Table of Contents

Articles-HR EMPLOYEE SKILL MATRIX MAPPING FOR FORTECH INDUSTRIES, INDIA -A Case study Sudhakar Subramanian Worker Attitude as a Persuasive Factor for Outmigration in the Tea Plantation Sector of Sri Lanka Tamara Athauda Exit Interview: A Bridge between Management Perception and Employees' Aspirations Prabir Chandra Padhy Occupation Behavior :-In context to Indian scenario Rosemary wilsone netaji DR.Prem Chandra Thankur

Articles-Finance Benefits, Opportunities, and challeges of computerization of the Banking sector-A case study of Commercial Bank of Ethiopia. Talluri Jhansi, Kennedy Babu Singapogu INDIAN LIFE INSURANCE INDUSTRY– FUTURE OUTLOOK Kunati Raji Reddy, Rotte Kiran Kumar

Articles-Marketing A Comparative Study on Deliveries of Service on Life Insurance Sector: India vs. China Ravi Kant Sharma Parents’ perspective towards Pester power Kapil Choudhary, Garima Tiwari The Indian Microfinance Predicament ---Evidence in Literature and Practice sarita vichore

Articles-Others To Analyse the Association between Success Factor of Small Business and Category of Business in Rural Area of Southern Rajasthan of India Deepti Bhargava GLOBALIZATION OF EDUCATION: RECOGNITION AND CHALLENGES CLV Sivakumar, AVVS Subbalakshmi Awareness and its practicality on HIV/AIDS in higher learning institutions: a case of Dodoma University, Tanzania Madan Mohan laddunuri, Mary Mwaka Impact of FFS Training on Acquisition of Knowledge and Skills by Cotton Farmers Regarding Agro- Ecological Sound IPM Practices Akhtar Ahmed Siddiqui The Connection between Creativity,Language Aptitude and Level of Proficiency of Pakistani ESL Learners Shamim Ali

To Analyse the Association between Success factor of Small Business and Category of Business in Rural Area of Southern Rajasthan of India

Prof. Deepti Bhargava

ABSTACT to adopt entrepreneurship and promote it as a career. It will also increase the literacy rate of rural population. Their The paper examines the individual small business education and self-employment will prosper the community, association with success factor. It is important to understand thus, increasing their standard of living. the external, internal, and motivational factors responsible for business start-up, the barriers faced during the initial and The following characteristics are generally continuous stages of trading and the advice and assistance associated with rural industry: available to entrepreneurs. i. Very low investment; ii. Use of traditional skills; This paper is aiming in explaining the main factors iii. Decentralized production system; are related to success of different business category and also iv. Products are either essential mass analyse problem suffered by entrepreneurs in small consumer goods or handicrafts; industrial business in rural area of Rajsamand District. v. Use of locally available raw-material (in a Based on a random sampling 95 enterprisers are selected. few cases); vi. Cater to limited markets; This place is famous for different type of cottage vii. Product are famous for their uniqueness industries and artisan product, but due to lack of entrepreneurial training and marketing of product they are About Rajasthan and Rajsamand not expanding their business in large scale. This paper tries to give some suggestion on basis of findings observed at the Rajasthan is renowned for its cottage and small scale time of survey. industries in rural ares. Natural geography of Rajasthan is not suitable for agriculture and heavy industries because of Keywords: Rural entrepreneur, Success factor, marketing, acute shortage of water resources. Training People have Rajasthan have adopted for cottage industries Introduction for centuries to earn their bread. Large number of skilled artisans runs various cottage industries in Rajasthan and The cities are already concentrated with produces handmade products. industrialization and this makes growth of rural entrepreneurship more essential. Rural industries are labor- Gems and Jewelry, Paintings, Marble statues and other intensive, thus, providing a clear answer to the growing products, Carpets, Blue Pottery, Metal and Wooden works, problem of unemployment. Development of rural industries Garments and Fabrics are some of the handmade products through rural entrepreneurship has high scope of that attracts tourists and local people for window shopping. employment generation. There are great gaps and disparities in income of rural and urban people. Rural entrepreneurship These handmade products are shopping attraction of the can fill these gaps. Provision of more infrastructural overseas and indigenous tourists and a good business for facilities like power, roads, bridges etc. in rural area can local traders. help urban people migrating to rural areas and stop rural people migrating to cities in search of jobs. Rural Rajsamand District is a district of the state of Rajasthan in entrepreneurship can control concentration of industry in western India, 67 Km north of Udaipur and 352 KM south cities and promote regional development in a balanced way. of state capital - Jaipur on N H W - 8. Rajsamand is located Rural Indians are rich in traditional art, handicrafts etc. They between latitudes 24o 46' to 26o 01' N and Longitudes 73o can exploit this art commercially by manufacturing products 28' to 74o 18' E. Administratively Rajsamand is divided in like toys and doll making, batik work, gulal-rangoli, to 7 Sub-divisions, 7 Tehsils and 7 blocks. There are 205 painting, mehendi (Hina) and the like artistic activities. Gram Panchayats and 237 Patwar Circles. Kankroli, Other than these, growth of rural entrepreneurship can Rajnagar, Charbhuja, Nathdwara, Bhim, Railmagra, reduce poverty, growth of slums, pollution in cities, and Kelwara, Amet and Deogarh are some of the major towns of ignorance of inhabitants. Rural industrialization can awaken the district. the youth and expose him to various avenues open to them www.theinternationaljournal.org > RJSSM: Volume: 01, Number: 11, Mar-2012 Page 1

Total population of the Rajsamand district is 9,87,024 of Table:1 Annual Income which 4,93,459 male and 4,93,565 female. This district has Business N Mean SD F Df Res a male to female ratio of 1000:1000. Category ult Handicraft 1 97153. 50327. 2. 6, NS Rajsamand is renowned for its marble and has several 3 85 01 02 80 prominent large and medium scale industries including Marble 1 13100 89192. Marble, Tyre and Zinc. 8 0.00 46 Cottage & Artisan units based on handloom, leather, Others 2 77409. 37178. terracotta & livestock are other major attractions. The items 2 09 67 having export potential are terracotta, silver miniature, and Painting and 1 10200 30776. decorative marble articles etc. If we talk about rural Mukut Shringar 6 0.00 61 entrepreneurship in rajsamand district then mostly they are Rose Production 5 86000. 22472. engaged in marble work, terracotta, silver miniature, rose 00 21 products, mehndi and painting. Silver Art 1 13880 10547 0 0.00 6.49 RESEARCH DESIGN AND METHODOLOGY Taracota 3 66666. 20816. 67 66 The research has been conducted keeping in mind the objective of the study. The Study was restricted to These hypotheses were tested statistically by using Rajsamand district. This is the well developed area for rural f-test at 5% to 1% level of significance with degree of entrepreneur and so many small scale and cottage industries freedom given in Table. The above null hypotheses cannot are organized. Some of the businesses are marble, silver be rejected. Hence, business category has no impact on minakari, terracotta, handicraft, painting and mukut annual income. Every type of rural producers generates shringar and rose production. annual income at same level and there is no effect of type of business on income. Table shows that there is non The Research design chosen for this study was exploratory significant relationship between any business categories and research design. The main objective was to analyse the annual income. which product is associated with the success factor of entrepreneur and explore current status of marketing and H2: There is no significant relationship between business other business related problems of rural producers, suppliers category and investment. and artisans. Data has been collected both from primary and Table:2 Investment secondary sources. 160 questionnaires were administrated to Resu different rural entrepreneur of area undertaken for the study, Business Category N Mean SD F df lt out of which researchers could collect 95 useful filled 1 208125. 151094. questionnaires due to time and distance constraints as many Handicraft of them were remotely located. 6 00 62 1 573055. 342912. Marble The questionnaire covers all aspect of successful 8 56 01 2 310375. 491823. entrepreneur. The first part cover the demographic profile of Others respondent and second part covers the internal and external 0 00 64 Painting and Mukut 1 175000. 69522.1 3.6 6, factor affecting success of entrepreneur. ** Shringar 6 00 8 6 83 172000. 117983. OBJECTIVE Rose Production 5  To study what type of business done by 00 05 rural entrepreneur and with investment & 1 271000. 229863. Silver Art income. 2 00 60  To study the association of business 40000.0 17320.5 Taracota 3 category with success factors of 0 1 entrepreneur. The hypothesis can be rejected at 1% level of significance.  To give suggestions to promote the Table depicts that there is significant relationship between business in rural area. type of business and investment. It means that every type of business require different investment. Marble business Hypothesis Testing requires maximum investment and taracotta require minimum investement. To test the association between various business category and success factor, various hypotheses were formulated and H3: There is no significant relationship between business analyzed using appropriate statistical tool. category and training program.

H1: There is no significant relationship between business category and annual income.

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Table:3 Awareness regarding training program Table:5 Facilities required for business available Type of Business Yes No Type of Yes No No Total N % No % Business N % N % N % N % Handicraft 6 18.18 11 17.74 Handicra 7 41.1 2 11.7 8 47.0 1 100.0 Marble 3 9.09 15 24.19 ft 8 6 6 7 0 Painting and Mukut Shringar 10 30.30 6 9.68 Marble 1 72.2 0 0.00 5 27.7 1 100.0 Rose Production 2 6.06 3 4.84 3 2 8 8 0 Silver Art 3 9.09 9 14.52 Painting 1 87.5 2 12.5 0 0.00 1 100.0 Taracota 1 3.03 2 3.23 and 4 0 0 6 0 Other 8 24.24 16 25.81 Mukut Total 33 100.00 62 100.00 Shringar Test Rose 4 80.0 0 0.00 1 20.0 5 100.0 Chi Sqr Df Result Productio 0 0 0 8.621 6 NS n This hypothesis was tested statistically by using chi sqr test Silver Art 7 58.3 2 16.6 3 25.0 1 100.0 at 5% to 1% level of significance with degree of freedom 3 7 0 2 0 given in Table. Table shows that the hypothesis cannot be Taracota 2 66.6 0 0.00 1 33.3 3 100.0 rejected andthere is non significant relationship between 7 3 0 business category and training awareness. The respondent of Other 1 50.0 7 29.1 5 20.8 2 100.0 every type of business has same level of awareness and 2 0 7 3 4 0 almost toward no awareness. Test Chi Sqr Df Result H4: There is no significant relationship between business 19.811 12 NS category and training program. This hypothesis was tested statistically by using chi sqr test. Table shows that the hypothesis cannot be rejected and there Table:4 Attended any of the training program is non significant relationship between business category Type of Business Yes No and facilities. The facilities related to every business are N % No % available and respondent are satisfied at the same level. Handicraft 4 14.81 3 5.26 Marble 3 11.11 15 26.32 H6: There is no significant relationship between business Painting and Mukut Shringar 12 44.44 4 7.02 category and availability of raw material Rose Production 0 0.00 5 8.77 Table:6 Availability of raw material Silver Art 4 14.81 8 14.04 Type of Yes No Total Taracota 1 3.70 2 3.51 Business N % N % N % Other 3 11.11 20 35.09 Handicraft 15 88.24 2 11.76 17 100.00 Total 27 100.0 57 100.0 Marble 18 100.00 0 0.00 18 100.00 Test Painting and 18 75.00 6 25.00 24 100.00 Chi Sqr Df Result Mukut 23.171 6 *** Shringar Rose 14 87.50 2 12.50 16 100.00 This hypothesis was tested statistically by using chi sqr test Production at 5% to 1% level of significance with degree of freedom Silver Art 5 100.00 0 0.00 5 100.00 given in Table. Table shows that the hypothesis can be Taracota 12 100.00 0 0.00 12 100.00 rejected and there is significant relationship between Test business category and attended training programme. Chi Sqr Df Result Respondent of different category has vary regarding training 16.953 5 * programme. Maximum number of Respondent of mukut and This hypothesis was tested statistically by using chi sqr test. shringar has attended training programme as compare to Table shows that the hypothesis can be rejected at 5% level other. of significance and there is significant relationship between business category and raw material. For every type of H5: There is no significant relationship between business business raw material are available but for different type of category and facility available. business, it vary. For silver art, taracotta and marble, respondent are 100% satisfied with the availability of raw material.

H7: There is no significant relationship between business category and suitability of area.

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Table:7 Suitability of Area according to business Test Type of Yes No Total Chi Sqr Df Result Business N % N % N % 6.169 5 NS Handicraft 17 100.00 0 0.00 17 100.00 This hypothesis was tested statistically by using chi sqr test. Marble 15 83.33 3 16.67 18 100.00 Table shows that the hypothesis cannot be rejected and there Painting and is non significant relationship between business category 14 87.50 2 12.50 16 100.00 Mukut Shringar and advertisement. They are not using any type of Rose Production 5 100.00 0 0.00 5 100.00 advertisement at same level. Every business category has Silver Art 10 83.33 2 16.67 12 100.00 not relation with any type of promotion. H10: There is no significant relationship between business Taracota 3 100.00 0 0.00 3 100.00 category and assistance to sell the product. Other 20 83.33 4 16.67 24 100.00

Test Table:10 Assistance of hotel to sale product Chi Sqr Df Result Type of Yes No Total 4.652 6 NS Business N % N % N % This hypothesis was tested statistically by using chi sqr test. Handicraft 3 17.65 14 82.35 17 100.00 Table shows that the hypothesis cannot be rejected and there is non significant relationship between business category Marble 10 55.56 8 44.44 18 100.00 Painting and and suitability of area. It means that respondent related to 4 25.00 12 75.00 16 100.00 businesses is satisfied with the local area at same level. Mukut Shringar There is same association of different business and local Rose Production 5 100.00 0 0.00 5 100.00 area. Silver Art 1 7.69 12 92.31 13 100.00 Taracota 23 92.00 2 8.00 25 100.00 H8: There is no significant relationship between business Other 0 0.00 24 100.00 24 100.00 category and benefit of program run by government. Test Chi Sqr Df Result Table:8 Benefit by programs run by government 37.331 6 *** Yes No Total This hypothesis was tested statistically by using chi sqr test.

N % N % N % Table shows that the hypothesis can be rejected at 0.1% Handicraft 2 11.76 15 88.24 17 100.00 level of significance and there is significant relationship Marble 4 22.22 14 77.78 18 100.00 between business category and distribution channels agent, Painting and hotels etc. they are not associated with distribution channels 2 12.50 14 87.50 16 100.00 Mukut Shringar at same level. Table shows that there is significant Rose Production 3 60.00 2 40.00 5 100.00 relationship between business category and distribution channels agent, hotels etc. they are not associated with Silver Art 1 8.33 11 91.67 12 100.00 distribution channels at same level. Taracota 1 33.33 2 66.67 3 100.00 H11: There is no significant relationship between business Other 7 29.17 17 70.83 24 100.00 category and export of product Test Table:11 Export of product Chi Sqr Df Result Yes No Total 8.556 6 NS Type of Business N % N % N %

Handicraft 9 52.94 8 47.06 17 100.00 This hypothesis was tested statistically by using chi sqr test. Table shows that the hypothesis can not be rejected and Marble 6 33.33 12 66.67 18 100.00 there is no significant relationship between business Painting and Mukut Shringar 10 71.43 4 28.57 14 100.00 category and programme run by government for their Rose Production 5 100.00 0 0.00 5 100.00 development. They all are not benefited by these programs Silver Art 9 75.00 3 25.00 12 100.00 at same level. Taracota 2 66.67 1 33.33 3 100.00 Other 1 4.35 22 95.65 23 100.00 H9: There is no significant relationship between business Test category and advertisement of product. Chi Sqr Df Result 15.407 5 ** Table:9 Advertisement of product This hypothesis was tested statistically by using chi sqr test. Type of Yes No Total Table shows that the hypothesis can be rejected at 1% level Business N % N % N % of significance and there is significant relationship between Handicraft 8 47.06 9 52.94 17 100.00 business category and export of product. They are not Marble 12 66.67 6 33.33 18 100.00 associated with any type of export of product it means that Painting and they not exporting the product. 8 50.00 8 50.00 16 100.00 Mukut Shringar Rose Production 5 100.00 0 0.00 5 100.00 H10: There is no significant relationship between business Silver Art 7 58.33 5 41.67 12 100.00 category and Government assistance to sell the product

Taracota 1 33.33 2 66.67 3 100.00 www.theinternationaljournal.org > RJSSM: Volume: 01, Number: 11, Mar-2012 Page 4

Table:10 Government help in selling the product entrepreneur. In Rajsamand district they have lot of small Type of Yes No Total business but due to lack of some of the factors they are not Business N % N % N % getting benefit on the national level. Handicraft 0 0.00 17 100.00 17 100.00 Marble 2 11.11 16 88.89 18 100.00 DISCUSSION Painting and Above findings show that all type of business earn same 6 37.50 10 62.50 16 100.00 Mukut Shringar level of income but differ in investment. The marble entrepreneur needs more investment as compare to rose Rose Production 0 0.00 5 100.00 5 100.00 production and painting. If entrepreneur have minimum Silver Art 1 8.33 11 91.67 12 100.00 money to invest they can start the business like painting, Taracota 0 0.00 3 100.00 3 100.00 mukut shrinagar and rose products. Test The study find that rural entrepreneur have no knowledge Chi Sqr Df Result about training programme and they are not taking any type 12.781 5 * of training. Few respondents have joined some training This hypothesis was tested statistically by using chi sqr test. programme like Entreprenuership Development Programme Table shows that the hypothesis can and they find benefit in their business. There are many be rejected at 5% level of significance and there is government bodies, providing Training programme to the significant relationship between business entrepreneur but due the lack of information, entrepreneurs category and financial support provided by government. are not taking any advantage of these programs. It is Some of the product like painting and necessary for the governing bodies, who are conducting mukut shringar are getting more financial assistance by such type of programme is that they must circulate the government. information related the programmes through NGO’s and H10: There is no significant relationship between business SHG and at their own level. Then they counsel them about category and Financial assistance. the benefit of the programmes and provide financial Table:10 Financial Help assistance. For the rural entrepreneurs, access to such Type of Yes No Total training and educational programme, government assistance Business is crucial for them to achieve advantage in business. N % N % N % The infrastructure and facilities (transportation Handicraft 5 29.41 12 70.59 17 100.00 infrastructure, communications, buildings, water and power Marble 8 44.44 10 55.56 18 100.00 supply, access to capital), are necessary inputs to rural Painting and development that will create a favourable environment for 8 50.00 8 50.00 16 100.00 Mukut Shringar rural small businesses to succeed. The study shows those Rose respondents are satisfied with resources, raw material 0 0.00 5 100.00 5 100.00 Production transportation and environment of local areas. Silver Art 7 58.33 5 41.67 12 100.00 Poor marketing has always been recognised as a problem Taracota 0 0.00 3 100.00 3 100.00 faced by small businesses (Salleh, 1990). Although Table shows that there is significant relationship between respondent have all qualities of successful entrepreneur but business category and financial assistance by government. they are not using any promotion for their product. They They are not getting any financial help to sell the product at still depend upon traditional method of selling the product same level. It means any business category is not associated and mostly entrepreneur depend upon agents. Due to lack of with financial help. development programmes they have no knowledge of distribution channels and promotion strategy. They are not H11: There is no significant relationship between business displaying their product in malls and outside the city. There category and customer satisfaction. must be role of government and training organisation to tell them how they can promote the product outside the local Table;11Customers satisfaction with products region. The study depicts that they are taking financial help through Type of Business N Mean SD F df Result banks and satisfied with the procedure. Similarly we have Handicraft 17 4.35 0.70 observed that products are good in quality and available in Marble 18 4.28 0.67 various features. They take the order from the showrooms Painting and Mukut Shring 14 3.86 0.86 1.08 5, 63 NS and directly from the customer and fulfil the demand on Rose Production 5 4.20 1.10 time. Silver Art 12 4.42 0.79 Taracota 3 4.67 0.58 SUGGESTION This hypothesis was tested statistically by using f-test. Table There are many small business are running in Rajsamand shows that the hypothesis cannot be rejected and there is no district and provide employment to the rural people. These significant difference between business category and business supports in economical development of the region. customer satisfaction. Table shows that the customers are If the problems like training and marketing remove then satisfied with the product at same level. they can export the product internationally and contribute We have seen that training, facility related to business like more in the economy. The researcher find some suggestion transportation and raw material, price & delivery and above at the time of study: all marketing are necessary for successful rural www.theinternationaljournal.org > RJSSM: Volume: 01, Number: 11, Mar-2012 Page 5

 The important interventions of government The study elaborate that all products are associated with agencies like RUDA (Rural Non-farm marketing and training programme at same level. It shows Development Agency) in organizing and capacity that marketing of rural product and skill development of building, technology dissemination, product and entrepreneur are the major problem. They are necessary for design development, credit and market facilitation every type of business. This district has government had been of great value to the rural artisan families. recognised skill development centre but rural entrepreneur Such Agencies should be equipped with more need more guidance and councelling. resources and should be given autonomy to work in more coordinated way. REFERNCES  They generally sell the product directly or (1)Dr. Kalpana P. Nandanwar, International Referred exhibition and local haat. Collective Marketing is Research Journal,March, 2011.ISSN- 0974-2832,Rni- need of the hour not only in the local market but Rajbil2009/29954, Vol.Ii *Issue-26,Role Of Rural also in the outside market. Entrepreneurship In Rural Development  Study of Market Trend, Product Trend, Price (2)Yadollah Mehralizadeh (PhD) & Hossain Sajady (PhD), Fluctuation, Trade Meets, Retail & Wholesale http://ssrn.com/abstract=902045, A study of factors related Events, and Fairs & Exhibitions, preparation of to successful and failure of entrepreneurs of small industrial Product Information Brochures, CD Catalogues, business with emphasis on their level of education and Price Lists, and efforts for Brandings are some training important areas where rural producers and (3)Radiah Abdul Kader, Mohd Rosli Bin Mohamad, Ab. facilitating agencies should pay attention. Azid Hj. Che Ibrahim Faculty of Economics and  The skill training can lead to the improvement in Administration, University of Malaya, Success Factors For the quality and the design of the products prepared Small Rural Entrepreneurs Under The One-District-One- by the Artisans, which can result in better off to Industry Programme In Malaysia take of their products in local market, in nearby (4)Dr. Kartik Dave, prof Karunesh Saxena, Oxford Business towns as well as in various fairs and exhibitions. and Ecoomics Conference Program, 2010, ISBN-978-0- There are government bodies conducting skill 9742114-1-9, Problems and Prospects for Marketing of development training, but the problem is that Rural Products: An Empirical Study of Tribal Region of entrepreneurs are not much aware about this Rajasthan (India) program. There should be complete information (5) http://sisijaipur.gov.in/brochure.html should be given through counseling process. (6) www.rajsamand.nic.in  The governments are running various schemes (7) http://raj-sthan.webs.com/industries.htm through NABARD, SIDBI, and Banks etc for providing financial assistance and skill development. The rural entrepreneur should take advantage of these programs. SHGs & NGO play a important role to motivate the entrepreneur to join entrepreneurship development program. The institute can provide business mentoring; training support for entrepreneurship in relation to system and economic analysis, finding resources, management system, accounting, new techniques of production and delivering services to customers, how to maintain the quality.  The government could shift its efforts from the provision of direct financial support through government loans and subsidies to developing public-private mechanisms and specialized financial instruments  Technological upgradtion and process changes related training are required to compete on price with other similar products available in the market.  Guidance and help should be solicited to rural producers in suitable packaging as per the requirement of the product, client and distance, etc.

CONCLUSION The entrepreneurs of Rajsamand district are indulging in small scale, cottage and artisan industries. The entrepreneurs are doing well in their business. They need exposure and skill development, so that, they cannot limit their business within local area.

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A Comparative Study on Deliveries of Service on Life Insurance Sector: India vs. China

Ravi Kant Sharma Asst. Prof. (MBA-Department) Raj Kumar Goel Engineering College, Ghaziabad

Abstract: In the customers centric era organizatation in the Review of Literature: emerging economies are carefully designing their service strategies for satisfying their customers. The study on life Qualitative and quantative research activities have been insurance services have been compared because of growth studied in this regard for assessing the customers, potential of life insurance segment in both the economies competitors, as well as staff. Since its inception, SERVQUAL have become a popular method for measuring Design/methodology: This paper is based on the published service quality (e.g. Bojanic and Rosen 1993; Llosa et al. article, refereed journals, and world insurance reports, and 1998; Oldfied and Brown 2000; Saleh and Rayan the factors of service quality which have been discussed by 1991).Customer satisfaction and the salesperson’s relation the Groonos (2007). orientation significantly influences the future business opportunities and as the salespersons are able to enhance Findings: Two countries shows that while India spends a their relationships with the clients, clients are more satisfied greater proportion of its gross domestic product (GDP) on and are more willing to trust, and thus secures the long-term life insurance, .India spends 4% of its GDP on life demand for the services (Tam and Wong, 2001). Hellier et insurance; China's comparative figure is 1.8%, according to al. (2003) found that in insurance purchase brand preference a report by Indian Insurance Review. Life products are seen is an intervening factor between customer satisfactions and in India primarily as a means of improving financial health. repurchase intention and the main factor influencing the India lacks any system of social security, and life insurance brand preference is the perceived value and customer products offer tax benefits, and income protection. satisfaction. The company and agent’s service quality as Endowment or whole-life policies provide good saving well as recommendations of friends are factors that options, and are more popular in India than simple term-life significantly affect decisions of purchasing life insurance plans that offer pure risk protection. For deliveries of policies (Chow-Chua and Lim, 2000). services China have been lagging behind from India because of professional skills, trust of agent and better products and Within an increasingly competitive environment, Customers policies. focus strategies is an organization strategic tool for improving product/service quality (Guilding & Research limitations: This paper is based on the secondary McManus,(2002).Gronroos(2007) emphasies that the data, and for the service deliveries empirical study is needed following ―seven criteria of good percived quality‖ are the for the comparing the two different economy. Cultures have determinants that need to be considered when evaluating the profound impact on the service deliveries, which is not service quality of any organizatation. included in this article. 1.Professionalism & Skills 2.Attitude and Behavior Practical & Social Implications: In the expectation of better 3.Accessibility & Flexibility4.Realibility and services, consumers have the choice to choose the service Trustworthiness5. Service Recovery 6.Servicape providers while the organizatation are working under the 7.Reputation and Credibility pressure to reduce their operating expenses in insurance segments in developing economies Methodology:

Originality: This work is creation of research scholar which From the above discussion the researcher have taken few is pursuing cross-cultural study on service deliveries.. factors of Gronroos(2007) along with certain other factors which have been taken from the published reports like world Terminology: Cross-Cultural, Service Deliveries/Quality Insurance Report-2008,BCG report, news papers and Customers Expectation, , magzines and articles. And the following factors have been discusse: Objectives: 1. To identify the growth and potential in Life Insurance 1 The Market: India vs. China segment in both the economies. 2.Regulatory environment 2. To compare the service deliveries in life insurance 3. Role of Intermediaries Trust and Reliabilities segment in both the economies 4. Products & Policies 5. Professionalism & Skills www.theinternationaljournal.org > RJSSM: Volume: 01, Number: 11, Mar-2012 Page 7

6Consumer Awareness and Domestic Attitudes towards shown that Indian consumers have better opportunities as Openness compare to Chines customers. 7. Conclusion Professionalism & Skills The Market: India vs. China A huge gap in quality of service still exists between most Combined, China and India account for almost 40% of the developed-country industries as well as in emerging world’s population, and they have expanded their economies economies. Due to low professional service standards at a rapid pace over the last five years, with GDP growth insurers failed to provide after –sales service. Effectively averaging 10.6% in China and 8.7% in India. Because of responding to claims have been an issue, and there have demographic dividend Life insurance growth will been numerous cases of companies failing to deliver on their continue.A.M. Best’s Country Risk analysis have put promises to clients. In today's China, it is easy to find .China CRT-3 since May 2003. China’s tier is at the high disgruntled insurance customers; the litany of complaints end compared to other BRIC countries, such as Russia and includes misleading descriptions of coverage and the delay India, which are assessed as CRT-4 of refunds for months or even years.

Regulatory Environment Many insurers avoid poaching staff from competitors, instead preferring instead to hire staff directly from The China Insurance Regulatory Commission (CIRC) had universities and train them in their own systems. There is established as the industry regulator in 1998. While (IRDA), still a high turnover rate, as trainees hunt for higher paid had in 1999, supervises the Indian insurance industry. Both jobs and more senior positions.Competitive pressure for China and India have restrictions on foreign direct talent is fuelling salary increases for skilled middle investment in life insurance companies. Currently, the management of 15% to 25% per year. Chinese regulator sets a limit of 50% and India puts 26% for joint venture insurance companies. As compare to, in India In India too these problems have been prevalent but have the transparent legal system which protect the interest comparatively in less in frequency, in India professional of customers. service standard have been higher than China.

Role of Intermediaries Trust & Realibility Consumer Awareness and Attitudes Towards Openness

China and India have individual tied agency forces, group In China, people still consider insurance to be unnecessary. sales representatives (selling group products to state-owned Even when citizens (usually in big cities) recognize and private enterprises), and bank and post office branches . insurance as a necessity, they lack basic insurance (Chunling Li,2005) found the professional reputation of knowledge. Chinese life insurance agents is also very low. The low reputation of the profession also indicates that social In China, result shows the vast majority of customers resistance to life insurance agents is quite common in China. recognize only one insurer-typically their own insurer or the Thus, it is understandable that Chinese life insurance agents most active player in the region. Customers in India value always experience negative emotions such as frustration the brand name and trustworthiness of the service provider because of rejections and contempt due to the low reputation more than any other factor when purchasing an insurance of their profession.. The retention and productivity levels of product (see below figure). This attitude has helped agents are generally poor, and currently no commission incumbent life insurer LIC protect much of its market share clawback is permitted in India..Consumer confidence and (It still accounts for 80% of premiums written25) even after trust in insurance distribution have eroded because 6 years of liberalization. After brand, the most influential customers’ needs are more complex and insurance factor for customers in India is returns/fees—consistent with distribution model have gradually changing to product-push the perceptions of life insurance as a means of wealth to advisory model. accumulation, and non-life as an unnecessary expense.

Products & Polices Conclusion:

Savings-oriented products tend to dominate the life A comparison in the business in the two countries shows insurance industry in both China and India. Both markets that while India spends a greater proportion of its gross offer a wide range of traditional nonlinked (both domestic product (GDP) on life insurance, China spends participating and no participating) and linked savings relatively more on general insurance. India spends 4% of its products. There have been strong demand for investment- GDP on life insurance; China's comparative figure is 1.8%, linked (or unit-linked) products in both countries, In India, according to a report by Indian Insurance Review. fairly simple maturity investment guarantees are offered, According to (World Insurance Report, 2008), China's these investment guarantees are not yet generally offered industry growth is more focussed on "short-term single or with these products in China. Universal-type products, renewable single premium policies sold as a substitute for which offer the advantage of some guarantees for bank deposits. India's growth is more powered by long-term policyholders, are also becoming popular in China. Studies regular premium products sold for need". India have developed further in the service sector generating www.theinternationaljournal.org > RJSSM: Volume: 01, Number: 11, Mar-2012 Page 8 proportionately greater insurance demand. Life products are service quality, satisfaction and purchase intentions in a seen in India primarily as a means of improving financial health care setting. J. Health Care Mark. 14(3): 34-40. health. India lacks any system of social security, and life insurance products offer tax benefits, and income protection. -Oldfield, B. and Baron, S. (2000) Student Perceptions of Service Quality in a UK University Business and Overall discussion shows that India have comperative Management Faculty. Quality Assurance in Education, 8, advantage for the delivering better services to their customer 85-95. against china, even though both the economies still under penetrated. "Rising internet use is increasing transparency in -Saleh, F., Ryan, C., 1991. Analysing service quality in the the industry, providing customers with better access to hospitality industry using the SERVQUAL model. The information on product specifications and pricing and Service Industries Journal 11 (3), 324-343. increased bargaining power. -Saraf. Vishnu, ―India & China-Comparing The As a result, customers have become more self sufficient, Incomparable‖ Macmillan India Ltd. Year-2008, price-sensitive and less loyal," (Bertrand Lavayssière,, pp-xxxii Capgemini Global Financial Services) BCG have mentioned in their report(2010) that India will be in advantage position -(Special Report, Rest Week, ―China Life & Non-Life‖, on gross written premium over China. . Market Review, September 20, 2010, pp-1-16)( www.ambest.com/research) Limitation: Culture have profound impact on cross-culture service deliveries, the researcher haven’t discussed the -Sheng, Sixin Emotional Conflicts and Coping Strategies: impact of culture and technology. The Case of Life Insurance Agents in China, pages: 1-34

Reference: -Tam J L M and Wong Y H (2001), ―Interactive selling: A Dynamic Framework for Service‖, Journal of Service Binder, Stephan, Tab Bowers and Winston Yung 2005. Marketing, Vol. 15, No. 5, pp.379-396 'Selling Life Insurance to China'. The McKinsey Quarterly: - World Insurance Report-2008/2009 China Today. Special Edition: 83-87 -http://www.republikein.com.na/die-mark/world-insurance- -Bojanic, D.C. and Rosen, L.D. (1993), ―Measuring service report-customer-satisfaction-is-no-guarantee-rn-of- quality in restaurants; An application of the SERVQUAL loyalty.24452.php instruments‖, Hospitability Research Journal, Vol. 18, pp-3- 14 -Chow-Chua C and Lim G (2000), ― A Demand Audit of the Insurance market in Singapore‖, Managerial Auditing Journal, Vo. 15, No. 7, pp. 372-382 -Guilding, C., & McManus, L. 2002. The incidence, perceived merit and antecedents of customer accounting: an exploratory note. Accounting, Organizations and Society, 27(1-2), 45-59

- Grnroos, C. (2007) Service Management and Marketing, Customer management in Service Competition,(3rd Edition), West Sussex: Jhon Wiley and Sons

- Hellier P K , Geursen G M, Carr R A and Rickard J A (2003), Customer Repurchase Intention: A General Structural Equation Model‖, European Journal of Marketing, Vol. 37, Nos.11/12, pp.1762-1800

-Kaye. Chris & Loh. Kuo- Loon, ―Life Insurance In Asia- New Realities and Emerging Opportunities‖, BCG, April- 10,pp-1-10

-KPMG, Foreign insurers in China: Opportunity and risk, July 2005

-Llosa S, Chandon JL, Orsinger C (1998). An empirical study of SERVQUAL’s dimensionality. Serv. Ind. J., 18(2):16-44. McAlexander JH, Kaldenberg DO, Koeing HF (1994). Service quality measurement: Examination of dental practices sheds more light on the relationships between www.theinternationaljournal.org > RJSSM: Volume: 01, Number: 11, Mar-2012 Page 9

Annexure

www.theinternationaljournal.org > RJSSM: Volume: 01, Number: 11, Mar-2012 Page 10

China Life--Market Growth (2007-09)

source-Axa Life Insurance-2007

www.theinternationaljournal.org > RJSSM: Volume: 01, Number: 11, Mar-2012 Page 11

Source-Axa Life Insurance-2007

Source-World Insurance Report-2008, chart-7

www.theinternationaljournal.org > RJSSM: Volume: 01, Number: 11, Mar-2012 Page 12

Nethaji Subhas Chandra Bose Dr.Prem Chandra Thakur, Deoram, Darbhanga, India-847233

INTRODUCTION India Forward Bloc and continued to call for the full and immediate independence of India from British rule. He was Subhas Chandra Bose known by name Netaji Leader was an imprisoned by the British authorities eleven times. His Indian revolutionary who led an Indian national political and famous motto was:"Give me blood and I will give you military force against Britain and the Western powers during freedom. His stance did not change with the outbreak of the World War II.Bose was one of the most prominent leaders Second World War, which he saw as an opportunity to take in the Indian independence movement and is a legendary advantage of British weakness. At the outset of the war, he figure in India Bose was born on 23 January 1897 in left India , traveling to the Soviet Union, and Cuttack, Orissa" to Janakinath Bose and Prabhabati Imperial Japan, seeking an alliance with each of them to Debi.Subhash Chandra Bose was born in aorg "Bengali, attack the British government in India . With Imperial Hindu, Kayastha family on January 23, 1897.He was the Japanese assistance, he re-organized and later led the Azad ninth child of a total of fourteen siblings. He studied in an Hind Fauj "" Indian National Army Anglo school at Cuttack until the sixth standard and then formed with Indian "Prisoner-of-war ―and plantation shifted to College, Presidency, Kolkata. Where he studied workers from British Malaya, Singapore and other parts of briefly.His ationalistic temperament came to light when he Southeast Asia, against British forces. With Japanese was expelled for assaulting Professor Oaten for his anti- monetary, political, diplomatic and military assistance, he India comments. Bose later topped the matriculation formed the Government in exile, and regrouped examination of Calcutta province in 1911 and passed his and led the Indian National Armyin failed military B.A. in 1918 in philosophy from the Calcutta . Bose went to campaigns against the allies at and Burma . study in University of Cambridge , and matriculated, which His political views and the alliances he made with Nazi and is formally enrolled in the Cambridge University , on 19 other militarist regimes at war with Britain have been the November 1919. He was a non-collegiate student.He studied cause of arguments among historians and politicians, with Philosoe newspaper Swaraj and took charge of publicity for some accusing him of fascist sympathies, while others in Bengal Provincial Congress Committee. His mentor was India have been more sympathetic towards the realpolitik "who was a spokesman for aggressive that guided his social and political choices. It is also nationalism in Bengal.In the year 1923, he was elected the believed among a section of people in India that if subhas President of All India Youth Congress and also the Bose could win the freedom of India himself the face of Secretary Bengal State Congress.He was also Editor of the today's Indian sub-continent would have been different. The newspaper "Forward", founded by Deshabandhu .Bose partition of India and Pakistan and later Bangladesh could worked as the CEO of the municipal corporation of Calcutta have been avoided, and an under for Das when the latter was elected mayorof Calcutta in the leadership of Subhas Chandra Bose would have been 1924. In a roundup of nationalists in 1925, Bose was much stronger and firm.He is Death mystery of Netaji arrested and sent to prison in Mandalay , where he Subhash Chandra Bose presumed to have died on 18 August contracted tuberculosis. 1945 in a plane crash in Taiwan, though the evidence for his death in such an accident has not been universally accepted. Subhas Chandra Bose activities; Mohandas at the Indian National Congress annual meeting Bose advocated complete unconditional independence for in 1938 when Subhas Chandra Bose was President of India , whereas the All-India Congress Committee" wanted Congress party.In 1927, after being released from prison, it in phases, through Dominion status. Finally at the Bose became general secretary of Congress party and historic Lahore Congress convention, the Congress adopted worked with for independence. Again as its motto. Bhagat Singh's martyrdom and Bose was arrested and jailed for civil is obedience; this time the inability of the Congress leaders to save his life he emerged to become Mayor of Calcutta in 1930. During infuriated Bose and he started a movement opposing the the mid-1930s Bose traveled in Europe , visiting Indian Gandhi-Irwin Pact. He was imprisoned and expelled from students and European politicians, including Mussolini. He India . Defying the ban, he came back to India and was observed party organization and saw communism and imprisoned again. Bose was elected president of the Indian fascism in action. 1938 Bose had become as leader of National Congress for two consecutive terms, but had to stature and agreed to accept nomination as Congress resign from the post following ideological conflicts with president. He stood for unqualified Swaraj, including the Mohandas K. Gandhi and after openly attacking the use of force against the British. This meant a confrontation Congress' foreign and internal policies.Bose believed that with Mohandas Gandhi, who in fact opposed Bose's Gandhi's tactics of non-violence would never be sufficient to presidency, splitting the Indian National Congress party. secure India's independence and advocated violent Bose attempted to maintain unity, but Gandhi advised Bose resistance. He established a separate political party, the All to form his own cabinet. The rift also divided Bose and www.theinternationaljournal.org > RJSSM: Volume: 01, Number: 11, Mar-2012 Page 13

Nehru. Bose appeared at the 1939 Congress meeting on a avoid being identified. Bose escaped from under British stretcher. He was elected president again over Gandhi's surveillance at his house in Calcutta . On January 19, 1941, preferred candidate Pattabhi Sitaramayya. U. accompanied by his nephew Sisir K. Bose in a car that is Muthuramalingam Thevar strongly supported Bose in the now at display at his Calcutta home. He journeyed with the intra-Congress dispute. Thevar mobilised all south India help of the Abwehr, where he was met by Akbar Shah, votes for Bose. However, due to the manoeuvrings of the Mohammed Shah and Bhagat Ram Talwar. Bose was taken Gandhi-led clique in the Congress Working Committee, to the home of Abad Khan, a trusted friend of Akbar Shah's. Bose found himself forced to resign from the Congress On 26 January 1941, Bose began his journey to reach Russia presidency. His uncompromising stand finally cut him off through India 's with Afghanistan . For this reason, he from the mainstream of Indian nationalism. Bose then enlisted the help of Mian Akbar Shah, and then a Forward organized the Forward Bloc on June 22, aimed at Bloc leader in the North-West Frontier Province . consolidating the political left, but its main strength was in his home state, Bengal . UMuthuramalingam Thevar, who Shah had been out of India en route to the Soviet Union , was disillusioned by the official Congress leadership. This and suggested a novel disguise for Bose to assume. Since had not revoked the Criminal Tribes. Act, joined the Bose could not speak one word of "Pashto language", it Forward Bloc? When Bose visited Madurai on September would make him an easy target of Pashto speakers working 6, Thevar organised a massive rally as his reception. for the British.

Bose advocated the approach that the political instability of For this reason, Shah suggested that Bose act deaf and war-time Britain should be taken advantage of-rather than dumb, and let his beard grow to mimic those of the simply wait for the British to grant independence after the tribesmen. Bose‘s guide Bhagat Ram Talwar, unknown to end of the war. In this, he was influenced by the examples of him, was a Soviet agent "Aga Khan III" helped him across Italian statesmen Giuseppe Garibaldi and "Giuseppe the border into Afghanistan where he was met by an Mazzini". Abwehr unit posing as a party of road construction engineers from the Organization Todt who then aided his His correspondence reveals that despite his clear dislike for passage across Afghanistan via Kabulto the border with British subjugation, he was deeply impressed by their Soviet Russia. After assuming the guise of a "Pashtun methodical and systematic approach and their steadfastly people" insurance agent to reach Afghanistan , Bose disciplinarian outlook towards life. In England , he changed his guise and traveled to Moscow on the Italian exchanged ideas on the future of India with British leaders passport of an Italian nobleman "Count Orlando Mazzotta". and political thinkers like Lord Halifax eorge From Moscow , he reached Rome , and from there he LansburyClement Attlee Arthur Greenwood, J.B.S. traveled to Germany .Once in Russia the NKVD transported Haldane, Gilbert Murray and "Authoritarianism" on the Bose to Moscow where he hoped that Russia 's traditional lines of Turkey 's Kemal Atatürk, for at least two decades. enmity to British rule in India would result in support for his Bose was refused permission by the British authorities to plans for a popular rising in India . However, Bose found meet Mr. Atatürk at "Liberal Party‖ politicians agreed to the Soviets' response disappointing and was rapidly passed meet with Bose when he tried to schedule appointments. over to the German Ambassador in Moscow , ―Friedrich Conservative Party officials refused to meet Bose or show Werner von der Schulenburg "Count von der Schulenburg. him courtesy because he was a politician coming from a He had Bose flown on to Berlin in a special courier aircraft colony. In the 1930s leading figures in the Conservative at the beginning of April where he was to receive a more Party had opposed even Dominion status for India . It was favorable hearing from and the during the Labour Party government of 1945–1951, with Foreign Ministry officials at the Wilhelmstrasse in Germany Attlee as the Prime Minister, that India gained ; he instituted the under "Adam von independence. On the outbreak of war, Bose advocated a Trott zu Solz", broadcasting on the German-sponsored Azad campaign of mass civil disobedience to protest against Hind Radio. He founded the Free India Center in Berlin , Viceroy Lord Linlithgow's decision to declare war on India and created the " ―Indian Legion consisting of 's behalf without consulting the Congress leadership. Having some 4500 soldiers out of Indian prisoners of war who had failed to persuade Gandhi of the necessity of this, Bose previously fought for the British in Africa prior to their organized mass protests in Calcutta calling for the 'Holwell capture by Axis forces. The Indian Legion was attached to Monument' commemorating the Black Hole of Calcutta, the Wehrmacht, and later transferred to the Waffen SS. Its which then stood at the corner of Dalhousie Square, to be members swore the following allegiance to Hitler and Bose: removed. He was thrown in Jail by the British, but was "I swear by God this holy oath that I will obey the leader of released following a seven-day hunger strike. Bose's house the German race and state, , as the commander in Calcutta was kept under surveillance by the ―Criminal of the German armed forces in the fight for India , whose Investigation Department" CID, but their vigilance left a leader is Subhash Chandra Bose". This oath clearly good deal to be desired. With two court cases pending, he abrogates control of the Indian legion to the German armed felt the British would not let him leave the country before forces whilst stating Bose's overall leadership of India . He the end of the war. This set the scene for Bose's escape to was also, however, prepared to envisage an invasion of Germany , via " Afghanistan " and the Soviet Union . A few India via the USSR by Nazi troops, spearheaded by the days before his escape, he sought solitude and on this "Indische Legion" Azad Hind Legion, many have pretext avoided meeting, British guards and grew a beard questioned his judgment here, as it seems unlikely that the and on the night of his escape he dressed as a Pathan to Germans could have been easily persuaded to leave after www.theinternationaljournal.org > RJSSM: Volume: 01, Number: 11, Mar-2012 Page 14 such an invasion, which might also have resulted in an Axis British Raj.Spoken in Hindi, Bose's words are highly victory in the War In all 3,000 Indian prisoners of war evocative. signed up for the Free India Legion. The troops of the INA were under the aegis of a provisional But instead of being delighted, Bose was worried. A left- government, the Azad Hind Government, which came to wing admirer of Russia , he was devastated when Hitler's produce its own currency, postage stamps, court and civil tanks rolled across the Soviet border. Matters were code, and was recognized by nine Axis states-Germany, worsened by the fact that the now-retreating German army Japan, "Kingdom of Italy (1861–1946)" Italy, Independent would be in no position to offer him help in driving the State of Croatia, Wang Jingwei regime in Nanjing, China, a British from India . When he met Hitler in May 1942 his provisional government of Burma, Manchukuo and suspicions were confirmed, and he came to believe that the Japanese-controlled Philippines. Recent researches have Nazi leader was more interested in using his men to win shown that the USSR too had recognised the Provisional propaganda victories than military ones. So, in February Government of Free India" Of those countries, five were 1943, Bose turned his back on his legionnaires and slipped authorities established under Axis ccupation. This secretly away aboard a submarine bound for Japan . This government participated in the so-called Greater East Asia left the men he had recruited leaderless and demoralized in Conference as an observer in November 1943 Greater East Germany Bose spent almost three years in Berlin, Germany Asia Conference in November 1943, Participants Left to from 1941 until 1943, during which he married "Emilie right Ba Maw, Zhang Jinghui, Wang Jingwei, José P. Schenkl‖ and a daughter Anita Bose Pfaff was born to them Laurel, and Subhas Chandra Bose. The INA's first in 1942.The crew of the Japanese submarine I-29 after the commitment was in the Japanese thrust towards Eastern rendezvous with the German submarine U-180 300 sm Indian frontiers of Manipur. southeast from Madagascar. At bottom left is the Indian nationalist Subhash Chandra Bose. Date: 28 April INA's Special Forces, the , were extensively 1943.After being disillusioned that Germany could be of involved in operations behind enemy lines both during the any help in liberating India ; in 1943 he left for Japan . He diversionary attacks in Arkansas well as the Japanese thrust traveled by the German submarine Cape of Good Hope to towards Imphal and Kohima, along with the Burmese Imperial Japan Japanese submarineI-29. This was the only National Army led by Ba Maw Aung an. Japanese ccupation civiliantransfer between two submarines of two different of the Andaman Islands Japanese also took possession of Navies in World WarII.The Indian National Army was Andaman and Nicobar Islands in 1942 and a year later, the originally founded by Capt " in Singapore in Provisional Government and the INA were established in September 1942 with Japan 's Indian POWs in the Far East . the Andaman and Nicobar Islands with Lt Col. A.D. This was along the concept and with support of-what was Loganathan appointed its Governor General. The islands then known as the Indian Independence League, headed by were renamed Shaheed and Swaraj. However, the Japanese expatriate nationalist leader . The first Navy remained in essential control of the island's INA was however disbanded in December 1942 after administration. During Bose's only visit to the islands in disagreements between the Hikari Kikan and Mohan Singh, early 1944, When he was carefully screened from the local who came to believe that the Japanese High Command was population by the Japanese authorities, who at that time using the INA as a mere pawn and propaganda tool. Mohan were torturing the leader of the Indian Independence League Singh was taken into Custody and the troops returned to the on the Islands, Dr. Diwan Singh, who later died of his prisoner-of-war camp. However, the idea of a liberation injuries, in the Cellular Jail. The islanders made several army was revived with the arrival of Subhas Chandra Bose attempts to alert Bose to their plight, but apparently without in the Far East in 1943.In July, at a meeting in Singapore , success. Enraged with the lack of administrative control, Rash Behari Bose handed over control of the organization to Lt.Col Loganathan later relinquished his authority and Subhas Chandra Bose. returned to the Government head quarters in Rangoon . On the Indian mainland, an Indian Tricolour, modeled after that Bose was able to reorganize the fledgling army and organize of the Indian National Congress, was raised for the first time massive support among the expatriate Indian population in in the town in Moirang, in Manipur, in north-eastern India . south-east Asia, who lent their support by both enlisting in The towns of Kohima and Imphal were placed under siege the Indian National Army, as well as financially in response by divisions of the Japanese, Burmese and the Gandhi and to Bose's calls for sacrifice for the national cause. At its Nehru Brigades of INA during the attempted invasion of height it consisted of some 85,000 regular troops, including India , also known as Operation U-GO. However, Common- a separate women's unit, the Rani of Jhansi Regiment wealth forces held both positions and then counter-attacked, headed by Capt in the process inflicting serious losses on the besieging forces, which were then forced to retreat back into Burma . Lakshmi Swami Nathan, which is seen as a first of its kind When Japanese funding for the army diminished, Bose was in Asia Subhas Chandra Bose Even when faced with forced to raise taxes on the Indian populations of Malaysia military reverses, Bose was able to maintain support for the and Singapore .When the Japanese were defeated at the Azad Hind movement. Spoken as a part of a motivational battles of Kohima and Imphal, the Provisional Government's speech for the Indian National Army at a rally of Indians in aim of establishing a base in mainland India was lost Burma on July 4, 1944, Bose's most famous quote was forever. The INA was forced to pull back, along with the "Give me blood, and I shall give you freedom!" In this, he retreating Japanese army, and fought in key battles against urged the people of India to join him in his fight against the the British Indian Army in its Burma campaign, notable in www.theinternationaljournal.org > RJSSM: Volume: 01, Number: 11, Mar-2012 Page 15

Meiktilla, Mandalay, Pegu, Nyangyu and Mount However, the Indian Government rejected the findings of Popa.However, with the fall of Rangoon, Bose's government the Commission, though no reasons were cited. Several ceased to be an effective political entity.A large proportion documents which could perhaps provide lead to the of the INA troops surrendered under Lt Col Logan than disappearance of Bose have not been declassified by the when Rangoon fell. Government of India; the reason cited being publication of these documents could sour India's relations with some The remaining troops retreated with Bose towards British othercountries.Recently Netaji's grand nephew Malaya or made Thailand . Japan's surrender at the end of in his book "His Majesty's Opponent" claimed that the the war also led to the eventual surrender of the Indian founder of the Indian Independence League in Tokyo, Rama National Army, when the troops of the British Indian Army Murti had hidden a portion of alleged cremated remains of were repatriated to India and some tried for treason .Earlier, Bose as "extra precaution" in his house and secondly, this in a speech broadcast by the Azad Hind Radio from portion has been brought to India in 2006 and Prime Singapore on July 6, 1944, Bose addressed Mahatma Minister was informed about the development.But Prime Gandhi as the "Father of the Nation" and asked for his Ministers Office has refused the word issued a statement blessings and good wishes for the war he was fighting. This "As per records, no such information exists. Bose was was the first time that was referred to by Posthumous recognition Bharat Ratna India 's highest this appellation subhas Chandra Bose. His famous slogan civilian award in 1992, but it was later withdrawn in was ―Give me blood and I will give you freedom. His other response to a Supreme Court directive following a Public famous quote was, meaning "On to Delhi !" This was the Interest Litigation filed in the Court against the call he used to give the INA armies to motivate them, or, "posthumous" nature of the award.The Award Committee "Glory to India!" was another slogan used by him and later could not give conclusive evidence on Bose's death and thus adopted by the Government of India and the Indian Armed the "posthumous" award was invalidated. No headway was Forces. Other slogan coined by him was Ittehad, Etemad, made on his issue however Subhas Chandra Bose on and Qurbani. INA also used the slogan Inquilab Zindabad, Bharat Ratna for Subhash portrait hangs in the Indian which was coined by Hasrat Mohani Subhas Chandra Bose Parliament" statue of him has been erected in front of the .Bose is alleged to have died in a plane crash Taiwan, on 18 West Bengal Legislative Assembly.Bose believed that the August 1945 while en route to Tokyo and possibly then the Bhagavad Gita was a great source of inspiration for the Soviet Union. The Imperial Japanese Army Air Force struggle against the British Swami Vivekananda's teachings Bomber Mitsubishi Ki-21 he was travelling on had engine on universalism, his nationalist thoughts and his emphasis trouble and when it crashed Bose was badly burned, dying on social service and reform had all inspired Subhas in a local hospital four hours later. Chandra Bose from his very young days. The fresh interpretation of the India's ancient scriptures had appealed His body was then cremated, and a Buddhist memorial immensely to him Subhas Chandra Bose Many scholars service was held at Nishi Honganji Temple in Taihoku. His believe that Hindu spirituality formed the essential part of ashes were taken to Japan and interred at the Captain his political and social thought through his adult life, Yoshida Taneyoshi, and a British spy known as "Agent although there was no sense of bigotry ororthodoxy in it 1189.The absence of his body has led to many theories Subhas who called himself a socialist, believed that being put forward concerning his possible survival. One socialism in India its origins to Swami Vivekananda. such claim is that Bose actually died later in Siberia , while in Soviet captivity. Several committees have been set up by As historian Leonard Gordan explains "Inner religious the government of India to probe into this matter. In May explorations continued to be a partof his adult life. This set 1956, a four-man Indian team known as the Shah Nawaz him apart from the slowly growing number of atheistic Committee visited Japan to probe the circumsta- nces of socialists and communists who dotted the Indian landscape. Bose's alleged death. However, the Indian government did Bose's correspondence prior to 1939 reflects his deep not then request assistance from the government of Taiwan disapproval of the racist practices of, and annulment of in the matter, citing their lack of diplomatic relations with democratic institutions in Nazi Germany. However, he Taiwan . However, the Inquiry Commission under Justice expressed admiration for the authoritarian methods which he Mukherjee, which investigated the Bose disappearance saw in Italy and Germany during the 1930s, and thought mystery in the period 1999-2005, did approach the they could be usedin building an independent India Bose Taiwanese government, and obtained information from the had clearly expressed his belief that democracy was the best Taiwan government that no plane carrying Bose had ever option for India.The pro-Bose thinkers believe that his crashed in Taipei, and there was, in fact, no plane crash in authoritarian control of the Azad Hind was based on Taiwan on 18 August 1945 as alleged.Subhas Chandra Bose political pragmatism and a post-colonial recovery doctrine Mukherjee Commission also received a report originating rather than any anti-democratic belief.However, during the from the U.S. Department of State supporting the claim of war Bose seems to have decided that no democratic system the Taiwan Government that no such air crash took place could be adequate to overcome India's poverty and social during that time frame. Subhas Chandra Bose the Justice inequalities, and he wrote that an authoritarian state, Similar Mukherjee Commission of Inquiry submitted its report to to that of Soviet Russia would be needed for the process of the Indian government on November 8, 2005. The report national re-building. Accordingly some suggest that Bose's was tabled in Parliament on May 17, 2006. The probe said alliance with the Axis during the war was based on more in its report that as Bose did not die in the plane crash and than just pragmatism, and that Bose was a militant that the ashes at the Renkoji Temple are not his. nationalist, though not a Nazi nor a Fascist, for he supported www.theinternationaljournal.org > RJSSM: Volume: 01, Number: 11, Mar-2012 Page 16 empowerment of women, secularism and other democratic He had paid several visits to Germany and Italy in the mid- ideas; alternatively, others consider he might have been 1930s and studied the situation in both the countries closely. using populist methods immobilization common to many As far back as in 1936 he wrote: "When I first visited post-colonial leaders Bose never liked the Nazis but when Germany in 1933, I had hopes that the new German nation he failed to contact the Russians for help in Afghanistan he which had risen to consciousness of its national strength and approached the Germans and Italians for help. His comment self-respect, would instinctively feel a deep sympathy for was that if he had to shake hands with the devil for India 's other nations struggling in the same direction. Today I regret independence he would do that on August 23, 2007, that I have to return to India , with the conviction that the Japanese Prime Minister Shinzo Abe visited the Subhas new nationalism of Germany is not only narrow and selfish Chandra Bose memorial hall in but arrogant. ―It may be mentioned that Bose's attempt to Kolkata.Subhas Chandra Bose Abe said to Bose's family. induct support of the Axis powers was no more than a ―The Japanese are deeply moved by Bose's strong will to response to Britain 's own war effort, as it had introduced have led the Indian independence from British rule. Netaji is troops and weapons from other foreign countries in India . It a much respected name in Japan . Subhas Chandra Bose was only natural that the nationalists fighting the British However in India many believe, including Infosys would have the similar right to seek foreign support against Technologies founder-chairman NR Narayana Murthy that the British imperialist intrusion. Netaji was not given the due respect that he deserved. According to him, India would have prospered as the second But, he insisted, the emancipation of India must be the work largest economy in the world by now had Netaji been a part primarily of the Indians themselves. As far as Britain was of the post independence nation building. Bose was concerned he did not conceal his rules of the game. He was convinced that the internal politics of a country or the form a zero-sum player and, therefore, bluntly stated, ‗I am an of its state, do not wholly condition the foreign policy extremist and my principle is - all or none‘. He would approach of any country. The policy may have some sacrifice everything so as to attain the objective of India 's ideological moorings, but they did not rob a country of the independence. When Germany attacked Soviet Russia in flexibility necessary for meeting contingencies of a serious June 1941 he protested, as far as he could, while remaining nature. Bose considered the conflict in Europe since the in Germany and getting assistance from the German First World War was basically between the haves and the government. When he met Hitler in 1942, he requested the have-nots, depending on the possession or denial of latter to delete his racial remarks on Indians in his book, territorial gains. In the former category would be, among "Mein Kampf".He had no sympathy for Nazi philosophy others, Britain and France, whereas Germany and Italy and when Italian fascism took to the imperialist path by would pass for have-nots and hence their impatience to attacking Abyssinia in 1935, he lost interest in fascism as a change the status quo. social philosophy.Similarly; his association with Japan during1943-45 periods had nothing to do with his sympathy One set of powers were keen to preserve their imperial for Japan's imperial ambitions. As the Congress President he possessions, while the other wanted to carve out a more had sent a medical mission to China in 1938 as a token of privileged place for them. Therefore, there was nothing his solidarity with the Chinese people's cause. fundamentally ethical or ideological involved in the attitude of the respective groups of countries. It was, in fact, the However, he accepted the fact that in 1941-42 it was Japan latest version of old style power politics. He himself saw his which had completely destroyed the imperialistic structures leanings towards the Axis alliance as a hazardous mission of Britain , France , the Netherlands and the USA in East and his sole object was the expulsion of the British from and Southeast Asia . This had enhanced the possibility for India ; in this case, if he had any triumph he would share the freedom of the nations of these regions. Everybody that with Gandhiji and the Indian people. But Bose was not admits today that this Japanese action was the single most an Axis apologist and was not certainly soft toward the important contributory factor towards the independence of expansionist maneuvers of the Axis powers. It is an the countries of the area, including that of India . Lord objective fact of contemporary history that Germany , by Pethick-Lawrence, who was the Secretary of State for India weakening Britain both economically and militarily in in the Labour government, installed in 1945, said. It was in Europe and Japan , by destroying western imperialist control the events during and arising out of the war that Asia in Asia had furthered the cause of India 's freedom, which secured her release from European domination". On the was attained within two years after the end of the war. This other hand, Japan declared war in December 1941 and with was inconceivable before the start of the second world war a lightning speed conquered most of East and Southeast in 1939, when the then Viceroy of India , Lord Linlithgow Asia but its army stopped at the Indo-Burmese border. had expressed the hope that Britain would continue effective Everybody knew then, including the Japanese, that if they rule over India for at least thirty years more. While calling had advanced into Assam and Bengal in 1942, they would himself "a full-blooded socialist", he considered the have captured those areas without any serious resistance. independence of India a serious matter thus requiring, if But they decided not to do so because India was too big a necessary, certain flexibility in regard to foreign country and too far away from Japan to control and to rule. policy. This must have been in the calculation of Bose, when he Some of Bose's critics explained his desire to seek sought the assistance of Germany and Japan.Bose's legacy. assistance from Germany and Italy as something quite In the book the Last Years of British India, Michael natural since he himself was a fascist. This was not correct. Edwardes, the distinguished British historian of the Raj, www.theinternationaljournal.org > RJSSM: Volume: 01, Number: 11, Mar-2012 Page 17 wrote of Bose: ―Only one outstanding personality of India It was brought to Calcutta on the 17th July, 1980. It has now took a different and violent path, and in a sense India owes been ceremonially installed at the Red Fort on July 7, more to him than to any other man". After reviewing INA 1981." parade at Singapore on July the 5th, 1943. His concluding words were:"I have said that today is the proudest day of my References: life. For an enslaved people, there can be no greater pride, no higher honour, than to be the first Soldier in the Army of 1. Modern Indian History Dr.S.P.Agarwal. Liberation. But this honour carries with it a corresponding 2. Subhas Chandra Bose 1897-1945. responsibility and I am deeply conscious of it.I assure you 3. Modern Indian History Dr.S.P.Agarwal. that I shall be with you in darkness and in sunshine, in 4. "Search anchor" Eminent Indians who was who, 1900- sorrow and in joy, in suffering and in victory. For the 1980, also annual diary of events.pp.55. present, I can offer you nothing except hunger, thirst, 5. "Search anchor" The Talwars of Pathan land and subhas privation, forced marches and death. But if you follow me in Chandra's great escape. life and in death, as I am confident you will, I shall lead you 6. "Search anchor" Subhas Chandra Bose: Netaji's passage to victory and freedom.It does not matter who among us will to m[m]ortality live to see India free. It is enough that India shall be free and 7. James, L (1997) Raj, the Making and Unmaking of that we shall give our all to make her free. May God now British India, Abacus, London P554. bless our Army and grant us victory in the coming 8."Hitler's secret Indian army" by Mike Thomson, BBC fight."After the atomic attack on Hiroshima and Nagasaki , News, 23 September 2004. Japan surrendered in August 1945 and so did the INA. It 9. Subhash Chandra Bose in Nazi Germany . looked apparently like an unmitigated disaster, but Bose 10. Hauner, M (1981) India in Axis Strategy: Germany , confidently predicted that once his activities and those of the Japan , and Indian Nationalists in the Second World War, INA were widely known in India after the end of the war, Klett-Cotta, Stuttgart P28-29. then not only the civilian population but also the British 11. Azad Hind: writings and speeches, 1941-1943 by Indian armed forces wold rise in revolt against the British Subhas Chandra Bose. rule. This is exactly what happened in late 1945 and early 12. Modern Indian History Dr.S.P.Agarwal. 1946.When it was known that the INA was not a "puppet 13. Iqbal Singh The Andaman Story p249. army" of Japan but a full-fledged nationalist force fighting 14. C.A. Bayly & T. Harper Forgotten Armies. The fall of for India's independence, which manifested a unique British Asia 1941-5 ( London ) 2004 p325. nationalist spirit of unity among all sections of Indian 15."Father of Our Nation" (Address to Mahatma Gandhi people,the whole Indianation was aroused.Not only youth, over the Rangoon Radio on 6 July 1944) The Essential students,workers and peasants but also a section of the Writings of Netaji Subhas Chandra Bose Edited by Sisir K Indian armed forces revolted.Netaji contributions in the Bose & Sugata Bose ( Delhi : Oxford University Press) making of India are unique.Netaji inspired not only the 1997 pp301-302. Indians as a whole, but also the nationals of those countries 16. Correspondence and Selected Documents, 1930-1942 / who were still not independent. The actions of the Royal S. C. Bose; edited by Ravindra Kumar, Inter-India, New Indian Navy and of certain personnel of all the three Delhi , 1992. Military Services at Bombay , Karachi and other places in 17. James, L (1997) Raj, the Making and Unmaking of the name of Netaji were like the last straw which broke the British India, Abacus, London . back of the mighty British Colonial Empire on whom the 18. No crash at Taipei that killed Netaji: Taiwan govt. Sun never used to set. The following words are inscribed on Outlook India . a brass shield in front of the chair which is symbolic to the 19. Netaji case: US back Taiwan govt. Times of India. 19 sovereignty of the Republic of India , and also add to September 2005. enthusiasm of the Armed Forces of India.The Chair rests in 20. The Indian Express ( New Delhi ). August 5, 1997. a glass case and is a symbol of pride as well as national 21. Li Narangoa, R.B.Cribb, Imperial Japan and National heritage. "Netaji Subhash Chandra Bose in order to free Identities in Asia , 1895-1945, Published Routledge, 2003. India from the shackles of British imperialism organized the 22., Leander Worth, Narayan Gopal Jog, Azad Hind Government from outside the country on Subbier Appadurai Ayer, Beacon Across Asia: A Biography October 21, 1943. Netaji set up the Provisional Government of Subhas Chandra Bose, published by Orient Blackswan, of Independent India and transferred it‘s headquarter at 1996. Rangoon on January 7, 1944.On the 5th April, 1944, the 23. Nirad C. Chaudhuri, Thy Hand, Great Anarch! India , "Azad Hind Bank" was inaugurated at Rangoon . It was on 1921-1952, published by Chatto & Windus, 1987. this occasion that Netaji used this chair for the first 24. P. R. Bhuyan, Swami Vivekananda, Published by time.Later the chair was kept at the residence of Netaji at Atlantic Publishers & Distributors, 2003. 51, University Avenue , Rangoon , where the office of the 25. Leonard A. Gordon, Brothers against the Raj: A Azad Hind was also housed. Afterwords, at the time of Biography of Indian Nationalist Leaders Sarat and Subhas leaving Burma , the British handed over the chair to the Chandra Bose, published by Columbia University Press, family of Mr.A.T.Ahuja, a well-known businessman of 1990. Rangoon . The chair was officially handed over to the 26. Dr. Thierfelder of the Deutsche Academie, Kurhaus Government of India in January 1979. Hochland, Badgastein, 25 March 1936 "Today I regret that I have to return to India with the conviction that the new nationalism of Germany is not only Narrow and selfish but www.theinternationaljournal.org > RJSSM: Volume: 01, Number: 11, Mar-2012 Page 18 arrogant." The Essential Writings of Netaji Subhas Chandra Bose edited by Sisir K. Bose & Sugata Bose ( Delhi : Oxford University Press) 1997 p155. 27. Roy, Dr. R.C. 2004. Social, Economic and Political Philosophy of Netaji Subhas Chandra Bose.Pp.7-8. 28. The Essential Writings of Netaji Subhas Chandra Bose Edited by Sisir K. Bose & Sugata Bose997 pp319-20. 29. Burma : The Forgotten War Jon Latimer, London : John Murray, 2004. 30. The Indian Struggle, 1920-1942Subhas Chandra Bose; edited by Sisir Kumar Bose and Sugata Bose, Oxford University Press, Calcutta , 1997. 31. Brothers against the Raj—A biography of Indian Nationalists Sarat and Subhas Chandra Bose Leonard A. Gordon, Princeton University Press, 1990. 32. Lost hero: Quartet Books, London ; 1982. 33. Modern Indian History Dr.S.P.Agarwal, pp-336. 34. James, L 1997 Raj, the Making and Unmaking of British India, Abacus, London P575. 35. Indian Pilgrim: an unfinished autobiography Subhas Chandra Bose; edited by Sisir Kumar Bose and Sugata Bose, Oxford University Press, Calcutta , 1997.

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Globalization of Education: Recognition and Challenges

C.L.V. Sivakumar, Senior Grade Assistant Professor, VIT Business School, VIT University, Vellore – 632 014 (TN)

A.V.V.S. Subbalakshmi, Project Officer, CSRD & RS, VIT University, Vellore – 632 014 (TN)

 advantage, it is imperative that we continue to produce a Abstract: critical mass of highly skilled manpower at an accelerated This paper is based on the published Knowledge and science pace. An enabling academic and economic setting is a key are universal activities. Every society, however, has its own factor determining the fate of our nation in the wake of the problems and its own challenges. An essential feature of knowledge sector boom. This paper reviews the prevailing knowledge is that it requires human capital for both its policy environment in this context to evaluate its efficacy in production and its application. Globalization is no more a ensuring that India remains ahead of the curve in the recent phenomenon in the world's socio-economic system. knowledge sector which has been growing exponentially in The impact of globalization has been uneven and responses recent years. to it are varied in terms of its positive and negative dimensions the world over. Education is an important GLOBALIZATION investment in building human capital that is a driver for technological innovation and economic growth. It is only As it is known globalization, no doubt, promises dramatic through improving the educational status of a society that and rewarding change to the higher education systems of the the multi-faceted development of its people can be ensured. developed countries. Where as for the developing and the In the post-industrialized world, the advanced countries used underdeveloped countries, where the system is facing the to derive the major proportion of their national income not scarcity of resource, it threatens the stability needed to build from agriculture and industry but from the service sector. In the well performing system. Developing countries often any case, it is difficult to assess not only the nature and have to adjust willingly or unwillingly both to the dimensions of globalization, but also what it means to the quickening pulse of international change, and accordingly, field of education. No doubt, Higher Education has attained reform on several fronts simultaneously, which may not be a key position in the knowledge society under globalised possible under the given resource status of higher education. economy. However, the challenges faced are immense and far-reaching. Its impact on the clientele viz., Individuals, Institutions, Systems and Societies is not only not clear but GLOBALIZATION AND HIGHER EDUCATION also not comprehendible at this moment unless it is viewed in the context of various other factors that are According to the results of a special survey 'Higher simultaneously operating on the higher education system. Education: Free degrees to fly‟, higher education is already a global business. The days when higher education was a Key Words: Knowledge – Human Capital – Globalization – matter of national policy and government regulation are Higher Education – Industrialization – Challenges – rapidly fading. Higher Education provisioning is now Technological Innovation globalised and in many ways, a commercialized affair and the way that the State had in the goings on is vastly INTRODUCTION diminished. According to Andreas Schleicher of OECD, a Paris based „Think Tank‟ the numbers studying abroad were National competitiveness today depends on the capacity to statistically negligible two decades ago. produce and absorb knowledge. The higher education sector plays an important role in the production, distribution and According to the International Finance Corporation (IFC), absorption of knowledge. Therefore, an expanded higher the growth is now soaring: 2 million university students- education sector has become a necessary condition for approaching 2% of the world's total of around 100 million increasing national income and improving global studying outside their home country in 2003 (cited in Higher competitiveness. India is well known for its large pool of Education in the same article in Economist). Since the late technical manpower, a fair proportion of which finds 1990s the higher education market is growing by 7 per cent employment in developed countries, especially in the West. a year. As a happy sequel to the story, India has recently witnessed a big boom in the BPO/KPO sector. In order to sustain this The Economist Survey on higher education further indicates trend, and to ensure that India does not throw away this key that annual fee income alone is estimated at $ 30 billion. While private profit seeking companies have entered the education business, even government-controlled universities www.theinternationaljournal.org > RJSSM: Volume: 01, Number: 11, Mar-2012 Page 20 are seeking independence from governmental authority. times Chinas (1325). India, therefore, does have an However, many countries including India continue to overwhelming lead in software. Further, leading US IT control the fee structure of their universities causing firms has their CMM Level 5 certification in India, rather financial stress to foreign students, who are generally made than in the US. The High Technology leadership of the US to pay much higher fees than local students. This has is now coming under threat from India. resulted in many universities openly soliciting entry of foreign students. To facilitate this process they have even In a paper published by Richard Freeman of Harvard tailored their courses to international requirements besides University quoted by Sheshabalaya, the employment at appointing agents abroad and publicizing the offers widely General Electric Company‟s Global Research Headquarters in the media. in New York is being surpassed by their own facility, the Welch Centre at Bangalore. Similarly, IBM cut its jobs in HIGHER EDUCATION - INDIAN PERSPECTIVE the US and Europe but recruited more in India. In another surprise move, in just 2 years, the Indian R&D Centres of India has significant advantages in the 21st century Bell Laboratories, the world‟s largest research organization, knowledge race. It has a large higher education sector, the filed more patents than the US Labs. In August 2006, India third largest in the world (in student numbers) after China announced 1312 applications for drug patents, a record and the United States. It uses English as a primary language second only to the US. It is 25 per cent higher than Germany of higher education and research. It has a long academic which is the third in ranking, and ahead of Britain, Japan, tradition. Academic freedom is respected. There are a small etc. India, is therefore, not just at the lower end of the number of high quality institutions, departments, and centres software and research business, but is now in a leading that can form the basis of quality sector in higher education position of the scientific and financial research revolution. (Bundy, 2004). The fact that the States, rather than the This is also confirmed by the massive market value of IT Central Government, exercise major responsibility for firms on US stock markets which indicate that the higher education creates a rather cumbersome structure, but investment community endorses this view. According to the system allows for a variety of policies and approaches. current thinking an estimated $356 billion worth of global India‟s higher education policy of the 1950s which financial services will relocate to India in the next 5 years, envisaged schools of excellence, especially in technology producing a cost saving of $ 130 billion for top 100 financial and sciences, has finally paid off rich dividends. The service firms. From R&D and scientific research, Indian creation of IITs, IIMs, Schools of Science, Schools of Law, commercial research market has further widened to financial a large number of advanced training and research and economic research. It has been said that Wall Street is institutions have now been well and widely accepted. also outsourcing white-collar jobs to India as a reaction to the local scandals, which erupted in 2002 and 2003. Already McKinsey & Co. and AT Kearney Inc., have shifted bulk of Doctors trained in India have been the backbone of the their research to India. J.P.Morgan, Moran Stanley, British Medical Service for many decades. Indian scientists Deutsche Bank, etc. are all considering the same. have found positions of importance in research laboratories of the US and other developed countries. But it was the IIT WORLD TRADE ORGANIZATION (WTO) AND engineers who have finally struck gold during the dot.com HIGHER EDUCATION boom of the 1990s and brought the final recognition and testimony for Indian competence. Of about 140,000 Fundamental to understanding the future role of WTO in graduates of IIT so far, roughly 40,000 have gone to the US. education is the question: is higher education a marketable They have been given the credit of creating 150,000 jobs commodity like an FMCG product or is it a service like and $80 billion in market capitalization. water or electric supply? Is higher education a commercial service or a public good? It is said that when a new IT company is launched, investors inquire if there is an Indian in it. In the second meeting of While universities and the academic community in general IIT Alumni in the US, prominent persons like Jack Welch of would like higher education to be viewed as a public good, GE, Larry Summers, President of Harvard University, and the prevailing argument in the WTO Secretariat is that Tom Friedman, the globalization columnist of New York higher education is akin to „private consumption‟ directly Times were present. The states of Virginia and Maryland benefiting the consumer by way of higher income. In April declared the month of May 2005 as IIT – Indian American 2002, Universities from Latin American countries, Portugal Heritage Month. Further, 55 US Members of the House of and Spain adopted a Declaration at the III Summit of Iberian Representatives co-sponsored Resolution 227 honouring and Latin American Universities in Porto Alegre, Brazil in „the economic innovation attributable to graduates of the which they declared education as a „public good‟ and Indian Institute of Technology‟. requested their governments not to make any commitment on this issue within the framework of WTO. However, According to NASSCOM, India had a total of 650,000 IT overtime the perception of higher education as a commercial professionals in 2002 and by February 2005, they were to service is gaining acceptance. rise to 813,500. According to Brainbench Inc., India ranked behind the US in the number of certified software The WTO Secretariat in September 1998 has mentioned that professionals The Indian figure was 30 times larger than with the rapid changes in higher education „education also Europe‟s top country Germany (4802) and one hundred exists as a private consumption item with a price determined www.theinternationaljournal.org > RJSSM: Volume: 01, Number: 11, Mar-2012 Page 21 freely by the providing institutions‟. As a result, they have stated that more and more paying students are attracted to Regulations are needed more at the national level to monitor these institutions including foreign students. the growth of institutions, both private and cross-border. In some countries, regulating private universities is a three- WTO has also adopted the Principle of Most Favoured staged process – letters of interim authority which give Nation. This WTO rule, which is binding on all members, temporary recognition followed by registration which will have its implications for educational services. The recognizes the existence of the university, and finally full Principle of the Most Favoured Nation implies that each accreditation. This seems to be a good process and party „shall accord immediate and unconditionally to procedure. Therefore, it is important to review the process of services and service providers of any other party, treatment granting permission to open and operate private and no less favourable than it accords to the service and service transnational institutions. There have been instances of providers of any other country.‟ This means that, if a fraudulent practices by some of these institutions and public country allows a foreign institution of a country to provide authorities did not act strongly and promptly. Governments distance education services, all other countries can request in some countries insist that only accredited institutions in to have the same treatment. Similarly, if subsidy is given to the home country will be permitted to open branch one, others can request the same advantage. campuses in the host country. Therefore, accreditation in the home country becomes a necessary condition for cross- Another important issue of GATS and WTO, which is border collaboration or for the starting of a foreign branch in fundamental to its principles, is the notion of National another country. Treatment. This implies an obligation to treat both foreign and domestic service suppliers in the same manner. It has RECOGNITION OF HIGHER EDUCATION UNDER been contended that this would imply, if implemented GLOBALIZATION rigidly, that a foreign educational institution of, say, distance education, can demand subsidies similar to those received The term, „Recognition‟ in the higher education context by public universities in an individual country. relates to reciprocal understanding between two or more parties to accept the awards and qualifications of each other STRATEGIES FOR DEVELOPMENT OF HIGHER as equal or substantially equal to those of their own for a EDUCATION variety of academic and professional purposes. The mutual recognition may be accorded to short courses for credit Universities and institutions of higher education transfer or to the institution as a whole covering the entire traditionally were public institutions. The state invested range of its offering such as bachelors or masters degrees. resources to set up universities and was responsible for As mentioned earlier, ultimately, in practice, all such funding and controlling their activities. When governments recognition narrows down to the recognition of the were in financial difficulty in the 1980s, the state could not Qualifications. When once quality education is ensured and extend adequate funding to cope with the increasing demand a set of elements that make the quality education as an for higher education. This was an era of low state funding international education are implemented, recognition of the and slow expansion of higher education. This encouraged qualifications across the borders become easier. This can market operations in higher education that helped the however be hastened and ensured by the National External process of globalization of higher education. The options Quality Assurance agencies seeking mutual recognition open to governments in the context of globalization were: among their counter parts through appropriate modalities (a) to continue the policy of providing higher education like what is being done by the signatories of the Washington through public institutions only, leading to limited access; Accord by agreeing to certain rigorous conditions for (b) to expand access to higher education through public and compliance. private domestic providers only; or, (c) to expand access through domestic public and private providers as well as Mutual Recognition (MR) of the NEQA agencies is the cross-border providers. Given the fiscal state of the necessary first step towards the ultimate recognition of the economies of the developing world, it was not possible to qualifications or any other academic outcomes globally. expand access through public institutions. Therefore, the efforts to develop the appropriate protocol should be undertaken for evolving the mutual recognition Therefore, most countries opted for option (b), and this among NEQA agencies of the region. The international encouraged market operation in higher education and organization like the INQAAHE or its regional unit is the multiple providers. The choice of this option promoted the best to initiate the work. The regional cooperative bodies private sector in higher education. With the expansion of the like UMAP and UCTS, SEAMEO RIHED, AUN, AUAP, private sector and market operations in higher education, AND ASAHIL, etc., can also play an important role in cross-border higher education became a new and viable promoting mutual recognition among the NEQA bodies of option. Many countries reformed their rules and regulations the region. to encourage transnational providers. All of these providers are operating simultaneously in many of the developing Even if MR of quality assurance agencies is construed as countries. Government, which enjoyed a monopoly in the accreditation of accrediting bodies, it has to be done using sector, needs to play more of a facilitative role than simply a suitable protocols and formalized. Such stipulations can financing and controlling one. This is where the role of the include the use of common criteria, policies and procedures state becomes important. for accrediting institutions/programs and the agencies www.theinternationaljournal.org > RJSSM: Volume: 01, Number: 11, Mar-2012 Page 22 should agree for mutual monitoring and for information • the acts and statutes of universities and state education exchange through appropriate modalities. A beginning has acts. already been made in this regard in the American Continent and in Europe with success and their experiences can be CONCLUDING SUGGESTIONS adapted to the Asia-pacific region as well. Mutual Recognition of National External Quality Assurance • Higher education shall be equally accessible to all on the agencies of the region can only be a workable answer to the basis of merit keeping emerging needs for the recognition of qualifications from a in mind Article 26.1 of the Universal Declaration of particular country by the others. Human Rights. • Higher Education should uphold education‟s role of CHALLENGES AHEAD service to society. • Quality of education is a multi-dimensional concept, which Two of the strategic and long-term questions that should embrace all Globalization poses to the higher education system are: (i) functions and activities, that is, teaching, academic „Commodification‟ - the use of knowledge as a purchasable programs, research and and saleable good. (ii) „Alternative providers‟ with profit scholarship, staffing, students, infrastructure, and motive of higher education‟s landscape that are engaged in academic environment. the transmission of knowledge using Information and • Higher education institutions should be committed to Communication Technologies. Displacing and reinterpreting transparent internal and knowledge raise fundamental questions to the Universities, external evaluation conducted openly by independent more so, in the area of autonomy and academic freedom. specialists. They also pose questions with regard to the very objectives • The potential of Information Communication Technology of Higher Education system in terms of its ethical obligation (ICT) should be fully to make knowledge freely available to those who seek for it. utilized. Equitable access to these should be assured The apprehension is, that the globalization, may herald a through international basic change in the very role that the Universities play in the cooperation and support to countries that lack capabilities society. Defining universities simply as „service providers‟ to acquire such tools. and changing their responsibility to the society for the • Higher education should be considered a public service. shorter gains, may in the long run, ruin the very objectives • While diverse sources of funding are necessary, public with which the universities were established. support for higher education and research remains essential to ensure The dynamics of Globalization is no doubt a challenge as balanced achievement of its well as an opportunity. Higher education today, educational and social missions. Globalization or no Globalization, is no more constrained by • Partnership should be forged between higher educational geographical boundaries. Innovative forms of translocation institutions and and transnational education have become a possibility. Multi responsible state authorities. campus institutions, "franchised institutions learning centers • The international dimension of higher education is an providing university degree, off campus education, distance inherent part of quality. learning, internet based distance education, virtual Networking which has emerged as a major means of action universities merging of part studies to combine into a whole should be based on sharing, solidarity, and equality for obtaining national as well as international degrees are among partners. only few models as examples. As far as higher education is Honestly, these suggestive remarks envisage the withdrawal concerned, an enthused and well-informed student has of state from its social obligations once for all. Thus, each umpteen choices, for the first time in the history of country should decide about the nature and extent of education, to access for a "global marketplace". Yet, the globalization that can be constructively introduced in their matter of the fact is, this access remains only as availability. socio-economic and educational systems. While it is Who can reach to it and how? What alternative provisions difficult to resist the temptation of falling in line with the are made for those who cannot afford to reach is the crux of international community, it is necessary that while doing so, the matter. the Paramount of national interests should be kept in view. This is more so in the field of education, which is intimately The impact of globalization and WTO & GATS on the concerned with the development of human capital. Higher Education would be Ultimately, any hasty involvement in the global educational Multidimensional, it would be on: market can end up in harming the vital interests of students, and particularly of poor and downtrodden for generations to • the higher education policy, programs and its come. implementation; CONCLUSION • the very system of higher education; The needs of higher education cannot be met by the • the structure, functions and structure-function relations; Government alone. It needs the participation of the • the accreditation and assessment of higher education; Government, the private providers and perhaps selectively • the role of regulatory bodies; participation of foreign universities. We have to free • the individual institutional policy and programs; and ourselves from the mindset and take a realistic attitude, finally on taking into consideration the fact that a major revolution is www.theinternationaljournal.org > RJSSM: Volume: 01, Number: 11, Mar-2012 Page 23 taking place in higher education in the world. Considering the conditions of India, the writer is of the view that the true patriots are those who create opportunities for education. As regards Tamil Nadu, suggestion was made. If you take India, the Government at the Centre has constituted a number of committees and commissions for higher education. Dr. Radhakrishnan Commission from 1947 to 1948; Gothari Commission from 1964 to 1966; National Education Policy in 1986; and recently, National Knowledge Commission and Prof. Yashpal Committee. Particularly, Tamil Nadu has not taken a comprehensive view of higher education through an appropriate committee since independence. The neighboring states have done the exercise. It is necessary for Tamil Nadu to examine comprehensively the opportunities available for higher education and research; the opportunities needed to be created and policy decisions to be taken for the future. It is not the responsibility of the party in power alone. Every political party worth the name must accept responsibility in this direction.

REFERENCES

1. Bhushan, S. (2005): “Foreign universities in India: market-driven new directions”. In: International Higher Education, 41, 4-5. 2. Frazer, M. Recognition (1996): The Role of Assessment Agencies. Higher Education in Europe, vol.xxi no.4. 3. Guy Neave, “Globalization: Threat, Opportunity or Both”, report presented to the IAU Administrative Board Meeting at its Mexico City meeting in November 2001). 4. Knight, J. Internationalization of Higher Education: In Quality and internationalization in Higher Education. IMHE Publication.1999 5. Lenox MF, Walker Ml (2003). Information Literacy in the Educational Process. Educ. Forum, 57(2): 312-324. 6. Sirat, M. (2006): “Malaysia”. In: UNESCO and RIHED (Eds.), Higher education in South-East Asia, pp. 101-136, Bangkok: UNESCO.

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Employee Skill matrix mapping for Fortech Industries, India – A case study Prof. Sudhakar, Assistant Professor, Sri Krishna College of Technology, Coimbatore-42

Dr. Sudharani Ravindran. D, Professor- Marketing Area, PSG Institute of Management, Coimbatore-4.

I.INTRODUCTION workers? What type of skills, they require? Is there any Giriswamy runs a successful small scale factory pump sets method to assess their skill sets? How to evaluate the for domestic and industrial use. He has been in this business existing skills of the workers? Do they have adequate skill since his father ventured into manufacturing pumps two sets? Where they are lacking? How to go about it? Such decade ago. He spent time at his father’s factory after school thoughts ran in Mr. Giriswamy mind. He was a little hours learning about the business of pumps. Machines uncertain and confused about the new approach to be fascinated him & he graduated in mechanical engineering considered as he cannot afford an apprentice training facility from nearby local college despite scoring good marks as he or a full fledged training and development center as it wanted to be close to his unit started by his father. Today he involves a big investment for a firm in small scale sector. is threshold of growth and manufactures a wide range of Being an entrepreneur he was confident of sorting out this pumps .His organization though small in size has good matter and decided to use his network. One of his friends orders from vendors in India and aboard. He is aware that suggested Mr. Aghoram an MBA graduate and a researcher Indian pump industry is well established setup producing in local university who occasionally takes up consulting nearly12 lakhs pumps every year. Though there are no assignment. Mr. Giriswamy immediately got in touch with established figures, the market is believed to be worth about him. After preliminary talks with Mr. Giriswamy and his Rs 2000 crore. The Indian pump manufacturers are known core team he suggested a skill matrix. He made a for their quality standards. Most of them have ISO 9000 presentation to key employees. He also circulated a note on certification. Some of the notable indigenous pump this which is discussed in the coming paragraphs. technologies include Sodium coolant and primary coolant pumps for nuclear power stations, concrete volute and large Skill matrix is a tool to assess training needs. It is a sized vertical turbine pumps for irrigation and thermal table that shows skills of individuals in a team and any gaps power stations.. between the skills of employees and the job roles they have. It is also known as a competency framework. If behind the His firm currently has a turnover of Rs 2 crores. As maximum level, retrain and evaluate. Skill matrix is nothing a person well versed in pump manufacturing, he knows the but the competencies you want to rate your employees. They nuts and bolts of assembling pumps and also skilled in include like communication, leadership, job knowledge, repairing it. Whenever he finds time, he spends it at shop organizational culture, self development, critical thinking, floor assisting and guiding newcomers. His workers are awe decision making, initiations etc. One has to provide ratings about it and feel that he is one among us. His unit Foretech for each competency starting from 1 to 10 (low to high).This Industries is known for not only producing pump sets but competency helps the organization to understand the areas also known for quality repairs and services of pumps of all of improvement for the employee and also identifies the makes. A separate division was started in year 2000 to take training needs required for the employee. This helps and care of repairs. This division has done well earning large encourages employee to improve along with team spirit. revenue to his company and he floated Foretech Pump This skill matrix is one of the tools to understand whether services as a separate unit for repairs in the year 2007. employee is able to think out of box or not. Further a skills Currently he is the Chairman cum Managing director of two matrix is a very effective tool to assess the training needs of firms namely Foretech Industries and Foretech Pump any organisation; it is also a great guide as to the suitability services. Both the firms are labour intensive and skill based. of individuals for: He is aware of this and developed training program in association with ITI College. The interested students who  Additional tasks have completed their ITI were given apprentice training.  Promotion (to a higher role) However being a small industrial unit training cost was  Team/group participation high. His technician found it difficult to provide on the job  Suitability for a newly created position training & same time concentrate on their work. The skills matrix can also be used as a discussion tool The trade off was difficult for them and mistakes for performance reviews, where the employees training can by apprentice & material cost was a burden to the firm. The be assessed, reviewed and mapped out It can also be used to programme was later discontinued in the year 2010, due to assess the level of skills attained and may assist in the these problems. He decided to concentrate on developing salary review of the individual compared to other the skills of his existing workers. How to identify skills of employees. www.theinternationaljournal.org > RJSSM: Volume: 01, Number: 11, Mar-2012 Page 25

The use of a skill matrix enables an organization to: TABLE 1: SKILL MATRIX TEMPLATE S. Nam interpe Involv Lea Resp Eth Beh • identifies the skills needed in the N e\ rsonal ement der onse ical avio organization o Crite Skill in shi for Act r in • matches them to possible unit standard ria’s (IS) career p chan (E wor titles (IC) Ski ge A) k • allows for matching of skills to ll (RC) plac nationally registered unit standards (LS e • the development of job profiles ) (BP) • the creation of learning pathways 1 • the identification of possible 2 leaderships 3 • the alignment of learning interventions 4 • the development of assessment guides Total • Recruitment Rating • Performance management • the alignment of HR systems III.RATING METHOD The Mr. Panda wanted the researcher to offer a II.DEVELOPING SKILL MATRIX TEMPLATE rating method which is simple and does not involve complex calculation. Mr Aghoram agreed on his point and The objective behind developing a template to be used by requested him to provide the services of key persons in the the superiors of the firm was production department where they had earlier agreed to administer the skill matrix. The rating was arrived at after  To identify the training need of an operator. discussing with the key persons – the supervisors of various  To find out the existing performance levels of each production processes of the production department and employees in the operation section. Human resource department staff. The rating by the  To find out the best performer of the operation superiors was designed in a simple manner giving rating 1 to section in company. 4 and this is shown below  To prepare skill matrix for every employee in the production department. TABLE 2: RATING Need Need to be Can Train No need A meeting was arranged by Mr Panda, the Production Training Trained for future of Head to provide the inputs necessary to design a skill matrix Immediately Expectation Training template. He briefed to the key employees the need for the &Capable meeting and their observations regarding the inputs to be of used for the skill matrix, was noted by Mr. Aghoram,the Training researcher. Afterwards a second meeting was arranged by others Mr. Panda where only the senior supervisor and senior Rating 1 Rating 2 Rating 3 Rating 4 worker along with the researcher were present. They had a discussion on the observations made in the first meeting. Mr. Aghoram put forward the developed skill They debated about the observations made in the previous matrix template and rating method to Mr. Giriswamy and meeting and arrived at following inputs after eliminating his core team. They were quite apprehensive about the irrelevant points. The rationale behind the elimination was parameters identified by the researcher but they decided to based on the experience of the key persons present in the go ahead with the testing of the template with the production second meeting. The resolution was passed to design a skill department. The supervisors of the production department matrix template based on the following points: taking responsibility of various processes were given half day training by Mr Aghoram and Mr. Panda. The rationale  Interpersonal skills behind administrating the template was explained to them  Involvement in career improvement and the method of rating was also explained to them  Leadership skills The production department consists of thirty  Response to change workers and Mr Chinna the production supervisor was  Ethical act entrusted with the task of administering the template and the  Workplace behaviour results were tabulated and presented to Mr. Giriswamy.

The discussion was taken to develop a template and implement among the 30 workers of the production department.

The Skill Matrix Template: The Skill Matrix template developed based on the above identified factors:

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TABLE 3 – RESULTS REFERENCES

S.No Name/ IS I L R E B [1]http://searchsecurity.techtarget.com/ magazine Content/ Criteria C S C A P Building- an-information-security-skills-matrix on assessed 1. Anand.P 2 3 1 1 1 2 on 8/1/2012 2. Kumar.S 3 1 4 4 1 4 [2]Http://www.apcc21.org/assets/234/Skill.doc 3. Balaji.R 1 2 1 1 3 1 [3]http://www.gembapantarei.com/2007/07/free_skill_matri 4. Chand. S 3 1 4 3 1 4 x_template.html 5. Dipesh.R 4 4 2 3 1 2 [4]Http://www.primarygoals.org/Skill_Will_Matrix.htm 6. Jagan.N 4 1 2 2 4 1 [5] Carringer Rob, Skills Matrix Can Assess New Hires, 7. Jose. A 4 1 2 2 4 1 Existing Staff 8. Kalyam .I 2 1 3 4 1 4 http://www.turnaround.org/Publications/Articles.aspx?objec tID=6589 9. Kathir.T 3 3 2 4 4 4 [6] Caldwell, Benjamin & Rohlman Christopher curriculum 10. Kumara K 4 2 2 1 4 4 skills matrix for development and assessment of 11. Logesh .O 1 1 2 1 4 3 undergraduate biochemistry and molecular biology 12. Mani.K 1 3 4 3 4 4 laboratory programs, Biochemistry & Molecular biology 13. Mariah K 3 3 4 4 4 4 Education,Vol 32,Issue1,2004, Pages 11-16 14. Maria.F 3 1 4 2 1 4 [7] Leadership Skills Matrix across Industrial and 15. Muni.Y 3 1 4 2 1 4 Manufacturing Markets http: 16. Muruga.R 1 3 1 1 4 2 //www.articlesbase.com/leadershiparticles/leadership-skills- 17. Muthur.P 1 3 1 2 4 1 matrix-across-industrialand-manufacturing-markets- 18. Nagesh.K 3 3 2 4 1 4 2193946.html 19. Nanda .A 4 1 1 1 4 1 [8]htpp://www.getinvolved.unlv.edu/facultyresources/.../Pro 20. Nirmal.N 4 4 3 2 4 4 fessional Skills Matrix.pd 21. Nithin.W 4 4 3 2 4 4 22. Rithesh.F 1 1 2 3 4 4 23. Selva .C 4 3 1 2 4 1 24. Senthil.B 4 3 1 2 1 4 25. Siva .B 4 1 4 3 4 4 26. Thiru .G 4 3 1 1 4 2 27. Thyagu.S 3 3 4 3 4 2 28. Umesh.D 3 1 1 3 1 4 29. VigneshV 1 1 2 2 4 1 30. Yogi.J 3 3 2 4 1 4 Total Rating 85 65 70 72 86 88

IS- Interpersonal Skill IC- Involvement in Career

LS- Leadership Skill RC- Response for Change EA- Ethical Act BP – Behaviour in workplace

The rating and score sheet was tabulated by supervisor of the production department and tabulated results were shown to Mr. Aghoram. After going through the scores given in the template, he recorded his observation. His observation was that three areas need to be given attention namely involvement in career, leadership skills and response to change. The outcome though have given a picture and seems to be easy to understand and administer, though Mr. Giriswamy was little apprehensive about it. As usual Mr. Giriswamy was pondering over the results and cogitating that- Does it really meet the needs of what I was looking for? Does the consulting exercise meet the objectives set to investigate the problem? Was the approach correct?

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Worker Attitude as a Persuasive Factor for Outmigration in the Tea Plantation Sector of Sri Lanka

A. M. T. P. Athauda, E. M. M. Ekanayake and G. H. I. Anjalee

 earnings of the country in 2009 and amongst main export Abstract— With a contribution of more than one products of Sri Lanka, tea is a major contributor. seventh of the total Gross Domestic Product (GDP), After privatization, there are 20 Regional Plantation plantation sector plays a major role in the economy of Companies (RPCs) managing 391 estate units with 165,395 Sri Lanka. Tea is one of the major plantations in the ha of which the main crop is tea. The privatized corporate country that has a great impact on socio-economy of the tea sector accounts for 46 % (90,324 ha) of total area of country providing over one million direct and indirect 195,000 ha and 49 % (141.32 million kg) of total black tea employments to people. During the past three decades, production of 284 million kg. worker outmigration has made a deficiency of workforce The tea sector accommodates over one million workers and has become a colossal problem in the tea plantation directly and indirectly the average workforce engagement sector since best known quality of Sri Lankan tea is has been reduced from 301411 to 252150 during the period mainly dependent on selective plucking that needs from 1996 to 2008. Women often consist of 75%-85% of the immense use of human labour. work force in the tea industry. Selective plucking is the main The purpose of this study was to identify the most reason for the popularity of tea in the world market. Further, persuading factor for worker outmigration and to in the process of making tea, factory and sundry work need measure the influence of worker attitudes towards estate many worker hands and consequently tea requires labour worker outmigration. A sample survey was carried out intensely and compared to the other two plantation crops, to collect data concerning factors for outmigration; rubber and coconut the need is much higher. The number of income, attitudes, level of education, type of occupation, income sources from other than estate etc. using a pre- workers required for one acre of tea is 1 whereas rubber and tested questionnaire. Descriptive and inferential coconut require only 0.5 and 0.15 respectively. However, in statistics were used to analyse data. spite of the continuous intervention of the government in the The results revealed that the association of migration labour market, increasing wages and benefits that affect status with attitude of the workers and their level of directly to increase the cost of production without parallel education are above all other factors. Other factors such productivity increase, the labour migration from the as occupation, income from estate, and income from plantation sector is severe. Further, from the recent past, the outside sources do not significantly influence workers for plantation sector has been affecting economically negative outmigration. The results highlight the necessity of by the labour laws such as mandatory six-day work rule and calling for measures to change the attitude of estate restrictions on moving labour from one plantation to workers. another. Corporate sector tea plantations are largely dependent on Index Terms— Attitude index, Corporate sector, resident work force (about 84% of the worker population Worker outmigration resides in the estate). The geographical isolation of some estates (especially in up-country), socio-cultural differences I. INTRODUCTION (majority of the resident workers are Tamil of Indian HE Plantation sector in Sri Lanka is one of the largest origin), and problem with citizenship rights and ethnic Tearning sectors contributed about 15% to the Gross conflicts related security consideration were until recently Domestic Product (GDP) in 2009. About 37% of tea and influential in keeping the estate population intact. However, rubber lands belong to the corporate plantation sector while there are clear indications that the availability of this worker the balance is in the hands of small holders whereas only 2% force cannot be taken for granted. Increased access to of coconut land is in the hands of Regional Plantation information, citizenship rights and increase mobility has Companies and the State. Tea, Rubber and Coconut exports opened doors to the plantation community to participate in in the plantation sector accounted for 24% of foreign economic activities outside plantations. Given the stigma attached to work in the estates, traditional management A. M. T. P. Athauda, E. M. M. Ekanayake and G. H. I. Anjalee are with practices and the harsh working conditions due to the nature the Department of Ahribusiness Management, Faculty of Agriculture and of work, the estate inhabitants (the more educated and Plantation Management, Wayamba University of Sri Lanka, Sri Lanka (corresponding author phone: +94-718-202-109; fax: +94-312-299-246; e- politicized youth in particular) do not give preference to mail: [email protected]). estate employment [3]. The ultimate result of continuous

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accumulating of dissatisfaction, humiliation, lack of esteem, A6 Free benefits from estate is satisfactory ( eg: stress and unrest is unbearable worker outmigration from the housing, medical care) sector. Figure 1 shows how worker outmigration in the A7 Social status of plantation workers is plantation sector has become severe during the past two satisfactory decades. A8 Working conditions in plantations are Most of the corporate tea plantations face considerable satisfactory reduction of their work force and literature reveals that, low A9 Work in plantations is not riskier than others income from estates and poor living condition are the main (hazard) factors influencing labour outmigration [2]. Numerous A10 Job security of plantation sector is development projects have been implemented in the tea satisfactory A Salary of plantation jobs is satisfactory sector with the objective of reducing outmigration rate and 11 A Plantation job is the best suited for my also the wage rates have been raised to a moderate level and 12 education level thus workers have been provided with both monetary and

non-monetary benefits. Plantation Human Development Focus Group Discussions (FGD) were carried out with Trust (PHDT) is the main mandatory body to conduct estate managers, estate superintendents and PHDT officers projects in order for assuring satisfying welfare condition of prior to the survey. According to the PHDT classification, the workers [5]. there are two upcountry regions as Hatton and Nuwara Eliya. Three tea estates were selected from Hatton while two II. OBJECTIVES were selected from Nuwara Eliya. A selection criterion was Increasing worker outmigration, in spite of the provided based on random sampling method. benefits indicates that there are other factors those need to be addressed in order to retain workers in their estate II. Data Analysis occupation. Therefore, this study was conducted to find out the factors affecting worker outmigration and to develop an Data were analysed using both Descriptive and Inferential index that shows the worker attitude towards the plantation Statistics. Chi-square test of Independence and Binary- occupation which leads to worker outmigration in the Logistic Regression were applied to analyse data with the present context. Further, the study focussed on finding out help of Statistical Package for Social Science (SPSS) whether there is any association of worker attitudes with the version 16.0. Nine socio-economic variables; namely (1) influenced worker outmigration. Income from the estate, (2) Income from outside estate, (3) Education, (4) Occupation in the estate, (5) Age, (6) III. METHODOLOGY Ethnicity, (7) Religion (8) Marital state and (9) Gender were I. Data collection identified as socio-economic factors affecting and measured the relationship of them with outmigration of the workers The study was carried out in two phases. During the first using Chi-square test. phase, a preliminary survey was conducted to find out the Data were collected from twelve attitudinal statements background of migration, using a sample consisting of 20 and the respondents were asked to assess them and give workers. The characteristics of the respondents were not scale values on five point Likert Scale. An attitudinal index much different and were homogeneous. Data were collected was developed based on the score values. Since the response from a sample of 75 workers selected randomly from the variable was recorded as binary variables (i.e. yes/no) the pre-identified estates through face to face interviews using a Binary Logistic Regression was applied to analyse the pre-tested questionnaire. The questionnaire included two relationship between attitude index and the status of sections, first, to collect data related to factors affecting outmigration using the following empirical model. worker outmigration and second, to gather information relate to worker attitudes in the form of attitudinal Y = β0 + β1X + ε statements; job satisfaction, satisfaction with remuneration, Where: job security, free benefits, and job related risks, etc. β0, β1 = Coefficients Y = Willing to migrate - 1 TABLE 1. Not willing to migrate - 0 ATTITUDINAL STATEMENTS X = Attitude Index Statement ε = Error term Attitudinal Statements No

A1 Satisfied about the job condition IV. RESULTS AND DISCUSSION A2 Willing to continue the job in estate A3 Even alternative for estate job is available, I A. Descriptive Statistics won’t select it A4 Infrastructure of plantation is in workable Plucking was identified as the major occupation of tea condition industry accounting for sixty percent of the sample (Fig 2) A5 Plantation job has a social recognition in Sri and the majority of them are female workers accounting for Lanka

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60 per cent (Fig 3). Male workers are mainly assigned for work in factory or in field for sundry work. Sixty seven percent of workers have secondary education or below (Fig 4). However, it was revealed that education level of the workers have substantially increased during the 94.7% past few decades with the implementation of several projects under the attention of PHDT to develop facilities of schools in estate areas and the consequent significant development. The majority of workers, 94.7%, are Tamils because, since at the beginning of tea industry in Sri Lanka, 2.7% the workers were brought from South India by British 2.7% planters (Fig 5). Currently, there are second and third generations of the first worker force in the tea industry. Tamil Sinhala Muslim Most of the workers are Hindus in terms of religion accounting for 76% and 16% of workers are Roman Fig 5. Ethnicity differences among estate workers Catholic or Christians (Fig 6).

12%

28% 76% 60%

Plucker Sundry labor Factory labor

Fig 2. Occupations in tea industry 16% 2.7% 5.3%

Hindu Christian Muslim Buddhist

40% Fig 6. Religious differences among estate workers

60% 2.7% 17.3% 16%

Male Female

Fig 3. Gender distribution among the estate workers

64%

16-30 31-45 46-60 Above 60

67% Fig 7. Age distribution among estate workers

30.4% Majority of the workers are under the age group of 31-45 years (Fig 7). The results show that the workers of the age group of 16-30 years are the worker group that is the most 5.3% eager to change their traditional occupation in estate sector. However, with the marriage or rather after having the first Primary Secondary Tertiary child, most of them join the plantation work force with the intention of having steady employment and income. Table 2 Fig 4. Level of education of estate workers shows the demographic composition of the plantation workers.

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TABLE 2. The favourable climate of upcountry for numerous kinds DEMOGRAPHIC COMPOSITION OF THE of vegetable that have high demand in the market supplies PLANTATION WORKERS permanent and casual or part time jobs for estate workers. From vegetable cultivation, they earn more money than Variable Category Percentage from other sources (Fig 8). Marginal lands and spaces (%) around the house of workers are used for vegetable Occupation Plucker 60 cultivation and there are developed proper marketing Sundry worker 28 channels through retail collectors to sell these produce. Factory worker 12 Thirty three percent of sample works outside farms such as in flower cultivations, vegetable gardens, and animal Gender Male 40 husbandry farms (Fig 8). The occupations are either kind of Female 60 permanent, casual or part time jobs. A low percentage of workers (10%) earn additional income using outside estate Education Level Primary 30 plucking and livestock rearing to sell fresh milk. Secondary 66 Tertiary 4

Ethnicity Tamil 95 10% Outside estate Sinhala 3 plucking Outside estate farms Muslim 2 47% 33% Animal Raising Religion Hindu 76 Vegetable and Christian/Roman 16 Flower cultivation Catholic 10% Muslim 5 Buddhist 3 Fig 8. Other income sources of plantation workers Age 16-30 years 16 31-45 years 64 46-60 years 17 16% 14% Above 60 years 3

B. Out-migration < Rs.5000

Rs. 5001 - Rs. 10000 Openness to the external economy, obtaining citizenship > Rs.10001 rights and availability of immense job opportunities outside estates are the main factors that were observed for increased outmigration of the workers. It was revealed that half of the 70% workers are willing to outmigrate from the estates, 51 %, while the rest of the workers, 49%, are willing to remain in Fig 9. Income distribution of plantation workers their present occupation in estates. Furthermore, it was observed that the workers who are eager for out-migration Compared to the income of workers from sources outside are mainly looking for occupation in garment factories, estates, income as salary from estate is significantly less. shops, construction sites and even in houses as domestic Minimum daily wage rate of outside estate is Rs. 350 while helpers. Some are making their maximum effort to find the minimum mandatory wage rate according to laws ways and means to go abroad for foreign employments. The (attendance must be 75% of estate working days) is Rs. 290. worker perception of occupations outside estate, higher If attendance falls less than 75% of working days, wage rate reputation and more salary, influences workers for becomes as low as Rs. 220. Monthly salary of workers in outmigration. plantation industry is mainly observed in three categories

viz. less than Rs. 5000, 5001-10000 and more than 10,000. C. Sources of Income The results show that 70% of workers gain salary in the

range of Rs 5001-10000 (Fig 9). The total monetary benefit Income is the most important socio-economic factor is calculated to Rs. 320 with the contribution to Employees among any society of people and this does not differ in the Trust Fund (ETF) and Employees Provident Fund (EPF). plantation sector. The study revealed that in addition to the However, workers do not consider ETF and EPF as main income source, salary from estate, sources of income monetary benefits since it does not add any rupee value to from outside estate are also available for plantation workers. their monthly salary and tend to think that such benefits are The immense job opportunities available for workers as not real benefits for it is not necessary. external sources of income can be categorized into four types; outside estate plucking, vegetable cultivation, livestock rearing, and outside farms

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D. Results of Chi-square Analysis

The Chi-Square Analysis was carried out to determine the association of the status of worker outmigration with identified socio-economic factors that are shown in Table 2. Migration status is expressed willing to migrate as (1) and not willing to migrate as (0). Pearson chi-square values show the association (Table 3) among the migration status and socio-demographic factors identified.

TABLE 3 ASSOCIATION OF WORKER OUTMIGRATION WITH SOCIO-ECONOMIC FACTORS Fig 10. Distribution of Attitude Index of sample Pearson Chi- Probability Variable Square Value Value (P) F. Outcome of Regression analysis Occupation 0.726 0.695 Education Level 9.999 0.007* Binary logistic regression was carried out to evaluate the Gender 0.720 0.396 relationship between the Attitude Index with migration Income from 1.192 0.551 status. estate Income from 5.776 0.217 TABLE 4. outside estate RELATIONSHIP BETWEEN MIGRATION STATUS Ethnicity 4.114 0.128 AND ATTITUDE INDEX Religion 5.847 0.119 Probability Age 4.013 0.260 Variable Coefficients SE Marital state 2.001 0.157 Value NOTE: * - Significant at 5% level Attitude -7.951* 4.462 0.075 Index According to values, education is the only variable that Constant 7.116 3.361 0.034 has a significant association with migration status. That NOTE: * - Significant at 10% level indicates migration is affected by the level of education of SE – standard Error the tea plantation workers. With increase of their education level, workers prefer to out-migrate for jobs with a Results revealed that the Attitude Index had a significant perceived higher salary and reputation. relationship with the migration status. This means with the Interestingly, the socio-economic factors that reflect the increase of the attitudes towards the plantation occupation level of income of plantation workers (i.e. income from (i.e. expressed by the Attitude Index), workers are not estate and income from outside the estate) do not willing to out-migrate (Table 4). significantly associate with the migration status of the An item in the questionnaire asked the respondents to workers. That indicates the income is not the most voice their suggestions to overcome the out migration persuading factor for worker outmigration in tea plantations problem. This was estimated by means of five-point likert in Sri Lanka. Since income shows no association with the scale based statements as following options: (1) Develop the migration status based on the significance levels considered living condition of labour(ss1) (2) Government should pay and in turn that indicates there may be other reasons behind attention (ss2) (3) Increase salary (ss3) (4) Develop non- the worker outmigration. monetary benefits (ss4) and (5) Middle level management should pay close attention (ss5). E. Attitude index Respondents agreed with all statements and the third suggestion, of increasing salary, scored highly among Attitude Index was ranged from zero to one. The index respondents (Fig 11). Statement one was scored well by 54 showed whether the attitude of workers were to migrate or percent of respondents. Mid level management of plantation not; with those close to zero are more likely to migrate and plays a major role in industry. It is proved by respondents of those close to one are less likely to do so. Highest frequency labour because of that lowest percentage (35%) have of sample showed index value between 0.7 and 0.8 and accepted the statement 5. almost hundred percent of the sample has given the index values more than 0.5 (Fig 10). V. CONCLUSION AND POLICY IMPLICATIONS This study was carried out to identify the factors that

affect worker outmigration in the plantation sector. Results

www.theinternationaljournal.org > RJSSM: Volume: 01, Number: 11, Mar-2012 Page 32 revealed that worker out-migration was affected by attitude of workers and level of education. This indicates that change of worker attitude is necessary for sustainability of the industry. Attitude is the most persuading factor to worker out-migrates than income. According to the suggestion of workers, they expect increased salary. Increase of salary can be used as a tool to change the attitude. So plantation companies should pay attention to the attitude of work force than monetary and non-monetary benefits.

Enhancing the positive thinking and removing of inferiority mindset from estate workers will assist to change their attitudes. Workshops, training programs, traditional ceremonies can also be utilized as motivators. Together with these, management should look into worker needs and provide immediate solutions to motivate workers. Plantation companies can form a special unit in human resource divisions to study in more depth the attitudes of their estate level workers. Education and migration status has a positive association and education can affect to change their attitudes. Future studies can better focus on the role of education on worker attitudes and outmigration, and the application of existing motivation related management practices to retain and enhance the estate worker force.

ACKNOWLEDGMENT The authors wish to express their gratitude to Mr. R. K. B. Galagoda (Asst. Superintendent), Mr. L.B. Nimal de Silva (Field Officer), the officers who responded, and workers of estates who supported to collect the date.

REFERENCES [1] Arunatilake, N., (2001) Do estate welfare programs affect labour performance. Journal of the National Institute of Plantation Management, 17, 8-29. [2] Bambaradeniya, G., (2003) Practical implications for today’s managers on employee motivation in the plantation sector, Journal of the National Institute of Plantation Management 19(2), 24-29. [3] Dunham, D., Arunatilake, N., and Perera, R., (1997). The labour situation on Sri Lanka Tea estate. A view to 2005, Colombo, Institute of policy studies of Sri Lanka. [4] Ministry of plantation industry, (2008). Plantation sector statistical pocket book Available: http://www.plantationindustries.gov.lk/english/publicati on.htm [5] Muthuthantri, C.J., (2003). Effects of monetary and non monetary benefits on motivation of tea plantation workers in up country of Sri Lanka. Journal of the National Institute of Plantation Management, 19(2), 15- 18.

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Annexure

Fig 1. Deterioration of Total Workforce in the plantation Sector

900,000 800,000 700,000

600,000 500,000 400,000

No. of Workersof No. 300,000

200,000

100,000 0

1992 1995 1998 2001 2004 2007 1991 1993 1994 1996 1997 1999 2000 2002 2003 2005 2006 1990 Year Total Mgt. Co.s SLSPC JEDB

Fig 11. Suggestions of workers to overcome the problem

Strongly agree Agree Not disagree or agree Disagree Strongly disagree 100 90 80 70 60 50

40 Percentage 30 20 10 0 ss1 ss2 ss3 ss4 ss5 Sugection statement

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Benefits, opportunities, and challenges of computerization of the banking sector – a case study of Commercial Bank of Ethiopia

Jhansi Talluri & Kennedy Babu Singapogu

Abstract computerization of banking system its opportunities and The use of computer to carry a very wide range of activities challenges faced by it in Ethiopian scenario. for work, study and leisure has become a part of our everyday life. However in banking industry the use of II. EVOLUTION OF COMPUTER SYSTEM computers in carrying out various day-to-day activities has been increased. The research focuses on the impact of From 1890 to 1944, an important breakthrough was made by computer services in banking service sector. The choice of Dr. Heman Hollerith who invented a machine that store Commercial Bank of Ethiopia, Mekelle branch for study information on punched paper cards. This machine was will help in drawing a general conclusion with respect to used in the U.S. census of 1890 and students at the different areas. An attempt has been made in this paper on Massachusetts Institute of Technology observed some how computers have made a great impact on the banking relationship between laws of mathematical logic and logic industry. Modern technologies have brought about the use circuits. The first all-Electronic was built for the United of computers in all areas of human endeavors in Ethiopia States army by scientists at the More School of Engineering and other African countries. The problem of the study is at the University of Pennsylvania in 1946, called ENIAC how far the usage of technology is creating opportunities in (Electronic Numerical Integrator and Calculator). In 1948, different areas like employment, attracting and retaining IBM cooperation came out with SSEC (Selective Sequence customers, the benefits enjoyed by the customers and Electronic Calculator) for scientific use. Thus began bankers and the challenges faced by the bankers in the usage computer age. of computers. Key words : Opportunities, challenges, Benefits and Soon, other manufacturers began to enter into the computer Commercial Bank of Ethiopia field. In 1951, Remington Rand produced and sold UNIVAC (Universal Automatic Computer), the first I. INTRODUCTION computer to store data internally. The competitions continue. New technology began to enter the field very Banking on net save money by eliminating overhead costs quickly, the development of transistors, magnetic cores, such as buildings and tellers, and they pass on these savings silicon chips, and microprocessors, to name only a few of to their customers in the form of higher yields, lower fees, the recent achievements, have had a tremendous impact on and more generous account thresholds (DiDio, 1998, Orr, the efficiency, speed, and capabilities of computers. Who 1999). Technologies allowed the banks to deliver their knows what will come next? We already have energy- products and services in a more convenient and efficient conserving robots working in dark and unheated factories. manner than ever before and thus created more competitive We know that our health is already beginning to be environment. The growth of technology, high speed monitored by computers. What will the next breakthrough network coupled with the falling cost of computing power, be and the one after that perhaps you will be the one to build is making possible applications undreamed of in the past. it. This detonation of technology is changing the banking industry from paper to digitized and networked banking III. A BRIEF HISTORY OF COMMERCIAL BANK OF services. It is traditionally changing the banking industry ETHIOPIA and delivery systems to the customers. Technology has given potential customers to the banks and high expectations The Commercial Bank of Ethiopia (CBE) was legally in the customers. New technologies in the banks have established as a Share Company in 1963 to take over the brought great impact on customers and employees. commercial banking activities of the State Bank of Ethiopia, which was founded in 1942 with twin objectives of With the computerization of banks in Ethiopia, banks performing the duties of both commercial and central acquired benefits and opportunities like cutting down in banking. During the 1974 revolution, CBE got its strength costs along with several major challenges. This paper is by merging with the privately owned Addis Ababa Bank. aimed to demonstrate the benefits of the computerization of Since then, it has been playing a significant role in the banking system compared to the traditional manual system. development endeavor of the country. The CBE, which is This paper also tries to present the situation after the striving to become a world class bank, is rendering state-of- the-art and reliable services to its millions of customers,

www.theinternationaljournal.org > RJSSM: Volume: 01, Number: 11, Mar-2012 Page 35 both at home and abroad. The business strategies of the branches, into one unified system in the form of Wide Area Bank focus on the interest of the public it serves. Network (WAN) or Enterprise Network (EN), for the creation and sharing of consolidated customer information / At the end of the fiscal year 2008/09, the Bank had 208 records. It offers quicker rate of inter-branch transactions as branches stretched across the length and breadth of the the consequence of distance and time are eliminated. country, and 7955 employees whom it regards as its key Hence, there is more productivity per time period. Also, assets. The state-owned CBE still dominates the market in with the several networked branches serving the customer terms of assets, deposits, capital and customer base and populace as one system, there is simulated division of labor branch network, despite the growing competition from among bank branches with its associated positive impact on private banks over the last 15 years. This makes it one of productivity among the branches. Furthermore, as it curtails the most reliable and strong commercial banks in the customer travel distance to bank branches, it offers more country and the region. Its strong capital base, close to time for customer‟s productive activities. seven decades of rich experience in the market and wide branch network throughout the country have enabled the Electronic Funds Transfer at Point of Sale (EFTPoS): Bank to accommodate the large demands for its services, An Electronic Funds Transfer at the Point of Sale is an on- and increase its overall revenue on sustainable basis. line system that allows customers to transfer funds instantaneously from their bank accounts to merchant IV. APPLICATION OF COMPUTERS IN BANKING accounts when making purchases (at purchase points). A INDUSTRY POS uses a debit card to activate an Electronic Fund Transfer Process. Increased banking productivity results During 1950‟s researchers at Stanford Research Institute from the use of EFTPoS to service customers shopping invented “ERMA”, the Electronic Recording Method of payment requirements instead of clerical duties in handling Accounting computer processing system. ERMA began as a cheques and cash withdrawals for shopping. Furthermore, project for the Bank of America in an effort to computerize the system continues after banking hours, hence continual the banking industry. It computerized the manual processing productivity for the bank even after banking hours. It also of checks and account management and automatically saves customers time and energy in getting to bank branches updated and posted checking accounts. Stanford Research or ATMs for cash withdrawals which can be harnessed into Institute also invented MICR s(Magnetic ink character other productive activities. recognition) as part of ERMA. MICR allowed computers to read special numbers at the bottom of checks that allowed V. COMPUTER USAGE IN DAY TO DAY computerized tracking and accounting of check transactions. OPERATIONS Thirty-two units were delivered to the Bank of America in 1959 for full-time use as the bank‟s accounting computer Computer helps in viewing customer accounts with their and check handling system. account number for cash receipts and deposits from customers to savings account. Computers are used in Banking operation system is revolutionized with performing operations to receive and pay cheques from computerization and creativity brought into the dynamics of organizations and customers to minimize time in performing banking operation in the last few years. The advent of the these operations. Cheques are cleared with much ease by usage of computers has enormously increased the banking having customer account number displayed immediately the capabilities of the banks and they are able to offer better number is coded in and the cheque is cleared in less time services like: with the help of the computers. Loan accounts are updated accordingly with the help of customer account number as PC banking: PC-Banking is the services rendered by the customer makes payments. Checking and record keeping of banks to enable customers at home or their offices access bank activities are made very easy with the use of computer their account for transaction by dialing into the banks by having full and comprehensive information about the internet proprietary software system with the help of bank. passwords. VI.RESEARCH METHODOLOGY Electronic Banking: this involves banking with either your own computer or with Automated teller machines (ATMs). The population of this study is selected from staffs of the Commercial Bank of Ethiopia, Mekelle Branch. Random Automated teller machines (ATMs): The ATMs released sampling method for selection of sample population is used banks from the constraints of time and geographical and the sample is about fifteen members of the staff of location; they presented banks with more economical Commercial Bank of Ethiopia, Mekelle Branch is made. substitutes for brick and motor branches. In fact, ATMs are Data is collected by serving questionnaire. generally connected to bank computers by private lines; the branches are being linked by sophisticated computer based- Technical process of statistical data is tabulation. The systems, drastically cutting down transaction time and cost. essential operation on the tabulation is counting to determine the number of cases that fall into different Branch Networking: categories. Questionnaire is analyzed and inferences are Networking of branches is the computerization and inter- drawn from the analysis. connecting of geographically scattered stand alone bank www.theinternationaljournal.org > RJSSM: Volume: 01, Number: 11, Mar-2012 Page 36

The following table stress on the opportunities available for The following table stresses on the challenges faced by the banking sector because of computerization: bank in computerization: Sl.N Opportunitie Yes No Can‟t Sl. Challenges Yes No Can‟t Say o s Say No N % N % N % % o. o. o. N % N % N % 1 In back 8 53.3 6 40 1 6.67 o. o. o. office 3 1 Computeriza 15 100 0 0 0 0 computeriza tion of % tion by the banking bank, industry is duplication necessary of work 2 Did you 15 100 0 0 0 (manual react data entry as positively well as PC when you data entry is heard about required) bank 2 Data 7 46.6 7 46.6 1 6.67 computerizat conversion 7 7 ion problem is 3 Does the 3 20 11 73.3 1 6.6 faced by the bank offer e- 3 7 bank while banking transferring services like from back ATM in the office to town total bank 4 So many 7 46.6 8 53.3 0 0 application branches 7 3 3 Does the 5 33.3 10 66.6 0 0 were opened bank faces 3 7 in the problems, mekelle due to lack town of because of knowledge computerizat to staff ion about 5 Does the 13 86.6 1 6.67 1 6.6 computer new 7 7 systems, so potential customer customers get irritated were because of attracted by delay and quick inefficient services service provided by 4 Does the 8 53.3 5 33.3 2 13.333 the bank bank face 3 3 33 problems From the above table 100% of the respondents positively like huge agreed by saying yes that computerization of banking investment industry is necessary for effective operation of banks. In in continuation 100% of the respondents positively responded infrastructur when they heard about computerization of banks. e while In contrary to this 73.33% of the respondents agree that implementin bank does not offer any ATM services in the town. Offering g core ATM service is an opportunity for banks in attracting more banking customers by giving convenient services. Only 53.33% of 5 Does the 14 93.3 1 6.67 0 0 the respondents agree that new branches are not opened bank have 3 because of computerization but 87% of the respondents more positively agreed that bank attracted new potential dependabilit customers by quick services provided by the bank because y on outside of computerization. sources like Ethio telecom www.theinternationaljournal.org > RJSSM: Volume: 01, Number: 11, Mar-2012 Page 37

services The following table stresses on the benefits of while computerization of banking sector: implementin Sl.N Benefits NO Can‟t Say g core o Yes banking 6 Do illiterate 8 53.3 7 46.6 0 0 No % No % No % customers 3 7 . . . face 1 Does the 10 66.6 4 26.6 1 6.6 difficulties bank able 7 7 7 in using to speed up computerize transfer of d banking money services across the 7 Computer 15 100 0 0 0 0 world skill training because of is required networking for the bank 2 How can 14 93.3 0 0 1 6.6 employees you rate 3 7 for handling the computerize banking d operations transactions after the 8 Was the 7 46.6 8 53.3 0 0 introductio training 7 3 n of provided by computer the bank is 3 Has the 11 73.3 4 26.6 0 0 enough to use of 3 7 handle computer computerize reduced d the long transactions time delay spent in From the above table 53.33% of the respondents agree by queue by saying „yes‟ that bank requires back office operations for customers manual data as well as computer data. Even 53.33% of the in the bank respondents say that bank faces problems like huge investment in infrastructure while implementing core From the above table 66.67% of the respondents positively banking. 93.33% of the respondents say „yes‟ by stating agree that the bank is able to speed up transfer of money that bank have more dependability on outside sources like across the world because of computerization. It enables the ethio telecom services while implementing core banking. bank to attract more foreign customers. In continuation Even 53.33% of the respondents positively responded 93.33% of the respondents positively agree that banking stating that illiterate customers face difficulties in using operations are enhanced after the introduction of computers computerized banking services. and 73.33% of the respondents say that the use of computer reduced the long time delay used to spend in queue by In contrary to this for data conversion by the bank while customers in the bank. transferring from back office to total bank application only 46.66% of respondents positively said yes which expresses VII. DISCUSSION that they do not have much problem in data conversion. It also shows that 66.66% of the respondents say that the bank The above findings showed that the bank has an opportunity does not face any problem due to lack of computer of offering ATM services, opening number of branches and knowledge to staff so that the customer is irritated because attracting potential customers by giving efficient services. of delay and ineffective operations. But offering ATM services is one of the major challenges to the bank because of the policies of the government and 100% of the respondents agree that skill training is required inadequate infrastructure. for the bank employees for handling computerized transactions which in result stresses on availability of skilled Effective computer based system is required in the banks trainers. In contrary 53.33% of the respondents negatively which minimizes the back office computerization as well as responded that the training provided by the bank is not data conversion problems while transferring from back enough to handle the computerized transactions. office to total bank application. Skilled and trained staff is required to operate the new computerized system. Computerization of Banks is highly dependent on IT professional for development, implementation and support. www.theinternationaljournal.org > RJSSM: Volume: 01, Number: 11, Mar-2012 Page 38

It needs a local expertise in IT for implementation. Even countries: reflections on Faisal Islamic Bank, Sudan‟‟, in after the training provided by the bank still shortage of Kunibert, R. and Mohammed, qualified personnel exists and training provided is not S.(Eds.), The Least Developed and the Oil-Rich Arab sufficient. Despite the computerization and other electronic Countries: Dependence,Interdependence programs performed in the banks it is highly dependable on or Patronage, St.Martin Press, London, p. 225. outside sources for internet like Ethio Telecom and needs 8. Bank of Sudan, (2001, 2004, 206), Annual Reports, Bank huge investments for infrastructure development. of Sudan, Khartoum. 9. www.combanketh.com The changes that computerization brought to bank is 10. R. K. Mishra and J. Kiranmai (2009) “E-Banking: A enormous. Computerization made the banks for effective Case of India”, The Icfai University Journal of Public delivery of services more conveniently than ever before. Administration, Vol. 5, No. 1, pp. 55-65, 2009. Thus computerization creates a new base of competition.

VIII. CONCLUSION

Computerization of the banking industry plays a greater role in the development of a country. Explosion of technology has made the banking industry from paper to digitized branches. Globally, computerization is not a new phenomenon in the banking sector but computerization of banks in least developed countries is latest? The findings of the study show that computerization has great impact in banking sector by creating new opportunities such as convenient services. Convenience means operating the banking transactions wherever and whenever customers want. But still there is a big room for improvement of technology as the technology advances as well as for infrastructure. Reengineering the systems and updating the machinery is required to deliver more services efficiently and effectively and to be competent in global banking industry. Finally, computerization speeds up the operations and increases the efficiency. a* T.Jhansi working as a lecturer, Dept. of Acct & Finance, College of Business & Economics, Mekelle University. b*S.Kennedy Babu working as Assoc.Professor, Dept. of Business Management, College of Business & Economics, Mekelle Univeristy.

References:

1. BRITHTMAN, RECHARD W (1993) Using computer in an information age Delmar publishers Inc. (page 140-160) 2. FRENCH, C.S (1989) Computer science third edition great Britain DP publication. (page 90-96) 3. LAURA GREENE (1983) Careers in the computer industry (A computer-Awareness first book). (page 50-60) 4. DiDio, Laura (1998). "Beta Testers Endorse E-checks," Computerworld, Volume 32, p.57. 5. Al-Harran, S. (1993), Islamic Finance: Partnership Financing, Pelanduck publications, Malaysia. 6. Awad, M.H. (2001), „„Commentary on D.T. Llwewllyn‟s paper: a regulatory regime for conventional and Islamic banks‟‟, Regulation and Supervision of Islamic Banks: Current Status and Perspective Developments, Islamic Development Bank, The High Institute for Banking and Financial Studies, Khartoum, 24-26 April. 7. Badr-El-Din, A.I. (1992), „„Some aspects of Islamic banking in the least developed Arab www.theinternationaljournal.org > RJSSM: Volume: 01, Number: 11, Mar-2012 Page 39

while it is the work, company and pay packets, which draw employees to join a certain organization, it is Exit Interview: A Bridge betweengenerally the immediate Management supervisor or interpersonal, which force employees to leave organizations. Numerous Perception and Employees'surveys have Aspirations confirmed that factors intrinsic to the job

Prof. Prabir Chandra Padhy.

Abstract- This paper indicates that exit interviews provide combined with interpersonal issues and supervision are an excellent opportunity and comment relating to talent the major culprits for employee migration. Nevertheless, retention strategies by minimizing the gap between exit from any organization may have "organization management perception and employee aspiration. specific" reasons. Exit interviews become one of the best Meritorious people often leave organizations because sources for getting a broader understanding into these they are denied the opportunity to grow and advance. "organization specific" issues. An exit interview amongst Wherever it is happening, the organizations need to know other things offers an opportunity to: and respond accordingly. Preferably, they have to be  Ascertain the actual reasons for an employee's conducted face-to-face, in order to promote better resignation communication and understanding between the two sides.  Gather reliable data on problem areas, in order to The HR department should devise various methods that help the management take corrective actions could facilitate "workplace alliances" helpful in molding  Retain a competent employee by understanding the the people who feel isolated from the mainstream. The origin of discontent and agreeing on feasible exit interview is something more than a "damage control" solutions exercise, with a definite objective of building up a work  Encourage good relations with the separated climate by assimilating the diverse attitudes and employee. aspirations. Undoubtedly, the interviews are an excellent Given the nature of this interview and the kind of "catalyst" for identifying specific mistakes and improving information that tends to be exchanged in the process, it opportunities in the vital area of management is imperative that these interviews are conducted with development and succession. Done correctly, they can be utmost care and precision. While all organizations run on a win-win situation for both the "organization" and the explicitly proclaimed vision, strategies and rules, it is a "leaver". It is widely felt that the findings of the "exit fact that most day-to-day activities and strategy interviews" can motivate the management to concentrate implementation is done on a tacit plane of mutual co- on the job of "nurturing" the organization, rather than operation, adherence and group norms. Conformity to the "crisis management" in the wake of high "staff turnover". culture and an existing style is warranted from all employees and any deviation is considered a violation. Key Words- Catalyst, Crisis management, Damage Exit interviews can provide vital clues into this tacit control, Staff turn-over, Work place alliance. functioning, which would have got embedded into the culture and ethos of the organization. A clear I. INTRODUCTION understanding of these issues is important for strategic orientation and sometimes can throw up revealing and AN exit interview is an interview conducted by an embarrassing issues which when addressed can bring employer of a departing employee. They are generally about dramatic and revolutionary progress in conducted by a relatively neutral party, such as a human organizations. Thus these interviews need to be resources staff member, so that the employee will be effectively designed and executed. more inclined to be candid, as opposed to worrying about burning bridges. Exit interviews are conducted by paper III. NATURE OF EXIT INTERVIEWS and pencil forms, telephone interviews, and in-person meetings or online through exit interview management  Exit interviews accelerate participating managers' systems. understanding and experience of managing people and organizations. Hearing and handling feedback is II. OBJECTIVE OF EXIT INTERVIEWS a powerful development process.  Sometimes an exit interview provides the chance to The exit interview is an interview of a departing retain a valuable employee who would otherwise employee. This is typically held for employees who have left (organizations often accept resignations far voluntarily quit rather than those who are handed over the too readily without discussion or testing the firmness pink slip. HR departments conduct exit interviews to of feeling - the exit interview provides a final safety gather perceptions on organizational aspects like working net). conditions, pay packages, interpersonal relations, policies  Exit interviews provide direct indications as to how and related issues. The idea is to obtain information from to improve staff retention. the departing employees on the various issues and cross  They provide an opportunity to 'make peace' with check for authenticity. As the conventional belief goes, www.theinternationaljournal.org > RJSSM: Volume: 01, Number: 11, Mar-2012 Page 40

disgruntled employees, who might otherwise leave are usually conducted by using a "form" that is given with vengeful intentions. to the employee on their last day or mailed to the  Exit interviews are seen by existing employees as a employee's home. The advantages of conducting a sign of positive culture. They are regarded as caring paper pencil exit interview are that it takes less time and compassionate - a sign that the organization is to provide an exit interview form compared to big enough to expose itself to criticism. conducting an in person or phone exit interview and  The results and analysis of exit interviews provide that, employees can share information on paper relevant and useful data directly into training needs which they may be reluctant to say in person. The analysis and training planning processes. negative aspects of using this method are that the  Exit interviews provide valuable information as to return rates for "Exit Interview forms" average just how to improve recruitment and induction of new 30-35%. It is difficult and time consuming to employees. compile and track the data from paper and pencil exit  Every organization has at any point in time several interviews. good people on the verge of leaving because they are 4. Online Exit Interview Management Systems: Online not given the opportunity to grow and develop, at the exit interviews are easy for the HR staff to same time, ironically, that most of the management administer, employees are comfortable sharing and executives are overworked and stretched, some information through computer and so there are more to the point of leaving too. Doesn't it therefore make honest responses, and information is automatically good sense to raise the importance of marrying these compiled and tracked. Added advantages are that two situations to provide advantage both ways - i.e., reports are available at the click of a button and facilitate greater delegation of responsibility to those participation rates are double than for paper and who want it? Exit interviews are an excellent catalyst pencil exit interviews. for identifying specific mistakes and improvement opportunities in this vital area of management V. RULES FOR EVALUATING THE EXIT INTERVIEW development and succession. CONTENT  Exit interviews help to support an organization's As with all questionnaires, it is important to strike proper HR practices. They are seen as positive and the right balance between information needs and survey necessary for quality and effective people- length when putting together an exit survey instrument. management by most professional institutes and There are six key guidelines that should be kept in mind accrediting bodies concerned with quality to help ensure that the end result is a useful and effective management of people, organizations and service. survey: 1. Do not focus solely on the employee’s reasons for IV. TYPES OF EXIT INTERVIEW leaving – although this is extremely important There are a variety of ways available for conducting information, it is also critical to include broader these interviews. Each of them has its own pros and cons. measures about the employee’s attitudes and It is up to the discretion of the top management and the experiences so as to help identify the issues and HR department of the organization to select the method. concerns that may not surface when asking about There are mainly four types of Exit Interview. reasons for leaving. 1. Telephone Exit Interviews: Telephone exit interviews 2. Ensure that there is more than one way for are conducted over the telephone by an HR employees to express their reasons for leaving – representative or an outside third party consultant. including several open-ended questions for them to Using this, the interviewer can probe for more include their own comments – so as to get a full information on each question and enter data into a perspective on the decision to leave. tracking system while conducting the interview. In 3. In order to get beyond a focus on the decision itself, addition, this can be easier to schedule than an in- incorporate key attitudinal measures such as the person interview. The disadvantages of this method employee’s satisfaction with the job itself, an are that, it is time consuming if done in-house by an assessment of the organization’s work culture and HR representative, expensive if done with an outside effectiveness of its various lines of communication, consultant and employees are often reluctant to how well the employee’s job responsibilities were verbally share sensitive or negative information. defined, perceived opportunities for advancement 2. In-Person Exit Interviews: For "in-person exit and the employee’s perspective on the amount of interviews" an HR representative meets individually training, feedback and recognition received. with each leaving employee. It gives a personal touch 4. Recognize that, for maximum effect, any exit survey to each employee and provides an opportunity to system needs to be implemented consistently and in probe for more information on each exit interview such a way as to encourage employees to share their question. The downside of conducting an in-person opinions as honestly and candidly as possible. exit interview is that employees may be afraid to 5. Incorporate the ability to examine results not only on share sensitive information. For larger companies, it the basis of individual results but for the organization may be too time consuming to exit interview every as a whole, as well as on the basis of the relevant employee. Also, it's difficult to track information diagnostics, such as region, department or manager. received verbally during an exit interview 6. Remember that there is an important distinction to be 3. Paper and Pencil Exit Interviews: These interviews made between idiosyncratic reasons for leaving, over www.theinternationaljournal.org > RJSSM: Volume: 01, Number: 11, Mar-2012 Page 41

which the organization has little control and systemic  What was most satisfying about your job? reasons for leaving, over which the organization can  What was least satisfying about your job? exercise substantial control.  What would you change about your job?  Did your job duties turn out to be as you expected? VI. PRINCIPLES OF EXIT INTERVIEW PROCESS  Did you receive enough training to do your job A. Environment effectively?  Getting the right environment is essential to an open  Did you receive adequate support to do your job? and honest discussion. Aim to arrange the interview  Did you receive sufficient feedback about your in a neutral office away from the employees day to performance between merit reviews? day workplace. Ensure that the room is not too  Were you satisfied with this company's merit review imposing or confrontational. This can be done by process? arranging seating in a circle rather than having the  Did this company help you to fulfill your career employee facing a panel of managers. goals? B. Guarantee Confidentiality  Do you have any tips to help us find your  Whilst the employee may be leaving the replacement? organization, it is important to guarantee confidentiality of their exit interview discussion to  What would you improve to make our workplace better? encourage them to be as open as possible. Staff will soon learn not to reveal their real reasons for leaving  Were you happy with your pay, benefits and other If they hear about why other colleagues have left incentives? from gossiping exit interviewers.  What was the quality of the supervision you C. Ensure Appropriate Staff Conduct the Interview. received?  Ideally you should always use a neutral third party,  What could your immediate supervisor do to improve perhaps a member of the human resources staff or a his or her management style? senior manager to conduct the exit interview. This  Would you recommend working for this company to needs to be someone who is unconnected or has had your family and friends? little day to day contact with the employee rather  How do you generally feel about this company? than a direct line manager, to encourage them to be  What did you like most about this company? as open as possible.  What did you like least about this company? D. Don't Get Defensive  What does your new company offer that this  During the interview their will undoubtedly be things company doesn't? said by the employee about the organization or  Can this company do anything to encourage you to working practices that you don't like. Don't become stay? defensive as this will simply lead to a confrontational  Before deciding to leave, did you investigate a situation. Remember you want the employee to be as transfer within the company? honest as possible so listen carefully. You can always  Did anyone in this company discriminate against seek to verify information after the employee has left you, harass you or cause hostile working conditions? and the details they provide may prove beneficial to  Any other comments? improving staff retention in the future. E. Keep a Written Record VIII. SIGNIFICANCE OF AN EXIT INTERVIEW  Having a written record of the exit interview is The many benefits of exit interviews may be listed as essential to enable you to act on concerns raised to follows: reduce the chances of other staff leaving.  A significant proportion of employee leavers will be F. Arrange Exit Interviews in the Final Week of people that the organization is actually very sorry to Employment. leave (despite the post-rationalization and sour  Timing is important for an exit interview to be grapes reactions of many senior executives to the effective. Don't rush to conduct the exit interview as departure of their best people). The exit interview soon as the employee resigns as they may not be as therefore provides an excellent source of comment open about their real reasons for leaving if they know and opportunity relating to management succession they still have four weeks of work remaining. They planning. Good people leave often because they are may fear that information could leek to colleagues denied opportunity to grow and advance. Wherever about their reasons for leaving or that they will be this is happening organizations need to know about it treated harshly for the remainder of their time with and respond accordingly. the organization.  They provide an opportunity to 'make peace' with  disgruntled employees, who might otherwise leave VII. EXIT INTERVIEW QUESTIONS with vengeful intentions. Listed below are samples of the types of exit  Exit interviews are seen by existing employees as a interview questions that employers commonly ask sign of positive culture. They are regarded as caring departing employees. and compassionate - a sign that the organization is  What is your primary reason for leaving? big enough to expose itself to criticism.  Did anything trigger your decision to leave?  Exit interviews accelerate participating managers' www.theinternationaljournal.org > RJSSM: Volume: 01, Number: 11, Mar-2012 Page 42

understanding and experience of managing people improving the overall work atmosphere in the and organizations. Hearing and handling feedback is organization. In the ultimate analysis, organizations must a powerful development process. realize that there is no single solution to employee  The results and analysis of exit interviews provide turnover, but if exit interviews are properly conducted, relevant and useful data directly into training needs the feedback so received can be best used to improve analysis and training planning processes. organizational culture that paves the way for employee  Exit interviews provide valuable information as to retention and loyalty. how to improve recruitment and induction of new employees. X. PRIME CAUSES FOR EMPLOYEE TURN-OVER  Exit interviews provide direct indications as to how Generally, there are five major causes of employee to improve staff retention. turn-over. Those are;  Sometimes an exit interview provides the chance to 1. Corporate leadership - the strength of the vision and retain a valuable employee who would otherwise mission statement of the organization and the clarity have left (organizations often accept resignations far that the leadership offers to the employees; too readily without discussion or testing the firmness management culture; the level of respect and support of feeling - the exit interview provides a final safety that an employee enjoys at the workplace. net). 2. Career opportunities - as perceived by the employee  Exit interviews, and a properly organized, positive for his advancement; presence or absence of a well- exit process also greatly improve the chances of laid career graph in the organization; and the clarity successfully obtaining and transferring useful about such development plans provided by the knowledge, contacts, insights, tips and experience, organization. from the departing employee to all those needing to 3. Training support - opportunities to acquire new sets know it, especially successors and replacements. of skills as reflected in the organizational Most leavers are happy to help if you have the commitment to training and development of courage and decency to ask and provide a suitable employees. method for the knowledge transfer, be it a briefing 4. Compensation - pay structure, performance-linked meeting, a one-to-one meeting between the payments, recognition of performance by way of replacement and the leaver, or during the exit open acknowledgments etc. interview itself. 5. Job satisfaction - an employee's perception about the  Exit interviews help to support an organization's usage of his skills in the given job; his "fit" with the proper HR practices. They are seen as positive and job; and the balance that the job affords between necessary for quality and effective people- work and life. management by most professional institutes and accrediting bodies concerned with quality XI. PROPER MANAGEMENT RETENTION POLICY management of people, organizations and service. There are some general policies to consider that have been shown to improve satisfaction and in return, reduce the level of turnover that should be part of any formal IX. USEFULNESS OF EXIT INTERVIEW DATA The data collected from individual interviews must employee-retention program: be aggregated for the organization as a whole to identify  Properly incorporate new employees into the the prime causes for employee turnover. Depending on organization and manage their expectations and the size of the organization and the prevailing level of initial experiences with the organization – in fact, a employee turnover, such aggregation may be made large financial services firm found that it could semiannually, if not quarterly. The same may be made effectively reduce turnover among new hires by accessible to all those concerned with working climate in deliberately improving the process of socializing new the organization and its improvement. There is a strong employees into the corporate culture, particularly debate on the issue of making an outgoing employee's through the use of mentoring. feedback available to the immediate supervisor or  Establish and maintain both the practice and the manager. Some argue that anonymity must be maintained impression of fair treatment of all employees, so as by not giving specific feedback to the immediate to help foster a positive, consistent and reassuring supervisors of the outgoing employees, while others work environment. argue that sharing of feedback can be productive. In any  Ensure that senior management and immediate case no useful purpose would be served by keeping the supervisors demonstrate their own sense of proceedings of exit interviews away from the immediate commitment to the organization. supervisors. Hence, it is necessary that at least the  Communicate realistic and attainable expectations of interviewer share his understanding of the outgoing performance to all employees, so as to avoid the employee's feedback in generic terms with the concerned potential for “shock” and the development of supervisor or manager so that they would read just their dissatisfaction. management style for the common good of the  Offer clear-cut opportunities for job enhancement, organization. It should also be highlighted to the advancement and career development. supervisors that whether the feedback is positive or XII. CONCLUSION negative they should assess it objectively and non- Though exit interviews are being used extensively defensively to identify the value of the feedback for across all the industries, utilization of the information so www.theinternationaljournal.org > RJSSM: Volume: 01, Number: 11, Mar-2012 Page 43 collected is questionable. Lack of proper documentation 19. Louis Carter: Best Practices in Organization of the information and lack of follow up activity defeats Development and Change: Culture, Leadership, the very purpose of this interview. The information Retention, Performance, Coaching. collected during the exit interviews must be properly 20. Jim Clemmer: The Leader's Digest: Timeless documented so that a trend analysis can be made and principles for Team and Organization success. results analyzed. It is a common refrain that the senior 21. "Human Resources Outsourcing" Article Aon officers designated to conduct these interviews do not Consulting Forum. find time for the same. Action on the issues raised in 22. PROFITguide.com, "How to conduct an exit these interviews also has to be addressed with some interview?". urgency. Companies should note that inordinate delays 23. www.themanagementor.com, "Exit Interviews: not only undermine the employees' perceptions about the Roaches of the HR world". entire process but send negative signals about the 24. www.roulartaseminars.be company's commitment. Exit interviews are excellent 25. www.nettemps.com tools, the onus however lies on the organizations to utilize 26. www.recruitchina.com them not only as indispensable tools for retention, but 27. www.bizjournals.com also for the overall organizational development. 28. www.iupindia.in 29. www.themanagementor.com REFERENCES 30. www.fordgroup.com 31. www.profitguide.com 1. Randall S Schuler and Susan E Jackson: Strategic 32. www.insightlink.com Human Resources Management. 33. www.businessballs.com 2. David S Cohen: The Talent Edge: A Behavioral 34. www.asktheheadhunter.com approach to hiring, developing, and keeping top 35. www.etm.com performers. 36. www.insightlink.com 3. Sigmund Freud: New introductory lectures on Psychoanalysis. 4. Barney Olmsted and Suzanne Smith: Creating a Flexible Workplace: How to Select and Manage Alternative Work Options. 5. Morrell, K,. Loan-Clarke, J. & Wilkinson, A. (2001). Unweaving Leaving: The Use of Models in the Management of Employee Turnover. Research Series Paper 2001: 1. Loughborough University. 6. Mitchell, T. R., Holtom, B. C. & Lee, T. W. (ND). How to Keep Your Best Employees: The Development of an Effective Attachment Policy. Academy of Management Executive 15, (4): 96-109. 7. Kammeyer, J. D., Wanberg, C. R., Glomb & Ahlburg, D. (ND). Turnover Processes in a Temporal Context: It’s About Time 8. HR Executive Editorial Survey (2002). Workplace Turnover Study. Human Resource Executive Magazine 9. Employee Exit Interviews: An Important but Frequently Overlooked Procedure. 10. Business Research Lab: "The Exit Interview". 11. Knowledge Management: "Exit Interviews". 12. HRM Review, Dec’ 04; “Exit Interview”. 13. The headhunter, "Exit Interview", Stage Right by Nick Corcodilos. 14. Kammeyer, J. D., Wanberg, C. R., Glomb & Ahlburg, D. (ND). Turnover Processes in a Temporal Context: It’s About Time 15. 1. Melissie Clemmons Rumizen. The complete idiot's guide to knowledge management. 16. March, J. G. & Simon, H. A. (1958). Organizations, New York: Wiley; Hom, P. W. & Griffeth, R. W. (1995). Employee Turnover, Cincinnati: South- Western. 17. Robert A Giacolone and Paul Rosenfield: Impression Management in the Organization. 18. William Hendricks: Exit Interviews. www.theinternationaljournal.org > RJSSM: Volume: 01, Number: 11, Mar-2012 Page 44

Occupation Behavior : In context to Indian Scenario

Prof. Rosemary wilsone

  Change in occupation behavioral pattern with I. ABSTRACT modern trends and technological influence.

The study gives an insight of the change in occupation trends in India from pre-independence to post Independence. It also shows how caste system and society plays an IV. SOCIETY AND CASTE important role on the influence of individual choice to occupation and the change in trend from traditional outlook Society and culture highly influence the specific occupations to a more modern trend with the technological development. chosen by a person. Occupational behavior is influenced by Though there is a lot of advancement in every field and many components including one’s cultural beliefs and occupation in India still there are some occupations which societal norms. are segregated to a certain section of the society and are In medieval India, many castes are traditionally associated considered low and demeaning and are not considered an with an occupation, such as high-ranking Brahmans; ideal occupation for a certain class of the society. However, middle-ranking farmer and artisan groups, such as potters, as new occupations open up in urban areas, the barbers, and carpenters; and very low-ranking correlation of caste with occupation is declining. "Untouchable" leatherworkers, butchers, launderers, and latrine cleaners. There is some association between ritual II. INTRODUCTION rank on the caste hierarchy and economic prosperity. Members of higher-ranking castes tend, on the whole, to be Humans have a psychological need for occupation & when better-off than members of lower-ranking castes. they lack occupation they suffer. Occupation is the main According to the Rig Veda, sacred texts that date back to way that people a) occupy time b) find meaning and c) oral traditions of more than 3,000 years ago, progenitors of establish the flair to contribute productively to society the four ranked varna groups sprang from various parts of through life roles. Roles are the primary ways that persons the body of the primordial man, which Brahma created from express occupational behavior. clay (see The Vedas and Polytheism, ch. 3). Each group had Normal development influence the process of occupational a function in sustaining the life of society--the social body. behavior evident in a field of play (childhood) to work Brahmans, or priests, were created from the mouth. They (adult). In childhood, persons take on in occupations for were to provide for the intellectual and spiritual needs of the exploration; this evolves into the desire to learn and gain a community. Kshatriyas, warriors and rulers, were derived sense of competence. Finally, this process culminates in from the arms. Their role was to rule and to protect others. adulthood with the urge to master and achieve in tasks such Vaishyas--landowners and merchants--sprang from the as work and productive activity. Patterns of occupational thighs, and were entrusted with the care of commerce and behavior can be understood by reviewing one’s past agriculture. Shudras--artisans and servants--came from the interests and experiences. feet. Their task was to perform all manual labor. Later The model of human occupation (MOHO) grew out of Dr. conceptualized was a fifth category, "Untouchable" menials, Gary Kielhofner's states that humans are conceptualized as relegated to carrying out very menial and polluting work being made up of three unified components: volition, related to bodily decay and dirt. Castes are ranked in habituation, and performance capacity. Volition refers to the hierarchical order (originally, the system wasn't to have a stimulus for occupation, habituation refers to the process by hierarchy based on occupation or birth but purely on which occupation is organized into patterns or routines, and personality; this has been distorted somehow over time), performance capacity refers to the physical and mental which determines the behavior of one member of society abilities that inspire skilled occupational performance. over another.

III. OBJECTIVE Since 1935 "Untouchables" have been known as Scheduled  To understand the physical and social Castes, referring to their listing on government rosters, or environments in which the human occupation takes schedules. The most obvious problem with this system was place. that under its rigidity, the lower castes were prevented from  To emphasize on the impact of society and norms aspiring to climb higher, and, therefore, economic progress and its role on occupation behavior. was restricted. Castes are an aspect of Hindu religion. Other religions in India do not follow this system.

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V .MODERN OCCUPATION TRENDS VII.CONCLUSION Family affluence, castes, societal norms show a significant The occupational pattern of India has changed a lot since association to the occupation behavior in India. Activities independence. Several years ago as there was less such as farming or trading can be carried out by anyone, but technological development in the world most of the people usually only members of the appropriate castes act as were engaged in primary section of occupations like priests, barbers, potters, weavers, and other skilled artisans, agriculture, fishing, mining etc but with the progress in the whose occupational skills are handed down in families from technology through out the world most of the people have one generation to another. As with other key features of shifted from primary to secondary and tertiary sector of Indian social structure, occupational specialization is occupations. Technical and professional education helped believed to be in concurrence with the divinely designed these communities to break the shackles of traditional order of the universe. occupations with abysmal earnings and source of all socio- Occupations should be instrumental in providing cultural stigma and indignities. After independence, opportunities for a person’s psychological growth and Constitution of India has made provision of protective development. The natural challenges of engaging in typical discrimination policy, especially Reservation policy. occupations foster one’s ability to cope and adapt in Therefore many persons of Scheduled Castes left their productive ways. Occupational participation requires a traditional occupations and took responsibilities of new job certain degree of flexibility and adaptation by its own nature or position. Ethnographic studies have documented the and competence. A person can be motivated to alter his changes in occupational structure in Indian villages across occupational behavior if he finds something rewarding and castes over time. Several studies find clear evidence of meaningful about the process. An appropriate way to occupational mobility among low castes over time. motivate a person is to utilize the person’s internal resources by inquiring about one’s interest. India's rapidly expanding economy has provided the basis for a fundamental change-- The new middle class is REFERENCES: - booming, at least partially in response to a doubling of the salaries of some 4 million central government employees in 1. Cole M (2008) .Applied theories in occupational therapy. 1986, followed by similar increases for state and district 2. Kielhofner, G. (2008) Model of Human Occupation: officers. Unprecedented liberalization and opening up of the Theory and Application economy. This group is India's new middle class—mobile EXTERNAL LINKS :- driven, consumer-oriented, and, to some extent, forward- 1 .http://wiki.answers.com/ looking. This class encompasses occupations of prosperous 2. http://www.hinduwebsite.com/ farmers, white-collar workers, business people, military 3 .http://agniveer.com/series/caste-system-3/ personnel, and myriad others, all actively working toward a 4. http://www.hinduwisdom.info/Caste_System.htm prosperous life. Ownership of cars, televisions, and other consumer goods, reasonable earnings, substantial savings, and educated children (often fluent in English) typify this diverse group. Many have ties to kinsmen living abroad in MNC’S or onsite in IT companies doing very well. Although some educated Indians want to believe that caste or dowry system has been abolished or that "no one pays attention to it anymore," such statements do not reflect reality. The dowry demands during matrimonies depend on the occupation. Especially in South India, where every occupation has a set amount fixed and demand varies according to the occupation or caste of the groom/bride.

VI .FUNCTIONAL AND DYSFUNCTIONAL

Function is evident within a person when he or she is capable of seeking, undertaking, and adapting occupations that meet one’s personal needs as well as those of society. Dysfunction is evident when a person “suffers” from the lack of occupational fulfillment, competency, and/or achievement. Persons may report or exemplify a lack of self competence and mastery in occupational behavior. Role functioning is likely to be impaired.

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Awareness and its practicality on HIV/AIDS in higher learning institutions: a case of Dodoma University, Tanzania

Madan Mohan Laddunuri & Mary Mwaka

 1981. By 1986 all the regions in Tanzania Mainland had reported AIDS cases. By the end of 1999 there were 600, I. ABSTRACT 000 cases of HIV/AIDS and similar number of orphans (URT, 2001). Since then the HIV infection has spread The study gives an insight of the change in occupation rapidly throughout the country and hundreds of people have trends in India from pre-independence to post Independence. lost their lives. It also shows how caste system and society plays an important role on the influence ABSTRACT The national HIV prevalence rate among the sexually active population between 15 and 49 years was reported to be Most of the university students are at the age of adolescence 5.8%, with women having a slightly higher rate of 6.8% and young adulthood. This age group is sexually active and than that among men at 4.7% (NBS and TACAIDS, 2008). relatively higher HIV prevalence rate of transmission than HIV infection is heavily concentrated among young people general population. The youth including students are as they of 15-30 years of age (UNAIDS, 2008) and majority of tend to have shorter relationships with many partners before university students are in this age group. There are some marriage (THIS 2005). Though most of the university factors known to influence people to have heterosexual students are aware of HIV/AIDS but there is a large gap intercourse such as socio- economic, cultural, gender between awareness and real sexual practices. Findings of inequalities, and alcohol consumption and so on. Some of this study will contribute real situation of the awareness and these are considered to influence risky sexual practice sexual practices of the university students. despite the awareness one has on protecting oneself from A purposive sampling method was applied in the study in acquisition of HIV. Most of the intervention activities are selecting number of respondents to represent the different focused to improve the knowledge and skills that ultimately courses from the university. The students from each course influence a change of sexual behavior of the people. The were selected randomly regardless of their year of study. successful prevention efforts include the preventing high The researcher used structured questionnaire as a tool for risk sexual behavior, distributing and promoting condoms, primary data collection and documentary review for diagnosing and treating sexually transmitted illnesses secondary data. (STIs), voluntary counseling and testing, prevention of Most of the students were aware of HIV/AIDS and its mother to child transmission (PMTCT), ensuring safety of preventive programs. But very few students were not aware blood and reducing the stigma attached to HIV/AIDS of HIV/AIDS, those are likely to engage unsafe sex and they (Durant R, H, and Sander J, M 1998). may be cause of spread of the disease. More than three Higher learning institutions quarters of the students were aware of proper use of Most of the university students are at the age of adolescence condom. Two third of the respondents were aware of the and young adulthood. This age group is sexually active, sexual history of their partners. More than a half of the exploring and practicing sexual freedom from parents‟ ties respondents used condom in their first sex with current at their homes. The nature of camp-like residence and partner. Nearly half of the respondents used condom every interactions with their age mates and students at different time during their sex with regular partner. Most of the socio-economic status influence sexual accessibility and students having multiple sexual partners. Most of the indulgence. Universities and other higher learning students having awareness but its practicality is not institutions having similar nature and relatively higher HIV reflecting in their real sexual behavior. prevalence rate than the general population. Introduction The Tanzania HIV/AIDS indicator survey (THIS, 2005) In Tanzania the first cases were reported in 1983 at Kagera observed that HIV prevalence rises with the increase of region hospital in Bukoba district. This was two years after education and wealth. The youth including students are at a the very first HIV/AIDS cases were reported in USA in higher risk of sexually transmitted diseases and HIV/AIDS as they tend to have shorter relationships with many partners before marriage. (THIS 2005). A. M. T. P. Athauda, E. M. M. Ekanayake and G. H. I. Anjalee are with the Department of Ahribusiness Management, Faculty of Agriculture and Hence, by 2004 onwards most of the private and public Plantation Management, Wayamba University of Sri Lanka, Sri Lanka universities in Tanzania had established technical (corresponding author phone: +94-718-202-109; fax: +94-312-299-246; e- mail: [email protected]). HIV/AIDS sub-committees and implementing some HIV/AIDS intervention programs (Mbilima, 2004).There www.theinternationaljournal.org > RJSSM: Volume: 01, Number: 11, Mar-2012 Page 47 have been several campaigns, seminars through different Questionnaire communication media to advocate the HIV/AIDS Questionnaire is a tool of gathering information by filling prevention in universities, but the risky sexual intercourses answers to printed questions by the respondents. The still exist. questionnaire is provided to the respondents who are Rationale of the Study expected to read and write. The respondents have to answer the questions on their own and multiple choices. (Kothari, Higher learning institutions producing most skilled and 2004). productive manpower to any nation but unfortunately university students are more vulnerable to HIV/AIDS Pre -testing of the questionnaire was conducted for the epidemic. Though most of the university students are aware purpose of checking the weakness and ambiguity of the on HIV/AIDS but there is a large gap between awareness questionnaires. Ten respondents were involved in testing the and real sexual practices. It has been observed from the questionnaires in order to prove its validity and reliability. literature that there is no clear cut study on awareness of Data Entry, Cleaning, Storage and Analysis HIV/ AIDS and sexual behavior of the university students in Tanzania. Findings of this study will contribute real The data was collected and analyzed through the statistical situation of the awareness and sexual practices of the package for social sciences software (SPSS) after grouping university students. similar categories, coding and making summaries. Descriptive statistics such as frequencies and percentages Description of the Study Area were computed. The study was conducted in University of Dodoma which is Conclusions: located in Dodoma municipality. Dodoma municipality is the administrative capital of Tanzania. The Dodoma region Conclusions are drawn from the above data may be summed is the central part of the country. The university was selected up. The data above revealed that more than a half of for the purpose of present study according to convenience respondents opined that Students are relatively higher risk in based on distance and financial limitation of the researcher. engaging in unsafe sex and hence more likely to acquire HIV/AIDS. Most of the students were aware of HIV/AIDS University of Dodoma and its preventive programs. But very few students were not The University of Dodoma (UDOM) is located at aware of HIV/AIDS, those are likely to engage unsafe sex Chimwaga area about 8 kilometers from East of Dodoma and they may cause of spread of the disease. Majority of the town center. The University is within Dodoma District and respondents were aware of safe sexual practices. More than covers an area of about 15,000 acres (6,000 hectares). The three quarters of the students were aware of proper use of site has a very prominent view as it is situated in hilly area. condom. Remaining students didn‟t know how to use It is designed to a comprehensive university which will train condoms, numerically it might be less but they were higher and produce human capital in the major professionals for risk of acquiring the HIV. educational development. Two third of the respondents were aware of the sexual Study Population history of their partners whereas the rest were not aware. The groups of people who engage into sexual relationships The study was involved with undergraduate male and without knowing the sexual history of their partners are at female students of the University of Dodoma and the total student population of the university consist 14,173 students. an increased risk of HIV infection. This group is likely to be casual lovers who go to sexual relations without strong Sampling Procedure and size emotional attachment and commitment to their partners for A purposive sampling method was applied in the study in lifelong love but they respond to physical pleasure, desire selecting number of respondents to represent the different for sex and circumstances at that moment. faculties and courses from the university. This purposive More than three quarters of the respondents had experience study enabled the researcher to use judgment to select a of family discussion on matters related to HIV / AIDS given number of respondents that were considered to be the whereas the remaining had no such experience. The possible best in evenly answering the research questions and explanation for a substantial proportion of population failure objectives. The students who were willing to participate into to discuss sexual matters in the family are due to cultural the study were randomly selected regardless of their year of background of the respondents particularly in African study. The selected students were given the questionnaire to families, sexual matters should not be discussed openly and administer in presence of the researcher for clarification it is considered as a taboo. This is in line with other study when need arose. Two hundred students were selected from which suggests that, Parent- Adolescents closeness is the whole student population of the Dodoma University for associated with reduced adolescent‟s pregnancy, postponing the present study. intercourse, having fewer sexual partners and the use of Data Collection Methods contraceptives (Miller, McCoy, Olsen &, Wallace, 1986).When the parent/s is opened about sexual Data collection as a process of gathering specific information, adolescents are less likely to engage in sexual information aimed at providing or refuting some facts activity at an early age. (Kombo and Tromp 2006). The researcher used structured questionnaire as a tool for primary data collection and Majority of the respondents were diagnosed of their documentary review for collecting secondary data. HIV/AIDS status where as very few them opposite stand on testing for their HIV/AIDS status. It is a dangerous situation www.theinternationaljournal.org > RJSSM: Volume: 01, Number: 11, Mar-2012 Page 48 for the spread of HIV infection because universities are UNAIDS.(2008), “Report on The Global AIDS Epidemic” public places. Every student should go to the hospital for http:// www.unaids.org/en/knowledge centre/HIV Data testing of HIV infection. More than a half of the respondents Global Report 2008. used condom in their first sex with current partner. United Republic of Tanzania (URT, 2001), HIV/AIDS Remaining respondents are vulnerable to HIV/AIDS though Policy. Prime Ministers Office Dar es Salaam Tanzania. Pp they are educated and well aware of transmission of HIV 89. epidemic but those students failed to use condoms. UNAID (Joint Nations Programme on HIV/AIDS), (1998) Nearly half of the respondents used condom every time “Report on the Global HIV/AIDS epidemic”, UNAID, during their sex with regular partner while one third used Geneva, Switzerland condom sometimes and very few of the students didn‟t use {.www.unaid.org/bangkok2004/GAR2004-en-.htm- condom completely during sexual intercourse with a regular 68k}visited December 2009. partner respectively. Hence, nearly half of the respondents are at higher risk of HIV/AIDS, according to present study, UDSM HIV policy, 2006 , www.udsm.ac.tz because most of the students having multiple sexual partners and also some of the students already infected. Most of the students having awareness but its practicality is not reflecting in their real sexual behavior. References: Catania, J.A. Kegeles, S. M. and Coates, T.J. (1990), Towards an Understanding of Risk Behavior, An AIDS Risk Reduction Model (ARRM), Health Education Quarterly, 17(1), 53-72. Durant R, H, and Sander J, M (1998) Sexual behavior and Contraceptive risk Taking Among Sexuality Adolescent Female. Journal of Adolescent Health Care. Kombo, D.K.& Tromp, D. L. A. (2006). Proposal and Thesis Writing: An Introduction Nairobi: Paulines Publications Africa. Kothari, C. R. (2004), 2nd edition Research Methodology. Methods and Techniques, New Age International (p) Limited Publishers Delhi, India. Kegeles, S. M. Andrei, N. E., Irwin, C. E. (1988), “Sexuality Active Adolescents and Condoms”.Change Over One year in KnowledgE and Use.America Journal of Public Health 81: 168-171. Mbilima, M. and Mvungi, A. (2004), Study of African Universities Response to the Threat of HIV/AIDS in 12 Global HIV/AIDS Initiatives Countries, Country Report, Tanzania: Submitted to the Association of African Universities, Accra, Ghana. Miller, B. C., McCoy, J. K, Olsen, T. D & Wallace, C. M. (1986). Parental discipline and the control attempts to adolescent sexual attitudes and behavior. Journal of Marriage and the Family, 3, 502-511. National Bureau of Statistics and TACAIDS (NBC and TACAIDS,(2008), Tanzania HIV/AIDS and Malaria Indicator Survey 2007-2008.Dar Es Salaam Tanzania, Calverton Maryland, USA .45PP. THIS, (Tanzania HIV/AIDS Indicator Survey), 2003-2004 (2005). “Tanzania HIV/AIDS Indicator Survey”, Dar es Salaam, Tanzania.31-67pp. Tanzania Commission for AIDS ( TACAIDS) (2005). A New Look at the HIV and AIDS Epidemic in Tanzania, Dar es salaam, Tanzania 5-15pp. Tanzania Demographic and Health Survey (TDHS), (2005) Bureau of Statistics, Dar es Salaam 140_160. www.theinternationaljournal.org > RJSSM: Volume: 01, Number: 11, Mar-2012 Page 49

Annexure

Table1: Opinion of the students regarding the Risk of HIV /AIDS in Higher learning institutions

Response Frequency Percentage YES 112 56.0 NO 87 43.5 Missing response 1 0.5 Total 199 99.5 Source: Field data, 2010

The data from above table revealed that more than a half (56.0%) of respondents agreed that Students are relatively higher risk of HIV/AIDS due to unsafe sexual practices whereas the rest (43.5%) of the respondents were disagreed. Increasing the level of knowledge about HIV/AIDS does not guarantee in reduction of risk behaviour and adaptation of safe sexual behavior (Catania, J.A. Kegeles, S. M. and Coates, T.J. 1990,).

II. I. AWARENESS LEVEL OF THE STUDENTS ON HIV/AIDS

Table 2: Distribution of the Respondents by Awareness of HIV /AIDS

Response Frequency Percent YES 196 98.0

NO 4 2.0

Total 200 100.0

Source: Field data, 2010

The data above depicts that most (94.0%) of the respondents reported that they were aware of HIV/AIDS but negligible percent (2%) of them were not aware of HIV/AIDS and its preventive programs. Those who were not aware of HIV/AIDS are likely to engage unsafe sex and cause the spread of disease. Males are expected to be knowledgeable about sexual matters, whereas females who show knowledge or interest in sexual issues may be regarded as immoral or promiscuous. Communication on sexual matters for boys and men may consist in little more than boastful accounts of „conquests‟, whereas women and girls discuss issues more sensitively and intimately between themselves and within their families. For the greater part, virginity is highly prized in a girl, whereas in some cultures it is viewed with suspicion and concern in a boy.

Table 3: Distribution of the Respondents by Awareness of Safe Sex

Response Frequency Percent YES 169 84.5

NO 28 14.0 Missing response

3 1.5

Total 197 98.5 Source: Field data, 2010

The respondents were asked about awareness of safe sexual practices. The data shows that majority (84.5%) of the respondents were aware of safe sexual practices but few (14%) of the respondents were not aware. Those who were not aware of safe sexual practices, they were at high risk of HIV/AIDS and their population also substantial.

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Table4: Distribution of the Respondents by Awareness of Proper Condom Use

Response Frequency Percent YES 164 82.0 NO 34 17.0 Missing response 2 1.0 Total 198 99.0 Source: Field data, 2010

It is seen from the table, majority (82.0%) of the respondents were having awareness in proper use of condoms and the remaining (17%) of the respondents were not aware. Furthermore, those who reported that they are not aware of proper use of condom are at higher risk of acquiring the HIV. Condoms are an effective tool of preventing unwanted pregnancy, STDs, and HIV/AIDS and that it is the best way for those who cannot abstain from sex (Kegeles, S. M. Andrei, N. E., Irwin, C. E. 1988).

Table5: Distribution of the Respondents by having Knowledge of Sexual History of the Partner

Response Frequency Percent YES 119 59.5

NO 78 39.0 Missing response 3 1.5

Total 197 98.5

Source: Field data, 2010

The details furnished in the table regarding awareness of sexual history of the partner as below. Approximately, two third (59.5%) of the respondents were aware of the sexual history of their partners but one third of the respondents (39%) were not aware. The substantial number of the students engaged in sexual relationships without knowing the sexual history of their partners. Hence many students are at an increased risk of HIV infection. This group is likely to be casual lovers who go to sexual relations without strong emotional attachment and commitment and just responding to physical pleasure, desire for sex and circumstances at that moment.

Table6: Distribution of the Respondents by Discussion of HIV /AIDS Matters in the Family

Response Frequency Percent YES 157 78.5 NO 42 21.0 Missing response 1 0.5

Total 200 100.0

Source: Field data, 2010

It is found that more than three quarters (78.5 %) of the respondents had experience of family discussion on HIV / AIDS matters but twenty one percent of the respondents did not have such experience of family discussion on HIV/AIDS. The possible explanation for a substantial proportion of population failure to discuss sexual matters in the family are due to cultural background of the respondents. Particularly in African families, sexual matters should not be discussed openly and it is considered as a taboo. This might have a detrimental impact on youths and the community as they hinder the timely and right message on HIV prevention. This is in line with other study that, Parent- Adolescents closeness is associated with reduced adolescent‟s pregnancy, postponing intercourse, having fewer sexual partners and the use of contraceptives (Miller, McCoy, Olsen &, Wallace, 1986).

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The absence of parental supervision and limited family dynamics in terms of discussion about sex predispose the young to sexual risk behaviors. The regular discussions are needed in order to fully understand the precise mechanism by which family discussion of sexual matters influence youth sexual risk taking. (Miller, McCoy, Olsen &, Wallace, 1986).

III. STUDENTS SEXUAL BEHAVIORS AND PRACTICES

Table7: Distribution of the Respondents by Testing HIV/AIDS

Response Frequency Percent YES 160 77.0 NO 40 23.0 Total 200 100.0 Source: Field data, 2010

The table above shows that three quarters (77%) of the respondents reported that they were gone for voluntarily testing of HIV/AIDS. But one quarter (23%) of the student‟s were not diagnosed of their HIV/AIDS. It is a dangerous situation for the spread of HIV infection because universities are public places. Every student should go to the hospital for testing of HIV infection.

Table8: Distribution of the Respondents by Condom Use with a Current Partner in First Sex

Response Frequency Percent YES 119 59.5 NO 76 38.0 Total 195 97.5 Source: Field data, 2010

The table above depicts that more than a half (59.5 %) of the respondents were using condoms in their first sex with current partner. Remaining (38.0 %) of the respondents did not use condoms in their first sex. who were not using condoms during their first sex episode they are more vulnerable to HIV/AIDS. Though they are educated and well aware of transmission of HIV epidemic but they were failed to use condoms in their first sex.

Table9: Frequency of the Condom Use with a Regular Partner

Response Frequency Percent Every time 105 52.5 Sometimes use condom 60 30.0 Don‟t use for a regular partner 24 12.0 No Response 11 5.5 Total 200 100.0

Source: Field data, 2010

It is evident from the above table that nearly half (52.5%) of respondents were using condoms every time during their sexual intercourse with their regular partner. Very few of the respondents (5.5%) did not give any response for this question. But 30% of the respondents were using condoms sometimes, and 12% of the respondents didn‟t use the condoms completely with a regular partner. Hence, nearly half of the respondents are at risk of HIV/AIDS, according to present study, because most of the students having multiple sexual partners and also some of the students already infected.

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Table10: Distribution of the respondents by having multiple sexual partners

Response Frequency Percent Having one sexual partner 10 5 Two sexual partners 86 43 More than two partners 96 48 Don‟t have any partner 6 3 No Response 2 1 Total 200 100.0

Source: Field data, 2010 It is observed from the table-10 that nearly half (48%) of the respondents having more than two sexual Partners and 43% of the students having two sexual partners .If we add together it accounts 93% of the Respondents having more than one sexual partner .it is evident from the above data, Most (93%) of the Students having multiple sexual partners .But very few (5%) of them having single sexual partner and 3% of the respondents did not have any partners.

www.theinternationaljournal.org > RJSSM: Volume: 01, Number: 11, Mar-2012 Page 53

Parents’ perspective towards Pester power

Kapil Choudhary, Assistant Professor, Deparment of Computer Sciences, Hindustan Institute Of Management & Computer Studies, India

Garima Tiwari, Assitant Professor, Department of Business Management, Anand Engineering College, India

available with parents. A parent buys the product if it quiets Abstract the children temporarily. The kids of today’s world are considered as savvier of the environment surrounding them then the children say , 10 Objective of the study years back. The grasping power is phenomenal because of  To study the reasons why parents buy products as per the repeated exposure given to them through various broad their child’s recommendations. casting and electronic mediums. The result is they ask for  To what extent kids can persuade the buying decision of more. With the increase in number of working couples, the their parents for the products of their direct and child’s nagging becomes inversely proportional to the time indirect use. available with parents. Marketers are very much aware of  To know the opinion of parents on the marketer’s effort these facts and as consequence they have shifted their on targeting their children. marketing campaigns from adults (parents) to children. Literature review This paper tries to give an insight of parent’s retort towards Four types of parents have been identified through research: such nagging called as pester power because if children are 1) "bare necessities" types, with no inclination to buy; 2) pesky for their recommendations of purchase, the reason "kid's friends"; 3) "indulgers", often working mothers and however could be they are very well-versed with the separated fathers; and 4) "conflicted", who don't want to buy products information, sometimes times better informed than but will. Advertisers know that different buttons work on the their parents, and they want nothing but the best. different groups however it seems that children nag the first group with the importance of the product and the power of Keywords: Parents, kids, Pester Power, positive effect. persistence works with the last three groups. Marketers have always appealed to children to persuade Introduction their parents to loosen their purse strings. Putting toys in cereal packs, giving away toys with fast food and using Children are a very large market. Spending by children aged sports heroes to promote anything from breakfast cereal to 4 to 12 was estimated to be over $24 billion in 1997 – an clothing are all tactics that were used in a less complicated increase of almost 300 percent from 1991! McNeal's age. However advertising to children and young people is research indicates that the children learn to shop, at least in changing as kids become more cynical and also they begin part, by going shopping. Retailers are developing programs to use a greater variety of media. based on these learning patterns. Nevertheless, when you continually hear the same constant message from a child or young person then that message For most marketers, achieving a high involvement often becomes the norm, which makes pester power so relationship with both parents and the kid is a priority. powerful and difficult to resist. Parents react hysterically to brands that try to hook their little ones. WHY PESTER POWER IS SUCCESSFUL IN 21ST CENTURY? They know that kids pay attention to the advertising when Pester power refers to children’s ability to nag parents to they watch TV.A marketer tries to develop a strategy, which purchase food or other items they might not otherwise buy. targets the kids and influences them totally, so that next time The reasons which are prevailing the pester power in the they are out with their parents, they get what they want i.e. kids could be: what they see in ads. Impulse purchases due to POP 1. Marketing to children is all about creating pester promotions also play an important role, too. One advertising power because advertisers know what a powerful company that uses this strategy has found that between 20 force it can be. and 40 per cent of purchases of food, movies and games 2. Parents are having fewer children and thus wouldn't have occurred unless a child pestered an adult. spending more on each child. 3. Parents are having children later at a time when Children being vulnerable are easily influenced by ads on they are beyond the struggle phase in their career. television and this activates “pester power”, i.e., where the 4. Young professionals purchase presents for children children stalk their parents to purchase products they want. to compensate for lack of time they are able to With the increase in number of working couples, the child’s spend with them. pester power becomes inversely proportional to the time www.theinternationaljournal.org > RJSSM: Volume: 01, Number: 11, Mar-2012 Page 54

5. Children are known to have strong tastes and Findings are based upon the response towards the preferences, and advertising surely has an impact questionnaire and interview focused on the parents falling in on them. the family life cycle stage –Full nest I and Full nest II. When asked from parents, how frequently your child Marketers intentionally plant the seeds of brand recognition watches television, (80%) parents responded that whenever in very young children in the hopes of cementing a lifetime their children are free, they prefer watching television. relationship. As adults many of us have fond memories of Option1: Whenever free (80%), Option2: 2-3 times / week favorite cookies, candy, and burger restaurants we visited as (17%), Option3:4-5 times / week (3%), Option4: Once/week children. Companies market nostalgic candy brands to (0%), Option5: Every time (0%). adults who long for childhood treats. But the difference between our childhoods and those of For how many hours the child watches television, for children today is the ubiquitous presence of food advertising maximum two hours (45%), children are allowed to watch – TV, internet, social networking, cell phones, school the TV. events, and vending machines. Many companies employ Option1: One hour (40%), Option2: Two hours (45%), “buzz marketing.” They get the coolest kids to wear their Option3: Three hours (13%) clothes or sip their drinks so other kids will elevate the Option4: Four hours (2%), Option5: More than Four hours product to trendy and cool. (0%). Fast food and cereal companies have been cultivating brand recognition with children for decades. Cracker Jacks was As expected, children’s first choice is watching cartoons one of the first companies to capitalize on children’s love of (55%), also sports (35%) and daily soaps (10%) are the parts collecting things by hiding a toy at the bottom of each box. of their likelihood, when asked , what does your child Restaurant chains often pack movie or cartoon characters in watches the most on television. kid’s meals setting up parents for return visits to accumulate Option1: News (0%), Option2: Sports (35%), Option3: the entire collection. Cartoon (55%), Option4: Daily soaps (10%), Option5: Any Ad agencies are eyeing kids as young as 3 years old as other (0%). potential customers of the future. Young children cannot distinguish between commercials and regular programming. To our surprise, a huge percentage of children (75%) were It isn’t until about age 8 that a child understands found, taking good interest in watching advertisements, advertisements are separate from programs and that they when asked that does your child notice ads while watching may not always be truthful. When it comes to food, few his or her favorite show. commercials, less than 5%, are for wholesome unprocessed Option1: Very much interested (75%), Option2: Interested foods like apples, cherries or milk. The vast majority of ads (20%), Option3: Neither interested nor disinterested (2%), are for restaurants, candy, soda and presweetened cereals. Option4: Little bit interested (3%), Option5: Not at all Children see these ads and when they go with their parents interested (0%). to the supermarket or mall, pester power kicks into overdrive. The pull strategies (sales promotion) adopted by the firms Parents are often unaware of the tremendous influence all are the main focus of children in a particular advertisement, this ad exposure has on forming children’s opinions and that attracts them the most while watching a particular TV brand recognition. Sometimes we think it is cute when a ad. toddler recognizes a logo or food product. But, this Option 1: Product Attributes (5%), Option2: Brand endorser recognition comes with a price, opinions are being formed (25%), Option3: Presentation of advertisement (15%), and desires channeled which parents may find hard to Option4: Claim of advertisement (15%), Option5: Sales change. promotion strategies adopted by the firm (40%).

Research methodology The parents admitted the fact that children behave stubborn To attain the identified objectives of this research work, every time (45%) they are taken along for shopping. questionnaire and interview methods were used to generate Option1: Most of the times (30%), Option2: Sometimes data from parents falling in the family life cycle stage –Full (20%), Option3: Rarely (5%), Option4: Never (0%), nest I and Full nest II. They were contacted to find the effect Option5: Every time (45%) of advertising on them and targeting children for the purpose of marketing. The primary and secondary research Is TV, the reason for such nagging behavior of your child, designs have been adopted. An effort was also made to find 56% parents said YES they identify TV ads to be the reason the influence of children in purchase decision of products for such stubborn nagging behavior. for their direct or indirect use. Opinion of parents on the Option1: Most of the times (35%), Option2: Sometimes marketer’s effort on targeting children was also studied. (7%), The universe was selected from Agra city, sample size was Option3: Rarely (2%), Option4: Never (0%), Option5: 100 couples in full nest I &II – family life cycle stage. The Every time (56%) questionnaire was filled by parents, found shopping in both organized and unorganized markets. When asked that do you take your child for shopping 60% parents responded most of the times. Findings Option1: Most of the times (60%), Option2: Sometimes (13%), www.theinternationaljournal.org > RJSSM: Volume: 01, Number: 11, Mar-2012 Page 55

Option3: Rarely (10%), Option4: Never (1%), Option5: Every time For the question asked to the parents that, Have you ever (15%). purchased a product as per yours child recommendations, parents answered that they not only listen to their child 40% parents said that their children try to convince them to recommendation to purchase but also purchase products purchase the product of their choice. accordingly most of the times (40%). Option1: Most of the times (40%), Option2: Sometimes Option1: Most of the times (40%), Option2: Sometimes (30%), Option3: Rarely (10%), Option4: Never (0%), (30%), Option3: Rarely (10%), Option4: Never (0%), Option5: Every time (20%). Option5: Every time (20%) The prominent reason why parents take children for Maximum recommendations of children are accepted for shopping is that they are more aware than parents about food and beverages (60%) then for FMCG products (15%) frauds (42%); they carry better knowledge about the gadgets like laptops, I-pods etc (14%) and consumer products (30%). durables like home appliances (10%) when asked, normally Also there is no one to take care of the children (20%) is one in the purchase of which consumer non durable product; do of the selected reasons, as mother father both are working. you value your child’s recommendation? Option1: Child carries better knowledge regarding a product Option1: Food & Beverages (60%), Option2: Consumer (30%) durables (10%), Option3: FMCG products (15%), Option4: Option2: Child is more aware about the frauds in the Gadgets (14%), Option5: Personal care (1%) market (42%) Option3: There is nobody to take care of him while I am For the question asked, what is the normal expenditure level away (20%) that your child insists on a weekly basis, the parent’s Option4: Just for an outing I take him along (8%) response was Rupees 400-500 is the maximum (40%) Option5: Any other reason (0%) insisted expenditure level recommended by children to get their nagging fulfilled. A remarkable 30% insists for more Toys and games (40%) come first then the food items (30%) than rupees 500 expense was registered. in the shopping list of children. Parents answered this when Option1: 100-200 (5%), Option2: 200-300 (10%), Option3: asked about the preferred list of products of children for 300-400 (15%), Option4: 400-500 (40%), Option5: 500 and which they nag. above (30%) Option1: Food items (30%), Option2: Toys and games (40%), Option3: Clothes (5%), Option4: Electronic items (20%), Option5: Any other (5%). Conclusion As a conclusion of the study we come across these points When tried to understand the level of acquaintance provided which collecting information from the parents: by parents towards their children recommendations; parents Parents are dual earning now and could not manage enough sometimes (40%) value their child’s suggestions while time for their kids every day. To pacify this lacuna of time, purchasing the product. However there are 35% of parents they take their children along with where ever they go after in the selected universe who value their children’s their job hours. These places a several times lends up at a suggestion every time. shopping place. However besides this, the study reveals that Option1: Most of the times (35%), Option2: Sometimes parents accompany their kids for shopping because of their (40%), Option3: Rarely (25%), Option4: Never (0%), extended exposure towards the marketer’s offerings, which Option5: Every time (0%). many-a-times helps them select a suitable product (attribute- wise and price-wise) in lesser time for the family , which is When asked to indicate the reason for parent’s valuing their a recommendation of their kids. children suggestion while making the purchase decision are Mostly, parents get perused by their kid’s suggestions when they fed-up of the child nagging (35%). Also the child the product is not very costly and generally of the daily carries better knowledge about the brands available (30%). usage irrespective of fact that the goods purchased are of Option1: Child carries better knowledge about the product their direct or indirect use. The recommendations made are (15%) purely based on the best deals, as in the maximum the pull Option2: Child knows more about the brand available (30%) (strategy) by the marketer the maximum the purchase, Option3: Fed up of their child nagging for a particular which is inversely proportional to brand loyalty- also a product (35%) characteristic of pestering depicted by children and observed Option4: They don’t want to disappoint their child by not by parents. valuing his decision (20%) Option5: Any other reason (0%) However, parents agree that children nag a lot while making a purchase decision, and behave abruptly if the purchase Mostly (42%) parents get convinced as per their child’s decision is against their recommendation, however they recommendation as they carry better exposure of the agree that the reason for such pestering is the varied offerings then the parents. exposure of offerings through various sources facilitated by Option1: Most of the times (42%), Option2: Sometimes marketer through an effective promotion mix, which thereby (30%), Option3: Rarely (20%), Option4: Never (8%), allows the kids to get informed well, can make a Option5: Every time (0%) comparative analysis of products and can choose nothing but the best. Now this facilitates the parents to buy a finest www.theinternationaljournal.org > RJSSM: Volume: 01, Number: 11, Mar-2012 Page 56 products based on the updated and reliable information and Times of India: provided by their own kids which is the positive effect of http://articles.timesofindia.indiatimes.com/2012-01- pester power, however cannot be ignored. 6/mumbai/30597511_1_brands-dettol-suri-cruise

Hindustan Times: References http://www.hindustantimes.com/StoryPage/Print/768693.asp x Consumer behavior by Michael R Solomon, Chapter 1: How marketers manipulate consumers, Page no. 3-28. Hindustan Times: http://www.indiafoodbrief.com/news- archives/133-march-2010/33562-purse-string-power- Consumer behavior by Michael R Solomon & Gary hindustan-times Bamossy, Chapter 3: Shopping, buying, evaluating, Page no. 59-86.

Simplicity parenting by Kim John Payne & Lisa M. Rose www.media- awareness.ca/english/parents/marketers_target_kids.cfm www.emeraldinsight.com/journals.htm?articleid=1648600 www.guardian.co.uk/.../pester-power-parents-spend- children-Christmas-presents www.mendeley.com/research/wordofmouth-marketing- beyond-pester-power/ www.esomar.org/.../research_papers/In-Depth- Interviews_1011_Is-pester-power-dead.php www.scribd.com/doc/36632325/Pester-Power-Research- Paper www.ask.com/pester-power-and-kids www.aph.gov.au/library/pubs/rp/2010-11/11rp09.htm www.tnsglobal.com/_assets/files/The_power_of_packaging .pdf www.naturalnews.com/pester_power.html www.siescoms.edu/.../Pester_Power_Is_a_Buyer_s_Decisi on_Persuaded.pdf. www.emeraldinsight.com/journals.htm?articleid=1648600 &show=html www.consume.bbk.ac.uk/...papers/Boden%20Working%20 Paper2.doc www.indianjournalofmarketing.com/ www.mbaskool.com/...articles/.../1083-pester-power-the- influential-kids.html www.businessstandard.co.in/india/news/...pester- power/435288/ www.accessmylibrary.com/coms2/summary_0286- 19648636_ITM www.campaignindia.in/Article/232840,pester-power-at- the-heart-of-new-lenovo-campaign.aspx

Times of India: http://articles.timesofindia.indiatimes.com/2007-11- 4/delhi/27983100_1_organic-colours-eco-schools

Times of India: http://articles.timesofindia.indiatimes.com/2005-02- 06/india-business/27868106_1_cartoon-network-new- channels-turner-international-india

www.theinternationaljournal.org > RJSSM: Volume: 01, Number: 11, Mar-2012 Page 57

The Indian Microfinance Predicament-Evidence in Literature and Practice

Dr. Sarita Vichore, Associate Professor, Durgadevi Saraf Institute of Management Studies, S.V. Road, Malad West, Mumbai – 400064

Abstract On October 15, the government of Andhra Pradesh, India‘s The downbeat development in Indian Microfinance has fifth-most-populous state, issued an ordinance aimed at taken the world of microfinance by surprise. An industry protecting women who ―are being exploited by private that grew at 90% on an annual basis from 2002-03 to 2009- microfinance institutions through usurious interest rates and 10 was reduced to just 7% growth in 2010-11 with its coercive means resulting in their impoverishment and in portfolio over the period October 2010 (when the crisis some cases leading to suicides.‖ The ordinance seems started) to the end of the year 2011 estimated by M-CRIL to designed to quash microcredit in the state, where it has fall by around 33%. As measured by CRILEX, M-CRIL‘s grown explosively in the last five years through a process of growth index for microfinance, India‘s microfinance commercialization that has brought ample capital and made industry is estimated to have reached 9,000 by 30 September millions for some investors and founders.( David Roodman, 2010 but to have fallen back to just 6,000 a year later. How 2010) such a situation came to pass is the stuff of legend, repeated Unfortunately, the ground truth remains murky for those many times over in the history of industrial growth – a slow removed from the situation. On the one hand, the harm of growth ―tortoise‖ phase, an accelerating ―nimble hare‖ microcredit appear exaggerated in much of the current phase, an uncontrolled growth ―charging bull‖ phase and, rhetoric: the inflammatory suicide charges may have been now, a ―bewildered deer‖ caught in the headlights of ginned up by the papers and political players with vested draconian regulation, uncertain which way to go. interests in other forms of microfinance. Still, there is good The wave of transforming a public purpose, not for profit reason to worry that the fast expansion has gotten many institution to a for-profit framework have shifted the poor people into debt trouble—into situations in which strategic focus of Indian Microfinance from serving poor repayment is coerced, verbally or even physically, by peers borrowers to earning profits for the promoters. The purpose and loan officers. What is beyond doubt is that the Indian of this study is twofold. Firstly, this paper discusses how the microcredit industry, the largest in the world, is in serious giant microfinance company (SKS) after taking a peril; and that this crisis is sure to seed discussion transformation root to commercialization (Commercial worldwide about whether and how microfinance institutions Transformation) has focused only on the promoters profit (MFIs) can commercialize responsibly.( David Roodman and not the investors. This slowly and steadily killed the tool 2010) of microfinance. Secondly, the paper focuses on understanding what caused microfinance in India to trip, and 2. Literature Review is also the first step in identifying the lessons the world can learn from the fall. The growth of MFI‘s have recorded about 8.5 million clients during the year 2008-09, a growth of 60% over the previous year. More than 50 percent of low income households are Key words: Microfinance, Microfinance Institutions, covered by some form of microfinance product. Nagesh Commercial Microfinance, Commercial Transformation, Naarayana (2009) Public Purpose Institution, Not -for-profit Institution. There are different arguments concerning how to evaluate the performance of microfinance institutions. Meyer (2002), Citing from Zeller and Mayer (2002), indicated that there is what is called ―Critical Microfinance Triangle‖ that we need 1. Background and Introduction to look at it to evaluate Micro-Finance institutions based on their objective. Here, the corners of the triangle represent The ―great Indian microfinance crisis‖ is directly outreach to the poor, financial sustainability and welfare attributable to the success of SKS at raising funds from impact. And ―Performance criteria are required for each commercial sources over a number of years and more objective and all three must be measured thoroughly to specifically to its IPO which followed from Compartamos‘ evaluate micro-finance performance‖, noted Meyer (2002). successful first foray into the public capital market. While Navajas et al (2000), similarly indicated that there are six the success of SKS in raising substantial funds in the years aspects of measuring outreach : depth, worth of users, that preceded the IPO may have seemed to be the industry‘s breadth, length and scope. Where, depth of outreach refers salvation, in practice it has turned out to be its downfall. to ―the value the society attaches to the net gain from the use Microfinance in India, and much of the rest of the world, of the micro credit by a given borrower‖, Navajas et al. may never be the same again. (Sanjay Sinha,2011) (2000). The microfinance institutions participation in several developing economies is escalating from time to time. www.theinternationaljournal.org > RJSSM: Volume: 01, Number: 11, Mar-2012 Page 58

Various studies on different countries on the performance of and a donation by the Society to the clients as individuals the MFI‘s confirm this (Adongo and Stork 2005, Zeller and was deposited with the MBTs. As private trusts, the MBTs Meyer 2002, Meyer 2002 ) were permitted to invest their funds in any way mandated by the members of the trust. The members having reposed their 3.Research Objective ―trust‖ in the trustees, consisting of three employees of SKS and two beneficiary members each, were advised to invest The purpose of this study is twofold. Firstly, this paper their money in the NBFC making, thereby, a start-up equity discusses how the giant microfinance company (SKS) after contribution of Rs2.05 crore – sufficient to meet the Reserve taking a transformation root to commercialization has Bank of India‘s minimum capital requirement for SKS focused only on the promoters profit and not the investors. Microfinance to be registered as an NBFC. This slowly and steadily killed the tool of microfinance. Secondly, the paper focuses on understanding what caused it to trip is the first step in identifying the lessons the world can learn from the fall.

4. Methodology

To understand how the giant microfinance company (SKS) after taking a transformation root to commercialization has focused only on the promoters profit, has been researched Source :-Sanjay Sinha ― IPO: Field‘s Salvation or downfall‖ by reviewing the literature done in past and also studying Commissioned Work Shop Paper, November 2011. the working papers which are currently been researched. It took SKS a while to overcome the hump of RBI This connects with the theoretical background of the registration, receiving the NBFC licence only in late 2005 so research. For the analysis of MFI, the study of M-Cril, that the complete transfer of portfolio to the new NBFC NABARD and relevant publication on the development of could not take place conveniently until the end of March related area in the country is been studied. Also Interviews 2006 (the end of the Indian financial year). At this point with experts in the area of micro finance is conducted. SKS Microfinance Ltd had a readymade portfolio of Rs78 These interviews are semi-structured. Semi-structured crore ($17.5 million) which was transferred from the interviewing starts with more general questions and topics society. At the launch of NBFC operations, SKS also relevant to Micro finance especially related to the moral, received additional equity capital from SIDBI, the Ravi and ethical and governance implications of Commercial Pratibha Reddy Foundation, the Unitus Equity Fund and a Microfinance in India. In some cases due to the sensitivity high net worth individual, Vinod Khosla – all development of the issue and special request of the interviewee the names investors. Further funds of Rs4.5 crore ($1 million) were of the interviewee are kept confidential. transferred from the society to the NBFC as equity via the 4.1 Commercial Transformation MBTs as client equity. Over the next four years a series of private investors put Following the pattern outlined in the pathway( Figure 1) equity capital into the company which grew at fantastic SKS was established as an NGO (a registered Society) in rates. Its portfolio increased from just over $20 million at 1997, and worked initially with donor funds and borrowings end- March 2006 to around $960 million under management from development lenders like the Small Industries by end-March 2010, a compound growth rate of 161% per Development Bank of India (SIDBI). The process of annum. The number of its borrowers (clients) grew from just transformation to a commercial entity started in 2003. A 173,000 in March 2006 to 5.8 million in March 2010 – a company titled, SKS Microfinance Limited was registered compound growth rate of 140% per annum. and to fulfill the requirements of the regulator, applied for In order to enable this high growth rate, SKS naturally had registration to function as a finance company (known in to raise additional capital from equity investors and, with India as a non-bank finance company, or NBFC). However, Vikram Akula‘s PR skills and connections via his earlier in order to qualify for registration as an NBFC, a company work with McKinsey, it was able to do this most must have a minimum equity capital of Rs2 crore successfully. Thus, as set out in the company‘s IPO (~$450,000). At this stage of development of the prospectus, SKS had a galaxy of private equity investors microfinance industry no investors were available to provide both international and Indian by May 2010. In addition, capital of this magnitude and, even if they had been, the Vikram himself and some of the top executives of the founder, Vikram Akula, would not have been able to retain company had acquired significant shareholdings through management control of the company if he had accepted devices such as sweat equity contributions and share equity investments from another party. In Mexico, the allotments at discounted prices. To be fair, the shares of the problem of minimum capital could be easily resolved by the MBTs had also multiplied in the meantime through bonus NGO investing directly in the new commercial company but issues resulting in their holding 16.1% of the pre-issue share Indian law does not allow a Society (a ―not for profit‖ capital of over 10 million shares, having started in 2006 with institution) to invest in any form of equity or for-profit just over 6.5 million and an investment of $7.1 million. At structure. the pre-IPO selling price of Rs636 ($14.15) per share, this In order to overcome this problem an ingenious solution was was worth $146 million or over 20 times the original found; the 16,600 borrowers (clients) of SKS society at that nominal investment. Other promoters – Sequoia, SKS time were formed into five Mutual Benefit Trusts (MBTs) Capital and Unitus – having paid somewhat higher average www.theinternationaljournal.org > RJSSM: Volume: 01, Number: 11, Mar-2012 Page 59 prices for their shares stood to earn lower but still very high from the public capital market was possible and it should, multiples on their equity holdings at this time. therefore, fast-track its own progress towards an IPO. The total shareholding in SKS NBFC before the IPO consisted of 64.5 million shares valued at a total of $911 million. With a net worth of around Rs9 billion at the time, this represented a price to book value ratio of the order of 4.5 and a price to earnings ratio of around 16. In the event, with the share issue oversubscribed 13.7 times, the price settled at Rs954 ($21.20). Thus, SKS was valued at a total of $1.5 billion at a price to earnings ratio of around 25 with the price at around 7 times book value. The $368 million raised via the IPO was less than the $450 million proceeds of the Compartamos sale but it increased the SKS capital of around $200 million by over 80% (or $163 million) while the proceeds of the Compartamos sale went exclusively to the existing shareholders. Thus, SKS greatly enhanced its ability to leverage further growth. The subsequent rise in the value of the share on the stock market to a peak of Rs1,490 Source: - M- CRIL ($33), over 50% higher than the issue price, within two Figure 3 shows that while SKS may have been influenced months of the IPO, shows how brightly investors viewed the in its decision to move towards an IPO by the success of future prospects of SKS until the Andhra Pradesh (state) Compartamos, its leading competitors in the Indian market government intervened in the practice of microfinance in the were also growing fast. By March 2010, the four largest state, causing a major crisis in Indian microfinance. In a competitors of SKS – Spandana, SHARE, Asmitha (a sister sense SKS had proved its ability to raise increasing sums of company of SHARE) and Bandhan – had 1.3 million to 3.6 commercial capital from the capital markets in order to million borrowers and portfolios to match (ranging from ―eradicate poverty…by providing financial services to the $300 million to $800 million). By 2009, with increasing talk poor…‖( quote from SKS‘s website). If this experience of an SKS IPO, each of these had set its sights on an IPO. could be repeated by other MFIs it would release substantial The impact on their growth rates was salutary. and growing sums of money for on-lending to low income families (if not necessarily the poor). While the development-oriented SKS was, thus, fully launched on its mission to ―eradicate poverty‖ through fund raising via the ―capitalist road‖, it is interesting to examine the timing of its actions along the way. Figure 2 shows the pattern of growth of the leading Indian MFIs during the period 2006 to 2008

Source :- M- CRIL

It is apparent from Figure 4, that 2009 saw another inflection point in the growth of the largest MFIs. While SKS continued to grow along the path it embarked on in 2007, the others visibly accelerated in 2009-10, in order to prepare for their own IPOs as soon as the results of the SKS foray were known. The result was that despite the large numbers of borrowers already covered by Indian microfinance by then, around 15 million clients by end- Source :- M-Cril March 2009, growth continued at the same blistering pace It is apparent that while some of the largest rivals of SKS seen over the past few years were growing fast during this time, SKS was growing even faster (albeit from a smaller base) and in the financial year 4.2 Profitability Vs Value to Customers 2007-08 accelerated its growth. While in the previous year it In the meantime, not only did the intensifying competition doubled the number of clients and tripled its portfolio size, not bring down the cost of loans to borrowers, it actually in the following year (on a substantially larger base) it grew increased it. The 2010 biannual review of Indian its portfolio four times and client numbers by a factor of microfinance by M-CRIL( M-CRIL Microfinance review five. Thus, it is more than likely that the inflection in its 2010) shows how the portfolio yield has increased over the growth path occurred because SKS decided that fund raising www.theinternationaljournal.org > RJSSM: Volume: 01, Number: 11, Mar-2012 Page 60 past few years and particularly in the period since 2006 March 2010, over 80% of active borrower accounts9 (Figure 5). This is contrary to expectation, with increasing serviced by Indian MFIs were with (commercial) NBFCs. competition in Indian microfinance there ought to have been a downward trend in yields but the reality points to oligopolistic behavior as each of the leading MFIs pursued the goal of maximizing profitability as well as growth.

4.5 High Valuations:-

The advent, meanwhile, of high valuations in return for expected future profits – which sparked this rush to commercialization – began with the sale by SKS of its shares to Sequoia (a private equity firm) and continued with the sale of the equity of SHARE Microfin Ltd to Legatum

Source :- M-CRIL followed by other similar deals. Each of these is reported to have fetched the promoters fantastic valuations in the range 4.3 Multiple lending 5-11 times book value. In the Indian context, it is apparent that equity investors were swayed both by the ability to M-CRIL estimates that these practices resulted in around grow (and simultaneously generate profits) and by the 40% overlap in those easy to reach clusters (nationwide) tantalizing prospect of a huge and still apparently where microfinance operations became established. These underserved market. The total apparent size of this market overlaps reached the extent of 200% and more in some of amounting to some 140 million financially excluded the more microfinance oriented parts of states like Andhra families was served only to the extent of around 20% (by Pradesh, Tamil Nadu and West Bengal. Thus, large MFIs) even if the figure of 27 million MFI borrower numbers of the poorest families in India were (and continue accounts at end-March 2010 is assumed to apply to unique to be) excluded even as others, better off due to their borrowers (and multiple lending is ignored). location advantage, were increasingly falling into a debt-trap due to the culture of easy money. Thus, yet another of the 4.6 The industry’s Downfall:- development objectives of microfinance, outreach to the poorest, was abandoned in the quest for low costs and high As indicated earlier, the process of capital raising by SKS growth. was an absolute triumph for the growth strategy, PR skills and self confidence of its promoters, particularly Vikram 4.4 Increasing yields despite cost savings: Akula. It appeared, to many, that the industry‘s future (not to mention the futures of dozens of other ―me-too‖ Increasing yields apparent from the figure, point to the fact promoters of commercial MFIs) was secure. In the event, it that none of the apparent improvements in efficiency was precisely those qualities that were the downfall of indicated by the declining operating expense ratio were microfinance. passed on to clients. It is not surprising that the weighted average return on assets of the largest ten MFIs in India during the financial year 2009-10 was as high as 7.9% and 6.8% for the larger sample of 65 MFIs studied by M-CRIL, compared to 2.1% in 2005. And, a natural corollary of this was increasing commercialistion of microfinance as more and more NGOs converted to commercial NBFCs. This was in the hope of obtaining large quantities of highly leveraged debt from commercial banks which would lead to high growth and, following the example of SKS and its peers (Share, Spandana and others), would lead to high profitability which attracts equity capital (from private investors) at high valuations enabling the original promoters to make dramatic fortunes in the space of a few short years. Figure 6 (following page) shows the progressive transformation of Indian microfinance from a predominantly Source: - M-CRIL NGO oriented sector to a substantially commercial one. By www.theinternationaljournal.org > RJSSM: Volume: 01, Number: 11, Mar-2012 Page 61

Upon listing on 16 August 2010, the SKS share price jumped up 11% and climbed steadily thereafter until 28 September to a peak as high as Rs1,490 ($33), more than 50% higher than the final IPO price of Rs985, though the closing price on that day was Rs1,402 as shown in Figure 7. Thereafter, the price started to fall and, but for a few kinks, has been in steady decline since. The decline started with rumours about a dispute between the promoters of SKS and the CEO at the time of the IPO, Suresh Gurumani. This culminated in the sacking of the CEO on 5 October. Whatever the reasons for the sacking, it was too close to the IPO (just 10 weeks after) for the comfort of India‘s securities regulator (SEBI) who asked the company for an explanation. There was also a challenge in the courts by investors aggrieved that they had not been informed about the promoters‘ lack of confidence in their CEO at the time of the IPO; surely, the promoters could not have been happy with him in late July if they sacked him in early October. Source :- M-CRIL This shocking event also drew media attention back to SKS and to microfinance. Not only was there substantial speculation about the reasons for the sacking but it provoked 5. Conclusion renewed muck raking by journalists who had earlier raised Clearly, the revival of the Indian microfinance sector needs similar issues about the functioning of Indian microfinance multiple actions at many levels: the central bank for when discussing the forthcoming IPO. Within days of the regulation, the government for calibrated responses to the sacking, articles about the over-indebtedness of issue of client coercion and, above all, the MFIs to ensure microfinance borrowers were back in the media and more measured growth and better control systems. It also numerous recent instances of suicide by low income women requires more informed investor behaviour to ensure that in Andhra Pradesh were directly attributed to this situation. capital flows to socially responsible institutions in support of the long term economic benefits of financial inclusion On 14 October 2010, the Andhra Pradesh (AP state) rather than in pursuit of short term financial gains. A government promulgated its now well known ordinance complete solution is yet to emerge but clearly a major apparently aimed at protecting microfinance borrowers as churning in international microfinance – a rediscovery of consumers. The ordinance placed severe restrictions on the development objectives and a better understanding of the practice of microfinance in the state. It effectively made it needs of microfinance clients, both the poorest and the not- impossible to continue the microfinance business in the state so-poor – is necessary. reducing MFI collections to 10-20% of expected levels and making disbursements virtually impossible in the near 6. Recommendation future. A few weeks later, the AP ordinance was converted A moderate rate of growth that both enables new staff to into a regular law having been passed by the state legislative absorb the organization‘s culture and undertake client assembly. Spooked by this event, the commercial banks, acquisition in tune with its development mission and ensures hitherto providers of over 70% of the funds deployed in that the system of control for rules governing aspects like Indian microfinance, started to hold and delay their client acquisition, loan refinancing and collection practices disbursements to MFIs all over India, not just to those keeps pace with its expansion. M-CRIL‘s experience operating in AP. While commercial bank lenders to suggests that growth rates of the order of 30%-50%, microfinance continued to demand their repayments on inversely proportional to the size of the MFI, are likely to be time, they disbursed only small sums of money and, in sharp sustainable. contrast to their earlier enthusiasm, with considerable A better understanding of the needs of low income clients reluctance. As a result, by end-March 2011 the portfolios of for financial products so that the industry evolves from the leading MFIs in India were reported to be down by between simple regime of the ―one size fits all‖ conventional 20-30% from the levels six months earlier. In practice, what Grameen loan to a set of (3-4) products specifically the world knows as the ―AP microfinance crisis‖ has turned designed for the clients the MFI aims to serve. This would into the ―great Indian microfinance crisis‖. Let alone need to be regionally adjusted for loan size, loan term and downfall, the industry has been in free fall over the past 12 repayment frequency depending on the economic activities months. M-CRIL estimates that by 30 September 2011, the of its clients size of the industry in the country as a whole had fallen by A greater engagement with the political economy of the 33% from its end-September 2010 peak – from a CRILEX regions in which they operate so that bureaucracy, index of around 9,000 to just 6,000 (as shown in Figure 8) politicians and media are all kept aware and sympathetic to the MFIs‘ operational practices and goals. A conscious effort to ensure that there is a diversity of sources of funds not just in terms of numbers of lenders/investors but also the type of such fund providers – www.theinternationaljournal.org > RJSSM: Volume: 01, Number: 11, Mar-2012 Page 62 commercial banks, development banks, social equity Data Sources Used for the Research :- investors, private equity investors and, equally, clients as M-CRIL, various. M-CRIL Microfinance Reviews 2000, depositors. Wherever the deposit option is available (as in 2003, 2005. Micro-Credit Ratings International Limited, Bangladesh) it provides an additional anchor of stability to Gurgaon. the micro financial system. M-CRIL & MIX, 2007. India Microfinance Review 2007. M-CRIL, 2009. M-CRIL Review of Rural Banking in India. 7. Limitations The whole research is conducted based on the views and M-CRIL, 2010. M-CRIL Microfinance Review 2010: reviews of the microfinance practitioners and microfinance Microfinance contributes to financial inclusion. Micro- researchers. Hence scope for further research is to Credit Ratings International Limited, Gurgaon, India. understand the sentiments and preferences of clients of microfinance. MIX, 2009. The Microbanking Bulletin. Issue No.19. Microfinance Information Exchange: Washington DC, Bibliography December. CGAP, March 2010. All Eyes on Asset Quality: MIX database for India, 2010 on www.mixmarket.org Microfinance global valuation survey 2010. Washington DC, CGAP Occasional Paper 16.

EDA, 2010. Microfinance and the Role of External Agents: A study of the Kolar delinquency crisis. Undertaken for the Association of Karnataka Microfinance Institutions (AKMI).

Jonathan Adongo and Stork( 2005) ―Factors Influencing the Financial Sustainability Of Selected Microfinance Institutions in Namibia‖ NEPRU RESEARCH REPORT No. 39

Meyer, R.L. (2002), ―Track Record of Financial Institutions in Assisting the Poor in Asia‖ ADB Institute Research Paper, No.49, December 2002. Navajas, S., M Schreiner , R. L. Meyer C Gonzalez-vega and J. Rodrigues-Meza(2000), ‗ Micro credit and the poorest of the poor; Theory and Evidence from Bolivia‖, World Development, Vol.28, No.2, pp333-346, Elsevier Science Ltd. Nagesh Naarayana (2009) ―India Microfinance records 30% growth: State of the sector reports‖ http://www.microfinancefocus.com/news/2009/10/26/india- microfinance-records-30-growth-state-of-the-sector-report/ Roodman David, 2010 ―Backgrounder on India‘s Microfinance Crises‖ http://blogs.cgdev.org/open_book/2010/11/qa-on-indias- microfinance-crisis.php Rosenberg, Richard, 2007. CGAP Reflections on the Compartamos Initial Public Offering: A case study on microfinance interest rates and profits. Washington DC: CGAP Focus Note 42.

Sriram, MS, 2010. Commercialisation of Microfinance in India: A Discussion on the Emperor‘s Apparel. Indian Institute of Management Ahmedabad, March. Sinha Sanjay ―Initial Public Offerings: The field‘s salvation or downfall?‖ Commissioned workshop paper November 2011 Zeller, M., & Meyer, R. (2002). The Triangle of Microfinance. Financial Sustainability, Outreach and Impact. The International Food Policy and Research Institute. Washington, USA

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Impact of FFS Training on Acquisition of Knowledge and skills by Cotton Farmers regarding Agro-Ecological Sound IPM Practices

Akhtar. A. Siddiqui, and M. Siddiqui

Abstract--In connection to agro-ecological sound farming, 1.4 percent of GDP. Pakistan is the world‟s 4th biggest in the strategy and policy for agricultural development by cotton producing country after China, India, and USA. The Government of Pakistan, farmers were trained to grow world cotton production is projected at 24.8 million tons, healthy cotton crop through understanding agro-ecosystem, during 2010-11 as against 22.01 million tons recorded in conserving biodiversity with Good Agricultural Practices 2009-10, estimating an increase of 12.6 percent. Production (GAP) and increasing profit margin of farmers. Potential is expected to continue to increase 11 percent to a record of stakeholders took efforts and launched FAO-EU-ADB 27.6 million tons in 2011-12 (GoP, 2011). Despite of being funded National Integrated Pest Management Programme one of the largest cotton growing countries, the cotton (Nat-IPM) for Cotton in Pakistan during 2001-2004 and production in Pakistan is low as compared to other introduced new extension training methodology called countries. Low cotton production is for the reason of Farmer Field School (FFS). FFS training emphasized that weather conditions, pests attack and little awareness of the crops should be healthier with least use of pesticides applying scientific and pest curbing techniques by farmers. which have bad impact on the nature and encouraged to the The timely and optimum use of the pesticides for cotton is natural pest mechanism. In addition, the basic principle of essential to prevent the crop from the attack of pests and FFS training was to enable farmers to be self sufficient, diseases but the excessive use of the pesticides disrupts the using Integrated Pest Management practices that are agro growth of cotton, killing cotton friendly pests and providing eco-system friendly. opportunity to harmful pests to attack on crop. Also, this In order to impact of FFS training on acquisition of throws burden of costs on the growers. Moreover, Farmers knowledge by farmers regarding agro-ecological sound uses variety of pesticides in cotton to eliminate insects and Integrated Pest Management (IPM) practices with special weeds from their fields, but these limiting agents have the reference to cotton in selected potential to harm our health and the environment (FAO, 2004). The research must provide those methods that are A. A. Siddiqui is with the Agriculture Extension affordable to the farmers and the environment friendly. The Department, Hyderabad, Sindh, Pakistan (corresponding FFS approach is based on training needs. The farmers author to provide cell phone: 92-330-3010109; e-mail: participate in the FFS and become a part of wide scale IPM- [email protected]). FFS programmes, ranging from local to national research, M. Siddiqui is with the Department of Commerce, and analyze the production troubles and develop solutions University of Sindh, Jamshoro for them at the country level (FAO, 2000). The collective ([email protected]) research with farmers involves local needs, information districts of Sindh province through the National IPM (Nat- about local conditions, local-ecosystem, and weather. The IPM) programme during the years 2001-2004. A survey IPM-FFS takes into consideration local needs as well (Linh, study was carried out in four districts of Sindh province 2001). Various studies regarding IPM-FFS programmes (Hyderabad, Tando Allahyar, Matiari and Mirpurkhas). The were agreed in end that FFS strengthens farmers‟ ecological sample size comprised of 432 farmers in total, selecting 144 knowledge (Thiele et al., 2001; Rola et al., 2002; Feder et farmers from each group (trained=144, exposed=144 and al., 2004; Reddy and Suryamani, 2005; Tripp et al., 2005). control=144). The information about understanding the crop-ecosystem FFS training was a favorable process in increasing leads reduction in the pesticides use and at the same time knowledge of cotton growing farmers regarding ecologically increases production and profit, for instance, in the cotton sound farming. It was suggested that the FFS graduates can production systems (Godtland et al., 2004; Khan et al., be good source for transferring the obtained knowledge. 2005). Regarding this, the reintroduction to FFS graduates about The Farmer Field School (FFS) approach is a training model transfer of knowledge to other farmers of community is developed primarily by Food and Agriculture Organization important. (FAO) in which farmers gain the decision making power regarding use of agro-chemicals at their field. The FFS Index Terms--Farmer Field School, Integrated Pest approach is unique extension season long training conducted Management, Agro-Ecosystem. at farmers own fields. The approach is action-learning oriented where farmers are allowed to observe, analyze and INTRODUCTION make alternative decision about their crop (Kingsley, 1999). Pakistan is the territory of cotton (Gossypium hirsutum L.) During four years (2001-2004), Sindh has embraced IPM- and big source of livelihood to around 1.5 million farmers in FFS as the dominant interface between agriculture extension the rural areas. Cotton is a main source of export capital, and farmers. It was assumed that through this new FFS accounts for 6.9 percent of value added in agriculture and www.theinternationaljournal.org > RJSSM: Volume: 01, Number: 11, Mar-2012 Page 64 training model, farmers would change their traditional role graduate respectively. Majority of the trained farmers from passive learner to active learner. (48.1%), exposed farmers (56.30%), and control farmers (52.60%) were haree (farmer). Most of the trained (27.4%) MATERIAL AND METHODS and exposed (23.7%) farmers were owners of 11 to 20 acres whereas (24.4%) of control farmers were owners of 21 to 30 Four Districts were selected as study Area viz., Hyderabad, acres. Large number of trained farmers (36.30%), exposed Tando Allahyar, Matiari and Mirpurkhas districts, where farmers (40.00%), and control farmers (32.60%) had FFSs were established during 2001 to 2004 for cotton farming experience in the range of 11 to 20 years followed through Nat-IPM Programme. The research work was by 29.6, 34.8, and 27.4 percent of the trained, exposed, and carried out by a structured survey method. The target control farmers respectively, who had less than 10 years of populations of this study was categorized in three groups; experience. Majority of the trained farmers (25.9%) had i.e. Trained Group (IPM-FFS Participants), Exposed Group their yearly farm income more than 100,000 (pak rupees) (Non-IPM-FFS participants but exposed from the IPM-FFS while most of the exposed farmers (24.4%) and control villages), and Control Group (farmers who neither involved farmers (25.2%) received their yearly farm income between in IPM-FFS nor living in IPM-FFS village). the range of 21,000 to 40,000 (pak rupees) followed by List of the farmers (trained group) were obtained from yearly farm income in the range of 41,000 to 60,000 by National IPM-FFS programme coordinator, Director trained (23.0%) and exposed farmers (20.0%) but control General, Agricultural Extension Wing, Hyderabad, Sindh. farmers (23.0%) had their yearly farm income more than The sample was selected from each group on the basis of 100,000 (pak rupees). tables (Fitz-Gibbon & Morris, 1987). The 144 of sample Farmers Knowledge Regarding Agro-Ecological Sound IPM size distributed district-wise (36 from Hyderabad District, Practices: 36 from Tando Allahyar District, 36 from Matiari District, Knowledge about crop protection and production play vital and 36 from Mirpurkhas). Hence a total of 144 farmers role in the agro-ecological sound farming. The farmers were (trained group) included in the research study. Similarly, the interviewed to show their opinions on a set of agro- sample of 144 farmers (exposed group) randomly selected ecological sound IPM practices in the field and their from the same IPM-FFS villages and 144 farmers (control responses are presented in Table 2. Their responses were group) randomly selected from the villages, having at least a managed using five points likert scale (e.g. 1=Strongly distance of 20 Kilometers from IPM-FFS village where disagree, 2=Disagree, 3=Undecided, 4=Agree, and sufficient cotton growing farmers available. Further, 5=Strongly agree). The data show that the opinions of trained, researcher were sampled the farmers exposed and control exposed and control farmers varied significantly (F=6.642, groups with all matching characteristics such as age, P=0.010*) on „summer deep plowing advantages to kill insect education, and landholding as the farmers (Trained Group). pests‟ and all the farmer categories were „agree‟ on this The total sample size of farmers‟ category hence comprises statement. In case of „early sowing influence on pest 432. management‟ the opinions differed significantly (F=4.800, Detailed questionnaire was developed in consultation with P=0.009**); and trained or exposed farmers were „agree‟ over the IPM-FFS experts and help of available literature. The the statement and control farmers remained „undecided‟. The concepts or ideas were usually measured through different perception over the advantages of „plant spacing‟ was statements on a continuum ranging from negative to „agreed, by all farmer categories, and the differences among positive. Despite several efforts, a total response rate their opinions were significant (F=4.472, P=0.012*). In case (93.75%) was obtained. More than 60% response rate is of „crop rotation advantages‟ the trained farmers showed sufficient for comparison between two or more than two „agreed‟ response, while exposed and control farmers showed groups and for the validation of the research results „undecided‟ response, with non-significant variation (Wunsch, 1986). A data coding sheet was developed and all (F=2.946, P=0.054NS). On the statement that „use of resistant data were analyzed using appropriate statistical analysis and tolerant varieties for pest management‟ the responses techniques. IBM-SPSS version 19 was used for data were „undecided‟ by respondents of all categories (F=0.561, analysis. Frequency, mean, percentage, and standard P=0.571NS). deviation were calculated. For the comparison among The trained and exposed farmers showed different response groups ANOVA was performed and Duncan Multiple (F=5.956, P=0.003**) on the advantages of „delinting of Range Test (DMRT) was applied to rank the means. cotton seed by acid before sowing‟ as „agree‟ but control farmers were „undecided‟ over this statement. On the RESULTS AND DISSCUSSION statement that „pheromone traps are used for pest management‟ trained farmers were „agreed‟ and exposed or Demographic Information: control farmers showed „undecided‟ response; however, Table-1 shows that most of the trained farmers (28.1%) variation in responses of different farmer categories were were falling in the age group of 21-30 years, whereas non-significant (F=2.947, P=0.054NS). Same response majority of the exposed (24.4%) were falling in the age „undecided‟ came from the respondents on use of „yellow group of less the 20 years and most of the control farmers sticky traps‟ for insect pest management (F=2.306, (26.7%) were in the age up to 30 years. The majority of P=0.101NS). Moreover, the responses of trained, exposed and trained farmers (27.4%) were educated up to primary level, control farmers differed significantly but trained farmers were whereas exposed and control famers were illiterate with „agreed‟ this statement and exposed and control farmers yet slight difference of 24.4% and 25.9%. While 11.1%, 8.9%, showed „undecided‟ response on „release of trichogramma‟ and 10.4% of the trained exposed and control farmers were (F=3.424, P=0.034*), and on „hand collection of insect www.theinternationaljournal.org > RJSSM: Volume: 01, Number: 11, Mar-2012 Page 65 larvae‟ (F=18.299, P=0.001**). However, „use of neem Boucher and Ashley (2001); Godtland, et al. (2004) and extracts for pest management in cotton‟ was „agreed‟ by all Dinpannah (2010) who reported that due to training of the farmer categories (F=9.828, P=0.001**). All the farmers under FFS trainings systems regarding production respondent categories were also „agree‟ over the advantages and protection technologies particularly, cropping pattern, of „hand weeding for pest management‟ (F=9.275, method of cotton sowing and irrigation management the P=0.001**), „defoliation practice‟ (F=8.536, P=0.001**), „de- farmers‟ skills were markedly improved and their average topping practice‟ (F=3.575, P=0.029*). However, the control yield per acre were increased considerably. group was „undecided‟ on the statement regarding defoliation and de-topping practices. These findings coincide with those CONCLUSION of David (2007), Mallah and Korejo (2007) who reviewed knowledge improvement in relation to IPM-FFSs and The FFS training is a favorable process in increasing literature relevant to IPM-FFSs indicates that IPM-FFS knowledge and skills of cotton growing farmers regarding improved participants‟ knowledge as compared to non-FFS agro-ecological sound IPM practices. FFS training provides farmers. However, the affinity of FFS to improve inter-personal trust that is essential for working mutually Knowledge among farmers more than ideas to review and evolving innovations so spread of IPM knowledge is aspects of the training, the FFS can be a starting point to very important. The results of this study indicated that the give the farmers the strength and confidence. FFS graduates have comparatively better knowledge and Farmers Skills Regarding Agro-Ecological Sound IPM skills in relation to agro-ecological sound IPM practices. It Practices: was suggested that the FFS graduates can be good source for The sample farmers were subjected to expose on their transferring the obtained knowledge. Regarding this, the confidence level on IPM skills regarding ecologically sound reintroduction to FFS graduates about transfer of knowledge farming practices on the basis of five points likert scale to other farmers of community is important. (1=Extremely confident, 2=Unconfident, 3=Neutral or Unsure, 4=Somewhat confident, 5=Extremely confident) and REFERENCES the results are presented in Table 3. The data exhibit that variation in responses of trained, exposed and control farmers A. Azad, Sindh Water Resources Management - Issues and was significant for „acid delinting/seed treatment‟ (F=10.097, Options. Investment Center Division, FAO, 2003. P=0.001**), „installation of bird perches‟ (F=22.410, P=0.001**), „use of pheromone traps‟ (F=8.808, P=0.001**), T. J. Boucher, and R. A. 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Aboeye, Analysis of effect of FFS approach on „gap filling and thinning (F=1.251, P=0.287NS). The trained adoption of biological control on rice producer farmers were „somewhat confident‟ on acid delinting/seed characteristics in Iran American-Eurasian J. Agric. & treatment; installation of bird perches, neem extracts, spray Environ. Sci. 7 (3): 247-254, 2010. of detergents, defoliation technique, de-topping technique, FAO, Guidelines and reference material on integrated soil gap filling and thinning, inter-culturing and weeding and and Nutrient Management and conservation for Farmer removal of infested plants; while they were „neutral/unsure‟ Field Schools, FAO, Rome, 2000. on fixing yellow sticky traps, installation of light traps and FAO, Fertilizer use by crop in Pakistan. Land and plant conducting trials/experiments. The exposed farmers were nutrition management service land and water development „somewhat confident‟ on neem extracts, gap filling and division. Food and Agriculture Organization of the United thinning, inter-culturing and weeding by hands, and removal Nations, Rome, Italy, 2004. of infested plants; while they were „neutral/unsure‟ acid G. Feder, R. Murgai and J. B. Quizon, The acquisition and delinting of seed, bird perches, pheromone traps, yellow diffusion of knowledge. The case of pest management sticky traps, light traps, release of trichogramma, spray of training in farmer field schools, Indonesia. Journal of detergents, defoliation and de-topping techniques; and Agricultural Economics 55(2): 217-239, 2004. conducting trials/experiments. The control farmers were Fitz-Gibbon, C.T. and L. L. Morris, How to analyze data. „somewhat confident‟ on gap filling and thinning, inter- London: Sage Publications. The International Professional culturing and weeding by hands, and removal of infested Publisher, 1987. plants; while showed „neutral/unsure‟ confidence acid E. Godtland, M., E. Sadoulet, A. D. Janvry, R. Murgai and delinting/seed treatment, bird perches, pheromone traps, O. Ortiz, The impact of Farmer Field Schools on knowledge yellow sticky traps, light traps, release of trichogramma, spray and productivity: A study of potato farmers in the Peruvian of detergents, defoliation and de-topping techniques; and Andes. Economic Development and Cultural Change, 53: conducting trials/experiments. Similar results have been 63-92, 2004. reviewed from the studies of Vasquez-Caicedo et al. (2000); www.theinternationaljournal.org > RJSSM: Volume: 01, Number: 11, Mar-2012 Page 66

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Annexure

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The connection between Creativity Language Aptitude and Level of proficiency of Pakistani ESL Learners

Shamim Ali

Abstract------This study aimed to determine the relationship creative person, the creative situation, the creative process, between creativity on one hand and lexical reception and and creative potential (Hsen, 2011). production knowledge of Pakistani EFL students on the Creativity is characterized by two factors, i.e. newness and other hand. The data were collected using three tests: a significance. The first refers to the arrival of something new creativity test (Torrance, 1990), the Vocabulary Levels Test or original, and the second characteristic, relevance, reminds (Schmitt et al, 2001), and the Productive Version of the us that creativity is always in a context and a creative act is a Vocabulary Levels Test (Laufer and Nation, 1995) which response to a situation in which something requires a were administered to a group of 40 Pakistani students solution or at least clarification. Matsouka, Trevlas, & majoring in English Language and Literature at National Zachopoulou, (2003) declare that creativity is a University of Modern Languages Islamabad. The results multidimensional construct and may be measured as a demonstrated that there was not a high correlation between personality trait or a creative style. Abutalebi & Costa creativity on one hand and lexical reception and production (2008), who investigated the role of creativity in on the other hand. The learners' passive and active entrepreneurship education, specify creativity as a unique vocabulary knowledge in the tests as a whole and at ability of individuals and the undiscovered mystery of the different word-frequency level were highly correlated. brain as well. Passive vocabulary was always larger than active Hadley (2003) was one of those who have reported the vocabulary at all levels; however, the gap between the two significance of the creativity effect in learning a increased at lower word-frequency levels. second/foreign language and language use creatively. He Index Terms---- active vocabulary,creativity lexical, , maintains that students, who hope to make progress in their passive vocabulary, skills beyond the elementary phases, must learn to create with the language, or in other words make use of language 1.INTRODUCTION creatively. In fact, E. Paul Torrance - who is well-known as the „Father of Creativity‟ due to his nearly 60 years of The relationship between SLA and individual differences research - has become the framework for the field of has been investigated by many scholars Dörnyei, 2005) creative education and creative thinking tests (Kim, 2008). defined seven categories of individual differences, two of In Clapham (2004),and Kim (2008) a justifications, which are „creativity‟ and „motivation‟. Concerning the Torrance Tests of Creative Thinking, hereafter (TTCT), individual learner differences, the present study works on which are combined with longitudinal studies, enhanced the creativity level as one variable on one side of the creativity awareness, improved teaching techniques, and research continuum, and on the other side on the domain of highlighted the field of creativity. receptive and productive vocabulary size in the context of However, unlike creativity, the lexis is an essential Pakistani EFL learners. Learning a different language is a contributor whose role in SLA has been continuously difficult work. Improving semantics while at the same time admitted (Hunt and Beglar 2005; Lewis 2000). In learning developing lexis are not easy to handle. On the other hand, English language, vocabulary and lexical knowledge is in most of the recent research in the area of SLA, examining acknowledged as a significant contributor to ESL or EFL the variables that have been found to be significant in improvement (Coxhead, 2006; Horst, Cobb, & Nicolae, personality psychology seems to be a trend. In addition to 2005; Lee & Munice, 2006). That is, "L2 learners‟ lexical motivation, anxiety, learning styles and strategies which are knowledge may determine the quality of their listening, clearly-defined variables, it seems that other constructs are speaking, reading, and writing performances" (Mokhtar, entering into this research area as well (Albert, 2006). 2010: 72). Dörnyei (2005) highlights the importance of studying the Laufer & Goldstein (2004) point out that vocabulary conventional psychological variables such as personality, knowledge is not an all-or-nothing phenomenon but self-regulation, self-esteem, and creativity which are involves degrees of knowledge. The majority of researchers considered as individual differences. Researchers are affirm that they should consider lexical knowledge as a implicitly or explicitly involved in language teaching, continuum which consists of various levels and dimensions teacher training, or the development of SLA theory. Yet, in of knowledge, initiating with superficial familiarity with a comparison, there are relatively few references to cognitive word form and finishing with the ability to apply the and psychological factors in SLA studies. Creativity is vocabulary appropriately in free production (Meara & difficult to define. One of the difficulties in defining the Alcoy, 2010). concept of creativity is the existence of different relevant Vocabulary has been categorized in different ways by notions such as the creative performance or product, the different researchers (Henricksen, 1999; Nation, 2001; www.theinternationaljournal.org > RJSSM: Volume: 01, Number: 11, Mar-2012 Page 71

Qian, 2002). Henriksen (1999) classified lexical knowledge Fitzpatrick, 2000) which have been proved to be reliable into three categories of „partial vs. precise‟, „shallow vs. ones for the assessment of lexical knowledge. deep‟ and „receptive vs. productive‟. According to what Recently, some research studies measuring receptive and Henriksen (1999) declares, the receptive-productive productive vocabulary size have been conducted by Fan dimension is used as a bridging dimension between lexical (2000), Morshedian (2008), Nemati (2010),and Webb competence and performance. Although vocabulary has (2008); these studies have mainly addressed receptive and been defined by many categorizations, the focus of this productive vocabulary size, but some differences in their study is basically on the analysis of lexical knowledge from research instrumentation and the scoring systems are two scopes, (a) receptive vs. productive, and (b) size vs. observable. depth. In summary, the three most widely-used vocabulary As to the distinction between receptive and productive breadth tests, the EVST, VLT, and PVLT, were used as the knowledge of vocabulary, Nation (2001, 2005), Read measuring instruments of the present study. Of the three, the (2000) and Schmitt (2000) have postulated that receptive PVLT and VLT were selected to measure the productive and vocabulary knowledge is the knowledge to understand a receptive vocabulary size, respectively. According to Laufer word in listening and reading, whereas productive and Nation (1995:312) “the PVLT also stands out in terms vocabulary knowledge is the knowledge to produce a word of its format because it requires the student to produce the when one speaks and writes. Researchers in the field of L2 word as they would if they were speaking or writing, and vocabulary acquisition use the terms „receptive‟ and thus seems to more realistically mirror natural language „productive‟ as synonymous with „passive‟ and „active‟, use”. Moreover, the PVLT has been made available on the respectively Size and depth are another division of lexical internet and a pen and paper version of the test can easily be knowledge ( Zareva, et al., 2005). Vocabulary size is also administered in class. Therefore, the PVLT was determined called breadth, which is a quantitative dimension of to be the most suitable instrument for the present study. vocabulary knowledge. It refers to “the number of words Meara and Alcoy (2010) have also proved the suitability of for which the person knows at least some of the significant VLT recently. aspects of meaning” Vocabulary depth is a qualitative dimension of vocabulary knowledge and refers to the 11.SIGNIFICANCE OF THE STUDY degree to which a learner knows a certain word in addition to knowing a primary meaning In several studies, it has been reported that there is a Regarding the significance of size and depth, the former relationship between proficiency and vocabulary size of which is basically knowledge of a primary meaning and a ESL learners .The number of studies on form of a word has been regarded as the most vital aspect of receptive/productive vocabulary distinction is much more vocabulary knowledge (Laufer et al., 2004; Laufer & than the size of research on the relationship between Goldstein, 2004; Webb, 2005). Nation (2001) concentrates psychological factors and reception and production of on one determining and inseparable feature in the lexical words, but the present study takes a step toward the discussions, called the „frequency of the lexical item‟. We clarification of whether the psychological parameter of all encounter some words more often than others. Also, we creativity plays any significant role in productive/receptive all use some words more than others and there are some vocabulary learning or not words in our native tongues that we never use at all (Alderson, 2007). III. RESEARCH QUESTIONS The inseparable feature of lexical knowledge is lexical assessment, and one of the issues that have been focused Regarding the reviewed literature, the present study tends to regarding vocabulary testing is the distinction between answer the following research questions: receptive and productive vocabulary. It was reflected that 1. Is there any significant correlation between The EVST (Eurocentres Vocabulary Size Test), VLT creativity of Pakistani ESL learners and their (Vocabulary Levels Test), and VKS (Vocabulary lexical reception and production knowledge? Knowledge Scale) are receptive vocabulary tests. Nation 2 What is the difference between the passive and active (1993, 1990) presented the Vocabulary Levels Test, vocabulary sizes of Pakistani ESL hereafter (VLT), as a measuring tool for the learners' size of learners in creativity groups? lexical knowledge. According to Schmitt et al. (2001, p. 58), “the VLT provides a profile of a learner's vocabulary, rather IV.MATERIAL AND METHOD than a single figure estimate of overall vocabulary size”. Productive vocabulary into „controlled production‟ and 4.1. Participants „free production‟. The PVLT is a productive vocabulary test A total of 40 Pakistani learners of English, doing masters which is also called „controlled productive vocabulary test‟. in English language and literature at NUML participated in There is another test called Lexical Frequency Profile (LEP) this study.The ages of the participants ranged from 20 to 31 which is also named as „Free Productive Vocabulary Test‟ years old, with the average of 24 and they were in different by Laufer and Nation (1995), in which written or spoken levels of proficiency. discourse produced by the subjects are analyzed and the 4.2. Instruments vocabulary use is ranked into frequent and infrequent words. 4.2.1. Torrance Test of Creative Thinking There are other PVLTs called LFP-Lexical Frequency To measure the creativity levels of the participants, TTCT Profile (Laufer and Nation, 1995) and Lex30 (Meara and (Torrance, 1990) was administered. This test has been widely used in different educational studies and its www.theinternationaljournal.org > RJSSM: Volume: 01, Number: 11, Mar-2012 Page 72 reliability is reported to be 0.80 (Fasko, 2001).. The test participants, (LC) hereafter, showed a mean of 66.28 and consists of 60 questions each followed by three choices that standard deviation of 6.66. Those with „Medium creativity‟ include different hypothetical situations of responding for level or „Medium creative‟ participants, (MC) hereafter, had the participants. a mean of 78.43. (standard deviation= 4.41) The participants with „High creativity‟ level or „High creative‟ participants, 4.2.2. Vocabulary Levels Test (Test B) (HC) hereafter, had a mean of 94.20, and the standard The Vocabulary Levels Test used in this study was the deviation of 7.11. second version of the levels test revised and validated by Schmitt et al. (2001). The test has 150 items and test takers The scores of TTCT were also compared, aiming to are supposed to match the definitions on the right in each determine if there was any significant difference between cluster with the corresponding words on the left. The the three groups of creativity levels. We used non- validity and reliability of the test were proved by Schmitt et parametric counterpart, i.e. Kruskal-Wallis one way al. (2001). ANOVA. The results indicated that there was a statistically significant difference between the three creativity levels (H 4.2.3. Productive Vocabulary Level Test (Test A) (2) = 120.618, p = .000) at .05 level of significance, with a The Productive Version of the Vocabulary Levels Test is a mean rank of 27.30 for LC, 70.38 for MC, and 117.00 for diagnostic test developed by Laufer and Nation (1995). The HC participants. Productive Vocabulary Level Test or Controlled Active Consequently, i conclude that at least one of the group Vocabulary Size test (Laufer & Nation, 1995) also measures means is significantly different from the others. In order to vocabulary knowledge at the same five levels as the passive know where the exact differences are, we used Tamehane‟s version does. It is a valid test being used in many studies test instead of Man Whitney test, "on the account that the and its reliability is reported to be 0.93 by its authors. Each number of samples in each variable level is not the same” of the five frequency levels of the Productive Vocabulary (Mehotcheva, 2008:9). As shown in Table 4, the LC group Level Test is represented by 18 items on the test, making 90 (M = 65.84) is significantly different from the MC group (M questions totally. This test had 13 common words with the = 78.44), with a mean difference of -12.59 and a p value of passive version; 6 in the 2000 level, 3 in the 3000 level and .000. Also, the LC group (M = 65.84) is significantly 4 in the academic level . different from the HC group (M = 94.20), with a mean difference of -28.36 and a p value of .000. Regarding the 4.3. Procedures MC and HC groups, as it is obvious from the Table, the MC In the first step, a valid creativity test (TTCT) was group (M = 74.88) is significantly different from the HC administered to measure the creativity levels of the group (M = 94.20), with a mean difference of -15.76 and a p participants. A week after the administration of these tests, value of .000. the second step of this study that was the administration of VLT was performed in order to clarify the lexical reception 5.2. Performance on Vocabulary Levels Test and Productive size of the participants. In order to carry out the last phase of Vocabulary Levels Test data collection, Productive Vocabulary Level Test was held a week later in order to reduce the effect of remembering The results of VLT and . Productive Vocabulary Level Test words from VLT by the participants. To control the effect of are set forth in Table 5. The minimum scores obtained by administration time, all the tests were given to the students the participants on VLT and Productive Vocabulary Level during their regular class time. Test were 39 and 12, respectively. The obtained maximum score of the former was 139 and 81 for the latter. The mean V.Results and Discussion of VLT was 96.77 with the standard deviation of 24.14 which reflects a wide range of scores around the mean. 5.1. Performance on the Torrance Test of Creative Thinking Median by the value of 97.00 and mode by 98 are not too far The descriptive statistics of the test are displayed in Table away from the mean, but they do not coincide either. 1. Minimum score of this test is 44 and the maximum score is 115 out of 120. (mean =79.36), which according to the Schmitt et al. (2001) reported that learners acquire more scale of the level categorizing, belongs to the medium level, frequently-used words before they acquire less frequently- accompanied with the standard deviation of 13.63. used ones. In other words, they found that the five frequency sections of the VLT are quite scalable; that is, if a learner Regarding the frequency of the scores in each creativity has mastered one level, it can be assumed that (s)he has level, i.e. Low, Medium and High, their frequency and reached the criterion mastery at the higher frequency levels. percentage were measured. The table 6 shows the means of the different passive and As it is clear, 36.20% of the participants had Low level of active word levels decrease progressively as one goes down creativity, 29.1% had Medium creativity level and 34.80% to lower word frequency levels. The means for the passive of the participants enjoyed having High creativity level. The version at the 2000, 3000, 5000, UWL and the 10,000 word number of high and low creative students is almost the levels were 27.38, 23.60, 22.76, 16.91 and 5.10, and those same. for the PVLT were 14.14, 9.22, 9.00, 9.06 and 3.32, respectively. The means of the UWL sections neatly fit Table 3 shows the descriptive statistics of each level. between the 3000 and 5000 word levels in both passive and Participants with „low creativity‟ level or „Low creative‟ active tests in this research. However, Schmitt et al. (2001) www.theinternationaljournal.org > RJSSM: Volume: 01, Number: 11, Mar-2012 Page 73 claim that the words in the Academic section are not The correlations were also observed between creativity on primarily frequency driven and that they can be placed one hand and passive and active „levels‟ on the other hand. anywhere between the 2000 level and the 10,000 level. The The Pearson Correlation coefficient between creativity and mean of the total VLT in percent was 63.84 and that of the passive „level‟ turned out to be(r =0.272, p= .001) and that total PVLT was 49.85. between creativity and active „level‟ was (r = .274, p = .001) at .01 level of significance. Although creativity and active / The active-to-passive ratio turned out to be 46.21 passive „levels‟ were positively correlated and statistically percent, based on which we can make the conclusion that significant, there were not strong correlations between them. the participants' passive vocabulary was larger than their As it is statistically apparent, the correlation between active vocabulary. In other words, the learners could not use creativity and active knowledge was a little more than all the words they knew productively, indeed only 46.21% creativity and passive knowledge. This report can be of them were employed in production. These results are in indirectly supported by Albert and Kormos (2004) who say line with the findings of Laufer (1998), Laufer & Goldestein that, creativity is usually illustrated in production that is in (2004), Schmitt et al (2001), Webb (2008) and Meara & creative products. Its effects are more probably traceable in Alcoy (2010) who all reported that passive vocabulary size output. Actually creativity requires a response which is always larger than active vocabulary size. includes both feeling and thinking. Tasks that involve the 5.3. Passive and Active Vocabulary Levels use of imagination and the generation of new ideas might I examined the passive and active levels of the participants provide creative students with more chances to practice, that as a whole by two formulas offered by Laufer (1998) in this is, to produce more comprehensible output, which could study.The descriptive statistics of the participants' passive lead to greater success in second language acquisition. This and active vocabulary levels are demonstrated in Table 7. In suggestion can be generalized to the domain of lexical line with the reports of Laufer (1998) and Golkar & Yamini knowledge since vocabulary is a part of SLA. As a result (2007), it is evident that the participants enjoyed higher creativity by its tasks may be highly correlated with lexical passive lexical level (M = 4347.64) than active (M = reception and production. It is also supported by the reports 2514.03) vocabulary level. of Ottó (1998), indicating a significant positive correlations between different measures of students‟ creativity and their As claimed by Laufer and Goldstein (2004), it shows that end-of year English grades. passive knowledge of the words is a more advanced form than active knowledge. 5.6. The Difference between Participants’ Passive and Active 5.4. Creativity and the Passive Lexical Knowledge Vocabulary Size in Creativity Groups One of the main questions of this study was investigating the possibility of any significant correlation between To answer the second research question of the study, three creativity and passive lexical knowledge by Pakistani EFL creativity groups‟ passive and active vocabulary sizes were learners. In order to answer this question, a Pearson Product compared in the tests as a whole and at different word Moment correlation was run between the two variables, i.e. frequency levels. We used one way ANOVA to compare the creativity and lexical reception. Creativity was measured by means. The results of Kruskal-Wallis one way ANOVA TTCT and lexical reception was evaluated by VLT. As it is revealed that in passive 2000 level, there was not a evident from Table 8, the correlation was significant at the significant mean difference between three creativity groups 0.05 level. The correlation coefficient (r=0.259, p=.002) ((H (2)=4.300, p=.116). It may be concluded that since uncovers that there was a positive relationship between lexical knowledge of 2000 word level was almost equally creativity and passive vocabulary knowledge, and although available for all the participants, we might consider it was statistically significant, this relationship was not creativity as a determining factor. However, for the other strong. As a result the first hypothesis of this study which word levels and also for active and passive „levels‟, it is holds that there is no significant correlation between clear that the differences were significant. Subsequently, the creativity of Pakistani EFL learners and their passive lexical conclusion that at least one of the creativity groups‟ lexical knowledge is rejected. means was significantly different from the others was made. Moreover, Tamehane‟s post hoc test specified the place of 5.5. Creativity and Active Lexical Knowledge differences. To answer the research question, the same formula was As to the difference between passive and active lexical applied for two variables, i.e. creativity and lexical knowledge in LC and MC groups, the results indicated that production. Lexical production was evaluated by PVLT. As in passive section, the lexical mean difference between these it is evident from Table 9, the result was significant at the groups in total passive, academic level, and 10000 level was 0.05 level. significant (p< .048). In other words, it could be suggested that creativity affects lexical passive knowledge at total The correlation coefficient (r=0.279, p = .002) illustrates passive, academic and 10,000 levels, in the case that having that there was a positive relationship between creativity and LC or MC levels might be influential. Academic and 10,000 active lexical knowledge, and although statistically levels were two difficult levels for the participants but it significant, it was not a strong relationship. As a result, the seems that MC participants knew more vocabulary at these second hypothesis of the study would be rejected as well levels than their LC counterparts. In total passive part also since p < α. the MC participants were more capable in lexical knowledge than those in LC group; however, the lexical mean www.theinternationaljournal.org > RJSSM: Volume: 01, Number: 11, Mar-2012 Page 74 difference was not significant at 2000, 3000, and 5000 levels The same as passive section, the nearest and the best (p > .138) since p>α, and the LC and MC participants had performances in three creativity groups belonged to 2000 nearly equal lexical means in these levels. level which was the highest frequency one among the other As to the active section, the difference between the lexical word levels. We had a sharp fall in 3000 level concerning means was significant between LC and MC participants in 2000 level by about 26%, 27%, and 30% in HC, MC, and total active, 5000, and 10,000 word levels (p<.038). It LC groups, respectively. While HC participants‟academic means that at these levels, the participants in the MC group lexical knowledge was more than their 5000 level‟s (about knew a lot more words than LC participants. So, we may 3%), for MC and LC participants this academic knowledge report that creativity influences the participants‟ was less than their 5000 levels (about 1.5% and 1%, performance in these levels. Meanwhile, no significant respectively). The sharperst drop in vocabulary size lexical mean difference in active 2000, 3000, and academic percentage occured in 10,000 level concerning the academic levels (p >.120) was observed, since p > α. Subsequently, level for LC ( 30%), MC (31%), and HC (35%) creativity the null hypothesis that LC and MC participants had equal groups. HC participants outperformed their LC and MC lexical means in these levels would not be rejected. In other counterparts in all word levels except one. Contrary to the words, it seems that creativity did not affect lexical active common sense of expectation, MC participants were able to knowledge at 2000, 3000, and 5000 levels; and having LC produce more words at 10,000 word level than their HC or MC does not impact any result. counterparts. Again the possible justification for this can be By reviewing the results, we concluded that 2000 and 3000 the fact that there was not a strong correlation between levels in both active and passive sections had insignificant creativity and active test scores as a whole. But altogether mean differences, the reason of which may be the fact that HC participants were better lexical producers than these two levels have the highest frequencies and the participants in MC and LC groups. majority of the participants were lexically capable in these There were also dramatic changes in passive and active levels. 10,000 level in both active and passive parts had a „levels‟ in three creativity groups. Table 10 manifests the significant mean difference, in the case that it was the lowest descriptive statistics and the post hoc results of these levels frequency level among the other word levels. Academic in three creativity groups. level in passive part had a significant mean difference, while in active part the difference was not significant. A possible There were significant differences between LC and MC reason may be the fact that passive vocabulary is always participants and also between LC and HC participants in larger than active lexical knowledge and also academic passive „level‟ (p<.033) with a mean difference of -739.93, participants are more frequently encountered with academic and -895.25, respectively. The only insignificant difference terminology than other words. In fact, academic words are was between MC and HC participants (p>.948), with a much more available to the participants in their courses of mean difference of -155.31, with p>α. So, MC and HC study. Both total passive and active sections had a participants had higher passive levels than their LC significant mean difference. In a word, we may claim that counterparts. In the active level there was a significant creativity makes difference for LC and MC groups in total difference between LC and MC participants and also passive and active lexical knowledge as a whole but not for between HC and LC participants (p<.033) with a mean all word levels independently. difference of -806.90 and -964.75, respectively. In the According to the results, no significant difference was passive „level‟, the only pairs whose mean difference did not perceived between MC and HC participants in any word have a significant difference was MC and HC participants level (p>.685). It seems that creativity did not affect lexical (p>.965), with a mean rank of -157.85, with p>α. The most active and passive knowledge in participants with MC and observable difference occurred between LC and HC HC levels. Furthermore, the slightest differences were participants in the active level. This finding may suggest observed in active 5000 and 10,000 levels with the mean that HC participants were more able in lexical production differences of 0.067 and 0.029, respectively. So the MC and than the participants in LC group. The slightest difference HC participants had the nearest lexical means in these was observed between MC and HC participants, with a levels. mean difference of -155.31. It seems that the participants at There was a significant difference between the HC and LC this pair had the same passive lexical level. participants' passive vocabulary knowledge in the test as a Also, as shown in Figure 4, passive level in all creativity whole (p<.010) and at each separate word level (p<.045) groups was larger than active level. This may be concluded except one. Their active vocabulary sizes were also by the findings of Fisher (2003) who asserts that,Creative significantly different in the test as a whole (p<.005) and at attitude encourages students to be curious, take risks, use all frequency levels (p<.021). So, the HC participants knew complex ideas and experience the imagination. Cognitive a lot more vocabulary items than their LC counterparts. The factors and skills allow the students to generate process and only exception was the difference between their passive play with ideas. If the activation of learners' creativity and vocabulary size at 2000 word level which was not its usage are proved to be effective on the guess ability of significant (p=.286). An investigation of the participants' unknown words, then teachers of English should pay more performance on this part of the test revealed that the attention to the creativity activation of their students and insignificant result might be due to the fact that passive their roles in improving the students' comprehension dealing 2000 word level is too easy and frequent for the HC and LC with unknown words. participants alike, so both groups could perform well on this section, and hence the insignificant difference was observed. V1.CONCLUSION

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Our experiment had the advantage of involving L2 learners at three creativity groups which allowed for finer V11.IMPLICATIONS generalization concerning the quality of their vocabulary knowledge. The frequency of TTCT scores showed that This current research has several theoretical implications. 36.20%, 29.10%, and 34.80% of the participants had LC, First, it highlights the effect of one of the psychological MC, and HC levels, respectively, i.e. the highest frequency factors called creativity on lexical reception and production was devoted to participants with low creativity. It was also knowledge of L2 learners. Although this psychological supported that the performances of participants in three factor is not a new notion in itself, it is seldom discussed in creativity levels were significantly different. lexical research. One reason for the significant role of Concerning the breadth test results, there was a tendency creativity in applied linguistics in general, compared to other in the production of correct answers according to the level factors could be that creativity as a construct is more of word frequency. In this way, 2000 word level obtained proactively oriented than factors such as intelligence, the highest scores in VLT, followed by 3000, 5000, then motivation or aptitude (Hamidi, et al, 2008). While these academic, and finally 10,000 word levels. Regarding PVLT, factors might be good indicators of why some students the 2000 word level presents the highest mean of correct succeed more in language learning, creativity may more responses, followed by 3000, academic, then 5000, and specifically and proactively influence achievement in EFL finally 10,000 levels. In this breath test, the participants‟ learning context without considering that there could be a lexical knowledge in academic level was higher than their limit as to how far students could benefit in the field of knowledge of words in 5000 level which reflected the applied linguistics. As a result it seems mandatory for theory greater degree of participants‟ familiarity with academic makers of SLA or FLA to include this construct in the words in production. This tendency, i.e. less correct answers models of acquisition. The outcomes of this study could be in the lower levels of word frequency, can be explained by extended to the field of SLA, FLA and teaching. Regarding the fact that words specific within register are more the proficiency, designing a syllabus in which the focus is problematic than general ones, since general words are more based more on the proficiency of the L2 learners to improve common than specific lexical items, thus being more the passive and active lexical knowledge is perhaps frequent (Segler, 2001). Also, in line with the previous suggestive. With respect to the realm of lexical knowledge, findings, measuring the passive and active „levels‟ of the what is of importance is the role that could be played by the participants by Laufer‟s (1998) formula demonstrated that educational system in reducing the gap between the two learners enjoyed having higher passive „level‟ than active vocabulary types. A rough overview of some sample „level‟. examination papers revealed that in most of the cases the Regarding the relationship between creativity of Pakistani passive knowledge of students is tested rather than their EFL learners on one hand and their lexical reception and active knowledge (Zhiying & Teo, 2010). This point, production knowledge on the other hand which are the two although not one of the aims of the present study, could be a main questions of this study, it was revealed that there were good hint for other researchers to analyze in details the positive significant correlations between creativity and teaching system as well as the evaluation methods used in lexical reception and production. Although these schools to find their possible role in reducing the gap correlations coefficients were statistically significant, they between active and passive vocabulary knowledge. were not strong, i.e. by increasing the passive and active Not long ago vocabulary was quite often, if not solely, knowledge of the students we might not be able to explicitly taught through passive exercises such as memorizing long state that their creativity would be in higher levels as well. lists of words and their translations. This tradition has not The different word frequency levels in three creativity yet been left out from our education system. The role of groups were compared. As the results manifested, LC and activities and instructional methods in vocabulary learning MC participants‟ size of the passive lexical knowledge and teaching should be paid more attention to incorporate differed in total, academic and 10,000 levels, while these vocabulary teaching in teacher training courses. Informing differences in the active lexical knowledge were observed in teachers of the current research results and the implications their vocabulary sizes of total, 5000 and 10,000 levels. In of such research studies may influence and transform fact, it can be concluded that, as a whole MC participants teachers in their beliefs and practice about teaching and knew more words than participants in LC group, but learning vocabulary in a second or foreign language. regarding each word frequency level the result differed. Additionally, with a clear and definite goal in mind, teachers MC and HC participants‟ lexical knowledge differed in none may attend to psychological and behavioral research in of the word frequency levels significantly. However, the different tasks including vocabulary to improve their most significant differences were observed in the teaching. comparisons between LC and HC groups. The analyses Webb (2009) found that the kinds of tasks may have an clearly illustrated the lack of strong correlation between effect on what second language learners can or cannot do creativity, lexical reception and production. It seems that with words receptively and productively, and receptive tasks creativity in higher levels can be a determining factor in such as providing definitions or translation or looking up reception and production of words. We may finally suggest words in a dictionary may help to increase receptive that when creativity is considered as an individual variable knowledge of words and improve comprehension, whereas in relation with lexical reception and production, it is productive tasks such as speaking or writing help enhance significantly correlated with passive and active lexical the productive knowledge of words. Therefore, depending knowledge, though this correlation is not a strong one. on the goal of the task or program, different types of tasks could be utilized and a combination of both receptive and www.theinternationaljournal.org > RJSSM: Volume: 01, Number: 11, Mar-2012 Page 76 productive tasks may be most effective if the goal is to improve overall language skills (Webb, 2009). Raising the [10]Fisher R. (2003). Teaching Thinking: Philosophical teachers‟ awareness of the fact that the types of tasks for Enquiry in the Classroom. vocabulary learning and teaching can have an influence on London: Continuum. learning outcomes and performance of the students is also of critical importance for teacher trainers. Webb (2005) is [11]Golkar, M. , Yamini, M. (2007). Vocabulary, reasonable when stating that vocabulary learning is likely to proficiency, and reading comprehension. The Reading be receptive when it is taught in the class and teachers may Matrix, 7, 88-112. only tell learners meanings or definitions of words or use them in sentences but they do not often ask them to use [12]Hadley, A. O. (2003). Teaching language in context. words except for spelling or pronunciation. (3rd Ed.). Massachusettes: Heinle & Heinle Publishers. References [13]Hamidi, Y. D., Wennberg, K., & Berglund, H. (2008). [1]Abutalebi, J. Costa, A. (2008). Editorial, Acquisition, Creativity in entrepreneurship Processing and Loss of L2: Education. Journal of Small Business and Enterprise Functional, cognitive and neural perspectives. Development, 15, Journal of Neurolinguistics, 21, 304-320. 473–476. [14]Henriksen, B. (1999). Three dimensions of vocabulary development. Studies in Second [2]Albert, Á. (2006). 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[3]Alderson, C. J. (2007). Judging the frequency of English [16] Hsen, H. M. (2011). The effect size of variables words. Applied Linguistics, associated with creativity: A meta- 28(3), 383-409. analysis. Creativity Research Journal, 21(1), 30–42, 2009.

[4]Clapham, M. M. (2004). The Convergent Validity of the [17]Hunt, A. , Beglar, D. (2005). A framework for Torrance Tests of Creative Thinking developing EFL reading vocabulary. and Creativity Interest Inventories. Educational and Reading in a Foreign Language, 17, 1, 23-59. Psychological Measurement, 64 (5), 828-841. [18]James, D. (1999). What does it mean to be creative? In K. Ashcroft, & D. James (Eds.), [5]Coxhead, A. (2006). Essentials of teaching academic The creative professional learning to teach 14-19 vocabulary. Boston, U.S.: Houghton year- olds. (pp. 8-28). New Mifflin Company. York: Taylor and Francis Group.

[6]Dörnyei, Z. (2005). Motivational strategies in the [19]Kim, H. K. (2008). Commentary: The Torrance Tests of language classroom. Cambridge: Creative Thinking already overcome Cambridge University Press. many of the perceived weaknesses that Silvia et al.'s (2008) methods are intended to correct. Psychology of Aesthetics, Creativity, and the [7]Fan, M. (2000). „How Big is the Gap and How to Narrow Arts, 2(2), 97-99. it? An Investigation into the Active and Passive Vocabulary Knowledge of L2 Learners‟. RELC Journal [20]Laufer, B., Elder, C., Hill, K., Congdon, P. (2004). Size 31(2), 105-19. and strength: Do we need both to measure vocabulary knowledge? Language [8]Fasko, D.J. (2001). Education and creativity. Creativity Testing, 21, 202-226. Research Journal, 13( 3), 317- 327. [21]Laufer, B., Goldstein, Z. (2004). Testing vocabulary [9]Finke, R. A., Ward, T. B., & Smith, S. M. (1992). knowledge: Size, strength, and Creative cognition: Theory, research computer adaptiveness. Language Learning, 54(3), and applications. Cambridge, MA: MIT Press. 399-436. www.theinternationaljournal.org > RJSSM: Volume: 01, Number: 11, Mar-2012 Page 77

[33]Nasiri, R(2008). How to work with SPSS 17. Tehran: [22]Lee, S.L. Munice, J. (2006). From respective to Nashrgostar Publications. productive: Improving ESL learners‟ use of vocabulary in a post-reading composition task. [34]Nation, I.S.P. (1990). Teaching and learning TESOL Quarterly, 40(2), 295-320. vocabulary. New York: Newbury.

[23]Lewis, M. (2000). Introduction. In M. Lewis (Ed.), [35]Nation, I.S.P. (1993). Vocabulary size, growth and use. Teaching collocation. Further In R. Schreuder and B. Weltens (ed). The Bilingual Lexicon. developments in the lexical approach. (pp. 8 -9), (pp. 115-134)..Amsterdam,Philadelphia: John Benjamins. Hove: Language Teaching publications, [36]Nation, I.S. P. (2001). Learning vocabulary in another [24]Liach, M. P. A. , Gallego, M. T. (2009). Examining the language. New York: Cambridge University Press. Relationship between Receptive Vocabulary Size and Written Skills of Primary [37]Nation, I. S. P. (2005). Teaching vocabulary. Asian EFL School Learners. ATLANTIS. Journal Journal, 7(3), 47-54. of the Spanish Association of Anglo-American Studies. 31(1), 129–147 [38]Nemati, A. (2010). Active and passive vocabulary [25]Lubart, T. I. (1994). Creativity. In J. R. Sternberg (Ed.), knowledge: The effect of years of Thinking and problem solving instruction. The Asian EFL Journal Quarterly, 12, (pp. 289-332). San Diego: Academic Press. 30-46.

[26]Matsouka, O., Trevlas, E., Zachopoulou, E. (2003). [39]Ottó, I. (1998). The relationship between individual Relationship between s differences in learner creativity and Playfulness and motor creativity in preschool language learning success. TESOL Quarterly, 32, children. Early childhood 763-773. development and care, 173(5), 535-543. [40]Read, J.(2000). Assessing vocabulary. New York: [27]Meara, P. (1996). The dimensions of lexical Cambridge University Press. competence. In G. Brown, K. Malmkjær, & J.Williams (Eds.), Competence and performance in [41]Schmitt, N. (2000). Vocabulary in language teaching. language learning (pp. Cambridge: Cambridge University Press. 35–53). New York: Cambridge University Press. [42]Schmitt, N., Schmitt, D., , Clapham, C. (2001). [28]Meara, P. , Alcoy, C.O. J., (2010). Words as species: An Developing and exploring the behavior alternative approach to of two new versions of the Vocabulary Levels Test. estimating productive vocabulary size. Reading in a Language Testing, 18 (1), Foreign Language, 55-88. 22, 222–236.

[43]Segler, T. (2001). Second language vocabulary [29]Meara, P. , Fitzpatrick. T. (2000). Lex30: An Improved acquisition and learning strategies in Method of Assessing ICALL environments. [Online] Available: Productive Vocabulary in an L2. System, 28, 19-30. (June, 25, 2009). [30]Mehotcheva, H.T. (2008). The Kruskal–Wallis Test. [Online] available: [44]Sternberg, R.J. (1985). Beyond IQ: A triarchic theory of . (May, 6, 2010) [45]Tahmasebi, A. (1999). Vocabulary learning strategy [31]Mokhtar, A.A. (2010). Vocabulary Knowledge of Adult and the level of proficiency. ESL Learners. English Language Unpublished M.A Thesis. Tehran: Tarbiat Modares Teaching, 3(1), 71-80. University. . [32]Morshedian, M. (2008). The role of Initial English [46]Torrance, E. P. (1990). The Torrance tests of creative language proficiency in lexical thinking norms—technical attrition/rRetention of learners: Is productive or the Manual figural (streamlined) forms A & B. receptive word Bensenville, IL: Scholastic Testing knowledge of learned nouns more likely to be lost?, Service, Inc. Linguistics Journal, 3(1), 75-99. www.theinternationaljournal.org > RJSSM: Volume: 01, Number: 11, Mar-2012 Page 78

[47]Webb, S. (2008). Receptive and productive vocabulary [50]Zhiying, Z. & Teo, A. (2010). A comparative study of sizes of L2 learners. Studies in passive and active vocabulary Second Language Acquisition, 30, 79-95. knowledge of prince of Songkla University and South China Agricultural [48]Webb, S. (2009). The effects of pre-learning vocabulary University EFL Learners. [Online] available: on reading comprehension and writing. The Canadian Modern Language (May, 17, 2009).

[49]Zareva, A., Schwanenflugel, P. , Nikolova, Y. (2005). Relationship between lexical competence and language proficiency. Studies in Second Language Acquisition, 27, 567-595.

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Annexure

Table 1. Descriptive statistics of TTCT

N valid

S.D

mean

Mode range

median

missing

minimum

maximum

40 0 79.36 79.00 79 13.639 71 44 115

Table 2. The frequency of TTCT scores at different levels of creativity

Creativity level/group

Low Medium High

Frequency 51 41 49

Percentage 36.20 29.10 34.80

Table 3. Descriptive statistics of different levels of TTCT

N Range Minimum Maximum Mean S.D

Low 51 33.00 44.00 77.00 66.28 6.66 Level

Creativity Medium 41 27.00 57.00 84.00 78.43 4.41

High 49 71 85.00 115.00 94.20 7.11

Table 4. Comparison between creativity groups in pairs based on their creativity scores

N Mean S.D Mean Sig

(M) Difference

Low 51 65.84 7.30 -12.59

Medium 41 78.44 4.41 .000

Low 51 65.84 7.30 -28.36

High 49 94.20 7.11 .000

Creativity Groups Medium 41 78.44 4.41 -15.76 .000

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Table 5. Descriptive statistics of passive and active tests

Tests N

S.D

Min

Max

Valid

Mean Mode

Range

Median Missing

Passive 141 0 97.77 97.00 97 24.14 100 39 139

Active 141 0 45.87 45.00 38 15.68 69 12 81

Table 6. Descriptive statistics of different word levels of active and passive tests

Test NO Mean

items Range Min Max Raw % S.D

Total 150 100 38 138 95.76 63.84 23.13

2000 30 17 13 30 27.38 91.26 3.29

3000 30 28 2 30 23.60 78.66 5.20

5000 30 21 9 30 22.76 75.86 6.38 PASSIVE UWL 30 28 2 30 16.91 56.36 7.18

10000 30 20 0 20 5.10 17.00 5.12

Total 90 69 11 80 44.87 49.85 15.68

2000 18 16 2 18 14.14 78.55 3.23

3000 18 17 1 18 9.22 51.22 4.23

5000 18 15 1 16 9.00 50.00 3.43 ACTIVE UWL 18 17 0 17 9.06 50.33 4.16

10000 18 12 0 12 3.32 18.44 2.90

Table 7. Descriptive statistics of passive and active vocabulary levels

Range Minimum Maximum Mean (M) S.D

Vocabulary Passive 6212.12 2803.03 9015.15 6172.14 1494.61

Active 7525.25 1085.86 8611.11 4698.93 1648.67

Levels

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Table 8. Pearson Correlation Coefficient between Creativity and Lexical Reception

N Correlation Sig (2-tailed)

Creativity 141

Passive Lexical Knowledge 141 0.259** .002

Table 9. Pearson Correlation Coefficient between Creativity and Lexical Production

N Correlation Sig (2-tailed)

Creativity 141

Passive score 141 0.279** .002

** Correlation is significant at 0.01 level

Table 10. Descriptive statistics and post hoc testes results of active and passive levels

Post Creativity Mean S.D Creativity Mean Sig

Level hoc Groups Groups Difference

Low 5645.87 1216.99 Low / Med -739.93* .033

Medium 6385.80 1458.21 Med / High -155.31 .948 Passive

Tamhane High 6541.12 1555.09 Low / High -895.25* .006

Low 4129.03 1213.16 Low / Med -806.90* .033

Medium 4935.94 1658.24 Med / High -157.85 .965 Active

Tamhane High 5093.79 1884. 3 Low / High -964.75* .010

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Indian Life Insurance Industry – Future Outlook

Dr. K. Raji Reddy, Assistant Professor, Department of Commerce & Business Management Kakatiya University, Warangal, Andhra Pradesh-India

R. Kiran Kumar, Faculty Member, Department of Commerce & Business Management, Vivekananda Degree & P.G. College, Karimnagar, Andhra Pradesh-India

Abstract: - Global Economic Environment: In the year 2010 a GDP growth rate of 5.1 per cent was recorded in the world Life Insurance is one of the sectors which have an economy compared to developed economies at 3.1 per adequate growth potential. It is the only financial asset cent, the developing economies at 7.3 per cent. Huge which provides return in addition to the life risk coverage. recovery exists in the global economy after a significant In the modern era term assurance has got less importance crisis in the year 2008. Large deviation is there between since it provides only risk coverage and no return. The economies in terms of growth and recovery made. The investors in life insurance are looking for both good return insurance sector is a colossal one and is growing at a and life risk coverage. Hence the new policies framed by speedy rate of 15-20%. Together with banking services, the companies will have both the elements. After insurance services add about 7% to the country’s GDP. A privatisation of life insurance sector in 2000, drastic well-developed and evolved insurance sector is a boon for changes occurred in the sector. Linked policies were economic development as it provides long- term funds for framed in place of the conventional policies. The investors infrastructure development at the same time strengthening are looking for the gains from the securities market also. the risk taking ability of the country. Keeping in view the These investors can invest in mutual funds but it does not importance of insurance sector in mind the Govt of India cover life risk. The potential for growth and spread of life enacted IRDA Act 2000 with a objective to protect the insurance in India is high due to large population and no interests of the policyholders, to regulate, promote and pension system among the larger work groups which leads ensure orderly growth of the insurance industry and for to no old age income. The insurance sector provides for matters connected with insurance business. the long term contractual savings for the investors. In life insurance business, India ranked 9th among the 156 Indian Insurance Industry: countries. During 2010-11, the estimated life insurance premium in India grew by 4.2 per cent (inflation adjusted). Today there are 24 general insurance companies However, during the same period, the global life insurance including the ECGC and Agriculture Insurance premium expanded by 3.2 per cent. The share of Indian Corporation of India and 23 life insurance companies life insurance sector in global market was 2.69 per cent operating in the country. Insurance penetration and during 2010, as against 2.45 per cent in 2009. This paper insurance density are the two parameters which are used analyses the past & present status of the Indian insurance to assess the performance of insurance industry. sector in general and life insurance in particular. It also Insurance penetration is defined as the ratio of premium discusses about the future of the Indian insurance sector. underwritten in a given year to the Gross Domestic Product (GDP). Insurance density is defined as Introduction: - the ratio of premium underwritten in a given year to the total population. The performance of Indian insurance The Indian Economy: In Indian economy, 8.5 per cent industry is in Table I and II. The insurance density of life growth rate was recorded in 2010-11 compared to 8 per insurance sector had gone up from USD 9.1 in 2001 to cent in 2009-10. The high level of inflation, driven by USD 55.7 in 2010. Similarly, insurance penetration had high food and fuel prices, remained one of the biggest gone up from 2.15 per cent in 2001 to 4.60 per cent in concerns in the economy. As per the RBI Annual Report 2009, before slipping to 4.40 per cent in 2010. 2010-11, low levels of investment activities, especially in the second half of the year 2010-11, put further pressure Income of the industry: on the economy. There is a rise in the growth rate in the The major income in the life insurance industry is the agricultural sector to 6.6 per cent. However, the growth amount paid by the customer viz. premium. rate of industrial sector decreased to 7.8 per cent in 2010- Premium is the amount paid by the policyholders 11 from its previous year’s level of 8.3 per cent. The share (customers) in line with the contract against sum assured of life insurance funds in the total financial saving of the by the company in frequent intervals. There are others household share increased to 24.2 per cent, up from 22.6 incomes like returns from invest made but only premium per cent in 2009-10 and 21.0 per cent in 2008-09. The is given importance. Hence to assess the future of the share of provident and pension funds declined to 9.1 per industry there is a need to assess the premium income of cent in the year 2010-11 from its 11.5 per cent level of the industry. Different types of premium are there: 2009-10. The share of deposits stood at 47.3 per cent, largely at the same level (47.2 per cent in 2009-10).  REGULAR PREMIUM- is the initial amount paid and which will be paid on a regular www.theinternationaljournal.org > RJSSM: Volume: 01, Number: 11, Mar-2012 Page 83

basis and more than one time in the term of 71599.27 crores to Rs. 116461.05 crores compared to a the policy huge up and downs in the income of private companies’  SINGLE PREMIUM- is the initial amount paid income. There is huge variation in the annual growth rates and only once in the term of the policy. of LIC and private companies. Private companies  FIRST YEAR PREMIUM-is the amount paid in recorded a high growth rate of 83.37 per cent in the year the first year of the policy. It 2006 - 07, 102.21 in 2007 - 08 and 71.90in 2008-09. The is the sum of the regular premium and single industry income increased from Rs. 80424.33 crores from premium. 2006-07 to Rs. 165223.99 crores in the year 2010-11.  RENEWAL PREMIUM- is the amount paid at frequent intervals after the first year of the policy. The CAGR in terms of total premium income of the industry is 13.32 per cent from the year 2006-07 to 2010-  TOTAL PREMIUM-is the sum of the first year 11 out of which 09.74 per cent is of LIC and 25.58 per and renewal premiums. cent is from private companies. There is a steep increase

in total premium income of LIC and private companies. The Compounded Annual Growth Rate (CAGR) in terms There is huge variation in the annual growth rates of LIC of regular premium income of the industry is 7.10 per whereas growth rate of private companies is linearly cent from the year 2006-07 to 2010-11 out of which 3.95 decreasing. Private companies recorded a high growth rate per cent is of LIC and 12.32 per cent is from private of 87.31 per cent in the year 2006-07, 82.72 in 2007-08 companies. The income of LIC increased from Rs. The industry income increased from Rs. 156041.59 crores 299866.35 crores to Rs. 36265.36 crores compared to an from 2006-07 to Rs. 291604.99 crores in the year 2010- increase in private companies’ income from Rs. 15474.83 11. crores to Rs. 34529.75 crores and then decreased to Rs.

27664.19 crores. There is an increase in regular premium Market Share: both in LIC and private companies but there is a decrease After privatization of Insurance sector in 2000, drastic in the annual growth rates. In the year 2006-07 the annual changes occurred. The annual growth rate and share of growth rate in LIC and private companies was more than LIC is decreasing but still it enjoys a major share in the 100 per cent. LIC recorded negative growth in the years market which is always more than 50 per cent. In terms of 2007-08 and 2008-09 later it recorded a positive growth. Regular premium in the year 2007-08 private sector

earned 61.23 per cent market share. In case of renewal The CAGR in terms of single premium income of the premium and total premium income earned by companies industry is15.60 per cent from the year 2006-07 to 2010- the share of private companies is increasing whereas as 11 out of which 14.02 per cent is of LIC and 24.45 per LIC is decreasing. Still the market share of LIC in terms cent is from private companies. There is a steep increase of total premium income is nearly 70 per cent in the year in single premium income of LIC increased from Rs. 2010-11. 26337.21 crores to Rs. 50746.99 crores compared to a huge up and downs in the income of private companies’ Comparison of policies of Selected Companies: income. There is huge variation in the annual growth rates of LIC and private companies. Private companies Term Assurance policy: recorded a abnormal growth rate of 204.62 per cent in the In general term assurance means a policy with no maturity year 2010-11. The industry income increased from Rs. benefit. The benefits of LIC, ICICI Prudential and 30258.32 crores from 2006-07 to Rs. 62451.45 crores in AVIVA Life are same in terms of either maturity or death the year 2010-11. benefit but there is a variation in their premiums. Maturity

benefits exist in Met Life and SBI Life companies’ plans The CAGR in terms of first year premium income of the but the premium charges is high. industry is 10.82 per cent from the year 2006-07 to 2010-

11 out of which 09.13 per cent is of LIC and 15.21 per Money back policy: cent is from private companies. There is a steep increase It is a policy in which returns are made in periodic in first year premium income of private companies installments. All the companies have almost same benefits increased from Rs. 19393.69 crores to Rs. 39368.65 crores but the premium charges are different in different compared to a huge up and downs in the income of LIC’s companies LIC, AVIVA and Met Life pay the Sum income. There is huge variation in the annual growth rates Assured amount minus the survival benefits paid earlier at of LIC and private companies. LIC and private companies the time of maturity in addition to the bonus. ICICI and recorded a growth rate of near about 90 to 100 per cent in SBI Life pays 20 per cent more than the sum assured in the year 2006-07. The industry income increased from Rs. addition to bonus. There is a slight increase in the 75617.25 crores from 2006-07 to Rs. 126381 crores in the premium charged by them. AVIVA and Met Life charge year 2010-11. high premiums when compared to other companies.

The CAGR in terms of renewal premium income of the Conclusion: industry is 15.49 per cent from the year 2006-07 to 2010-

11 out of which 10.22 per cent is of LIC and 40.76 per Before the liberalization of insurance sector in India the cent is from private companies. There is a steep increase only one insurance company that offered the life insurance in renewal premium income of LIC increased from Rs. www.theinternationaljournal.org > RJSSM: Volume: 01, Number: 11, Mar-2012 Page 84 is LIC and enjoyed the monopoly in insurance sector. The private insurance companies came into existence with the enactment of IRDA Act 1999. But, the LIC is enjoying the major share in terms of first year premiums and renewal premiums when compared to private sector. A comparison of benefits offered by different products it is clear that the benefits are more in LIC products and hence, the people are coming forward to take policies with LIC only. The penetration is low when compared to advanced countries and there is need to concentrate on it and it should be improved.

REFERENCES: 1. Dr. G. Koteshwar: Risk Management , Himalaya Publishing House 2. Gordon & Natarajan: financial Markets and Services, Himalaya Publishing House, Mumbai. 3. Guruswamy.S: Financial Services, Tata McGraw-Hill Education Pvt. Ltd., New Delhi. 4. Khan M.Y.: Financial Services, Tata McGraw Hill Education Private Limited, New Delhi. 5. Tripaty Nalini Prava: Financial Services, Prentice Hall of India, New Delhi. 6. V. Avadhani: Financial Services in India, Himalaya Publishing House, Mumbai, 2009 7. Vasant Desai: Financial Markets and Financial Services, Himalaya Publishing House, Mumbai.

Websites: 1. www.licindia.in 2. www.iciciprulife.com 3. www.avivaindia.com 4. www.sbilife.co.in 5. www.metlife.co.in 6. www.irda.gov.in

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Annexure

TABLE I PERFORMNACE OF INDIAN INSURANCE INDUSTRY IN 2010 LIFE INSURANCE GENERAL INSURANCE PARAMETER INSURANCE SECTOR SECTOR SECTOR Insurance Penetration 4.40 0.70 5.10 (in %) Insurance Density 55.7 8.7 9.9 (in USD) Source: www.irda.gov.in TABLE II PERFORMANCE OF INDIAN LIFE INSURANCE INDUSTRY Year Density (USD) Penetration (%) 2001 9.1 2.15 2002 11.7 2.59 2003 12.9 2.26 2004 15.7 2.53 2005 18.3 2.53 2006 33.2 4.10 2007 40.4 4.00 2008 41.2 4.00 2009 47.7 4.60 2010 55.7 4.40 Source: www.irda.gov.in

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