlier could not sustain , in the past rolling settlement period. Satish and Sonal (2009) have examined three types of anomalies namely Monday Effect, Friday Effect and Day of the week effect. The data has been collected for the period from January 2007 to December 2008 for three indices: BSE-200, CNX-100 and CNX500. The results of this study show that the anomalies do not exist in the Indian stock market and this market can be considered as information ally efficient. It means that it is not possible to earn abnormal returns constantly that are not commensurate with the risk. Although the mean returns on Monday are negative whereas the mean returns on Friday are positive but t-test results conclude that there is insignificant difference between the returns on Monday and other week days.

The list of stock markets consists of fourteen countries. The name of all the sample countries and their respective stock indices are mentioned in appendix-I. Daily average equity price (Highest and Lowest price) indices of all the sample countries are obtained over a period of six years starting from April 2003 to March 2009. All the relevant data have been collected from national and international websites. Though the daily returns of most of the sample countries are matched by the calendar date, the trading sessions of the stock exchanges of those countries may not completely overlap across the market. III.

OBJECTIVES

The object of this study is to test the day of the week effect in Asian stock market. IV

HYPOTHESES

The present study aims to examine the day of week variation in stock returns and their volatility. In order to fulfil the objectives, following hypothesis is considered:


DATA

237

II.




There are no differences in the volatility of stock indices across the day of week; Ho: MON2= TUE2= WED2= THU2= FRI2 HA: MON2TUE2 WED2 THU2 FRI2 i2=variance of day of the week returns



There are no differences in the average return on stock indices across the day of the week ; Ho:

MON =

TUE =

HA:

MON 

TUE 

i=



WED 

THU = THU 

FRI

FRI

Average return of day of the week

The null hypothesis posits that specific day return has no difference with other days of the week. Ho: HA:

SPECIFIC DAY

=

SPECIFIC DAY i=

V

WED =



OTHER DAYS OF THE WEEK

OTHER DAYS OF THE WEEK

Average return of day of the week

METHODOLOGY

Average share price of each company is obtained as:



The daily return of the S&P CNX Nifty and companies are calculated as:

238




Following steps and methods are applied for this study:

ZENITH

Weekly returns of the year are calculated as:



Levene’s test is employed for testing the equality of the variance of daily returns across days of the week. The Levene statistic is distributed as statistic with degree of freedom.

The significance of w is tested against where is a quintile of the F test distribution, with and its degrees of freedom, and  is the chosen level of significance (usually 0.05 or 0.01). 

Robust test calculates the Brown-Forsythe statistic to test equality of group means. This statistic prefers the F statistic. It is tested that mean in stock return is equal across all five days of the week or does it exhibit statistically significant differences. It is calculated by using SPSS 17.

239






Independent t test is tested whether mean differences of different samples are significant or not. It is used for measure the mean difference between specific day returns and other day’s returns. To carry out the test, it calculates the statistic as follows:

VI

RESULT AND DISCUSSION

It can be cited from table-II that for 100 per cent of the country indices (2003-04), 92.85 per cent country indices (2004-05), 100 per cent country indices (2005-06) and 92.85 per cent country indices (2006-07), 100 per cent country indices (2007-08) and 100 per cent country indices (2008-09) the average return difference between the days of the week are insignificant. It depicts that all southern country indices have insignificant difference between mean return of days of the week. Thus it depicts that day of the week effect does not exist in southern stock market. Independent t test is also used for each day in which specific day is considered as one group and other days are considered as second group. The results of t test are presented in table-III, IV, V, VI and VII for Monday, Tuesday, Thursday and Friday. According to this study all southern country indices results that there is insignificant difference between specific day and other days in a week. It reveals that null hypothesis is accepted in all the years.


The Levene statistics are presented in table-I. A close look at table indicates that majority of country indices from volatility between days of the week return are insignificant, 100 per cent countries in 2004-05, 2006-07, 2007-08 and 2008-09. Only Hong Kong is significant at five per cent in 2003-04 and 2005-06. It reveals that for all southern country indices, days of the week returns volatility have insignificant variation.

240




In existing studies related to the different market index, daily investigation of the week has revealed that mean return on Friday is higher and on Monday is lower as compared to other days. All these studies are not based on recent year’s data. While this study done on the recent data, which investigates five types of anomalies namely Monday, Tuesday, Wednesday, Thursday and Friday. The results show that no specific day is important as compared to other days; there is insignificant difference between specific day and other days. It reveals that all days are equally important for investor in southern stock markets. V

CONCLUSION

On the basis of the objective of the study the following results have been drawn: 

The result shows that all country indices days of the week volatility have insignificant variation; and



It also depicts that all country indices have insignificant difference between mean return of days of the week.

241


Numerous empirical investigations related to international and Indian stock market, however, provide evidence of having day of the week effect anomalies in the capital market. Some studies deny these anomalies in Indian stock market after introduction of rolling settlement. This study suggests the investors that all days in week are equally important. No specific day is important for purchasing and selling the securities in southern stock market for investor.


TABLE-I LEVEN TEST FOR EQUALITY OF VARIANCE

Levene Statistic

Sig.

Levene Statistic

Sig.

2005-06 Levene Statistic

Sig.


Sig.


Sig.


Sig.

TURKEY

.376

.826

.544

.703

.702

.592

.501

.735

1.283

.277

.483

.748

PAKISTAN

1.003

.407

1.213

.306

1.665

.159

.400

.809

.365

.834

.419

.795

CHINA

1.622

.169

.585

.674

2.004

.094

.400

.808

1.602

.174

.572

.683

HONG KONG 2.495

.043

1.175

.322

2.577

.038

.720

.579

1.301

.270

1.261

.286

JAPAN

1.813

.131

3.733

.006

1.611

.172

1.036

.389

1.778

.134

.520

.721

KOREA

1.937

.105

1.818

.126

2.449

.047

1.339

.256

1.564

.184

.743

.564

RUSSIA

.621

.648

2.044

.089

.835

.504

.818

.515

1.269

.283

.620

.649

SHRI LANKA .209

.934

1.717

.147

.540

.706

1.291

.274

.942

.440

.705

.589

TAIWAN

2.100

.081

2.103

.081

1.108

.353

.480

.750

1.310

.267

.567

.687

INDONASIA

.141

.967

.317

.866

1.359

.249

.057

.994

.563

.690

.830

.508

MALASIA

1.014

.401

.277

.893

1.379

.242

1.632

.167

.888

.472

.566

.687

PHILLIPINES .376

.826

1.373

.244

.663

.618

.799

.527

1.279

.279

.491

.742

SINGAPUR

2.314

.058

1.325

.261

.944

.439

.167

.955

2.079

.084

.523

.719

INDIA (NSE)

.822

.512

3.914

.004

1.127

.345

.790

.533

1.231

.298

1.667

.159


Name of Countries

2004-05

242

2003-04


TABLE-II ROBUST TEST FOR EQUALITY OF MEAN 2003-04

2004-05

2005-06

2006-07

2007-08

2008-09

Name Of Countries Statistic

Sig.

Statistic

Sig.

Statistic

Sig.

Statistic

Sig.

Statistic

Sig.

.527

.716

1.320

.263

1.121

.347

1.404

.233

.243

.914

.591

.670

PAKISTAN

1.446

.219

.720

.579

.904

.463

1.494

.205

.501

.735

.938

.443

CHINA

1.055

.380

1.027

.394

.525

.718

1.329

.260

1.105

.355

.823

.511

HONG KONG

1.754

.139

.547

.702

.541

.706

1.826

.124

.795

.530

2.152

.075

JAPAN

1.090

.366

1.150

.334

.241

.915

1.341

.256

.676

.609

1.663

.159

KOREA

.248

.911

1.224

.301

.230

.921

1.628

.168

.845

.498

1.602

.174

RUSSIA

1.228

.300

1.127

.344

.644

.632

1.237

.296

.861

.488

.583

.675

SHRI LANKA

.410

.801

.539

.707

2.344

.056

4.534

.002

.834

.505

.963

.428

TAIWAN

.470

.758

1.605

.174

1.032

.391

.989

.414

.115

.977

2.608

.036

INDONASIA

.337

.853

3.163

.015

.391

.815

.464

.762

.380

.823

.904

.462

1.616

.171

.105

.981

.352

.842

1.266

.286

.464

.762

1.149

.334

PHILLIPINES

.708

.587

1.285

.277

.933

.446

4.455

.002

.602

.661

.806

.522

SINGAPUR

.288

.885

2.331

.057

.373

.827

1.930

.106

1.171

.324

.980

.419

INDIA (NSE)

.769

.547

.153

.961

.550

.699

1.454

.218

.461

.764

.654

.625

MALASIA


TURKEY

Sig.

243

Statistic


TABLE-III INDEPENDENT T TEST STATISTIC FOR TESTING HOMOGENEITY OF DIFFERENCE BETWEEN MONDAY AND DIFFERENT DAYS OF THE WEEK Name Of Countries

2003-04 t value

p Value

2004-05 t value

p Value

2005-06 t value

p Value

2006-07 t value

p Value

2007-08 t value

p Value

2008-09 t value

p Value

TURKEY

0.276937 0.782068 1.056239 0.291908 1.269458 0.205477 0.952352 0.341853

-0.59559 0.552004 0.198328 0.842955

PAKISTAN

0.825167 0.410113

-0.71458 0.475554

-1.13663 0.256846 0.594343 0.552867

-0.53173

0.59542

-0.32782

CHINA

-1.12917 0.259986

-0.6428 0.520974

-0.34064

-1.69555

0.09129

-0.10924 0.913102

HONG KONG

0.393168 0.694549

-0.38412 0.701233

JAPAN

1.163518 0.246987

-1.89972

KOREA

0.856202 0.392773

-1.35607 0.176356

RUSSIA

1.226696

0.22126

SHRI LANKA

1.138877

0.25604 0.272263 0.785673 1.101221 0.272009 2.679792 0.007924 1.033061 0.302704 0.337228 0.736274

TAIWAN

0.754488

0.45129 0.198728 0.842643 1.835456 0.067686 0.775866 0.438605

0.89491 0.371779

-1.24694 0.213654

-0.88344 0.377899 0.123064 0.902162

0.05871 0.422965 0.672712 0.177641 0.859158

-1.25281 0.211541 0.077343 0.938418 -0.05794 0.953846

-0.95859

-1.38467

0.1675

-0.48096 0.630996

-0.03569 0.971564 0.160149 0.872912 0.397795 0.691147 0.067465

0.94627

-0.76638 0.444256

-0.01337 0.989345 0.168205 0.866568

-0.51933 0.604026

-0.26546 0.790888 0.569913 0.569291 0.152441 0.878971

-0.16679

0.33877

-0.0162 0.987087

0.86768 0.804771 0.421798 www.zenithresearch.org.in

INDONASIA

0.73368

0.7434

MALASIA

1.693266 0.091747

-0.14422 0.885448

-0.25635 0.797904 0.833192 0.405579

-0.97975 0.328233 1.044697 0.297264

PHILLIPINES

0.896403 0.370947

-0.34936 0.727126 0.494995 0.621064 2.220482 0.027349

0.16908 0.865885 0.468862 0.639608

SINGAPUR

0.193021 0.847105

-1.97886 0.048948 1.048616 0.295397 1.112236 0.267149

-1.57924 0.115674

INDIA (NSE)

0.028344 0.977412

-0.01494 0.988095

-1.10394 0.270714 0.302259 0.762742

244

-1.07957 0.281608 1.017651 0.309993

-1.03154 0.303351


TABLE-IV INDEPENDENT T TEST STATISTIC FOR TESTING HOMOGENEITY OF DIFFERENCE BETWEEN TUESDAY AND DIFFERENT DAYS OF THE WEEK Name Of Countries

2003-04 t value

p Value

2004-05 t value

p Value

2005-06

2006-07 p Value

2007-08 t value

p Value

2008-09

t value

p Value

t value

t value

p Value

-1.26421

0.20735

-1.11702 0.265074

-0.59576 0.551891 0.791604 0.429367

-1.05527 0.292409

-0.50168 0.616367

TURKEY

0.612515 0.540779 1.195581 0.233026

PAKISTAN

1.010873 0.313117

-0.08232 0.934459 0.356313 0.721924

CHINA

-0.48853 0.625636

-1.28949 0.198484

HONG KONG

1.490932 0.137309 0.471555

JAPAN

0.705054 0.482178 1.139472 0.255681 0.231542 0.817098

KOREA

-0.41822 0.676178

RUSSIA

0.221276 0.825085 1.770576 0.077985 1.284777 0.200234

-0.86267 0.389209

SHRI LANKA

0.248077 0.804315

-0.12209 0.902937

-0.4311 0.666818

-0.66975

TAIWAN

0.004987 0.996025

-1.72503 0.085805

-0.46515 0.642249

-0.52979 0.596753 0.457298 0.647887 0.696223 0.486969

-0.6699 0.503599

-2.11301 0.035673

-0.50917

-0.35697 0.721441 0.085288 0.932107 0.183696 0.854417

MALASIA

-1.32048 0.187977

-0.55252 0.581106

PHILLIPINES

-1.20761 0.228402

-0.36202 0.717658

SINGAPUR

0.853808 0.394059

-0.74888 0.454648 0.114491 0.908943

-0.13074 0.896094 1.406592 0.160916 0.901748 0.368118

INDIA (NSE)

1.659038 0.098465

-0.69198 0.489684 1.043912 0.297761

-1.22571 0.221654 0.036382 0.971007

-0.75517 0.450897 0.716471 0.474409 1.586731 0.113912 0.755536 0.450684

0.63768 0.483446 0.629228

-0.32203 0.747713 1.078986

0.28172 1.277451 0.202748

0.72181 0.471132

-0.24851 0.803966 0.178387 0.858576

0.26147 0.793955 0.433328 0.665164 0.278959 0.780524

-0.20113 0.840772 1.162563 0.246196

0.76474 0.445193 -1.30586

0.50372 0.503864 0.614859 1.628493 0.104885

-0.07582 0.939625 1.162729 0.246139

0.19287 0.350828 0.726034

-1.29865 0.195387


0.61112

-0.02331 0.981425 0.865187 0.387858

-0.58033 0.562266 -0.33947

0.73456

-0.33106 0.740912

245

INDONASIA

-0.81946 0.413537


TABLE-V INDEPENDENT T TEST STATISTIC FOR TESTING HOMOGENEITY OF DIFFERENCE BETWEEN WEDNESDAY AND DIFFERENT DAYS OF THE WEEK

2004-05 t value p Value

TURKEY

0.39599 0.692466

-1.49844 0.135317 0.821684 0.412053

-1.44995 0.148347 0.301173 0.763539

PAKISTAN

-2.4574 0.014718

-0.44966 0.653359

-1.88595 0.060562

-0.06514 0.948122

-0.01929 0.984623 1.897107 0.059035

-0.30815 0.758243

CHINA

1.892763 0.059629 0.080642 0.935795


-1.04578 0.296733



HONG KONG

0.46517 0.642237 0.876142 0.381844

0.25791 0.796701

-1.88029 0.061306

-0.54554 0.585908

JAPAN

0.70712 0.480898 0.096016 0.923591

0.45266 0.651217

-0.73319 0.464174

-0.31378 0.753977

KOREA

-0.0434 0.965422

-0.48893 0.625337

0.43236 0.665866

-1.25578 0.210452

-0.01 0.992031

RUSSIA

1.143219 0.254202 0.589629 0.556031

-0.44678 0.655478

-1.43122 0.153711

-0.40249 0.687697

SHRI LANKA

-0.70564 0.481189

-0.92483

-0.85018 0.396151

-3.13891 0.001928

-1.72778 0.085425

TAIWAN

0.510628 0.610077

-0.44119 0.659472 0.029358 0.976604

-1.2577 0.209743

-0.16716 0.867394

INDONASIA

-0.33768 0.735917

-0.03451 0.972502

-1.14716 0.252492

-0.51392 0.607809

-1.61869

0.10685

-0.06054 0.951782

-0.52221

0.60202

-0.25602 0.798172

MALASIA

0.35606

-0.94141

0.34748

-1.4149 0.158438 0.200471 0.841282 0.355446 0.722574

PHILLIPINES

0.766753 0.443991

-1.46285 0.144832

-0.59257 0.554034

SINGAPUR

-0.13427 0.893299 0.688869 0.491555 0.027204 0.978319

-1.54052 0.124751 0.323103 0.746915

INDIA (NSE)

-0.78406 0.433806 0.333925 0.738756

-1.57375 0.117023 0.186051 0.852561

-0.40014 0.689469

2008-09 t value p Value 0.21179 0.83245 0.06976 0.944456 1.63958 0.10243 1.08426 0.279401 0.88293 0.378196 0.85759 0.392003 1.15108 0.250921 0.45539 0.649288 1.04486 0.297146 0.52155 0.602495 0.05989 0.952293 0.25868 0.796113 0.11769 0.906415 0.19655 0.844361 www.zenithresearch.org.in


246

Name Of Countries


TABLE-VI INDEPENDENT T TEST STATISTIC FOR TESTING HOMOGENEITY OF DIFFERENCE BETWEEN THURSDAY AND DIFFERENT DAYS OF THE WEEK Name Of Countries

2003-04 t value

p Value

2004-05 t value

p Value

2005-06 t value

p Value

t value

t value

p Value

2008-09 t value

p Value

-0.27899 0.780494 0.586818 0.557871

PAKISTAN

-0.28812 0.773511 1.702585 0.089924 1.357592

CHINA

-0.08203 0.934695 1.784374 0.075642 1.371972 0.171375

-0.43056 0.667182 0.463641 0.643332 0.236791 0.813025

HONG KONG

0.075376 0.939979 0.267843 0.789054

-0.81054 0.418448

-0.26388 0.792101

-1.066 0.288617 0.917671 0.359744

-0.86587 0.387458

-1.755 0.080568

KOREA

0.225442 0.821835 1.982648 0.048552

-0.93846 0.348949

RUSSIA

-1.44693 0.149352

-1.29226 0.197636 0.073637 0.941363

-1.24826 0.213207 0.173747

SHRI LANKA

-0.24973 0.803042 1.237684 0.217141

-2.05589 0.040979

-0.83953 0.402085

-0.19849 0.842843

-0.99556 0.320585

TAIWAN

-0.05722 0.954415 2.204601 0.028428

-1.24583 0.214052

-0.49889

0.61832

-0.02361 0.981184

2.48498 0.013644

INDONASIA

-0.34737 0.728631

3.2508 0.001323 0.688991 0.491521 0.636816

0.52487

-0.54672 0.585107

1.09368

MALASIA

-0.22737 0.820338 0.387309 0.698872

-0.98623 0.325034

-0.74794

0.45524

-0.15995 0.873063 1.174701 0.241335

PHILLIPINES

-0.15075 0.880298 0.204703

0.83798

-0.25739 0.797101

-3.72201 0.000248

0.0121 0.990357 1.346968 0.179305

SINGAPUR

-0.77367 0.439884 2.541462 0.011654

-0.49035 0.624328

-1.44537 0.149659

INDIA (NSE)

-0.14341 0.886093 0.466335 0.641439

-0.15819 0.874464 0.281613 0.778513

0.9729 0.311991 0.755314 0.522595 0.601734

0.17589 1.032992 0.302693 1.447453

0.8287 1.884341 0.060797

-0.95248 0.341857 2.349809

0.01963

-1.34812 0.178928 0.104955 0.916503 1.649013 0.100492

-0.87057

0.38491 1.417351

0.86222

0.27526 www.zenithresearch.org.in

TABLE-VII

-0.21661

0.14912 1.559183 0.120591

0.15771

-0.15661 0.875681 1.418833 0.157369

247

-0.86878 0.385892

-0.03401

p Value

2007-08

TURKEY

JAPAN

-1.24903 0.212841

2006-07


INDEPENDENT T TEST STATISTIC FOR TESTING HOMOGENEITY OF DIFFERENCE BETWEEN FRIDAY AND DIFFERENT DAYS OF THE WEEK Name Of Countries TURKEY PAKISTAN CHINA

2003-04 t value

p Value

-1.0222 0.307718 1.002703 0.317036

2004-05 t value

p Value

2005-06 t value

p Value

2006-07 t value

2007-08

p Value

t value

0.10082

0.56635 0.571676

-1.33281 0.183847

-0.44515 0.656606 0.480873 0.631052 1.209366 0.227764

-0.31327 0.754353

-0.38021 0.704206

-1.2965 0.196035 0.419525 0.675199 1.647073

-0.1952 0.845407 0.040253 0.967925

-0.2686 0.788469

-0.89994 0.369068 0.001167

p Value

2008-09 t value

p Value

0.99907 0.769171 0.442564

HONG KONG

-2.52389 0.012261

-1.23137 0.219409 0.956724 0.339686 2.261938 0.024616 0.950555 0.342824

JAPAN

-1.48449 0.140369

-0.26434 0.791749

KOREA

-0.59859 0.550036

-0.38311 0.701976 0.110733

RUSSIA

-1.11502 0.266069

-1.30702 0.192539 0.334513 0.738314

SHRI LANKA

-0.41882 0.675774

-0.46181 0.644667 2.162298 0.031679 1.829568 0.068668 0.330004

TAIWAN

-1.23013 0.219843

-0.24922 0.803403

INDONASIA

0.452782 0.651137

MALASIA

1.308782 0.191903 0.112058 0.910871 0.142947 0.886454

1.56351 0.119273 0.032786 0.973874

-1.62527

0.10548

PHILLIPINES

-0.32947 0.742094 1.913168 0.056932 1.538775 0.125199 1.599089 0.111156 1.239386 0.216488

-1.25893

0.20932

SINGAPUR

-0.12074 0.903996

-0.52896 0.597308

-1.17778 0.240082

INDIA (NSE)

-0.69533 0.487546

-0.13811 0.890279 0.576427 0.564962 1.465532 0.144244

-0.20895 0.834674 1.591464 0.112855 1.549996 0.122523 0.91192 2.116218 0.035387 1.555897 0.121114 1.79559 0.073861 1.576364 0.116316

-2.1743 0.030716 -0.64638

0.51868

-1.46919 0.143131 0.8818 0.378826 -0.51441 0.607497

-0.13675

0.89134 1.511786 0.131926 0.261816 0.793696

-2.14747 0.032767

-0.95337 0.341402 0.192781

0.8473 0.677316 0.498877 1.145912 0.253033

-1.58625 0.114081

0.05437 0.711647 0.477414 1.03715 0.300701

-1.27777 0.202682

248

-0.68505 0.493966 1.933347


0.74171


REFERENCES Mehdian Seyed and Perry, Mark J. (2001), “The Reversal of the Monday Effect: New Evidence from US Equity Markets”, Journal of Business Finance and Accounting, 28, pp. 1043-1064. Sharpe, Alexander and Bailey (2002), “Investment”, Prentice Hall of India Private Limited, New Delhi. Berument .H. and Kiymaz .H (2003), “The day of the Week Effect on Stock Market Volatility and Volume: International evidence”, Review of Financial Economic. Karmakar, Madhusudan and Chakraborty, Madhumita (2003), “Stock Market Anomalies: Evidence fron India”, Prajnan, 32.1, pp. 37-53. Nath, Golaka C. and Dalvi, Manoj (2005), “Day of the week effect and market efficiency – evidence from Indian equity market using high frequency data of national stock exchange”, The ICFAI Journal of Applied Finance, 11.2, pp.5-25. Ramesh and Kiran (2007), “Anomalous Market Movements and the Rolling Settlement: Empirical Evidence from Indian Stock Markets”, Vision, Vol.11, No. 4, pp. 31-44. Gupta, Amitabh (2006), “Day of the Week Effect on the Indian Stock Market: New Evidence”, The ICFAI Journal of Applied Finance, 12.8, pp. 5-14. Chander Ramesh and Kiran Mehta (2007), “Anomalous Market Movements and the Rolling Settlement: Stock Markets”, Vision- The Journal of Business perspective, Vol. ll.

249


Fisher.E.Donald and Jorden.J.Ronald (2009), “Security Analysis and Portfolio Management”, Prentice Hall of India Private Limited, New Delhi.


APPENDIX-I

NAME OF COUNTRIES

NAME OF EQUITY INDEX

Serial. No

NAME OF COUNTRIES

NAME OF EQUITY INDEX

1

TURKEY

ISE Istanbul National100

8

SHRI LANKA

CSE All Share

2

PAKISTAN

Karachi 100

9

TAIWAN

Taiwan Weighted

3

CHINA

Shanghai Composite

10

INDONASIA

Jakarta Composite

4

HONG KONG

Hang Seng

11

MALASIA

Kuala Lumpur Stock Exchange Composite

5

JAPAN

Nikkei 225 Nihon Keizai Shimbun Inc

12

PHILLIPINES

PSE Composite

6

KOREA

KOSPI Korea Composite Stock Price

13

SINGAPUR

Straits Times

7

RUSSIA

Moscow Times

14

INDIA

S&P CNX Nifty Fifty Calcutta

250

Serial. No


NAME OF EQUITY INDEX OF DIFFERENT COUNTRIES


ANALYSIS OF DEPOSITS AND THEIR MOBILISATION BY THE DINDIGUL DISTRICT CENTRAL CO-OPERATIVE BANK DR.S.RAJAMOHAN*; T.DHANABALAN** *Professor, Alagappa Institute of Management, Alagappa University, Karaikudi. **Ph.D. Scholar, Alagappa Institute of Management, Alagappa University, Karaikudi.

ABSTRACT Banks borrow and lend. They borrow money by accepting deposits from the public including members of the bank. Deposits are the life blood of banking institutions, including rural banks, as they constitute the chief source of funds to undertake lending operations. For profitable operation, the amount of deposits is very important and therefore even banks compete aggressively among themselves for mopping up deposits. The banks should introduce various deposits schemes so that these can attract variety of people to suit their taste. The bank has offered number of deposit schemes to the public which include fixed deposits, saving deposits, current deposits and the like. The mobilization of resources through deposits helps the bank to meet the growing demands from various sectors of the economy namely, agriculture, small scale industry, weaker section of the community and the like. “The quantum of deposits and growth rate in deposit figures show the extent of public confidence that a bank enjoys.” It is the size of the deposits that largely decides the lending potential of a bank. As a result of the green revolution the rural incomes are increasing and it is essential to mop up a portion thereof in the shape of deposits.

Central co-operative banks which have intimate contact with the rural areas are the best agency to mobilize deposits. In the words of All India Rural Credit Review Committee (1969) deposits not only form an important source of funds for the co-operative banks but help the banks immediately by enabling them to cushion their overdues and thereby maintain an uninterrupted flow of credit from the higher financing agencies. The expanding area and scale of co-operative activity and growing diversification have also made it necessary that co-operative banks should build up larger resources by way of deposits. Hence, this chapter analyses the deposits and their mobilization by the Dindigul District Centra Co-Operative Banks, institution–wise, type-wise

251

INTRODUCTION


KEYWORDS: Financial Performance, Deposit, Lending and Ratio. ___________________________________________________________________________


and source-wise. It compares also the deposits with the total deposits of all central co-operative banks in Tamil Nadu. STATEMENT OF THE PROBLEM The Dindigul District Central Co-operative Banks is functioning in the area of Dindigul. Here, About 80 per cent of the total population of Dindigul district lives in rural areas. The main aim of the bank is to develop the rural economy by providing rural credit for the purpose of development of agricultural and allied activities, village industries and other productive activities in rural areas. Moreover, the bank plays a very important role in developing the banking facilities in the rural areas of Dindigul district. Hence, an attempt has been made to evaluate the performance of DDCCBS with particular reference to deposit mobilization, lending and financial performance. REVIEW OF LITERATURE John Winfred in his study “Funds Management in District Central Co-operative Banks” analysed the cost and returns of funds to understand the margin available to a bank in its resource mobilisation and utilisation and whether the available margin was adequate to run a bank satisfactorily. For the purpose of analysis four DCCBs were selected from among 16 DCCBs in Tamil Nadu. The analysis was based on both primary and secondary sources of data.

B.U. Bhatt, R.L. Shiyani and N.M. Patel in their case study of Junagath District Central Cooperative Bank revealed the importance of credit-deposits ratio. Credit-Deposit ratio is an indication of the effective and efficient planning for utilization of deposits received. They studied the C.D. Ratio and it’s interring relationship with other components contributing towards credit which helped them to judge the credit and deposit performance of the bank. They concluded that effective C.D. ratio reflected the real picture of management of deposits and credit. B. Ramesh and M.R. Patil, in their article, “Performance Evaluation of Urban Co-operative Banks in India”, attempted to evaluate the growth performance of urban co-operative banks in

252

Venu Gopala Rao in his article, “Funds Management in Co-operative Banks – A need for new approach” emphasised the significance of funds management in co-operative banks in the context of Globalisation, Liberalisation and Privatisation of the financial system, consequent upon the implementation of Narasimham Committee recommendations. He pointed out that cooperative banks required a new approach for achieving higher productivity and profitability in the context of the opening of economy, application of prudential norms and deregulation of interest rates. The new approach should lay emphasis on moblisation of resources at reasonable cost and deployment of funds at required yield so as to enlarge the interest spread and profitability.


N. Narayansamy and S. Ramachandran in their study of performance evaluation of South Arcot district Central Co-operative Bank assessed the performance of the bank with reference to key indicators like membership, share capital, deposits, borrowings, advances, operating expenses, establishment expenses and profit for a period of ten years from 1974-75 to 1983-8419.


India for the period from 1974-75 to 1993-94. The performance indicators such as number of banks, membership share capital, reserves, deposits, borrowings, working capital, advances, overdues and the like were selected for their study. They used the linear and exponential growth models to estimate the linear and compound growth rates. Their study showed that the urban cooperative banks had made noteworthy progress in all their performance indicators. However, the borrowings and overdues had unfavourably augmented during the study period. Considering some deficiencies in the overall working of the urban co-operative banks, they suggested certain suitable policy measures for better performance. OBJECTIVES OF THE STUDY To assess the following objective the present study has made: 

To analyze the deposits made by the DDCCB.

METHODOLOGY AND DATA COLLECTION The present study evaluates the performance of DDCCBs from 1998-99 to 2007-08 with reference to deposit mobilisation, lending and recovery performance and financial performance. The study is based mainly on secondary data. The data collected for the study were analysed with the help of appropriate tools. COLLECTION OF DATA The secondary data used for the study were collected from Annual Reports of DDCCBSfor the period from 1998-99 to 2007-08, published and unpublished documents maintained by the Head Office of Dindigul District Central Co-operative Bank ANALYSIS AND DISCUSSION 1. SHARE OF DEPOSITS IN HEAD OFFICE AND BRANCHES

253


Since there is a stiff competition with other commercial banks, the bank takes many efforts to mobilize deposits from the public. Most of the Branches are situated in rural and semi-urban areas. They collect deposits from the rural people. Table 1 shows the deposits collected by the head office and the branches.


TABLE 1 SHARE OF DEPOSITS IN HEAD OFFICE AND BRANCHES TO TOTAL Head office

Branches

Years

Amount

Percentage to total

Amount

Percentage to total

Total deposits

1998-99

1924.11

21.17

7165.14

78.83

9089.25

1999-00

1931.41

19.85

7799.15

80.15

9730.56

2000-01

2416.61

21.61

8845.15

78.54

11261.76

2001-02

2661.11

18.89

11431.63

81.11

14091.74

2002-03

3552.1

20.89

13453.21

79.11

17005.31

2003-04

5121.41

23.73

16463.14

76.27

21584.55

2004-05

4469.22

20.46

19314.24

79.54

23783.46

2005-06

7162.41

21.83

25651.43

78.17

32813.84

2006-07

7143.16

17.52

33623.13

82.48

40766.29

2007-08

396.41

16.89

36391.41

83.11

43787.82

The deposits collected by the head office increased steadily from Rs.1924.11 lakhs during 199899 to Rs.7396.41 lakhs during 2007-08. The percentage of deposits mobilized by the head office to total deposits varied between 16.89 per cent and 23.73 per cent during the above period. The deposits of branch offices to total deposits varied between 76.27 per cent and 83.11 per cent during the above period. Total deposits also increased from Rs.9089.25 lakhs to Rs. 43787.82 lakhs during the study period.

254

It could be observed from Table1 that the amount of deposits collected by the head office showed a mixed trend. It is evident from Table 3.1 that the branch offices had played a vital role in mobilizing deposits. A major portion of deposits was collected through the branch offices. The amount of deposits collected by the branch offices had steadily increased from Rs.7165.14 lakhs during 1998-99 to Rs. 36391.41 lakhs during 2007-08.


Source: Data compiled from the Annual Reports of Dindigul District Central Co-operative Bank from 1998-99 to 2007-08.


2. VARIOUS TYPES OF DEPOSITS TO TOTAL DEPOSITS The details of various types of deposits collected by Dindigul District Centra Co-Operative Bank during the period from 1998-99 to 2007-08 are presented in Table 2. TABLE 2 SHARE OF VARIOUS TYPES OF DEPOSITS TO TOTAL DEPOSITS DURING THE PERIOD 1998-99 TO 2007-08 (RS. IN LAKHS) Fixed Deposits

Years

Amount

Percentage to total

Amount

Percentage to total

Amount

Percentage to total

Total

199899

2790.93

30.71

512.26

5.64

5786.06

61.99

9089.25

199900

2487.45

25.56

631.11

6.49

6612

67.95

9730.56

200001

2810.65

24.96

675.15

6.10

7775.96

69.05

11261.76

200102

3861.11

27.40

1001.15

7.10

9230.48

65.50

14092.74

200203

3761.21

22.12

1102.1

6.48

12142

71.40

17005.31

200304

4196.68

19.44

1164.56

5.40

16223.31

75.16

21584.55

200405

4508.16

18.56

1196.63

4.93

18578.67

76.51

24283.46

200506

5272.75

16.07

1402.16

4.27

26138.93

79.66

32813.84

200607

5534.91

13.58

1913.36

4.69

33318.02

81.73

40766.29

200708

6039.96

13.79

1889.69

4.32

35858.17

81.89

43787.82

Source: Data compiled from the Annual Reports of Dindigul District Central Co- operative Bank during the period 1998-99 to 2007-08.


Current Deposits

255

Savings Deposits


From Table 2 it could be seen that the percentage of savings deposits to total deposits showed a mixed trend and it varied between 18.56 per cent (4508.16 lakhs) and 30.71 per cent (2790.93 lakhs) during the study period. It also indicates that the proportionate share of current deposits to total deposits was between 4.27 per cent (Rs.1402.16 lakhs) and 6.49 per cent (Rs.631.11 lakhs). The percentage share of fixed deposits to total deposits varied between 61.99 per cent and 81.89 per cent over the study period. Fixed deposits constitute the major portion of total deposits. The amount of fixed deposits to total deposits increased steadily from Rs.5786.06 lakhs in 1998-99 to Rs.35858.17 lakhs in 2007-.08. In the case of current deposit, it also increased steadily from Rs.512.26 lakhs in 1998-99 to Rs.1889.69 lakhs in 2007-08. Savings deposits also increased steadily, except during the period 2002-03. 3. DEMAND AND TIME DEPOSITS The researcher has attempted to analyse the demand and time deposits collected by the Dindigul District Central Co-Operative Bank and the details are given in Table 3. TABLE 3 PROPORTION OF DEMAND AND TIME DEPOSITS TO TOTAL DEPOSIT DURING 1998-99 TO 2007-08

Amount

Percentage to total

Time Deposit Amount

Total

Percentage to total

Deposits

1998-99

3285.16

35.77

5804.09

64.23

9089.25

1999-00

3191.33

32.14

6539.23

67.86

9730.56

2000-01

3526

30.83

7735.76

69.17

11261.76

2001-02

4269.66

32.14

9823.08

67.86

14092.74

2002-03

4236.11

23.82

12769.2

76.18

17005.31

2003-04

4865.21

21.41

16769.2

78.59

21634.41

2004-05

5486.13

21.35

18797.33

78.65

24283.46

2005-06

6061.21

18.00

26752.63

82.00

32813.84

2006-07

6279.15

15.33

34487.14

84.67

40766.29

2007-08

7479.24

16.59

36308.58

83.41

43787.82

Source: Data compiled from the Annual Reports of Dindigul District Central Co-operative Bank during the period 1998-99 to 2007-08.


Demand Deposit

256

Year


Table 3.4 shows that the demand deposits of Dindigul District Central Co-operative Bank increased from Rs. 3285.16 lakhs in 1998-99 to 7479.24 lakhs in 2007-08. It shows an increasing trend except during the years 1999-2000 and 2002-03. The proportion of demand deposits to total deposits of Dindigul District Central Co-operative Bank ranged between 15.33 per cent and 35.77 per cent over the 10 year period. The time deposits of Dindigul District Central Cooperative Bank show an increasing trend for all the years during the study period. But the percentage of times deposits to total deposits shows a fluctuating trend ranging between 64.23 per cent in 1998-99 and 84.67 per cent in 2006-07 over the 10 year period. 4. PROPORTION INDIVIDUALS

OF

DEPOSITS

OF

CO-OPERATIVE

SOCIETIES

AND

The bank mobilizes deposits from member Co-operative Societies and Individuals. The deposits of Individuals include deposits from the general public, clubs, educational institutions, local bodies and corporate bodies. Table 3.10 shows the proportion of deposits of co-operative societies and individuals to total deposits. TABLE 4 PROPORTION OF DEPOSITS OF CO-OPERATIVE SOCIETIES AND INDIVIDUALS TO TOTAL DEPOSITS Deposits of individuals

Total deposits

1998-99

Amount 2969.35

% to total 32.67

Amount 6119.9

% to total 67.33

1999-00

2969.26

30.51

6761.3

69.49

9730.56

2000-01

3399.25

30.18

7862.51

69.82

11261.76

2001-02

4415.36

31.33

9677.38

68.67

14092.74

2002-03

3762.26

32.10

13243.05

67.90

17005.31

2003-04

5815.24

26.94

15769.31

73.06

21584.55

2004-05

6499.15

26.76

17784.31

73.24

24283.46

2005-06

11100.12

33.83

21713.72

66.17

32813.84

2006-07

12241.1

30.03

28525.19

69.97

40766.29

2007-08

14891.66

34.01

28896.16

65.99

43787.82

9089.25

Source: Data compiled from the Annual Reports of Dindigul District Central Co-operative Bank during the period 1998-99 to 2007-08.


co-operatives societies

257

Years


It is evident from Table 4 that the deposits of co-operative societies increased steadily from Rs.2969.35 lakhs in 1998-99 to Rs.14891.66 lakhs in 2007-08. The proportion of deposits of cooperative societies to Total deposits ranged between 26.94 per cent and 34.01 per cent over the study period. The deposits of Individuals also increased steadily from Rs.6119.90 lakhs to Rs.28896.16 lakhs during the period. The proportion of deposits of Individuals to total deposits of the bank varied between 65.99 per cent and 72.24 per cent during the period of 10 years. It is clear from Table 3.10 that the deposits of Individuals form the major portion of total deposits for all the years during the period of study. 5. ANALYSIS OF DEPOSITS OF CO-OPERATIVE SOCIETIES Affiliated societies are bound to deposit their surplus funds with the Dindigul District Central Co-Operative Banks. They deposit their funds either with the branches of the bank nearer to them or at the head office of the bank. Table 3.13 indicates the position of deposits of cooperative societies kept in head office and branch offices of the Dindigul District Central CoOperative Banks. TABLE 5

Head Office Amount % to total 996.25 33.53

Branch Amount % to total 1975.11 66.47

1999-00

916.21

30.38

2099.65

69.62

Total 2971.36 deposits 3015.86

2000-01

1249.24

35.85

2235.1

64.15

3484.34

2001-02

1639.24

38.61

2499.61

61.39

4138.85

2002-03

2371.11

46.13

2769.15

53.87

5140.26

2003-04

2425.15

41.03

3486.11

58.97

5911.26

2004-05

2761.41

40.75

4015.16

59.25

6776.57

2005-06

4339.61

41.65

6079.21

58.35

10418.82

2006-07

4061.13

34.06

7861.24

65.94

11922.37

2007-08

4629.15

32.09

9796.14

67.91

14425.29

1998-99

Source: Data compiled from the Annual Reports of Dindigul District Central Co-operative Bank from 1998-99 to 2007-08. It is clear from Table 5 that the deposits of co-operative societies in the head office were Rs. 996.25 lakhs in 1998-99 which decreased to Rs. 916.21 lakhs in 1999-2000. Thereafter the deposits increased from Rs. 1249.24 lakhs in 2000-01 to Rs. 4339.61 lakhs in 2005-06. Then it decreased to Rs. 4061.13 lakhs in the year 2006-07 and increased to Rs. 4629.15 lakhs in the year 2007-08. The percentage of deposits of co-operative societies in the head office to total

258

Years


DEPOSITS OF CO-OPERATIVE SOCIETIES IN HEAD OFFICE AND BRANCHES


deposits varied between 30.38 per cent and 46.13 per cent during the above period. The amount deposited by co-operative societies in branch offices increased steadily from Rs.1975.11 lakhs in 1998-99 to Rs.9796.14 lakhs in 2007-08. The percentage of deposits of co-operative societies to total deposits kept in the branches showed a mixed trend varying between 53.87 per cent and 69.62 per cent during the above period. CONCLUSION In the present study researcher has analyzed the mobilization of deposits in terms of institutionwise deposits, type-wise deposits and source-wise deposits. It is clear from the analysis that nearly 80 per cent of the total deposits were collected through branch offices of the bank. It was found that nearly 65 to 83 per cent of fixed deposits dominate the total deposits followed by savings deposits and current deposits during the study period. Nearly three-fourths of the fixed deposits and savings deposits were held by individuals. REFERENCES 1. John Winfred, “Funds Management in DCCBS, Cost and Return Analysis”, Indian Cooperative Review, Vol. XXV, No. 3, pp. 235-242. 2. N. Narayanasamy, and S. Ramachandran, “A Case Study of the South Arcot District Central Co-operative Bank”, Indian Co-operative Review, Vol. XXIV, No.4, pp. 335-344. 3. Y. Venu Gopala Rao, “Funds Management in Co-operative Banks. A New Approach”, Tamil Nadu Journal of Co-operation, July 2001, pp. 35-39. 4. B.U. Bhatt, R.L. Shiyani and N.M. Patel, “A Case Study of Junaganth District Central Co-operative Bank”, Indian Co-operative Review, Vol. XXVI, No.4, pp. 306-311. 5. B. Ramesh and M.R. Patel, “Performance Evaluation of Urban Co-operative Banks in India”, Asian Economic Review, Vol. 41, No.2, August 1999, pp. 323-330.

8. Kulandaisamy, V., Co-operative Management, Arudra Academy Publishers, Coimbatore, 2002. 9.

Laud, G.M., Co-operative Banking in India, Bombay, The Co-operatives Book Depot, 1956.

10. Maheswari, S.N., Management Accounting and Financial Central, Sultan Chand & Sons, New Delhi, 1995.

259

7. Kothari, C.R., Research Methodology Methods and Techniques, Viswa Prakasam, New Delhi, 2000.


6. Kamat, G.S., New Dimensions of Co-operative Management, Himalaya Publishing House, Mumbai, 2001.


ANALYTICAL STUDY OF TRADITIONAL WIRE BASED COMMUNICATION SYSTEM AND WIRELESS COMUNICATION SYSTEM MS. SAPNA TYAGI* *Student, Mewar University, Chittorgarh, Rajasthan.

ABSTRACT The present paper is based on the comparison between Wire Based Communication Network and Wireless Communication Network. With this objective, we first study both the networks afterwards we compare both with pros and cons of each type of communication network. The objective is to identify the advantages and disadvantages customers face to acquire and maintain wire communication and wireless communication and to find out the strengths and weaknesses of WIRELESS COMMUNICATION over WIREBASED COMMUNICATION. This paper is divided into five sections: - first section is based on introduction second section is based on traditional wire based communication system third section is based on wireless communication system fourth section is based on comparison of both and last section is based on conclusion.

I.

INTRODUCTION

Computer Network is an interconnection of computers for sharing of data and network resources. A network is a group of nodes logically connected for the sharing of information among them self. With the evolution of Internet, the networking technology has not been just confined to resource sharing but has boomed in the area of cellular and mobile communication as well. Rapid development in the field of very large scale integration of complex circuits on to a smaller chip has led to the evolution of high-speed computer networks. . Based on the medium used for

260

KEYWORDS: Network, Radio Waves, wire based communication, wireless communication, Wireless Area, Wi-Fi. ____________________________________________________________________________


After analyzing it is concluded that the wireless communication network is growing day by day and it is considered for fast service and high network, less formalities, more facilities etc and wire communication is considered for safety, trust and portability. Wireless communication network system has the disadvantage of networking issues, roaming, cost etc and the wire communication network has the disadvantage of high cost and non-portability. Wireless devices have been gaining popularity in recent years. Cellular phones and other wireless communication devices have driven demand for new wireless technology. While traditional wire solutions provide a sense or reliability, convenience has become a large part of consumers needs.


communication:- the network is classified into two types: They are wire network and wireless network. Wire networks use coaxial cable, twist pair or fiber optic cable for establishing connection between the nodes to share information. The traditional wire transmission medium poses constraints like mobility and extensive cabling. But wireless communication is a flexible data communication system implemented as an extension to or as an alternative for wire communication. Wireless devices have been gaining popularity in recent years. Cellular phones and other wireless communication devices have driven demand for new wireless technology. While traditional wire solutions provide a sense or reliability, convenience has become a large part of consumers needs. We now have everything from blackberry units, to wi-fi enabled phones. However, marketing and media has played a large role in the consumer‟s perspective of wireless devices. The information below is factual, and provides a non-biased evaluation of current wire and wireless technology. Wireless network uses frequency for transmission. The infrastructure network are also known as Cellular network. On the other hand, with wireless communication we refer to any kind of communication which does not use wires, electrical conductors or any other type of solid medium. Again, the distance can vary from very short to very long and some typical examples of wireless communication are television, GPS receivers and remote control units for home appliances. II.

WIRE COMMUNICATION

Internet access from desktop computer systems is also a common example of modern wire communications. In fact, telephone service providers often utilize the same wiring to provide both high speed Internet solutions and basic telephone services to residential and business customers. Depending on the nature of the connection, this may require using wiring and cables that have a higher capacity than standard wires. Some system designs need nothing more than the addition of filtering devices that effectively split the signal to allow a single outlet to provide connectivity to both the audio phone network and the Internet.

261

A wire communication is a type of communications in which messages are transmitted along wires by means of electrical signals; a type of telecommunication. The messages may be voice transmissions received by listening (telephone communications), or they may be transmitted and received by means of equipment that records and reproduces the messages in the form of arbitrary symbols or letters and numbers (telegraph communications and data transmission). Messages may also be in the form of fixed images, such as photographs, drawings, and illustrations (facsimile communications), moving images (television), or the image and speech of subscribers (video telephone). Examples include telephone networks, television or Internet access and fiber-optic communication


Wire communication generally refers to the transmission of data over a wire-based communication technology. A wire communication system is based on several modules, enabling everything from Protocol management to cable access.


Cable television is also classified as wire communications. Cable is run into each home and connected to one or more television sets. The same cable is connected with the cable network, making it possible to activate the connection and allow both audio and visual transmissions to be received. This is in contrast to traditional broadcasts that rely on over the air transmissions that must be picked up by a receiver and converted into sound and images that the reception device can process. HISTORY OF WIRE COMMUNICATION Wire communication technology refers to the transmission of information over a wire-based communication network that has significantly developed over the last 130 years. The telephone as a type of wire communication was invented by Alexander Graham Bell in the year 1876, which caused a telecommunication revolution (Telephone Tribute, N.D.). The wires are taken to mean the infrastructure needed to transmit signals and data from one place to another place. TYPE OF WIRE COMMUNICATION

The first type is twisted-pair wire, which is a copper wire that connects people's computers to the telephone line. The wires in Twisted Pair cabling are twisted together in pairs. Twisted Pair cables are most effectively used in systems that use a balanced line method of transmission. So called because two insulated copper wires are twisted around each other in order to reduce crosstalk or electromagnetic induction between pairs of wires. Due to the twisted-pair wire being made of copper it is considered to be the least expensive infrastructure while the rate of information transfer is relatively slow in comparison to other wires.



The second type is coaxial cables, including 2 physical channels. Coaxial cable is very common & widely used commutation media. For example TV wire is usually coaxial. The actual data travels through the center conductor in the cable. The inside channel carries information, surrounded by outer channel, both running along the same axis. Coaxial cables are mainly used for transmitting TV signals and for internet connection. Coaxial cables can carry relatively more information than twisted-pair wires due to coaxial cables suffering less interference.



The last type is optical fiber, which has become one of the most advanced technologies for transmitting information. Optical fiber refers to the infrastructure and the technology associated with the information transfer as light impulses in a glass fiber. Fiber optic cable uses electrical signals to transmit data. It uses light. In fiber optic cable light only moves in one direction for two way communication to take place a second connection must be made between the two devices. Optical fibers can carry much more information than ordinary copper wires and are less prone to interference. As a result, most telephone companies use optical fiber for long distance communications. Optical fiber is also the most popular trend currently on wire communication. All the three types of wire

262




There are three types of wires that are used in wire communication.


communications have the same characteristics. They have high quality signals, wide bands and they do not suffer interference easily, however, their mobility is very limited. APPLICATION OF WIRE COMMUNICATION 

Wire telephone



Cable TV



Wire computer networks

III.

WIRELESS COMMUNICATION

Wireless networking is used to meet many needs. Perhaps the most common use is to connect laptop users who travel from location to location. Another common use is for mobile networks that connect via satellite. Wireless communication means transmitting signals and data without cables using electromagnetic waves. The principles of wireless communication are that signals are amplified first, then they are emitted by the emitting terminal, finally they are received by the received terminal and the data can be accessed. Wireless communication also has many types including Bluetooth, mobile communications and Wi-Fi .

To span a distance beyond the capabilities of typical cabling,



To provide a backup communications link in case of normal network failure,



To link portable or temporary workstations,



To overcome situations where normal cabling is difficult or financially impractical, or



To remotely connect mobile users or networks.



Wireless telecommunications can be divided into two broad categories: mobile communications and fixed wireless communications. The mobile communications market requires mobility or non-tethered communications. The goal of mobility is anytime, anywhere communications. Mobile communications technology must be able to allow roaming - the ability to provide service to a mobile phone users while outside their home system. On the other hand, fixed wireless is simply an alternative to wire communications.

HISTORY OF WIRELESS COMMUNICATION In the year 1895, Guglielmo Marconi opened the way for modern wireless communication by transmitting Morse code over a long distance using electromagnetic waves. From then on,

263




A wireless transmission method is a logical choice to network a LAN segment that must frequently change locations. The following situations justify the use of wireless technology:


wireless communication has significantly developed into an important element of modern society. The first public mobile phone service was the Mobile Telephone System (MTS) introduced in the United States in 1946, when FCC granted a license to AT&T. TYPES OF WIRELESS COMMUNICATION There are four types of medium that are used in wireless communication. The first type is Radio waves are used for multicast communications, such as radio and television, and paging systems. They can penetrate through walls.Electromagnetic wave ranging in frequencies between 3 KHz and 1GHz are normally called radio waves. Radio waves are unidirectional when an antenna transmits radio waves they are propagated in all directions. A sending antenna can send waves that can be received by any receiving antenna. Radio waves particularly those waves that propagate in sky mode, can travel long distances. This makes radio waves a good candidate for long-distance broadcasting such as AM radio. It is an advantage because; an AM radio can receive signals inside a building. It is the disadvantage because we cannot isolate a communication to first inside or outside a building.

On the other hand microwaves propagation is line-of-sight. Since the towers with the mounted antennas needs to be in direct sight of each other, towers that are for apart need to he very tall, the curvature of the earth as well as other blocking obstacles do not allow two short towers to communicate using microwaves, Repeaters are often needed for long distance communication

264

Electromagnetic waves having frequencies between I and 300 GFL are called microwaves. Microwaves are used for unicast communication such as cellular telephones, satellite networks, and wireless LANs. Higher frequency ranges cannot penetrate walls. Microwaves are unidirectional, when an antenna transmits microwaves they can be narrowly focused. This means that the sending and receiving antennas need to be aligned. A pair of antennas can be aligned without interfering with another pair of aligned antennas. Use directional antennas -point to point line of sight communications.


MICROWAVES


very high frequency microwaves cannot penetrate walls. Parabolic dish antenna and horn antenna are used for this means of transmission.

INFRARED Infrared signals can be used for short-range communication in a closed area using line-of-sight propagation. Infrared signals with frequencies ranges from 300 GHz to 400 1Hz can be used for short range communication. Infrared signals, having high frequencies, cannot penetrate walls. This helps to prevent interference between one system and another. In this one room cannot be affected by the infrared waves in another room. So this will transfer digital data with a very high frequency. There are some manufacturers provide a special part called the IrDA port that allows a wireless keyboard to communicate with a PC.

Cellular Systems(1G, 2G, 2.5G (GPRS), 3G, B3G)



Satellite Systems



Paging Systems



Cordless Phone



Bluetooth

ADVANGE AND DISADVANTGE WIRE TECHNOLOGY Wire technology has been around for ages. It first became popular in the early 1900's with the introduction of the telephone network.

265




APPLICATION OF WIRELESS COMMUNICATION


ADVANTAGE For the most part, wire technology is very reliable. Compared to wireless solutions, wire is very cheap. The equipment is generally cheaper, as well as the cost of maintenance. Generally, copper wiring has a very long life expectancy. The QoS is excellent because wire connections eliminates the need for establishing an end-to-end connection every time. Speed is also a huge advantage of using wire connections. Using a group of wires (like a telephone or Ethernet cable) allows each conductor to handle a certain amount of information. DISADVANTAGE On the negative side, wire connections are not always realistic. Some rural areas are still not wire for broadband Internet connections. This forces users to subscribe to satellite access. Ethernet cables can run a maximum of 100 meters before the signal needs to be boosted. This can cause problems if you don't have an environment that allows this luxury. Remember that the longer the cable is, the more signal loss occurs and the signal travels down the wire. However, the use of such technology usually comes at a significantly higher price. WIRELESS TECHNOLOGY Wireless isn't really a new technology. Wireless signals were fist used in transmitting AM and FM to television and radios in the early 1950's. The military has been using "line of sight" microwave towers for decades. Everyone knows the most common wireless technology: cellular phones. However, this technology has several problems ADVANTAGE

DISADVANTAGE On the negative side, wireless technology suffers easily from interference. Other source of EM (electro-magnetic radiation) can cause problems for wireless signals. While wire technologies suffer from this as well, wireless signals are affected more frequently. Another down-side to wifi is the price. High-end wireless equipment comes with a serious price tag. You may have trouble with signal strength from out-door antennas that may be adversely affected by

266

The range of wireless technology can be impressive. While the equipment you use may break the signals themselves never break. In comparison to wireless eventually getting old or corroded, this is a great advantage.


On the pro side, wireless technology is very convenient. You do not have to worry about running wires in tight places, or obtaining low-voltage permits.


temperature or humidity. Wireless technology also has implications in regards to security However, this becomes much easier with a wireless signal. These signals can be intercepted by simply being the range of a wireless signal. Another problem is speed. Roaming is an essential property of wireless networks, although the need for roaming exists anytime a portable computer works on different network segments. For a wireless telephony network, roaming takes place transparently as cell phones move from the range of one cell tower to the next.



COMMUNICATION-Wire networks, such as Ethernet, are for communications between fixed locations. Wireless networks, such as Wi-Fi, are for communications between devices. The distinction is lost for fixed-location devices, but device mobility is the primary benefit of wireless.



CONNECTION-The air is free, but to operate wireless networks one still needs a wire connection to a computer or the wire network, a source of power, and radios.



COST ESTIMATION-Estimating the cost of a wire network is easy. It is the sum of the cost of the network cable, junctions, and connecting wires; the cable and junction installation; the network interfaces; and the long-term maintenance of the installed wiring plant. The costs of wireless networks are more difficult to estimate. They include the cost of wiring to access points, access point equipment, wireless interfaces, and long-term wireless troubleshooting and maintenance.



NEED POWER SOURCE -The other notable problem of wireless devices is they still need a power source. Wire network nodes can draw power from the local alternatingcurrent receptacle, but mobile wireless devices depend on batteries or some alternative power source.



RELIABILITY- Wireless LANs suffer a few more reliability problems than wire LANs, though perhaps not enough to be a significant concern. 802.11b and 802.11g wireless signals are subject to interference from other home appliances including microwave ovens, cordless telephones, and garage door openers. With careful installation, the likelihood of interference can be minimized.



SIGNAL LOSS - wireless networks still suffer from mysterious dead spots—areas where there is no reception. They are mysterious because even very careful planning cannot remove all dead spots, and sometimes live spots just move or, in the language of radio, fade. This is one of the most irritating aspects of wireless networks. This occurs with cellular telephones, with Wi-Fi devices, and with all other wireless local area network (LAN) technologies.



BANDWIDTH LIMITATION- Wireless network has a bandwidth limitation. The latest 802.11n MIMO (Multiple in, multiple out) Wi-Fi routers offer bandwidth of just over 100 Mbps . Fast Ethernet is also 100 Mbps. But in real-world use, Fast Ethernet delivers


COMPARISION OF WIRE AND WIRELESS COMMUNICATION

267

IV.


EATS BATTERIES- Though there are wireless technologies that have been specifically designed to conserve energy, such as Bluetooth and Ultra Wideband, even they need to expend extra energy to broadcast a wireless signal; far above what little electricity is required to send a signal over copper wires. Wi-Fi in particular is an energy hog when it comes to battery-powered devices.



FADING -Fading can be because of interference from other radio signals present in the same part of the spectrum as well as because of moving equipment. Finally, there are sunspots! The sun emits a broad spectrum of electromagnetic waves at all frequencies, which generally constitutes noise. Once in a while, the surface of the sun experiences flares or dark spots that emit very strong electromagnetic waves that interfere with radio transmissions. These things simply do not occur with wire communications.



MULTIPATH DISTORTION- Radio waves move from an omnidirectional antenna in all directions. Even when there is a clear path between the transmitting and receiving antennas, some of the signal reflected from other paths will arrive at the receiving antenna. This phenomenon is multipath distortion, and it can affect the received signal, because the longer path will cause the signal to arrive out of phase with the signal from the direct path. The effect of multipath distortion can range from nothing to the cancellation of the signal, depending on the paths and the resulting delays. This occurs when both paths arrive at the same time in phase such as when multiple transmitting antennas are used.



LOSS OF PRIVACY-Once a radio broadcast enters the air, or ether, anyone may receive the signal. Wire communications require a physical electrical connection, or at least an inductive coupling that is very close to the wire so as to intercept the signal. No such limitations exist for radio signals. If you broadcast, anyone can receive. There is no way s to provide exactly the level of privacy of an ordinary wire communication.



NETWORK MEMEBERSHIP- Membership in a wire network happens by establishing a physical connection to the wiring or to a network element such as a wiring hub or switch. Wireless units are neither connected nor disconnected from a network. To communicate, they must first seek to join the wireless network. As part of the protocol for joining the network, a network address is necessary.



ROAMING -Roaming is an essential property of wireless networks, although the need for roaming exists anytime a portable computer works on different network segments. Any wireless device may move so as to be in the range of different wireless networks. The ability to roam means that applications may continue to perform their network communications as the device moves from one wireless network (domain) to another. Network membership transfers transparently from one domain to another. For a wireless telephony network, roaming takes place transparently as cell phones move from the range

268




about 50% faster performance than 802.11n. Gigabit Ethernet‟s real-world speed boost is about 4-5 times that of 802.11n.


of one cell tower to the next. It is not that simple for mobile computers on a wireless LAN, however. FUTURE OF WIRELESS COMMUNICATION The fourth-generation communications system (4G) is the next step in wireless communications. A 4G wireless system will be able to provide a comprehensive IP solution where voice, data and streamed multimedia can be given to users on an „anytime, anywhere‟ basis and at higher data rates than previous generations. The newest solution for roaming wireless LAN stations is the socalled wireless switch. One of the terms used to describe 4G is MAGIC—Mobile multimedia, Anytime anywhere, Global mobility support, Integrated wireless solution, and Customized personal service. As a promise for the future, 4G systems, that is, cellular broadband wireless access systems, have been attracting much interest in the mobile communication arena. The 4G systems not only will support the next generation of mobile service, but also will support the fixed wireless networks .It is a fully IP-based, integrated system capable of providing high speeds indoors and outdoors, with premium quality and high security.

Data rates are able to support smooth video transmission with peak transmission rates of 100 Mbps (wide area) and 1 Gbps (fixed/low mobility).



Globally mobile and full-service portability.



Low cost.



Full scalability of mobile networks.



Tight network security, all network elements being digital.



IP transport for voice, video, multimedia and data services, as well as call control/signaling.



First generation of mobile data networks to support IPv6.



Next level of being always connected; an important milestone for the „internet of things‟.

APPLICATIONS 

Video streaming to mobile devices.



TV on mobile phones.



Video conferencing.



Video streaming.

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


BENEFITS




V.

Wireless internet. CONCLUSION

In conclusion, the paper introduces wire and wireless communication respectively, then makes a comparison of the two types. Wireless communication is less complex, less expensive but more convenient than wire communication, however, due to the transmission characteristics of electromagnetic waves, wireless communication is more vulnerable to interference. Therefore, wire communication has higher quality signals and more capacity than wireless communication. Furthermore, wire communications have better security. As can be seen, they have their own advantages and disadvantages, so it can not be considered that one type is superior. To make most use of the capacity of a communication system to meet various demands, the two types of technology need to be combined. With wire communication being more suitable for data and video transmission while wireless communications is more suitable for audio transmission. Finally, wire communications are mainly used in long-distance transmission while wireless communications are used in short-distance transmission. It is my personal opinion that wireless technology be used as a last resort. There is nothing more annoying than fighting with your wi-fi equipment because you suddenly lost your signal when you were trying to put in a last second or check an important email before you walk out the door. Speed and reliability will be never better with wireless signals that over the wire.

Business Data Communications and Networking, Tenth Edition By: Jerry FitzGerald; Alan Dennis



Dielectric materials for wireless communication [electronic resource] / Mailadil T. Sebastian.



Fundamentals of wireless communication [electronic resource] / David Tse and Pramod Viswanath.



Fundamentals of Wireless Communication by David Tse, University of California, Berkeley and Pramod Viswanath, University of Illinois, Urbana-Champaign



Fundamentals of Wireless Communication by David Tse and Pramod



http://www.ehow.com/list_6677249_advantages-wire



http://www.wikipedia.org



M. Medard, “The Effect upon Channel Capacity in Wireless Communications of Perfect and Imperfect Knowledge of the Channel” IEEE Trans. Info. Theory, vol 46, no. 3, May 2000.



Michel Daoud Yacoub, “Foundations of Mobile Radio Engineering”, by CRC Press LLC,1993.

270




REFERENCES

ZENITH

R. van Nee and R. Prasad, ”OFDM Wireless Multimedia Communications,” Artech House, Boston, 2000.



Secure Broadcast Communication: in Wire and Wireless Networks,by Adrian Perrig, J.D. Tygar



Theodore S. Rappaport, ”Wireless communications: principles and practice”, 2nd edition, 2002.



Understanding Data Communications (7th Edition) Gilbert Held



W. C. Jake, “Microwave Mobile Communications,” Section 1.7, 1974.



Wireless communication and network by wiley



Wireless Communications by Andrea Goldsmith,Stanford University

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




GINGER CULTIVATION IN LOWER DIBANG VALLEY AND LOHIT REGIONS OF ARUNACHAL PRADESH: HOUSEHOLD INCOME, SAVING AND INVESTMENT DR. PHILIP MODY*; SRI. RIKO MIHU**; SRI. BENGIA TADA***; DR. OKEN LEGO**** *Sr. Assistant Professor, Rajiv Gandhi University, Itanagar, Arunachal Pradesh. **Research Scholars, Rajiv Gandhi University Itanagar, Arunachal Pradesh. ***Research Scholars, Rajiv Gandhi University, Itanagar, Arunachal Pradesh. ****Sr. Assistant Professor, Rajiv Gandhi University, Itanagar, Arunachal Pradesh.

With this background, the present study makes an attempt to study status of household income, saving and investment made by ginger cultivators of the study area. KEYWORDS: Arunachal Pradesh; Ginger; Household Income; Investment; Lohit; Lower Dibang Valley and Saving. ___________________________________________________________________________

272

India meets about 50 percent of the global demand of ginger. Commercial crop- ginger is produced mostly in Kerala, Orissa, Meghalaya, Arunachal Pradesh, Himachal Pradesh, Karnataka and Assam etc, in India. Far in the East of India is the land of ecstasy called Arunachal Pradesh wherein, large scale commercial ginger cultivation set motion firstly in Lower Dibang Valley and then Lohit regions in the early 1990s. In fact, commercial ginger cultivation has been providing great scope for employment to the local youths, businessmen and general populace culminates to economic self-dependency. It is guiding the regions toward better socio-economic state of affairs. Interestingly, average ginger cultivators of the region have earned Net income of Rs 2,03,744 annually throughout the study period between 2002 to 2010. Moreover, the average sample ginger cultivators during the present study period saved total amount of Rs 8,46,595 with an annual average saving of Rs 84,659.5.


ABSTRACT


INTRODUCTION Ginger is grown in almost all parts of India since time immemorial. It is grown for either as a medicine, spice or cash crop. In India, Kerala is the major ginger growing state. Other major ginger growing states are Orissa, Meghalaya, Arunachal Pradesh, Himachal Pradesh, Karnataka and Assam respectively. About 50 percent of the global demand for ginger is met by India. Besides India, china, Nigeria, Indonesia, Bangladesh, Thailand, Philippines and Jamaica are also known to cultivate and export this popular herb while United Kingdom, United States and Saudi Arabia are the largest importer. In Arunachal Pradesh, large scale commercial ginger cultivation set motion firstly in Lower Dibang Valley and then Lohit regions (hereinafter called as study area or region) in the early 1990s. Around 60 percent of household undertake ginger cultivation and around 25 percent of dry cultivable land are used for it in Lower Dibang Valley and Lohit regions. On an average every ginger cultivators produces around 283 quintals of ginger annually giving a rich annual dividend of about Rs. 2,03,744. In fact, it provides great potential scope for self-employment to the local youths, businessmen and general public that provides economic self-dependency. Moreover, the cultivation of ginger has changed the economic face and structure of study area. It has positive and remarkable impact on socio-economic variables like annual income, per capita income, saving, investment and education, health and employment generation etc. It has been consistently redefining socio-economic image of the study area to better stratum. UNIVERSE OF STUDY The study area stretch over two major ginger producing districts or regions namely, Lower Dibang Valley and Lohit districts of Arunachal Pradesh. The present study has been conducted in 10 villages namely, Bijari, Meka, Koronu, Jia, Bolung, Parbuk, Iduli, Kangkong, Balek, and Itili of Lower Dibang Valley district and another 10 villages namely, Lathao, Wakro, Sunpura, Paya, Namsai, Chowkham, Adi-Ningru, Kampu, Alubari and, Soluntu of Lohit district of Arunachal Pradesh respectively. The villages have been selected deliberately because most of the commercial ginger cultivation is undertaken in these 20 villages of the study area. The facts and figures pertaining to ginger cultivation over the last 10 years i.e., from 2000-2001 to 20092010 have been taken into consideration for the present study.

For the collection of primary data a field survey was conducted over 20 villages and 10 ginger cultivators from each village were interviewed personally with the help of well-designed questionnaires. Altogether, 200 ginger cultivators have been selected at random basis and interviewed to know the status of income, saving and investment made through ginger. It has been further supplemented through informal discussion with district administrators like, B.D.O, Project officers, District Agriculture officer (D.A.O.), Agriculture Development officer (A.D.O), District Horticulture Officer (D.H.O) and other knowledgeable persons in this field.

273

During the present study an effort has been made to make the study empirical based on survey and statistical methods. The work is purely based on both primary and secondary data.


RESEARCH METHODOLOGY


As regard to secondary data, reports and publication of Directorate of economics and statistics and Horticulture, Govt. of Arunachal Pradesh and data from government agencies like DRDA, Block office, D.A.O office, A.D.O office, D.H.O office etc, have been used extensively for the present study. In addition to this, various published books, research papers and articles on ginger cultivation have been referred to for better understanding of the research problem. However, internet has been one of the most used sources of secondary data for the present study. Primary and secondary data has been analyzed, interpreted and summarized with the help of various types of statistical tools like percentage, ratio, graph, and diagram and mean etc. Audiovisual tools viz. tape recorder, and digital camera have also been used to facilitate the collection and recording of data during the field study. OBJECTIVES OF THE STUDY The present study made an attempt to:1. Study per household income earned through commercial ginger cultivation in the study area. 2. Study per household saving made through commercial ginger cultivation in the study area. 3. Analyze investment made by ginger cultivators over different economic and social variables. ANALYSIS AND INTERPRETATION OF DATA A. HOUSEHOLD INCOME Household income encompasses the income of all residents over the age of 18 years in each household including unemployment insurance, disability payments, child support payments, regular rental receipts, as well as any personal business, investment, agricultural income or other kinds of income received routinely. Contribution of ginger on household income of ginger growers has been encouraging throughout the study period, which is presented in Table 1.

Income

2000-01

62,555

2001-02

53,620

2002-03

1,02,385

2003-04

2,88,330

2004-05

2,66,775

Data taken from previous chapter under sub-head: Net Income

274

1

Year


TABLE 1: AVERAGE HOUSEHOLD INCOME ACCRUED FROM GINGER 1(IN RS)


2005-06

2,71,545

2006-07

2,02,565

2007-08

1,96,385

2008-09

2,60,140

2009-10

3,33,135

Average

2,03,7442

Source: Compiled from field data

Income

It is evident from Table 1 and Graph 1 that from 2003-04 there has been sudden rise in gross income till 2009-10 with exception in the years 2005-06 and 2007-08. According to the Table 1, net income is found highest during the period 2009-10 amounting to Rs 3, 33,135 and lowest being Rs 53,620 during 2001-02 respectively. Mean Net Income earned from ginger throughout the study period is Rs 2, 03,744. Moreover, one fourth (26.3 percent) of sample households in the study area are found to have earned more than the mean income while 73.7 percent of sample household earned less than the mean income.

350000 300000 250000 200000 150000 100000 50000 0

Annual average houshold Net income

It is revealed that six (6) out of two hundred (200) sample households earned net income more than Rs 12 Lakh from commercial ginger cultivation in the study area. Altogether, present trend of net income curve shows growth prospects of ginger cultivation in the study area. Therefore, commercial ginger cultivation has been increasing household income in the study area.

2

Rounded to nearest figure

275

GRAPH: 1


Year


B. SAVINGS In simple words, saving is the conservation of money through putting money aside in a bank account or pension plan for future or for investment. In other words, unspent income that is not used immediately for buying goods and services is known as saving. It also means the act of reducing recurring expenditures. In economics parlance, personal saving has been defined as disposable income minus personal consumption expenditure. Saving habits is important for not only industrialist, businessperson and salaried people but also equally important for agriculturalist. Likewise, saving habits determines investment capacities of ginger cultivators and augments socio-economic growth in the study districts. The status of saving made from income accrued from ginger by its growers in the study districts is given in Table 2. TABLE 2: HOUSEHOLD AVERAGE SAVING MADE FROM GINGER CULTIVATION (AMOUNT IN RS) Year

Income

Saving

Saving to Income percentage

2000-01

62,555

19,600

31.33

2001-02

53,620

17,709

33.02

2002-03

1,02,385

34,050

33.25

2003-04

2,88,330

98,011

33.99

2004-05

2,66,775

70,420

26.39

2005-06

2,71,545

55,248

20.34

2006-07

2,02,565

1,59,774

78.87

2007-08

1,96,385

1,02,336

52.10

2008-09

2,60,140

1,28,203

49.28

2009-10

3,33,135

1,61,244

48.40

84,659.5

41.55

Average

2,03,744

3

3

Rounding figure

276

It is evident from Table 2 that the average household savings from ginger cultivation is increasing with exception to the block years 2004-05, 2005-06 and 2007-08 respectively. It is noteworthy to mention that the saving as shown in Table 2 do not exhibit definite pattern displaying erratic behavior. It is clear that the ginger growers‟ of the study area do not have definite saving habits. However, the overall saving activity is on growth track. Volume of saving of ginger growers throughout the study period is observed highest in block year 2009-10 amounting to Rs 1, 61,244 and lowest at Rs 17,709 in block year 2001-02 respectively. It is also


Source: Compiled from field data


Saving to Income %

observed from Table 2 that the average sampled ginger cultivators saved total amount of Rs 8,46,595 in 10 years with an average of Rs 84,659.5 in each block year.

90 80 70 60 50 40 30 20 10 0

Saving to Income percentage

Year

C. INVESTMENT The word „Investment‟ is understood differently in different theories and principles. It is a term that can be used in a number of contexts. In a common parlance, investment is the

277

As observed in graph 2, the capacity to save income accrued from ginger in the study area is almost constant in first quarter of the study period. However, percentage of saving to total income has decreased from second quarter to approximately middle of the period. Interestingly, there is a sudden and sharp rise in saving during third quarter. Last quarter of the reference period has witnessed almost uniform growth of saving indicating growth prospect of saving to income in the near future. Throughout the study period, the share of saving to income is lowest in the block year 2005-06 in which only Rs 55,248 is saved off total net income of Rs 2, 71,545 that constitute only 20.34 percent. It is reported during field study that there was a drought like situation in the two consecutive block years namely 2004-05 and 2005-06 in the study area, which compelled people to spend much money on essential household commodities especially on rice. Amazingly, the highest percentage of saving of Rs 1, 59,774 (78.87 percent) is recorded in block year 2006-07. The highest saving during 2006-07 may be akin to farmers‟ growing consciousness about anti-drought measure as they have better experiences years before. Ginger cultivators become well aware of the plouging back of income to face any adversity of nature from this block year and as a result, they have started to save more income than ever before. Thus, the block year 2006-07 marks a major breakthrough in terms of saving of income accrued from ginger in the study area. Altogether, throughout the reference period the average ginger growers saved 41.55 percent of their income earned from ginger cultivation in the study districts.


GRAPH 2: SAVING TO INCOME PERCENTAGE


application of money for earning more money. According to economics, investment is the utilization of resources in order to increase income or production output in the future. On the other hand, finance professionals define an investment as money utilized for buying financial assets, for example stocks, bonds, bullion, real properties and precious items, etc. For the present study, the term „Investment‟ is used in place of „Expenditure‟. It is perceives as a part of Expenditure in which resources in any forms (money, gold, building, land, vehicle, man, animal and elements of nature etc) is used to multiply the resources. The benefit of such expenditure is enjoyed at least more than one time or lasting for reasonable period. It is observed that the ginger cultivators in the study area have made substantial investment that deserves special mention. Distribution of investment made by ginger cultivators from saved income earned from ginger in the study area during the reference period is furnished in Table 3.

8786

10855 19641

3694

9976

Nil

85536

12338 22834

19833

4366

11287

Nil

93196

13222 27853

40195

4671 3 4671

69704

3863

6970

386

57303 2 57303

1049 6 1463 1 7174 6 7175

73032 14477 8 7303 14478

12878 5 12879

10600

4996

5350 3772 5003 12948 13004 14650 19723

2615 2404 5450 14500 6124 1364 32606


Nil Nil 1260 1403 1200 Nil Nil

Other s

278

3060 2150 5322 7244 5370 4347 10348

Total

2100 1775 2353 7400 5509 6780 10700

1190 1223 1305 6650 3396 2342 1560 0 5645

Total

3250 1997 2650 5548 7495 7870 9023

Nil

11635 11533 23597 70563 51292 39234 10744 5 79001

Ginger Field

Public Health, Hygiene and Sanitation

Construction of road and bridges

Development of Agricultural lands and cannels

Construction of Buildings

19,600 4300 3085 17,709 5005 3155 34,050 8450 7260 98,011 28966 26300 70,420 29196 12130 55,248 20090 12455 1,59,77 29478 52019 4 2007-08 1,02,33 12198 50558 6 2008-09 1,28,20 11558 59006 3 2009-10 1,61,24 12088 65455 4 Total 8,46,59 161329 291423 5 Average 84,660 16133 29142 Source: Compiled from field data

Education

2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07

Acquisition of consumer durable

Year

Saved Income

TABLE 3: AVERAGE HOUSEHOLD INVESTMENT MADE ON SELECTIVE SOCIOECONOMIC VARIABLES IN THE STUDY AREA (IN RS) Economic Variables Social Variables


The analysis is made by taking selective but strategic areas where in the ginger cultivators have made substantial investment from their income. Selective areas of investment are capital goods & consumer durables, building construction, education, ginger field, construction of road and bridges, development and rejuvenation works of agricultural land & cannel, public health, hygiene & sanitation and others. Five major economic and two social variables have been selected for the present study to analyze and understand distribution of investments categorically which is highlighted in Table 3. Analysis of the data as shown in Table 3 reveals that, the ginger cultivators have made highest investment of Rs 2,91,423 with average annual investment of Rs 29,142 on construction of building including residential buildings, barn houses, cattle sheds, and other non-residential houses etc, during the study period. Distribution of investment is also high in case of acquisition of capital goods like, T.V & entertainment gadgets, vehicles, and other consumer durable goods that has snatched second place with total investment of Rs 1,61,329 with annual average household investment of Rs 16,133. In addition to this, investment in other areas has occupied third slot with total investment of Rs 1,28,785 with annual average household investment of Rs 12,879. However, it is observed that ginger cultivators have made least investment on construction of road and bridges with total investment of Rs 3,863 only and annual average household investment of Rs 386 only during the study period.

It is observed from the diagram 1 that the share of investment in building construction is highest with 34 percent followed by capital goods & consumer durables 19.05 percent and others with 15 percent respectively. The lowest investment is observed in the construction of road and bridges with 0.45 percent only. It is found that, two major areas of investment i.e., capital goods & consumer durables and building construction has jointly shared 53.47 percent of total investment made during the reference period. It is fascinating to note that the ginger cultivators

279

DIAGRAM 1: DISTRIBUTION OF INVESTMENT


Position of investment made from saved income accrued from ginger can be better understood from diagram 1.


are more interested to invest in economic variables than social overheads like road, bridges, education, etc. CONCLUSION Ginger is one of the most used spices of Arunachal Pradesh since times out of mind. In some aboriginal communities of this juvenile state, it is found to have extremely used in multiple occasions- marriage, birthdays, birth & death rituals and festivals etc. Apart from its mass recognition as a spice food, people of the study area have too recognized its social values and economic potentiality. On the positive note, income, saving and investment of farmers are on increase the day they started commercializing ginger in the present study area. The study area has witnessed considerable development in all forms- economic, social, political and cultural regimes due to intensification of ginger cultivation on large scale. Moreover, it has far-reaching impacts on geographical features of the study area- reshaped the settlement pattern, immigration rate enhanced, sex ratio improved, population and density of population increased and urbanization rate accelerated. So, commercial ginger cultivation has brought about marked social, economic, cultural, geographical and political changes in of the study area. However, commercial ginger cultivation has still to compromises with some limitations endemic to this region. Some of them are nonavailability of finance, lack of government assistance and technical support, lack of cultivation on scientific lines, involvement of multiple middlemen, non-availability of cheap labor, spoilages of ginger field due to hostile climatic conditions, low market rate, and unhealthy socio-political climate are some of the prominent bottleneck to ginger cultivation. Nevertheless, this is the ending of problems and beginning of prospect of ginger in the study area- Lower Dibang Valley and Lohit regions of Arunachal Pradesh. REFERENCE

3. Borthakur, Dhirendra Nath., (1992); “Agriculture of the North Eastern Region with special reference to hill agriculture”, Beecee Prakashan, Guwahati, pp 47-52. 4. Gupta, S.K., (2009); “Horticulture Crop Production”, Eastern Book House publisher, Panbazar, Guwahati- 781001. 5. Husain, M., (2008); “Systematic Agricultural Geography”, Rawat Publications, Jawahar Nagar, Jaipur- 302004.

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2. Barua, M., and Barua, N., (2010); “Marketing of Processed Fruit and Vegetable”, Daya Publishing House, Darya Ganj, New Delhi- 110002.


1. Asumugha, G.N., Kormawa, P.M., and de Haan, N.C., (2009); “Gender Impacts of Small Farmers Commercialization of Ginger Enterprise in Nigeria”, paper provided by European Association of Agricultural Economists, 111th Seminar, Canterbury, U.K.


6. Kumar, R., (2010); “Horticulture- Agro Project Report”, Eastern Book House publisher, Panbazar, Guwahati- 781001. 7. Leung, A., and S. Foster., (1996); “Encyclopedia of Common Natural Ingredients Used in Foods, Drugs and Cosmetics”, second edition, John Wiley & Sons, New York. 8. Roy, P.K., (2007); “Economic Geography- A Study of Resources”, New Central Book Agency (P) Ltd. Kolkata- 700009. 9. Sharma, T.C., (2008); “Economic and Commercial Geography of India”, Vikas Publishing House Pvt. Ltd., Noida- 201301. 10. Taher, M., and Ahmed, P., (2007); “Geography of North-East India”, Mani Manik Prakash, Panbazar, Guwahati- 781001.

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11. Mowrey, D. B., and D. E. Clayson., (1982); “Motion Sickness, Ginger and Pyschophysics”, Lancet Vol- 20, p 655-667.


IMPORTANCE OF QUALITY WORK LIFE (QWL) IN TODAY'S DYNAMIC MARKET DR. P. S. RAVINDRA*; MR. S. A. HUSSAIN** *Associate Professor & H.O.D, Miracle School of Management, Miracle Educational Society Group of Institutions, Andhra Pradesh, India. **Associate Professor, Miracle School of Management, Miracle Educational Society Group of Institutions, Andhra Pradesh, India.

ABSTRACT Quality of Work Life (QWL) attempts to improve the quality of life for the worker. The Scientific approach towards management and organization resulted in a rigid structural hierarchy, exhaustive specialization of job, deployment of unskilled labor and an unfavorable work environment. This led to high employee turnover, decline in productivity, absenteeism and consequently, a group of demotivated employees. Modern managers have realized the need to develop a work climate that motivates the employees to perform better in order to enhance the productivity of their organizations. The aim of the paper is to determine the factors which are influencing the quality of work life of employees and effects of ICT on QWL and how to eliminate the stress in QWL. KEYWORDS: Factors influencing QWL, Effects of Information and Communication Technology Adoption on Quality of Work Life, Provisions of QWL, stress elimination in QWL, recent trends and challenges in QWL, QWL with innovative market. ____________________________________________________________________________

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The quality of work life (QWL) is a wide term covering an immense variety of programmes, techniques, theories and management styles through which organizations and jobs are designed so as grant employees more autonomy, responsibility and authority than is usually done. It is a comprehensive, department- wide program designated to improve employee satisfaction, strengthening workplace learning and helping employees (Anonymous, 2005).A high quality of work life is essential for organizations to continue, to attract and retain employees (Sandrick, 2003). Many factors contribute to QWL which includes adequate and fair remuneration, safe and healthy working conditions and social integration in the work organization that enables an individual to develop and use all his or her capacities; it holds that people are the most important resource in the organization as they are trustworthy, responsible and capable of making valuable contribution and they should be treated with dignity and respect. (Straw, R.J. and C.C. Heckscher, 1984).


INTRODUCTION


QWL programs aim at developing work conditions that satisfy employee needs. The satisfaction of employees can be determined by the degree to which an employee is ―engaged‖. The term ―engaged‖ refers to the emotional and intellectual involvement of the employees. And the key drivers for this ―engagement‖ are the work design, the opportunities offered by the job and the recognition on completion of the job. QWL activities focus on these key drivers for employee engagement. Therefore QWL activities must cater to the follow physical and emotional needs of employees. This makes the importance of Quality of Work Life- Quality Work Life deals with the impact of work and the work environment. It focuses on improving the conditions of work to create a supportive and healthy work environment. Which is needed in today‘s dynamic market. AIM AND OBJECTIVES keeping above facts in view the present study has been pursued to achieve the following objectives: 

To observe the factors determining the satisfaction with the quality of work life towards his/her job in the organization.



To study the nature of relationship between ICT adoption and stress related work with the quality of work life in today's dynamic market.

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Both employers and employees now better appreciate the importance of the Quality of work life in an organization. Quality of work life is important to organizational performance (Grayson, 1973). Quality of work life is an important factor that affects motivation at work (Ghosh, 1992). Quality of work life programmes has two objectives: to enhance the productivity and the satisfaction of employees (Gardon, 1984). Quality of work life is the quality of the content of relationship between employees and their total working environment with human dimensions added to the usual technical and economic ones. Glasier (1976) thinks that quality of work life implies job security, good working conditions, adequate and fair compensation, more even than equal employment opportunity all together. In their excessive literature review Katzell et. Al (1975) viewed quality of work life more broadly as an individual‘s evaluation of the outcome of the work relationship. They observed that a employee may be said to enjoy a high quality of working life when he has positive feelings towards his job and its future prospects, is motivated to stay on the job and performs well and feels his working life fits well with his private life to afford him a balance between the two in terms of his personal values. Walton (1973) suggested eight major conceptual areas for understanding quality of work life. These were adequate and fair compensation, safe and healthy working conditions, development of human competencies, growth and security, social integration, constitutionalization and total life space and social reliance. Various other studies conducted on quality of work life include employment conditions, employment security, income adequacy, profit sharing, equity and other rewards, employee autonomy, employee commitment, social interaction, self- esteem, self- expression, democracy, employee satisfaction, employee involvement, advancement, relations with supervisors and peers


REVIEW OF LITERATURE


and job enrichment ( Chander and Singh, 1993) Runcie (1980) remarked that should an employee have positive perception of the quality of work life in the company, he would further probably strive to further improve the working conditions, increase production and quality products. The experiences of a fair number of organizations indicate that a number of specific roles and structures and the support systems, must be in place and functioning effectively in order that the quality of work life programmes remain viable grow, involve, permeate the organizational culture and produce long term success and benefits. The cross nation experiences amply demonstrate that improvement in quality of work life has definite potential and scope in improving productivity (Ledford and Lawler, 1982) and overall organizational effectiveness ( Buchanan and Boddy, 1982) as also reducing grievances, turnover and absenteeism ( Goodman, 1980) and industrial accidents (Havolovic, 1991). Yet in spite of the plethora of research on the subject, the efforts on the part of researchers to identify the factors of quality of work life in the Indian context have not been encouraging. Thompson indicated quality of work life programs a movement toward greater engagement with the cooperation, knowledge and tactic skills of the work force. Delamotte and Walker (1974) indicated that the number of emphasis have been made in the humanization of work including: the need to protect the worker from hazards to health and safety, the wage work bargain, the protection of workers from hazards of illness and unemployment and the protection of the worker from arbitrary the authority of management. FACTORS INFLUENCING QWL

Environment: The job may involve dealing with customers who have varied tolerance level, preferences, behavioral pattern, level of understanding; or it may involve working with dangerous machines like drilling pipes, cranes, lathe machines, welding and soldering machines, or even with animals where maximum safety precautions have to be observed which needs lot of concentration, alertness, presence of mind, quick with involuntary actions, synchronization of eyes, hands and body, sometimes high level of patience, tactfulness, empathy and compassion and control over emotions.

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ATTITUDE: The person who is entrusted with a particular job needs to have sufficient knowledge, required skill and expertise, enough experience, enthusiasm, energy level, willingness to learn new things, dynamism, sense of belongingness in the organization, involvement in the job, inter personnel relations, adaptability to changes in the situation, openness for innovative ideas, competitiveness, zeal, ability to work under pressure, leadership qualities and team-spirit.


A happy and healthy employee will give better turnover, make good decisions and positively contribute to the organizational goal. An assured good quality of work life will not only attract young and new talent but also retain the existing experienced talent. Work is an integral part of our everyday life, as it is our livelihood or career or business. On an average we spend around twelve hours daily in the work place, that is one third of our entire life; it does influence the overall quality of our life. It should yield job satisfaction, give peace of mind, a fulfillment of having done a task, as it is expected, without any flaw and having spent the time fruitfully, constructively and purposefully. Even if it is a small step towards our lifetime goal, at the end of the day it gives satisfaction and eagerness to look forward to the next day. The factors that influence and decide the Quality of work life are:


OPPORTUNITIES: Some jobs offer opportunities for learning, research, discovery, selfdevelopment, enhancement of skills, room for innovation, public recognition, exploration, celebrity-status and loads and loads of fame. Others are monotonous, repetitive, dull, routine, no room for improvement and in every sense boring. Naturally the former ones are interesting and very much rewarding also. NATURE OF JOB: For example, a driller in the oil drilling unit, a diver, a fire-fighter, traffic policeman, train engine driver, construction laborers, welder, miner, lathe mechanic have to do dangerous jobs and have to be more alert in order to avoid any loss of limb, or loss of life which is irreparable; whereas a pilot, doctor, judge, journalist have to be more prudent and tactful in handling the situation; a CEO, a professor, a teacher have more responsibility and accountability but safe working environment; a cashier or a security guard cannot afford to be careless in his job as it involves loss of money, property and wealth; a politician or a public figure cannot afford to be careless, for his reputation and goodwill is at stake. Some jobs need soft skills, leadership qualities, intelligence, decision making abilities, abilities to train and extract work from others; other jobs need forethought, vision and yet other jobs need motor skills, perfection and extreme carefulness. PEOPLE: Almost everyone has to deal with three set of people in the work place. Those are namely boss, co-workers in the same level and subordinates. Apart from this, some professions need interaction with people like patients, media persons, public, customers, thieves, robbers, physically disabled people, mentally challenged, children, foreign delegates, gangsters, politicians, public figures and celebrities. These situations demand high level of prudence, cool temper, tactfulness, humor, kindness, diplomacy and sensitiveness.

CHALLENGES: The job should offer some challenges at least to make it interesting; That enables an employee to upgrade his knowledge and skill and capabilities; whereas the monotony of the job makes a person dull, non-enthusiastic, dissatisfied, frustrating, complacent, initiative less and uninteresting. Challenge is the fire that keeps the innovation and thrill alive. A wellaccomplished challenging job yields greater satisfaction than a monetary perk; it boosts the selfconfidence also.

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CAREER PROSPECTS: Every job should offer career development. That is an important factor which decides the quality of work life. Status improvement, more recognition from the Management, appreciations are the motivating factors for anyone to take keen interest in his job. The work atmosphere should be conducive to achieve organizational goal as well as individual development. It is a win-win situation for both the parties; an employee should be rewarded appropriately for his good work, extra efforts, sincerity and at the same time a lethargic and careless employee should be penalized suitably; this will motivate the former to work with more zeal and deter the latter from being so, and strive for better performance.


STRESS LEVEL: All these above mentioned factors are inter-related and inter-dependant. Stress level need not be directly proportional to the compensation. Stress is of different types mental stress/physical stress and psychological or emotional stress. A Managing Director of a company will have mental stress, a laborer will have physical stress, a psychiatrist will have emotional stress. Mental stress and Emotional stress cause more damage than physical stress.


GROWTH AND DEVELOPMENT: If an organization does not give chance for growth and personal development it is very difficult to retain the talented personnel and also to find new talent with experience and skill. RISK INVOLVED AND REWARD: Generally reward or compensation is directly proportional to the quantum of work, man-hours, nature and extent of responsibility, accountability, delegated powers, authority of position in the organizational chart, risk involved, level of expected commitment, deadlines and targets, industry, country, demand and supply of skilled manpower and even political stability and economic policies of a nation. Although risk is involved in every job its nature and degree varies in them; all said and done, reward is a key criteria to lure a prospective worker to accept the offer. EFFECTS OF INFORMATION AND COMMUNICATION TECHNOLOGY (ICT) ADOPTION ON QUALITY OF WORK LIFE While there has been less documentation of positive impacts of ICTs, there is reason to believe that ICTs in some cases may improve QWL. For example, when ICTs have the effect of complementing or increasing the demand for (and thus the value of) workers‘ skills, we could expect QWL to improve. At least one study has shown that when ICT creates more complex jobs, employees‘ job satisfaction increases (Axtell et al., 2002).

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ICTs may affect QWL by actually creating or reducing jobs and by the kinds of jobs eliminated or created. However, scholars disagree on the overall impact of ICTs in this regard. Some authors argue that they ultimately reduce the number of jobs available, because they substitute for a greater and greater number of skills (e.g., Gorz, 2000; e.g., Rifkin, 1995). Levy and Murnane (2004) argue that they do not, because while they substitute for rule-based information processing (thus routine cognitive tasks such as insurance underwriting) and, in conjunction with machines, routine manual tasks (i.e., many manufacturing jobs), they create new jobs, most of which require more complex skills. This happens because efficiencies created by ICTs make products and services cheaper, thus (a) increasing demand for them and thus increasing the need for supporting tasks; (b) moving workers into new, expanding industries; and (c) increasing consumer buying power and thus demand for other services and products (which generates new jobs). Levy and Murname provide evidence that substantial growth has occurred for managerial, professional, technician, and sales; modest growth for service occupations, and substantial declines in blue and pink collar jobs, ie, those that involve routine manual and routine cognitive tasks (p. 42). Essentially, they argue, most growth is occurring in jobs requiring expert thinking and complex communication—both tasks computers cannot do. The growth in service work is because the economy has expanded, creating more service work, and their jobs,


Additionally, ICTs may be used to facilitate the use of high involvement work practices (HIWPs), such as self-managed teams, employee involvement in decisions, multi-skilling of workers, and flattening of hierarchies (Gollan, Davis, & Hamberger, 2005; Guthrie, 2001). ICTs enable HIWP by enabling workers to have access to information for decision-making and online training, but also because HIWPs are part of a strategy of output flexibility and responsiveness to customers which is itself made possible by ICTs (Head, 2003, p. 44).


consisting of non-routine manual are not easy for computers to do. Levy and Murname ultimately see computers as likely to create more and better work. The upshot of the above is that ICTs may improve QWL when they create more interesting, high skill, complex jobs (which ultimately pay better) and when they are used to create high involvement work practices that increase meaningful participation and power. Given the potential positive and negative impacts of ICTs, it remains to be seen whether workers in general perceive ICTs as improving or deteriorating QWL. ORGANIZATIONAL STRATEGIES TO COPE WITH STRESS ELIMINATION IN QWL Organizational strategies are designed by the management to reduce work related stress in employees. Studies have revealed that stress incurs huge cost for the organisation as it results in health disorders, increased absenteeism and high turnover rates. Various organisational level strategies to cope up with stress are discussed below: (I) PROBLEM FOCUSED STRATEGIES Organization can make use of certain problem-focused strategies to eliminate stress from the work environment or help people cope with it. These strategies are redesigning the job, proper selection and placement, training, team building and providing various day care facilities. (II) EMOTION FOCUSED STRATEGIES When organizational stressors can be totally eliminated are brought down to a manageable level, organisation use emotion focused strategies to help their employees cope with high stress levels. Some of these strategies are open communication, employee assistance programs, mentoring, wellness programs and personal time off. STRATEGIES FOR IMPROVING QWL

Manager and supervisors must provide career guidance to their subordinates right from the initial stages to the mid and later states of career planning. The management should develop career paths for employees, counsel workers, provide them with adequate information regarding their career, train them, and periodically assess their skills. This exercise would help sustain the productivity of employees and also help them prepare for any change in the work environment or organizational setting. Career guidance can be made more effective if such career development activities are taken up in coordination with other activities carried out by the Hyman Resource Management department.

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I.EFFECTIVE CAREER GUIDANCE


QWL is the share responsibility of the management and union. Both parties must participate equally in the implementation of QWL initiatives. J. Richard Hackman and J.L.Suttle have recommended five strategies to improve QWL in organizations.


II. REWARD SYSTEMS An effective reward system will lead to the creation of a skilled, committed competent and motivated workforce which in turn will bring about an increase in the productivity and profitability of the organisation. The reward system may be financial or non financial in nature. Financial reward includes an increase in salary or special performance bonus. These rewards should be commensurate with the performance and contribution of the individual towards the productivity of the organisation. Non-financial rewards include enhanced responsibility, opportunities for growth and development along the career ladder, etc. The success of any reward system depends on the degree of involvement of the participants and their perception of its value and fairness. Organizational reward systems are therefore very complex in nature and need to be designed carefully. Improved communication systems go a long way in contributing to the success of any reward system. III. ROLE OF SUPERVISION AND MANAGEMENT An organisation‘s existing managerial practices have an immense impact on the implementation of QWL initiatives. The supervisors and mangers play an important role in determining the success of QWL programs as they act as facilitators between the management and the union. They influence the productivity of the workers and the success of QWL initiatives by the way they treat their subordinates and motivate them to enhance the quality of work. They also affect the output of employees through their influence on the design of jobs, the development of the reward system and the development of teamwork. The supervisor also influences the participation of the employees in crucial decision making activities. IV.JOB DESIGN Job design has a tremendous impact on the motivation, satisfaction and productivity of employees. It must therefore ensure that he optimal quantity of work is carried out by employees, that responsibilities are supported by adequate powers and that the work satisfies the workers and enables them to move up the career ladder. However, there exists no specific job design strategy to improve the quality of work life. The management should therefore encourage the involvement of workers in designing jobs.

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The management of an organisation is responsible for designing and maintaining inter-group relationships. Groups may be formed by virtue of the tasks they perform or the hierarchy existing in organizational structures. They may even be based on the social and personal characteristics of the workers. To improve the quality of work life, management should pay attention to the dynamics of intra-group and inter-group relationships. A variety of behavioral science interventions (like inter-group meetings etc) may be used to minimize the unfavorable effects of inter-group conflicts, thereby improving the quality of work life. These interventions tend to increase communication and interaction between work-related groups and decrease the amount of dysfunctional competition.


V. DESIGN AND MAINTAINING GROUP AND INTER-GROUP RELATIONSHIP


SELF MANAGED TEAMS: AN APPROACH TO QWL A Self Managed Team (STM) refers to a group of employees formed to accomplish a common objective. A SMT is directed by a team leader. The members of the team are granted decision making authority to accomplish the objective of the team. They participate in activities like designing the work methods, making hiring decision and sometimes even establishing the rates of pay. Also called ‗autonomous work groups‘ or ‗socio-technical teams‘, Self Managed Team aim at achieving a balance between the human and technical system of an organisation. The team manages itself without any formal supervision. It is largely guided by its team leader, who defines the end objective of the group and facilities the success of the team. The term leader not only provides the necessary guidance to his team, but also helps it obtain the required resources for the accomplishment of the objectives. He is also responsible for encouraging the group to enhance its problem solving and self-evaluation skills. He thus play the role of a facilitator among the members of the team. By doing so, he helps the organisation make the transition from a traditional hierarchical structure to a structure in which teams manage themselves. Considerable time is spent on team meetings to facilitate the all round development of the team members. The creates a shared sense of responsibility and accomplishment among all the members of the team, and motivates them to perform better. CONCLUSION

REFERENCES Buchanan, D. A., & Boddy, D. (1982), ―Advanced technology and the quality of Work Life‖, Journal of Occupational Psychology, Vol.55, pp.1-11.

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The concept of Self-Managed Teams (SMT) is a modern approach towards QWL. A SMT can be defined as a cohesive group striving to achieve a common goal under the guidance of a team leader. The member of SMT are given appropriate responsibilities and sufficient powers to accomplish their duties and achieve the teams objective. It can be helpful to the organisations in today's dynamic market.


Job discontent and declining productivity rate of employees working in organisations that followed traditional managerial practices, paved the way for emergence of QWL initiatives to boost the motivational level of employees and improve the health of organizations. QWL is an important intervention which focuses on establishing a workplace that encourages workers to perform well, thereby sustaining the productivity and profitability of organisations. Effective QWL activities lead to the development of a healthy, satisfied and productive workforce and creation of efficient, adoptive and profitable organization. However QWL activities that have not been properly implemented may destroy the harmonious relationship between the management and the union. It is therefore essential to understand that QWL programmes of the joint responsibility of the management and the union in today's dynamic market.


Budhwar, S., and Boyne, G.(2004). ―Human resource management in the Indian Public and private sectors: an empirical comparison‖, International Journal of Human Resource Management, Vol.15, No.2, pp.346-370. Chander, Subash and Singh, parampal (1983), ―Quality of work life in a University: An Empirical Investigation‖, Management and Labour Studies, Vol.18, No.2, pp. 97-101. Delamotte, Y. and Walker, K. F., (1974) "Humanisation of Work and the Quality of Working Life Trends and Issues", International Institute for Labour Studies Bulletin , Vol. 11, , pp. 3-14 Goodman, P.S. (1980), ―Quality of Work Life Projects in 1980‘s‖ Industrial Relations Research Association, pp-487-494 Grayson, C.J (1973), ―Management Science and Business Practice‖, Harvard Business Review, Vol.51, No.4, pp.76-80. Havolovic, S.J. (1991), ―Quality of Work Life and Human Resource Outcomes‖, Industrial Relations, Vol.30, No.3, pp.469-479 Katzell, R.A., Yankelovich, D., Fein M., Ornate, D.A. & Nash, A. (1975), ―Work Productivity and Job Satisfaction‖, The Psychological Corporation, New York. Ledford, G. E. and Lawler, E. E. (1982), ―Quality of work life programs, coordination, and productivity‖, Journal of Contemporary Business, Vol. 11, pp.93-106. Runcie, J. F. (1980), ―Dynamic Systems and the Quality of Work Life‖, Personnel, Vol. 57, No.6, pp.13–. 24. Straw, R.J. and C.C. Heckscher, (1984), ―QWL: New working relationships in the communication industry‖, Journal of Labor Studies, Vol.9, pp.261-274.

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Walton, R. (1973), ―Quality of Work life Indicators- Prospects and Problems- A Portugal Measuring the Quality of working life‖ Journal of Management Science, Vol.5, pp-57-70.


IMPACT OF SELECTED MINOR GAMES ON PSYCHOLOGICAL FACTORS AMONG DEAF STUDENTS PRADEEP.C.S*; AJEESH.P.T**; ARUN.C.NAIR*** *Lecturer, G.V.Raja Sports VHSS, Thiruvananthapuram, Kerala, India. **Research Scholar, Research and Development Centre, Bharathiyar University, Coimbatore, Tamil Nadu. ***Research Scholar, Research and Development Centre, Bharathiyar University, Coimbatore, Tamil Nadu.

INTRODUCTION Disability is any physical or mental condition that limits a person’s movements, senses or activities. The term disability is conventionally used to refer to attributes that are severe enough to interfere with, or prevent, normal day-to-day activities. According to the UN Convention on the Rights of Persons with Disabilities, “persons with disabilities include those who have longterm physical, mental, intellectual or sensory impairments which, in interaction with various barriers, may hinder their full and effective participation in society on an equal basis with others.”

Depression is a state of low mood and aversion to activity that can affect a person's thoughts, behaviour, feelings and physical well-being. Depressed people may feel sad, anxious, empty, hopeless, helpless, worthless, guilty, irritable, or restless. Anxiety is a psychological and physiological state characterized by somatic, emotional, cognitive, and behavioural components. It is the displeasing feeling of fear and concern. The root meaning of the word anxiety is 'to vex or trouble'; in either presence or absence of psychological stress, anxiety can create feelings of fear, worry, uneasiness, and dread.

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The psychological effects are reduction in anxiety and depression an enhanced self efficiency.


Deaf is a term which was used historically to identify a person who was both deaf and could not speak. The term continues to be used to refer to deaf people, mainly within a historical context, to indicate deaf people who cannot speak, or have some degree of speaking ability, but choose not to speak because of the negative or unwanted attention atypical voices sometimes attract.


SELECTION OF THE SUBJECTS The sample consists of 104 deaf children belonging to the age group of 14-20 years studying in the School for the deaf, Govt. V&HSS for the Deaf Jagathy, Thiruvananthapuram, Kerala. Among them 65.38% (N=68) was boys and 34.61% (N=36) was girls. The mean age of the participants was 17.07 years with a range of 14 to 20 years and a standard deviation of 1.82 years. The 104 subjects were classified randomly into two groups namely group-A and group-B; group-A, the experimental group underwent the minor game programme consisted of 34 boys and 18 girls and group-B, the control group held 34 boys and 18 girls. PSYCHOLOGICAL VARIABLES ANXIETY AND DEPRESSION MINOR GAME These games promote learning and growth for every child who participates. The games have been revised and tested in order to ensure that each game is easy to follow and contributes to the holistic development of the child. TOOLS OF THE STUDY a. State –Trait Anxiety Inventory (STAI; Spielberger, Gorsuch, Lushene, Vagg, & Jacobs, 1983) was used to assess state anxiety before and after both of the experimental conditions b. Children’s Depression Inventory (CDI) (Kovacs, 1992). The Children's Depression Inventory is a short version of the Beck Depression Inventory. Higher scores indicate higher levels of depressive symptoms.

:

8 weeks

(b) Schedules

:

8 (5 days/week)

(c) Programme Units

:

40 (8 weeks X 5days)

(d) Programme Time

:

1 hour (per day)

ADMINISTRATION OF THE PROGRAMME The prescribed programme schedule was applied to the experimental group by the research scholar with the help of other physical education teachers who strictly followed the instructions of the research scholar. Subsequently the control group spent their time doing their daily routine. The experimental group subjects performed in the minor game programme after

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(a) Duration


PROGRAMME PLAN AND PROCEDURE


school session. The programme was implemented on the experimental group after every school session for a period of one hour for 5 days per week. STATISTICAL TECHNIQUE EMPLOYED The data pertaining to the physical fitness, physiological and psychological variables of minor game programme children were tested using Analysis of Covariance (ANCOVA). Testing of hypothesis level of significance was set at .05 levels. ANALYSIS OF DATA AND RESULT OF THE STUDY DEPRESSION ANCOVA was used to assess whether or not the minor game group experienced a decrease in depression after the minor game programme intervention. The test revealed a significant interaction, F (1,103) = 3.94 for p < .05, There was however, a significant effect of time F = 76.866 for p = 0.000. This indicates that participants in minor game group experienced a decrease in depression from pre- to post-intervention. FIGURE – 1

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Figure 1 shows the graphical representation of the pre-test, post-test and adjusted means for the data on depression score in experimental and control groups. For the experimental group the values of pre, post and adjusted means are 8.038, 5.635 and 5.713 respectively. And for the control group the values of pre, post and adjusted means are 8.288, 7.269 and 7.191 respectively.


MEAN SCORES OF PRE TEST, POST TEST AND ADJUSTED AMONG MINOR GAME GROUP AND CONTROL GROUP ON DEPRESSION


TABLE 1 ANCOVA table for the post-test data on Depression Source

Sum of Squares

df

Mean Square

F

Sig. (p-value)

Pre Depression

213.918

1

213.918

290.516

.000

Treatment Group

56.600

1

56.600

76.866

.000

Error

74.370

101

Corrected Total

357.760

103

.736

An examination of Table 4.2 indicates the effect of eight weeks minor game programme on depression levels of experimental deaf students from which we obtain a value of Fratio=76.866 which is significant. Since p-value for the F statistics is 0.000 which is less than 0.05, it is significant. Thus the null hypothesis of no difference among the adjusted post-mean for the data on depression in two groups may be rejected at 5% level. ANXIETY ANCOVA was used to assess whether or not the minor game group experienced a decrease in anxiety after the minor game programme intervention. The test revealed a significant interaction, F (1,103) = 3.94 for p < .05, There was however, a significant effect of F = 7.354 for p = 0.008. This indicates that participants in minor game group experienced a decrease in anxiety from pre- to post-intervention.

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FIGURE – 2 MEAN SCORES OF PRE TEST, POST TEST AND ADJUSTED AMONG MINOR GAME GROUP AND CONTROL GROUP ON ANXIETY


Figure 2 shows the graphical representation of the pre-test, post-test and adjusted means for the data on anxiety score in experimental and control groups. For the experimental group the values of pre, post and adjusted means are 36.38, 34.26 and 34.73 respectively. And for the control group the values of pre, post and adjusted means are 37.42, 36.02 and 35.57 respectively. TABLE 3 ANCOVA TABLE FOR THE POST-TEST DATA ON ANXIETY Source

Sum of Squares

df

Mean Square

F

Sig.a (p-value)

Pre-Anxiety Treatment-Group Error Corrected Total

2082.135

1

2082.135

829.5

.000

18.460

1

18.460

7.354

.008

253.518

101

2.510

2413.538

103

An examination of Table 4.4 indicates that the effect of eight weeks minor game programme on anxiety levels of experimental deaf students gives a value of 7.354 for F- ratio which is significant. Since p-value for the F statistic is .008 which is less than 0.05, it is significant. Thus the null hypothesis of no difference among the adjusted post-mean for the data on anxiety in two groups may be rejected at 5% level. A minimal exercise stimulus is generally enough to decrease anxiety, depression, and other negative moods while also improving indicators of psychological well-being. Activities increase positive psychological states (i.e., happiness, vigor, energy, calmness, positive engagement, revitalization) while also decreasing negative psychological states (i.e., depression, tension, tiredness, anger, and confusion).

The present study shows that there was a significant decrease in the depression and anxiety level due to influence of eight week minor game programme. Hence minor game programme could be included as one of the relaxation methods to reduce the level of depression and anxiety in deaf students.

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There are several conclusions which can be drawn from this study. First, this study confirms prior research in showing that minor game programme is an effective method for reducing depression and anxiety. This conclusion, in regards to this study, can be applied to deaf students. These results, however, have been generalized across all populations in prior research (Rethorst et. al, in press; Wipfli et. al, in press).


CONCLUSIONS AND RECOMMENDATIONS


REFERENCES Covassin, Tracey The relationship between self-confidence, mood state, and anxiety among collegiate tennis players. Journal of Sport Behavior, 01-SEP-04. Jagbir Singh, Naseem Ahmed, Zamirullah Khan, competitive anxiety among selected male sports persons, journal of sports and sciences, July 2007, vol. 30, no. 3, p. 14-18. Leigh, I., Robins, C, Welkowitz, J., Bond, R. (1989). Toward Greater Understanding of Depression in Deaf Individuals. American Annals of the Deaf 134, 249-254.

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Trivedi, M.H., Greer, T.L., Grannemann, B.D., Chambliss, H.O., & Jordan, A.N.(2006).Exercise as an Augmentation Strategy for Treatment of Major Depression. Journal of Psychiatric Practice, 12, 205-211.


ORIGIN AND PERFORMANCE OF THE NATIONAL RURAL HEALTH MISSION IN INDIA T.P. SHASHIKUMAR*; S.P. KIRAN**; K. RANGASWAMY*** *Lecturer, Karnataka State Open University, Manasagangothri, Mysore. **Senior Research Scholars, Department of Studies in Economics and Cooperation, University of Mysore, Mysore. ***Senior Research Scholars, Department of Studies in Economics and Cooperation, University of Mysore, Mysore.

ABSTRACT The National Rural Health Mission (NRHM) was launched in April 2005. The Union Cabinet, while approving the Framework for Implementation of the NRHM in July 2006, effectively provided the impetus for accelerating the Mission’s activities. The percentage share of the private expenditure near ¾ of the country, it means 73.75 per cent expenditure from private sector followed by public expenditure with 24.79 per cent. According to 2008-09 data the total Health Expenditure was more than 736 crores in the country. The category of Sub Center the highest approval was accorded to the state of Uttar Pradesh with 20,521 (14.05 per cent). The Non High Focus Smalls & UTs states contains only near to one per cent in all centers of the country. Even today the Government of India contribute allocated huge of amount resources to NRHM programme but the progress of NRHM its not approve the mark. KEYWORDS: Health, Income, Expenditure and Development. ______________________________________________________________________________

297

The National Rural Health Mission (NRHM) was launched in April 2005 to provide accessible, affordable, accountable, effective and reliable healthcare facilities in the rural areas of the entire country especially to poor and vulnerable sections of the population. The key strategy of the NRHM was to bridge gaps in healthcare facilities, facilitate decentralized planning in the health sector, and provide an overarching umbrella to the existing disease control programmes run by the Ministry of Health and Family Welfare. The Union Cabinet, while approving the Framework for Implementation of the NRHM in July 2006, provided a considerable degree of delegation of financial and administrative powers to the Mission. The Mission Steering Group (MSG) and the Empowered Programme Committee (EPC) were authorized to modify norms of approved schemes. The MSG was also empowered to approve financial norms in respect of all schemes and components that were part of NRHM. Though the Mission was launched in April 2005, the


INTRODUCTION


Cabinet’s approval of the Framework for Implementation of the NRHM in July 2006 effectively provided the impetus for accelerating the Mission’s activities. The cutting edge of the Mission’s programme and activities lies in the States and its success would, to a large measure, be closely linked to the effectiveness of the State Health Societies in implementation of the activities envisaged under the Mission. While the Ministry is ultimately responsible for providing the overall policy framework, guidance and acting on feedback, its efforts need to be complemented in equal measure by the States. The Mission seeks to initiate key changes in the health sector, varying from the encouragement and development of planning capacity and community participation to an emphasis on convergence with other indicators of a ‘good’ life - safe drinking water, sanitation etc. The long running disease control programmes have been brought under a more cohesive implementation structure and Indian Public Health Standards guiding infrastructure and facilities established.

OBJECTIVES OF NRHM  Reduction in child and maternal mortality.  Universal access to public services for food and nutrition, sanitation and hygiene and universal access to public health care services with emphasis on services addressing women’s and children’s health and universal immunization.

298

India has registered significant progress in the improving life expectancy at birth reducing mortality due to Malaria, as well as reducing infant and material mortality over the last few decades. In spite of the progress made, a high proportion of the population especially in rural areas continues to suffer and die from preventable diseases viz., pregnancy and child birth related complications as well as malnutrition. In addition to this old unresolved problem, the health system in the country is facing emerging threats and challenges. The rural public health care system in many states and regions an unsatisfactory state leading to pauperization of poor households due to expensive private sector health care. India is in the midst of an epidemiological and demographic transition with the attendant problems of increased chronic disease burden and a decline in mortality and fertility rates leading to an ageing of the population. An estimated five million people in the health and developmental HIV/AIDS, a threat which has the potential to undermine the health and development gains India has made since its independence. Non – communicable diseases such as cardiovascular diseases, cancer, blindness, mental illness and tobacco use related illnesses have imposed the chronic diseases burden on the already over stretched health care system in the country. In addition to this premature morbidity and mortality from chronic disease can be a major economic and human resource loss for India. The large disparity across the Indian places the burden of these conditions mostly on the poor on women, scheduled castes and tribes especially those who live in the rural areas of the country. The inequity is also reflected in the skewed availability of public resources between the advanced and less developed states.


BACKGROUND OF THE STUDY


 Prevention and control of communicable and non-communicable diseases, including locally endemic diseases.  Access to integrate comprehensive primary health care.  Population stabilization, gender and demographic balance.  Revitalize local health traditions & mainstream AYUSH.  Promotion of healthy life styles. VISION OF THE NRHM  To provide effective healthcare to rural population throughout the country with special focus on 18 states, which have weak public health indicators and/or weak infrastructure.  To increase public spending on health from 0.9 per cent GDP to 2-3 per cent of GDP, with improved arrangement for community financing and risk pooling.  To undertake architectural correction of the health system to enable it to effectively handle increased allocations and promote policies that strengthen public health management and service delivery in the country.  To revitalize local health traditions and mainstream AYUSH into the public health system.  Effective integration of health concerns through decentralized management at district, with determinants of health like sanitation and hygiene, nutrition, safe drinking water, gender and social concerns.  Addresses inter State and inter district disparities.  Time bound goals and report publicly on progress.

To gain insights into the functioning of NRHM, the present study was carried out with the objective of assessing to understand the performance of the National Rural Health Mission programme in India Over a of time. In this direction the secondary data has been collected from various reports of the Union Ministry of Health and Family Welfare, The National Planning Commission, National Rural Health Mission and National Health policies. The literature has also been gathered from published articles, books and government reports. The data analysis is carried out by using simple statistical methods like percentage and average as these will help us to understand the development situation at the grassroots level.

299

MAJOR OBJECTIVE AND METHODOLOGY OF THE STUDY


 To improve access to rural people, especially poor women and children to equitable, affordable, accountable and effective primary health care.


GOALS, STRATEGIES AND OUTCOMES OF THE MISSION The National Rural Health Mission (NRHM) has been launched with a view to brining about drastic improvement in the health system and the health status of the people, especially those who live in the rural areas of the country. The mission seeks to provide universal access to equitable, affordable and quality health care which is accountable at the same time responsive to the needs of the people, reduction of child and maternal deaths as well as population stabilization gender and demographic balance. In this process, the Millennium Development Goals (MDGs). To achieve these goals NRHM will: 

Facilitate increased access and utilization of quality health services by all.



Forge a partnership between the Central, State and the Local Governments.



To set up a platform for involving the Panchayati Raj Institutions and community in the management of primary health programmers and infrastructure.



Establish a mechanism to provide flexibility to the states and the community to promote local initiatives.



To develop a framework for promoting inters – sectoral convergence for promotive and preventive health care

The Table–1 clearly explain that the total health expenditure over a period of time (200506 to 20008-09) in the country. The percentage share of the private expenditure near ¾ of the country, it means 73.75 per cent expenditure from private sector followed by public expenditure with 24.79 per cent. The sources of External flow are only 1.46 per cent of the country. According to 2008-09 data the total Health Expenditure was more than 736 crores in the country. TABLE–1: PERCENTAGE SHARE OF HEALTH EXPENDITURE ACROSS THE VARIABLES. Public Expenditure

Private Expenditure

External Flow

Grand Total

2005-06

344461722

1150005214

21488587

1515955523

2006-07

406788591

1278405733

22402612

1707596936

2007-08

486852110

1426902392

26538964

1940293466

2008-09

586813788

1573935382

37015853

2197765023

1824916211

5429248721

107446016

7361610948

24.79

73.75

1.46

100.00

THE % Share

Note: THE- Total Health Expenditure.


Type of Expenditure

300

Sources: National Health Accounts of India.


Ministry Of Health And Family Welfare, (2009). Table – 2 presents that the various service guarantee programmes under NRHM in India. The various progrmmes viz., Sub Centers, Primary Health Centers and Community Health Centers. The category of Sub Center the highest approval was accorded to the state of Uttar Pradesh with 20,521 (14.05 per cent), followed by Andhra Pradesh with 12,522 (8.57 per cent), Rajasthan takes the third place with 10,742 (7.36 per cent), and Maharashtra contains 10,579 (7.24 per cent). All this put together constitutes about 37.67 per cent of the total Sub Centers of the country. In Primary Health Center also Uttar Pradesh stands at the top with 3690 (15.73 per cent),followed by Karnataka with 2195 (9.36 per cent), third place contains the Maharashtra with 1816(7.74 per cent). In the category of Community Health Center again Uttar Pradesh stands at the top level with 515 (12.04per cent), followed by Maharashtra with 407 (9.52 per cent), and third place takes two states jointly Rajasthan and West Bengal with 349 (8.16 per cent). The Non High Focus Smalls & UTs states contains only near to one per cent in all centers of the country. TABLE–2: THE VARIOUS SERVICE GUARANTEE PROGRAMME UNDER THE NRHM SL. State/U No. Ts

No. of Sub Centers

Sub Cente rs

No. Primary Health Centers

% Share of PHC

No.of Community Health Centres

% Share of CHC

(in %)

8858

6.07

1641

7.00

70

1.64

2 Chhattis garh

4741

3.25

721

3.07

136

3.18

3 Himacha l Pradesh

2071

1.42

449

1.91

73

1.71

4 Jammu & Kashmir

1907

1.31

375

1.60

85

1.99

5 Jharkhan d

3958

2.71

330

1.41

194

4.54

6 Madhya Pradesh

8834

6.05

1149

4.90

270

6.31

7 Orissa

6688

4.58

1279

5.45

231

5.40

301

1 Bihar


High Focus Non – North East States


8 Rajastha n

10742

7.36

1503

6.41

349

8.16

9 Uttar Pradesh

20521

14.05

3690

15.73

515

12.04

10 Uttarakh and

1765

1.21

239

1.02

55

1.29

High Focus North East States 11 Arunach al Pradesh

592

0.41

116

0.49

44

1.03

4592

3.14

844

3.60

103

2.41

13 Manipur

420

0.29

72

0.31

16

0.37

14 Meghala ya

401

0.27

103

0.44

26

0.61

15 Mizoram

366

0.25

57

0.24

9

0.21

16 Nagalan d

397

0.27

86

0.37

21

0.49

17 Sikkim

147

0.10

24

0.10

4

0.09

18 Tripur

579

0.40

76

0.32

11

0.26

12 Assam

12522

8.57

1570

6.69

167

3.91

172

0.12

19

0.08

5

0.12

21 Gujarat

7274

4.98

1073

4.57

273

6.38

22 Haryana

2433

1.67

420

1.79

86

2.01

23 Karnatak a

8143

5.58

2195

9.36

323

7.55

24 Kerala

5094

3.49

909

3.88

107

2.50

20 Goa

302

19 Andhra Pradesh


Non High Focus States- Large


25 Maharas htra

10579

7.24

1816

7.74

407

9.52

26 Punjab

2858

1.96

484

2.06

126

2.95

27 Tamil Nadu

8706

5.96

1215

5.18

206

4.82

28 West Bengal

10356

7.09

924

3.94

349

8.16

114

0.08

19

0.08

4

0.09

30 Chandig arh

14

0.01

0

0.00

2

0.05

31 D & N Haveli

38

0.03

6

0.03

1

0.02

32 Daman & Diu

22

0.02

3

0.01

1

0.02

33 Delhi

41

0.03

8

0.03

0

0.00

34 Lakshad weep

14

0.01

4

0.02

3

0.07

35 Pondiche rry

77

0.05

39

0.17

4

0.09

146036

100.0 0

23458

100.00

4276

100.00

Total

Sources: National Health Accounts of India, Ministry of Health and Family Welfare, (2009) THE FIVE MAJOR APPROACHES UNDER NRHM ARE GIVEN BELOW A. COMMUNITISATION– For ensuring better community participation; committees / organizations have been formed at various level viz. Village Health & Sanitation Committee at village level, Panchayati Raj Institutions at village/block level, Rogi Kalyan Samitis at PHC, CHC and the ASHA a community volunteer for every village.

303

29 A & N Island


Non High Focus Small & UTs


B. FLEXIBLE FINANCING – For improved finance, the mission has brought all the schemes of health & family welfare within the overarching umbrella of NRHM. Financing through the NRHM budget head provide the much needed funds to the districts to facilitate better functioning of health programme. Based on needs of the district, funds are allocated to states. The untied funds are also available under NRHM at various levels. The expenditure on public health has been raised from 0.9 per cent to nearly 3 per cent of GDP. C. IMPROVED MANAGEMENT THROUGH CAPACITY BUILDING– Management skill at block, district & state levels have been increased under NRHM. Post of public health managers has been created at district level and accountant at block level for accounts work. Various NGOs are involved in capacity building and continuous skill development of health functionaries at various levels is being carried out. D. MONITOR PROGRESS AGAINST STANDARDS – Progress of activities is being monitored according to the Indian Public Health Standard. Health facility surveys are conducted at regular intervals to monitor facilities available at sub-centres, PHCs and CHCs. Independent monitoring committees are also being formed to monitor progress. E. INNOVATION IN HUMAN RESOURCE MANAGEMENT – To increase the pool of human resource, additional manpower like nurses, MO are being provided at PHC and CHC. Local residents of remote areas are trained and developed for providing basic health services. Multiskilling of health functionaries especially of doctors and paramedics is being carried out so that a person could carry out multiple tasks.

REFERENCES Bajpai, N. and Goyal, S. (2004). Primary Health Care in India: Coverage and Quality Issues. CGSD Working Paper No. 15, pp. 1-39. Gill, K. (2008). The National Rural Health Mission: A View from the Stands. Internal Secondary Evaluation of NRHM undertaken for the Planning Commission of India, pp: 1-18.

304

The National Rural Health Mission was launched in April 2005. The Union Cabinet, while approving the Framework for Implementation of the NRHM in July 2006, effectively provided the impetus for accelerating the Mission’s activities. The various progrmmes viz., Sub Centers, Primary Health Centers and Community Health Centers. The category of Sub Center the highest approval was accorded to the state of Uttar Pradesh with 20,521 (14.05 per cent) followed by Andhra Pradesh with 12,522 (8.57 per cent). The sources of External flow are only 1.46 per cent of the country. According to 2008-09 data the total Health Expenditure was more than 736 crores in the country. The expenditure on public health has been raised from 0.9 per cent to three per cent. In recent years NRHM its very important programme to uplift the status of human being.


CONCLUSION


Majumder Amlan & V. Upadhyay (2004). An Analysis of the PHCS in India with Focus on Reproductive Health Care Services. Appeared in Artha Beekshan, Vol-12(4) pp-29-38. Ministry of Health and Family Welfare (2009). National Rural Health Mission State Data Sheets as on 31.12.2008. Status of NRHM, updated by states as of September –December, 2008. Published on 16 January 2009, pp: 1-145. National Rural Health Mission. (2005). Ministry of Health and Family Welfare, Government of India, New Delhi. Retrieved December 5, 2008, from NRHM Website: http://mohfw.nic.in/nrhm.htm.

305


Williams Johnson (2010). An Analysis of Health Care Assessments used for sustaining Communities. Global Journal of Health Science, vol-2(1), pp: 89-95.


THE PERCEPTION OF THE PARLIAMENTARIANS ON THE FACTORS CONSIDERED FOR THE APPOINTMENT AND PROMOTION OF POLITICAL LEADERS IN TANZANIA NORMAN A.S.K* *Faculty, Public Administration and Management, Mzumbe University, Mzumbe, Tanzania.

ABSTRACT The parliament is acknowledged as the pillar of demonstration of democracy the world over. Its strength emanates from the fact that it represents the wishes of the people. This paper presents the findings on the perception of the members of parliament on the factors considered for the promotion and appointments of the political leaders in Tanzania. The main objective of the paper is to find the extent to which proper appointments and promotion would lead to the furtherance of development through good governance. It assessed the extent to which competence as a credential is considered. The findings utilised multivariate approach, and employed interview, documentation and questionnaire as leading data collection strategies. The analyses of data have been made using SPSS. The total sample for the study was 120 members of parliaments, which was attained through purposive sampling such that each region had at least two respondents. The findings reveal that most members of parliament perceive that competence is least considered in the appointments and promotion of political leaders. The parliamentarians opine that other factors such as political affiliation, religion, corruption, and know whom, are the leading credentials in influencing appointments and promotions. KEYWORDS: appointments, promotion, competence, political appointees. _________________________________________________________________________

There are however, varied ways of doing the same in different cadres. The cadres can be grouped in various ways. However, for this study we identify two main cadres: professional and political. Political appointments cadre refer to all appointments that depend on the authority in power

306

Appointments and promotions are crucial in enabling organisations achieve their own objectives. Before we indulge into the topic, it worthy to define some key aspects of the discussion. Norman (2006: 112) asserts that it is prudent to define key concepts at the introduction part of the literature to allow all people those that are professional on the subject matter and those that are none professional to understand the parameters of discussion. An appointment refers to the nomination of new tenure to a defined vacancy or job, and it is normally done by authorities vested with power to do. Promotion is defined as advancement from one professional rank to another rank, which is normally superior to the former in both authority and financial privileges.


1.INTRODUCTION


without subjecting the appointees to the requirements that are known, which could give a chance to other people to vie for the same had the vacancies been declared. These appointments include ministerial posts, regional commissioners, district commissioners, and members to various boards of directors, among others. In this, cadre we exempt appointments, which are subjected to professional interview, and the list is drawn, thereafter the names are presented to the appointing authority for final nomination. We assume that the boards and organs that perform the interviews are professional bodies and thus credentials are observed. The second cadre of appointments and or promotion is those, which are purely on declared qualifications. These appointments are normally advertised through various media, and qualifications are presented. The appointed are then subjected to professional interview, which ends the process with the most suitable being nominated. Both appointments and promotion are crucial for the enhancement of the development if are made for attaining development (Norman, 2011). The pertinence lies on the credentials put to attain any person. If credentials that are nondevelopmental are considered, there is a possibility of nations, the world over, to keep on suffering due to rampart poverty. It is anticipated that human resource is a key to development and therefore placement must be competence based (Norman, 2010; Ehrenberg and Smith, 1994). This study forms part of the series of studies that entail to find out credentials that are considered for appointing, and promoting political leaders or executives. Why parliamentarians? The study sought to find perception of the people, and members of parliament as peoples’ representatives were chosen to represent the views of the people. Other cadres that would be considered include the elites group, and the presidents of five countries of Tanzania, Kenya, Uganda, Burundi and Rwanda, which are the main appointing authorities in these countries. The rest of this part is organised as follows: Literature review, materials and methods, findings, discussion of findings and the conclusion and recommendations.

Human capital represents the human factor in the organisation, which include the combined intelligence, skills and expertise that gives an organisation its distinctive character (Bontis et al, 1999). In addition, we expect that leaders (human elements) in the organisation be capable of learning, changing, innovating and providing the creative thrust which if properly motivated can ensure the long-term development of the organisation. The importance of credentials for appointing political leaders as human capital cannot be undermined (Smith, 1776; Daft and

307

Development is the prime objective of any regime that assume power to rule any country, territory or gubernatorial and in order to achieve this, systems of good governance are put in place for implementing the programs that would create peace and hence development (Norman, 2005; 2010). Systems of good governance, which are now considered the pillar of development, do essentially refer to good people in various places of government leadership and executions. The qualities of the people put in power and or in other posts are what form the so-called good governance. We know, however, that in most case when we talk of good governance we seem to look at it with the view of its ability to function properly, and we seem to ignore the quality of individuals serving in the same institutions (Norman 2011: 66; 2005:78). Leaders constitute human capital, as it is an asset in production.


2. LITERATURE REVIEW


Weick, 1984; Norman, 2000). The political leaders do put in place the policies national wide. It is from the policies, we draw programs and finally implementation is made. Thus, the quality of the policies normally dictates the type of programs and finally the implementation. Some institutions such as colleges have come up with criteria for promotion and appointments. Generally, each appointment or promotion should be conducted to attract or retain faculty whose scholarly achievements, working ability, and qualities of the institution citizenship are superb. Appointment committees should seek the best candidate at the rank under consideration. Promotion committees should determine whether the candidate is a recognized leader among scholars at the same stage of career development. Committees should consider whether the public or government is served better by promoting the candidate or by searching for a replacement. In most universities, the primary criteria for promotion are the candidate’s scholarly research, teaching, and service to the University. When the conferral of tenure is at issue, the criteria do also include the importance of the candidate’s scholarly research, citizenship and teaching to the academic program of the department (GU, 2012:16). Competent personnel would always have ability to cope with the change. The world today is dynamic, and thus need leaders and executives who are capable of managing changes. Armstrong (2001:266) asserts that change is inevitable and suggests that the first step is to analyse the potential impact of change by considering how it will affect people in their jobs or in their daily life. It can be noted that ability to analyse change and influences to changes need an adept mind capable to mitigate the changes for enhancing development.

3. MATERIALS AND METHODS The study was a case study, which was conducted in Tanzania and employed mixed methods of data collection strategies and designs, where both qualitative and quantitative methods were used. Questionnaires, interviews, documentation and observation were the leading data

308

In this view Armstrong (2001:389) reveal that competence based approach means that the competencies defined for a role are used as the frame work for selection process. Roberts (1997) further suggests that the benefits of taking a competencies approach is that people can identify and isolate the key characteristics which would be used as the basis for selection, and that the competencies therefore become a fundamental part of the selection/appointments. The totality of arguments given by various referred authors suggests that competency is the key in selection, appointments and promotion. One should not expect weak leaders to bring forth development. Hence, it is crucial to have competence-based credentials as the key to promotion and appointments of political leaders (King, 2012: 67; Armstrong and Baron, 1998).


Beer et al (1990) provides that the achievement of sustainable change/development require strong commitment and visionary leadership from the top. What Michael Beer and his colleagues suggest would always be true when those required to manage change and bring sustainable development are competent to do so. They must be educated in the area to which development is expected.


collection strategies. The sample of the study was 120 members of parliament drawn from the population of 326 members. The sample was drawn using purposive sampling, which ensured that at least three members were drawn from each region; it was followed by simple rand sampling to get the three members. Most regions in Tanzania have more than six members of parliament. The essence of using purposive sampling was to ensure that each region is represented. Simple random sampling was made to get the readily available members in that region. The findings have been analysed using SPSS and Excel tools of analysis. Percentiles and graphs have been employed to summarize the data. 4. FINDINGS The findings for the study have revealed diversified responses among the parliamentarians. There have been two main categories of responses: Those who opined that competencies are taken into consideration and those who opined that other factors are the key in the appointments and promotion. The findings have been presented in the orderly manner to reflect the questions that were asked to the respondents. The key questions were two: 1) what do you think are the factors considered for the appointments of political leaders such as ministers, regional commissioners, district commissioners, permanent secretaries and regional administrative secretaries? 2) What would you recommend to be factors used for the appointment of political leaders? Table 4.1 summarises the responses of the parliamentarians. TABLE 4.1: DESCRIPTION OF FACTORS CONSIDERED FOR APPOINTMENT AND PROMOTION

1.

Competence

2.

Response for

Sample

Percentage

24

120

20

Tribalism

8

120

3.

Ethnicity

12

120

10

4.

Corruption

36

120

30

5.

Friendship/know who

116

120

96.6

6.

Religion

116

120

96.6

6.6

Source: Field data. The responses indicate that six factors are perceived to influence appointments and promotion in Tanzania; and that competence is ranked the fourth factor.


Name of the factor

309

S/NO


FIG. 1

140 120 100 80 60 40 20 0

Response for Sample

Religion

Friendship/kn ow who

Corruption

Ethnicity

Tribalism

percentage Competence

percentages

Description of factors considered for appointment and promotion

factor

Source: Field data. A figure describing the responses on the factors considered for the appointment of political leaders in Tanzania. In Tanzania politicians perceive that religion and know who, are the key factors influencing appointments and promotion of the political leaders. The second question entailed to find out what factors would the parliamentarian wish to be considered for the appointment and promotion of the political appointees in Tanzania and Africa at large. The responses have been captured and there are two categories of responses on these factors. The factors include those related to morality and the second set of factors is those related to professional/educational competence. The responses are summarised in table 4.2 and presented in the figure 2. Five responses could not write the questionnaire on this question.

Description of the factor

Those in favour

Percentage

1.

Well educated/have skills for the job

115

95.0

2.

Committed to work

85

70.8

3.

Incorruptible

85

70.8

4.

Humble

70

58.7

5.

Decent/wise

69

57.5

310

S/NO


TABLE 4.2: DESCRIPTION OF FACTORS THAT AMOUNT INTO COMPETENCE


6.

Knowledge of territory/area/country

67

55.8

7.

Problem solver

54

45.0

8.

Decision maker

51

42.5

9.

Have vision

50

41.6

10.

Not fearful

50

41.6

11.

Fear for God

50

41.6

12.

Impartial

46

38.3

13.

Have mission

40

33.3

14.

Passionate

25

20.8

Source: Field data. The responses indicate that parliamentarians opine that several factors should be considered when the appointing authority exercises its power. The most important include education/skills, committed to work, incorruptible, decent/wise, knowledge of the country, problem solver, and decision maker among others.

311


FIG. 2: FACTORS THAT SHOULD BE CONSIDERED FOR THE APPOINTMENT OF POLITICAL LEADERS IN TANZANIA


Source: Field data, the figure indicates that education/skills, commitment to work, and incorruptibility are the leading factors that should be considered for the appointment of political leaders as opined by the parliamentarians. 5. DISCUSSION OF THE FINDINGS The findings of the study suggest that most of the parliamentarians perceive that the most important credential for the appointment of the personnel to save in various political posts is affiliation/friendship/ know who, and religion/faith. The two factors attained the highest score which is 116 nominees representing 96.6 of the total sample. Corruption was ranked third as an affluence of the political appointments, and has attained 36 nominees, which represents 30% of the total respondents. Competence, which seem to be the crucial factor in the appointments of various cadres, yet in Tanzania it is perceived to take less weight as it attained 24 nominees, which represents 20% of the sample. Ethnicity and tribalism attained 12 and 8 nominees, which represents 10% and 6.6% respectively. From the findings, we learn that in Tanzania tribalism and ethnicity are perceived not to hold water. Equally, competence is less utilised in the appointment of the political leaders. This certainly suggests that development would automatically face an internal challenge as opposed to external. Normally the difficulties most countries are likely to face are external in nature, which include unbearable conditions of the lending institutions, such as the International Monetary Fund (IMF), the World Bank (WB), and several lending financial institutions.

Education/skills credential was considered in several parameters. They indicated that leaders must have relevant skills to execute the post they are appointed. This may not necessarily require university degree in the area of competence but a proven successful experience in that area. Mistakes must be an incident of accidental, not an obvious resulting from incompetence. Most of the time, experienced people in most parts of the world refer to people who have worked for many years irrespective of the successful performance in the same. The emphasis here is that an

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Education/skills as associated to personnel have been ranked as the crucial factor that indicates competence as 115 nominees representing 95% were in favor of it. The first five factors that are worthy to be considered for the appointment include commitment to work, ability to resist corruption, being humble, demonstration of wisdom/decency, ability to solve problems, ability to understand the area or country to which the appointed will discharge the responsibility. Other factors that are perceived crucial include, ability to share vision for the society, ability to handle difficulties without fear or status quo, and finally in the list of factors, which attained more than 50 nominees, is the ability to comprehend to God’s rules and commandments.


Generally, the development and utilisation of competent personnel is within the abilities of nations of Africa. Competence has to be the key in the promotion and appointment of the various leaders of these countries. The findings further, has realised what parliamentarians consider the factors that should be considered for the appointment and promotion. To them, these factors are what form the so-called ‘competence’. It has been noted that several factors are perceived to be crucial for the appointment of the leaders in various organisations. However, the most pressing factor should be education or skills. The two terms were used interchangeably.


experienced person must be weighed against his proved record on the organisations that had ever saved. Commitment to work refers to the desire and act to do what it takes to achieve the objectives. It is more than mere being in the office. It is ability to work and see the organisation achieves more and more. In some places, commitment simply means dwelling in the office in the respective job hours. No. Commitment to work includes upholding the values of the organisation through enforcement of rules, strategies, and plans for achieving the desired (already stipulated expectations) and non-stipulated objectives but which renders more benefits to the organisation or country. Incorruptible refers to inability to be swayed or influenced by motives other than those with merit to the society you are leading. It includes being resistant to drivers of corruption such as monetary transaction, receive of assets, non-monetary benefits such as grant of higher authority/title/employment. The emphasis here is being focused not driven out of the prime mission of the organisation because of what you have received from any other part to act contrary to the appended objectives or righteousness as perceived by the community or stipulated in the laws of the land. The world today has emphasis on the money transfer as a leading persuasion factor in corruption. However, a mere deviation of the merits of the society to selfaggrandisement is corruption. Humble refers to being low, not pride. The whole self of giving priority to people you save rather than being self-centred. It is an attempt of valuing other people though they seem to have low ranks in societies. One would always save people better when is keen to listen to the poor, the rich, the educated and non-educated. Such sense of being pathetic required humbleness.

Problem solver refers to ability to rectify situations, solve problems in the society, wishing to see a problem free society. Leaders who are problem solver would always find problems and set strategies and plans to solve the same, for improving the society livelihood. It is from this we assert that we are leaders for societal problem solving. If the society is facing problems, it is the duty of leaders to will to solve them. Literally, when problems of the world are none existent, the world will change to be heaven. The problems of society qualify the earth we live to be the world. If the evils and evil doers were removed in this world, the remaining would be heaven. If that will happen, then we would not need political leaders, police force, army and the likes. Why should we employ people to arrest the situations while there is nothing to arrest?

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Knowledge of the country -the respondents felt that an appointed person must be familiar with the country to which is serving or working. Knowledge of the area includes understanding problems, nature of the people, anticipating the solutions to problems, people to work with, their culture; what they are able to do, and what they are not able to do.


Decency refer to ability to manage oneself, organised, keen to make judgements, wise, able and all that it takes to tackle issues calmly. The factor entail to reveal that education attained at various colleges does not necessarily render wisdom or ability to solve and handle problems of the society. In most cases, we cannot say all educated are wise. Henceforth, wisdom is associated with gift of nature; though it can also be acquired through training.


Decision maker refers to ability to organise inferences, and accordingly weigh the way forward. In most African countries ‘decision maker’ refers to be quick to decide, be blunt, let the people know what your stand on the issue before you is. Do not put people into suspense. Let them know your partaking on the matters of the society. It entails to mean that leaders should not shy from making decision for any reason. Equally, there are other factors, which connote pressing need and were opined by more than a half of population. The factors include vision, and determination (none fearful). 6. CONCLUSION We are in a position to conclude that the perception of parliamentarians regarding factors considered for the promotion and appointments of political leaders in Tanzania are not linked to competence. Most of the factors are moral in nature. The factors that are perceived to be considered include religion, friendship or know who or affiliation, and corruption. The two factors, which carried high weigh, are religion and affiliation/friendship/know who. The 116 respondents opined the factors, which is equal to 96.6%. Good governance is solely dependent on the quality of the people managing governments. In this regard, there is strong relationship between the three facets: Good governance, development and the quality of leaders/personnel. This findings support what Norman (2012) noted in the study on the perception of elites regarding their perception on the factors considered for the appointment and or promotion of political leaders in Tanzania. It is worthy to reiterate that the development of African continent can be made a reality if there is a signage between the tripartite: good governance, development, and leadership. It is actually good leadership which brings about systems of governance and ensures thorough operationalization or functioning of the systems. Preaching good governance without the emphasis of good leadership and the modality of getting them would mean fetching water from the sea to fill the pothole and expect the sea to dry. 7.

REFERENCES

Armstrong, M (2001). Human resource management and practice. McGrawill,

London.

Beer, M, Eisenstat, R and Spector, B (1990). Why change programs do not produce change, Harvard Business Review, November –December, pp.158-166 Bontis, N, Dragonetti, NC, Jaconsen, K and Roos, G (1999). The knowledge tool box: review of the tools available to measure and manage intangible resources, European Management Journal, 17(4), pp. 391-402

a

Genesis University (2012). Proposed credentials for promotion. Genesis University Norman, A.S (2005). Development is a war: Challenges and realities. Lefkosia,

Cyprus.


Armstrong, M and Baron, A (1998). Performance management: The new realities. Institute of Personnel and Management, London

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Norman, A.S (2006). Managing development in Africa what it takes? Justbelieve, Belmont.


Norman, A.S (2010). The challenges of managing elections in Africa. Journal of management dynamics, Vol. Norman, A.S.K (2012). Factors influencing appointment of political appointees in Tanzania. International Journal of Multidisciplinary Research Vol.2 Issue 7, pp. 65-75. Norman, A.S.K (2011). The role of elections in boosting good governance. Journal of Research in Peace, Gender and Development Vol. 1(11) pp. 315-319. Roberts, (1997).

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Smith, A (1776). The wealthy of nations. John Murray, Edinburgh.


THE NARRATIVE TECHNIQUES IN THE NOVELS OF KAMALA MARKANDAYA J. RANJITHKUMAR* *Research Scholar, Department of English, Sri Chandrasekharendra Saraswathi Viswa Mahavidyalaya, Enathur, Kanchipuram.

INTRODUCTION This article aims to present the various narrative techniques of Kamala Markandaya. She has got excellent modes of expression and narration; she handles each novel with remarkable strokes of plot and construction. Each novel is based on the contemporary knowledge of social life. Kamala Markandaya is noted for her meticulous details of life around and the characters more life-like past memories come out spontaneously in her novels. She depicts the real picture of life; she has a heart for the poor and the helpless. She is very sympathetic in her approach to life; she uses first person narration and flashback method. Her plot construction is neat and compact. She has undoubtedly crazed for the English language.

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Markandaya, who happens to be a conscious artist moving in her well-drawn circle with sure steps and perfect poise, is unquestionably aware of the subtle dividing line between ‗story‘ and ‗plot‘ and pays due attention to both. (Which we will examine hereafter as ‗narration‘ and ‗plot-construction‘). She may not be so profound in her art of characterization as Anita Desai and Arun Joshi (who portray their characters with a wonderful psychological insight), her technique may not have the complexities of Raja Rao and G.V.Desani, and her outlook upon life may not be so sound and inclusive as that of Mulk Raj Anand and R.K.Narayan, but she has greatly succeeded in evolving her own mild-natured technique and vision of life and her novels tend to be an index of the current age in all its manifestation---sociological, political, economic, communal and cultural. Her single-minded devotion to the art of fiction-writing has earned for her worldwide recognition and reputation. Reviewing her novel, Possession (1963), Robert Payne once remarked about Indian-English novelists in general and Kamala Markandaya in particular as follows: ―They now write superbly, with a command of their unique rhythms and an


Kamala Markandaya‘s novels of contemporary Indian life stand out for their characteristic modes of expression and narration. Kamala Markandaya‘s skill as a novelist is vividly reflected in the remarkable handling of story and plot, in the pointedly relevant social commentary on events and characters, and in the deft arrangement of the raw material at hand. The slight yet subtle distinction between ‗story‘ and ‗plot‘, as aptly pointed out by E.M. Forster, the noted English novelist must be kept in mind while approaching the technical art of Markandaya: ―We have defined a story as a narrative of events arranged in their item sequence. A plot is also a narrative of events, the emphasis falling on causality. ‗The king died and then the queen died‘, is a story. ‗The king died and then the queen died of grief‘, is a plot.‖ (E.M.Forster, p.450)


understanding of the potentialities of the sentence that sometimes shame us. It is self-conscious writing, but they know what they are doing to a hair‘s breadth.‖(Robert Payne, p.34) Taking into account Markandaya‘s overall contribution to Indian novel in English, Uma Parmeswaran has rightly observed that – ―She has artistic instinct enough to know where the roots are but not the artistic care to keep in constant touch with her subject. Her chief merit lies in that she presents Indian ways of life without authorial commentary.‖(Uma Parameswaran, p.92) True, Markandaya does not indulge in ‗authorial commentary‘ but there are certain leading female characters like Mira and Anasuya who have a remarkable resemblance with their creator, and hence we do not find complete detachment in her fiction, especially in her earlier novels. Mere description of scenes or situation is of a dilettante, but narration of events in sequential order is the task of an artist. In reality, we discover both description and narration in the novels of Markandaya. She is naive and idyllic when she writes such descriptive passages as the follow: ―In the valley sirens were blaring, modern muezzins announcing the end of the working day. The distant humming slackened, like a run-down dynamo. After the daily pounding, blasting and drilling the air seemed strangely still, the tremors that travelled up from the valley and were felt even here, finally subsided. In the mounting silence the purl of the river grew stronger.‖ (The Coffer Dams, pp.67) She, however, does not grow eloquent like Thomas Hardy in such descriptive passages, and very swiftly resort to short, crisp and racy dialogues, as in the following: ‗The party?‘ ‗All alone, Lennie?‘ ‗All alone, darling. Except for cook‘. ‗Can‘t stand the man. Where‘s Das, Das!‘ he shouted ‗Millie‘s borrowed him‘, Helen said. ‗what for?‘ ‗Millie‘s‘. ‗My God‘, he said, ‗do we have to go?‘ ‗Only if you want‘, (Ibid. p.67)

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The narration in Kamala Markandaya‘s first novel, ‗Nectar in Sieve‘ (1954), takes place through the mouth of its principal female character, Rukmani, and that too in the first person. Rukmani is seen here reminiscing her own past, since she was twelve, when, when she was married as a child bride to Nathan, a village boy. The novel is thus written in a reminiscential mood, and Markandaya‘s techniques rises to meet its tension and complexities. Rukmani‘s recollection of her life ends exactly where it begins, winding up the story in a circular shape. The story is straightforward and divided into two parts,-the first part telling us about Rukmani‘s unfortunate married life and the second one depicting the tortuous wandering of the couple in search of a job in the city and their disappointment. Writing of the novel‘s technique, K.S.Narayan Rao has remarked as under: ―In a detached and yet not wholly unemotional


This is the usual mode of her narration, which furthers the story step by step, sentence by sentence. The above truncated conversation between Clinton and his wife Helen in The Coffer Dams reveals the truth that Millie has arranged for a party to which the Clinton must go. In Markandaya‘s novels, dialogues and conversation occupy larger space than scenic descriptions do, and she apparently adopts this mode of approach to effectively tell her tale, to further the plot of her novel, and to reveal the socially relevant situations and characters.


manner, Rukmani recalls the events of her life in a chronological manner. The dream-like quality of her recollection is particularly impressive. Rukmani recaptures the tragic intonation of her life, lyrical manner. She misses nothing, not a detail. Divided into short chapters, which have a psychological advantage of keeping the reader‘s the story purports to be a narrative of events in the life of narrator.‖(K.S.Narayana Rao, P.33) The end of the novel is tragic, and it seems that the novelist cleverly contrived it in order to elicit the reader‘s sympathy for poor and the destitute. The overall impression of the novel on the reader‘s mind is that the story is somewhat tampered with and that the plot has not been allowed to grow naturally. R.S. Singh has rightly drawn our attention to this fact comments thus: ―The writer has probably exaggerated the circumstantial pressures on the narrator to create tragic effects, but the fact remains that the novel is, on the whole, melodramatic. On gets the impression on going through the ordeals of Nathan and Rukmani that the whole thing is engineered, contrived a little too cleverly, rather than developed on chance events alone.‖(R.S.Singh, p.138)

The next novel, ‗A Silence of Desire‘ (1960), takes to the method of third-person narration and in this makes a noticeable departure from Markandaya‘s previous two novels. Also, it presents Dandekar is depicted as hovering between the twin pulls of his love for his wife Sarojini and children and his jealousy for the Swamy. The main interest of the novel lies in the revelation of the complex character of Dandekar as well as in the conflict between science and superstition represented by Dandekar and his wife respectively. There is a wealth of suggestion in this novel, as nicely pointed out by Prof.K.R.Srinivasa Iyengar: ―Perhaps her most ambitious novel, A Silence of Desire, dares The invisible and the writing is competent enough to forge here

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Her next novel Some Inner Fury (1955) is also a female-dominated novel where the narrator-heroine Mira recounts the tale once again in the first person. But Mira is a young, lovable woman, not a haggard like Rukmani. Mira, a westernized lady of the upper class society, opens her little silver-box one day and finds the scrap of material she had once torn from her lover Richard‘s shirt after the nationalists mob had attacked him during the ‗Quit India Movement‘ of 1942. She is at once transported into her past and recounts all the happenings of her life right from her first meeting with Richard to her separation from him for good. The story is quiet gripping unto the very last and remarkably recaptures the tense moments of Indo-British relationship during the pre-Independence days. There are some fine autobiographical flashes in the work, and the reader is tempted to believe that Mira is no one else but the author herself. Prof. R.S. Singh has streamed their points of resemblance in the following: ―Their dates of birth, interest in creative writing, birth in the Brahmin family and visits to England in connection with publication and their infatuation with some English-man (Markandaya herself is married to Mr. Taylor, a Britisher) lead one to believe that they are one and the same.‖(Ibid. p.150)


In the novel under scrutiny, the narrative highlights Rukmani‘s reactions to the past events of her life and the action is subordinated to her thoughts and feelings alone. The opening of the tannery brings humming industry to the otherwise sleepy village, though it might have created miseries for Nathan and Rukmani. So, her reaction to the running of tannery is partly impressionistic because they do not constitute the whole truth.


and there coils of intricate suggestion that almost seem to bridge the chasm between matter and spirit, doubt and faith.‖(K.R.Srinivasa Iyengar, pp.442-3) Her next novel Possession (1963), the narrative is once again, as in the first two novels, managed by a sensitive woman, namely by Anasuya, who is a writer of stature and who frequently visits England in connection with the publication of her books. Anasuya can thus establish her contact with the developments of the story in England where Caroline, a possessive woman of wealth and influence, has whisked away Valmiki, the peasant-boy of India, in order to avoid his touch with his spiritual teacher, the Swamy. The scene keeps shifting here from India to England and America and back to India again. Prof. Iyengar sees ―an extravagance‖ (Ibide, p.445) in the shifting scene and situation. Unlike the first two novels, possession does not have a central figure as the narrator of the story. Anasuya,like the author herself, remains largely detached and objective. Her detachment stands her in good stead as a narrator of events.

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The Coffer Dams is a moving narrative of ―the East-West encounter or the problems of industrialization‖ as Uma Parmeswaran puts it. (Parameswaran, p.103) Herein we witness a profound ―understanding of human motivations, and a bold experimentation in prose style‖.(Idem) The Clinton-Mackendtick engineering firm comes to India to construct dams across a South Indian River, and strives to complete the work before the onset of the monsoon. India engineers like Krishnan and local technician extend their helping hand to the project. But the dreaded monsoon comes, creating a dramatic situation of deep suspense. The dying tribal headman, Bashiam, provides the clue for the safety of dams. The art of characterization attains a new height here, and the novelist‘s technique succeeds in evoking a proper atmosphere for the dam-construction and the onset of rainy season. Markandaya offers technical descriptions of the construction work and the machines and the cranes. Prof. Iyengar corroborates the statement when he remarks thus: ―There is an eerie quiet efficiency in the technical description, and there is an eerie, quality, in the early-morning adventure in bird-catching. Kamala Markandaya writes with increasing mastery of the medium, and although there is some obvious. Contriving and some ingenious formulations of contrast, the novel as a whole is a deeply disturbing protest


All the novels that follow – A Handful of Rice (1966), The Coffer Dams (1969), The Nowhere Man (1977), Two Virgins (1973), The Golden Honeycomb (1977), and Pleasure City (1982) are third- person narratives. Barring Two Virgins, we do not find domineering women characters in any other novel, and even in Two Virgins everything seems to be messed up. Some scholars feel that the novelist should have presented here the narrative through the mouth of Lalitha, the elder sister of saroja, whose viewpoint forms the real fabric of the work. There is no solid story or compact plot, and in this matter it resembles the first fictional flower of Markandaya‘s genius. In A Handful of Rice, the narrative thread is controlled by Ravi, the principal character in the story. Prema Nandakumar is of the opinion that this novel is clearly based on Bernard Malamud‘s The Assistant (1957), wherein Frank comes to steal from a Jewish grocer‘s story but stays on to assist the latter and wins his daughter‘s (Helen‘s);love. A very similar situation obtains in Markandaya‘s novel too. Ravi chased by the police enters a tailor‘s shop where he is beaten and bruised and yet he gets the love of Nalini the tailor‘s daughter. Ravi assists the tailor and marries Nalini in due course and becomes the head of the family after the death of the tailor Apu.


against the onslaught of modern technological ruthlessness against the simplicity and humanity of an earlier order of life.‖(Iyengar, p.449) In the Nowhere Man, Markandaya depicts two Indians—Srinivas and his wife Vasantha—as victims of British tyranny and terrorism. Afraid of undue harassment at home, the couple leaves for Britain and settles down there for good in an uncongenial surrounding. They are treated as ‗aliens‘ there, especially by Fred and his companions. The end of the novel is tragic, and the novelist‘s vision of life is evidently pessimistic to the core, recalling Hardy to our minds. There is also a moral in the story—that too much of hostility is harmful to both the East and the West. Mrs. Fletcher, Mrs. Glass and the men in the pub provide ―a chorus in the neighbours‖ (Margaret P.Joseph, p.78) of Srinivas, and the chorus recalls the practice of Greek tragedy and that of T.S.Eliot in quiet recent times.

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The latest novel of Markandaya, Pleasure City (1982), employs the third-person narration. Neatly divided into 51 chapters of varying length, the work highlights the British cooperation with India after her political freedom, participating in the the latter‘s development plans and programmes and constructive expansion. The multi-national organization called AIDCORP takes up the invitational assignment of building a holiday pleasure-resort known as Shalimar in a coastal village of South India. Shalimar is successfully completed with the willing co-operation of Britishers and Indians and offers grand opportunities of familiarity and friendship between Tully, one of the directors of AIDCORP, and Rikki, a hardworking Indian boy of barely sixteen. These two further cement their friendship by working together in the renovation of Avalon, that deserted castle which was once built by Tully‘s own grandfather who was then Proconsul to the Southern province. Until the completion of Shalimar, the novel seems to the moving in the right direction, but once the work is over, it becomes highly fragmentary and episodic in character. A kind of Solution sprit pervades it thereafter, and the content appears to the fragile and slippery. Without solid content, technique goes awry and structure becomes loose and lax.


As already mentioned, Two Virgins is undoubtedly a hopless novel with a slight theme and a low-keyed technique. Even the details furnished herein are loose and incoherent. The narrative is meandering, and the plot ill-conceived and mismanaged. One, therefore, feels great relief when one leaves behind this frustrating novel and goes forward to the historical narrative of The Golden Honeycomb (1977). This stupendous work is divided into three parts-and each part being preceded by an epigraph, contains a prologue quoting from Lord Randolph Churchill and an epilogue referring to the formation of the Indian Union after our Independence, and minutely portrays at least three generation of Indian History as represented by Bawajiraj I to III. The attitude of Britishers and the King of Devapur is nothing different with regard to Indian masses, and the tables are turned only by Rabi, the rebellious son of the Maharaja, and Usha, the enlightened daughter of the Dewan (Chief Minister of the King), and their followers. True to the grain of history the narrative is carried forward here with utmost detachment and impartiality there is no effort on the part of the fictionist to twist the historical background of the novel and her viewpoint remains perfectly patriotic and nationalistic throughout. At times the novelist resorts to an ironical mode of expression in dealing with the British or the Maharaja, and its presence is marked by Margart P.Joseph in her critical study of Kamala Markandaya‘s fiction.


A chronological survey of Markandaya‘s novels reveals the truth that she has used flashback and flash forth techniques in them. This is why most of her novels follow a ‗circular‘ pattern and a reminiscental mood. But in the The Golden Honeycomb this technique is discarded in favour of a direct, linear technique. The historical narrative actually requires it to be so. In plot-construction, Markandaya adopts a neat, clean and straightforward approach. Generally her plot is well-knit and properly balanced, but in such novels as Nectar in a Sieve, Pleasure City it is superseded by story. Elsewhere, her plot is meticulously executed. There is room for wit and irony in her plot; for example, in The Golden Honeycomb, Markandaya employs at least three things in her plot-structure –a personal story, a social background and a wider conflict. There is a kind of ‗classical‘ quality about her art, as noted down by Uma Parameswaran: ―Each novel is organized as a classical play. A microcosmic Equilibrium is upset giving rise to conflict; the focus is always on the main character, the plot is unfolded step by step, there is a rapid denouement after the climax. Some classical ‗machinery‘ is also used. There are symbolic forewarnings in each story.‖(Parameswaran, p.91)

In the matter of technical adjustment of expression to character and situation, Markandaya can‘t be fully vindicated. Although she handles her medium of expression with the unmistakable touch of a consummate artist, she occasionally slips into the error of her ―simple and effective language,‖ (Parameswaran, p.90) and rightly so, but the truth also remains that she has misconceived the real nature of her rustic characters, such as that of Rukmani, throwing as

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Markandaya‘s art of characterization draws its sustenance from her wide-ranging experience and knowledge of the world around her. Her characters, like Chaucer‘s in English poetry, belong to different sections of society – the poor and the rich, high class gentlemen and ladies and down-the earth rustics and vagabonds. They are both British and Indian-both well within her range and experience – that she studies minutely in their inter-cultural and inter-racial relationship. There is no consideration of caste, creed and clime in the portrayal of her characters, who happen to be both types and individuals. In her ‗God‘s plenty‘, Rukmani and Nathan, Mirabai and Richard, Dandekar and Sarojini, Lady Caroline and Valmiki, and to a lesser degree the Swamy, Ravi, Clinton and Helen and Bashiam, Srinivas and Vasantha and Mrs. Pickering and Fred,Tully and Rikki: all are living characters of flesh and blood. Markandaya does not seem to be a novelist of ‗the inner workings‘ of the mind, nor of the emotional and intellectual turmoils of an individual. At best, she is a novelist of sensitive individuals placed in certain piquant situations and of their ensuring actions and reactions in the given social and cultural context. She admirably succeeds in drawing her protagonists with a few masterly strokes. (Joseph, p.155)


An in a ‗classical‘ play, the story of a Markandaya novel is usually complete in itself. There is hardly any scope for a secondary plot in her novels. Similarly, they also lack philosophical ruminations, lyrical outbursts of feelings, and extraneous characters. As a result, her thoughts occasionally tend to be shallow and unimpressive, but she makes no compromises on the score of her fictional narratives, which often gush forth without any barriers. Her language is markedly free from unnecessary embellishments and decorations. Since she offers no authorial commentary on events or characters, she commands a commendable objectivity and detachment in her novels.

ZENITH

Being shorn of superfluities and unwanted details, Markandaya‘s style moves between the twin polarities of simplicity and complexity and thereby draws a dividing line between her earlier and later works. It is totally devoid of rhetorical raptures and lyrical effusion (which one finds in plenty in Anita Desai), and is almost free from philosophical speculations and metaphysical abstractions (which are abundantly witnessed in Raja Rao, B. Rajan and Arun Joshi). Although it admits of the ardent social considerations of Mulk Raj Anand, Bhabani Bhattacharya and Ruth Prawer Jhabvala, it is not committed to any particular ideology or doctrine. And though it makes use of wit and irony at appropriate places, it does not demonstrate any propensity for humour or comics of the type of R.K.Narayan and Ruth P.Jhabvala.

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she does a kind of aura around them by making team speak in what is often termed as ‗anglicized idioms‘. This is decidedly an in excusable flaw on the part of a writer who very well knows the subtle nuances and delicacies of the English language. One of the redeeming features of Markandaya‘s language, however, is that it remains chaste and flawless almost to the last detail, and it displays no trace of the abuses or undue Indianisms of Mulk Raj Anand and Khushwant Singh. There is no need to search for them in a well-mannered and well-cultured lady of the stature of Markandaya. Some scholars have endeavoured to find fault with her because she does not always stick to Indian setting, character or expression, but this is an unjust demand from her by all means, keeping in view her maiden-name ‗Markandaya‘? With regard to the question of the use of unnatural language by certain characters in her fiction, such as by Janaki in the Golden Honeycomb, we may construe it as an obvious result of her alien situation ―the price the expatriate writer has to pay‖ (Joseph, p.209). Markandaya, on the contrary, sounds very natural and impressive in putting proper words, phrases and expression in the mouths of her British characters. How forceful and effective her medium becomes when she comes to delineate the characters of Sir Arthur and Lady Mary Copeland in The Golden Honeycomb and to reproduce their living English speech and rhythm. Then follows the question of style and its execution by Markandaya. What we need to underline here is the fact that style is not something static but dynamic, and that it has to modulate itself from time to time in keeping with the demands of the story. Besides style is also an index to the inner working of a man‘s mind to which the vehicle of expression is tailored in a suitable manner. The use of tenses, inversions, hyphens or hyphenated expressions, and truncated or intricate dialogues are all of secondary importance. Markandaya‘s style is quite dynamic in nature and peculiarly suited to capture effectively the varying moods and fancies, feelings and thoughts, of her character. Occasionally it tends to be impressionistic (as in the description of the colorful Holy festival in The Golden Honeycomb), but usually it is character or situation oriented. How skillfully she pen-portrays the divergent views and tempers of the Maharaja, the dewan, Rabi and Usha in The Golden Honeycomb! It is likely that Markandaya sometimes slips and does not show sufficient attention to small details like the location of a particular village or the site of a dam-construction. A scholar like Shyamala Venkateswaran sore over this, (Ibid, p.62) but her concern goes in the extreme. Markandaya‘s style does not entertain aberration of mind and distortions of facts. Speaking of her style, Uma Parameswaran has rightly remarked thus: ―Kamala Markandaya‘s is not a translated language. She does not attempt to adopt vernacular idiom or tone; the language of her earlier work is always unobtrusively pure. Yet she succeeds in bringing out the texture of the social classes by varying the degree of simplicity and articulation. A distinct note of experimentation with prose style is present in The Coffer Dams and later novels.‖(Parameswaran, p.90)




Markandaya‘s style follows a rather middle path and strives to transmute the disparate experience of her characters into an artistic whole of charm and beauty. In the final reckoning, the narrative technique of Kamala Markandaya does not adopt a certain definite mode of expression and keeps its option open like the free mind of a dispassionate reader. Kamala Markandaya‘s technique springs from the valued position of a detached observer, which Markandaya is and freely modulates itself according to the needs and demands of the situation and character. Hence sometimes it takes to a third-person narration. Both narration and description form the fiber of her technique. Markandaya also makes use of flashback and flashforth techniques in her novels, giving a rounded, circular shape to them in a convincing manner---a thing which recalls the practice of Arun Joshi in his fictional works. Her art of characterization, her plot-construction, her medium of expression, and her style are all bound together in the firm knot of her dynamic technique to enhance the overall effectiveness of her novels on the minds of her readers and to reaffirm the validity of her claim to the title of ‗The Big Four‘ in Indian-English fiction. REFERENCE 1. Forster, E.M. (1964). Aspects of the Novel. Harmondswarth: Essex Penguin Books. 2. Margaret P.Joseph. (1980) Kamala Markandaya. New Delhi: Arnold-Heinemann 3. Markandaya, Kamala. (1969). The Coffer Dams. New York: John Day Co. 4. Narayan Rao, K.S. 1959). ―Kamala Markandaya: The Novelists as Craftsman‖, Indian Writing Today, III, No.2. April-June. 33 5. Parameswaran, Uma. (1976). A Study of Representative Indo-English Novelists. New Delhi: Vikas Publishing House. 6. Payne, Robert. (1963). ―The Homesick Shepherd‖, The Saturday Review, 46, No.21 May 25. 7. Singh, R.S. (1977) Indian Novel in English. New Delhi: Arnold-Heinemann.

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8. Srinivasa Iyengar, K.R. (1985). Indian Writing in English. New Delhi: Sterling Publishers


DISCOVERING THE APPROACHES OF ACTIVITY CENTERED LANGUAGE TEACHING PROGRAMMES DR. T. SASISEKARAN*; J.KARTHIKEYAN** *Professor, Department of English, Kongu Engineering College, Perundurai, Erode. **Assistant Professor, VIT University, Vellore.

ABSTRACT Teaching language through activity based tasks has been proved to be effective in the recent years. Activity in the context of language teaching is a term that denotes an educational task or a set of tasks designed to promote communicative experience and knowledge of the usage of the second language. A clear knowledge over the function of activities may help a language trainer to execute with clear plan and objective. Activities employed for the purpose of teaching language may be divided as common activities and activities devised by the trainer. This paper brings out the nuances of these activities such as, their role, utility and limitations. It also brings out the significance of blending these activities to train the age group of 18-22 years for effective learning of the second language. KEYWORDS: Accumulation, Cognitive, Interpersonal, Proportionate, Stimulant. ___________________________________________________________________________

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Cummins (1981) speaks about two types of language proficiency: fundamental interpersonal language skills and cognitive academic language proficiency. These are the essentials both for the native speakers and the foreign learners. Here, in the context of language teaching to foreign learners, that is, to teach second language, activities are supposed to be designed in such a way to develop both. Unlike native speaker students in countries like India, where second language is the medium of instruction; fundamental interpersonal language skills are not given that much importance. It is also because of the fact that they do not need the second language to communicate to their student friends or to any one else. Teachers and students turn towards second language only to reflect over their academic statements and discussions. So, the task of a language teacher becomes two dimensional, in which more emphasis is given to interpersonal language skills. The activities designed to train students in interpersonal language skills at the college level are not as fruitful as that of those at the lower levels. It is not an easy task, because students at the college level are not as open as the students at the lower levels and are not interested in many activities.


INTRODUCTION


It is essential for a language trainer to be mindful of the function of activities to execute with clear plan and objective. It is because of the fact that a set of systematic activities successful in a particular locality, for a particular age group may not be befitting to all the students. It is also important that a trainer blends both the common activities and activities devised by the trainer for the successful execution of his plan and objective. ACTIVITIES FOR LANGUAGE TRAINING It is accepted generally that content based language teaching and activity based language teaching are comparatively effective than the traditional methods. Task is the essence of activity based teaching. It is the prime of our concern and is defined by Long as "...a piece of work undertaken for oneself or for others, freely or for some reward. Thus, examples of tasks include painting a fence, dressing a child, filling out a form, buying a pair of shoes, making an airline reservation, borrowing a library book, taking a driving test, typing a letter, weighing a patient, sorting letters, taking a hotel reservation.... and helping someone across a road. In other words, by 'task' is meant the hundred and one things people do in everyday life, at work, at play, and in between." (Long, 1985 p. 89) From the above statement one can understand that there are so many activities in our day to day life which can be incorporated for the purpose of teaching language. Though the activities are available for the use, a language trainer has to change, alter, blend and make it appealing to the culture and sentiments of the students to be trained. Sometimes he has to device an activity of its own kind in order to fit a particular kind of learning. Thus there are two types of activities being used for the purpose of teaching a language. The first type is the common activities that are part of our life; modified if required for the purpose. The second type is the activities devised by the trainer for the purpose of giving a special training in a specific area. However, it is in the hands of a language trainer to use them effectively to get the desired outcome. A careful review over the above mentioned activities may help a trainer to understand the importance of them and the necessity of incorporating them with the required stimulant to sustain long term interest from the part of the learners.

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Common activities are the kind of activities that are already known to the students. Mostly this is used by a language trainer to make students imagine a common situation and to compose a possible conversation, report, dialogue, proposal, etc. In the context of non-native students the task is clearly defined, discussed or referred in the mother tongue and the students are made to manipulate the rudiments of the second language and to create similar sense with it. This is something that is done by any one in order to learn a new language. In other words it a natural phenomenon that a learner imagines a situation in his mother tongue and tries to arrange the vocabulary with the acquired knowledge in the target language with the view of creating the same sense.


COMMON ACTIVITIES


A learner gets the support of the trainer in the form of guidance and correction and his success is measured with his ability to translate the given situations and conceptions in the target language. His confidence grows as the role played by the trainer becomes less. After the lapse of considerable time he begins to concentrate on the expressions that are special in the target language and thus his learning continues. Here, different parts of the language are taught separately and step by step so that acquisition is a process of gradual accumulation of parts until the whole structure of language has been built up. (Wilkins, 1976 p. 2) For instance a learner may be asked to imagine the situation of a passenger meeting a travel agent and to prepare for the queries that one might generally have. This is a useful task which can be given to the students by the trainer after giving them necessary rudiments of basic grammar. Students’ task may be even made easy by providing them with a set of key words or the situational terms associated with typical conversation like package, going places, airfare, restaurant, tour operators etc. Analyzing carefully the advantages of this type of tasks, one can certainly find the following attributes: 1. There is a defined content for the learner to speak or write about. 2. Learner is guided by a trainer who shares the same mother tongue. 3. The objective of the task is clear. 4. The outcome is understood after the task. 5. Materials can be collected by the learner himself. 6. Possible and important situations are concentrated. 7. Learners have the freedom discussing, analyzing and experimenting among

them.

8. It is a natural way of learning.

1. All the possible situations cannot be worked out in a limited period of time in the form of prescribed class hours. 2. Difficult to evaluate the development of students’ competence. 3. Difficult to frame syllabus. 4. Expressions and tone of mother tongue prevail in the acquired communicative competency.

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At the same time there are also few limitations in this approach which may enlisted as follows:


9. Attractive to the students.


5. Confidence level of the students may not be high when exposed to unfamiliar situations. ACTIVITIES DEVISED BY THE TRAINER Activities devised by the trainer are the kind of activities that are not known to the students. This is the type of activity that has been mentioned clearly as “...a piece of work or an activity, usually with a specified objective, undertaken as part of an educational course, or at work." (Crookes, 1986) In this way this is not the type of activities popularly known to every one. In this type there may be so many minute tasks invented by a trainer to strengthen a particular competence or skill in which the subject may be needing practice for a systematically framed academic syllabus. For example, cricket is the game loved by Indians more than any game. So to speak about it is something loved by almost everybody. Taking it to consideration, a trainer may devise an activity like the following with the objective of teaching tense and usage. For each of the above mentioned activities some supporting aid may be given by the trainer. For

Activities and tasks

Example

Outcome

1

To Analyze students’ level of English

General questions Like

Knowing the level of the students

About cricket:

Ball, Bat

Collection of vocabulary, Verbs, Positions in the out-field

Bowl, drive, strike

Imparting knowledge to students about

Pitch, slip,

cricket

Usage of vocabulary (what is it? and what is it used for?)Verbs (what is it? who does it? For what?

This is a bat.

Leaning to speak about things

2.

3.

4.

Subject verb agreement

What is cricket?

This is made of wood. This is used by a batsman to play the ball.

(simple present)

He is a batsman / They are fielders.

Leaning subject verb agreement in simple present tense

He faces the ball / They stop the ball. He scores runs / They restrict runs.

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S.No


example, selected articles like bat, ball, keeping gloves and the costumes of an umpire can be used. Each of the articles associated with a player can be made to be worn by the student/students, after which the following activities can be carried out. Likewise names and pictures of charismatic personalities can also used for the Programmes.


5

Practice conjugation in simple present tense on activity based way

Sam and Ken play Cricket but not foot ball

Oral fluency

Sam plays Cricket and Ken plays football 6 7

Making students to perform and

He drives the ball

comment

They watch the match

Use of adjectives

He is a good player He is not so good.

Usage of simple present tense Expressing ideas and opinions

Thus a preparation of this sort stands in similarity with the "...any structured language learning endeavour which has particular objective, appropriate content, a specified working procedure, and a range of outcomes for those who undertake the task. ‘Task’ is therefore assumed to refer to a range of work plans which have the overall purpose of facilitating language learning from the simple and brief exercise type, to more complex and lengthy activities such as group problemsolving or simulations and decision making." (Breen, 1987 p. 23) By analyzing carefully the advantages of this type of tasks one can certainly understand the following: 1. Immediate exposure to standard language. 2. The syntactical elements can be taught in the original version. 3. The objective of the task and teaching programme are clear. 4. Easy to evaluate the development of students’ competence regularly. 5. Approach can be governed by a syllabus pattern.

At the same time there are also few limitations in this approach which may be enlisted as follows: 1. Materials cannot be collected by the learner himself. 2. Not an exiting activity for the students 3. Learners do not have the freedom in discussing, analyzing and experimenting among them.


6. Confidence level is raised at the end to face any situation with sound basics.

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4. It is not a natural way of learning.


IMPLICATION An activity which required learners to arrive at an outcome from given information through some process of thought, and which allowed teachers to control and regulate that process, was regarded as a `task' (Prabhu, 1987, p. 24). There is no doubt that both the above mentioned activities have advantages and disadvantages. For example, common activities will attract the students immediately and the involvement in it will be considerably more from the part of the learners. On the other hand it cannot help that much for a beginner, who begins his study and who wants to learn the basic grammatical rudiments of the second language. Similarly, activities devised by the trainer may not be interesting to the students but the outcome is comparatively high. Here the trainer will have an advantage in the form of control over the proceedings of the activity. The students are fully dependent on the trainer for their carry outs and they get it time after time. A trainer has the chance of maneuvering it in the course so as to channelize the training programme towards the desired outcome. However, utility of common situations is unquestionable as it generates enthusiasm, gives confidence and initiates individual thinking. Thus a proportionate fusion of both the activities, knowing the necessity of the hour will certainly influence positively in the tempo of students’ participation and inculcation. WORKS CITED Breen, M.P. (1987).Learner contributions to task design. In C.N. Candlin & D. Murphy (Eds.), Lancaster Practical Papers in English Language Education: Vol. 7.Language learning tasks (pp. 23-46). Englewood Cliffs, NJ: Prentice Hall. Cummins, J. (1981). The role of primary language development in promoting educational success for language minority students. In Schooling and language minority students: A theoretical framework. Los Angeles: California State University, Evaluation, Dissemination, and Assessment Center.

Prabhu, N.S. (1987). Second Language Pedagogy. Oxford: Oxford University Press. Wilkins, D. (1976). Notional Syllabuses. Oxford: Oxford University Press

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Long, M.H. (1985). A role for instruction of second language acquisition: Task-based language teaching. In K.Hyltenstam & M.Peinemann (Eds.), Modeling and assessing second language acquisition (pp. 77-99). Cleve don, England: Multilingual Matters.


Crookes, G. (1986). Task classification: a cross-disciplinary review (Technical Report No. 4). Honolulu: University of Hawaii at Manoa, Social Science Research Institute, Center for Second Language Classroom Research.


HUMANISTIC APPROACH OF LANGUAGE TEACHING TO SOFT SKILLS PRABHAVATHY. P*; DR. S. N. MAHALAKSHMI** *Research Scholar, Bharathiar University, Coimbatore. **Supervisor, Head, Department of English, Anna University of Technology, Coimbatore.

ABSTRACT “People rise because of their hard skills and fall because of the lack of soft skills”. Today, the topmost objective of all English language teachers is to give the learners the much needed four language skills (LSRW) i.e., Listening, Speaking, Reading and Writing for an effective communication and also for the mastery of a language. Many research studies conducted also found that the need for socio - life skills is greater than the need for techno management skills. „Soft Skills‟ play a significant role in one‟s success in life particularly in one‟s profession. Soft Skills are like one of the sides of a coin to be used to hold an opportunity. The global need of soft skills depends on „positive attitude‟, „communication‟, „problem – solving‟, „time management‟, „team – spirit‟, „self –confidence‟, „handle criticism‟, „flexibility‟, „withstand pressure‟ and „good work ethics‟ and so on…

INTRODUCTION According to Chris Foot, „intelligence and social skills are essential for success‟. Soft skills are neither soft nor unimportant, rather essential ingredients for success in life. The acquisition of soft – skills and essence of life – skills can well be understood by the figure drawn below;

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KEYWORDS: LSRW; Soft Skills; Humanistic Approach; communication; teaching-learning. ____________________________________________________________________________


„Humanistic Approach‟ of language teaching like a) Community Language Learning (CLL) and b) Total Physical Response (TPR) activities would surely serve the language learners to acquire and to exhibit the progress of an effective soft skills through some strategies or practices to be followed in the classroom and also even in non- classroom environment.


The above mentioned skills comprise three functions: cares well, shares well and works well. SOFT SKILLS vs. HARD SKILLS

HUMANISTIC APPROACH OF LANGUAGE TEACHING METHODS The humanistic approach of language teaching methods like a) Community Language Learning (CLL) and b) Total Physical Response (TPR) that are more or less of learners‟- teacher‟s skill centred i.e., which comprise the aspects of practical responsibility like learners‟ counseling,

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The listening skills no doubt form the key to develop all other language related skills.If „L‟ (Listening) is the key to all the other language skills.On the other hand, definitely „T‟ (thinking) is the master key of all the keys to improve soft skills. The spirit of thinking in the right direction helps to analyze, interpret, assess, evaluate, understand, ponder, express, examine critically and these can be done when a person is provided the freedom to do so from the age when he starts attaining knowledge.


On the other hand, professional managers expect their employees to have something extra which we call today, „ Soft Skills‟ and that so called soft skills become rather essential for the success of the organisations and as well as for the individuals.„Hard Skills‟ , on the other aspect are more along the lines of what might appear on one‟s resume which gives the detail of one‟s education,experience and level of expertise. It is to be understood clearly that soft skills complement hard skills.The first and foremost aspect of teaching soft skills enrich the teachers to study the practical modes and approaches which should be implemented to the learners. One cannot deny the fact that the most required „Humanistic Approach‟ to „Soft Skills‟ can best be applied and implemented right from the beginning in childhood.


language acquisition etc., The humanistic approach developed in the 1970s. It used insights from psychology and pedagogy and defined in broad terms what teaching should or should not be. A) COMMUNITY LANGUAGE LEARNING (CLL) was developed by Charles Curran (1972) on the basis of the counseling learning approach, according to which, the teacher was more a „counselor‟ than a figure of authority and a judge of right and wrong. CLL takes place in groups, either small or large, and these groups form the community. This method lays emphasis on the learners‟ personal feelings while learning English language. It was also the first method to combine the field of language learning with the dynamics and principles of counseling. Some of the features of this learning is that learners are to be considered as "learner-clients" and the teacher as a "teacher-counselor". Grammar and vocabulary is taught inductively. Students are encouraged to express not only how they feel about the language, but how they feel about the learning process, to which the teacher expresses empathy and understanding. (Ref: 2 Pg: 60-62). PRACTICES IN THE CLASSROOM Some of the appropriate and practical strategies or practices include A tape recorder is the most important aid used in the classroom. Learners operate the tape recorder and start the conversation and speak into it. The tape is played back after the conversation is over. Learners listen and then comment on it. Then the teacher/counselor takes away the tape and prepares a transcript of the tape. Errors are marked and copies are handed to each learner in the next class. Learners are allowed to do self-correction. The teacher then corrects their doubts and errors and then the new conversation begins… B) TOTAL PHYSICAL RESPONSE (TPR) method was evolved by James Asher, an experimental psychologist. It bases its principles on the way a child learns the first language. It listens to a lot of language before it attempts to speak. In this method, listening comprehension is the basis of the course. The teacher gives commands and orders, and learners perform the action. This is said to be a meaningful way of learning a language. Total physical response allows learners to achieve a high degree of success. (Ref: 2 Pg: 65-67)

Thus, the above mentioned two methods of humanistic approach and its practices aids to progress soft skills through proper training putforth among the learners. Soft skills include the following aspects:

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The teacher gives a simple command. For example: „Stand up!‟ and „Sit down!‟.The learners respond to the command. If they do not follow the command, the teacher demonstrates. Further commands are given. The teacher demonstrates new commands. The class then follows. The teacher writes commands on the blackboard and demonstrates. The class copies down the sentences. Learners are not required to speak in the initial stages. Later, learners give commands and the rest of the class performs the actions.


PRACTICES IN THE CLASSROOM




‘SOCIAL SKILLS’ – comprise of learning communicational skills, interpersonal skills, positive attitude, values, perception, Etiquette, ethics etc.,



‘THINKING SKILLS’ – leads to creativity, problem-solving, decision making, innovative etc.,



‘NEGOTIATING SKILLS’ – depends on the activities like coping with time and stress,emotions,teamwork,group communication etc.,



‘INTERPRETATIVE’ / ‘INFERENTIAL SKILLS’ – terms with scoring…

Development of soft skills through support programs and activities (that are created, developed and used to support soft skills) which are divided into: 1. ACADEMIC SUPPORT PROGRAMS Soft Skills through campus life activities is the golden opportunity to develop the required professional skills through carefully crafted programs carrying them out in campus ground. For example: It can be rightly said, that the „Thinking skill‟ has to be enhanced and directed on the right track by adopting certain communicative exercises through report writing courses, corporate projects, play way strategies for mixed ability classes. Interactive classes and workshops rather than classroom teaching should also be encouraged among the learners. 2. NON - ACADEMIC SUPPORT PROGRAMS As teachers, we are responsible to study the outcome of our teaching strategies or practices which should not be only based on rigid curriculum or syllabus prescribed. Apart from the courses, helping the learners to develop language skills, many interactive programs should also be designed as a part of the curriculum (along with the knowledge of grammatical basics) to develop their language accuracy and fluency.

REFERENCES 1. Stern, S. 1991. “An Integrated Approach Literature in ESL/ EFL” in Teaching English as a Second or Foreign Language. ed. Murcia, M.Boston: Heinle and Heinle Publishers.

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To conclude, it is rightly said , that the planning is necessary but execution is also equally important.So, Soft Skills play a vital role in one‟s life activities because it involves in dealing with people directly.Technical experts who have good soft skills will always be in demand.Soft skills being innate and internal they can be acquired by constant practice.Thus, the two methods and practical applications of humanistic approach serves the basis for the learners‟ – teacher‟s skill centered .


CONCLUSION


2. Nagaraj Geetha. 2010. “English Language Teaching Approaches, Methods and Techniques” ed .2 Orient Blackswan Private Limited.

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3.http://www.tjtaylor.net/english/teaching-method-humanistic-techniques


TRIBAL WOMEN EMPOWERMENT THROUGH KUDUMBASREE UNITS: A STUDY ON THE ULLADAN TRIBE OF NORTH PARAVUR TALUK IN ERNAKULAM DISTRICT OF KERALA MANJUSHA K. A.* *Assistant Professor, School of Gandhian Thought and Development Studies, Mahatma Gandhi University, Priyadarshini Hills. Kottayam, Kerala, India.

ABSTRACT The present study is entitled “Tribal Women Empowerment Through Kudumbasree Units: A Study on the Ulladan Tribe of the North Paravur Taluk in Ernakulam District of Kerala”. The study is an attempt to assess the level of empowerment achieved by the womenfolk of Ulladan Tribe through Kudumbasree Units. Primary data required for the study was collected from the 50 Kudumbasree members representing 5 Kudumbasrees of Paravur Taluk. On the basis of the available data collected and also on the basis of observations, the researcher comes to the conclusion that a significant change had happened in the socio economic and political life and general skills of the respondents through the Kudumbasree Units. Better training and awareness programmes should be conducted for the further development in the process of empowering poor women in this area. KEYWORDS: Kudumbasree, SHG , Tribe, Ulladan Tribe, Women Empowerment. ___________________________________________________________________________

Ernakulam district was formed on 1st April 1958 carving the areas of earstwhile TravancoreKochi-Malabar kingdoms of Kerala. There are 2370 permanently settled Tribal families in Ernakulam District which includes 4411 males and 4525 females and so total tribal population of Ernakulam District is 8936 as per the latest census report. They are distributed in 45 Grama Panchayaths, 8 Municipalities and Cochin Corporation areas of Ernakulam District . Among this, the most populated tribal settlement is Kuttampuzha Grama Panchayath of Kothamangalam Block Panchayath. Among the 12 tribal sects of Ernakulam district, majority is Ulladan Tribe which includes 1219 families ie, almost 51% of the total tribal population.

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Kerala, the small state in the southern tip of the Indian Peninsula, is an easy winner owing to its great mind blowing landscape with lush green and vast expenses of coconut grown coastal areas. It is also a homeland of numerous colourful tribal communities. Like non-tribals, our tribal bretheren too are the bearers of lustrous culture. Even if the life and culture of Kerala tribes is rich and fascinating, only a small number of scholarly works with regard to this topic have come to light so far.


1. INTRODUCTION


The present paper is aiming at making a study on the enabling processes and efforts by Kudumbasree Units towards the social, economic and political empowerment of the Ulladan women in the North Paravur Taluk in Ernakulam District of Kerala. 2. REVIEW OF LITERATURE 2.1. KUDUMBASREE Kudumbasree is a programme under the Poverty Eradication Mission(PEM) of Government of Kerala. „Kudumbasree‟ means „prosperity of the family‟. The principal objective of the Kudumbasree is the eradication of absolute poverty from the state of Kerala within a decade and the strategy slogan of the Mission is “reaching the families through women and reaching the community through families”. Women empowerment initiatives, micro finance operations, micro enterprise and convergent action constitute the core activities of the Kudumbasree carried out through organisations of women below the poverty line. 2.1.1. CONCEPTS AND DEFINITIONS OF SHGs Singh (1995) conceptualised an SHG as “an informal association of individuals which comes together voluntarily for promotion of economic and social objectives.” Krishnamoorthy(1996) conceptualized SHG as “an organization formed by people for pooling their resources to help each other.” Roul(1996) defined an SHG as “an institutional framework for individuals or households who have agreed to co operate on a continuing basis to pursue one or more objectives.” 2.2. CONCEPTS AND DEFINITIONS OF TRIBE

According to B.S.Sharma, the word tribe means, “ a hoard of people bound together by definite relations, social, moral, aesthetic, intellectual and of all other kind that are possible. In other words a tribe is a strictly homogenous unit of members who constitute it”

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According to D.N.Majumdar, “a tribe is a collection of families or groups bearing a common name, members of which occupy the same territory, speak the language and observe certain taboos regarding marriage, profession or occupation and have developed a well assessed system of reciprocity and mutuality of obligations”.


The word „tribe‟ somehow eludes definition, according to Raghavaiah(1969). As the communities tend to outgrow definitions, it is very difficult to evolve a commonly accepted definition for tribe. We can atleast name tribal characteristics though we can hardly define a tribe.


2.3. BRIEF PROFILE OF THE ULLADAN TRIBE Ulladans belong to the lowest caste among the purely malayali Hindu Animistic castes of Cochin State. The word “Ulladan” is said to be derived from „ul‟ meaning „interior‟ and „nadu‟ meaning „country‟ and cannots that they are people of the interior. It is also possible that their name might have originated from „various aadulls (dances) that they perform‟ (Louis, 1962). Iyer (1939) quotes Travancore State Manual: „It is said that they are the descendants from a Nambutiri women, who, on being proclaimed an outcaste, said “ullatana”, meaning that (the offence for which she was ostracised) is true‟. The Ulladans have illams(clans) and illam rules and regulations. Vachoor, Kothari, Kadayathu, Peringale, Vayalattu, Kizhoor, Menattu etc., are some of the illams. They consider the caste groups like the Brahmins, Nayar, Izhava and the communities like the Orthodox Christians and Muslims superior to them, while all the other O.B.C. and SC communities are inferior. The Ulladan women do not go out to work like the pulaya women. The husbands provide for the wife and children, while the wives cook and minister to the wants of the children. Some Ulladan women to whom L.K.Anantha Krishna Aiyer talked to near Ernakulam, told him that they would not lower themselves by going to work , as they are the descendants of the chiefs of the forests. 2.4. EMPOWERMENT Empowerment as a concept was introduced at the International Women‟s Conference in 1985 at Nairobi. The conference defined the term „empowerment‟ as a „redistribution of social power and control of resources in favour of women‟. In the recent years, empowerment of women has been recognized as a central issue in determining the status of women. Thus, empowerment is a “process of awareness and capacity building, leading to greater participation, greater decision-making power and control of the transformative action”. The empowerment of women covers both individual and collective transformation. It strengthens their ability to acquiring knowledge, power and exercise.

Sharma (2001) stated empowerment as, both a process and product. Empowerment is a process aimed at changing the nature and direction of systematic focus, which marginalize women and other disadvantaged section in a given context.

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According to Khan (2001) and Sinha (2002) the Eighth Five Year Plan (1992-1997) makes a shift from „development‟ to „empowerment‟ of women. Policies, programmes and projects designed to assist and uplift the low income women, have shifted from “welfare approach” to an “empowerment approach”.


2.4.1. CONCEPTS AND DEFINITIONS OF EMPOWERMENT


3. RESEARCH METHODOLOGY 3.1.TITLE OF THE STUDY The study is entitled as “Tribal Women Empowerment Through Kudumbasree Units : A Study on the Ulladan Tribe of North Paravur Taluk in Ernakulam District of Kerala.” 3.2. OBJECTIVES OF THE STUDY 1. To assess the socio, economic and political empowerment achieved by the women folk of Ulladan Tribe through Kudumbasree Units. 2. To give solutions for their existing problems. 3. To give suggestions for their further empowerment. 3.3. SCOPE OF THE STUDY The study is important for applied research as well as basic research in the field of Tribal Development. The study would provide a framework for drawing suitable programmes for the upliftment of traditional tribal folk with particular focus on the women of Ulladan Tribe. 3.4. HYPOTHESES A very impressive change was achieved by the womenfolk of Ulladan Tribe through the Kudumbasree Units in Kottuvally Panchayath. 3.5. LIMITATIONS OF THE STUDY 1. The study was confined to the North Paravur Taluk of Ernakulam District only. 2. The study was constrained with limited time and other resources at the disposal.

North Paravur Taluk of Ernakulam District in Kerala was purposively chosen for the present study. 3.7. THE STUDY DESIGN This was a social diagnosis study, exploratory in nature. Focus Group discussions were held at all Kudumbasrees to supplement the quantitative data, collected through Interview Schedule.

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3.6.UNIVERSE OF THE STUDY


However, there is a scope for further research in this area with more emphasis on all aspects of the Kudumbasree Units.


3.8 .TOOLS FOR DATA COLLECTION 1. Interview Schedule was used for primary data collection. 2. Observation schedule was used for personal observation. 3.9. METHODS FOR DATA COLLECTION Simple Random Sampling Method was used for the study. From 5 Kudumbasree Units, 10 respondents from each Kudumbasree makes 50 respondents as samples for the study. 3.10. SOURCES OF DATA Each of the Kudumbasrees consists of 20 or more members. The sources of primary data was collected from 50 respondents of Kudumbasree Units in Paravur Taluk. Secondary data was gathered from available literature, reports, minutes of the meetings, attendance register and account registers, other relevant documents and registers maintained by Kudumbasrees. 4. DATA ANALYSIS This part of the paper deals with the analysis of the collected data and its interpretations on the empowerment of tribal women from three different angles, namely social, economic and political. 4.1. KUDUMBASREE UNITS

No. Of members

Place

Akshara

22

Kaitharam

Gokulam

20

Nanthiattukunnam

Shreyas

24

Vaniyakkad

Vrindavanam

23

Ezhikkara

Grihalakshmi

20

Kaitharam

These are the 5 Kudumbasree Units taken into consideration for the study.

339

Name of the Kudumbasree


TABLE I - BASIC INFORMATION OF THE KUDUMBASREES


4.2 BASIC INFORMATION OF THE RESPONDENTS 4.2.1. AGE TABLE II – AGE OF THE RESONDENTS Age group

No

%

21-30

18

36

31-40

14

28

41-50

9

18

51-60

6

12

60-75 Total

3

6 50

100

This table shows that majority of the respondents (64%) belonged to the age group of 25-40. 18% of the respondents belongs to the age group of 41-50, 12% of the respondents belongs to the age group of 51-60, and only 6% of the respondents belongs to the age group of 60 -75. 4.2.2. EDUCATIONAL QUALIFICATION

No

%

Illiterate

3

6

L.P.

5

10

U.P.

8

16

H.S.

17

34

Plus 2

12

24

Degree and above

0

0

Technical

5

10

Total

50

100

340

Qualification


TABLE III – EDUCATIONAL QUALIFICATION OF THE RESPONDENTS


This table indicates that only 34% of the respondents are having High School Level Education and only 24% is having education upto Plus Two and again only 10% is having Technical Education. 16% of the respondents are having Upper Primary education , 10% of the respondents have Lower Primary Education and there is no respondents having a degree level educational qualification. 4.3. SOCIAL EMPOWERMENT Empowerment is a continuous process where the powerless people become conscious of their situation and organize themselves to improve it and access opportunities to strengthen it. It takes a long time. In order to examine the real level of their social empowerment, three aspects were chosen ie, decision making in the family, level of knowledge about the legal rights of women and children and also the level of information about the governmental programmes and schemes for development. 4.3.1. DECISION MAKING

Education of children

Investment/Loans

Menu Deciding

Health Care

Mobility

Recognising Women‟s Contribution

No

%

Increased

34

68

No Change

16

32

Increased

28

56

No change

22

44

Increased

38

76

No Change

12

24

Increased

36

72

No Change

14

28

Increased

40

80

No Change

10

20

Increased

35

70

No Change

15

30

This table shows that there was considerable increase in the participation in Decision Making within the family after becoming the Kudumbasree members.

341

Participation in Decision Making


TABLE IV – PARTICIPATION IN DECISION MAKING IN THE FAMILY


4.3.2. LEVEL OF KNOWLEDGE

Statement

Known

Source

Un

Kudumbasree

known

1

A daughter, widow and mother can inherit the property as equal to sons

45

40

5

2

Widows and divorced women are entitled to marry

35

35

15

3

Marriagable age for girls is 18 yrs and for boys is 21

45

40

5

4

Dowry giving and accepting are prohibited

35

30

15

5

With the consent of women on medical ground, abortion is legalised

15

10

35

6

Immoral Trafficking of woman and girls is legally punishable

28

23

22

7

Women also have the right to divorce on the same ground as admissible for men

33

15

17

8

Women are entitled to get equal wage with men for the same type of work

37

33

13

9

Provision for getting alimony

10

10

40

10

Right to education is a right for child

40

40

10

This table shows that majority of the respondents are aware of the Legal Rights of Women and Children through the classes arranged for the Kudumbasree Units.

342

Sl.No


TABLE V – LEVEL OF KNOWLEDGE ABOUT LEGAL RIGHTS OF WOMEN AND CHILDREN


TABLE VI – LEVEL OF INFORMATION ON GOVERNMENT PROGRAMMES AND SCHEMES Sl.No

Programmes

Known

Source Kudumbasree

Un

Developmental Programmes of the government for ST

30

25

20

2

Integrated Child Development Scheme

25

35

25

3

Kerala Development Plan

25

20

25

4

Financial Assistance for the Daughter‟s of widows

27

25

23

5

Pension for widows/handicapped/elderly

50

50

0

6

Akshaya Programme

27

25

23

7

National Social Assistance Plan

29

25

21

8

Women‟s Component Plan

25

25

25

9

Sampoorna Grama Swarazgar Yojna

10

8

40

10

Prime Minister‟s Rozgar Yojna

13

10

37

11

Swarna Jayanthi Sahay Rozgar Yojna

10

0

40

12

Valmiki Ambedkar Awaz Yojna

10

0

40

This table shows that most of the respondents are unaware of the governmental programmes and Schemes for development . 4.4. ECONOMIC EMPOWERMENT Economic empowerment was one of the main objectives of the present study and it focused on the role of Kudumbasrees in economic empowerment of women through Kudumbasrees. It is a fact that poor women usually have no savings, if savings means expenditure minus income. Majority of the respondents did not have savings account in any bank or post office. Even now they are depending on local chits, informal borrowing and money lenders for meeting their emergency economic needs.

343

1


known


Economic empowerment depended on the availability and utilization of loans from and through Kudumbasrees. Mainly three types of loans were taken from the Kudumbasrees, namely consumption loans, production loans and loans for other purposes. Consumption loans include loan for education, health and marriage. Production loans are taken for the purpose to earn an additional income for the family and Loans for other purposes meant for purchase of household items, for repaying loans from moneylenders etc. TABLE VII - AVAILING CONSUMPTION LOANS FROM KUDUMBASREE Availing Loans from Kudumbasree

No.

%

Yes

50

100

No

0

0

Total

50

100

This table indicates that 100% of the respondents had availed the Consumption Loans for various purposes.

No.

%

Agriculture

0

0

Animal Husbandry

20

40

Petty Business

20

40

Did not take

10

20

Total

50

100

Table VIII clearly indicates that only 80% of the respondents had taken loans for production purpose. 20% of the respondents were not in favour of taking loans because they were not ready to take the risks.

344

Purpose


TABLE VIII – UTILISATION OF PRODUCTION LOAN FROM KUDUMBASREE


TABLE IX – UTILISATION OF OTHER LOANS Purpose

No

%

Loan Repayment

22

44

Purchase of household items

20

40

Purchase of Land

0

0

Loan Not Taken

8

16

Total

50

100

This table shows that 84% of the respondents had taken loans for production purpose. No respondents had taken loan for the purchase of land. 16% of the respondents had not taken the other loans from the SHGs. 4.5. POLITICAL EMPOWERMENT Besides, social and economic empowerment, political aspects also were taken for the present study. Some of the indicators for the political empowerment looked into were their participation in Gram Sabha, habit of casting vote , and also the capacity building through the general skills.

No

%

Before becoming member of Kudumbasree

Yes

18

36

No

32

64

After becoming member of Kudumbasree

Yes

45

90

No

5

10

This table clearly indicates that there is considerable increase in their participation in the Gram Sabha after becoming the members of the Kudumbasrees. Kudumbasrees are found to be effective means for encouraging tribal women to participate effectively in Gram Sabha.

345

Participation


TABLE X – PARTICIPATION IN THE GRAM SABHA


4.5.1. CASTING OF VOTE Another area of political empowerment probed into was contesting of elections to Gram Panchayath. Only one women contested election to the Panchayath Elections. But she could not win the election. TABLE XI - CASTING OF VOTE Vote During the Elections

Number

%

Assembly

Yes

35

70

No

15

30

Yes

42

84

No

8

16

Yes

46

92

No

4

8

Parliament

Panchayath

This table shows that there is considerable increase in the casting of vote. These tribal women exercised their franchise in a remarkable way. 92% of the respondents cast their vote in the Panchayath elections, 84% if the respondents cast their vote in the Parliament elections and only 35% cast their vote in the Assembly Elections. 4.5.2. CAPACITY BUILDING

General Skills

High

Very High

No Change

Teaching and training someone else

30

5

15

Speaking in Public Meetings

5

5

40

Presenting Programmes in Public Meetings

40

5

5

346

TABLE XII– INCREASE IN THE GENERAL SKILLS OF THE RESPONDENTS


In this study, capacity building was looked into from general skills required to function as an effective group member and management of SHG, and skill development training programmes for initiating income generating activities. The general skills studied were communication skills, leadership quality etc.


Freely and frankly speeking in Kudumbasree meetings

30

15

5

Taking leadership position in Kudumbasree

30

10

10

Writing minutes of Kudumbasree meetings

20

5

25

Keeping the accounts of the Kudumbasree

20

5

25

Performing Bank Transaction

30

5

15

Interacting with government officials and police

20

5

25

This table shows that 10 to 30% of the total respondents are very high in many of the general skills. The other respondents have considerable change in their general skills. 5. FINDINGS AND SUGGESTIONS Based on the analysis of data, group discussions and personal observations, the following findings were obtained. In the light of the findings, few suggestions were given for improving effective functioning of the Kudumbasree system of Ulladan Women in North Paravur Taluk.

 Most of the Kudumbasrees reported the problem of dropouts from their groups. Economic empowerment of women was considered as one of the main reasons for joining the Kudumbasrees. But financial constraint was found as one of the main reasons for the members leaving the Kudumbasrees.  Majority of the members affirmed that proper documents like account books, registers, reports etc were maintained properly and were available to members on demand.

347

 Majority of the respondents are (58 %) having educational qualification only upto High School level. So, It is necessary to make them aware of the need for Higher Education as well as the dignity of attaining Professional qualification.


 Majority of the respondents (64%) belonged to the age group of 25-40 , which clearly indicates the wide scope of implementing Human Resource Development Projects and other Development Programmes in the area.


 There was considerable increase in the participation in the decision making process within the families of the majority of the respondents.  Availability of loan through the membership of women in Kudumbasree and its utilisation for the family has brought a change in the attitude of men towards their women within the family. It has reflected in the increasing participation of women in the decision-making process within their family.  Women began to go out for the activities in the Kudumbasree and along with that they engages in the self employment programmes and so earns some income through this. This also caused to recognise her work and decisions within the family.  As the members belongs to one settlement , majority of them may be either relatives or neighbours. Whenever there arises a conflict, it ends as a conflict between families or group of families.  As some of the members are illiterate, or low in education level, there are so many problems within the Kudumbasrees. These conflicts are resolved by the members themselves.  Majority of the respondents are aware of the legal rights of women and children through the classes arranged for the Kudumbasree Units. More awareness classes on the legal rights of women and children should be given to them .  Only 50% of the total respondents are well aware of the governmental Programmes and Schemes. Awareness classes for improving information on the governmental schemes and plans should be given to them.  Majority of the respondents did not have savings account in any bank or post offices. Even now they are exploited by the money lenders of the area.  100% of the respondents had availed consumption loans for various purposes like food, clothing, health, marriage etc.

 There was a significant increase in the participation in Grama Sabha after they become the members of the Kudumbasrees. A great majority of respondents from Kudumbasree attends actively in the Grama Sabha meetings.  They are politically empowered in realising their demands and fighting for their rights.

348

 A great majority of the respondents did not utilise production loan for initiating incomegenerating projects. Majority utilised it for purchasing household items .


 80% of the respondents had utilised production loans from Kudumbasree. 20% had not availed the loan because they were not ready to take risk at any cost.


 Almost all the respondents cast their vote during last elections. Highest turn out was for the election to the Panchayath.  A very impressive increase in the general skills was noticed in majority of the respondents for presenting programmes in Public Meetings.  There was no any considerable development in Communication Skill worthy of notice in the public meetings , but in the Kudumbasree meetings, they seems to be speaking very freely and frankly.  Leadership quality is lacking in majority of the respondents, which indicates the necessity of training in softskills and also in enhancing the leadership quality of the respondents.  There is a strong sign of social empowerment that women who were afraid of the government officials and policemen were getting the confidence through the Kudumbasree for going to the government offices and police stations. CONCLUSION From the above study, the researcher comes to the conclusion that the tribal women through the Kudumbasree units had made some remarkable achievement in their development. But some more awareness generation and skill development programmes should be conducted for better advancement. Primary importance should be given to the topics related to the management of Kudumbasree, like how to conduct meetings, write minutes and reports, keep different account books and registers etc. Panchayath should conduct skill development training programmes in leadership, communication skills, conflict management, legal right relating to women etc. Awareness classes on health and health related topics should given due importance. Capacity building should be achieved through the trainings given in the self employment programmes. Above all, make them aware that the achievement through unity is better than any other individual achievements, so that it will ultimately result in the achievement of their community as a whole. REFERENCES

Iyer, L.K.A.(1909) 1981.The Tribes and Castes of Cochin, I:58-67, Cosmo Publications, New Delhi. Reprint. Karl, Marilee.(1995).Women Making.London.Zed Books

and

Empowerment,

Participation

and

Decision

Kattakkayam, Jacob John(1983). Scial Structure and Change among the Tribals. B.R.Publishing Corporation, New Delhi.

349

Iyer, L.A.K., 1939.The Travancore Tribes and Castes, II: 197-222, Government Press , Trivandrum.


Economic Review.(2001). “Government of Kerala”.State Planning Board. Thiruvananthapuram.


Katz, A.H. and Bender, E.I. (1986). The strength in us:Self-Help Groups in Modern World. New York.Franklin Watts. Khan Pareethu Bava P.M., Ommen John & Leelakumari P. (2001) . “Women Component Plan in Kerala”. Study Report. Chennai, UNICEF. Luiz, A.A.D., 1962.Tribes of Kerala, pp:220-235, Bharatiya Adimjati Sevak Sangh, New Delhi. Nandi, S.B., et al, 1971.Life and Culture of Mala Ulladan. Anthropological Survey of India, Culcutta. Oommen, M.A.(1999). “The Community Development Society in Kerala –An Impact Study”.Evaluation Report.Institute of Social Sciences.New Delhi. Sahay, Sushama.(1998).Women and Empowerment – Approaches and Strategies.New Delhi.Discovery Publishing House. Sinha, Archana.(2002). “Types of SHGs and their work”.Social Welfare 48 February.


Southern India, VII:214-220.Cosmo

350

Thurston, E., (1909) 1975.Caste and Tribes of Publications, New Delhi.Reprint.


MEASUREMENT OF TACT - AN INNOVATIVE WAY TO PREVENT INDUSTRIAL DISPUTES DEVAPRIYA CHATTERJEE* *Senior Administration Officer, Indian Institute of Management Calcutta, Kolkata, West Bengal, India.

ABSTRACT Industrial Disputes cause loss of productivity and decrease of profit, tending towards huge losses. It is, therefore, necessary to establish a benchmark level of tact or skill, that is required to ensure the prevention of Industrial Disputes. The paper is proposed to establish an empirical relationship, or a set of data, or a model of optimum tact, that is regulatory in terms of benchmark levels. The procedure to be followed, requires a set of working hypothesis, a set of actual data collected from the industry, analyses of the data, and drawing of the conclusion on the basis of the analyses. The working hypothesis of the paper would consider the routes to resolution, as Conciliation, Mediation, Arbitration and Intervention. Data for the work were collected from five samples, that were located in territories within the southern districts of the state of West Bengal. The analysis of the collected data and the results of the statistical tests clearly establish that a model of optimum tact, derived by using the zero-sum theory, is an innovative way to prevent industrial disputes. KEYWORDS: benchmark, tact, optimum, conciliation, mediation, intervention, innovative. ______________________________________________________________________________

Furthermore, the benchmark level is based on sound psychological theory that has a proven track record. Despite the fact, that it is theory-based, the approach is very pragmatic. Rather than dealing with the psychological causes of behavior, like attitudes and personalities, it deals with the problem directly. It is very difficult for managers to change attitudes, and even more difficult, if not impossible, for them to change someone‟s personality. Behavior, on the other hand, can be

351

The proposed guided research is aimed to study the skills necessary for the prevention of Industrial Disputes, that are rampant in India. The main emphasis of the guided research is laid on the strategic management of tact necessary to handle situations, that lead to Industrial Disputes, involving ethical issues, resulting in go-slow programs, cease-work programs, strikes as well as lock-outs. It is, therefore, necessary to establish a benchmark level of tact, that is required to ensure the prevention of Industrial Disputes, without compromising the ethics. The benchmark level could be an empirical formula, or a set of regulatory data, that would be required to be satisfied. The procedure to be followed, requires a set of working hypothesis, a set of actual data collected from the industry, analyses of the data, and drawing the conclusion on the basis of the analyses.


INTRODUCTION


changed using techniques that are relatively easy to learn and apply. Unlike some of the traditional approaches, the behavioral approach does not look for deep, internal causes of behavior such as attitudes or personality. Instead, it concentrates on the behavior itself, and on ways of influencing behavior to bring about the desired charge. The process of specifying the problems of the people in the industry, in terms of behavior is not always easy. Specifying the problems in behavioral terms makes the people more amenable to solution. Behavior can be changed, personalities cannot. Some of the additional advantages of specifying problems in behavioral terms include that the employees become aware of precisely what behavior is expected of them. It may be required that employees are already aware of what behavior is required, but that is often not the case. Another advantage is that specifying problems in behavioral terms often avoids negative emotional reactions to criticism. HYPOTHESIS The working hypothesis of the guided research would consider the routes to resolution as: A) CONCILIATION: It involves independent, neutral third parties. They act as messengers and interpreters to identify the causes of the differences, the relative significance and the importance of the issues and positions taken by both sides – from „easily traded‟ to „deal brokers‟ - to help develop ideas and mutually own joint decisions.

MEDIATION: It involves an independent, neutral, third party, who assists sides to resolve differences and come to an agreement. This is more proactive, as mediators may suggest their own proposals, for a resolution. However, such sides are non-binding on both or all sides.

(C)

ARBITRATION: It involves referral to an independent, neutral third party, with both sides agreeing beforehand to abide by decisions. The arbitrator hears the agreements of both sides and then comes to a decision. The process is often criticized for the perceived tendency of arbitrators to award decisions alternately, regardless of the merits of each case, in order to be even handed and avoid the risk of appearing to favor one side over the other.

(D)

INTERVENTION: In an ideal world, with enough time and goodwill on both sides, disagreements could be settled and resolved without recourse to conciliation, mediation or arbitration. Hence, intervention remains the final option when both sides in a dispute, are unable to reduce their own differences.

Apart from conciliation, mediation, arbitration and intervention, the guided research takes into consideration certain concepts of measurement, that assists in reaching the goal, that is, the establishing of an empirical formula, or a set of regulatory data, that measures the tact for management, necessary to prevent Industrial Disputes, leading to loss of productivity, with reference to the industries in the southern districts of the state of West Bengal.

352

(B)


Conciliators do not recommend solutions.


MATERIALS AND METHODS A visit to industries was made for the purpose of the collection of data. The primary data was collected by interviews, questionnaires, conducting seminar and conferences. The secondary data was collected from annual reports, rule books and records of resolved cases, and would be used, only if found necessary. The four elements in reflective research, which is the normal practice in such cases, are : A. SYSTEMATIC TECHNIQUES IN RESEARCH PROCEDURES- Qualitative research should follow some well-reasoned logic in interacting with the empirical material, and use rigorous techniques for the processing of the data. B. CLARIFICATIONS OF THE PRIMACY OF INTERPRETATION-- Research is seen as a fundamentally interpretive activity, which in contrast to other activities, is aware of this fact. The recognition that all research work includes and is driven by an interpreter, who often interacts with other interpreters, provides the key to a qualified, and methodological view. C. AWARENESS OF THE POLITICAL-IDEOLOGICAL CHARACTER OF RESEARCH- Management is a social phenomenon embedded in a political and ethical context. We can hardly avoid either supporting or challenging the existing social conditions. D. REFLECTION IN RELATION TO THE PROBLEM OF REPRESENTATION AND AUTHORITY-- The researcher‟s claim to authority and the established claim to reproduce some extrinsic reality, are equally undermined : the researching subject and the researched object are both called into question.

B. ORDINAL LEVEL OF MEASUREMENT : When the relative position of objects or persons with respect to some characteristics are defined, measurements are possible on ordinal levels. The fundamental requirement of an ordinal level of measurement is that one be able to determine the order of positions of objects or persons in terms of characteristics under study. Ordinal level measurements are considered of higher level than nominal level, because, in addition to being mutually exclusive (feature of nominal level of measurement), the categories have a fixed order.

353

A. NOMINAL LEVEL OF MEASUREMENT : It is the lowest and the most simple level of measurement. When a variable is classified into several sub-classes, it is said that the variable in question is measured on a nominal level.


The levels of measurement refer to a set of rules that defines permissible mathematical functions, that can be performed on numbers or scores produced by a measure. The four levels of measurement used in the study are :


C. INTERVAL LEVEL OF MEASUREMENT : Interval level, between the categories of measurement, has equal spacing, in addition to the characteristics of nominal level (mutually exclusive) and ordinal level (having fixed order). In interval measures, the positions are not only ordered either in ascending order (lower, middle and higher) or in descending order (higher, middle and lower), but the intervals of measurement are also equal. D. RATIO LEVEL OF MEASUREMENT : Ratio level of measurement is the highest level of measurement. It has all the characteristics of interval level of measurement, except that, the zero point is absolute in this case, rather than arbitrary, as in the interval level of measurement. This means that the ratio level of measurement contains the characteristics of nominal level of measurement (mutually exclusive), ordinal level of measurement (fixed order), and interval level of measurement (equal spacing, in addition to an absolute zero). The process of research used is illustrated in Figure-1.

354

The industries in the southern districts of the state of West Bengal are frequently plagued by Industrial Relations problems. There are highly volatile unions of workmen, who resort to noncooperation, go-slow movements, cease-work movements and strikes. These activities are harmful in an otherwise stable environment. These are termed as Industrial Disputes, and are responsible for the loss of productivity and profit in the organization, leading to lock-outs and closure. As a result, several families are financially ruined and the number of suicides among the employees and the members of their families are on the rise. There is a general collapse of the work environment. In order to obtain a clear and specific understanding of the problem, data were collected and analyzed from five sample organizations and interviewing of the employees of the five sample organizations was made by the questionnaire method. The questionnaires had several sections and the responses were analyzed on the basis of the marks obtained by an employee. The responses were then analyzed with the test of significance by two standard deviation method, parametric tests of difference, non-parametric test of association, and test for measure of association. The nature and details of samples are given in Table-1. Most of the problems originate from the fixation of wages, incentives and overtime rates, in contravention to the wishes of the workmen‟s unions. The subsequent interventions and negotiations by the management do not always bring about a favorable result. Not much tact is used by the management to prevent the Industrial Disputes, leading to loss of productivity. The lack of tact in the negotiation with the leaders of the unions of the workmen, result in the complete breakdown of production.


DATA ANALYSIS


TABLE-1 THE NATURE AND DETAILS OF SAMPLES Serial Number

Details of Sample

Nature of Industry

Sample

Indian Oil Corporation Limited (MD),

Petroleum

1

Eastern Region Lube Blending Plant, Kolkata P – 68, Karl Marx Sarani, Paharpur, Kolkata-700043

------------ ---------------------------------------------------Bhargab Engineering Works Sample 2

3

Steel

P – 292, Benaras Road, District : Howrah, West Bengal, 711108

------------ ---------------------------------------------------Sample

-----------------------------------------------

-----------------------------------------------

SARANGSoft India Private Limited

Information Technology

SDF Building, Module 428 and 429,

(owned by NRI)

Sector – 5, Salt Lake City, Kolkata - 700091

------------ ---------------------------------------------------Gopal Hosiery 61, Ibrahimpur Road, Jadavpur, District : 24 Paraganas (S), West Bengal, 700032 ------------ ---------------------------------------------------Jayshree IT Consultants Limited Sample 5

----------------------------------------------Information Technology

Y–13, Block EP, Sector -5, Salt Lake City, (owned by Indian) Kolkata-700091


4

Manufacturing

355

Sample

-----------------------------------------------


RESULTS AND DISCUSSION The results of the analyses of the data are presented in a tabular form in Table-2. TABLE-2 THE RESULTS OF THE ANALYSES OF THE DATA Serial Number

Union workmen

of Industrial Dispute

Reason

Pending Demands

History Nil

Good personal

Salary revision from 2007, 1 and relationship of revision of LTA, new grades for better career progression, no management unrecognized with union outsourcing to contractors, and wage agreement on 5-yearly leaders basis ------------ ---------------------------- ----------------------------------------------------------Sample Unrecognized NonSalary hike and Uniform salary hike, uniform cooperation medical 2 rate of incentive and overtime, and Go-Slow facilities and commencement of recruitment --------------- -------------------- --------------------------------------------------- -------------NonSalary hike and Uniform salary hike and Sample Unrecognized cooperation increment increment, restarting LTA that and Go-Slow was stopped from 2009, 3 introduction of overtime for working beyond working hours -------------------------- --------------------------------- -----------------------------------Lock-out Sample Recognized Failure to meet Payment of overtime to meet benchmark rate benchmark rate of production, 4 and of production, 20% festival bonus, increase in unrecognized as given by the number of days of annual Minimum leave Wages Act, 1948 ---------------------------- ---------------------------------- -----------------------------------Lock-out Sample Unrecognized Agitation due to Reopening of organization and 5 stoppage of payment of arrear salary salary caused by recession


Recognized

356

Sample


A) MEASUREMENT OF TACT It has been observed that the responses of the managers in the organization, are, from time to time, delayed, to the notices or the demands of the workmen‟s unions. This leads to the aggravation of the problem – the unions intensify their demands and build up a psychological war–zone in the organization. As a result, the productivity begins to be affected. As more and more people start taking interest in the treatment being meted out to the leaders of the unions, the more is the downward trend of the productivity. Duration, as its name suggests, is a measure of how long a behavior lasts, namely, the exercising of tact. If the objective is to increase the contributions a manager makes, in the „union– management‟ meetings, a measure of how many contributions (frequency) are made, may not tell the whole story. It is possible that the manager makes five „contributions‟ during the course of the meeting, but these are merely „yes‟ or „no‟ responses to questions. Of more interest may be the duration of these contributions i.e. the total length of time, during which, the individual was contributing. Duration will, in these circumstances, be a better measure. The degree of accuracy required, will determine how the duration is measured. It may be possible, to measure the length of time for which the tact is exercised, with a stopwatch, or use a tick-list, for five-minute blocks. Whereas, duration concentrates on how long the tact is exercised, latency is a measure of the delay between the instant of time when the tact should occur and when it actually occurs. The graph, depicting the responses to the demands or the notices served by the union leaders, is illustrated in Figure-2. B) THE MODEL OF ‘TACT’ The model of „Tact‟ is illustrated in Figure-3

We can state that the criterion is that if NQ has a positive slope and a support line T, for B passes through Q with a slope equal but opposite to the slope of NQ, then Q is the solution point for the threat point N. If NQ is horizontal or vertical, and is itself a support line for B, and if Q is the rightmost or uppermost of the points common to B and NQ, then again Q is the solution point for N, and one of these cases must hold if Q is the solution point of N. This criterion is a necessary and sufficient one to prevent the loss of productivity.

357

If linear transformations are applied to the utility functions, N can be made the origin and Q the point (1, 1). Now T will have slope -1 and the line NQ will have slope +1. The essential point is that, slope T = minus (-) slope NQ, because this is a property that is not destroyed by the linear transformation of the utilities. T will be a support line for the set B (that is, a line, such that all points of B are either on the lower left side of T or are on T itself).


We have to observe that the solution point Q of the demand varies as a continuous function of the threat point N. Also, there is a helpful geometrical characterization of the way Q depends on N. The solution point Q is the contact point with B of a hyperbola (α β) whose asymptotes are the vertical and horizontal lines through N. Let T be the tangent at Q to this hyperbola. „P‟ is a point where there is a continuous function „h‟ of an individual „i‟.


Any support line of B with a contact point Q on the upper-right boundary of B, determines a complimentary line through Q, with equal but opposite slope. All points on the line segment, in which this complimentary line intersects B, are points, which, as threat points, would have Q as corresponding solution point. The class of all these line segments is a ruling of B by line segments which intersect, if at all, only on the upper-right boundary of B. Given a threat point N, its solution point is the upper-right end of the segment passing through it (unless N is on more than one ruling and hence is on the upper-right boundary and is its own solution point). FINDINGS AND CONTRIBUTIONS We now need to derive the model of „Optimum Tact‟, after considering the various social divisions. These social divisions are illustrated in Figure-4. We can now analyze the strategic management of threat, the threat formed by the first move and with pay-off function determined by the solution of the demand. This pay-off is determined by the location of N, specifically by the ruling on which N falls. Now, if there are threats from two individuals, one individual's threat is held fixed, say, individual one's at t1, then the position of N is a function of the other individual's threat, t2. The co-ordinates of N, p1 (t1, t2) and p2 (t1, t2) are linear functions of t2. Hence, the transformation (t2 goes to N), defined by this situation, is a linear transformation of the space S 2 of individual two's threats to B. That part of the image of S2 that falls on the most favorable (for individual two) ruling, will contain the image of the threats that would be best as replies, to individual one's fixed threat t1. This set of best replies must be a convex, compact subset of S 2 because of the linearity and the continuity of the transformation of S2 into B.

The pair (t10, t20) also has minimum and maximum properties. Since the final pay-off is determined by the position of Q on the upper-right boundary of B, which is a negatively sloping curve, each individual's pay-off is a monotone decreasing function of the other. So, if individual one sticks to t10, individual two cannot make one worse off than he does by using t20, without improving his own position and he cannot do this because (t10, t20) is an equilibrium point. Thus

358

The Kakutani Fixed Point Theorem tells us that there is some pair (t10, t20) that is contained in its set R (t10, t20), which amounts to saying that each threat is a best reply to the other. Thus we have obtained an equilibrium point in the management of tact. It is noted that this equilibrium point is formed by pure strategies in the tact, as a mixed strategy could involve randomization over several threats.


The continuity of N as a function of t1 and t2, and the continuity of Q as a function of N, ensure that the pay-off function, defined for the threat by solving the demand, is a continuous function of the threats. This is sufficient to make each individual‟s set of best replies, an upper semicontinuous function of the threat being replied to. Now, let us consider any pair of threats (t1, t2) . For each threat of the pair, the other individual has a set of best replies. Let R (t1, t2) be the set of all pairs which contains one threat from each of the two sets of replies. R will be an upper semi-continuous function of (t1, t2) in the space of opposed pairs of threats and R (t1, t2) will always be a convex set in the space, S1 x S2.


t10 assures individual one of the equilibrium pay-off and t20 accomplishes the same for individual two. The model of „Optimum Tact‟ is now established very much like a zero-sum situation, and one can readily see that if one individual were to choose his threat first and inform the other, rather than simultaneously choosing threats, this would not make any difference, because there is a 'saddle-point‟ in pure strategies. It is however different with the demand. The right to make the first demand would be quite valuable, so the simultaneity here is essential. The model of „Optimum Tact‟ is illustrated in Figure-5. To summarize, we have now derived the model of „Optimum Tact‟, found the values of the threat to the two individuals, and shown that there are optimal threats and optimal demands (the optimal demands are the values). From the detailed analyses of the data, and the results of the several tests on the answers of the questionnaires, we find that the exercising of „Optimum Tact‟ mainly comprises of three skills, with a set of sub-skills, that have been utilized to resolve the crises, as mentioned in Table-2. These are : a) own effectiveness --- time management, assertiveness, and being realistic b) interactive skills --- nonverbal communication, influencing skills, and handling feelings c) intervention skills --- being systematic, decision making, and promoting healing and recovery

We now establish the following six steps, that need to be taken for the exercising of „Optimum Tact‟, necessary to prevent any industrial dispute and loss of productivity : A) MEASURE OF READING : For theory to be used to the best effect, it is important that we break down the barriers by challenging the assumption that reading is for students only or staff in training and not for full-fledged professionals. Unfortunately, it is commonly assumed by many people, that, reflecting on theory, is a task for students, but not for professionals. It is important then, that, such a culture of „reading is for students only‟, is broken down. Some may argue that they do not have enough time to read. However, there are two points that need to be

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When the samples tend to consider that their problem is unique, it will be helpful to bring them back to reality, by projecting that the other samples are facing the same problem. By universalizing the problem in this way, the anxiety may be reduced in intensity. The ultimate goal of this research is the generalizability of the findings of the study. In this research, findings which are generalizable to a considerably large number of situations and cases, can only contribute to the knowledge base of management practice. The generalizability of findings is achieved here through the repetition of the study by taking more measurements.


It is therefore established that these three skills, along with their sub-skills, are the considerable parameters for the exercising of „Optimum Tact‟, necessary to prevent any industrial dispute, with reference to the industries in the southern districts of the state of West Bengal.


made in response to this. First, time spent on reading is an investment of time and can, by enhancing our practice, save time in the long run. Second, reading can increase our levels of intelligence and job satisfaction by giving us a broader perspective and greater insights into the Industrial Disputes. In view of this, it is necessary to devote some of our own time, outside working hours, to read about the subjects relating to our work. B) MEASURE OF ASKING : „Asking‟ can apply in two ways. First, in relation to reading, much of the literature of industrial relations, are written in a jargonistic academic style, that makes it difficult to understand. It can be helpful, then, to ask other people about such issues so that we can get past this barrier. The danger is, that, some people may give up reading because they feel uncomfortable with the style of writing being used. Second, we can learn a great deal from other people‟s practice. Students often learn a great deal by asking questions like, “Why do you do it that way?” or, “Have you any idea how I might tackle this situation?” There is much to be gained from creating an open, enquiring, mutually supportive atmosphere in which all professionals, not just students, can learn from each other. C) MEASURE OF WATCHING : There is much to be learned from developing an enhanced level of awareness in terms of observational skills. Much of the time, we may miss significant issues because we treat situations as routine and commonplace. We need to remember that every situation is unique in some ways and so we need to be attuned to what is happening and not make blanket assumptions. Practicing in a routine, and uncritical way can mean, that, we are, in effect, going around with our eyes closed, oblivious to significant factors that could be very important in terms of how we deal with the situation. Theoretical knowledge can help us understand and explain our experience, but if our experience is closed by a failure to be sensitive to what is happening, then we shall not notice that there is anything to be explained. Exercising tact relies on developing a sensitivity to what is happening around us.

F) MEASURE OF THINKING : There are two main barriers to a thoughtful approach to practice. These are routines and pressure. A routine approach amounts to working „on automatic pilot‟ and is clearly a dangerous way of dealing with the sensitive issues. As

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E) MEASURE OF TALKING : Sharing views about work situations, and how these can be dealt with, encourages a broad perspective. It provides the opportunity for people to learn from each other‟s experience, to find a common ground and identify differences of approach. Constructive dialogues about the methods of work, reasons for taking particular courses of action, and, so on, can be an excellent way of broadening horizons, deepening understanding and enhancing skills. Such dialogues also help to create an open and supportive working environment, and this, in itself, can be an important springboard, for the practice of the skill of tact.


D) MEASURE OF FEELING : The emotional dimension of profession, as we have seen, is a very important one. Our emotional responses, can, at times, be painful and difficult to deal with. At the other extreme, using theory can, sometimes, be seen as cold and technical. However, this does not mean that the two – thinking and feeling – cannot be reconciled. Thought can help us understand, and, therefore, deal with feeling and feelings can help bring theory to life, turn concepts into working tools, and thereby develop the skill of tact.


mentioned earlier, dealing with situations in a routine, unthinkable way, leaves us much vulnerable to mistakes. Pressure can also stand in the way of thinking about our practice. If we are very busy, we have to be wary of allowing ourselves to be pressurized into not thinking about what we are doing. We need to remain in control of our workload so that we are able to think about our actions. Thinking time should be seen as an essential part of the development of the skill of tact, rather than a luxury that has to be dispensed with, when pressure is on. SUMMARY The model of „Optimum Tact‟ offers the use of a theory base to help us understand the common themes, and a focus on creativity to help us deal with the unique aspects of each situation we encounter. The steps mentioned herein, are not the only ones that can be taken for the strategic management of tact, but they should provide a good „launch pad‟ for working out patterns of practice, for further development of the process. The future challenges of research include the examination of the concepts and implications of core self-evaluations for self-regulatory processes; testing of the validity of goal-setting theory and in particular, the dynamics of goal setting and goal revision in field settings; comparing and contrasting the concept of a learning goal with a performance goal, in terms of the mechanisms involved; integrating different theories and models of motivation with a view to developing a more coherent theoretical framework; theoretically integrating considerations of identity, commitment and psychological contract, investigating processes of psychological contracting, and investigating two-party relationships within a psychological contract framework. FIGURE 1 : THE PROCESS OF RESEARCH

Identification of Problems

Assess the

Need Assessment

Selection of Management

Intervention

Research Design

Pre-InterventionMeasurement

361

Introduce


Intervention Effects


FIGURE 2 : THE MEASUREMENT OF ‘TACT’

FIGURE-3 : THE MODEL OF ‘TACT’ α Phi

β B

θ θ N

Phi

362

Q


T


FIGURE-4 : THE SOCIAL DIVISIONS

age

disability

language

race/ethnicity sexual orientation

SOCIAL DIVISIONS

culture

region

class

religion

gender

FIGURE-5 : THE MODEL OF ‘OPTIMUM TACT’

N

Q

B REFERENCES 1. Adams, R. (1944) Skilled Work With People, London, Collins 2. Alinsky, S. (1989) Rules For Radicals, New York, Vintage Books 3. Brearley, P. (1982) Risk and Social Work, London, Routledge

6. Giddens, A. (2006) Sociology, 5th Edition, Cambridge, Polity 7. Gomm, R. (1993) „Issues Of Power In Health And Welfare‟, in Walmsley et al (1993) 8. Hartley, P. (1993) „Interpersonal Communication‟, London, Routledge 9. James, O. (2008) The Selfish Capitalist : Origins Of Affluenza, London, Vermilion

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5. Fontana, D. (1990) Social Skills At Work, London, Routledge


4. Burnard, P. (1982) Communicate!, London, Edward Arnold


10. Kadushin, A. (1976) Supervision In Social Work, New York, Columbia University Press 11. Kourdi, J. (1999) Decision Making, London, Orion Business Books 12. More, W. S. (1997) The New ABC Of Handling Aggression, Birmingham, Pepar 13. Pickering, M. (2001) Stereotyping : The Politics of Representation, Basingstoke, Palgrave Macmillan 14. Pruitt, D. G. and Carnevale, P. J. (1993) Negotiation in Social Conflict, Buckingham, Open University Press

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15. Tannen, D. (1992) You Just Don‟t Understand, London, Virago


CELEBRITY ENDORSERS IMPACT ON THE BRAND BUILDING - A CASE STUDY OF LUX P. RAJASHEKARREDDY* *Assistant Professor, School of Management Sciences, Nalla Narasimha Reddy Education Society's Group of Institutions.

ABSTRACT Scope and influence of the celebrities is a known phenomenon. Their name and fame increases the familiarity of the products that they endorse. The job of marketers becomes easier in taking those products close to the customers. The word „Celebrity endorsement‟ has enticed most of the retail giants as it has proved to be an effectual tool for aiding brand image and identity. This research paper‟s objective is to examine the impact of Multiple Celebrities on the brand and its consumers. HUL‟s brand Lux has used multiple celebrities in its commercials since its launch in India in 1929. The present study Conducted over a period of 3 months, for the study 60 female respondents using Lux were questioned on their brand preference and attitude towards the commercials. Findings revealed that very few buy Lux because it is portrayed as beauty soap of film stars majority buy soap for its quality, price and additional offerings. Age group most influenced by celebrities is 25-34 years and least influenced are 35-45 years; for them quality is the matter and not the celebrity in the advertisement. However most respondents instantly recall Lux commercials as refreshing and attractive because of multiple celebrities that appear from time to time thus proving that Multiple Celebrities endorsement can galvanize brand recall and facilitate instant awareness but it cannot directly influence the customer‟s intension to buy a brand. KEYWORDS: 1. Multiple Celebrity endorsement, 2. Brand Building, 3. Consumer Purchase Decisions. ___________________________________________________________________________

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Aristotle‟s quote, “Any brand can get a celebrity. That is easy. But getting a celebrity consistent with the right brand, to the right degree, at the right time, for the right purpose and in the right way... that is not easy.” 1 Today‟s market is very dynamic and increasingly competitive. It is essential to built brand by devising an effective brand communication strategy. Management thinkers today strongly believe that the consumer is the king2. Today, advertising plays an important role in building brands by persuading the human minds through a whole range of communication media. Advertisement has to create positive images that linger in the customers mind and lead to brand building. The test of advertisement today is therefore, to sell and simultaneously endow the brand with all positive values that will make it more attractive to target customers. Today, the use of celebrity advertising for companies has become a trend and a perceived winning formula of corporate image building and product marketing. “This


INTRODUCTION


phenomenon is reflected by the recent market research findings that 8 out of 10 TV commercials scoring the highest recall are those with celebrities‟ appearances.”3 TYPES OF CELEBRITIES ENDORSING ON TELEVISION

During 2009, 'film actress' with 43 per cent share led Celebrity endorsements on TV followed by 'Film Actors' and 'Sports Person' with 37 per cent and 15 per cent share respectively.

According to Melissa St. James, a doctoral fellow and marketing instructor at The George Washington University, “Studies show that using celebrities can increase consumers‟ awareness of the ad, capture [their] attention and make ads more memorable.” In this age of intense competition, where capturing a position in the consumers‟ mind space is extremely tough, celebrity endorsements give an extra edge to the companies for holding the viewers‟ attention. Celebrities can catalyze brand acceptance and provide the enormous momentum that brands require by endorsing the intrinsic value to the brand.”5

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Selecting the right celebrity does more than increasing sales; it can create linkages with the celebrities‟ appeal, thereby adding new dimension to the brand image. A few examples of celebrity endorsements are: Sachin Tendulkar - Boost, Shah Rukh Khan - Santro, John Abraham – Garnier, Shilpa Shetty - Pantene and Kajol - Olay. Celebrity endorsements give a brand a touch of glamour and the hope that a famous face will provide added appeal and name recognition in a crowded market. In the battle for the mind, you get the customer excited by showing him a known face, and an effective demand is created. In short it helps increase the recall value of the brand. A piece of research states that the target audience age group of 15-30 gets influenced first by cricketers, then Bollywood stars and only then music, festivals and food.


CELEBRITY ENDORSEMENTS


IMPORTANT CELEBRITY ATTRIBUTES While selecting a celebrity as endorser, the company has to decide the promotional objective of the brand and how far the celebrity image matches with it. The selection is in fact a collaboration, from which both the company and the celebrity gains. The most important attribute for a celebrity endorser is the trustworthiness. The target audience must trust that a celebrity carries a particular image and it must match with the product. The second attribute in order of importance is likeability. The celebrity also must be accepted as a popular icon by a large cross section of the audience. Similarity between the target audience and the celebrity is the third important attribute. A person well-known in a society can have greater impact than a celebrity of a different world. If the endorser and receiver have similar needs, goals, interests and lifestyles, the position advocated by the brand communication is better understood and received. Similarity is also used to create a situation where the consumer feels empathy for the person shown in the commercial. The bond of similarity between the endorser and the receiver increases the level of persuasiveness. Apart from that, expertise is also believed to be another important attribute. Aristotle said, “Beauty is a greater recommendation than any letter of introduction.”6 This could aptly summarize why innumerable products are endorsed by celebrities, with or without a significant need or benefit from the same. The motif behind total branding may be described as an attempt to amalgamate diverse activities to win customer preference. Apropos to this context, the topic “Impact of celebrity endorsement on overall brand”, is a significant one. The crescendo of celebrities endorsing brands has been steadily increasing over the past years. It is a ubiquitously accepted fact that celebrity endorsement can bestow special attributes upon a product that it may have lacked otherwise. But everything is not hunky-dory; celebrities are after all mere mortals made of flesh and blood like us. If a celebrity can aggrandize the merits of a brand, he or she can also exacerbate the image of a brand. 6

This study examines the response of consumers of Lux soap towards the latest television commercials which include commercials showing Priyanka Chopra, Aishwarya and Abhishek.

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This study examines the multiple dimensions of celebrity endorsers and their relationships with product brand image. The main objective of this study is to understand the effect of multiple celebrity endorsers on the brand image and their impact on the purchase intension of the consumers. This is done with reference to the case study of Lux. Over the years Lux has associated itself with top Bollywood actresses as the brand ambassadors. Today, the brand is associated with stars namely Madhubala, Mala Sinha, Hema Malini, Sridevi, Madhuri Dixit,Juhi Chawla, Karisma Kapoor, Rani Mukerji, Amisha Patel, Kareena Kapoor and Tabu. Aishwarya Rai and Priyanka Chopra are the present brand ambassadors of Lux. In India Shahrukh Khan was the first male in a Lux advertisement and he is now joined by Abhishek Bachchan. Lux has been positioned as the “beauty soap of film stars”. Use of actresses known for their beauty seems to be an effective promotion strategy for Lux.


RESEARCH METHODOLOGY


SCOPE OF THE STUDY The study aims to find the overall effect of multiple endorsers on the brand image in terms of creating brand awareness, brand recall and also to find whether use of multiple celebrity helps refresh the brand image over time. OBJECTIVES OF THE STUDY •

To study the impact of multiple celebrity endorsers in increasing brand awareness.

•

To verify whether multiple celebrity endorsers can help improve brand recall

•

To get the opinion of respondents towards celebrities with respect to suitability, expertise and attractiveness

DATA COLLECTION This research makes use of exploratory and descriptive study. The research has been done through structured questionnaire keeping in mind the objective of the study and secondary data analysis. A survey was conducted with the help of survey tool- questionnaire. It contains twenty questions covering all the important parameters involved. Data was collected in a time period of two months. The respondents were asked to answer the questionnaire. RESULT & ANALYSIS

PROFILE OF THE RESPONDENTS

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In keeping with its reputation to rope in high profile Bollywood actors HUL roped in Abhishek Bachchan and Aishwarya Rai in their campaign. The recent campaign for Lux featured Priyanka Chopra in a Cindrella-esque setting. JWT advertising agency has been behind both of these campaigns. The commercial begins with Aishwarya Rai having a leisurely bath in the tub. After she gets ready, Abhishek Bachchan comes home and sits down to read the paper. She sneaks in behind him and gently blindfolds him, while he just takes in the scent of her. What follows is a game of blind man‟s bluff, where he is trying to get hold of her and her soft skin. The campaign is part of the Lux brand idea that is „Behave beautiful‟. It encourages women to enjoy being beautiful, have fun and take pleasure in it. It is playful and demonstrates through soft skin, all the Lux brand values. Aishwarya has been the brand ambassador for Lux since the past 10 years. Who is better than her to launch the new Lux with beauty oils? To make the idea work beyond just a script, Abhishek was also casted with her. It is the couple coming together for the first time. They are real, insync with each other and seen in a role reversal of sorts. Ash is the one playing the prank and Abhishek is at the receiving end. There are very few actresses in the Bollywood, who got opportunity to represent the brand Lux. The newest to be included in the elite list of actresses to represent Lux is Katrina Kaif.


LUX AND THE MARKETING CAMPAIGN


The sample consists of 60 female respondents who are using Lux bathing soap. It was made sure that the respondents include only those ladies who have used Lux in the recent past or are using Lux currently. This was done to understand the consumer‟s views towards the brand and its commercials, and how far these commercials are able to influence the purchase intension of such consumers. The sampling was done to cover a wide range of age group to know their combined views towards the brand. This included college going female students, young housewives and professionals and a small percentage of older respondents in the age group of 40 – 50 years. ANALYSIS TABLE 4.1.1 RESPONDENTS USAGE PATTERN Usage pattern of Lux

No. of Respondents

%

Since Childhood

26

43.3

A Few Years Back (1-10yrs)

20

33.3

Started using recently

14

23.3

No. of Respondents

18-24 yrs

13

25-34 yrs

6

35-44 yrs

1

45+

0

It is clear from Table 4.1 that 43% of respondents are using Lux soap since childhood. In the highly competitive and cluttered soaps segment this clearly shows that Lux has a good percentage of brand Loyalty. 33% of respondents started using Lux a few years back and majority of these fall in the age bracket of 18-24 years and the remaining 23% started using recently.

369

Usage pattern of Lux – Age Wise Few years back (1-10yrs)


TABLE 4.1.2


TABLE 4.2 QUALITY ASSESSMENT BY RESPONDENTS Respondents on the quality Brand

of

take Quality

New Variants

Packaging

No.of % Lux Respondents

No. of % Respondents

No.of % Respondents

Very Good

21

35

15

25

22

36.6

Good

37

61.6

42

70

36

60

OK

2

3.3

3

5

2

3.3

Lux is the second largest selling soap brand which stands right behind Lifebuoy. The reason for this is clear from Table 4.2. On an average 64% of the respondents rank the overall quality of Lux soap as good. They are satisfied with the quality, the new variants introduced and the packaging. The age group of 18-25 yrs is more attracted towards the packaging than the other age groups. The youngsters notice the colours and design pattern which do not make much difference to the older age groups. All the respondents rated Lux as an affordable soap in terms of prizing. TABLE 4.3 RESPONDENTS PURCHASE INTENSION

No. of Respondents

%

Yes

20

33.33

No

40

66.66

Table 4.3 indicates that only 33% of the respondents buy Lux because they think it is a beauty soap of film stars. The remaining 67% buy the soap for its quality, price and additional offerings. The age group most influenced by the celebrities is in the age bracket 25-34 years and the age group least influenced is 35-44 years and 45+ respondents. For them what matters is the quality and not the celebrity in the advertisement.


Buy because Lux is beauty soap of film stars

370

Purchase Intension


TABLE 4.4 RESPONDENTS RECALL VALUE Respondents message

recollect

advertising No. of Respondents

%

Yes

27

45

No

33

55

It is understood from table 4.4 that 45% of the respondents remember the advertising message which includes the scheme for gold coin in the soap and the recent musical commercial with Aishwarya and Abhishek. The remaining 55% could recollect the celebrity in the commercial but could not re-collect the message as such. Proving that celebrities can enhance the image of the brand and improve brand awareness through increased brand association. Today consumers are exposed to innumerable advertisements; use of celebrities breaks this clutter and quickly attracts the attention of the consumers. This is not possible with non-celebrity endorsers. TABLE 4.5 CELEBRITY ENDORSERS RECOGNIZED BY THE RESPONDENTS Recent Celebrity endorsers

No. of Respondents

%

Aishwarya Rai

51

85

Priyanka Chopra

17

28

Table 4.6 shows that the highly remembered top actresses of their times are Hema Malini („70s) and Sri Devi („80s). This is followed by top actresses of recent past which include Juhi Chawla („90s), Madhuri Dixit („90s) and Kareena Kapoor.

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Table 4.5 shows that 85% of respondents were able to recollect the recent commercials of Aishwarya Rai especially the one with Abhishek Bachhan. 28% of respondents could remember Priyanka Chopra‟s commercial too. The result is a clear indication that celebrities are successful in placing the brand on top of the minds of the consumers. Celebrities help advertisements stand out from the surrounding clutter, thus improving their communicative ability. This leads to a high recall value which is profitable for the marketers. Lux was launched in India in 1929 and since then it has heavily advertised in India using Bollywood stars Madhubala, Mala Sinha, Hema Malini, Sridevi and many more. In an attempt to know how many of these stars the consumers remember, they were asked to go back to their childhood and teenage days and try to remember as many Lux stars as they could re-call.


identified by respondents


TABLE 4.6 OLD CELEBRITY ENDORSERS IDENTIFIED BY RESPONDENTS Old Celebrity endorsers identified

No. of Respondents

%

Hema Malini

11

18.3

Sri Devi

11

18.3

Madhuri Dixit

7

11.6

Juhi Chawla

12

20

Karishma Kapoor

2

3.3

Rani Mukherjee

1

1.6

Kareena Kapoor

7

11.6

by Respondents Celebrities

*Celebrities in the order of their appearance in the commercials Since the time of its launch Lux has relied on film stars to revive its image. Respondents were able to remember many models of yesteryear, who stood by the beauty soap. The result is a clear indication that presence of beautiful actresses in the advertisement attracts attention of the consumers and leaves a memory behind. It was interesting to note that a few percentage of respondents could also re-collect the commercial of Sharukh Khan in a bathtub. This commercial was aired in the year 2005 on the occasion of HLL celebrating 75 years of the brand Lux. Showing a careful selection of models, Lux have always used top actresses of their time, who are famous among the audiences at large. Thus consumers relate to the model, enjoy and tend to remember the commercials more. Use of multiple celebrities has proved to a successfully marketing strategy for Lux.

Lux commercials are attractive

reaction

No. of Respondents

%

Yes

50

83.33

No

10

16.66

372

Respondents


TABLE 4.7 RESPONDENTS REACTION TO THE COMMERCIAL


According to Table 4.7 concerned with the respondent‟s attitude towards Lux commercials, 83% responded saying that they find Lux commercials attractive. The biggest reason for this is the presence of beautiful and actresses in all the commercials. The way these film stars are shot and presented attracts the viewers. A few percentage of respondents expressed their liking for the commercial jingles, the concept and the presentation of the Lux commercials. In reference to the latest commercials of Aishwarya with Abhishek Bachhan who are found playing a hide and seek game, one respondent said “I really like the ad for the fun filled game between the husband and the wife. The concept is close to my heart”. The result show that the credibility of the setting therefore influences the credibility of the celebrity and the associations the consumer ends up with. This commercial is admired by young house wives in the age group of 25-34 years. They Love the advertisement for its concept and the setting which seems natural and real. TABLE 4.8 RESPONDENTS REACTION TO THE COMMERCIAL Respondents

It is refreshing to see new celebrities

reaction No. of Respondents

%

Yes

54

90

No

6

10

373

There is multiple advantage of using multiple celebrities. It is understood from Table 4.9 that 68% of respondents believe that a new face used to convey a new message is easier to register. For example Kathrina Kaif introduces a new variant Lux purple.


Lux has owned the concept of use of multiple celebrity endorsers for ages and has been extremely successful. Table 4.8 shows that 90% of the respondents find Lux commercials refreshing and attractive because of multiple celebrities that appear from time to time. The recent example is that of Kathrina Kaif promoting Lux Purple a new variant Launched by HLL. By doing so Kathrina has joined the current brand ambassador Aishwarya Rai. Respondents say that they like watching Lux commercials for the changing models. The reason being, viewers look for variety. New faces are interesting and help breaks the monotony. Lux uses Top models; Kathrina is the top actress now and so she is suitable and makes a good connect with the audience. The result shows that multiple celebrity endorsers have helped Lux refresh the brand image overtime. By using current top actresses Lux stays current too.


TABLE 4.9 RESPONDENTS REACTION TO THE COMMERCIAL Respondents

New face help in easy registering of

reaction

new message No. of Respondents

%

Yes

41

68.3

No

19

31.6

The advertisement could have been made using Aishwarya, the current brand ambassador, but Kathrina was introduced as the new brand ambassador. This is to give a new identity and a strong image to the new variant. TABLE 4.10 SUITABILITY OF CELEBRITIES FOR THE BRAND LUX Suitability

Aishwarya and Priyanka are

%

Yes

58

96.6

No

2

3.3

Table 4.10 shows that 97% of respondents agree that Aishwarya Rai and Priyanka Chopra are naturally beautiful and thus the perfect choice to promote beauty soap like Lux. This shows that consumers like both the endorsers Aishwarya and Priyanka in all aspects including suitability and attractiveness with respect to the brand. In the case of beauty soap, the idea of using stars known for their beauty is right. Majority of respondents mentioned that Aishwarya is extremely beautiful and so it is right for her to endorse famous beauty soap like Lux. The result proves the Source Attractiveness Theory as correc. According to Source Attractiveness Theory, which is based on social psychological research, the acceptance of the message depends on familiarity, likeability and similarity. Familiarity is the audience‟s knowledge of the source through exposure; likeability is the affection for the source‟s physical appearance and behavior while similarity is the resemblance between source and receiver. Aishwarya Rai has been a popular public figure from the time she won the Miss World title which was like a stamp confirming her beauty. The viewers know her well through her appearances in films and articles in magazines. She has been admired for her beauty in the media

374

No. of Respondents


beautiful stars to promote Lux


and audience gets exposed to this. Thus the respondents are convinced of her beauty. Many respondents were found saying “Definitely Aishwarya is beautiful. No doubt about it.” Indirectly the respondents spoke about source credibility factor. A factor that was stated by a large part of the respondents was the “beauty” factor, referring to celebrities that are perceived as beautiful the respondents have more positive associations with. Thus the respondents find Aishwarya Rai as an extremely suitable model to endorse Lux beauty soap. TABLE 4.11 RESPONDENTS PURCHASE INTENSION Respondents

Buy if their favorite actress appear

influenced by

in the commercial

celebrities

No. of Respondents

%

Yes

11

18.3

No

49

81.6

Table 4.11 shows the influence of celebrities on the respondents purchase intensions. It is clear from table 4.11 that 82% of respondents did not buy Lux because their favorite actress appeared in the commercial. However there exists a percentage of audience (11%) who bought Lux because their favorite actress was in the commercial. Such respondents mostly fall in the age group of 25-34 years. Many were found to have a fairly common perception that most celebrity endorsement is about the celebrity using his/her image to make some extra money as one of the respondents put it; “it basically boils down to money.” This reflects a perception that the celebrity is more into making money than actually believing in the product being endorsed.

Respondents

Buy if their favorite actress appear

influenced by

in the commercial

celebrities

No. of Respondents

%

Yes

11

18.3

No

49

81.6

375

TABLE 4.12 RESPONDENTS PURCHASE REACTION


The final results show that majority of respondents are not influenced by the celebrities in terms of purchase. Table 4.12 shows that 77% of respondents will continue buying Lux even if the celebrities in the commercials are replaced by non-celebrities. This shows that Celebrities can enhance the brand image and improve awareness but cannot directly influence the customers‟ intension to buy the brand.


TABLE 4.13 RESPONDENTS REASON TO BUY LUX SOAP Reasons

No. of Respondents

%

Trust on Brand

33

55

Variety Available

23

38.3

Friend Suggested

3

5

Discounts/Offers

1

1.6

It is understood from table 4.13 that 55% of respondents buy Lux because it is a very old brand present in the market. Thus the consumers trust the brand for its high quality. 38% of respondents also buy it for the variety available. Most of these fall in the age group of 18-25 years. This is the age when girls like to experiment; they are attracted to the new variants and flavors available. They are open to trying out new things and thus they make random purchases. TABLE 4.14 RESPONDENTS PURCHASE INTENSION

No. of Respondents

%

Yes

56

93.3

No

4

6.6

Table 4.14 shows that 93% of respondents will continue to buy Lux, as they trust the brand and are extremely satisfied with the quality and results. Since the majority of respondents have been using Lux since childhood, they are comfortable with the soap, as it suits their skin type. A percentage of these respondents are hesitant to try new brands, they prefer to use Lux only. However few percent are open to try new brands but they will continue buying Lux thus proving Lux is one of India‟s most trusted personal care brands. TABLE 4.15 RESPONDENTS CHOICE No. of Respondents

%

Multiple

43

71.6

Single

17

28.3

Multiple Endorsers V/s Single Brand Ambassador


Continue to buy Lux

376

Respondents Purchase Intension


Celebrity endorsement if used effectively makes the brand stand out. HLL has successfully used the Multiple celebrity strategy for many years now. Table 4.15 clearly proves this by showing that 72% of respondents prefer multiple celebrity endorsers for Brand Lux. In this jet age, people tend to ignore all commercials and advertisements while flipping through the magazines and newspapers or viewing TV. But then the glamour of a celebrity seldom goes unnoticed. Consumers always look for variety and entertainment and this could be offered by use fresh faces in the commercials. Yet 28% of respondents think that it is better to have one brand ambassador for one brand to avoid confusion. However as marketers have to go by what the majority like, the concept of multiple celebrity endorsers seem to be liked by many consumers.

The study proves the Source Attractiveness Theory as correct. Majority of respondents like the idea of using actresses as endorsers for a beauty brand like Lux. Since Lux is associated with beauty and glamour and Aishwarya is a beautiful actress with the title of Miss World, the consumers associate both Lux and Aishwarya and they love seeing her in the advertisements. Now that she is married the commercial with her husband Abhishek has also become a favorite

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Hindustan Lever‟s soap „Lux‟ in India has been using popular film actresses to endorse the brand since its launch four decades ago. This consistent message reinforces the brand values and has successfully positioned the soap as the „beauty soap of film stars‟. The study reveals that many respondents are using Lux since childhood. This shows the high trust and brand loyalty of the consumers towards the Brand. More than 50% rated the quality of Lux as good and extremely satisfactory. Respondents were able to remember many models of yesteryear, which stood by the beauty soap. The result is a clear indication that presence of beautiful actresses in the advertisement attracts attention of the consumers and leaves a memory behind. It was interesting to note that majority of them could immediately recollect Aishwarya and Abhishek Bachhan commercial and the advertising message too (New Lux with beauty oils). The result is a clear indication that celebrities are successful in placing the brand on top of the minds of the consumers. This leads to a high recall value for the brand which is profitable for the marketers. Again from the marketers point of view multiple celebrity endorsers help connect with the different and diverse target audiences of their products. One should however be careful in this strategy to take care of the core brand values especially when using several different celebrities to endorse the core brand. As far as attractiveness is concerned, customers rate Aishwarya Rai as their first choice, and perfect match for a beauty brand like Lux. There are multiple advantage of using multiple celebrities. Many responded saying that a new face used to convey a new message is easier to register. For example Kathrina Kaif introduces a new variant Lux purple. The advertisement could have been made using Aishwarya, the current brand ambassador, but Kathrina was introduced as the new brand ambassador. This is to give a new identity and a strong image to the new variant. Interestingly the Study revealed that many respondents were not influenced by the celebrities and their purchase decision would not be influenced even if new celebrities were introduced. The age group most influenced by the celebrities is in the age bracket 25-34 years and the age group least influenced is 35-44 years clearly proving that celebrity endorsers can enhance the brand image and improve awareness but they cannot directly influence the customers intension to buy a brand, because this decision is normally taken after a careful evaluation with regard to quality, price, and other added features offered by the brand.


DISCUSSION


with many young married women creating increased brand association. They Love the advertisement for its concept of a fun filled game between the husband and the wife. The study revealed that majority of consumers buy Lux for its quality, they trust the brand as it has been in the market for long. However some respondents in the age group of 18-25 years bought Lux for a new variant which interested them, as this is the age when girls are highly conscious about their skin and yearn for good looks and they don‟t mind experimenting. The top favorite variants were found to be the Chocolate Seduction and Nourishing Radiants with almond and honey extract. Finally it was found that South Indian Families are health conscious and they look for the ingredients of the soap in terms of medicinal values. As a reason Hamam, Medimix, Santoor and Dettol are more famous brands in Southern India as compared to the North where Lux has a bigger market share. CONCLUSION

RECOMMENDATIONS Following recommendations are made: • For marketers the study clearly indicates that consumers prefer multiple celebrities as they offer variety and entertainment and it is refreshing to watch new faces.

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Trust worthiness, expertise, physical attractiveness, familiarity and likeability of the source. Further, the importance of the criteria depends on the product brand to be endorsed. Respondents find Aishwarya Rai a suitable brand endorser for Lux. Thus right use of celebrity can escalate the Unique Selling Proposition of a brand to new heights. New faces are interesting and help breaks the monotony. Marketers have to go by what the majority likes, the concept of multiple celebrity endorsers seemed to be liked by many consumers. By using current top actresses brand Lux stays current too. This study also reveals that majority of respondents are not influenced by the celebrities in terms of their buying decision. Many respondents were found to have a common perception that most celebrity endorsement is about the celebrity using his/ her image to make some extra money, reflecting a perception that the celebrity is more into making money than actually believing in the product being endorsed. Many respondents stated that they will continue buying Lux even if the celebrities in the commercials are replaced by non-celebrities. Thus marketers should understand that using celebrities alone cannot help them sell the product. Use of celebrities cannot replace the comprehensive brand building processes. As branding evolves as discipline, marketers must be extra cautious to utilize every possible channel of communication and when all other steps in the branding process is followed and implemented, and then channels such as celebrity endorsements can provide the cutting edge for the brand.


Celebrity endorsement if used effectively, makes the brand stand out, galvanizes brand recall and facilitates instant awareness. To achieve this, the marketer needs to be really disciplined in choice of a celebrity. They should consider a range of criteria when choosing celebrity endorsers, including


• Selection of the right celebrity makes all the difference. Advertisers should consider a range of criteria when choosing celebrity endorsers, including trustworthiness, expertise, physical attractiveness, familiarity, and likeability of the source. • Marketers must understand that celebrity‟s glamorous looks can be used only to attract the customer‟s attention. They cannot directly influence the consumers purchase decision. Thus an integrated marketing approach is required to achieve the desired marketing goals. REFERENCES BOOKS 

David A Aaker; Building Strong Brands; New York,The Free Press; (1996)



David A Aaker & Erich Joachimsthaler; Brand Leadership; The Free Press; 2002



Parmeshwaran M.G; Brand Building Advertising; Tata McGraw Hill



Tapan K. Panda; Building Brands in the Indian Market; Excell Books



Colford, Steven W, “How to find the Right Spokesperson”, Advertising Age



S. Ramesh Kumar; Managing Indian Brands; Second Edition



Strategic Brand Management; Edition: Second;



Author: Jean Noel Kapferrer; 2000.

Bedabal Ray; Advertising Express; ICFAI University Press; “Celebrity: Characteristics, Selection and Consumer Mindset”; June 2007; Pg 48-53



Devi Prasad Mahapatra; “Star Power: Enhancing Brand Equity”; Advertising Express; ICFAI University Press; March 2007; Pg 51-55



Agrawal and Kamakura; “The Economic worth of celebrity endorsers: An event study `analysis”, Journal of Marketing, Vol 59, (1995) July, Pgs: 56- 62



“An Examination Of The Celebrity Endorsers‟ Characteristics And Their Relationship With The Image Of Consumer Products.” UniTAR e-Journal, 3 (2). pp. 27-41.



Srikanth Srinivasa Madhavan; Leveraging Secondary brand associations to build brand equity; “Celebrity Endorsement”; Pg 326-331.

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


JOURNALS


http://www.journalofconsumerpsychology.com/ pdf/SCP2008Proceedings.pdf#



http://www.emeraldinsight.com/Insight/ viewContentItem.do?contentId=857777&cont entType=Article; “An examination on multiple celebrity endorsers in advertising”



Christina Schlecht; Celebrities‟ Impact on Branding; Columbia Business School; January 15, 2003



Vinod Mahanta & Prasad Sangameshwaran; “The great Indian celebrity trap in advertising”; http:// economictimes.indiatimes.com; 3 Feb 2010

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INTERNET SOURCES


IS TASLIMA NASRIN A SECULAR HUMANIST OR RADICAL FEMINIST? J. JAYA PARVEEN*; V. RAJESH** *Assistant Professors, VV College of Engineering, Tisaiyanvilai, Tuticorin, Tamilnadu. **Assistant Professors, VV College of Engineering, Tisaiyanvilai, Tuticorin, Tamilnadu. ABSTRACT

Feminists struggle for equal rights. Post-feminists say that women have achieved equality and are returning to motherhood, domesticity, consumerism, etc. Radical Feminists totally dismiss patriarchy and demand female supremacy. They resemble Marxists in struggling for total and radical change in the society. But Marxists' struggle is between classes while Radical Feminists' struggle is between women and men. Radical feminism is a theoretical view in feminism which considers patriarchy as the main reason for female suppression. Radical feminists claim that patriarchy 'intentionally and systematically' oppressed and marginalized women. According to them, 'gender' is a social construct created by men to glorify them and defame women. They want to get rid of patriarchy and change the society completely through revolt and revolution. Taslima Nasreen is an award-winning writer. She is from a traditional Muslim family in Bangladesh. She becomes a writer by quitting her job as a doctor. She writes poems, columns, essays, and novels against women oppression. Her works are famous for her revolutionary views on patriarchy, religion, love, marriage, etc. This paper will analyse whether she is a secular humanist or radical feminist. __________________________________________________________________________

Taslima is a radical feminist, secular humanist, and human rights activist. She writes against regional communalism, religious fanaticism, women slavery, etc. She expresses her anger on the country's strict laws and arrogant treatment of minority communities along with its vulgar treatment of women. Her works are seriously viewed by Muslim fundamentalists and are banned by Bangladesh Government.

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Taslima Nasrin is a doctor-turned-writer from Bangladesh. She writes poems and novels in Bengali, her native language. They are translated into various languages like English, French, German, Spanish, Dutch, Swedish, Norwegian, Italian, Arabic, Persian, Hindi, Urdu, Marathi, Malayalam, Assamese, Nepali, etc.


INTRODUCTION


Taslima brings to limelight the dark truths of the Islamic society. Her critical views on religions, especially Islam, have made her world-famous. People in Bangladesh have no freedom of expression. She thinks that most of them have become vegetables without having the right to question against the rules. She is unable to nod like a cow or sheep, so faces a lot of problems in and outside the country. (Nasrin, 1997) Taslima has been kept under house arrest. She goes in exile, and a „fatwa‟ has been issued to her. A cash prize has been announced by an extremist group for killing her. Though she lives in exile, she remains firm and bold. She misses her country very much, but continues talking and writing for national integration, secular humanism, women empowerment, etc. TASLIMA NASRIN AS A SECULAR HUMANIST Taslima Nasrin is a Muslim by birth. But she does not believe in Islam. She questions Prophet Mohammed's life and teachings. She does not want to follow any religion blindly. In the novel “Shame” (“Lajja” in Bengali), she talks about the oppression of Bangladeshi Hindus by the Bangladeshi Muslims. Since its separation from India, the country is facing a lot of problems. It has fought with Pakistan to get its freedom. It has revolted to have Bengali as the national language. In spite of strong protests, Islam is declared as the state religion. Every time there is a Hindu-Muslim riot in India, Bangladeshi Muslims attack the Bangladeshi Hindus.

Taslima is not an enemy of Islam, but all the religions in the world. She says that if any religion allows the bloody murder of people of other religions, considers women as slaves, and stops people from acquiring knowledge, then she can't accept that religion. She considers the fight between secularism and fundamentalism as the conflict between modern, rational, logical thinking and irrational, blind faith. It is a conflict between modernity and anti-modernism. It is a fight between the future and past, innovation and tradition, and people who value freedom and

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She criticizes not only Bangladesh but also a few western countries for their double standards. “Some Western states have declared the protection of human rights to be one of their supreme objectives, but they patronize fundamentalism both overtly and covertly.” (Nasrin, 1999) She condemns democratic and secular nations for encouraging fundamentalism indirectly. She says, “Democratic governments recognize military dictatorships for short-run political interests. Secular states make friends with autocracies as well as theocracies. They even tolerate the completely inhuman behavior of their own fundamentalists. Such double standards practiced by so-called democratic and secular states at home and abroad give the fundamentalists a sort of legitimacy.” (Nasrin, 1999)


In “Shame”, Taslima narrates the painful experiences of Hindu families with hidden or borrowed Muslim identities living in and around Bangladesh. She gives the statistics of Hindus moving away from Bangladesh to India, leaving behind all their lands, cattle, and national feelings. Bangladeshi Hindus who stay with firmness are tortured by the Bangladeshi Muslims. Hindu women are raped, and men are abused or attacked by gangsters. Their deep sorrow is carefully portrayed by Taslima which has earned her a worldwide popularity and regional hatred at the same time.


who do not. (Nasrin, 2004) She condemns the Muslims' holy war or jihad on the non-believers of Islam. Taslima wants to combine East Bengal (Bangladesh) and West Bengal (in India) for the benefit of Bengalis who share the same language, culture, and national feelings. She questions why Bengali friends and relatives should be separated in the name of religion. According to her, the political parties don't have real devotion, but they use religion for their own interests. Whenever they find a criticism about religion, they take it as an opportunity to conduct rallies and riots. Nasrin (2004) says, “I believe that the diversity of our world‟s many religions, languages, cultures and ethnicities is not a pretext for conflict, but is a treasure that enriches us all. There is no superior, no inferior culture in this world, only various cultural patterns that make up our beautiful multicoloured mosaic.” According to her, “Humans should not allow oppression in the name of religion. Humans should not allow torture such as female genital mutilation in the name of custom or traditions. Humans should not allow barbarism, humiliation, inequality, or injustice in the name of culture. Culture should not be and must not be used against humanity.” (Nasrin, 2004) In the poem “Mosque, Temple”, she says, “For the welfare of humanity, now let prayer halls be turned into hospitals, orphanages, universities. Now let prayer halls become academies of art, fine art centers, scientific research institutes. Now let prayer halls be turned to golden rice fields in the radiant dawn, open fields, rivers, restless seas. From now on, let religion's other name be humanity.” As she rejects all the religions and works hard for humanism, she can rightly be called a 'secular humanist'. TASLIMA NASRIN AS A RADICAL FEMINIST

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“Nature says women are human beings, men have made religions to deny it. Nature says women are human beings, men cry out NO!” (Nasrin, n.d). Taslima thinks that every woman is oppressed in spite of her country, colour, caste, creed, religion, etc. “Women are oppressed in the east, in the west, in the south, in the north. Women are oppressed inside, outside home . Whether a woman is a believer or a non believer, she is oppressed. Beautiful or ugly, oppressed. Crippled or not, rich or poor, literate or illiterate, oppressed. Covered or naked, she is oppressed. Dumb or not, cowardly or courageous, she is always oppressed.” (Nasrin, 2004). She revolts against the patriarchal society and disobeys the rules and customs which oppress women.


Radical feminism is a theoretical view in feminism which considers patriarchy as the main reason for female suppression. Radical feminists claim that patriarchy 'intentionally and systematically' oppressed and marginalized women. According to them, 'gender' is a social construct created by men to glorify them and defame women. They want to get rid of patriarchy and change the society completely through revolt and revolution. Taslima is a supporter of 'Radical Feminism' as she claims that men have made religion to suppress women, and women have to break the religious and social rules to attain equality and freedom.


Taslima Nasrin feels proud to be a disobedient woman. When her mother asks her not to leave the house, she questions why. Her mother has no explanation but a lot of rules to follow blindly – Girls should not walk around outside. They should recite prayers, observe fasting, and live behind „burka‟ or 'Islamic veil'. Taslima argues why boys are allowed to wander on the riverbanks while girls should sit at home. She feels disgusted to marry someone whom she has never met in her life before. She advises young girls who are compelled to get married in this way to run away from home or refuse the offer during the marriage ceremony. (Nasrin, 1997) In Taslima Nasrin's home country, nearly 40 million women have no education or employment. Due to the country‟s strong patriarchal tradition, women suffer unbearable inequalities and injustices. They suffer from malnutrition and anaemia as well as from the physical and psychological problems that are not treated. Women normally remain untreated because they are not taken to hospitals until they reach terminal stages. They are considered as inferior beings, servants, and sexual objects. (Nasrin, 2004) Women suffer from slavery, trafficking, and all kinds of discrimination. Men throw acid on women‟s bodies, burn their faces, smash their noses, melt their eyes, and walk away as happy men. Women are beaten, are flogged, are stoned to death. Violence against women is not considered a crime in her country. (Nasrin, 2004)

She sympathizes women who live with their husbands who torture them until death. They don‟t want themselves to be seen as fallen or ruined women by the society. They think they don‟t have the knowledge and courage to make the right decisions. She hates the law which allows the men to marry three or four women and keep them all in one house. Bangladeshi women cannot question this because they are bound by the religious laws. (Nasrin, 1997) There are blind faiths in all the religions. Hindus practise balyavivaha (child marriage), sati (burning of women along with their dead husbands), female infanticide, vidava-vrata

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There are two sins which Allah will not forgive. People who disbelieve Islam and women who do not satisfy their husbands at night will be severely punished by him. According to the religion, men enjoy all the privileges while women suffer to the core. Muslim women have to use 'burka' or 'Islamic veil' to avoid men getting sex urge towards them. Taslima Nasrin asks why women should wear it when men have problems. She also says that women also have sex urge, but they are not asking men to reveal or conceal anything. (Nasrin, 2010)


According to Muslim beliefs, a woman victim of rape has to produce four male witnesses. Otherwise the case is withheld, giving no punishment to the rapist. If a man doubts his wife for adultery, he can act as the only witness for punishing the woman. Women are raped but accused of allowing the rape, and the rapists are set free. Mohammed is 53 years old when betrothed to 6-year old Aisha, his second wife. Mohammed has twelve wives. So men in Islam can marry any number of women. Mohammed marries his adopted son's wife, so adoption is abolished in Islam. Islam allows men to marry many times while women cannot remarry even when the husband is dead. Men who follow Islam will be given 72 virgins along with their worldly wives in the Heaven. There is no favour for women who serve men throughout their life times. (Nasrin, 2010)


(shaving the head, removing the sindur and jewels, and wearing white sari), devadasi system (women of particular families becoming prostitutes not by willingness but by inheritance), etc. Slowly all the traditions disappear as they are not relevant to today's lives. According to Bible, Eve has brought sin to the whole mankind, and women are inferior to men. Polygamy and use of concubines are clearly accepted in the Old Testament. The holy book explicitly tells slaves to accept their roles and obey their masters. But Christians don't support slavery or hurt women in the name of religion today. In Islam, stoning for adultery and amputation for stealing are legalized. Though there is no legitimization of slavery, men enslave women. In the name of religion, they teach women to believe that they are slaves of men. Women are not allowed to protest against the patriarchal system and instructed to remain silent against their abusers. Because of this, women are unable to accept the idea that they are human beings and have the right to live as independent and equal human beings. (Nasrin, 2004) Taslima Nasrin wants to create an awareness and encourage women to fight for their freedom. In the poem “My Life”, Taslima describes the life of a woman who is destined to be a proper house wife. The woman's life is like a sandbar taken over by a monster man. He behaves as if her body is his own property. He wants to keep her body under his control so that he can spit on her face, slap on her cheek, and pinch her rear. “He wants my body under his control So that if he wishes he can rob me of the clothes And take the naked beauty in his grip.” He wants her to think about him all the time. He prevents her from going outside or seeing other men. Though he loves or marries many women, the wife should devotedly wait for him all her life. She should remain sleepless and anxious, clutching the window grill and sobbing. He demands her to live and die for his sake. Showing Quran as the rule book, man enjoys all the advantages while the woman suffers like hell everyday.

Not turning my eyes toward any other man, I would give proof of my chastity all my life... So that, loving him On some moonlit night I would commit suicide In a fit of ecstasy.” (Nasrin, 1995)

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So that, loving him, I would melt like wax,


“He wanted my heart under his control


In the poem “Another Life”, she sympathizes the lives of women who know nothing except household chores. They should give birth and take care of children. They have the responsibility of keeping their husbands happy. They are not supposed to become sick as they should remain busy with home-making. They help everybody in the house, but remain desperate without a caring heart or helping hand throughout their lives. “Women spend the afternoon squatting on the porch, picking lice from each other's hair. They spend the evening feeding the little ones, lulling them to sleep in the glow of the bottle lamp. The rest of the night they offer their back to be slapped and kicked by the men of the house or sprawl half-naked on the hard wooden cot. Crows and women greet the dawn together, the women blowing into the oven to start the fire, tapping on the back of the winnowing tray with five fingers and, with two, picking out the stones. Half their lives women pick stones from the rice. All their lives stones pile up in their hearts,

When she sympathizes women who are victims of rape and domestic violence, she mocks at the women who yield themselves for the sake of materialistic pleasures. She says that even dogs at home have the freedom to bark. But these cheap women have 'golden locks' in their mouths. In the market nothing can be had as cheap as women. If they get a small bottle of alta for their feet They spend three nights sleepless for sheer joy. If they get a few bars of soap to scrub their skin


no one there to touch them even with two fingers. (Nasrin, 1995)

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And some scented oil for their hair


They become so submissive that they scoop out Chunks of their flesh To be sold in the flea market twice a week. If they get a jewel for their nose They lick feet for seventy days or so, A full three and a half months If it's a single striped sari. Even the mangy cur of the house barks now and then, And over the mouths of women cheaply had There's a lock A golden lock. (Nasrin, 1995) When everybody condemns Eve for tasting the forbidden fruit, Taslima questions why Eve should not do that. She asks whether Eve doesn't have a stomach which feels hunger and a tongue which feels thirst. She questions why she should subdue her thirst to keep Adam moving around the Garden of Eden all his life. She claims that only because Eve has eaten the forbidden fruit, we have knowledge and life on the earth. Because Eve did eat of the fruit, There is sky and earth. Because she has eaten, There are moon, sun, rivers, seas,

Taslima cries for the sorrow of every Bangladeshi woman. She raises her voice for the freedom of every woman who lives as a slave. Noorjahan is a Bangladeshi woman. She is divorced by her husband. Her remarriage is considered against the Islamic law. She is dragged out of her house and buried up to her waist. People throw stones at her for alleged adultery. Due to distress and frustration, she commits suicide. Hearing this, Taslima becomes wild and ferocious. She expresses her sorrow and anger in the following poem: They have made Noorjahan stand in a hole in the courtyard,


Because she has eaten, trees, plants, and vines. (Nasrin, 1995)

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There she stands, submerged to her waist with head hanging.


They're throwing stones at Noorjahan, These stones are striking my body. Stones are striking my head, forehead, chest and back, They're throwing stones and laughing aloud, laughing and shouting abuse. Noorjahan's fractured forehead pours out blood, mine also. Noorjahan's eyes have burst, mine also. Noorjahan's nose has been smashed, mine also. Through Noorjahan's torn breast, her heart has been pierced, mine also. Are these stones not striking you? They're laughing aloud, laughing and stroking their beards, there are tupis stuck to their heads, they too are shaking with laughter. They're laughing and swinging their walking sticks; from the quiver of their cruel eyes, arrows speed to pierce her body, my body also. Are these arrows not piercing your body? (Nasrin, 1995)

Taslima Nasrin argues against some westerners who find a sort of stability and social peace in the oriental world and say that not all the customs in the Muslim countries are harmful for women. According to her, this idea is nonsense. “There can be no difference in the concept of human rights between the East and the West. If the veil is bad for Western women, then it is bad for their oriental sisters as well. If patriarchy is to be fought against in the West, it should be equally fought against in the East. The fight, in fact, is more urgent there because most of the women have neither any education nor

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CONCLUSION


Taslima Nasrin says, “The insistence of continuation of practices which denigrate, oppress, and suppress women under the guise of scriptural reference is a hoax.” (Nasrin, 2004) According to her, religious scriptures are out of time and out of place. She says that religious law, which discriminates against women, needs to be replaced by secular law and a uniform civil code. She strongly believes that religions are made by men for men. Women who seek freedom and equality should reject the patriarchal society and religion.


any economic independence. If modem secular education is good for Western should the Eastern women be deprived of it!” (Nasrin, 1999)

women,

why

Taslima is called the child of controversy. She reminds us of the 'morally inspired disobedience' of Mahatma Gandhi, Martin Luther King, and Nelson Mandela who have changed the governments and societies. “I have a dream: I dream of a beautiful world, where no woman will be oppressed, will not be a victim of trafficking, acid throwing, rape, and sexual assault. I dream of a tolerant world where human beings will respect each other, a respect that would not give way to war, bloodshed, or violence. I have been writing to make my dream come true, an ethical world in which humanity will flourish with humans full of love, not with humans full of hatred.” (Nasrin, 2004) Taslima Nasrin risks her life for the sake of secular humanism and women freedom. She bravely says, “Come what may, I will continue my fight for equality and justice without any compromise until my death. Come what may, I will never be silenced”. (Nasrin, 1995) As she tries to break the religious laws and social customs for the sake of humanism and women freedom, she can be viewed both as a 'secular humanist' and 'radical feminist'. WORKS CITED Nasrin, Taslima. (1995) The Game in Reverse: Poems by Taslima Nasrin. Trans. Carolyne Wright. New York: George Braziller. Nasrin, Taslima. (1997). “A Disobedient Woman”. New Internationalist. Retrieved on 12.3.12 from . Nasrin, Taslima. (1999). “For Freedom of Expression”. Commission V of UNESCO's General Conference. Retrieved on 10.03.12 from .

Nasrin, Taslima. (n.d). Taslima Nasreen – Bangladesh. Retrieved on 05.03.12 from .

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Nasrin, Taslima. (2010). “The Rise of Atheism”. Global Atheist Convention 2010, Melbourne. Retrieved on 7.3.12 from .


Nasrin, Taslima. (2004) Taslima Nasrin - Winner of the 2004 Unesco-Madanjeet Singh Prize. Retrieved on 10.03.12 from .


LEVEL - TESTING IN SOFTWARE TESTING SHIV KUMAR HASMUKHRAI TRIVEDI*; KALYANI M RAVAL** *Senior System Administrator, (S.E.C.C) Socio Economic and Cast Census, Central Govt. Project, Bhavnagar, Gujarat, India. **Lecturer, M. J. College of Commerce. Maharaja Krishnakumarsinhji Bhavnagar University, Bhavnagar, Gujarat, India.

ABSTRACT Software testing is any activity aimed at evaluating an attribute or capability of a program or system and determining that it meets its required results. Although crucial to software quality and widely deployed by programmers and testers, software testing still remains an art, due to limited understanding of the principles of software. The difficulty in software testing stems from the complexity of software: we can not completely test a program with moderate complexity. Testing is more than just debugging. The purpose of testing can be quality assurance, verification and validation, or reliability estimation. Testing can be used as a generic metric as well. Correctness testing and reliability testing are two major areas of testing. Software testing is a trade-off between budget, time and quality.Software testing is one of the “verification and validation” or V&V software practices. In this paper we have described four software testing techniques which are classified by purpose. KEYWORDS: V & V, Software Testing, Correctness Testing, Performance Testing, Reliability Testing, Security Testing. ______________________________________________________________________________ INTRODUCTION

1. Verification is the checking or testing of items, including software, for conformance and consistency by evaluating the results against pre-specified requirements. [Verification: Are we building the system right?] 2. Error Detection: Testing should intentionally attempt to make things go wrong to determine if things happen when they shouldn‟t or things don‟t happen when they should.

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Testing software is operating the software under controlled conditions, to (1) verify that it behaves “as specified”; (2) to detect errors, and (3) to validate that what has been specified is what the user actually wanted.


SOFTWARE TESTING: Software testing is more than just error detection;


3. Validation looks at the system correctness – i.e. is the process of checking that what has been specified is what the user actually wanted. [Validation: Are we building the right system?] The definition of testing according to the ANSI/IEEE 1059 standard is that testing is the process of analysing a software item to detect the differences between existing and required conditions (that is defects/errors/bugs) and to evaluate the features of the software item. The purpose of testing is verification, validation and error detection in order to find problems – and the purpose of finding those problems is to get them fixed. OBJECTIVES 

To improve quality of software



Testing is a process to identify the correctness and completeness of the software.



To exercise or evaluate a system by manual or automatic means to verify that system meets the user requirements and check for the systems reliability.

WHY SOFTWARE TESTING? To produce quality product To reduce the failure cost and maintenance cost. To detect defects early and reduce the cost of defect fixing. To ensure that product works as user expected it to. SOFTWARE TESTING LIFECYCLE – PHASES

Testing Cycle starts with the study of client‟s requirements.



Understanding of the requirements is very essential for testing the product.

2. TEST CASE DESIGN AND DEVELOPMENT 

Component Identification



Test Specification Design



Test Specification Review

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


1. REQUIREMENTS STUDY


3. TEST EXECUTION 

Code Review



Test execution and evaluation



Performance and simulation

4. TEST CLOSURE 

Test summary report



Project De-brief



Project Documentation

5. TEST PROCESS ANALYSIS 

Analysis done on the reports and improving the application‟s performance by implementing new technology and additional features.

SOFTWARE TESTING TECHNIQUES

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Software testing technique is useful process of executing program with the aim of finding bugs. Here we have classified the software testing into four categories. Let‟s see with the diagram:


CORRECTNESS TESTING Correctness is the minimum requirement of software, the essential purpose of testing. Correctness testing will need some type of oracle, to tell the right behaviour from the wrong one. The tester may or may not know the inside details of the software module under test, e.g. control flow, data flow, etc. Therefore, either a white-box point of view or black-box point of view can be taken in testing software. We must note that the black-box and white-box ideas are not limited in correctness testing only. 1) WHITE BOX TESTING •

Knowledge of the internal program design and code required.

•

Tests are based on coverage of code statements, branches, paths, conditions.

•

Some synonyms of white box testing are : Clear Box Testing, Glass Box Testing, Transparent Box Testing, Open Box Testing

•

WHITE BOX - TESTING TECHNIQUE  All independent paths within a module have been exercised at least once  Exercise all logical decisions on their true and false sides

•

WHITE BOX TESTING / STRUCTURAL TESTING  Based on knowledge of internal logic of an application's code  Based on coverage of code statements, branches, paths, conditions  Tests are logic driven

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 Exercise internal data structures to ensure their validity


 Execute all loops at their boundaries and within their operational bounds


2) BLACK BOX TESTING •

No knowledge of internal design or code required.

•

Tests are based on requirements and functionality

•

BLACK BOX - TESTING TECHNIQUE  Incorrect or missing functions  Interface errors  Errors in data structures or external database access  Performance errors  Initialization and termination errors

•

BLACK BOX / FUNCTIONAL TESTING  Based on requirements and functionality  Not based on any knowledge of internal design or code  Covers all combined parts of a system

Performance Testing Determines… •

Speed

•

Scalability

•

Stability

•

Confidence

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PERFORMANCE TESTING


 Tests are data driven


While focusing on… •

User Expectations

•

System Constraints

•

Costs

What is Performance Testing? If you know what the performance is… • You can assess risk. •

You can make informed decisions.

•

You can plan for the future.

• You can sleep the night before go-live day. Not all software systems have specifications on performance explicitly. But every system will have implicit performance requirements. The software should not take infinite time or infinite resource to execute. "Performance bugs" sometimes are used to refer to those design problems in software that cause the system performance to degrade. Performance has always been a great concern and a driving force of computer evolution. Performance evaluation of a software system usually includes: resource usage, throughput, and stimulus-response time and queue lengths detailing the average or maximum number of tasks waiting to be serviced by selected resources. Typical resources that need to be considered include network bandwidth requirements, CPU cycles, disk space, disk access operations, and memory usage. The goal of performance testing can be performance bottleneck identification, performance comparison and evaluation, etc. The typical method of doing performance testing is using a benchmark -- a program, workload or trace designed to be representative of the typical system usage.

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Software reliability refers to the probability of failure-free operation of a system. It is related to many aspects of software, including the testing process. „Reliability Testing‟ is very important, as it discover all the failures of a system and removes them before the system is deployed. Reliability testing is related to many aspects of software in which testing process is included; this testing process is an effective sampling method to measure software reliability. Estimation model is prepared in reliability testing which is used to analyze the data to estimate the present and predict future reliability of software.


RELIABILITY TESTING


Depending on that estimation, the developers can decide whether to release the software or not and the end user will decide whether to adopt that software or not. Robustness testing differs with correctness testing in the sense that the functional correctness of the software is not of concern. It only watches for robustness problems such as machine crashes, process hangs or abnormal termination. The oracle is relatively simple; therefore robustness testing can be made more portable and scalable than correctness testing. SECURITY TESTING Security Testing tests the ability of the system/software to prevent unauthorized access to the resources and data. Security Testing needs to cover the six basic security concepts: confidentiality, integrity, authentication, authorization, availability and non-repudiation. 1) CONFIDENTIALITY •

A security measure which protects against the disclosure of information to parties other than the intended recipient that is by no means the only way of ensuring the security.

2) INTEGRITY •

A measure intended to allow the receiver to determine that the information which it is providing is correct.

•

Integrity schemes often use some of the same underlying technologies as confidentiality schemes, but they usually involve adding additional information to a communication to form the basis of an algorithmic check rather than the encoding all of the communication.

The process of establishing the identity of the user.

•

Authentication can take many forms including but not limited to: passwords, biometrics, radio frequency identification, etc.

4) AUTHORIZATION •

The process of determining that a requester is allowed to receive a service or perform an operation. Access control is an example of authorization.

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•


3) AUTHENTICATION


5) AVAILABILITY •

Assuring information and communications services will be ready for use when expected.

•

Information must be kept available to authorized persons when they need it.

6) NON-REPUDIATION •

A measure intended to prevent the later denial that an action happened, or a communication that took place etc.

•

In communication terms this often involves the interchange of authentication information combined with some form of provable time stamp.

CONCLUSION This paper on Software testing describes in detail about software testing, need of software testing, Software testing goals and lifecycle. We further explains different Software testing techniques such as Correctness testing, Performance testing, Reliability testing, Security testing. Further we have discussed the basic principles of black box testing, white box testing Software testing is an important technique for the development and capacity of a software system quality. But it is really not possible to find out all the errors in the program. So, the basic question arises, which strategy we would adopt to test. Complete testing is infeasible. Complexity is the root of the problem. At some point, software testing has to be stopped and product has to be shipped. The stopping time can be decided by the trade-off of time and budget. Or if the reliability estimate of the software product meets requirement.

[1]. Analysis & Design of Information Systems [2nd Edition] – James A. Senn. [2].Software Engineering -pankaj jalote [3]. Software Engineering and its Model – K. Prasada Rao [4]. Software Design and testing – M. Balakrishnan [5]. http://www.softwaretestinghelp.com/

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REFERENCES


Testing is more than just debugging .Testing is not only used to locate defects and correct them it is also used in validation, verification process and measurement.


[6]. http://www.ece.cmu.edu/~koopman/des_s99/sw_testing [7]. http://www.cigital.com/papers/download/bsi4-testing.pdf [8]. Security testing-Wikipedia the free encyclopedia available at http://en.wikipedia.org/wiki/Security_testing [9]. http://www.chaseplace.com/UWClass-2/files/SWEbok/SWEBOK-Test.pdf [10].Black – Box testing -Wikipedia the free encyclopedia available at

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http:/en.wikipedia.org/wiki/Black-box_testing


A STUDY ON ASSESSING THE PERFORMANCE OF MICRO, SMALL AND MEDIUM ENTERPRISE OF CANARA BANK MR. SURESH A.S*; MS. JYOTSNA SREENATH** *Assistant Professor, MBA Department, PES Institute of Technology, Bangalore South Campus, Bangalore. **Student, MBA Department, PES Institute of Technology, Bangalore South Campus, Bangalore.

ABSTRACT In a developing country like India, Small and Medium Enterprises (SME) assumes an important status. They play a vital role in the economic development, more so in a developing economy like India. The promotion and growth of SME sector has been a cardinal feature of the industrial Policy over the years. Its employment potential is huge. Its importance as a foreign exchange earner through exports is quite significant. It is established that SME sector contributes a substantial share to India’s total exports. Micro, Small and Medium Enterprises (MSME) sector is the future of India. The SMEs are facing problems in obtaining finance for marketing, technology, research and development, infrastructure etc, because they cannot afford high investments. To reduce these problems of SMEs the banks provide various schemes and new products for MSME. The Bank provides various facilities for both manufacturing and service sector. KEYWORDS: foreign exchange, Industrial policy, MSME, SME. _____________________________________________________________________________

a) They can be set up with lower to fairly medium investments. b) Growth of SMEs can be evenly spread throughout the country giving a boost to industrialization of the regions.

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Small and Medium Enterprises contributes to the growth of Indian economy by 45% of industrial output, 40% of exports, 42 million employments, create one million jobs every year and produce more than 8000 quality products for the Indian and international markets. As a result, MSMEs are today exposed to greater opportunities for expansion and diversification across the sectors. SMEs are best suited to Indian conditions for the following reasons:


INTRODUCTION


c) The SMEs can act as a supplement to the agriculture activity as many industrial activities under SME are agro-based and agro-related. d) Labour intensity in this sector provides an employment opportunity which is one of the foremost in the National Agenda. The employment opportunity in this sector is next only to agriculture. As SME is a tiny industry, various banks and financial institution are eager to finance small and medium enterprise. SMEs face greater growth obstacles than that of large firms and limited access to finance is one of the major obstacles. Hence this study highlights on assessing the performance of micro, small & medium enterprise by Canara Bank to overcome the obstacle in financing MSME and also helps in providing suggestions to the Bank for betterment of the financing MSME sector. Worldwide, the micro small and medium enterprises (MSMEs) have been accepted as the engine of economic growth and for promoting equitable development. The major advantage of the sector is its employment potential at low capital cost. The labour intensity of the MSME sector is much higher than that of the large enterprises. The MSMEs constitute over 90% of total enterprises in most of the economies and are credited with generating the highest rates of employment growth and account for a major share of industrial production and exports. In India too, the MSMEs play a pivotal role in the overall industrial economy of the country. In recent years the MSME sector has consistently registered higher growth rate compared to the overall industrial sector. With its agility and dynamism, the sector has shown admirable innovativeness and adaptability to survive the recent economic downturn and recession.

(B) SERVICE ENTERPRISES: The enterprises engaged in providing or rendering of services and are defined in terms of investment in equipment. The limit for investment in plant and machinery / equipment for manufacturing / service enterprises, are as under:

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(A) MANUFACTURING ENTERPRISES- The enterprises engaged in the manufacture or production of goods pertaining to any industry specified in the first schedule to the industries (Development and regulation Act, 1951). The Manufacturing Enterprise is defined in terms of investment in Plant & Machinery.


MSME-Development Institute, Bangalore is a field office under MSMEDO-Micro, Small & Medium Enterprises Development Organization, the Ministry of Micro, Small & Medium Enterprises, and Govt. of India. MSMEDO is an apex body and a nodal agency for formulating, coordinating and monitoring the policies and development of small-scale industries in the country. In accordance with the provision of Micro, Small & Medium Enterprises Development (MSMED) Act, 2006 the MSME are classified in two classes:


Manufacturing Sector Enterprises

Investment in plant & machinery

Micro Enterprises

Does not exceed 25 lakh rupees

Small Enterprises Medium Enterprises

More than 25 lakh rupees but does not exceed 5 crore rupees More than 5crore rupees but does not exceed 10 crore rupees Service Sector

Enterprises

Investment in equipments

Micro Enterprises

Does not exceed 10 lakh rupees:

Small Enterprises

More than 10 lakh rupees but does not exceed 2 crore rupees

Medium Enterprises

More than 2 crore rupees but does not exceed 5 core rupees

ASSESSING THE PERFORMANCE OF MICRO, SMALL & MEDIUM ENTERPRISE OF CANARA BANK With the economy gaining traction, the banking system in India is widely expected to play a major role in the broad-based inclusive growth process of the Indian economy. Bank credit covers about 55% of GDP. Extensive support by banks to micro, small and medium enterprises (MSMEs), agriculture and other productive segments and the thrust on financial inclusion as an integral element of the broader inclusive growth strategy makes banks an important enabler in facilitating India's economic growth and development. With Micro, Small and Medium Enterprises (MSME) emerging as the potential growth drivers of the Indian economy, Canara Bank's MSME portfolio recorded a healthy growth of over 30% to reach Rs.31074 crore.

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FIGURE 1: COMPOSITION OF CREDIT SEGMENTS (%): AS OF MARCH 2011


TABLE 1: THE NUMBER OF ACCOUNTS AND TOTAL AMOUNT SANCTIONED FOR MSME SECTOR FROM CANARA BANK

Year

Total amount sanctioned No. Of Accounts (in Crore)

2005-06

11,619

84,280

2006-07

14,245

120,715

2007-08

18,600

327,197

2008-09

23,823

312,543

2009-10

31,074

513,562

2010-11

37,684

665,871

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FIGURE 2: TOTAL AMOUNT SANCTIONED FOR EACH YEAR


FIGURE 3: NUMBER OF ACCOUNTS

INTERPRETATION  It is evident that post recession, there has been a decrease in the number of accounts registered.  With the decrease in the number of accounts, the amount has decreased in the year 2009. This could be due to the various stimulus packages granted by the government to overcome recession.  In 2008, there was a drastic increase in the number of accounts but the increase in the amount was not up to the expected extent. This might be due to the small new accounts which do not involve huge amounts.

Total amount sanctioned (in Crore)

Percentage Change (%)

2005-06

11,619

-

2006-07

14,245

22.60

2007-08

18,600

30.57

2008-09

23,823

28.08

2009-10

31,074

30.44

2010-11

37,684

21.27

403

Year


TABLE 2: PERCENTAGE CHANGE FOR THE TOTAL AMOUNT SANCTIONED FOR MSME SECTOR FROM CANARA BANK


FIGURE 4: PERCENTAGE CHANGE FOR THE TOTAL AMOUNT SANCTIONED FOR EACH YEAR

TABLE 4: PERCENTAGE CHANGE FOR THE ACCOUNTS OPENED FOR MSME SECTOR FROM CANARA BANK Percentage Change (%)

2005-06

84,280

2006-07

120,715

43.23%

2007-08

327,197

171.05%

2008-09

312,543

-4.48%

2009-10

513,562

64.32%

2010-11

665,871

29.66%


NO OF ACCOUNTS

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Year


FIGURE 5: PERCENTAGE CHANGE FOR ACCOUNT OPENED FOR EACH YEAR

2011(Cr)

2010(Cr)

% GROWTH

Bank Of India

29567

25441

16.22%

Punjab National Bank

35034

27499

27.4%

Bank Of Baroda

21111

14662

43.98%

Union Bank

22685

16149

40.47%

Central Bank Of India

9784

8287

18.06%

Indian bank

8193

6394

28.14%

INTERPRETATION From the above Figures, amount sanctioned in 2006-2007 has increased by 22.60% and in the year 2007- 2008 has shows an increase of 30.57%. However, there has been slight fall in the year 2008-2009 in percentage which is 28.08%. This is due to recession and uncertain market conditions and bank has not sanctioned sufficient funds when compared to the year 2007-2008.

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BANK


TABLE 5: PEER BANKS PERFORMANCE


Due to recession affecting the market, many borrowers were not in a position to borrow loan from the banks. In the year 2009-2010 the market performance had increased and there was improvement in the sanction of the bank and the percentage change was 30.44%. However in the year 2010-2011 there has been a drastic drop in the percentage from 30.44% to 21.27% in sanctioning of the funds for the MSMEs from Canara Bank. The Bank received an amount of Rs.16.9 crore from the Ministry of Micro, Small and Medium Enterprises, Government of India, during the year as a Nodal Agency for Technology Up gradation of SSI units under Credit Linked Capital Subsidy Scheme (CLCSS) and amount utilized during the years to come, Rs.13.3 crore. The Bank has covered 49,260 accounts with an exposure of Rs.1471 crore as at March 2011 under the Credit Guarantee Scheme of Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE). With the decrease in the number of accounts, the amount has decreased in the year 2009. This could be due to the various stimulus packages granted by the government to overcome recession. In 2008, there was a drastic increase in the number of accounts but the increase in the amount was not up to the expected extent. There has been increase in the number of accounts and the amount sanctioned when compared to the peer competitor banks for the year 2009-2010 and 2010-2011. Hence the performance of the bank has been good for providing finance for Micro small and medium enterprise sector when compared to other peer banks.

Small industry should be allowed to come up only in designated industrial areas for better monitoring and periodic surveys. A technologically vibrant, internationally competitive small and medium industry should be encouraged to emerge, to make a sustainable contribution to national income, employment and exports. It is essential to take care of the sector to enable it to take care of the Indian economy.

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The small scale industries play a vital role in the growth of the country. It contributes almost 40% of the gross industrial value added in the Indian economy. Small industry in India has found itself in an intensely competitive environment since 1991, thanks to globalization, domestic economic liberalization and dilution of sector-specific protective measures. The international and national policy changes have thrown open new opportunities and markets for the Indian small industry. Concerted effort is needed from the government and small industry to imbibe technological dynamism. Technological up gradation and in-house technological innovations and promotion of inter-firm linkages need to be encouraged consciously and consistently. Financial infrastructure needs to be broadened and adequate inflow of credit to the sector be ensured taking into consideration the growing investment demand, including the requirements of technological transformation.


CONCLUSION


Technology Resource Centre’s (TRC) provides latest and right technology for attaining global reach by SSI units. SSIs which account for about 45 percent of the manufacturing output and form the backbone of industrial development in India now are not export competitive and contribute only about 34.08 per cent of exports as on 2007-08. Boosting the contribution of SSIs in total exports of India is vital to India’s future economic growth, which can be promoted in the following manner. Policy intervention for SSIs could be particularly export-effective when it is based on the Triple C (Customer oriented, Collective and Cumulative) However, it is also essential to create and sustain a business environment that reinforces the international competitiveness of the export sector as a whole. This can be achieved by active collaboration between governments, the private sector and international agencies with a view to reaping the significant potential benefits of exports through SSIs. The Banks are looking at the SME sector as a commercially viable sector. RBI's initiative to further smoothen the flow of credit to SSIs, which primarily depend on finance from banks and other financial institutions. Under the proposed scheme, banks will be encouraged to establish mechanisms for better coordination between their branches and those of SIDBI that are located in the 50 clusters identified by the Ministry of Small Scale Industries. The Report also depicts the performance of Micro, small and medium enterprises of Canara Bank. It shows the trend that is increasing percentage and decreasing percentage in the performance of MSME schemes of Canara Bank. The bank always catered to small enterprises and when the small enterprises turned into medium enterprises, the bank’s role seemed to vanish. This has made it tough to target the same companies again as the scope of Canara Bank is limited to small enterprises. In nutshell, it can be concluded that Bank’s motto towards MSME is “Catch them young and Watch them grow”. REFERENCES 1. Canara-Bank-Annual-Report-2010-11 2. “Entrepreneurship and Small Business Management” Kitab Mahal publication Edition 2006.

4. Lending to SME sector - Reserve Bank of India 5. Progress at a glance -2009-10 6. SPHC Knowledge Team, Mr. Saurabh Shrivastava, Chairman, Indian Venture Capital Association “Raising Finance - Handbook for SMEs” 7. Vasant Desai; Small scale Industries & entrepreneurship, first edition, Himalaya publishing House Ltd., New Dehli, Oct, 1994 p.94,95,179-181.


3. John Argenti: Symptoms of sickness, Accountancy.

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8. W.Malenbaum, Prospects of India Development, The free Press, Glancoe, Illinois, 1962.


OVERCOMING THE CHALLENGES OF MANAGING SUSTENANCE AND GROWTH IN THE ERA OF ECONOMIC DOWNTURNS WITH THE HELP OF YOUTH MARKETING STRATEGIES IN INDIA HINA SHARMA* *Assistant Professor, GLA University, Mathura, India.

ABSTRACT Youth Marketing is a term used in the marketing and advertising industry to describe activities to communicate with young people, typically in the age range of 12 to 34. Youth marketing strategies commonly include television advertising, magazine advertising and online marketing. Other common youth marketing tactics include entertainment marketing, music marketing, sports marketing, event marketing, viral marketing, school and college programs, product sampling and influencer marketing. Youth have always been a prime target for marketers. More so in India now, as two-thirds of the population is below 35 years of age.65%, or over 700 million Indians, are younger than 35 years. Another critical factor is the increasing buying power of this segment. A distinctive feature of Indian youth is that they are extremely tech savvy. Even when marketers manage to reach this critical consumer segment, retaining their interest remains a challenge. ―The main question on the mind of marketers targeting 18-35-year-olds is, ‗how do I reach out to this group‘ and, more importantly, ‗how do I keep them engaged with my product‘. The challenge for marketers is to convert today‘s youth into tomorrow‘s preferred customer. Successful marketing to youth should entertain and empower, be very responsive to their queries and needs, give them free reign in designing Web content, and engage them in quick-win SMS-based competitions. Marketing campaigns should have functional, educational and emotional components built in to successfully target youth.

THE GLOBAL ECONOMIC CRISIS OF INDIA The financial crisis experienced by the international system today will have serious geopolitical implications. India and China has come up as the new players. The geopolitical impact is still unfolding which is likely to be the most significant for India. To encourage the trend towards a more diffuse and diversified international order is in India‘s interest. India‘s efforts should thus concentrate on building coalitions with other powers who share the same objectives. Which means there should be more energetic pursuit of relations with countries like Russia, Brazil,

408

INTRODUCTION


KEYWORDS: challenge, feature, strategies, Youth Marketing. ______________________________________________________________________________


South Africa and Mexico. The EU and some of its individual members, like France, could be useful political and economic partners for India. Chinese and Indian positions on multilateral trade, climate change and several other global issues are similar. However, there are competitive aspects between the two countries as well, which have to be managed with prudence and firmness. Thereby, India is required to go beyond the defensive and survival-first strategies. Given the global financial crisis, India faces both opportunities and challenges. For instance, it could exploit the opportunity created by the crisis to consolidate its economic interaction with its neighbours. Without a politically stable and economically prosperous neighbourhood, India will find it difficult to foster its regional and global interests. It could push for a South-Asian Economic Recovery Initiative, which could lead to a higher degree of economic integration and cooperation in the region as the economic crisis hits India‘s more fragile neighbours –such as Bangladesh, Pakistan, Sri Lanka and Nepal–India is the most successful example of a democracy in South Asia and is an Asian giant in its own right. Thus, what it now requires, at a time when power shifts are likely, is to employ its strengths in making the most of the crisis to be able to not just emerge from it unharmed, but also to acquire a geopolitical standing which will enhance its world position in the near future. YOUTH MARKETING STRATEGIES IN INDIA Youth Marketing is a term used in the marketing and advertising industry to describe activities to communicate with young people, typically in the age range of 12 to 34. More specifically, there is the Tween Marketing, targeting people in the 8 to 12 year-old range, Teen Marketing, targeting people age 13 to 19, College Marketing, targeting college-age consumers, typically ages 18 to 23, Young Adult Marketing, targeting young professionals, typically ages 22 and above.

Examples of brands embraced by youth and used as examples in marketing cases are: Vans Footwear, it used youth marketing tactics to grow from a niche sneaker brand to a successful international business and Mountain Dew, a well known soft drink brand that expanded market share through youth marketing tactics. Corporations capitalize on the age-old insecurities and self-doubts of teens by making them believe that to be truly cool, you need their product. Fashion marketers such as Calvin Klein, Abercrombie & Fitch and Guess use provocative marketing campaigns featuring young models. These ads are selling more than clothing to teens—they're also selling adult sexuality. Other strategies may include: running ads during TV shows with a high number of young views

409




The youth market is viewed as a difficult group to connect with and sell to, based on the fragmented media landscape and young people's keen ability to identify and reject marketing messages that lack credibility. Youth marketing strategies commonly include television advertising, magazine advertising and online marketing. Other common youth marketing tactics include entertainment marketing, music marketing, sports marketing, event marketing, viral marketing, school and college programs, product sampling and influencer marketing.




placing ads in magazines with high adolescent readerships



sponsoring rock concerts and sporting events

―It is the unending search for differential advantage which keeps competition dynamic‖ with these words Wroe Alderson, one of the pioneers of modern marketing theory begins his discussion of the essential nature of the competitive process. Firms are continually seeking to create and deliver advantage or value to customers that are better than alternatives. They attempt to do this in many ways; in terms of market segments and in terms of the means of meeting these targeted needs and problems they offer prospective customers. It is a continuing struggle because customers' needs are continually changing, and the means of meeting customer‘s needs are also changing as a result of technological change and entrepreneurial action that recognizes and exploits new opportunities as they arise. As Alderson describes it, there is a continuing proliferation of opportunities as the satisfying of existing needs begets new needs and opportunities and the development of new technologies and means of satisfaction begets new problems, needs and opportunities. Survival depends on the timing of innovation, imitation and process improvement and the speed of diffusion and level of penetration of products. Online user reviews have become an important source of information to consumers, substituting and complementing other forms of word of mouth communication about the quality of various products. Consequently, many managers believe that a Web site needs to provide community content in order to build brand loyalty. Customer word-of-mouth has a causal impact on consumer purchasing behavior. THE 7 Ps OF YOUTH MARKETING PROVOCATION Youth today expect brands to have a strong provocative point of view on culture. The old adage of ‗stand for nothing, fall for everything‘ is definitely relevant. Brands like Axe, Burger King, the new Levi‘s campaign, Diesel are all brands which have a strong cultural position. You‘re either with them or against them and that‘s why the create heat and energy.

PLAY I believe the broader construct of ‗play‘ is already heavily influencing brand behavior. Brands need to think of the interactions they have with youth in terms of a GAME. They need to

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Every youth marketer needs to think about how they design social experiences which involve youth, treating them as partners in production, rather than a destination point for messages. Whether it‘s a ‗Digital Fling‘ (a quick fleeting experience or an entertaining content) with the Passive Massive or deeper engagement with Ambassadors, you need to work out how you can involve youth in the brand narrative and add value to their interaction. Designing ideas for participation is all about tapping into the power of social connection.


PARTICIPATION


encourage and create game play at all levels. It‘s far more about your brands game, than your brands story. Nike Grid is a great example of this play fuelling discovery. PORTABILITY The mobile and tablet are the focus screens for youth. If mobile marketing isn‘t part of your communication strategy, you‘re missing the beat. Every communication experience you create has to be portable. PURPOSE Your brands purpose is far more important than your positioning. Youth swarm towards brands or products that help them connect with each other as well as help give their lifestyles greater purpose. Think about your brands fight or crusade, not just how it‘s different functionally. PROPAGATION If it‘s not worth sharing, it‘s not worth doing. Brands have to develop propagation strategies and think about designing ideas which have inherent social interfaces. Remember young people‘s social status is defined by what and how often they ‗share‘. MEDIA POSITIVE Youth brands have to be media positive, not media neutral. Instead of thinking about filling media channels, think about how you can create media yourself, turning products themselves into the marketing. Apple is the king of doing this. PERSONAL It sounds obvious, but being personal and intimate within the social context is critical. Brands that help you better tell your own brand story win. The Intel ‗Museum of Me‘ exhibition is a perfect example of a Face book engagement idea which taps into people‘s need to see their personal story brought to life in pictures, and then share that with the world.

REFERRENCES 1. http://en.wikipedia.org/wiki/Youth_marketing 2. http://articles.economictimes.indiatimes.com/2009-06-03/news/27639625_1_youth-cultbrands-age-band

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Given the global financial crisis, India is required to go beyond the defensive and survival-first strategies. Success for India lies in youth marketing. Selecting a strategy or a combination of strategies discussed above suitable for the particular marketer is going to be the key for India to emerge as a winner from the global crisis.


CONCLUSION


3. http://www.livemint.com/2008/02/03235846/Youth-Marketing----Target-Ge.html 4. http://danpankraz.wordpress.com/2011/06/02/the-7ps-of-youth-marketing/ 5. http://cpim.org/15ls/Global%20Crisis%20and%20India.pdf

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6. ―The Global Economic Crisis and India: An Analysis (ARI)‖, Pankaj Vashisht and Sriparna Pathak, ARI 129/2009 - 10/9/2009


INFORMATION COMMUNICATION TECHNOLOGY – ROLE, USAGE, AWARENESS BY THE DISTANCE LEARNER MEHAL PANDYA* *Deputy Director, Knowledge Management Research Organization (KMRO), Dr. BAOU.

ABSTRACT This research paper is based on the different role of ICT in providing education to the distance learner and different types of ICTs being used in ODL and their specific applications to the various facets of the mode of delivery .Researcher is interested to find out the level of awareness of ICTs and it is utilization by the distance learner of the Ahmadabad region. Researcher also identify whether quality of education is ensured in a technology-driven system of teaching and learning. Based on the data collected through secondary sources and a primary survey, the researcher in this paper makes an assessment of the extent of usage, awareness, quality of education prevalent, among distance learner of Ahmadabad region. KEYWORDS: Information Communication Technology (ICT), Open Distance Learning (ODL), role, utilization, awareness and quality of education through ICT. ____________________________________________________________________________ INTRODUCTION Information Communication Technology in education means implementing of ICT equipment and tools in teaching and learning process as a media and methodology. The purpose of ICT in education is generally to familiarize students with the use and workings of computers, and related social and ethical issues.ICT has also enabled learning through multiple intelligence as ICT has introduced learning through simulation games; this enables active learning through all senses.

ICT as a subject (i.e., computer studies)



ICT as a tool to support traditional subjects (i.e., computer-based learning, presentation, research)



ICT as an administrative tool (i.e., education management information systems/EMIS)



ICT as a medium of knowledge exchange

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


ICT in education can be broadly categorized in the following ways as


The Open Distance Learning system responded positively and quickly to the revolution in ICT. It is because of three reasons – the need to reduce the cost of imparting education, to introduce need based educational programmes to a large number of people and to reduce time required for sanctioning new programmes by adopting new flexible nature of administration. ROLE OF THE ICT IN OPEN DISTANCE LEARNING Information and communication technology plays a large role in changing the field of education. With laptops, PDAs and even smart phones finding their way into daily lessons, these devices are changing the way teachers and students share information and the way schools communicate both within their own organization and to the community. Mobile devices like smart phones and tablet computers make learning and teaching more accessible for everyone involved. The Internet is a wealth of information that anyone, no matter the location, can use to develop lesson plans, conduct research or share with others. An educational institution with the proper devices and online access can provide staff and students with a collaborative environment in which communication is easier both in and out of the classroom. ICT HELPS TO 

To increase variety of educational services & medium



To promote equal opportunities to obtain education & information.



To develop a system of collecting & disseminating educational information.



To promote technology literacy.

TYPE OF ICT USED IN OPEN DISTANCE LEARNING IN INDIA 1. Mobile Device

4. Audi/Video programme tapes, 5. tele-conferencing, 6. FM Radio (Gyan Vani), 7. Educational TV Channels (Gyan Darshan), 8. Video-Conferencing,

414

3. Tablet Computer


2. Smart Phones


9. computer networks for imparting instructions,etc. SPECIFIC USE OF ICT IN OPEN DISTANCE LEARNING DOCUMENT TRACKING SYSTEM (DTS) FOR APPLICATION FOR ADMISSION Through this DTS system, students can submit their applications online, receive acknowledgement of receipt, track the progress of their application, and receive results of their evaluation online. Moreover, because much of these administrative processes are now fully automated, students have access to more efficient, cost-effective services. ONLINE REGISTRATION SYSTEM The online registration system allows the student to enroll in courses at their own convenience, typically during the prescribed registration period. ONLINE SUBMISSION OF GRADES The online grades submission system enables instructors to submit students‘ grades online. This system is especially useful for adjunct faculty members who work external from the institution/University. Online access to official student enrolment lists is also available, where instructors can post students‘ interim and final grades for immediate release to students. DIGITIZATION OF STUDENT RECORDS Many universities are now using digital student records. Indeed, a typical student accumulates a variety of records over his or her academic lifetime. Clearly, the storage of physical records not only takes up a lot of space, it can take a lot of time and effort, not to mention lead to nightmares as one seeks to retrieving archived student files.

415

In a Open Distance Learning system, especially in the India wherein many learners consider themselves to be semi-literate and have not been formally exposed to the Open Distance Learning culture of ‗independent learning,‘ student orientation sessions have become imperative for student induction into Open Distance learning and its process. For instance, orientation activities are required to inform students about course prerequisites, course outlines, procedures for adding and withdrawing from classes, grading criteria, tips on where to access study materials, and so forth. The fact that many students live far away from main and satellite campuses, however, makes it very impractical – if not impossible – to gather them physically all in one location for orientation. The creative use of low-cost, readily available technologies like Yahoo Messenger for instance, has helped Open Distance Learning providers overcome obstacles of time and space and levels of synchronous communication and interaction necessary to conduct viable orientation sessions.


ORIENTATION OF NEW/ INCOMING STUDENTS


EXTEND THE CULTURE OF DISCUSSION AND DEBATE TO ENHANCE CRITICAL AND HIGHER ORDER THINKING Discussions and debates are central in the development of critical- and higher-order thinking skills, especially among graduate students. To support debate and discussion among its Open Distance Learner and traditional students, physical classrooms can be linked to its DE students using low-cost, widely available technologies such as Skype, Yahoo Messenger, and so forth. These same technologies can also be used for ‗enrichment activities,‘ such as chat and discussion sessions with subject matter experts. ENSURING QUALITY EDUCATION IN A TECHNOLOGY-DRIVEN MODE OF LEARNING Quality of Open Distance learning has always been contentious. Detractors of distance education, somehow equate quality of Open Distance learning with that of physical face-to-face traditional education in the classrooms. It is necessary to employ the ‗quality circle‘ approach in developing Open Distance Learning courses and learning materials. The ‗quality circle‘ consists of the course writer (who is a subject matter expert), a subject matter specialist (another subject matter expert who peer reviews the soundness of the course and its contents), an instructional designer (who ensures the ‗chunking of lessons‘ is appropriate and that the program/ course goals, contents, and assessments mesh logically with one another), a media specialist (who recommends appropriate delivery mediums), a language editor (who performs copy and substantive editing). In sum, whatever the technology used to deliver instructional content, the ‗quality circle approach‘ to course development should be standard practice.

ODL institutions must strive to maintain very high quality standards (i.e., maintaining entrance standards, grading standards, course/program completion standards, and conferment of recognized degrees, etc.). RESEARCH METHODOLOGY : Exploratory Research

Data Collection Sources Primary Data

: Structured Questionnaire

416

Research Design


Educational providers must strive to use quality and reliable ICT hardware (connections should be available, 24/7) and software (i.e., the LMS). Just as important, these systems must be supported by highly skilled individuals, armed with the knowledge and skills they need to ensure hard and software runs smoothly. To accomplish the human aspect of ICT, institutions must offer training to various user groups (i.e., students, teachers, administrators, etc.). Offering such training helps to ensure the efficient and effective use of ICT for all stages of the teaching and learning process, from accessing online classrooms, to course registration, to managing digital library materials, to manipulating databases to get the information one needs to do their work or complete an assignment . . . and so forth.


Secondary Data

: Internet

Research Approach

: Personal Interview

Sample Population

: Distance Learner

Sample Unit

: Ahmedabad City

Sampling Technique

: Non-Probability Convenience Sampling

Sample Size

: 30

Analytical Method

: Graphical Method is used for Data Analysis

DATA ANALYSIS 1. GENDER 

Male:-18



Female: -12

Gender

12 18 Male

417


Female


Interpretation: 18 of those surveyed were male and rest i.e. 12 were female 2. AGE 

15-20



20-25



25-30



30 above

Age 4

0

10 15-20 20-25 25-30 16

30 above

ADDRESS 

Rural: 5



Urban : 25

418

3.


Interpretation : The Age of Population varies i.e. 10 element belong to 15 to 20 age group,16 belong to 20-25 age group and 4 belong to 25-30 age group.


Location 0

0 5 Rural Urban

25

Interpretation: 25 elements are located in urban region and 5 elements are located in the rural region. OCCUPATION Student : 28



Professional:1



Govt.employed : 0



Self Employed : 1

Occupation 101 Student Professional Govt.Empl. Self.empl. 28




419

4.


Interpretation: From the above chart, 28 are the Students, one is Professional and one is self employed. .

5. MONTHLY INCOME 

Less than 10000: 0



10000 to 20000: 0



20000 to 30000 : 1



30000 to 40000: 1



More than 40000: 0



None : 28

Monthly Income 1

1 0 Less than 10000

28

10000 to 20000 20000 to 30000

6. OWN COMPUTER 

Yes : 28



No : 2

420

Interpretation:-Above chart represent that, 28 elements does not earn as they are the students.


30000 to 40000


Own Computer 30 25 20

15 Own Computer 10 5 28

2

YES

NO

0

Interpretation: - From the total population 28 elements own computer and 2 doesn‘t own computer. 7. OWN INTERNET CONNECTION 

YES: 7



NO: 23

23 Internet

7 YES

NO

Interpretation:-The above graph represent that seven element from the sample own the internet and 23 doesn‘t own the internet.

421

25 20 15 10 5 0


Internet


8. DO YOU KNOW THE ABBREVIATION OF ICT? 

Know : 24



Don‘t know :6

ICT 25 20

15 10

24 ICT

5 6

0 Know

Don’t Know

Interpretation:- 24 element from the Population are aware of the abbreviation of ICT . 9. DO YOU AWARE THAT EDUCATION IS PROVIDED VIA EDUCATIONAL CHANNEL ON T.V.? 

Aware : 24



Not Aware : 6

Aware

Education provided via T.V

24

0

10

20

30

422

6

Not Aware


Education provided via T.V


Interpretation: - The above graphical representation states that 24 of them are aware that education is provided via educational channel through T.V 10. WHICH EDUCATION CANNEL YOU ARE AWARE OF? 

Gyan Darshan 15



DD Girnar

15



Topper

0



Other

0

Educational Channel 16 14 12 10 8 Educational Channel

6 4 2

15

15

0

0

Gyan Darshan

DD.Girnar

Topper

other

0

Interpretation: - 50% are aware Gyan Darshan and 50% are aware of DD.Ginar rather other educational channels.

than



YES : 10



NO : 5



DEPENDS : 15

423

_______ ______ _______


11. DO YOU MAKE USE OF EDUCATION CHANNEL FOR YOUR STUDIES? ( TICK BELOW APPROPRIATE SYMBOL)


Use Education Channel

10

YES

15

NO DEPENDS 5

Interpretation:-10 elements make use of educational channels for their studies. 12. IF YES, HOW MANY HOURS DO YOU MAKE USE OF THIS CHANNEL FOR STUDYING? 

1-2 hours :-17



3-4 hours :-10



4-8hours :-3



8 above : 0

Hours

17

10

3

0

1 to 2

3 to 4

4 to 8

8 above

424

18 16 14 12 10 8 6 4 2 0


Hours


Interpretation:-The above chart represent that 1 to 2 hours is spare to study via educational channel by 17 element. 13. FROM THE BELOW MENTION ICT DEVICE, WHICH DEVICE YOU MAKE USE FOR YOUR STUDIES 

C.D



DVD :- 3



E-Resource :-2



Video-Conferencing :- 0



Tele-Conferencing :- 0



Other please specify :- 0

:- 25

USE ICT Device 30 25 20 15 USE ICT Device 10 25

3

2

0

0

0

CD

DVD

E-Resource

V.C

T.C

Other

Interpretation :- 25 of them make use of CD rather than other ICT device. 14. WHETHER YOUR INSTITUTE IS MAKING USE OF THE ICT DEVICE TO COUNSEL YOU FOR STUDIES? 

Yes :28



No : 2

If yes, specify the device used by your institute CD, DVD.

425

0


5


Institute use ICT Device 30

25 20 15 Institute use ICT Device 10 5

28

2

YES

NO

0

Interpretation:-28 elements say that ICT device is used by their institute to counsel them for studies. 15. ARE YOU COMFORTABLE TO STUDY FROM THE ICT DEVICE? 

Yes: 23



No : 7

Comfortable to use ICT 25 20

5 0

23

7

YES

NO

Interpretation:-From the above chart, 23 are comfortable to study from ICT device and 7 of them are not comfortable to study by ICT device.

426

Comfortable to use ICT

10


15


16. QUALITY OF THE STUDY IS MAINTAINED BY THE TECHNOLOGY DRIVEN SERVICE IN COMPARISON TO THE REGULAR MODE OF STUDY? 

Yes : 25



No :

5

Quality Maintained 30

25 20 15 Quality Maintained

10 5

25

5

Yes

No

0

Interpretation:- From the above chart, 25 elements feel that Quality of the study is maintained by the technology driven Service in comparison to the Regular mode of study 17. CAN YOU COMPROMISE ON QUALITY PROVIDED TO YOU THROUGH ICT DEVICE? 

Yes: 4



No : 26

IF

EDUCATION

IS

25 20 15 Compromise on quality

10 5

4

26

YES

NO

0

427

30


Compromise on quality


Interpretation: - 26 of them cannot compromise on quality if education is provided through ICT device. FINDINGS From the survey it was found that most of the respondents were aware about Information Communication Technology and they came to know about it as education is provided via T.V, E.Resource, Institute are making use of the ICT device to guide their students, Friend. Etc •

Most of them were students

•

Respondents own computer but very few respondents were having internet connectivity.

•

Depending upon the lecture and convenience of the respondents make use of the educational channel.

•

Very few respondents make use of other ICT Device like (Video Conferencing, Tele Conferencing etc.)

•

Institutes are also not using other ICT device to guide students like Skype etc.

•

Most of them do not compromise on the quality if the education is provided through ICT device

Institute should provide information of ICT to every distance learner.

•

Institute should motive students to make use of the ICT device.

•

Institute should make use of the ICT Device to Guide the students.

•

Promotion of the education channel should be done.

•

Arrangement of the experts lecture should be done on educational channel.

•

Through video-conferencing it can be reached through masses.

CONCLUSION ICTs are a potentially powerful tool for extending educational opportunities, both formal and non-formal, to previously underserved constituencies—scattered and rural populations, groups traditionally excluded from education due to cultural or social reasons such as ethnic minorities, girls and women, persons with disabilities, and the elderly, as well as all others who for reasons of cost or because of time constraints are unable to enroll on campus. Information Communication is still in its infancy and a lot of research is to be done on ICT to fully explore its

428

•


RECOMMENDATION


potential. Our project was very productive. This was a fantastic topic to research, and we have accomplished many things. WEB - LINKS 

http://digitallearning.in/articles/article



http://unesdoc.unesco.org/images/0012/001293/129395e.pdf



http://www.irrodl.org/index.php/irrodl/article/view/334/792



http://www.emeraldinsight.com/search.

ANNEXURE Questionnaire for ―ICT –Role, Usage, Awareness by the Distance Learner‖ Dear Students, This is a questionnaire intended to study ―Role, Usage, and Awareness of ICT by the distance learner‖ 1. Name ………………………………………………………………………………………….. . Email……………………………………………Mobile No…………………………... 2. Age 1. 15-20

3.

25-30

2. 20-25

4.

30 above

2. 1. Male 4.

Female

Address 2.

1. Rural


Gender

Urban

429

3.


5.

What is your occupation?

1. Student

3. Professional

2. Govt.employed

4. Self Employed

5. Other .

6 What is your monthly income? Less than 10000

4. 20000 to 30000

1. 2. 10000 to 20000

5. More than 40000

3. 30000 to 40000

6. None

7. Do you have your own computer? Yes

2.

No

1.

8. Do you have your own internet connection? Yes

2.

No

1.



Information Communication Technology _______



Internet Communication Technology

_______

2. Do you aware that education is provided via educational channel on T.V.? Yes [

]

No [

]

430

1. Do you know the Abbreviation of ICT?


AWARENESS


3. Which education cannel you are aware of? 

Gyan Darshan _____



DD Girnar

_____



Topper

_____



Any Other Please Specify _____________

USAGE 4. Do you make use of education channel for your studies? ( Tick below appropriate symbol)

_______ ______ _______ 5. If yes, how many hours do you make use of this channel for studying? 

1-2 hours _____

4-8hours______



3-4 hours _____

8 and above______

C.D

____



DVD

____



E-Resource _____



Video-Conferencing _____



Tele-Conferencing ______ 

Other please specify ____

7. Whether your institute is making use of the ICT device to counsel you for studies? Yes [

]

No [

]

If yes, specify the device used by your institute___________________________.

431




6. From the below mention ICT Device, which device you make use for your studies.


8. Are you comfortable to study from the ICT device? Yes [

]

No [

]

QUALITY 9. Do you feel that quality of the study is maintained by the technology driven Service in comparison to the Regular mode of study? Yes [

]

No [

]

10. Can you compromise on quality if education is provided to you through ICT device? No [

]


]

432

Yes [


MONITORING AND TRACING SYSTEM FOR SOLDIERS WITH RADIO FREQUENCY IDENTIFICATION TECHNOLOGY DR. PRAMOD BUBNA* *Faculty, Department of Management, Birla Institute of Technology, Ranchi, Jaipur.

INTRODUCTION

433

The word Naxal, Naxalite or Naksalvadi is a generic term used to refer to various militant Communist groups operating in different parts of India under different organizational envelopes. In the eastern states of the mainland India (Jharkhand, West Bengal and Orissa), they are usually known as, or refer to themselves as Maoists while in southern states like Andhra Pradesh they are known under other titles. They have been declared as a terrorist organization under the Unlawful Activities (Prevention) Act of India (1967). Leaders of the movement have been found to have hideout located in China. For the past 10 years, it has grown mostly from displaced tribal and natives who are fighting against exploitation from major Indian corporations and local corrupt officials. In 2006 India's intelligence agency, the Research and Analysis Wing estimated that 20,000 armed cadre Naxalites were operating in addition to 50,000 regular cadres and their growing influence prompted Indian Prime Minister to declare them to be the most serious internal threat to India's national security. In February 2009, the Indian Central government announced a new nationwide initiative, to be called the "Integrated Action Plan" (IAP) for broad,


Terrorism in India is primarily attributable to religious communities and Naxalite radical movements. The regions with long term terrorist activities today are Jammu and Kashmir, Mumbai, Central India (Naxalism) and the Seven Sister States (independence and autonomy movements). As of 2006, at least 232 of the country’s 608 districts were afflicted, at differing intensities, by various insurgent and terrorist movements. In August 2008, National Security Advisor of India has said that there are as many as 800 terrorist cells operating in the country. Terrorism is something, which all over the world is a major problem at the moment. Its effects are very much that it can detoriate a country's economy and can loss huge number of civilian and arms foresees...Terrorists were not born but they were made in the name of religion. None of the religion preaches terrorism nor ask the followers to take the lives of other people but it was preached by wrong leaders and innocent people fall as a prey and lose their lives and kill other people as well. Terrorism is in different forms in various countries. In Somalia, pirates where they hijack lot of ships every now and then and get a hefty ransom because of which UNO has asked the member countries to counter attack this by sending their respective force do it. India has been doing this for a long time wherein Indian Navy has done a great job having prevented lot of ships being hijacked. China is sending its ships soon to that region. In Afghanistan, it was in the name of Tailbone who almost ruined their own country. In Iraq, it was in the name of one dictator who is no more but the effect he has created in his won country, will take a decade at least for that country to recover from its current position.


co-ordinate operations aimed at dealing with the terrorist problem in all affected states, namely (Karnataka, Chhattisgarh, Orissa, Andhra Pradesh, Maharashtra, Jharkhand, Bihar, Uttar Pradesh, and West Bengal). Importantly, this plan included funding for grass roots economic development projects in Naxalite affected areas, as well as increased special police funding for better containment and reduction of Naxalite influence in these areas. MOST EFFECTED BY THE TERRORIST As of 2010, the Indian Armed Forces have a combined strength of 1.32 million active personnel and 1.15 million reserve personnel. In addition there are 2.28 million paramilitary personnel making it one of the world's largest military forces in terms of personnel. The Border Security Force (BSF) is a border patrol agency of the Government of India.. Its primary role is to guard India's international borders during peacetime and also prevent transnational crime.. It is one of the many law enforcement agencies of India., including women battalions, it is one of the world's largest border patrol forces. In terrorist activities by the Naxlites and other terrorist group security forces are badly affected. In most of the cases they are killed using landmine or kidnapped by these terrorist, for fulfilled there unlawful demands by the Government. Main demand arise by these terrorist is release of terrorist from jails. Today most of the security forces engaged with this terrorist group in the different part of the country. These security forces are valuable human resources of the country. My proposed system may contribute something to save the life of our valuable security forces in naxel effected areas and border areas too.

434


INDIA FATALITIES: 1994-2012 BY THE TERRORIST ACTIVITIES

ZENITH

Civilians

Security Force Personnel

Total

1994

1696

417

2113

1995

1779

493

2272

1996

2084

615

2699

1997

1740

641

2381

1998

1819

526

2345

1999

1377

763

2140

2000

1803

788

2591

2001

1693

721

2414

2002

1174

623

1797

2003

1187

420

1607

2004

886

434

1320

2005

1212

437

1649

2006

1118

388

1506

2007

1013

407

1420

2008

1030

372

1402

2009

721

431

1152

2010

759

371

1130

2011

430

194

624

2012

90

68

158

Total*

23611

9109

33720

**Data Till 2004 does not include Fatalities in Left-wing Extremism *Data till May 6, 2012 INDIA FATALITIES, 2012 ELEMENTS OF PROPOSED SYSTEM INFORMATION TECHNOLOGY -IT is the area of managing technology and spans a wide variety of areas that include computer software, information systems, computer hardware,

435

Years




436

Radio Frequency Identification Tags (RFID) RFID is a technology that enables the electronic and wireless labeling and identification of object, human as well as animals. RFID, which means it doesn't provide much value on its own, but it enables organizations to develop applications that create value. The first disturbing fact is that RFID is not a new technology. It was first used over sixty years ago by Britain to identify aircraft in World War II and was part of the refinement of radar. It was during the 1960s that RFID was first considered as a solution for the commercial world. The first commercial applications involving RFID followed during the 70s and 80s. These commercial applications were concerned with identifying some asset inside a single location. They were based on proprietary infrastructures. This evolving as a major technology enabler for identifying and tracking goods and assets around the world. It can help hospitals locate expensive equipment more quickly to improve patient care, pharmaceutical companies to reduce counterfeiting, and logistics providers to improve the management of moveable assets. RFID can be either passive, active or battery assisted passive. An active tag has an on-board battery that periodically transmits its ID signal. A battery assisted passive (BAP) has a small battery on board that is activated when in the presence of a RFID reader. A passive tag is cheaper and smaller because it has no battery. Instead, the tag uses the radio energy transmitted by the reader as its energy source. The interrogator must be close for RF field to be strong enough to transfer sufficient power to the tag. Since tags have individual serial numbers, the RFID system design can discriminate several tags that might be within the range of the RFID reader and read them simultaneously. Tags may either be read-only, having a factory-assigned serial number that is used as a key into a database, or may be read/write, where the system user can write objectspecific data into the tag. Field programmable tags may be write-once, read-multiple; the user may write ―blank‖ tags with an electronic product code. Logistics and transportation are major areas of implementation for RFID technology. Yard management, shipping and freight and distribution centers use RFID tracking technology. In the railroad industry, RFID tags mounted on locomotives and rolling stock identify the owner, identification number and type of equipment and its characteristics. This can be used with a database to identify the lading, origin, destination, etc. of the commodities being carried. In commercial aviation, RFID technology is being incorporated to support maintenance on commercial aircraft. RFID tags are used to identify baggage and cargo at several airports and airlines. Some countries are using RFID


programming languages but are not limited to things such as processes, and data constructs. In short, anything that renders data, information or perceived knowledge in any visual format whatsoever, via any multimedia distribution mechanism, is considered part of the IT domain. IT provides businesses with four sets of core services to help execute the business strategy: business process automation, providing information, connecting with customers, and productivity tools. IT professionals perform a variety of functions that range from installing applications to designing complex computer networks and information databases. A few of the duties that IT professionals perform may include data management, networking, engineering computer hardware, database and software design, as well as management and administration of entire systems. Information technology is starting to spread further than the conventional personal computer and network technologies, and more into integrations of other technologies such as the use of cell phones, televisions, automobiles, and more, which is increasing the demand for such jobs.


technology for vehicle registration and enforcement. RFID can help detect and retrieve stolen cars. ANTENNA The RFID reader antenna transmits a wave that has both electrical and magnetic properties and is known as an electromagnetic wave. There are 3 different types of RFID antennas: LINEAR POLARIZATION (DIPOLE ANTENNAS) - the electromagnetic wave propagates entirely in one plane (Vertical or Horizontal) in the direction of the signal propagation. This is the best wave propagation when the tag orientation is known and fixed. The RFID antenna and RFID tag should be matched in polarization to obtain the best read rates. Circular Polarization the electromagnetic wave propagates in two planes creating a circular effect (like a corkscrew) making one complete revolution in a single wavelength timeframe. Since the RFID antenna continuously emits a wavelength the rotational field will eventually cover any tag that is in its path. This is best to use when tag orientation is unknown, but you lose at least 3dB when compared to a linear polarized antenna. Circular polarization can be right or left handed hence the RHCP and LHCP options for circular polarized antenna. Monostatic Circular or Bistatic Circular (2 Right Hand, 2 Left Hand or Right Hand + Left Hand) 

Monostatic is the most common RFID antenna and uses a single common port to transmit and receive signals



Bistatic uses 2 RFID antennas in the same physical housing and uses one port to transmit and the other port to receive

FREQUENCY BANDS APPLICATION

100-500 KHZ

Short range, law reading speed Animal, Human identification

10-15 MHZ

Medium range, reading speed

850-950 MHZ

Long range, very high reading Rail, Road, Car Monitoring , speed Toll Collection

average Access control, Smart cards


RANGE

437

FREQUENCY


Some standards that have been made regarding RFID technology include  ISO/IEC 18092 Information technology—Telecommunications and information exchange between systems—Near Field Communication—Interface and Protocol (NFCIP-1)  ISO 18185: This is the industry standard for electronic seals or "e-seals" for tracking cargo containers using the 433 MHz and 2.4 GHz frequencies.  ISO/IEC 21481 Information technology—Telecommunications and information exchange between systems—Near Field Communication Interface and Protocol -2 (NFCIP-2)  ASTM D7434, Standard Test Method for Determining the Performance of Passive Radio Frequency Identification (RFID) Transponders on Palletized or Unitized Loads  ASTM D7435, Standard Test Method for Determining the Performance of Passive Radio Frequency Identification (RFID) Transponders on Loaded Containers  ASTM D7580 Standard Test Method for Rotary Stretch Wrapper Method for Determining the Readability of Passive RFID Transponders on Homogenous Palletized or Unitized Loads NETWORK DIAGRAM OF THE SOLDIERS RFID MONITORING AND TRACING SYSTEM

Circular Polarization antenna

Soldiers at camp or any isolating place with RFID tags


Road or other place where soldiers go for their daily duty

RFID Reader Frequency band 850950 MHZ

438

Computer System with RFID software at Commanding officer’s office


AS A RESULT OF THE POTENTIAL BENEFITS OF THIS RFID SYSTEM Using these RFID based monitoring and tracing system security forces will present always in the eye of monitoring officers. In the case of Kidnapping of any soldiers he/she can easily traceable and after quick operation we can save the valuable life of soldiers as well as most valuable human recourse of the country without fulfill unlawful demands of terrorist groups. It is equally relevant for organizations wishing to track or locate existing goods, assets, or equipment.

www.rfidjournal.com

2.

www.computerworld.com

3.

www.rfidusa.com

4.

RFID handbook

5.

www.uh.edugartner

6.

Introduction to RFID, disc 4397-section 12977

7.

RFID : An introduction simon holloway

8.

Martein Meints (2007), D3.7 A Structured Collection on Information and Literature on Technological and Usability Aspects of Radio Frequency Identification (RFID), FIDIS deliverable 3(7), June 2007. [1]

9

Paolo Magrassi (2001). "A World Of Smart Objects: The Role Of Auto Identification Technologies". http://www.gartner.com. Retrieved 2007-06-24.

10

Pete Harrison (2009-07-28). "EU considers overhauling rules for lost air luggage". Reuters. http://www.reuters.com/article/rbssIndustryMaterialsUtilitiesNews/idUSLS63631320 090728. Retrieved 2009-09-09.

11

Sen, Dipankar; Sen, Prosenjit; Das, Anand M. (2009), RFID For Energy and Utility Industries, PennWell, ISBN 978-1-59370-105-5, pp. 1-48

12

Daniel M. Dobkin, The RF in RFID: Passive UHF RFID In Practice, Newnes 2008 ISBN 978-0-7506-8209-1, chapter 8

13

John R. Vacca Computer and information Kaufmann, 2009 ISBN 0-12-374354-0, page 208

14

Bill Glover, Himanshu Bhatt ,RFID essentials , O'Reilly Media, Inc., 2006 ISBN 0596-00944-5, pages 88-89

security

handbook,

Morgan

439

1.


REFERENCES


15

Hacking Exposed Linux: Linux Security Secrets & Solutions (third ed.). McGrawHill Osborne Media. 2008. p. 298. ISBN 978-0-07-226257-5. http://books.google.com/?id=f5Vz08spzw8C&printsec=frontcover.

16

The RFID technology and its current application: Elisabeth ILIE-ZUDOR kemeny, Peter Egri, Laszio Monostori

17

Indian Assessment-2007-2011

18

Vandana Asthana ― Cross –Border terrorism in India counterterrism strategies Challenges, ACDIS occasional paper(June 2010), University of Illinois

19

South Asia Terrorism portal

20

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