ISSN: 2249-8834
Z I R A F EXCEL International Journal Of Multidisciplinary Management Studies
February 2012 - Volume : 2 - Issue : 2
A Research Publication of
Vision : Sharing Research for Better World EXCEL INTERNATIONAL JOURNAL OF MULTIDISCIPLINARY MANAGEMENT STUDIES (EIJMMS)
ISSN ONLINE: 2249-8834 VOL.2-ISSUE- 2 FEB. 2012
GUEST EDITOR
DR. HARSH SADAWARTI PROFESSOR & DIRECTOR RIMT-Institute of Engineering & Technology Mandi Gobindgarh India
EXCEL International Journal of Multidisciplinary Management Studies Vol.2 Issue 2, February 2012, ISSN 2249 8834 Online available at http://zenithresearch.org.in/
EXCEL INTERNATIONAL JOURNAL OF MULTIDISCIPLINARY MANAGEMENT STUDIES (EIJMMS) VOL. 2 - ISSUE 2; FEBRUARY 2012
S.NO. CONTENTS PAGE LOCATION-BASED SERVICES FOR TOURISM - LITERATURE REVIEW 1. 1-21 CHEN-HSIUNG CHOU AN INVESTIGATION OF FACTORS RELEVANT TO PAYOUT RATIO IN LISTED FIRMS ON THE TEHRAN STOCK EXCHANGE 2. 22-37
HASSAN ALISINAEI, LEILA HABIBI GOVERNMENT FISCAL OPERATION AND FINANCIAL DEEPNNING IN SRI LANKA 3. 38-54
R.A RATHANASIRI, T.C WIJESINGHE ROLE OF FINANCIAL SERVICES IN ECONOMIC DEVELOPMENT: A STUDY IN DEVELOPING COUNTRIES 4. 55-64
DR. SURESH VADDE REDUCING RISK OF CARDIOVASCULAR DISEASE THROUGH PHYSICAL ACTIVITIES 5. 65-69
DR. ARVIND MALIK ROLE OF LEADERSHIP IN QUALITY 6. 70-81 SUNITA CHAUHAN, DR. BHAVNA AGARWAL EMOTIONAL INTELLIGENCE LEADS TO CONTINUOUS LEARNING FOR HIGH JOB PERFORMANCE AND CAREER COMMITMENT 7. 82-87
DR. J. VENKATESH, MR. D. BALAJI SEQUENCING BATCH REACTOR FOR GREYWATER TREATMENT 8. 88-107 PROF. J.S.MAIN, BHARAT C. INGAVALE ENTREPRENEURSHIP AND ECONOMIC PROCESS 9. 108-114
VIRENDER PAL DISABLED: PUSHED TO ENTREPRENEURSHIP 10. 115-131 G. MADAN MOHAN INTEGRATION OF HR PRACTICES AND KNOWLEDGE MANAGEMENT 11. 132-139 MS.SHOBHAA B.HANGARKI
THE SCOPE OF CATASTROPHE BONDS AS A CATASTROPHE RISK earch.org.in FINANCING ALTERNATIVE IN INDIA: A STUDY FOCUSED ON CATASTROPHE 12. LOSSES OVER THE LAST FIVE YEARS 140-147
MR. STEEVAN ROBERT TELLIS, DR. AJOY S JOSEPH A COMPARATIVE STUDY OF SELF-CONCEPT AND SELF-CONFIDENCE OF SIGHTED AND VISUALLY IMPAIRED CHILDREN 13. 148-157 www.zenithres
DR. VIKRANT MISHRA, MS. ASHA SINGH
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IMPACT OF SOCIAL ORGANIZATIONS IN DEVELOPMENT OF EDUCATION IN HARYANA IN 19TH CENTURY 14. 158-168
NAVNEET KAUR LEVEL OF AWARENESS ABOUT HIV/AIDS AMONG TRUCK DRIVERS PLAYING ON NH-65 NEAR TITRAM MOAR IN KAITHAL DISTRICT, HARYANA 15. 169-175
SATISH KUMAR CORPORATE SOCIAL RESPONSIBILITIES - A CASE STUDY OF INDIAN OIL 16. 176-189 NEETU KWATRA DRIVERS OF BRAND EXTENSIONS SUCCESS 17. 190-203 DR. K. SHYAMA SUNDAR, B.JEYA PRABHA THE ROLE OF CORPORATE GOVERNANCE IN DEVELOPMENT OF CO- OPERATIVE BANKS IN INDIA 18. 204-212
DR. M. P. NAIK A COMPARATIVE STUDY OF TOURIST RESOURCES OF GUJARAT STATE 19. 213-234 DR. HITESH S. VIRAMGAMI, DR. J. K. PATEL A STUDY ON INVESTMENT PATTERN IN MUTUAL FUNDS AND PREFERENCE OF RETAIL INVESTORS IN CHENNAI CITY FOR KARVY CONSULTANTS 20. LIMITED, CHENNAI 235-245
DR. S. RADHIKA, MR. K. SRINIVASAN WORKING WOMEN ATTITUDE ON BUYING OF MICROWAVE OVEN – AN EMPIRICAL STUDY 21. 246-251
M. NASRIN SULTHANA THE IMPLEMENTATION OF KNOWLEDGE MANAGEMENT SYSTEM IN B- SCHOOLS 22. 252-260
DR ALPANA TREHAN, POOJA .S.KUSHWAHA
earch.org.in earch.org.in
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EXCEL International Journal of Multidisciplinary Management Studies Vol.2 Issue 2, February 2012, ISSN 2249 8834 Online available at http://zenithresearch.org.in/
LOCATION-BASED SERVICES FOR TOURISM - LITERATURE REVIEW
CHEN-HSIUNG CHOU*
*Ph.D. Student, Department of Learning Technology, The University of North Texas, U.S.A. *Instructor, Taiwan Hospitality and Tourism College, Taiwan, R.O.C.
ABSTRACT
This article review is going to review and talk about the development of mobile Location-Based Services (LBS) in Tourism. Since most of the tourists visiting any strange attractions need to consider various issues such as accommodation, restaurant, tourist attraction information, and so forth, the features of mobile LBS can provide right in the time and right in the place information, services, and suggestions for travelers use. Therefore the paper reviews and exams the articles with LBS for tourism, and organized this article review as what LBS is, what tourism LBS applications have, what users experience is from LBS, and what tourists attitude is about LBS.
KEYWORDS: Mobile, Location-Based Services (LBS), Tourism, Users Experience. ______
INTRODUCTION
Tourism is both an enjoyable and pleasurable activity for most of people globally and an enormous significant for the world economics. According to the World Tourism Organization (WTO) of United Nations, the international tourists visit reached 922 millions in 2008, and there is a 2 percent increasing rate contrast with 2007. However, tourists usually encountered problems when they are traveling in a strange destination, area, or city because of the lack of travel information. In Brown & Chalmers‘s (2003) study in tourism and mobile technology, they figured several problems that travelers have usually faced. The first situation is that ―what to do?‖ followed by ―how they are going to do‖ and the last problem is that ―finding where things are‖. All of those situations irritate them deeply while they are visiting a new place. Although finding and figuring out those problems, organizing and planning itinerary before trips, and traveling at destinations are part of the gratification of tourism, tourists need a better services and method to resolve problems. Those problems are sometime frustrating travelers especially when the information of itinerary is different from practical situation or a lack of information attractions or events. Therefore, could mobile technology provide solution for those travel problems?
Since the Federal Communications Commission (FCC) of United States took action to improve the quality and reliability of 911 emergency services for wireless phone users in 1996 called Enhanced 911 rules (E911), the wireless network operators must provide at least 95% of www.zenithresearch.org.in all cell phone calls‘ location by December 31, 2005 (cited from Wikipedia). This action provides
the technological foundation for the Location-Based Services (LBS) (Junglas & Watson, 2008).
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Moreover, lots of projects, applications, mobile carriers provide LBS for tourism in order to provided better information services. Could those LBS provide the better travel problem solutions? There are some articles and researches relating to LBS and tourism have been published globally. The following article review is worthwhile discussing in those sectors.
What the LBS are
What the LBS features in tourism are
What tourism LBS applications have
What users‘ experience in LBS is
What tourists‘ attitude of LBS is
After reviewing articles and discussions in those sectors, features, capacities, and serivies of LBS could be clearer for tourism industry. The general image about LBS for travel problems and tourism can be presented through this article review.
WHAT THE LBS ARE
As mentioned in the introduction, LBS are originally created by the rules of E911 asked from FCC of United States America. Except for knowing LBS affected by E911, what the LBS is also need to be verified.
According to Junglas & Watson (2008), LBS have four geographic location ―entities.‖
The firstly entity indicates the object having location information services. It can be human or non-human. Secondly, there are always at least two entities involved in a Location-Based Service request—just like there are at least two people on a phone conversation. Thirdly, one of the entities is always the object of LBS. In other words, it is the entity about which location information is recorded. Fourthly, one of the entities is always a recipient of the location information. LBS researchers distinguish between location-tracking services and position-aware services.
Location-tracking services provided information about a user‘s whereabouts to entities other than the users, while location-aware services supply the users (the information requester) with personal location data.
Vrček, Bubaš, & Bosilj (2008) in the article of ―User acceptance of location-based services‖ give two definitions of the LBS.
LBS definition 1: LBS is an information services available via mobile devices and use of mobile networks and are based on the capability of definition of location of mobile
device. www.zenithresearch.org.in www.zenithresearch.org.in
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LBS definition 2: LBS is a wireless IP service using the geographical information system (GIS) for the mobile user, i.e. each application service using the position of a mobile device. This definition describes LBS as an intersection of three technologies (Figure1).
FIGURE 1 LBS AS THREE INTERSECTION OF THERE TECHNOLOGIES (AS CITED FROM VRČEK,BUBAŠ, & BOSILJ, 2008)
Two technologies can provide LBS functions, such as signal measurements, and the location estimate computation based on the measurements (Mitchell and Whitmore, 2003).
In order words, there are two techniques to approach the mobile device users. One is using radiolocation from cellular network, and the other one is a Global Positioning System (GPS.) Both of them can provide LBS. By using GPS techniques, the end users also need caller or handset with Global Positioning System receiver such as GPS Navigator, cell phone with GPS function and so forth. Subsequently, positioning techniques can be categorized into several varieties, each category with its own advantages and disadvantages. Those types are cell- location, advanced network- based, and satellite-based positioning (Barnes, 2003). The following Table 1 displays the advantages and disadvantages of the three different technique types.
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TABLE 1.ADVANTAGE AND DISADVANTAGE OF LBS TECHNIQUE TYPE
Technique type Advantages Disadvantages
Cell of Origin (COO) or Very Fast speed. Very limited accuracy in areas Cell-ID, with low cell radius Typically around 3 seconds.
Low cost.
No modifications needed to
networks or handsets
Estimated Time of Arrival Fast speed. Accuracy depend on (ETOD) for GSM, ETOD takes around 5 seconds. the stations of signal measurement and number of Moderate cost. Location Measuring
Software modified handsets Units (LMUs) needed for positioning Accuracy around 50m to 125m
Global Positioning System High accuracy High cost. (GPS) and Assisted Global (Outside of the buildings, New handsets needed Positioning System(A-GPS) approx. 10-20m; Inside of the buildings, approx.50m for positioning
A-GPS has high speed about 5 Variable. seconds. GPS takes around 10- 60
seconds to locate position and Signal degradation and reduced accuracy in certain
environments, e.g., inside of the buildings or urban canyons
The types of technique which are Cell of Origin (COO), or Cell-ID includes Service Area Identity (SAI), and LocWAP and enhanced Cell-ID. It may also include enhancements with propagation time measurements. The advantages of COO comprise fast speed with low cost. It generally takes about three seconds to locate the position, and it does not need to be modified the www.zenithresearch.org.in networks or handsets so it turns out to be the most economical type. The shortage of the COO is
that low accuracy if the area with low cell radius.
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The second type is Estimated Time of Arrival (ETA) for GSM. The related techniques are Advanced Forward like Triangulation (AF-LT), Idle Period Downlink (IP-DL) for CDMA and WCDMA. Fast speed and moderate cost are the advantages of ETA. It takes about five seconds to relocate the position and the software needs to modify the handset position. The accuracy is about 50 meters to 125 meters depending on the visibility of base stations of signal measurement and number of Location Measuring Units (LMUs).
The last technique is Global Positioning System (GPS) and Assisted Global Positioning System (A-GPS). The advantage of GPS is accuracy positioning that could locate objects about 10 to 20 meters outside of the building and around 50 meters inside of the building. The shortages are high cost and variability. Since it needs a new handset for positioning, the cost is higher than others; the performance time are various from 10 to 60 seconds relying on applying environment.
Consequently, at the end users‘ point of view, mobile devices or mobile handsets such as personal digital devices (PDA), mobile phone (Google‘s Android smart phones, iPhone, and so forth), and the global positioning systems (GPS) can provide not only security issues but also carry lots of functions, such as navigation services, and tracking services.
WHAT LBS FEATURES IN TOURISM ARE
No matter which technique is applied in the service, LBS architecture consists of five basic components: Mobile Devices, Positioning, Communication Network, Service Providers and Content Providers(Steiniger et al. 2006). With those five components, LBS can provide a lot more functions and features for end users. Van de Kar and Bouwman (2001) figured out three types services of LBS which were emergency services, services of mobile operators and value added services, and focusing on the last category as a primary opportunity for development of m- business.
In the paper of ―Foundations of Location Based Services,‖ Steinger, Neun, & Edwardes (2008) presented that LBS has several possible applications and can provide added value. The
possible applications and added value of LBS are illustrated as table 2.
TABLE 2: THE POSSIBLE APPLICATIONS AND ADDED VALUE OF LBS
LBS possible applications: For the carrier, LBS provide added value by enabling services such as:
Requesting the nearest business or service, Resource tracking. Objects without privacy such as an ATM or restaurant controls, using passive sensors or Radio- Frequency Identification (RFID) tags, such as packages and train boxcars
Turn by turn navigation to any address Resource tracking with dynamic distribution www.zenithresearch.org.in
Taxis, service people, rental car
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Locating people on a map displayed on the Equipment, doctors, fleet scheduling mobile phone
Receiving alerts, such as notification of a sale Finding someone or something, such as person by on gas or warning of a traffic jam skill (doctor), business directory, navigation, weather, traffic, room schedules, stolen phone, emergency calls, etc.
Location-based mobile advertising Proximity-based notification(push or pull). Targeted advertising, buddy list, common profile matching (dating), automatic airport check-in, etc.
Asset recovery combined with active RF to Proximity-based actuations (push or pull). find, for example, stolen assets in containers Payment based upon proximity (EZ pass, toll where GPS wouldn't work watch)
Also, in the article review of a research from Vrček, Bubaš, & Bosilj (2008), they summarize the possibilities, features, and capacities from other papers into two fields which are services for business between company and end users (B2C) and services for business between companies (B2B). The Table 3 is classification of LBS modify from the paper of Vrček, Bubaš, & Bosilj (2008).
TABLE 3. CLASSIFICATION OF LBS
Type of LBS LBS for business to consumer (B2C) LBS for business to Business (B2B)
Emergency calls Vehicle tracking
Information services, Travel services Product tracking
Navigation, Routing, Automotive Traffic management assistance Functions of LBS People and pet tracking Product replenishment
Transactions Mobile sales
Intelligent advertising (Banners, M-customer support www.zenithresearch.org.in
Alters, Marketing
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Entertainment Field personnel support
Oertel et al. (2002) indicated that Location-Based Services are considered the crucial fact for success of mobile applications. It assumed that personalized services should be the essential of the mobile services. In other words, LBS on mobile phones and smart phones are expanding speedly. Since smart phone enriched satellite positioning features LBSs on mobile phones are popular and widely available. The downloadable applications are increasing in online stores and encouraging users to experiment with new services. Using smart phones to share information about themselves has becoming more comfortable for people (Wilson, 2010).
Since LBS through smart phone or handset devices have become popular, what LBS can be applied into tourism is the draw of this paper. In 2000, OpenGIS Location Service (OpenLS) conducted some possible applications of LBS relevant to tourism are quoted in Table 4.
TABLE 4. POSSIBLE APPLICATIONS OF LBS RELEVANT TO TOURISM (AS CITED FROM OPENLS, 2000)
Possible applications Examples of case
Traffic Information ―there is a traffic queue ahead, turn right on the A3!‖
Emergency Services ―help, I'm having a heart attack!‖
Roadside Emergency ―help, my car has broken down!‖
Law Enforcement ― what is the speed limit on this road where I am at?‖
Classified Advertising ―where are nearby yard-sales featuring antiques?―
Object visualization ―where is the historic parcel boundary?―
Underground Object ―where is the water main?‖ Visualization
Public Safety Vehicle ―who is closest to that emergency?‖ Management
Location-Based Billing ―free calls on your phone, in a particular location‖
Leisure Information ―How do we get to the Jazz Club tonight from here?‖
Road Service Information ―Where is the nearest petrol station?‖ www.zenithresearch.org.in
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Directions ―I'm lost, where is nearest Metro station?‖
Vehicle Navigation ―how do I get back to the Interstate from here?‖
Vehicle Theft Detection ―my car has been stolen, where is it?‖
Child Tracking ‖tell me if my child strays beyond the neighborhood.‖
WHAT TOURISM LBS APPLICATIONS HAVE
In the tourism industry, it is an industry that relies highly on integrated information service. Hinze and Voisard (2003) supposed that Tourism Information Providers (TIP) delivering travel information should base on location, time, profile, and using history. They have tried to combine with the LBS and Event Notification System (ENS) in tourism in providing the accurate information for tourists use.
Yu and Chang (2009) signified that user profile management, tourism information management, location-aware personalized recommendation of attractions and tour plans, tour plan management, as well as map-based positioning and visualization are the farmworks of functional requirements. From M-Taiwan project, TIP can deliver the richer and targeted information for end users. Mobile Learning, for instance, can offer services of diversified study, museum, and cultural center for travelers. The Mobile Living is providing precise traffic, shopping, and events information. The following are developing of several projects, applications, and apply of LBS for tourism from presented papers. This section is showing the features of thoes developments including Cyberguide system in USA by Abowd et al. (1997), GUIDE system in UK by Cheverst et al. (2000), CRUMPET in European from Zipf et al. (2001), Dynamic Tour Guide in Germany by Kramer et al. (2006), and after launching the smart phone in Jun 2007.
Cyberguide---California, USA. (Abowd et al., 1997)
Cyberguide is a mobile context‐aware tour guide and one of the first mobile tour guides presented by Abowd et al. (1997). It works outdoor with GPS and indoor with infrared to determine context information like users‘ position and orientation. The overall system is designed for providing four serves for tourist such as map component, information component, positioning component, and communication component. The map component can provide local information such as tourist attractions, restaurants, hotel locations around the tourists. The information component can support information relating to objects and people interested in physical world. The navigation component can use positioning to deliver accurate information for tourist location and orientation. The final component, communications component, creates a
channel for tourist sending and receiving messages or information. www.zenithresearch.org.in www.zenithresearch.org.in
GUIDE---Lancaster, U.K. (Cheverst et al, 2000).
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The GUIDE system integrates four features such as the use of personal computing technologies, wireless communications, context awareness and adaptive hypermedia so that the tourists need of the information and navigation needs can be supported (Cheverst et al, 2000). In more details, GUIDE is created for Lancaster, U.K., and it adopts a mobile wireless communications infrastructure in order to broadcast dynamic information and positioning information to portable GUIDE devices. The location-based navigation and information retrieval mechanisms are provided by the system. Both features are useful and functional. In the paper of Cheverst et al, (2000) show that visitors are able to use it to receive dynamic information, e.g. the ‗specials‘ menu of a café, was a worthwhile experience.
CRUMPET---European (Zipf et al. 2001)
The CReation of User-friendly Mobile services PErsonalized for Tourism (CRUMPET) is a European Information Society Technologies (European IST) project. The main objects of CRUMPET are to implement and trial tourism-related value-added services for nomadic users across mobile and fixed networks and to evaluate agent technology in terms of user- acceptability, performance and best-practice as a suitable approach for fast creation of tough, scalable, seamlessly accessible nomadic services (Zipf et al. 2001).
FUNCTIONS OF CRUMPET
a) Recommendation of services
b) Interactive maps
c) Information on tourist attractions
d) Pro-active tips, giving an unobtrusive tip
The approaches of CRUMPET included:
a) tourism-related service content,
b) adaptive nomadic services responding to underlying dynamic characteristics, such as network Quality of Service and physical location;
c) a service architecture implementation that will be standard-based;
d) suitability for networks that will be those that typical tourist users might be exposed to now and in the near future (like GPRS and UMTS);
e) suitability for a range of terminal types, like next generation mobile phone;
f) services that will be trailed and evaluated by mobile service providers. (Zipf et al.
2001) www.zenithresearch.org.in www.zenithresearch.org.in
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Belz et al. (2002) also pointed out the key features of the CRUMPET system.
Making use of personal interests
a) Domain-specific interests of the user serve as a basis for selecting and sorting service offers.
b) Interests of single users as well as groups can be considered.
c) The system learns the user‘s interest over time, i.e. from the user's interaction with the system.
Making use of the user‘s current position
a) The user's current location is the observation on the basis of GPS sensor data.
b) The GPS data about the geo-coordinates are related to the data in Geo-Information Systems (GIS) of the region.
c) The current location serves the input of the service selection.
d) Location-Based Services (LBS) are offered, such as creating a tour, giving directions, creating maps.
Service mediation
a) The system has been analyzed as a multi-agent system, including middle-agents to
mediate between users and distributed service agents.
b) The middle-agents integrate various support features of CRUMPET and facilitate the users‘ interaction.
c) The system may explore several content providers for one request of the user.
d) Pro-active assistance is given, when enabled by the user (As cited from Belz et al.
2002).
Mobile Tourist Guide Service---Salamanca, Spain.(Pavón et al. 2004)
In the paper of Mobile tourist guide services with software agents (Pavón et al. 2004), authors presented the application, The Mobile Tourist Guide Service, also called TOURIST GUIDE-USAL, provides a set of agents to assist potential tourists for organizing travel itinerary and enabled tourist to adjust their schedules on the move of using wireless communication
systems. The system designed into several parts of features including Planner Agent, Tracker www.zenithresearch.org.in
Agent, and Performer Agent. Planner Agent assesses tourists and helps them to identify tourist
routes.
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The Tracker Agent remains updated information about the attractions, restaurant information, public transportation conditions, and for meeting the requirement of the tourists. The Performer Agent acts an association role providing an easy interface for users.
Dynamic Tour Guide (DTG)---Görlitz, Germany (Kramer et al. 2006).
Dynamic Tour Guide (DTG) is a mobile agent that selects tourism attractions, plans individual tours, provides navigational guidance and offers location based interpretation. In contrast to existing tour guides the DTG computes an individual tour in real-time by considering available context information like personal interests and location based services (Kramer et al. 2006). The paper of Kramer et al. (2006) also indicated that tourists in Görlitz, Germany with one based on simulating tours using the gathered interested information and tour durations indicated that context-aware information will help to enjoy a destination at its full potential. Two facts of DTG provided by Author quoted below.
1. One can predict that it provided better information via a mobile device by the DTG, more tourists would visit attractions appropriate to their interests favorite.
2. The DTG may help tourists visiting destinations for the first time and able to pick up the sights and are more interested in from the start by providing all information that are invisible or inaccessible for tourists.
Launch of smart phone---In USA & Worldwide
Since Apple‘s iPhone launched on Jun 26, 2007, smart phone which can support LBS features has boomed in the world. The selling amount of smart phone in 2009 is 174.2 million (ITD, 2010). According to the report of Market Intelligence & Consulting Institute (MICI), around 550 thousands smart phone could be sold in Taiwan in 2009. Moreover, more and more device companies also will introduce new smart phone products in the nearly future.
Farber (2008) reported the news showing that Google opens up LBS with plug-in for mobile technology. Following by the LBS mobile services, several businesses will have the
opportunity to develop LBS from mobile sites using Google tools without having to pay any fees. Additionally, the open-source geo-location tools will launch soon. As a result, lots of mobile carriers can provide LBS through smart phones plus Google‘s open-source. This phenomena of mobile and LBS became the trend of cell phone services. The case of LBS through mobile phone carriers in Taiwan is describes.
There are five major wireless network providers can act as Tourism Information Provider (TIP) in Taiwan. They are Chunghwa Telecom Company, Taiwan Mobile Company, Far Eastone Telecommunications Company, Asia Pacific Telecom Company, and Vibo Telecom Company as well. Only two companies provided LBS so far. The Chunghwa Telecom Company launched its LBS in 2003. At first, the target users contain logistic industries, security service companies, and broadcast companies. In February 2009, nevertheless, it designs a new LBS system for its own iPhone users named Hami. The Hami provides 500 thousands stores information and Google www.zenithresearch.org.in map function through its wireless networks. The second company is Vibo Telecom Company. Its
LBS system began on September 26, 2008 called Map Daily. The users can utilize the LBS
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WHAT USERS’ EXPERIENCE IN LBS IS
The last section has discussed the LBS applications and projects proving lots of services and features for travelers. In this section, the paper will describe, exam, and analysis empirical research papers about the users‘ experience, finding, or referring LBS from tourism.
In the survey finding from Freytag (2003), around 1,500 tourists in Heidelberg, Germany were asked about their activities during their visit of the city in 2003. The first important fact to mention is that most tourists explore the city by walking and on their own planning. Only 7% tourists decided join the group tours. The second finding indicates that most tourists move within a very limited area around old towns. Almost everybody visits the castle while all other sights receive less attention; some even less than 5% visits. This implies that most tourists visit only a few places. This is probably an effect of missing contextual information. Kramer et al. (2006) made a prediction like that the more appropriate information provided, e.g. via a mobile device by the DTG, more tourists would visit travel spots to their interested places. The following paragraphs are showing the papers that providing travel information through mobile devices.
In 2000, Cheverst et al. developed a context-awareness electronic tourist guide called ―Guide‖ and did the experimental study. The study findings separated into five sections: validation of requirements, information presentation, GUIDE unit, visitor profile, and acceptance of awareness information are showed below.
1. VALIDATION OF REQUIREMENTS
Majority of users (53/60) valued the flexibility provided by the system such as able to use the system as a tour guide, a map or a guidebook. Two features, location-aware navigation and information retrieval mechanisms, provided by the system were both useful and reassuring. However, though user‘s experience and expression, they thought the system was still not easy to
use and wished its interface becoming simpler. The interactive service was unable to provide immediate reactions. When booking an accommodation through system, there are only five participants (5/60) would much rather speak to the hotel representatives. Most users (48/60) said that they would want some from the hotel to confirm that their reservation had been approved.
2. VISITOR’S SUBJECTIVE OPINION ON INFORMATION PRESENTATION.
All visitors appreciated to be able to link and receive greater levels of details on an information topic. Some users, nonetheless, said that they might have missed information on a particular topic. Most visitors (59/60) enjoyed using GUIDE to explore the city. And yet, they were frustrated because of information not available on a particular attraction when using the system. The visitors also expressed that they trusted the information presented by the system,
including the navigation instructions. www.zenithresearch.org.in
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3. VISITOR’S SUBJECTIVE OPINION ON THE GUIDE UNIT.
Visitors were glad to own a portable GUIDE unit. However, some users said that the GUIDE unit was too large and preferred a thinner device.
4. INTERESTING RESULTS BASED ON VISITORS PROFILE
Teenage users seem excited in the technology and visited more than once twice as many links as passable (per minute of usage). Moreover, visitors without web experience were still comfortable in using the system to follow a tour and retrieve information by navigating hypertext links.
5. VISITORS ACCEPTANCE OF AWARENESS INFORMATION
Users knew the GUITE device might not be able to get the whole information since wireless connection might not be available in some areas. On the other hand, visitors were appreciated the function of positioning (Cheverst et al. 2000). The users‘ experiences of GUIDE system experimental research by Cheverst et al. are analyzed and organized as table 5.
TABLE 5. THE FINDING OF USERS EXPERIENCE FROM GUIDE (EDITED FROM CHEVERST ET AL., 2000)
Component of Positive experience Negative experience GUIDE
Validation of Location-aware navigation and GUIDE was still not easy to use and requirements information retrieval were able to use wished its interface becoming simpler. the system as a tour guide, a map or a guidebook.
Information 1. Users appreciated the idea of being 1. Some concern might have missed Presentation allowed to follow links to receive information on a particular topic. greater levels of detail on an information topic. 2. Users were frustrated because information was not available on a 2. Visitors stated that they enjoyed particular attraction. using GUIDE to explore the city.
3. Visitors trust such a system when provided by a reliable source the apparent accuracy of the information.
GUIDE unit. 1. GUIDE unit was portable. 1. GUIDE unit was too large preferred (Device) a thinner device.
Visitor Profile 1. Teenage users seem excited in the N/A www.zenithresearch.org.in www.zenithresearch.org.in
technology and visited more than once
twice as many links as possible.
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2. Visitors without web experience also can comfortably using the GUIDE.
Acceptance of 1. Function of positioning is good and 1. Signal connections may be weak/or Awareness easy for users in knowing thier no signal in some areas. Information location.
From the study of Users need for location-aware mobile services (Kaasinen, 2003). The study did in Finland and had 55 participants divided into 13 groups. The author got several significant responses from participants.
a) The attitudes of the users towards location-aware services were quite positive both in the group interviews and in the user evaluations.
b) The interviews and user evaluations, topical information turned out to be important to the users.
c) Yellow Pages service made no distinction between different kinds of restaurants.
d) The users in the interviews said that location-aware systems should not lead to a predestined and over-controlled the environment. The user should feel and be in control.
e) The users appreciated the possibility to generate and store their own information.
f) Since the contents may come from several separated service providers, consistency becomes very important.
g) Privacy is another important issue for LBS users.
The finding of Location-Based mobile tourist service-first user experiences (Schmidt-elz et al., 2003) adopted the CRUMPET (Creation of User-friendly Mobile Services Personalised for Tourism) as the LBS application. There were 77 people involved into this study and gave the feedback in the three sectors.
a) Transportation information in a very high ranks; users from interviews hope for receiving frequent update, reliable, and personalized transportation information.
b) Map functions need also ranks in a very high level. The map with highlighting current position of the users, a tour, or attraction was significant for tourists.
c) Location-Based Services (LBS) and transportation information would be the critical
concern for the application for a mobile tourism support. www.zenithresearch.org.in www.zenithresearch.org.in
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In 2004, Pavón et al. presented their experimental study, Mobile Tourist Guide Services (MTGS) with software agents. The experiment was executed the City of Salamanca, Spain in 2003; the participants were at the number of 6217 tourists who visited the city during the study. The methodology divided into three groups which were providing a professional tourist guide, using Mobile Tourist Guide Service (MTGS), and traveling by themselves. The finding showed that the travelers using Mobile Tourist Guide Service had the 62.7% high level satisfaction from traveling the city. The group providing professional tourists guide had 55.9% of a high level satisfaction; on the other hand, the group traveling by themselves has 16.7% of a high level satisfaction from traveling the city. Consequently, the degree of satisfaction in the tourists used the help of MTGS was higher than the other groups of tourists.
The users‘ experience on the functions and features are mostly pleasure and enjoyable, and satisfied on the local navigation and information such as tour guide information, map information, and transportation information. Users gave positive feedback to the researches. For example, participants of the paper of Cheverst et al. (2000) stated that the system retrieved location information and map were useful and able to help in their visit. Kaasinen (2003) in his research got the significant positive feedback from users on the location-aware information services. In a research of Schmidt-elz et al. (2003) on the CRUMPET project in Europe, the study pointed out that this service is useful for travelers when they need transportation information. The MTGS project from Pavón et al. (2004) demonstrated that about 62.7% of a high level satisfaction from traveling the city when visitors used the mobile devices with LBS function. Accordingly, the feature of LBS has been accepted and recognized by participants and travelers.
From the topic information side, two papers, Cheverst et al. (2000) and Kaasinen (2003), showed users were enjoying their trips during traveling with information providing from mobile devices. Furthermore, illustrated the accuracy of the information needs improved such as the papers of Kaasinen (2003) and Schmidt-elz et al. (2003). For instance, the ―Yellow Page Services‖ could not provide the information of different kinds of restaurants. The transportation information providing from the CRUMPET was needed to update in order to give the precise information for travelers. Some particular topics, moreover, concerned by users also had missed
Cheverst et al. (2000).
There were also other several shortages responded form users such as difficult interface of applications, heavy mobile devices, unstable wireless signal, concerning personal privacy. The first shortage was the difficulty of using interface. From the feedback of participants of Cheverst et al. (2000), users feel like the interface of application was too complicated and not easy to use. They wished it could easier in order to enjoy their trips. The second drawback was the heavy devices union. The users, although, appreciated the portable mobile devices they had experienced, they also indicated that the devices were too big and heavy to carry during their trip (Cheverst et al., 2000). The third disadvantage was unstable wireless signal. The users said that they were frustrated when they could not have wireless signal. The wireless signal was also weak in some areas, and the reaction and speed was slow (Cheverst et al., 2000). The final
shortcoming was the privacy issue. Since LBS can locate the individual position, users sensed www.zenithresearch.org.in
that their personal information and position could be exposed openly. The papers of Kaasinen
(2003) and Junglas & Watson (2008) implied that privacy issue was important for LBS users.
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Their personal information might be gathered from functions of LBS. Therefore, when users experienced the LBS they worried about revealing their individual information as well.
WHAT TOURISTS’ ATTITUDE OF LBS IS
Mobile services were also widely assumed that it should be personalized (Short, 2000). In the paper of Schmidt-Belz et al. (2003), Location-based mobile tourist services first user experience, they claim that tourists have various interest profiles leading to the necessity of personalized interest profiles. In order to affect on the tourists behavior, computing and simulating from gathered profiles tours are essential.
Chang et al. (2006) investigated the users‘ attitude toward five rudiments of LBS such as perceived usefulness, perceived ease of use, security and privacy, location information and context awareness, and device function. The finding illustrated that perceived usefulness, perceived ease of use, and security and privacy were associated with travelers' attitude toward using LBS.
In addition to the Vrček et al. (2008) presented the study of User acceptance of Location- Based Services (LBS). The study tested the users‘ thoughts of LBS components counting emergency and safety services, navigation, information tracking, entertainment, intelligent, and advertising. The finding result suggested that emergency and safety services, and navigation services had a significantly higher rate of acceptance than other types.
In 2008, Junglas & Watson evaluating user perceptions of location-tracking and location- aware services showed that participants were highly motivated to partake in the experiment ;even though, they had to spend more than three hours to complete experiment. The study found that the rank of participants‘ enjoyment among remained high to extremely high (88%) rate. Thus, Authors referred that people were very interested in LBS with a technology innovation. Nonetheless, except the passion on features of LBS, privacy concerns were subsequently emerged. Since LBS could position individual location, it could also grasp information on personal locality. Junglas & Watson (2008) referred from their study about users having a strong tendency to reject LBS. As a consequence, privacy concerts could likely be a major determinant
in the success of LBS.
DISCUSSION AND CONCLUSION
The limitation of this article review has several sectors. The majority sector is that the LBS technology and services are new innovation within the recent years so that there are some challenges of finding published articles and papers and many are not able catch up with the newest services provided in the market, it is especially in tourism fields. The second limitation is that the language barriers, some LBS papers or articles presented in other languages, such as Japan and Korea, the development and services of LBS are not involved in this review. The third limitation is that this review is focusing on academic papers regardless of news and magazine, so that the review is not covering much about smart phones or other news hand hold
devices with LBS. www.zenithresearch.org.in
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By reviewing the articles above, there is an interesting finding. The paper related in applying LBS into tourism are mostly presented by European scholars inculding Cheverst et al. in 2000, Zipf et al. in 2001, Kaasinen in2003, Pavón et al. in 2004, and Kramer et al.in 2006. Only one paper is from United Stated (Table 6). What is the reason or why most of the papers have been presented by European authors? Does this case related to LBS services, does this situation correlating with tourism market or tourism style, or does researchers in Euroupen are more curious on LBS for tourism? This is an interesting issue and that it might need more attention to it in the nearly future.
TABLE 6. THE LBS APPLICATION/DEVICE/PROJECT FOR TOURISM
Author Adopted application Paper retrieved from
Abowd et al., 1997 Cyberguide system California, USA.
Cheverst et al., 2000 GUIDE system Lancaster, U.K
Zipf et al., 2001 CRUMPET project European
Kaasinen, 2003 Location-aware mobile services Finland
Pavón et al., 2004 Mobile Tourist Guide (MTG) Services Salamanca, Spain
Kramer et al., 2006 Dynamic Tour Guide (DTG) Görlitz, Germany
Also, when review papers about tourists experience with LBS, those articles are mostly related to European countries. The four main papers of user‘s LBS for tourism experience are also retrieved from Europe (Table 7). From the tourists‘ experience, the finding stated that most users appreciated and glad to have LBS when they are visiting tourist attractions. Not only have they got the traveling information, but also the positioning function is helpful for them.
Teenagers and youngsters people seem more exciting to explore the functions and features of LBS. The system applied on portable devices helps travelers get LBS services when they needed. However, the shortage and nagetive experience comprises that weak wireless signal and connection problems, inconvenience of big portable devices, and unfriendly interface.
TABLE 7. EXPERIMENTAL RESEARCHES ON LBS USER EXPERIENCE
Author Adopted application Experimental location
Cheverst et al, 2000 GUIDE system Lancaster, U.K
Schmidt-Belz et al., 2001 CRUMPET European www.zenithresearch.org.in www.zenithresearch.org.in
Kaasinen, 2003 Location-aware mobile services Finland
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Pavón et al. ,2004, Mobile Tourist Guide Services Salamanca, Spain
For the attitude of users in LBS, this review found that there are three primary fields affected users concerned. The first field is that the information usefulness such as result of paper from Chang et al. (2006). This concern is related with providing accurate information with right time, right place for travelers from LBS. Since travel information is one of most the important part for tourists, the correct information is significant issue for users. The paper of Vrček et al. (2008) indicated that the users valued on the functions of emergency & safety services, and navigation of LBS is related with providing accurate information and services. The second intend is the ease of use. The interface design is very important for LBS system designers, but it may not be the concern of users. The users want an easy device for getting LBS services Chang et al. (2006). Thus, the system of LBS needs an easy interface for tourists. The final concern is a privacy issue. Since the positioning function can be easy known when users are, the privacy issue is followed by the LBS services (Junglas & Watson, 2008). Thus, reducing the wariness of users, LBS providers should pay consideration on users‘ privacy issue.
In conclusion, by reviewing the articles above, tourism is an important industry in the world. When toursts visit other countries, cities, or any tourist attractions, they will need to handle with the accommodation, restaurants, attractions, and even information of travel destinations. The features and capacities of mobile LBS could be one of the best problems solving for travelers. Thus, this paper reviews the features of LBS, capacities of LBS for tourism, the users‘ experience of mobile LBS, and the attitude of users on LBS. This paper could be valuable references for who is interested in LBS for tourism.
REFERENCES
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Brown, B. & Chalmers, M. (2003). Tourism and mobile technology. Kuutti, E., Fitzpatrick, P., Dourish, P., & Schmidt, K. (2003). Proceedings of the Eighth European Conference on Computer-Supported Cooperative Work, 14-18 September 2003. Helsinki, Finland. Belz, B. S., Nick, A., Poslad, S., & Zipf, A. (2002). Personalized and location-based mobile tourism services. Retrieved from http://www.i3mainz.fh-mainz.de/publicat/zipf02/mobileHCI- crumpet.pdf. Chang, S.E., Hsieh, Y., Chen, C. Liao, C., & Wang, S. (2006). Location-based services for tourism industry: An empirical study.Ubiquitous intelligence and computing: Lecture Notes in Computer Science, 2006, Volume 4159/2006, 1144-1153. Retrieved from
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Charis Marentakis, C. & Dimitrios, Emiris, D. (2010). Location aware auctions for tourism services. Journal of Hospitality and Tourism Technology, 1(2), 121. Retrieved from ProQuest: ABI/INFORM Global database. Cheverst, K., Davies, N., Mitchell, K., Friday, A., & Efstratiou, C. (2000). Developing a context- aware electronic tourist guide: Some issues and experiences. SIGCHI conference on Human factors in computing systems (CHI 2000), 1-6 April 2000, The Hague, The Netherlands. Diercks, B. (2003). Location-based services: finding their Place in the market. Wireless Week, 9(7), 56. Retrieved from Vocational Studies Complete database. Doyle, E. (2002). London Tourist Board to use location-based mobile street map service. Computer Weekly, 34.(2002). Retrieved from Computer Source database. Dziatkiewicz, M. (2000). Revenue uncertainty remains for location-based services. Wireless Week, 6(44), 29. Retrieved from Vocational Studies Complete database. E 911 Retrieved from http://en.wikipedia.org/wiki/Enhanced_911 Farber, A. (2008). Google opens up location-based services with plug-in for mobile. New Media Age, 04. Retrieved from Vocational Studies Complete database. February 4, 2010. 2009 global smart phone market report: Apple sales 14.4% in 2009. http://s.fred.tw/2009smartphoneapple144 Freire, J. & Crowther, D. (2007). Tourism industry working practices and its impact on a geo- brand Image. Social Responsibility Journal, 3(2), Retrieved from EMERALD MCB Press database. Gibbs, C. (2008). Location-based services finally on the map. RCR Wireless News, 27(38), 3. Retrieved from Vocational Studies Complete database. Hinze, A. & Voisard, A. (2003). Combining event notification services and Location-based serices in Tourism. Retrieved from
http://citeseerx.comp.nus.edu.sg/viewdoc/summary?doi=10.1.1.13.2051 Jeong, C., Chung, Y., Joo, S., & Lee, J. (2006). Tourism guided information system for location- based services. Lecture notes in Computer Science, (3842), 749-755. Retrieved from British Library Document Supply Centre Inside Serials & Conference Proceedings database. Junglas, I. A., & Watson, R. T. (2008). Location-Based services. Association for Computing Machinery,51(3), 65. Retrieved from ProQuest: Research Library database. Kaasinen, E. (2003). User needs for location-aware mobile services. PERSONAL AND UBIQUITOUS COMPUTING, 770-79. Retrieved from British Library Document Supply Centre Inside Serials & Conference Proceedings database.
Kramer, R., Modsching, M. & Hagen, K. (2006). A city guide agent creating and adapting www.zenithresearch.org.in individual sightseeing tours based on field trial results. International Journal of Computational
Intelligence Research, Vol.2, No.2 (2006), pp. 191-206.
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Luna, L. (2007). Location-based services spark treasure hunt. Mobile Radio Technology, 256. Retrieved from Vocational Studies Complete database. Luna, L. (2007). Location-based services spark treasure hunt. Mobile Radio Technology, 256. Retrieved from Vocational Studies Complete database. Malaka, R. and Zipf, A. (2000): DEEP MAP - Challenging IT research in the framework of a tourist information system. In: Fesenmaier. D. Klein, S. and Buhalis, D. (Eds.): Information and Communication Technologies in Tourism 2000. Proceedings of ENTER 2000, Barcelona. Springer Computer Science, Wien, New York. p. 15-27 Malaka, R., Porzel, R., Zipf, A. and Chandrasekhara, V. (2000): Integration of smart components for building your personal mobile guide. In: Proceedings of AIMS 2000. Workshop on Artificial Intelligence in mobile Systems. Workshop at ECAI 2000 (European Conference on Artificial Intelligence). Berlin. Mobile Taiwan applications promotion program. Retrieved from http://www.mtaiwan.org.tw/eng/plan.php Nowaczek, A., & Smale, B. (2010). Exploring the predisposition of travelers to qualify as ecotourists: the Ecotourist predisposition scale. Journal of Ecotourism, 9(1), 45-61. doi:10.1080/14724040902883521. O‘Hara K., Kindberg, T., Glancy,M., Baptista, L.,& Byju, S. (2007). Collecting and sharing location-based content on mobile phones in a zoo visitor experience. Computer Supported Cooperative Work (CSCW), 16(1-2), 11-44. Retrieved from SpringerLink database. OpenLS. Open Location Services Initiative (2000): http://www.openls.org Paay, J., & Kjeldskov, J. (2008). Understanding the user experience of location-based services: five principles of perceptual organisation applied. Journal of Location Based Services, 2(4), 267- 286. doi:10.1080/17489720802609328. Pavón, J., Corchado, J. M., Gómez-Sanz, J. J., & Castillo Ossa, L. F. (2004). Mobile tourist guide services with software agents. Mobility Aware Technologies and Applications, 3284322- 330. Retrieved from SpringerLink database. Rao, B., & Minakakis, L. (2003). Evolution of mobil location-based services. Communications of the ACM, 46(12), 61. Retrieved from Vocational Studies Complete database. Report of the Third Meeting of the UNWTO Tourism Resilience Committee Astana, Kazakhstan, 8 October 2009. Retrieved from http://www.discoverymice.com/WEC2010/Report_3rd_TRC_en.pdf Schmidt-Belz, B., Laamanen, H., Poslad, S., & Zipf, A. (2003). Location-based mobile tourist services -- First user experiences. Information & Communication Technologies in Tourism 2003:
Proceedings of the International Conference in Helsinki, Finland, 2003, 115-123. Retrieved from www.zenithresearch.org.in
Hospitality & Tourism Complete database.
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Schmidt-Belz, B., Zipf, A., Poslad, S. & Laamanen, H. (2003). Location-based mobile tourist services – first user experiences. In Frew, AJ, Hitz, M. & O'Connor, P. (2003 Eds.): Information and Communication Technologies in Tourism 2003, 115–123. Springer. Retrieved from http://www.oulu.fi/geography/study/mobile/tourism.pdf Steinger, S., Neun, M., & Edwardes, A. (2008) Foundations of location based services. Retrieved from http://www.geo.unizh.ch/publications/cartouche/lbs_lecturenotes_steinigeretal2006.pdf Titkov, L., Poslad, S., & Tan, J. (2006). An integrated approach to user-centered privacy for mobile information services. Applied Artificial Intelligence, 20:1–20.Taylor & Francis Group, LLC. Retrieved from http://www.elec.qmul.ac.uk/people/stefan/publications/2006-AAIJ- privacy-semantics.pdf Tjostheim, I., Nordlund, B., & Vestgaarden, J. (2004). Location-based mobile services and privacy : Controlling access to location information. Information & Communication Technologies in Tourism 2004: Proceedings of the International Conference in Cairo, Egypt, 2004, 85-95. Retrieved from Hospitality & Tourism Complete database. Van de Kar, E., & Bouwman, H. (2001). The development of location based mobile services. Proceedings of the 4th Edispuut Conference, Amsterdam. Vrček, N., Bubaš, G., & Bosilj, N. (2008). User acceptance of location-based services. Proceedings of World Academy of Science: Engineering & Technology, 43289-294. Retrieved from Academic Search Complete database. Wilson, H.W. (2010). Location-based services on mobile phones: Follow me. Economist, 39485. Retrieved from Social Sciences Abstracts (H.W. Wilson) database. You, J., & Kim, T. (2005). Towards developing a travel time forecasting model for location- based services: A review. Methods and Models in Transport and Telecommunications: Cross Atlantic Perspectives (pp. 45-61). Advances in Spatial Science series. Retrieved from EconLit database. Yu, C.C., & Chang, H. (2009). Personalized location-based recommendation services for tour planning in mobile tourism applications. Lecture Notes in Computer Science, 569238-49. Retrieved from SpringerLink database. Zipf, A. (2002). User-adaptive maps for location-based services (LBS) for tourism. Information & Communication Technologies in Tourism 2002: Proceedings of the International Conference in Innsbruck, Austria, 2002, 329-338. Retrieved from Hospitality & Tourism Index database. Zipf, A., & Malaka, R. (2001). Developing location based services for tourism. The service providers' view. Information & Communication Technologies in Tourism 2001: Proceedings of the International Conference in Montreal, Canada, 2001, 83-92. Retrieved from Hospitality & Tourism Complete database.
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AN INVESTIGATION OF FACTORS RELEVANT TO PAYOUT RATIO IN LISTED FIRMS ON THE TEHRAN STOCK EXCHANGE
HASSAN ALISINAEI*; LEILA HABIBI**
*Economics and Social Sciences Faculty, Management Department, Shahid Chamran University, Ahwaz, Iran. **Economics and Social Sciences Faculty, Management Department, Shahid Chamran University, Ahwaz, Khozestan, Iran.
ABSTRACT
PURPOSE– This study examines the determinants of dividend payout ratiofor listed companies in The Tehran’s Stock Exchange (TSE). Furthermore, the aim of this paperis to build on previous research by using a new approach.
DESIGN/METHODOLOGY/APPROACH– The analyses are performed Using data obtained from the financial statements of selected firms listed on the Tehran Stock Exchange during the ten-year period from 1999 to 2008, a multiple regression analysis was performed. The study,based on the proposed regression model,within the context of the panel data approach, tested six hypotheses, using Eveiws software for estimating the coefficients of the proposed regression equation.
FINDINGS– The results indicate that payout ratio has significant and negative relationship with M/B and capital expenditure, these results are consist with other empirical or findings. On the other hand, relationship between payout ratio, compensation and debt to equity ratio (financial leverage) is significant and positive. These findings arein conflict with other empirical or findings. In addition, according to research results relation between systematic risk andincome is not significant.
ORIGINALITY/VALUE– The main contribution of this study is the identification of the
factors that influence the dividend payout policy decisions of listed firms in the TSE.
KEYWORDS: Accounting, Dividend Policy, Finance, Payout Ratio, Tehran Stock Exchange. ______
1. INTRODUCTION
Dividend policy has an important role in financial decision making. Parallel with other decisions, Managementshould consider dividend policydecisions because if a firm decides to pay more dividends, it retains fewer funds for investment purposes,and the company maybe forced to revert to capital markets to gain funds (Baker and Powell, 1992). Many studies such as Linter 1956; Miller & Modigliani 1961; Feldstein & Green 1983; Baker and Powell 1992, 2000, regarding the dividend policy has been done and provided empirical evidenceregarding the www.zenithresearch.org.in determinants of dividend policy. Yet,there isno indisputable explanation on what factors
influence the dividend policy. The question of why firms pay dividends from their earnings still
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In the real world to determine the appropriate payout policy it is often a difficult task of balancing many conflicting forces. Pruitt and Gitman 1991 mention that the dividend payout has influence on shareholder wealth and firm’s ability to participate in potential growth opportunities as investment, financing and dividend policy decisions are interrelated(Pruitt and Gitman, 1991).
Some researcher like depi 2009 represented it seems thatDividend policy decisions are very important, for this reason the ways that managers make decisions about dividend policy have considerableimpact on the value of the firm. Such a policy might be a strategic policy that accurately follow or not, and may also have an impact on the future performance of the firm (Depi, 2009). And because of that Allen and Michaely (1995) drew the following conclusion: ―Much moreempirical and theoretical research on the subject of dividends is required before aconsensus can be reached (Allen and Michaely, 1995)
The primary purpose of this study is to investigate factorsrelevant to payoutratio. To accomplish this, we extend the findings of previous research such as Bhattacharyya (2008) study on dividend policy.
The remainder of this paper is organized as follows. In the second section, we describethe Structure of the Iranian Capital Market
Inthe third section, we present theoretical overview and the results of various research surveys on the determinants ofdividend policy. In section four, we introduce the research method of the study.Section five reports the results of this study, and section six presents the conclusion.
2. STRUCTURE OF THE IRANIAN CAPITAL MARKET
The Tehran Stock Exchange (TSE) officially commenced operations in April 1967.Initially, only six companies were listed on the TSE though government bonds and other government- backed certificates were actively traded. During the 1970s, rapid economic expansion led to
more listings on the TSE. The number of listed companies on the TSE rose to 105 in 1979, including 24 listings of commercial and specialized banks (banks serving specific sectors of the economy). Economic reforms in the wake of the Islamic revolution reverted control of the economy to the public sector, with a reduced need for private capital.
Simultaneously, the introduction of Islamic banking laws called for abolition of interest and the end of trading of bonds on the TSE. This was accompanied by a total reorganization of the financial services sector, with dissolution of 36 commercial and specialized banks and division of their assets among six commercial and four specialized banks, newly created by the government. As trading in shares of private banks comprised most of the trading on the TSE, this move led to a deep recession and uncertainty among investors. In 1989, along with the revitalization of the private sector and privatization of the state-owned enterprises, a new economic program began to develop the promotion of private sector activities. This coincided www.zenithresearch.org.in with the time that the first five-year national development plan in the country was in the initial
stage of being designed. In fact, the TSE has grown as one of the most important executive
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In November 2005, the Iranian Parliament ratified a new Capital Market Law. The implementation of the new law is ongoing and based on its articles; the following major changes were envisaged for the Iranian Capital Marketii:
- Establishment of the Bourse Council as the highest authority of the Iranian Capital Market that is responsible for composing and overseeing the implementation of macro policies. - Establishment of a new organization called the Securities & Exchange Organization (SEO) of Iran to supervise and regulate the Iranian Capital Market in conjunction and oversight of the Bourse Council.
- Demutualization of the Tehran Stock Exchange (TSE) and its restructuring to a ―public joint stock company‖. In general based on the new regulation, all exchanges in Iran should be structured as a public joint stock company. The Tehran Metal Exchange (TME) and Iranian Agricultural Exchange merged as a result of the regulation and a new Exchange named the Iranian Mercantile Exchange (IME) was formed.
Note: The supervision and operation duties in the Iranian Capital Market are now being separated based on the mentioned changes.
- Limitation of ownership of the Exchanges. No single shareholder could own more than 2.5 percent of the shares of any single Exchange.
- Establishment of the Central Securities Depository of Iran (CSDI) responsible for all post- trade activities.2
3. THEORETICAL OVERVIEW & RELATED LITERATURE
Despite numerous studies on dividend policy in developed and developing countries, the discussion on this issue is still continuing. As Yetresearchers do not have an acceptable explanation about the factors influencing the behavior of firm with regard to its dividend policy,(Ahmad, 2009).
Glen et al. (1995) investigated emerging markets and argued that‖… Dividend philosophy in emerging markets seems to be influenced by a number of factors and there is significant variation across countries, firms and time. The approach to dividend policy taken by many emerging market firms differs substantially from what is common in developed countries;
dividend payout rates in developing countries are roughly two thirds that of OECD3 countries…‖
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Dividend is an important factor that directly influencesthe stock returns. Information about dividend not only showsa picture of the firm’s financial situation, but also estimates and evaluates the future that with no doubt influence the investors decision process.
An important criterion in relation with dividend policy that investors consider is payout ratio. Bhattacharyya (2008) argues that:‖… ratio of dividends paid to earnings to reflect the choice variables faced by managers – i.e., what proportion of earnings should be paid out as dividends? Also, dividend yield (as measured by the ratio of cash dividends paid to the market value of the common stock) is more influenced by the vagaries of the stock market, and is less within the control of managers…‖
One of the first studies on dividend policy was done by John Lintner in 1956;His primary goal was seeking a model for explaining the dividend.After careful review of academic literature, he developed a model based on a survey of U.S. managers. Ultimately, he listed about 15 factors that he found has significant effect on dividend payout by the firms.His research method based on interviews with company executives and technique is OLS. Lintner research results can be summarized as:
Company set their dividend levels to avoid having to reverse dividend increases, and gradually increase dividends toward a target payout ratio when earnings increase. Mature companies that have stable profitability, usually paida significant part of their profits; and payout of the companies that are in growth stage are less (Lintner, 1956)
Baker and Powell (2000) surveyed the factors influencing the dividendpolicy of NYSE-listed firms. They found few changes over time in managers’ views ofthe determinants of dividend policy. Their result show that the level of current and expected future earnings, the pattern or continuity ofpast dividends, and the concern about maintaining or increasing stock price are the factor that effect on payout decision by managers. (Baker et al, 2000)
Baker et al. (2001) investigate the views of chief financial officers (CFOs) of NASDAQ firms about the factors influencing dividend policy. The questionnaires were mailed to each of chief financial officers (CFOs) of the firms whose stock traded on NASDAQ that paid cash dividends
each quarterduring calendar years 1996 and 1997. In total, 105 responses were usable.A key finding is that the pattern of past dividends, stability of earnings, level of current earnings, and level of expected future earnings are the most important factors. (Baker et al, 2001)
Pandy(2001) with regard to the 248 companies listed in the Kuala Lumpur Stock Exchange between 1993and 2000 examined the following three questions:
(1) Do payout ratios differ across industries?
(2) What dividend actions are probable when earnings change?
(3) Do Malaysian firms follow stable dividend policies?
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By examining corporate dividend behavior of the Kuala LumpurStock Exchange (KLSE) companies he found the influence ofindustry on payout ratios. Payout ratios also vary significantlyacross time.
Industries related to agriculture and consumer products have the highest dividends payout that low growth opportunities and excess liquidity in these industries existed. Building industry had the lowest payout ratio that the need for liquidity, growth opportunities in these industries is higher. Malaysian companies are also very sensitive to earnings changes. His research results indicate a large number of companies in Malaysia will increase dividend payout when their earningsincrease. (Pandy, 2001)
Kanwer(2003)attempts to identify the factors that explain the dividend behavior of the firms registered with Karachi Stock Exchange using firm data between 1992-98. Samples examined in this study, were listed companies in stock exchange of Pakistan. Research data were collected from 137 companies and 13 industries. Variables include firm size, retained earnings, investment opportunities and signaling aspects of dividends. Expected firm size has a positive effect on dividend payout but this relationship was not statistically significant. The result shows that the higher net profit after tax of firms does not necessarily ensure higher dividend payment.(Kanwer, 2003)
Gwilym(2006)in an attempt to review the recent evidence from the U.S. market has shown that, the greater the proportion of earnings paid out as dividends, the greater the subsequent real earnings growthby examining whether a similar relationship exists in 11 international markets and by considering the role the payout ratio plays in explaining future real dividend growth and returns. Higher payout ratios do indeed lead to higher real earnings growth—but not to higher real dividend growth. (Gwilym, 2006)
Amidu et al. (2006) investigated determinants of dividend policy on a six-year period between 1998 and 2003 in Ghana stock Exchange. Results showed a positive relationship between payout ratios and profitability, cash flow and taxes. This shows that the profitable companies tend to pay more dividends. It was also found that the risk, institutional holding, growth and market-to-book value has negative relationship to payout ratio. If the company has more cash flow, it will pay more dividends. Also, companies that have a higher market-to-book value, have more investment opportunities for investment and therefore less likely to have paid dividends(Amidu at al., 2006).
Baker et al. (2006) reexaminedmanagers viewson dividend policy by using sample of 121 Norwegianfirms listed on the Oslo Stock Exchange that paid dividends in 2003. Their results indicate that the level of current and expected future earnings, the stability of earnings, the current degree of financial leverage, and liquidity constraints arethe most important factors influencing thedividend policy of Norwegian firms. The result confirms pervious study by U.S. managers about earnings in determining dividend policy. By contrast, Baker et al. findsthat Norwegian managers view legal rules and constraints as more importantthan do their U.S. counterparts and attribute this finding to the greater degree ofgovernment regulation that firms
face in Norway. (Baker et al., 2006) www.zenithresearch.org.in www.zenithresearch.org.in
Al-Twaijry(2007)tries to identify variables that influence dividend policy by using sample of
300 companies in Kuala Lumpur Stock Exchange for five years between 2001 and 2005. Results
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EXCEL International Journal of Multidisciplinary Management Studies Vol.2 Issue 2, February 2012, ISSN 2249 8834 Online available at http://zenithresearch.org.in/ showed that current divided are affected by their pasts and their future prospects, and to a lesser extent is correlated with net earnings. Furthermore, result show there is not strong correlation between the payout ratio (POR) future earnings growth but had some significant negative correlation with the company's leverage. This study also showed that when dividend payout policy properlydeveloped, has significant impact on corporate value (Al-Twaijry, 2007).
Baker et al, (2007) survey manager’s view about dividend payout policy firms listed on the Toronto Stock Exchange (TSX). Their result shows that Canadian firms paying more are significantly larger, profitable, with greatercash reserves and ownership concentration, and fewer growth opportunities. Furthermore, the levels of current and expected future earnings are the most importantfactors influencing dividend policy.Alsosupport found for the signaling and life cycle explanationsfor paying dividends but bird-in-the-hand, tax-preference, clientele, agency- cost,and catering explanations generally not support (Baker et al., 2007).
Anil et al. (2008)by using data of companies in the IT industry in India between 2000 and 2006 examine determinants of dividend policy in this sector. By reviewing the literature, they examine variable that has effected on dividend policy. Variables studied are: profitability, cash flow, corporate tax, sales growth and the book to market ratio. Consistent with the literature, the first two variables have positive relationship with dividend payout and next three variables are negatively related. Using regression and correlation method, they concluded that all relations expressed in the literature is consistent with the IT sector and most important variables in determining dividend payout is high liquidity and profitability in this sector of India(Anil et al, 2008).
Jumahet al. (2008)investigated dividend policy of American firms between 1994 and2003. His main purpose was to compare Features of the companies that pay cash dividends against companies that do not adopt this policy. For this purpose they use financial variables. Output of the analysis demonstrates that liquidity ratios, profitability ratios and firm size are main variables determining dividend policy of the company. Examines the Beta in this study showed that investors think the company that pay cash dividends less risk than companies that do not have to pay. He also cites that it seems that managerial and behavioral issues are important factors to
determine a company’s cash dividend policy. (Jumah et al., 2008)
He and Li(2009), using data from listed companies in China's stock market (the largest developing economy) between 2003 and 2007 examined factors affecting a dividend payout policy of the companies. They concluded that the characteristics of organizational structure most important factor that influence dividend policy in Chine’s firms. Overall, they found, that profitable, low leverage, high cash holding, stronger shareholder protection firms, and those firms with state ownership prior to listing and undertaking subsequent equity offerings are more likely to pay dividends and cash dividends (He et al., 2009).
Jahankhany et al, (2007) seeks dividend policy determinants of listed firms in Tehran Stock Exchange on 6-year period from 1999 to 2004.they examined Various theories as grows theory, agency cost, effect of size and etc that proposed by the researchers. They collect informationof
63 companies during a period of six years (1377 to 1382). For the data analysis, theyuse www.zenithresearch.org.in statistical regression methods. The results suggest that corporate dividend policy follow of the
random walk model. The theory signaling was confirmed in this study, so that the company
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EXCEL International Journal of Multidisciplinary Management Studies Vol.2 Issue 2, February 2012, ISSN 2249 8834 Online available at http://zenithresearch.org.in/ expected earnings growth of high (low) are also hashigh (low) cash returns. Other result of this study is that size, investment opportunities, financial structure, risk and financial leverage have role in dividend payout policy of the firms(Jahankhanyet al., 2007).
Pour Heidari et al., (2009) survey dividend policy factors in Tehran Stock Exchange firms during 1380 to 1384. In this study, 124 companies chosen to test four factors that seem to have effect on dividend policy over a period of four years. These four factors include: the status of liquidity, stability, profitability, financial leverage and the existence of profitable investment opportunities. Assumptions results showed that the most important factor determining the dividend policy of corporate was liquidity status of the company. In addition, the study showed that the stability in profitability and financial leverage are most important determining on dividend policy. The study also showed that significant positive relationship between profitable investment opportunities and the payout ratio that this result inconsistent with theatrical result (Pour Heidari et al, 2009)
4. DATA AND EMPIRICAL METHODS
This study examines the determinants of dividend payout ratios of listed firms in Tehran’s Stock Exchange (TSE). A sample of firms that have been listed on the TSE during the recent 10- year period (1999-2008) was considered. In all, 126 firms qualified for this study. We limited the sample to 126 firms due to available financial information for that period, for those firms. Data was obtained from the annual reports ofthe selected listed firms’ ten-year period, 1999-2008;that is, a panel of data with 1251 observations, since some data were missing.The dividend payout ratio, which is the dependent variable, is defined as the dividendper share divided by earnings per share. The explanatory variables includesystematic risk (RISK), compensation (LNTOTCOMP), capital expenditures (CAPEXP), and long-term debt to equity ratio (DEBTEQUT), firm income (LNINCOME), and market-to-book value (MTBV).The panel character of the data allows for the use of panel data methodology. Paneldata involves the pooling of observations on a cross-section of units over several timeperiods and provides results that are simply not detectable in pure cross-sections orpure time-series studies. The panel regression equation differs from a regulartime-series or cross section regression by the double subscript attached to eachvariable. The general form of the panel data model can be specified more compactly as:
LNPAYOUTi,t = β0 + β1LNTOTCOMP i,t + β2 MKTBOOKi,t + β3 CAPEXPi,t + β4RISK i,t + β5 LNINCOME i,t + β DEBETEQ i,t + ε i,t
With the subscript I denote the cross-sectional dimension and t representing thetime-series dimension.
The model for this study explains thefactor that influences dividend payout ratios.
Where:
PAYOUTi;t dividend per share/earnings per share for firm i in period t, www.zenithresearch.org.in
LNTOTCOMP i;tlog of total CEO compensation for firm i in period t,
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LNINCOME i;tlog of income available to common shareholders for the year for firm i in period t,
DEBETEQ i;tlong term debt divided by common shareholders’ equity as at year-end for firm i in period t,
CAPEXP i;tcapital expenditures for the year for firm i inperiod t,
BETA i;tthe monthly fundamental beta s for firm i in period t,
MTBVi;tthe market value of firms’ common shares divided by common shareholders’ equity as at year-end for firm i in period t.
In the light of the above theoretical and empirical discussions, the following hypothesized relationships are predicted for each variable with respect to the dividend payout ratio:
H1: CEO compensation is expected to be negatively related to PAYOUT;
H2: Market to book value ratio is expected to be negatively related to PAYOUT;
H3: Capital expenditureis expected to be negatively related to PAYOUT;
H4: Systematicrisk is expected to be negatively related to PAYOUT;
H5: Income is expected to be positively related to PAYOUT;
H6: Debt to equity is expected to be negatively related to PAYOUT.
5. EMPIRICAL RESULTS
SUMMARY STATISTICS
Table I presents the descriptive statistics for all the regression variables. This shows the
average indicators of variables computed from the financial statements. The average (median) dividend payout ratio (measured as dividend per share/ earnings per share) is 53.57 percent (41.4 percent) and the average (median) market-to-book value for the firms is 30.798253 (21.245019).Income, determined as the natural logarithm of income has a mean (median) of 11.46 (12.06). Capitalexpenditure on average is 28.64percent (24.89 percent). Average (median) CEO compensation is 5.972 (5.99)andAverage (median) Beta is 2.215 (1.127).
MULTICOLLINEARITYTEST RESULTS
Multicollinearity is a statistical phenomenon in which two or more predictor variables in a multiple regression model are highly correlated. In this situation the coefficient estimates may change erratically in response to small changes in the model or the data. To test if there is multicollinearity, we use Variance Inflation Factor (VIF). Because the VIF index is less than 5 www.zenithresearch.org.in
we can concluded there is nomulticollinearity between our variable. (Table II)
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UNIT ROOT TEST RESULTS
The unit root test was performed using augmentedLevin, Lin & Chu t and Breitung t-stat tests. The test results are reported in Table III. By the results reported in Table III, it is clear that all series consist of single unit root.
PANEL DATA REGRESSION ANALYSIS
Due to the combination of cross-sectional data and time-series data, OLS regression technique is unsuitable for the analysis (Leamer, 1978). The appropriate method of analysis involves panel data regression techniques. There are two frequently used estimation techniques for panel data regression. These are the fixed effects model (FEM) and the random effects model (REM) (Gujarati, 2003, Chapter 16). The FEM assumes that the slope coefficients of the explanatory variables are all identical for all firms. The intercept in the regression model is allowed to differ among individual firms in recognition of the fact each individual, or cross-sectional unit may have some special characteristics of its own. To take into account the differing intercepts, dummy variables may be used. The FEM using dummy variables is known as the least-squares dummy variable (LSDV) model (Gujarati, 2003 p. 652). The REM is sometimes known as the error component model (ECM). In ECM, it is assumed that the intercept of an individual unit is a random drawing from a much larger population with a constant mean value. The individual intercept is then expressed as a deviation from this constant mean value. The Hausman test, a model specification test, can be used to decide between FEM and REM (Hausman, 1978). (Table IV)
The data were analyzed by the econometric software, Eviews version 6.
The Hausman specification tests show that the fixed effects model is the appropriate model. The panel regression results are reported in TableV.
6. RESULTS
The first hypothesis examines the relationship between executive compensation and dividend
payout ratio. The results of fixed effect model test showed that there is a significant relationship between them. The coefficient of executive compensation’s variable is equal to 6.153706. This shows that the relationship between these variables is positiveand thus the first hypothesis rejected. There are two different theories regarding this hypothesis. Some, such as Bhattacharya (2008),reason that there is a negative relationship between these variables. In his view the ability of executives (managers) to identify projects with positive net present value (NPV) is different. Majorstockholders prefer to re-invest the earningsin projects with positive NPV,while other stockholders prefer dividends payments. Managers with ability to accessa high quantity of NPV projects, compared with those who don’t have such ability,receive a higher compensation.Another group such as Lewellen (1987) believes that there is a positive relationship between dividend payout ratio and managers compensation. In their view such relation, further support the notion that firms seek to prevent tendencies toward over-retention of
earnings by linking salary and current bonus payments to dividend payouts. www.zenithresearch.org.in
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It seems in Iran,manager’s compensation is based on some measures of performance, so managers manipulated the profit and give more dividends payout ratio to show better performance. We can say stockholders see dividends payout ratio as a sign of profitability and future vision of the firm, which means stockholders agreewith more compensation to managers with attention to the signal they have received.
The second hypothesis studies the relationship between market to book value ratio and dividends payout ratio. The results of fixed effect model test showed that there is a significant relationship between them. The coefficient of market to book value variable is equal to - 0.019095;thereforethe relationship between these variables is negative. In many studies, market to book value has been taken as alternative variable for growth and investment opportunities, so this show that firms with high market to book value, because of much growth and investment opportunities, follow the deflationary dividends policy. In fact these firms wouldn't like to pay dividend. Stockholders income in Iran is mainly from stock right and/or stock dividend. Experimental observations showed that when market value to par value increases, the M/B increases, that are a proxy of capital return.
The third hypothesis studies the relationship between cost of capital and dividends payout ratio. The results of fixed effect model test showed that there is a significant relationship between them. The coefficient of cost of capital variable is equal to - 0.031593. Therefore the relationship between cost of capital and dividends payout ratio is negative. We can say about the result of this hypothesis that, cost of capital is from two components, equity and loan. If the payout ratio of a firm increases, that means reduction of retained income, the firm's financial structure change to profit of loan. This is especially correct in Iran, that use of loan and financial leverage is different from others countries, that have been resulted from inefficient bankruptcy regulations and credit's ranking of firms. Also from view of stockholders and investors in Tehran Stock Exchange (TSE), there is a strong relationship between cost of capital and investor's expectations. Demand for that stock will reduce when investors have unsuitable expectation about present and future situation of firm, because we have assumed that investors are risk averse.
The forth hypothesis study the relationship between systematic risk and dividends payout ratio. The results of model test showed that there is no significant relationship between them. The results of related studies in Iran show that there is no relationship or little relationship between financial ratios and market risk. This problem attributed to lake of completely reflection of accounting information in stock prices, in other hands inefficiency of Tehran Stock Exchange. The irrelevance of systematic risk and dividends payout ratio can be attributed to financial changes and fluctuations in period of study. One other reason for this inconsistency may be caused by errors in calculation of systematic risk, because past information were used for calculation of systematic risk.
There are some reasons which increases doubt about calculation's error. Some factors such as change in capital structure, attain capital assets and acquisition other firms cause change in
systematic risk. So that, potential and real investors observe the changes and consider them in www.zenithresearch.org.in www.zenithresearch.org.in
decision to attain capital assets, but these don't account in calculation of risk.
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The fifth hypothesis studies the relationship between income and dividends payout ratio. The results of fixed effect model test showed that there is no significant relationship between them. The fact is that the result is inconsistent with past studies. It seems, even when the income of firms decrease they dividend more percentage of their profit between stockholders, because they want to increase the attractiveness of stock and attain the trust of stockholders for more participation in capital. This is especially in deflation situation on transactions. In this situation, the Index does not show increase in stock price. Stockholders pressure on managers to pay more dividend. In past years and when there has been a bubble then depreciation, this problem has been very stronger (e.g. 2005, which is second period of study that TSE experience a deflation and reduction in Index). So that afirms meetings will be with tension and pressures of stockholders and investors who have lost their capital (because of strongly reduction in their stock prices), that dividends and provide good signal about future for managers. This note is considerable that, because of future looking and especial condition of Iran that continuously there is inflation and deflation, even in periods with high income, their dividends payout ratiodo not increase in accordance with their income.
The sixth hypothesis studies the relationship between debt to equity ratio and dividends payout ratio. The results of fixed effect model test showed that there is a significant relationship between them. The coefficient of debt to stockholder's equity ratio variable is equal to 0.360269. With regard to this coefficient, we can conclude that the relationship between these variables is positive. With regards to Index volatilities and many changes in economics when people can't earn capital gain, they take much attention to dividend and make much pressure on managers to pay dividend, so managers have to show the firm is profitable and that can pay dividend. Hence for solving these problems they have the loan of banks and expend it for pay dividend. Also in Iran, debt to banks is mortgaged-based. So, banks rarely pressure the firms to make repayment on time. In addition, often debts contracts don’t limited earn profit. So, firms instead of reduction the percentage of dividends prefer to increase capital to correct financial structure and reduce financial risk (financial leverage). For this cause, this ration don’t play similar role in Iran.
7. CONCLUSIONS
This study examines the determinants of dividend payout ratios of listed companies in the
TSE. The analyses are performed using data derived from the financial statements of firms listed on the TSE during a ten-year period. In this study first, according to the model proposed six hypotheses then panel data approach used to estimate the regression equation. Resultsindicate that payout ratio has significant and negative relationship with M/B and capital expenditure, these result consist with theatrical finding. On the other hands, relationship between payout ratio and compensation, debt to equity ratio (financial leverage) is significant and positive. These findings are in conflict with other empirical or findings. In addition, according to research result relation between payout ratio, systematic risk andincome is not significant.
With regards to positive relationship between compensation and dividends payout ratio, stockholders should consider that pay to managers based on profit has some problems, because at
least in one period there is a probability of increase or decrease in profit, in addition all www.zenithresearch.org.in www.zenithresearch.org.in
components of profit aren’t in control of management. So, managers take pension with no performance or may punish on uncontrollable event. Also, in this situation the goal of managers
will be the maximization of profit. In the last two decades, based on studies in developed
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EXCEL International Journal of Multidisciplinary Management Studies Vol.2 Issue 2, February 2012, ISSN 2249 8834 Online available at http://zenithresearch.org.in/ countries, profit based compensation has been replaced with Incentive plans. In this plan, stock instead of compensation was given to managers, so they as stockholders try to maximize the market value of firm.
It proposed, based on the results of second hypothesis, stockholders who want to earn cash return and buy stock to this purpose use market to book value as a proxy for measurement firm situation. There is a positive relationship between cost of capital and dividends payout ratio, so it is necessary for managers to maximize the value for stockholders, measure exactly any source of cost of capital, minimize cost of capital and optimize capital structure.
Finally, this note is considerable that in this study we use of financial statements items and there is some limitation with these statements, so the result of this study will be affected by these limitations.
NOTES 1 http://en.wikipedia.org/wiki/Tehran_Stock_Exchange 2 www.fipiran.com/Education2_en.aspx?lan=en 3 The OECD (Organization for Economic Co-operation and Development) is an international organization of countries with highly developed economies and democratic governments
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TABLES AND FIGURES
TABLEI. DESCRIPTIVESTATISTICSOFVARIABLES
Mean Median Std. Minimum Maximu Deviation m
LNPOR 0.535779 0.414022 1.9097118 0 50.9604 MTBV 30.798253 21.245019 17.6280421 -15.6705 74.1326 LN 11.46 12.06 3.385 0 18 INCOM DEBETEQ 21.422525 11.951238 6.7504511 -26.8948 66.6463 CAPEXP 0.286424 0.248940 0.4461772 0 14.0558 LNTOTCO 5.9727 5.991 1.0291 0 12.0725 M BETA 2.215042 1.127649 1.3037349 -12.1779 13.7802
TABLE II. VIF INDEXOFVARIABLES
Collinearity Statistics Model Sig. Tolerance VIF 1 (Constant) .040 MTBV .872 .619 1.615 LN INCOM .000 .833 1.200
DEBETEQ .267 .903 1.107 CAPEXP .000 .767 1.304 TOTCOMP .203 .997 1.003 BETA .026 .995 1.006
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TABLE III. RELIABILITY OF MODEL VARIABLES
Breitung t-stat Levin, Lin & Chu t Prob Statistic Prob Statistic LNPOR 0.0005 -3.28177 0.0000 -32.5790 MTBV 0.0270 -2.14083 0.0000 -75.1354 LN INCOM 0.0000 -4.63634 0.0000 -37.5020 DEBETEQ 0.0000 -4.85077 0.0000 -16.7521 CAPEXP 0.0000 -6.61340 0.0000 -32.2408 TOTCOMP 0.0000 -5.22936 0.0000 -10.6880 BETA 0.0101 -2.32326 0.0000 -40.8447
TABLE IV. HAUSMAN TEST RESULTS
Test Summary Chi-Sq. Statistic Chi-Sq. d.f. Prob.
Period random 10.848046 7 0.0454
TABLE V. THE RESULTS OF THE ESTIMATION MODEL
Variable Coefficient Std. Error t-Statistic Prob.
C -0.963620 0.210649 -4.574523 0.0000 MTB? -0.019095 0.003588 -5.322300 0.0000
LNINCOM? -0.004376 0.008154 -0.536662 0.5916
DEBTTEQUITY? 0.360269 0.052903 6.810006 0.0000 CAPEXP? - 0.031593 0.016989 -2.859608 0.0333 LNCOMPENSATION? 6.153706 3.423806 2.798293 0.0125 BETA? -3.592105 0.000265 -0.135465 0.8925 R-squared 0.685151 S.E. of regression 0.605006 Durbin-Watson stat 2.198474 F-statistic 35.99934
Prob(F-statistic) 0.000000 www.zenithresearch.org.in www.zenithresearch.org.in
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GOVERNMENT FISCAL OPERATION AND FINANCIAL DEEPNNING IN SRI LANKA
R.A RATHANASIRI*; T.C WIJESINGHE**
*Ph.D Student, School of Economics, Wuhan University of Technology, Wuhan, PR China - 433070. **B.Sc Student, School of Management, Wuhan University of Technology, Wuhan, PR China - 433070.
ABSTRACT
A large literature has examined the relationship between financial development and economic growth. However; so far limited work has been done on the macroeconomic determinants of financial development. This paper examines how government fiscal operation contributes to financial deepening particularly giving attention on commercial banks in Sri Lanka. The analysis of the study employs deductive research approach and it incorporates co-integration and Granger causality methodologies to find the link between fiscal policy and financial development. The study draws conclusion, that public borrowing from commercial bank and government expenditure has more significant positive impact on financial development in Sri Lanka. But, it is not possible to ignore the potential threat emerged from crowding out effect on financial intermediation. This result is confirmed by previous empirical studies and it provides evidence on “safe assets view” of financial development.
KEYWORD: Fiscal Policy, Financial Development, Government Expenditure, Public Borrowing. ______
1. INTRODUCTION
A large literature has examined the relationship between financial development and economic growth (Levine, 1993, Barro, 1995, King and Levine, 1997, Rajan and Zingales, 1998, Arestis et al 2001). However, limited work has been done on the macroeconomic determinants of financial development. In the previous studies inflation and trade openness have been basically focus on as the macroeconomic determinants of financial development (Boyd et al 2001, Rajan and Zingales, 2003, Chinn and Ito, 2006). However, there are limited studies on fiscal policy and financial development. The limited literature available on this issue provides inconclusive evidence whether fiscal operation detrimental to financial development (Boyd et al 2001, Kumbof and Tanner, 2005,Hauner,2006).This paper examines how fiscal policy contributes to financial deepening in Sri Lanka during the post liberalization period particularly giving attention to major fiscal policy variables namely public borrowings, public expenditure and
revenue. www.zenithresearch.org.in
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The public debt management is one of the most important parts in the overall fiscal policy. This is merely because of public borrowing has more repercussionary effect on macro economy by crowding out private investment. Not only government debt, public expenditure and revenue are also important parts of the overall fiscal policy. As such, this study mainly focuses on to find out causality between fiscal policy and financial development.
In Sri Lanka, one could see a rising share of bank credit is absorbed by government over the past period. It is evident that financing deficit from domestic sources has increased to an unprecedented level recording 92 per cent in 2008 from 43 per cent in 1981(Central Bank, 2008). Commercial Banks as leading financial intermediaries in Sri Lanka allocate significant amount of funds to the public sector ranging from 3 per cent to 36 per cent as a percentage of total credit during the study period. In other word public borrowing from Commercial Bank as a percentage GDP is 9.2 per cent in 2008 and the recorded average for the period 1977-2010 is approximately 12 per cent of GDP. This is mainly because of the high fiscal deficit over the last three decades (for instance the recorded average budget deficit was 10.3 per cent for the period of 1977-2008). As such, it is worthwhile to examine the possible implication of this government policy since it‟s an unsolved issue. This paper examines the impact of public borrowings from commercial banks and fiscal discipline in determining the financial development in the developing economy of Sri Lanka for the period 1977 to 2010. The paper provides an overview of analytical and empirical work on fiscal policy on financial development. In the literature, we could see two views on the role of public borrowing in financial development: namely “safe assets view” and “Lazy banks view” (Hauner, 2006). This current study makes attempts to find the validity of these two hypotheses in the case of Sri Lanka.
The findings of the study confirm that public borrowing from commercial bank is more significant positive impact on development of commercial bank. This result is confirmed in the previous empirical results which in turn withdraw the lazy bank view. But this confirmed the safe assets since commercial bank holding large public debt in their assets structure. This result is obvious by weaker contribution of the financial sector to GDP in Sri Lanka during last three decades. Study found that open trade, domestic savings has more significant positive impact on financial development. Further, Study finds that real interest rates and inflation rate is not statistically significant in determining assets structure of commercial banks in Sri Lanka. Therefore, study revealed that expansionary fiscal policy is strengthened the financial development in Sri Lanka. Greater public borrowing from commercial bank increase profitability of banks but hinder the efficiency of banks due to lack of competition and innovation.
2. THEORITICAL CHANNEL
The empirical literature on financial development has mainly focused on to investigate the relationship between financial development and economic growth (Schumpeter, 1934, goldsmith, 1969, McKinnon and Shaw 1973, Greenwood and Javanovic, 1990, Bencivenga and Smith, 1991, Levine, 1997, Rajan and Zingales, 1998, Benhabib and Spiegel, 2000, Levine et.al 2000, Beck et.al. 2000, Levine, 2001, Fase and Abama, 2003, Khan and Qayyum, 2007). Previous
empirical studies identified real interest rate, reserve requirement of banks, credit to private www.zenithresearch.org.in www.zenithresearch.org.in
sector by banks, financial system liquidity, total assets of the financial system as major determinants of financial development (Mckinnon and Shaw 1973, King and Levine, 1993). But,
there were limited studies on macroeconomic determinants of financial development and
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EXCEL International Journal of Multidisciplinary Management Studies Vol.2 Issue 2, February 2012, ISSN 2249 8834 Online available at http://zenithresearch.org.in/ economic growth and in which has taken inflation and trade as major macroeconomic determinants of financial development (Haslag and Koo, 1990, Boyd et al, 2001, Rajan and Zingales, 2003, Siong and Demetriades, 2006, Chinn and Ito, 2006). A review of literature provides inconclusive evidence whether public policy is detrimental to financial development. This is supported by Hauner(2006) found negative causality between fiscal policy and financial development. On the other hand Kumbof and Tanner (2005) establish argument of positive relationship between these two variables. Public sector borrowing may have a positive effect on financial development up to a certain level of borrowing and beyond that level it becomes harmful to the financial development. Further, public borrowing exerts a negative impact on financial development may depends on whether financial system liberalized or repressed.
So far, there has been a very little work on measuring and assessing financial sector development in Sri Lanka. The limited literature available in Sri Lanka has been mainly focused on financial liberalization and economic growth in Sri Lanka (Fry 1990, Athukorala and Rajapathirana, 1993, Dunham and Kelegama 1994, Ghatak, 1997, Chandana, 2000). There is no single study, which analyses the fiscal policy on financial development using standard econometrics techniques.
3. GOVERNMENT FISCAL OPERATION IN SRI LANKA-AN OVERVIEW
Fiscal policy is a powerful instrument of stabilization. Government fiscal operation can be defined as the part of government budgetary policy which deals with taxation, government expenditure, government borrowings, and the management of public debt in an economy. The major task of fiscal operation of government was to correct the growing budgetary imbalance in order to provide macroeconomic stability on the one hand and on the other hand, to generate adequate resources to accelerate economic growth to secure a better living standard for the masses (Samararatne, 1997).
Since independence, until 1977, the economic policies in Sri Lanka were generally inward oriented. Under the fiscal policy pursued during this period, priority was given to public sector participation in economic activities. The public sector acted as a major supplier of education, healthy, passenger transport, communication, banking and insurance, services. In addition, the government participated in production and distribution activities. The Government ownership was extended to basic industries, external trade and internal trade in essential commodities (Jayasundara, 1986).
Government fiscal orientation changed dramatically with the introduction of the economic reforms in 1977. Fiscal policies were used to support market orientation and private sector emphasis on economic growth and to create a climate conducive to private investment. Public enterprises were gradually transferred to private sector in line with this strategy. Tax policy was designed to promote growth in the economy with the provision of tax incentives to the selected sectors (Jayasundara, 1986, Samararatna, 1997).
3.1 TRENDS IN GOVERNMENT BUDGET DEFICIT
The budget deficit is estimated as the total revenue (tax and non tax revenue) less total www.zenithresearch.org.in expenditure (current and capital) and the net lending of the government. Deficit financing is
believed to impose various economic repercussions. Financing through the borrowing from the
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EXCEL International Journal of Multidisciplinary Management Studies Vol.2 Issue 2, February 2012, ISSN 2249 8834 Online available at http://zenithresearch.org.in/ banking sector would be fuel inflationary pressure through the expansion of money supply. Borrowing from private sector saving would prevent resources available for private sector activities, exerting an up-ward pressure on the market interest rates and crowd-out private investment. The accumulation of government debt as a result of continued deficit and borrowing would create further pressure on the budget through increasing debt service. A fiscal discipline is therefore required to maintain the budget deficit at a manageable level.
As set out in the figure 3.1, the budget deficit (BDEF) has increased since mid 1970‟s reaching a maximum of 23.1 percent of GDP in 1980. The highest average of 14.1 percent of GDP was recorded during the period of 1980-1989. Thereafter, the deficit decreased to 9.30 percent of GDP and 8.75 per cent of GDP during the period 1990-1999 and 2000-2009 respectively. The long term trend in the overall budget deficit and current account balance (CABA) is given by figure 3.1.
FIGURE 3.1 GOVERNMENT FISCAL BALANCES 1970-2010
10
5
0
-5 BDEF CABA -10
-15
-20
-25
SOURCE: CENTRAL BANK OF SRI LANKA-ANNUAL REPORT 2010
The current account balance throughout the post liberalization period is negative and it means that government revenue is not sufficient to pay off recurrent expenses of the government. But, since mid of 1990‟s the decline in the deficit has been faster and this emerge as a good sign of fiscal discipline during that period. However, budget deficit is still high as far as the macroeconomic stability of the country is concerned and in comparison to other developing countries. Nevertheless, the government during the late 1990‟s introduced a series of fiscal consolidation measures and the „Fiscal Management Responsibility Act‟ (FMRA) with a view to
reducing budget deficit and improving debt management (Central Bank 2002:31-32, www.zenithresearch.org.in
Siriwardena, 2000).
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3.2 GOVERNMENT EXPENDITUERE AND REVENUE
The positive elasticity gap in the revenue expenditure system is one of the major structural problems in Sri Lanka. The elastic expenditure system is accompanied by an inelastic revenue system and this system create positive elasticity gap, which leads to an excessive increase in government deficit in Sri Lanka (Jayasundara, 1986).
For about four decades after the 1970‟s, the government revenue remained around 19 per cent of GDP with sign of long-term deterioration. Government revenue during the 1960-1977 period remained 21 per cent of GDP. From the long-term point of view, it did not experience any significant variation. The total government expenditure on averaged amounted to 28 per cent of GDP during 1960-1977 period.
A major change in existing revenue and expenditure structure came at the period of liberalization. These changes were remarkable during the initial stage of trade liberalization. In responding to the drastic measures of the liberalization process, there has been a sharp rise in both revenue and expenditure in reporting their highest ratios of GDP throughout the entire period (see figure 3.2).
FIGURE 3.2 REAL GOVERNMENT EXPENDITURE & REVENUE AS % OF GDP
45
40
35
30
25
20 GOVE GOVR 15
10
5
0
SOURCE CENTRAL BANK OF SRI LANKA ANNUAL REPORT 2010
As figure shows, the total expenditure was around 28 percent of GDP in absolute terms and then increased up to 43 percent in 1980 and remained above 30 percent throughout the 1980‟s. This was largely a result of a nearly trebled capital expenditure in the 1980‟s from its historical level www.zenithresearch.org.in
of 6-8 percent of GDP in the previous period. The development programme such as the AMDP
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EXCEL International Journal of Multidisciplinary Management Studies Vol.2 Issue 2, February 2012, ISSN 2249 8834 Online available at http://zenithresearch.org.in/ and other infrastructure projects aimed at rapid economic growth were the main causes for increased expenditure.
Despite an initial upsurge in revenue and expenditure following trade liberalization, the period after the late 1980‟s was marked by a substantial change in fiscal operations. Both revenue and expenditure declined and the budget deficit fell to around 10 per cent of GDP. The reduction in the budget deficit was attributable largely to the steady decline in capital expenditure in the 1990‟s to a level that it had in the 1970‟s before liberalization. Although the overall budget deficit declined during the recent period, the weaknesses of fiscal operation in Sri Lanka appeared to have aggravated further in the 1990‟s as the recurrent expenditure started to grow passing the total revenue by sharing a primary deficit in the current account while showing negative savings in the government operations.
The analysis of structure of government revenue have shown that, tax revenue accounts for larger proportion of the government revenue in comparison to non- tax revenue. On the expenditure side, defense related activities and interest payments on both domestic and foreign debt have been identified as the reasons for recent increase in current expenditure (Siriwardena, 2000).
3.3 DEFICIT FINNCIAG AND PUBLIC BORROWINGS
Financing the deficit whether originating in the public or in the private sector can be met by both domestic and foreign sources. In Sri Lanka, a significant feature in the fiscal front over the last two decades has been the heavy reliance on foreign sources in financing the budget deficit.
The reliance on foreign sources in the form of loans and grants to finance the budget deficit was significantly small during the period 1970‟s. A substantial increase in foreign finance can be observed during the period after trade liberalization with a notable exception of 9.2 percent in 1980 until the early 1990‟s. In the early 1980‟s and 1990‟s, in fact the finance from foreign sources was greater than that from domestic sources. Financing from domestic sources together with the foreign sources was significantly high in the early stages of liberalization with an exceptional highest amounting to 13.9 percent of GDP, when the government incurred high
capital expenditure (see figure3.3). However, with the decline in foreign sources financing the reliance of domestic borrowings for financing the budget deficit has remarkably increased from the mid of 1990‟s. In addition to the domestic sources of financing, the funds generated through the privatization of the public enterprises have become a new important source of financing budget deficit after 1991.
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FIGURE 3.3 FINANCING DEFICITS AS A % OF GDP 1970-2010
16 14 12 10
8 Domestic 6 Foreign 4 2 0 1970 1975 1980 1985 1990 1995 2000 2005 2010
Source: CBSL Annual Report 2010
Continuous overall fiscal deficit, partly due to continuous deficit in the current account and partly absorbed highly concessionary foreign loans received for investment activities raised public borrowing from domestic as well as foreign sources (Rathnasiri, 2004). During the last two decades borrowing from commercial banks increased unprecedented level. In overall, commercial bank credit to public sector has increased from 3 per cent in 1981 to 36 per cent in 2009. The relevant figure as a % of GDP stood at 10 per cent in 2009 from 0.7 per cent in 1981 (figure3.4).
FIGURE 3.4 COMMERCIAL BANK CREDIT TO PUBLIC SECTOR 1981-2010
60.0
50.0
40.0
30.0
20.0
10.0
0.0
1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
Public Credit(% of toal) Public Credit(% of GDP) www.zenithresearch.org.in www.zenithresearch.org.in
Source: Central Bank of Sri Lanka- Annual Report Various Issues
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4. EMPIRICAL ANALYSIS
4.1 VARIABLE INSIGHT AND DATA SOURCE
In this study macro economic analysis will be carried out on fiscal policy and financial development in Sri Lanka. The study incorporates macro approach since we are dealing with time series data. Further, macro approach is more suitable since the study uses macro variables in this analysis.
FIGURE 3.5 CONCEPTUAL MODEL
Causes Causes Fiscal Policy Variables Macro Variables
Government Expenditure Financial Savings Government Revenue Development Interest rate Public Borrowings Inflation Openness
Measure Commercial Bank Assets/GDP
This study mainly deals with three fiscal policy variables as independent variables: public borrowing from commercial bank as a ratio of GDP (PBC) and government expenditure as a percentage of GDP (GOVE) and government revenue as a percentage of GDP (GOVR). Financial development in the Keynesian theory can occur along with rise in government expenditure which introduced as a variable of aggregate demand. Therefore, this study uses government expenditure as a fiscal policy variable. The available set of control variables includes inflation rate(INFR) and Foreign Trade to GDP(FTGDP), domestic savings ratio and real interest rate because in the broad literature, Roe (1982), Xala-i-Martin (1992), Ghatak (1997), Chandana (2000) Boyd et al. (2001), Claessens and Laeven, (2003) Siong and Demetriades (2006), Peter et.al. (2009) identified those variables as major determinants of financial development. The theoretical literature suggests that public sector borrowing from commercial bank positively contribute to financial development by providing safe assets (Hauner, 2006).
The dependant variables which explain financial development are commercial bank assets as a percentage of GDP (CBA). Financial development can occur along with the accumulation of financial assets at a faster rate. Further, study uses CBA as dependent variable since it reflects www.zenithresearch.org.in the robust relationship with the economic growth (Levine et al., 2000). It provides more
information on the level of financial services and the growth promoting activities of the financial
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EXCEL International Journal of Multidisciplinary Management Studies Vol.2 Issue 2, February 2012, ISSN 2249 8834 Online available at http://zenithresearch.org.in/ intermediation. The relevant data will be collected from the Central bank annual reports and economic and social Statistics of Sri Lanka. The interval is from 1977 to 2008, all the data are annual data. The time-series analysis, using standard co-integration methodology has been use to analyze the causal relationship between fiscal policy and financial development. All the econometrics computations are done with Eviews 6.0.
4.2 ECONOMETRICS ANALYSIS
This analysis will use time series data to test the causality and impact of fiscal policy variables on the determination of financial development. Since the study deals with time series data, a test for stationary is a very important pre condition before proceeding to deeper analysis. In general, various macro economic theories assume a long run stable relationship between certain economic variables. This means that a set of macroeconomic variables cannot move away too far from each other, if there is a long run relationship among them. Therefore, prior to the estimation of the dynamic model, it is essential to conduct a unit root test. The unit root test is generally based on either using Dickey- Fuller (DF) test or Augmented DF Test (ADF) or the Surgan Bhagava Durbin Watson (SBDW) test. In this paper, ADF unit root test is used to check the stationary of the data. It uses co-integration test and to find the infection of the fiscal policy to financial development and uses Granger causality test to further verify the result of the model. This paper uses the method of Co-integration test based on regression residual mainly using multivariate single equation test. This is called Engle-Granger Two Step methodology. The general econometric model can be as follows;
FD = Fiscal Variable + Control Variable + Єt (1)
CBAt = ß0 +ß1 PBCt +ß2 GOVEt +ß3 GOVR t +ß3DSt + ß4 RIRt + ß5 INFR t + ß6 FTGDP t + Єt (2)
4.2.1 UNIT ROOT TESTS
The Table 4.1 summarizes the ADF test results. The unit root test explained that all variables are
non stationary at their levels.
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TABLE 4.1 UNIT ROOT TEST
Test critical value
Variable Test Form ADF Test results
(C,t,l) t-statistics 1% 5% 10%
CBA (c,t,0) -1.893881 -4.2844580 -3.562882 -3.215267 Non stationary d(CBA) (c,t,1) -4.391626 -4.309824 -3.574244 -3.221728 stationary
GOVE (c,0,0) -2.565144 -3.661661 -2.960411 -2.619160 Non stationary d(GOVE) (c,t,0) -10.95031 -4.296729 -3.568379 -3.218382 stationary
GOVR (c,0,0) -2.244750 -3.661661 -2.960411 -2.619160 Non stationary d(GOVR) (c,t,0) -8.772235 -4.296729 -3.568379 -3.218382 stationary
PBC (c,t,0) -2.083306 -4.284580 -3.562882 -3.215267 Non stationary d(PBC) (c,t,1) -4.305431 -4.296729 -3.568379 -3.218362 stationary
RIR (c,0,1) -1.238014 -2.644302 -1.952473 -1.610211 Non stationary d(RIR) (c,t,0) -9.218687 -4.296729 -3.568379 -3.218838 stationary
INFR (0,0,0) -1.298507 -2.641672 -1.952066 -1.610400 Non stationary
d(INFR) (c,t,0) -8.027885 -4.296729 -3.568379 -3.218382 Stationary
FTGDP (c,0,0) -0.095960 -2.641672 -1.952066 -1.610400 Non stationary d(FTGDP) (c,t,0) -11.17940 -4.296729 -3.568379 -3.218382 stationary
DS (C,T,1) -3.4058 -4.33933 -3.58753 -3.22923 non-stationary d(DS) (C,T,0) -6.14866 -4.35607 -3.59503 -3.23346 stationary
Note: c,t,l in test form respectively means that ADF test equations consist of intercept, trend,
and lags and „d‟ means first difference. www.zenithresearch.org.in
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The non-stationary of the data is probably due to the presence of long run and seasonal unit roots which imply that, in addition to a stochastic trend, these series exhibit a varying seasonality. The ADF unit test indicates that the difference of first order is stationary in all variables. Therefore, the order of integration of all variables is I (1). So we can do co- integration test on the above model to establish long term relationship. That means all non-stationary variables are integrated in the same order, this makes the co-integration relationship meaningful. Since all variables in the model are compatibly integrated of order one [I (1)] and these variables are suitable for the long run co integration test.
4.2.2 LONG RUN MODEL
According to the Engle Granger methodology, first step is to run the original regression equation to measure the coefficients. In the first model the low DW statistics shows the problem of autocorrelation. By adding additional variables to the first two models (ar(1), ar(2)) minimized the autocorrelation. Then, study continued the residuals test to confirm the findings. The residual term is steady and the test confirmed that there exists a long term relationship between fiscal policy variable and financial development in Sri Lanka. The test statistics are shown in the table 4.2 and 4.3.
TABLE 4.2 LONG RUN REGRESSION MODEL variable coefficient std. Error t-statistics prob.
GOVE 0.351124 0.19465 1.803876 0.0856
GOVR 0.217024 0.326468 0.664765 0.5134
FTGDP 0.329023 0.092455 3.558722 0.0019
INFR -0.23645 0.199815 -1.119257 0.2757
RIR -0.07962 0.191718 0.415298 0.6821
PBC 0.740271 0.199312 3.71413 0.0013
DOS 0.796744 0.284172 2.803735 0.0106
Ar(1) 0.451739 0.122873 3.676473 0.0014
AR(2) 0.43589 0.129268 3.424975 0.0025
R-squared 0.868132 Mean dependent var 45.27947
Adjusted R-squared 0.817897 S.D dependent var 5.684075 www.zenithresearch.org.in www.zenithresearch.org.in
S.E regression 2.425598 Akaike info criterion 4.853358
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Sum squared resid 123.554 Schwarz criterion 5.273717
Log likelihood -63.8004 Durbin watson stat 2.206321
TABLE 4.3 RESIDUAL UNIT ROOT TEST
variable Test form ADF test statistics Critical value Conclusion residual of the original series (c,t,1) -3.48347 -4.33933 stationary
Note: c,t,l, in test form respectively means that ADF test equations consist of intercept, trend, and lags and „d‟ means first difference.
Although there is a long term relationship, it does not explain the causal relationship among them. The causal relationship can be verified by granger causality test. Granger causal relationship between variables is as follows.
TABLE 4.5 GRANGER CAUSALITY TEST
Null Hypothesis Obs. F-Statistics Probability
GOVE does not Granger Cause CBA 30 2.81069 0.07924
CBA does not Granger Cause GOVE 6.23198 0.10637
GOVR does not Granger Cause CBA 30 0.40819 0.66920
CBA does not Granger Cause GOVR 1.05942 0.36171
PBC does not Granger Cause CBA 30 4.24855 0.02580
CBA does not Granger Cause PBC 14.6832 6.01350
INFR does not Granger Cause CBA 30 1.37072 0.27236
CBA does not Granger Cause INFR 2.26767 0.12444
FTGDP does not Granger Cause CBA 30 0.59079 0.05614
CBA does not Granger Cause FTGDP 0.30070 0.74294
DOS does not Granger Cause CBA 30 1.90196 0.07026 www.zenithresearch.org.in
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CBA does not Granger Cause DOS 6.31037 0.10605
RIR does not Granger Cause CBA 30 0.00262 0.99738
CBA does not Granger Cause RIR 0.43816 0.65008
4.3 EMPIRICAL RESULTS
To examine the main issue of this study, table 2 reports the results of the regression. The discussion of the results is to be discussed by reporting the association between fiscal policy and financial development since paucity of studies on that nature. The results support the view that fiscal policy measures are positively and highly significantly related to financial development.
Of the fiscal variable, government expenditure (GOVE) and public borrowing from commercial banks (PBC) are statistically significant and have the expected positive sign. Here, PBC shows highly significant relationship (at 1%). According to the results a 1% increase in public borrowings leads to on average 0.74 percent rise in commercial bank assets. This indicates that the government had heavily relied on borrowing from banking sector to finance fiscal deficit. This confirmed the safe assets view of commercial bank since such holdings stimulate profits in the banking system. In a previous study done by Hemachandra (2005) pointed out that government activities are important in the financial development process. As such, present study incorporated those activities and identified such activities are more appropriate to explain financial development in the country. But, government revenue (GOVR) is not significant in explaining financial development as a fiscal variable. A one percent increase in government expenditure has led to a 0.35 percent rise in commercial bank assets. Government expenditure has positively related to financial development since any increase in public expenditure raises aggregate demand and that causes to expand money demand. According to Keynesian theory financial deepening can occur due to rise in government expenditure. As such, results confirmed the Keynesian paradigm. Interestingly, these findings on impact of government expenditure and public borrowings from commercial bank on financial development are further supported by
granger causality test results given in table 4.
Of the usual control variables, the trade liberalization indicator, foreign trade to GDP(FTGDP) and domestic savings (DOS), real interest rate (RIR) have the expected positive sign. Among that FTGDP and DOS are statistically significant relationship with financial development. These results are conformed the economic theory. Further, inflation rate (INFR) is negative but not statistically significant. These findings are further supported by the granger causality test reported in table 4.
In summary, the overall regression model shows that government expenditure, public borrowing from commercial banks, domestic savings, and foreign trade to gdp, has far more significant
impact on commercial banks assets. These results further confirmed by the granger causality test. www.zenithresearch.org.in www.zenithresearch.org.in
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5. CONCLUSIONS
Since the days of Schumpeter the question of what determines the financial development and the long term economic growth has been at the core of economics. In this framework, recent past there has been lot of studies on financial development and economic growth. But, the impact on fiscal policy on financial development has been relatively ignored until recently. Therefore, in this paper we have examined theoretically and empirically the relationship between fiscal policy variables and financial development as a case study of Sri Lanka using a data during post liberalization period based on co- integration and causality test. The empirical literature provides inconclusive results whether fiscal policy detrimental to financial development.
The findings of the study confirmed that fiscal policy is positively and significantly related to financial development in Sri Lanka. Therefore, study revealed that expansionary fiscal policy is strengthened the financial development in Sri Lanka. Public sector borrowings from commercial banks and government expenditure in economic activities stimulate financial development in Sri Lanka. But, this is some what contradict with the previous studies for developing countries (Hauner 2006). This result can be accepted in a small economy where governments play a dominant role in economic activities. In such a situation governments has to borrow from the financial market. The current trend is that in developing countries governments heavily relied on domestic market borrowings rather than riskier foreign borrowing. As per the bankers point of view this source of lending is low riskier and profitable.
Nevertheless, government expenditure also identified as a causal factor of financial development confirming Keynesian hypothesis. It is obvious government has to play a key role to extract the benefits expected from financial development. Therefore, government activities particularly on human factor development, technological improvement in financial sector, uplifting institutional setup, modernizing payment and settlement infrastructure in the financial system are significantly influenced financial deepening in the country.
On the other side, the positive effect of public borrowing and expenditure on financial deepening may partly offset by negative effect on capital accumulation due to the crowding out effect. In deed, if savings are highly reactive to interest rate, capital accumulation may even increase. But, unfortunately in Sri Lanka previous studies confirmed that interest rate is not highly responsive to savings (Chandana 2000, Hemachandra 2005). Therefore it is not possible to ignore the potential threat from crowding out effect on financial intermediation.
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Athukorala, P. and Rajapathirana, S. (1993). Liberalization of the Domestic Financial Market: Theoretical issues with Evidence from Sri Lanka, International Economic Journal, 7(4), 17-33.
Barro, R. (1989). The Recardian Approach to Budget Deficit, Economic Perspectives, spring www.zenithresearch.org.in
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Barro, R. J. (1995). Inflation and Economic Growth, Bank of England Quarterly Bulletin, 166- 167.
Bencivenga, V. Smith, B. Starr, R. (1991). Transaction costs, Technological choice and Endogenous growth, Journal of Economic Theory, 67: 153- 177.
Benhabib, J. and Spiegel, M. (2000). Cross Country Growth Regressions: Are Primitives All That Matter? Journal of Economic Growth, 5:341-360.
Bleck, T. Financial Dependence and International Trade, 2006, World Bank Policy Research Working Paper 2609, World Bank, Washington D.C.
Boyd, J.H. and Edward, C.P. (1986). Financial Intermediary Coalitions, Journal of Economic Theory, 38.
Central Bank of Sri Lanka, Annual Reports. Varied Issues
Chandana, A. (2000), Financial Sector Liberalization in Sri Lanka: A Macro Level Inquiry into Capital Accumulation, Investment, Growth, and Stability, Vrije University Amsterdam.
Chinn, M. and Ito, H. (2006). Capital Account Liberalization, Institution and Financial Development: Cross Country Evidence, NBER Working Paper 8967.
Damham, D. and Kelegama, S. (1994), Economic Liberalization and Structural reforms: The Experience of Sri Lanka 1977-93, working Paper Series No 163, Institute of Social studies, Hague.
Demetriades, P. and Hook S. (2006). Openness, Institutions and Financial Development, World Economy and Finance Research Programme, Working Paper Series 12, Economic and Social Research Council, London.
Fase, M. G. and Abma, R.N. (2003). Financial Environment and Economic Growth in Selected
Asian Countries, Journal of Asian Economics, 14:11-21.
Fry, J. (1990). Sri Lanka‟s 1977 Balance of Payment and Financial Reforms: Plus Change?, International Economic Change, 4(1), 71-90.
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Hauner, D. (2006). Fiscal Policy and Financial Development, IMF working paper No 06/26, International Monetary Fund, Washington D.C.
Hemachandra, W.M. (2005). Financial Deepening and its Implication for the Sri Lankan Economy, Central Bank of Sri Lanka,
Jayasundara, P.B. (1986). Fiscal Policy in Sri Lanka since Independence: Facets of Development in Independence Sri Lanka, Ronie De Mel Felicitation.
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Levine, R. Loayza, N. Beck, T. (2000). Financial Intermediation and Growth: Causality and Causes, Journal of Monetary Economics, 46, 31–77.
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Samaratne, P. (1997). External Payments: Trends, Problems and Policy Response, in Lakshman W.D.(ed), Dilemman of Development – Fifty Years of Economic Change in Sri Lanka, Sri Lanka Association of Economists, Colombo.
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Shaw E.S. (1993). Financial Deepening in Economic Growth, Oxford University Press, London.
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27, &28, Central Bank of Sri Lanka.
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ROLE OF FINANCIAL SERVICES IN ECONOMIC DEVELOPMENT: A STUDY IN DEVELOPING COUNTRIES
DR. SURESH VADDE*
*Associate Professor, Department of Accounting & Finance, College of Business & Economics, Mekelle University, Melelle, Ethiopia.
ABSTRACT
Developing countries attach great importance to financial sector development and deepening in the pursuit of their poverty reduction goal. By mobilizing savings, facilitating payments and trade of goods and services, and promoting efficient allocation of resources, the financial sector is seen as playing a critical role in facilitating economic growth and, directly through broadening access to finance and indirectly through growth, contributing to poverty reduction. Financial sector development should be sequenced in developing countries, particularly the relative importance of domestic banks and capital markets and, in developing the banking sector, the relative importance of large and small banks. While broadening the access to finance by microenterprises, small and medium-sized enterprises (SMEs), and vulnerable groups is recognized as critically important for poverty reduction, it is also widely believed that microfinance and SME credit programs need to be well designed and targeted to be effective. In particular, these programs need to be accompanied by other support services such as provision of training and capacity building, assistance in accessing markets and technologies, and addressing other market failures. The paper highlights several areas where more research is urgently needed, in particular, how to sequence financial sector development, how to balance the need for financial innovation and that for economic and financial stability, and how to make microfinance and SME credit programs work better in developing countries. By this paper the author also has revealed various aspects related to financial sector reforms and business strategies for economic development.
KEYWORDS: Economic Growth, Small and Medium-Sized Enterprises (SMEs), Microfinance and Business Strategies etc. ______
1. INTRODUCTION
The economic development of any country depends upon the existence of a well organized financial system. It is the financial system which supplies the necessary financial inputs for the production of goods and services which in turn promote the well being and standard of living of the people of a country. Thus, the ‗financial system‘ is a broader term which brings under its fold the financial markets and the financial institutions which support the system. The major assets traded in the financial system are money and monetary assets. The responsibility of www.zenithresearch.org.in the financial system is to mobilize the savings in the form of money and monetary assets and
invest them to productive ventures. An efficient functioning of the financial system
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Financial services are fundamental to economic growth and development. Banking, savings and investment, insurance, and debt and equity financing help private citizens save money, guard against uncertainty, and build credit, while enabling businesses to start up, expand, increase efficiency, and compete in local and international markets. For the poor, these services reduce vulnerability and enable people to manage the assets available to them in ways that generate income and options — ultimately creating paths out of poverty. The financial services sector is the largest in the world in terms of earnings, comprised of a wide range of businesses including merchant banks, credit card companies, stock brokerages, and insurance companies, among others. It focuses primarily on large domestic and multinational commercial banks. These large firms have the expertise, reputation, and geographic reach to have significant direct impact and, through engagement and example, to change the way entire markets operate. They are using increasingly deliberate strategies to expand economic opportunity through business models that serve poor individuals and SMEs as clients. They are also developing initiatives to build human and institutional capacity and using their experience and influence to shape policy frameworks in the regions in which they work.
2. LITERATURE REVIEW
Economists believe that the most important role of the financial sector in facilitating growth is to reduce information, enforcement, and transaction costs. This is achieved through a number of specific functions that the financial sector performs. On the basis of an extensive survey of the literature, Levine (2004) identified and summarizes these as follows: (i) countries with better- functioning banks and financial markets grow faster; (ii) simultaneity bias (i.e., the reverse causality) does not seem to drive this conclusion; and (iii) better-functioning financial systems ease the external financing constraints that impede firm and industrial expansion, suggesting that this is one mechanism through which financial development matters for growth. Nobel Laureate Robert Lucas (1988) also dismisses finance as an ―over-stressed‖ determinant of economic growth. On the other hand, Nobel Laureate Merton Miller (1988) argues ―that the financial markets contribute to economic growth is a proposition too obvious for serious discussions.‖ Schoar (2009), while agreeing that a competitive banking sector plays an important role in facilitating firm growth and competition, and that (public) equity markets can at best constitute a small fraction of overall financing in developing countries, questions promoting small banks as a solution. Zingales (2009) agrees that what works for a developed country does not necessarily work for a developing one and that in most developing countries today; the goal of financial sector development should not be to push for an immediate development of stock markets. Thoma (2009) agrees that developing countries need small banks and microfinance to meet many of basic financial needs, but also need more sophisticated financial products and services, such as hedging price risks through futures markets, insuring against crop failures, purchasing farm equipment through pooling arrangements,
and managing the problem brought about by seasonality. www.zenithresearch.org.in
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3. OBJECTIVES OF THE STUDY
The main objectives of the study are as follows:
. To study the new Innovations and expanding financial services sector in developing countries.
. To know the financial sector reforms and business strategies for economic development.
4. NEW AND EXPANDING MARKETS
Shareholder value is determined in part by expectations about growth. While developed economies continue to grow, many developing economies are growing even more rapidly. Indeed, World Bank research shows that the developing economies will, as a group, grow faster on average than developed ones for at least the next 25 years. This growth can be expected to bring hundreds of thousands, even millions of people into the formal financial sector for the first time. Inclusive business models could increase the potential even further. The opportunities include microfinance, meso or SME finance, and remittances.
4.1 MICROFINANCE: Comparison of data from three authoritative sources, the Microfinance Information Exchange, the Microcredit Summit, and the Consultative Group to Assist the Poor, reveals that a core group of microfinance institutions reaches between 30 and 50 million borrowers worldwide. According to microfinance pioneers Marfa Otero and Elisabeth Rhyne of ACCION, while it is impossible to gauge the full extent of global demand, "it is easy to determine that demand is much greater than current supply." They put the potential market at several hundred million families at least.17 In addition, demand exists for more diversified personal financial services beyond credit, including savings, bill payment, insurance, and more.
4.2 SME FINANCE: In many developing countries, SMEs with fewer than 50 employees constitute 95% of all businesses. And yet, SMEs in those countries contribute far less to GDP and employment than their developed country counterparts: 17% and 30%, respectively, compared with 50% and 60% in developed countries. Part of the problem is informality, which limits SME access to productivity tools
and market opportunities. However, with increasing attention to this topic — including the World Bank's annual Doing Business rankings" — incenting countries to reform, progress is taking place. With key bottlenecks being lifted, the SME sector could experience significant growth and development, offering new and expanded markets for financial services firms. Many are already aggressively pursuing this segment, though undoubtedly at the larger and better-established end of the spectrum . Within the donor and investor communities, the focus on smaller, newer, and otherwise higher- risk SMEs is intensifying, with pointed discussion of what is required to generate attractive commercial returns?'
4.3 REMITTANCES: As indicated earlier, international remittances doubled between 2001 and 2006, now totaling over $199 billion per year. In addition to international remittances, increased urbanization has led to growth in domestic remittances. Household surveys suggest that a significant percentage — up to 50% — of these flows still happen outside formal financial channels, suggesting www.zenithresearch.org.in
additional market opportunity for commercial financial institutions.'
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5. INNOVATION IN THE FINANCIAL SERVICES SECTOR
Financial services firms have traditionally paid little attention to the poor because, by definition, the poor have limited assets. Informality, insufficient information, inadequate infrastructure and other barriers have reinforced the belief that serving the poor cannot be commercially viable, much less a driver of innovation. New, lower-cost business models have begun to challenge this conclusion, relying for instance on innovations in technology and utilization of existing retail channels.
A wide range of examples shows the power of information and communications technology to reduce distribution and customer service costs, including the village ATMs of Citibank and ICICI Bank in India, and the mobile transactions services of Wizzit and MTN Banking in South Africa, SMART Communications and Globe Telecom in the Philippines, Celpay in Zambia and the Democratic Republic of Congo, and Vodafone and Safaricom in Kenya. Indeed, a recent study by the Consultative Group to Assist the Poor (CGAP) found that 62 financial institutions in 32 countries report using technology-based channels, ranging from ATMs, point of sale devices, and mobile phones, for transactions with low-income clients.23 Interestingly, Wizzit and Globe Telecom provide financial services without associating with a bank or other financial institution, thus eliminating the need for the poor to hold bank accounts in order to pay bills, transfer funds, and deposit or withdraw cash.
Another emerging low-cost business model for providing financial services to low-income clients can be found in the retail sector in Mexico, where Wal-Mart is providing deposits, withdrawals, transfers, and payments — going beyond consumer credit. Domestic retail chain Elektra and its banking arm Banco Azteca have already been in this business for a number of years. A significant share of this innovation is originating outside the traditional financial services sector. As World Bank economists Mohsen Khalil and Charles Kenny have predicted, "the technologies driving change in the next decade may well encourage a further blurring of the line between access, industries and applications."' There is a crucial opportunity for commercial financial institutions to become involved now, particularly while banking regulation in many countries favors partnership, as opposed to facilitating the efforts of telecommunications, retail, and other firms to go it alone.
6. BUSINESS STRATEGIES FOR EXPANDING ECONOMIC OPPORTUNITY
As we have seen, financial services help the poor to reduce vulnerability and manage the assets available to them in ways that generate income and options. Perhaps the most significant way banks can contribute to expanding economic opportunity is therefore to find ways of making financial services available to low-income individuals, entrepreneurs, and small business owner-operators — ideally through inclusive business models that are financially viable, and thus offer the potential for sustainability and scale.
In addition to inclusive business model innovation, large commercial financial institutions are engaging in efforts to develop human capital, build institutional capacity, and help shape supportive regulatory and policy frameworks in the geographies in which they operate. These four strategies are not mutually exclusive, but rather complementary. For instance, creating or strengthening inclusive business models may require a firm to build the managerial capacity of local partners or to www.zenithresearch.org.in promote specific regulatory changes domestically or internationally. Many of the examples covered
in this report expand economic opportunity using multiple strategies in concert.
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7. CREATING INCLUSIVE BUSINESS MODELS: As defined in the United Nations Development Programme's forthcoming Growing Inclusive Markets report, inclusive business models include the poor — whether as employees, entrepreneurs, suppliers, distributors, retailers, customers, or sources of innovation — and are or have the potential to become financially viable.
In the financial services sector, most inclusive business models to date have included the poor as customers and entrepreneurs. These have included:
7.1 MICRO CREDIT. Nearly all multinational commercial banks are now involved in microfinance in some capacity. Most do not provide micro-credit directly to clients, but rather invest in or structure deals on behalf of established microfinance institutions. For example, Deutsche Bank, in collaboration with the US Agency for International Development (USAID), the UK's Department for International Development (DfID), and a group of philanthropists and socially responsible investors, has created a new investment facility called the Global Commercial Microfinance Consortium. The Consortium leverages participating donors as the first bearers of risk to generate investment from commercial investors; so far demand has exceeded expectations. Citigroup underwrote a $45 million bond offering for Mexican microfinance institution Compartamos in 2004 that was so successful that its second issuance in 2005 was oversubscribed by 300%.
7.2 MICRO SAVINGS. While the poor are often precluded from opening traditional bank accounts due to high transaction fees, required deposit minimums, and the physical distance between the client and the bank, the poor still find ways to save, often through traditional networks and institutions. In Ghana, Barclays works with traditional Susu collectors, who act as walking savings accounts. By offering a range of services via the Susu collectors, Barclays has raised awareness of formal savings mechanisms, given clients greater security, and enabled them to build their credit profiles. Barclays anticipates replicating the model elsewhere in Africa. Savings groups, in various forms, are common in many parts of the developing world.
7.3 REMITTANCES. As described earlier, remittance flows are large and rapidly growing. A number of major financial institutions have begun to offer remittance products that generate new revenue directly and also help increase the number of personal banking accounts. In the US, for example, Citibank is offering low- fee accounts to immigrants from Mexico, enabling them to send remittances that relatives at home can access via its Mexican subsidiary, Banamex, using only a card. Citi is also offering Ecuadorian clients in the US remittances of up to $3,000 for only $5, delivered through microfinance organization Banco Solidario in Ecuador.
7.4 SME FINANCE. Though to date it has been overshadowed by microfinance, SME finance is critical in helping entrepreneurs and small businesses reach sizes where it is possible to take advantage of economies of scale and create jobs in significant numbers. To date, much of the innovation has been outside the commercial banking sector. In South Africa, for instance, Anglo Zimele makes debt and equity investments in small and medium black economic empowerment (BEE) enterprises connected with the mining industry, sometimes facilitating linkages between its portfolio companies and its parent Anglo American. With support from the Shell Foundation, GroFin, a pan- African investment firm, provides debt and equity along with business development services to SMEs
in South Africa, Kenya, Uganda, Tanzania, Rwanda, and Nigeria. www.zenithresearch.org.in
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8. SMALL ENTERPRISE ASSISTANCE FUNDS (SEAF)
SEAF is a global investment firm that provides growth capital and operational support to small enterprises in emerging markets. Initially established as a private investment subsidiary of CARE, the international development NGO, SEAF now operates for-profit investment funds in more than 20 countries. It counts among its investors international finance institutions, pension funds, insurance companies, banks, and foundations. In 2003, SEAF launched an initiative to explore the impact of its investments on local communities. The first study released concluded that every dollar invested in local small enterprises generated an additional 10 dollars in the local economy.
8.1 SUPPLY CHAIN FINANCE. Commercial financial institutions are also offering SME finance in collaboration with large firms in other industries — such as agribusiness, manufacturing, mining, and others — that are working with SMEs in their value chains. Such relationships can help the financial institution with deal-flow, reducing the cost of identifying qualified borrowers and sometimes subsidizing interest rates. These relationships can also help reduce risk, as large buyers often provide SMEs with relatively stable markets and capacity-building support such as basic business management training, helping assure lenders that borrowers will have the income to repay their loans. In addition, large buyers can be willing to share risk explicitly by guaranteeing SMEs markets for their products at pre-defined prices or guaranteeing loans. ABN AMRO Real in Brazil, for example, has worked with Votorantim Celulose e Papel (VCP), a paper and pulp company, to finance small farmers growing eucalyptus. Because eucalyptus takes seven years to mature, VCP has reduced ABN AMRO Real's risk by guaranteeing to buy the eucalyptus at pre-defined prices, adjusted for inflation. ICICI Bank is another major commercial financial institution offering finance for small farmers as part of other large companies' value chains, providing unsecured loans to farmers growing barley for Cargill to make into malt for SABMiller in India.
8.2 INSURANCE. The poor operate on razor-thin margins, and without significant savings, insurance, or government "social safety nets" to rely on, they are extremely financially vulnerable. TATA-MG originally entered the micro-insurance market in India as a condition for business licensing, and has since developed a model that uses community members referred by credible NGOs as salespeople. For the millions in the developing world who rely on agriculture for their livelihoods, weather is a particularly important source of risk. In addition, constant uncertainty about future earnings prevents farmers from investing too heavily in their farms, which limits productivity growth. In India, ICICI Lombard Insurance has teamed up with the microfinance institution BASIX to provide crop insurance for rain-fed farmers. Payments are made if rain falls below a certain amount, or if certain other weather patterns occur; this weather-indexed model has eliminated much of the cost associated with indemnity-based insurance. ICICI Lombard projects that the business, first piloted in 2003, will become profitable by the end of 2008.
8.3 COMMODITY PRICE HEDGING TOOLS. In the developed world, farmers have access to a variety of price hedging products to protect themselves in case of price instability in world commodity prices. Farmers in the developing world have few such options. Rabobank has worked
in East Africa to develop affordable hedging products for cotton and cocoa farmers.
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9. THE INTERNATIONAL APPROACH TO FINANCIAL SECTOR REFORM
Developing countries have made important progress toward improved financial supervision in the past few years. Reforming financial sectors is a lengthy and complex process of institution building and incentive reorientation, whose success requires full ownership of, and participation in, the process by society and its government.
Beginning in the early 1980s, financial sector reforms in developing countries were rooted in the premise that liberalized economic relationships, macroeconomic stability, and competitive price setting would lead to high and stable economic growth. While most people understood that there was a crucial role for government (prudential supervision of the financial system, for instance), it was not seen as coincidence that, in the countries that pursued strong macroeconomic adjustment and financial liberalization, growth improved markedly. Since the early 1 990s, market volatility and crises, as well as a better understanding of how financial markets work, have led economists and policymakers to re-examine their policy framework. Those financial crises were costly and the risk of systemic repercussions is seen to have risen sharply in recent years. Greater emphasis is now placed on market rule- making that should be consistent across national boundaries. Also, more international policy cooperation is required for managing rules effectively in the new global marketplace. Financial sector reform requires writing effective rules and addressing the question of how to make financial market participants and supervisors respond to those rules adequately, in a timely fashion, and consistently with the objective of maintaining efficiency.
A strong emphasis must be placed on the microeconomic and institutional dimensions of financial systems, which are linked. Competition and prudential supervision need to be consistently integrated into financial sector reforms. Redressing structural weaknesses relating to distorted incentives, inadequate information, inappropriate allocation of responsibilities, and poor market infrastructures is now regarded as a prerequisite to achieve good governance of financial institutions and establish a solid credit discipline across the markets.
The international community recognizes the need for arrangements that minimize moral hazard, sequencing liberalization consistently with the overall pace of market development, and supporting liberalization with policies aimed at ensuring that there are appropriate incentives and effective market discipline. Another distinctive feature of international strategy is recognition that financial stability requires strong market regulation and supervision of financial institutions. Current strategy seeks to strike a balance between principles to ensure good institutional governance, mechanisms for inducing effective market discipline, and regulatory and supervisory regimes that are market-friendly and mimic the market in driving agents‘ action through incentives.
10. FINANCIAL SECTOR REFORM: INCENTIVES AND STRATEGIES
To make financial markets stronger and more efficient (and therefore less vulnerable to systemic crises), emphasis must be placed on incentive-based financial sector reforms, that is, on setting up a system of rewards and penalties such that market participants perceive (correctly) that it is www.zenithresearch.org.in in their own best interest to behave in efficient and prudent ways. To support such a system,
infrastructure (including the legal, regulatory, and supervisory frameworks) should be the
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The reform process described in this paper broadly covers three areas— the competitive environment, including issues of franchise value and reputational capital of banks and building capital markets and the nonbank investor base; prudential regulation and supervision, safety nets, and self-regulating mechanisms; and, fundamentally, information, including its production and dissemination and the role of informal finance. Specific recommendations include:
10.1 BALANCING COMPETITION IN BANKING WITH INCENTIVES TO CREATE FRANCHISE VALUE. Financial sector reform should induce financial institutions to invest in reputational capital. Given that many markets in developing countries are emerging from long periods of underdevelopment and state controls, measures are probably needed to increase the value of bank franchises. Some mild restraints could be used to balance competition with incentives to induce domestic institutions to accumulate sufficient capital (including reputational capital) before being exposed to further financial liberalization.
10.2 DEVELOPING CAPITAL MARKETS AND AN INVESTOR BASE. An important medium- term objective of financial sector reform is to endow the economy with a modern capital market and to increase participation by institutional investors. Mature financial markets reduce transactions costs associated with limited knowledge and incomplete trust, and thus help allocate savings to the best investment opportunities.
10.3 STRENGTHENING PRUDENTIAL REGULATION AND SUPERVISION. Governments should complement the creation of franchise value by adopting a regulatory regime based on rules designed to align the private incentives of market players with the social goal of financial stability, and by strengthening supervision.
10.4 ADOPTING INCENTIVE-BASED SAFETY NETS. Safety-net arrangements to reduce the risk of a systemic crisis should minimize moral hazard by limiting risk protection or
making the cost of protection sensitive to the risk covered.
10.5 ENCOURAGING SELF-POLICING. Through the history of trade and finance, market participants have established institutions that ensure honest and prudent behavior, lower transactions costs, and reduce risks. Some of these self-policing bodies may eventually develop into full-fledged self- regulatory organizations. The government can help by providing the supporting legal and supervisory infrastructure.
10.6 ENHANCING PRODUCTION AND DISSEMINATION OF INFORMATION. A crucial component of financial sector reform is improvement in the quality and quantity of reliable and timely information. Governments can improve incentives for the optimal provision of information.
10.7 STRENGTHENING INFORMAL FINANCE. Governments should exploit the www.zenithresearch.org.in comparative advantage of informal financiers and strengthen the complementarily between the
formal and informal sectors.
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11. CONCLUSION
Financial sector development plays a vital role in facilitating economic growth. A sound financial system supports growth through mobilizing and pooling savings; producing information about possible investments and allocating capital; monitoring investments and exerting corporate governance; facilitating the trading, diversification, and management of risks; and facilitating the exchange of goods and services. The effects of financial sector development on growth in developing countries are more persistent and larger than those in developed countries. The industries composed of smaller firms grow faster in countries with a better-developed financial sector, suggesting that financial development is particularly important for the growth of industries that are naturally composed of small firms. Microfinance and SME credit programs are considered as effective instruments to improve poor households‘ economic and social welfare and reduce poverty. It has also been argued that for microfinance to benefit the ultra- poor, programs should be well targeted and designed, and should be supplemented with training, social empowerment programs, and other safety net measures—that is, following an integrated approach.
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No. 10766, National Bureau of Economic Research, Cambridge, MA. Available: www.nber.org/papers/ w10766.
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Available: http://www.economist.com/blogs/freeexchange/lin_roundtable. www.zenithresearch.org.in
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. Thoma, M. 2009. Lin Roundtable: Small Banks Need Help. Free Exchange, Economist.com blogs.
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www.zenithresearch.org.in www.zenithresearch.org.in
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REDUCING RISK OF CARDIOVASCULAR DISEASE THROUGH PHYSICAL ACTIVITIES
DR. ARVIND MALIK*
*Associate Professor, Department of Physical Education, Kurukshetra University, Kurukshetra, Haryana.
ABSTRACT
The primary purpose of this narrative review was to evaluate the current literature and to provide further insight into the role physical inactivity plays in the development of chronic disease which is common cause of premature death in the developing countries. There are irrefutable evidence of the effectiveness of regular physical activity in the primary and secondary prevention of several chronic diseases (e.g., cardiovascular disease, diabetes, cancer, hypertension, obesity, depression and osteoporosis) and premature death. There appears to be a linear relation between physical activity and health status, such that a further increase in physical activity and fitness will lead to additional improvements in health status. Physical inactivity is a modifiable risk factor for cardiovascular disease and a widening variety of other chronic diseases, including diabetes mellitus, cancer (colon and breast), obesity, hypertension, bone and joint diseases (osteoporosis and osteoarthritis), and depression. The prevalence of physical inactivity (among 74% of adult Indian) is higher than that of all other modifiable risk factors. This article highlights physical inactivity among all section of population which leads to the premature death from cardiovascular disease in India. ______
INTRODUCTION
A shocker on the World Heart Day (29 September, 2011) WHO report claims “cardiovascular diseases are the world’s largest killers, claiming 17.3 million lives a year.” Time was when heart disease meant you had to be at least 70, doctors in India says almost half their cardiac patients
today are below 40! More than 2.5 million Indians died of cardiac related problems last year.
India has the highest number of heart patients in the world. It is estimated that by 2020, Cardiovascular disease (CVD) will be the largest cause of disability and death in India. The country already has more than 40.9 million people with diabetes and more than 118 million people with hypertension, which is expected to increase to 69.9 and 213 million respectively, by 2025 unless urgent preventive steps are taken. WHO estimates that India lost 9 billion dollars in national income from premature deaths due to heart disease, stroke and diabetes in 2005, and is likely to lose 237 billion dollars by 2015.
Regular physical activity favorably modifies cardiovascular risk factors of high blood pressure, blood lipid levels, insulin resistance and obesity. Several observational and interventional studies performed in developed countries of North America, Europe and Asia have shown that exercise-training programs significantly reduce overall mortality as well as death www.zenithresearch.org.in caused by myocardial infarction. The reported reduction in mortality has been the highest in
formal cardiac rehabilitation programs (about 25%) that also focus on control of other
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EXCEL International Journal of Multidisciplinary Management Studies Vol.2 Issue 2, February 2012, ISSN 2249 8834 Online available at http://zenithresearch.org.in/ cardiovascular risk factors. Finland had witnessed steepest decline in the cardio vascular diseases mortality. This has been accomplished by dietary alterations involving lower fat consumption, decline in smoking, better control of blood pressure and exercise as national habit and not by implementation of hi-tech gadgets and interventions.
Traditionally, populations in South and South-East Asia have been rural-based agrarian workers and occupational physical activity levels have been high. Rapid socioeconomic transition in this region has resulted in change of occupation from farming to formal industry- based jobs and, therefore, occupational physical activity has declined. Paradoxically, this was associated with increasing obesity, truncal obesity and lipid levels possibly due to faulty nutrition practices and decline in low-grade occupational and other minor physical activity that contributes significantly to daily energy consumption.
EXERCISE AND CORONARY ARTERY DISEASE
During the past half-century, prospective epidemiological studies of occupational and leisure-time physical activity have consistently documented a reduced incidence of coronary artery disease (CAD) events in the more physically active and fit subjects. The results are strong, with the most physically active subjects generally demonstrating CAD rates half those of the most sedentary group. The data demonstrate a graded relationship of decreasing CAD rates with increasing levels of activity. An energy expenditure of about 1600 kcal (6720 kJ) per week has been found to be effective in halting the progression of coronary artery disease, and an energy expenditure of about 2200 kcal (9240 kJ) per week has been shown to be associated with plaque reduction in patients with heart disease. Multiple studies were prospective and thereby demonstrate appropriate sequencing because the lower physical activity levels preceded the development of CAD rather than resulted from the disease itself. The results are consistent with all published studies documenting lower CAD rates in the more active subjects. The results are also plausible and coherent with evidence demonstrating beneficial effects of exercise on atherosclerotic risk factors, myocardial function, coronary artery size and vasodilatory capacity, vascular tone, and vulnerability to ventricular fibrillation.
EXERCISE AND CHOLESTEROL LEVEL
Physical activity both prevents and helps treat many established atherosclerotic risk factors, including elevated blood pressure, insulin resistance and glucose intolerance, elevated triglyceride concentrations, low high-density lipoprotein cholesterol (HDL-C) concentrations, and obesity. Exercise in combination with weight reduction can decrease low-density lipoprotein cholesterol (LDL-C) concentrations and limit the reduction in HDL-C that often occurs with a reduction in dietary saturated fat. The magnitude of the exercise effect is influenced by characteristics of the exercise intervention, individual variation, and whether exercise produces concomitant reductions in body weight. A meta-analysis of 52 exercise training trials of >12 weeks’ duration including 4700 subjects demonstrated an average increase in HDL-C levels of 4.6% and reductions in triglyceride and LDL-C concentrations of 3.7% and 5.0%, respectively. The largest and most carefully controlled exercise trial, the Health, Risk factors, exercise
Training, And Genetics (HERITAGE) study, included 675 normolipidemic subjects who www.zenithresearch.org.in participated in 5 months of exercise training. HDL-C increased 1.1 mg/dL (3%) among the 299
men studied, whereas triglycerides and LDL-C decreased 5.9 and 0.9 mg/dL or 2.7% and 0.8%,
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EXERCISE AND BLOOD PRESSURE
At least 44 randomized controlled trials including 2674 participants have studied the effect of exercise training on resting blood pressure. The average reduction in systolic and diastolic blood pressure was 3.4 and 2.4 mm Hg, respectively. Baseline blood pressure was an important determinant of the exercise effect. Average systolic and diastolic blood pressures decreased 2.6 and 1.8 mm Hg in normotensive subjects and 7.4 and 5.8 mm Hg in hypertensive subjects, respectively, suggesting that exercise may serve as the only therapy required in some mildly hypertensive subjects. There was no relationship between the weekly training frequency, time per session, or intensity of exercise training and the magnitude of the blood pressure reduction, which suggests that the dose-response curve for exercise and blood pressure is flat.
Some of the effect of physical activity on cardiovascular risk factors is an acute effect of recent exercise and is not dependent on prolonged exercise training or improvement in fitness. Serum triglycerides are reduced by vigorous exercise for up to 72 hours. HDL-C is also transiently increased by exercise. Vigorous exercise also acutely reduces systolic blood pressure, and this effect may persist for up to 12 hours. Exercise also has favorable acute effects on glucose homeostasis. These acute effects provide additional support for the recommendations from the CDC and the ACSM that adults should participate in moderate-intensity physical activity on most, if not all, days of the week.
HOW DOES PHYSICAL ACTIVITY AND FITNESS LEAD TO IMPROVED HEALTH OUTCOMES?
Numerous biological mechanisms may be responsible for the reduction in the risk of chronic disease and premature death associated with routine physical activity. For instance, routine physical activity has been shown to improve body composition (e.g., through reduced
abdominal adiposity and improved weight control), enhance lipid lipoprotein profiles (e.g., through reduced triglyceride levels, increased high-density lipoprotein [HDL] cholesterol levels and decreased low-density lipoprotein [LDL]-to-HDL ratios), improve glucose homeostasis and insulin sensitivity, reduce blood pressure, improve autonomic tone, reduce systemic inflammation; decrease blood coagulation, improve coronary blood flow, augment cardiac function and enhance endothelial function. Each of these factors may explain directly or indirectly the reduced incidence of chronic disease and premature death among people who engage in routine physical activity.
Routine physical activity is also associated with improved psychological well-being (e.g., through reduced stress, anxiety and depression). Psychological well-being is particularly important for the prevention and management of cardiovascular disease, but it also has important implications for the prevention and management of other chronic diseases such as diabetes, www.zenithresearch.org.in osteoporosis, hypertension, obesity, cancer and depression. Changes in endothelial function may
be a particularly important adaptation to routine physical activity. Endothelial dysfunction has
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EXCEL International Journal of Multidisciplinary Management Studies Vol.2 Issue 2, February 2012, ISSN 2249 8834 Online available at http://zenithresearch.org.in/ been observed with aging, smoking and multiple chronic disease states, including coronary artery disease, congestive heart failure, stroke, type 2 diabetes, hypertension, hypercholesterolemia and obesity. Regular aerobic activity has been found to improve vascular function in adults independent of changes in other risk factors and has been said to result in a shear-stress– mediated improvement in endothelial function, which confers a health benefit to a number of disease states.
CONCLUSION
There is a critical need for policy-level facilitation to make physical activity in daily living in all age groups in all sections of the society accessible, affordable, available, desirable and safe. There is incontrovertible evidence that regular physical activity contributes to the primary and secondary prevention of several chronic diseases and is associated with a reduced risk of premature death. There appears to be a graded linear relation between the volume of physical activity and health status, such that the most physically active people are at the lowest risk. Health promotion programs should target people of all ages, since the risk of chronic disease starts in childhood and increases with age. What we need is to increase the public awareness. It should be emphasised that simple alternations in diet, regular exercise and stress management, which might include yogic practices, can be of great help, a few simple scientific facts which could make a tremendous difference on the incidence of coronary artery disease. They are: 1) Regular walking for 30 to 45 minutes daily, 2) stop smoking and tobacco use 3) alteration in dietary habits (consumption of heart healthy foods) and 4) periodic medical check-up for detection of risk factors of CAD. The 6 strategies deemed effective were: (1) large-scale, intense, highly visible, community-wide campaigns to make people aware; (2) point-of-decision prompts that encourage people to use the stairs instead of elevators or escalators; (3) physical education programs in schools and colleges; (4) social support programs (such as buddy systems and walking groups); (5) individually adapted behavior change programs; and (6) enhanced access to places for physical activity. And all-out efforts should be made to give impetus to indigenous research to enable the fruits of scientific development reach every one.
REFERENCES
1. Blair SN, Kohl HW, Paffenbarger RS Jr, et al. Physical fitness and all-cause mortality. A prospective study of healthy men and women. JAMA 1989;262:2395-401. 2. Canadian Community Health Survey. Ottawa: Statistics Canada; 2002/03. 3. Franklin BA, Swain DP, Shephard RJ. New insights in the prescription of exercise for coronary patients. J Cardiovasc Nurs 2003;18:116-23. 4. Hambrecht R, Niebauer J, Marburger C, et al. Various intensities of leisure time physical activity in patients with coronary artery disease: effects on cardiorespiratory fitness and progression of coronary atherosclerotic lesions. J Am Coll Cardiol 1993;22:468-77. 5. Kearney, P. M., Whelton, M., Reynolds, K., Muntner, P., Whelton, P. K. and He, J.,
Global burden of hypertension: analysis of worldwide data. Lancet, 2005, 365, 217–223. www.zenithresearch.org.in
6. Kohl HW III. Physical activity and cardiovascular disease: evidence for a dose response.
[discussion S493-4]. Med Sci Sports Exerc 2001;33:S472-83.
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7. Mohan, V., Sandeep, S., Deepa, R., Shah, B. and Varghese, C., Epidemiology of type 2 diabetes: Indian scenario. Indian J. Med. Res., 2007, 125, 217–230. 8. Morris JN, Heady JA, Raffle PA, et al. Coronary heart-disease and physical activity of work. Lancet 1953;265:1111-20. 9. Morris JN, Heady JA. Mortality in relation to the physical activity of work: a preliminary note on experience in middle age. Br J Ind Med 1953;10:245-54. 10. Paffenbarger RS Jr, Brand RJ, Sholtz RI, et al. Energy expenditure, cigarette smoking, and blood pressure level as related to death from specific diseases. Am J Epidemiol 1978;108:12-8. 11. Paffenbarger RS, Hale WE. Work activity and coronary heart mortality. N Engl J Med 1975;292:545-50. 12. Pais, P. et al., Risk factors for acute myocardial infarction in Indians: a case-control study. Lancet, 1996, 348, 358–363. 13. Qiao, Q. et al., Age- and sex-specific prevalence of diabetes and impaired glucose regulation in 11 Asian cohorts. Diabetes Care, 2003, 26, 1770–1780. 14. Reddy, K. S. et al., Educational status and cardiovascular risk profile in Indians. Proc. Natl. Acad. Sci. USA, 2007, 104, 16263– 16268. 15. Reddy, K. S., India wakes up to the threat of cardiovascular diseases. J. Am. Coll. Cardiol., 2007, 50, 1370–1372. 16. Reddy, K. S., Naik, N. and Prabhakaran, D., Hypertension in the developing world: a consequence of progress. Curr. Cardiol. Rep., 2006, 8, 399–404. 17. Reddy, K. S., Shah, B., Varghese, C. and Ramadoss, A. Responding to the threat of chronic diseases in India. Lancet, 2005, 366, 1744–1749. 18. S., Roughton, M., Grocott-Mason, R. and Dubrey, S. W., Acute coronary syndromes and their presentation in Asian and Caucasian patients in Britain. Heart, 2007, 93, 183– 188. 19. Sirard JR, Pate RR. Physical activity assessment in children and adolescents. Sports Med 2001;31:439-54. 20. Warburton DE, Gledhill N, Quinney A. Musculoskeletal fitness and health. Can J Appl Physiol 2001;26:217-37. 21. Warburton DE, Gledhill N, Quinney A. The effects of changes in musculoskeletal fitness on health. Can J Appl Physiol 2001;26:161-216. 22. WHO Global Report 2005, Preventing chronic diseases: A vital investment, 2005. 8. Teoh, M., Lalondrelle,
23. WHO India, http://www.whoindia.org/EN/Index.htm (accessed on 23 July 2011). www.zenithresearch.org.in www.zenithresearch.org.in
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ROLE OF LEADERSHIP IN QUALITY
SUNITA CHAUHAN*; DR. BHAVNA AGARWAL**
*Senior Manager, Quality, Singhania University. **Director, Sunderdeep College of Management & Technology, Ghaziabad.
ABSTRACT
Quality is not just about a defect free Product or Service. And Quality is the responsibility of not only the Quality function, but everyone in the organization from peon to the CEO. Quality is also a basic, implied requirement of customers, and can become the differentiating factor and a competitive edge. Customers haggle on price and delivery terms, but never on Quality. However, Quality does not happen on its own. It requires leadership to ensure Quality products and services. It is a leadership challenge to make sure that despite all kinds of constraints and competitive pressures, there is no compromise on Quality, and every person directly or indirectly involved remains focused and does not cut corners. Leadership should set an example of uncompromising focus on quality and not just make right noise, but also walk the talk. Leadership also provides resources, defines quality policy and monitors compliance with the standards set.
KEYWORDS: Quality, Leadership. ______
1. INTRODUCTION
We are living in a highly competitive world. With globalization a reality of life, and world becoming a boundary-less entity, the competition is even more intense. Today products are designed in one country produced in second and sold in several others. Today manufacturing shifts wherever the economy of cost demands. Almost all the electronic goods are produced in China. India is the ITES capital of the world. But with increasing salaries in India, already companies are looking at cheaper countries to shift their base. A result of this competition is an intense pressure on business margins. This translates into pressure on producing cheaper, faster and better goods. While „cheaper‟ and „faster‟ are subject to operational efficiencies and better logistics respectively, „better‟ is a result of internal focus on quality. „Better‟ is a relative term which means continuously improving, always striving to improve and inching towards „best‟. It is like trying to be „zero defect‟, which always remains a theoretical goal. With every cycle of improvement the margin of variation decreases, and ultimately becomes so negligible that we call it zero defect.
Today customers have become wiser. They understand that a „cheap‟ good is ultimately costlier www.zenithresearch.org.in
in the long run. There was a time when Chinese goods were all over the place and had given
indigenous industries a run for the money. But with experience the customers have realized that
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But who is responsible for quality of products or services in an organization? Is it the Quality staff? Is it the processes, policies, production team? Or is it the leadership?
Quality is not just about a defect free Product or Service. It is the whole experience a customer has with the vendor. And Quality is not the responsibility of only Quality function to ensure. Quality is everyone‟s responsibility, which includes people across the length and breadth of the company, starting from peon to the CEO. It sales people, receptionist, security guard, delivery team, support people, partners, vendors and other stakeholders etc. Some entities are directly involved, while others play an indirect or supportive role. Thus, Quality is an all encompassing function.
Present research paper looks at the role of leadership in ensuring quality. Here we look at the various existing Quality models, frameworks and philosophies and assess the role of leadership as defined in these. We also look at the relative importance of leadership within the overall framework of systems and processes to deliver quality products and services.
2. WHAT IS QUALITY?
Quality has been defined differently by different people. Some of these definitions are :
Quality is variability. - Shewart
Quality is predictability. - Deming
Quality is a conformance to requirements. - Crosby
Quality is a fitness for use. - Juran
Quality is the customer's opinion. - Feigenbaum
Quality is a customer perception of the value received for the price paid for the attributes of a product or service as they relate to its fit, form, or function.
The ability of a company to identify their customers' requirements, then meet or exceed their expectations to the mutual benefit and satisfaction of both organizations.
Quality is doing right things right. It is customer orientation, innovation, teamwork, and everyone's responsibility.
Quality is a "system" which produces a product, service, information or delivery, on www.zenithresearch.org.in
target with minimal variance which meet or exceeds the customers needs, now and in the
future.
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Best value for the money
Our customers and competition define our quality status.
When we can keep and acquire new customers / business, that shows an overall picture of how well we are doing with the quality of our products. Comments & Complaints from customers are the measuring system.
Continuously improving upon our practices helps us to stay "in" with the competition.
Quality is in the eyes of the beholder. And in a business environment, the beholder is always the customer or client. In other words, quality is whatever the customer says it is.
Quality is production satisfactory to the customer and making a profit for the manufacturer.
Quality Control is all the means by which the frequency of defects is reduced. It includes quality planning, quality measuring and quality analysis.
A product or service that surpasses all requirements and endeavors beyond expectations.
Quality is meeting customer requirements at lower cost with built in preventive actions in the processes and employee/management involvement ensuring the best product to the customer/end user with JIT delivery.
Exceeding the customer's product or service expectations by delighting them.
All aspects/features of a product (a good or a service) that bears on its ability to satisfy fitness for use, safety, and effectiveness.
That we shall get the right product to the right place at the right time while exceeding our
customers expectations.
Quality refers to the amounts of the unpriced attributes contained in each unit of the priced attribute. (Leffler, 1982)
Quality means best for certain conditions...(a) the actual use and (b) the selling price. (Feigenbaum, 1983)
[Quality] means that the organization's culture is defined by and supports the constant attainment of customer satisfaction through an integrated system of tools, techniques, and training. (Sashkin & Kiser, 1993)
Quality is Job #1. www.zenithresearch.org.in
Quality First.
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Quality, It's a Way of Life.
Quality Is Our Most Important Product.
Quality is a degree of excellence... (Webster)
Quality is the totality of features and characteristics of a product or service that bear on its ability to satisfy given needs. (American Society for Quality)
Quality, an inherent or distinguishing characteristic, a degree or grade of excellence. (American Heritage Dictionary, 1996)
Satisfy or exceed customer expectations at the minimum possible cost.
Quality is to reach the customer needs at low rates (costs) to the company and achieving employee satisfaction.
Quality is an ever evolving perception by the customer of the value provided by a product. It is not a static perception that never changes but a fluid process that changes as a product matures (innovation) and other alternatives (competition) are made available as a basis of comparison.
All those planned and systemic actions required to provide adequate confidence that a product or service will satisfy given requirements
Never having to say you're sorry.
Consistent conformance to customer expectations
Quality is the ongoing process of building and sustaining relationships by assessing, anticipating, and fulfilling stated and implied needs.
Quality is complete satisfaction (Performance, Appearance & Longevity) at the lowest possible cost.
Quality is performance excellence as viewed by all stakeholders.
Quality is meeting the "stated" and "implied" needs of the customer.
It is by Quality a customer can be satisfied, delighted and be retained for mutual benefit.
Face is the index of mind, Quality is the index of a product or service.
Quality is not something extraordinary. It is something ordinary extraordinarily well. www.zenithresearch.org.in www.zenithresearch.org.in
...When who comes back is the client, not the product...
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Looking at the above definitions, certain key elements of „Quality‟ become clear. These are :
- Quality is system driven.
- Quality is about consistently satisfying customers‟ needs.
- Quality is an ongoing process of customer relationship management.
- Quality is a way of life.
Quality is not a one-function or one-step or one-time process. It is ongoing, continuous and across the organization. It starts with the identification of customers‟ stated or implied needs, and consists of continuously striving to satisfy these needs for ever. Theoretically, if an organization keeps offering a product or service which keeps exceeding a customer‟s expectations (low cost, timely, quality product), then the customer would never shift to a competitor. Quality is when what comes back is the customer, not the product.
Quality is system driven. A system is an arrangement of interacting objects, together with relationships between these objects and their attributes. In an organization the system components are the various departments or functions, and the people performing specific tasks. When all these entities work in cohesion, a quality experience ensues for the customer. And the entity that sets this common agenda and provides a context for customer focus, is the leadership. Different functions have their own goals. Finance department is focused on cost cutting. Sales function is focused on getting an order at any cost or delivery terms. Delivery is concerned about delivery on time. Quality is focused on ensuring defect free products. All these are mutually conflicting focus areas. If Finance had their say, there would be budgetary constraints, and only lowest cost suppliers would get orders. If Sales had their say, they would pick up Orders at any cost, just to meet their sales targets. Delivery would be concerned with delivery on time, as that is their key result area. Quality would not allow a product to be shipped until all defects were closed. All these mutually conflicting requirements get resolved only when there is an agreed
common denominator. And this denominator is the Quality Policy defined by the leadership. If any contentious issue comes up, the leaders resolve this keeping in mind the above policy.
Quality is not a one-shot affair. It is about meeting customers‟ requirements first time and every time. Over a period of time, there may be a tendency to get complacent and ignore an existing customer in favor of a new customer. But this can only prove counter-productive. It takes just 30% effort to retain an existing customer than getting a new one. Yet, companies falter on this. This continuing focus on Quality comes when there is regular monitoring and oversight by leadership.
Quality is about building and sustaining a relationship. People buy from people. They buy because they trust what an organization claims about it‟s products and services will do. If the actions are not in sync with this communication, there is a credibility gap and the association www.zenithresearch.org.in disbands. This is also true in our day-to-day life. We prefer making purchases from the
shopkeeper who has better inter-personal skills, than who just fulfils an order. When we engage
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3. WHAT IS LEADERSHIP?
Arieu, A. defines a leader as "a person capable of inspiring and associate others with a dream." It is therefore important that organizations have a mission high transcendent, since it is a powerful way to strengthen the leadership of its directors.
Leadership has been described as the “process of social influence in which one person can enlist the aid and support of others in the accomplishment of a common task”. Alan Keith of Genentech gives a more inclusive definition - "Leadership is ultimately about creating a way for people to contribute to making something extraordinary happen." According to Ken "SKC" Ogbonnia, "effective leadership is the ability to successfully integrate and maximize available resources within the internal and external environment for the attainment of organizational or societal goals."
There are a few more definitions of Leadership :
Leadership is “the behavior of an individual. . . directing the activities of a group toward a shared goal.” (Hemphill & Coons, 1957)
“The servant-leader is servant first…It begins with the natural feeling that one wants to serve, to serve first. Then conscious choice brings one to aspire to lead…” (Greenleaf, 1970)
Leadership is “the process of influencing the activities of an organized group toward goal achievement.” (Rauch & Behling, 1984)
Leadership is “a process of giving purpose (meaningful direction) to collective effort, and causing willing effort to be expended to achieve purpose.” (Jacobs & Jaques, 1990)
“Leadership is about articulating visions, embodying values, and creating the environment within which things can be accomplished.” (Richards & Engle, 1986)
In simple, business terms, Leadership is "organizing resources and motivated group of people and influencing them to achieve a common goal."
4. QUALITY & LEADERSHIP
In a business, the goal is growth and profit maximization. All the resources are put together to ensure the highest returns for the promoters. And this happens when the business keeps growing. Which means it keeps selling more products to more customers in more markets on a continuous
basis. This will happen when four conditions are fulfilled: www.zenithresearch.org.in
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- The price of products is competitive
- The products are sold at competitive price, and
- The products / services are of good quality
- Customer satisfaction remains a focus area
And it is the leadership, which is responsible for the above. Let us focus on the Quality part. No matter how much money and effort is put in making and selling a product, unless it is of good quality, the customer will never come back again for repeat orders. Promotion can ensure the first sale, not repeated sale.
A person who buys a costly product may feel the pinch on the pocket once, but the extra money pays itself back manifold. And customers have come to realize this, and that is the reason why Chinese products are not selling like they used to earlier, as the quality is suspect, and there is no warranty or after-sales service. And it is the same reason why we buy products from certain companies which have build a reputation of Quality, like Sony. Thus, Quality is an important criteria while buying a product.
Quality cannot be tested into a product. Unlike earlier times, Quality is not a pass/fail/rework function. Quality is part of the process, where at every stage from getting an order to providing post-sale support, it is involved. Today „Quality‟ is involved in all functions and processes of an organization :
- Pre-Sales
- Sales
- Manufacturing
- Inventory
- HR
- Finance
- Support
- Logistics
- Maintenance etc.
Quality involves : www.zenithresearch.org.in www.zenithresearch.org.in
- Process definition for all functions
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- Training people on processes
- Process Deployment
- Regular process compliance audits
- Continuous improvement of processes
- Product testing
- Monitoring of Service Levels
Thus Quality is all-encompassing, process-driven entity. It covers all departments and functions. But it also remains a fact that Process approach means an extra 20 – 25% effort. When people have to follow a process, they find excuses and reasons why it does not apply to them, and why their case is different. Quality is good for others, not for them. And it is in such instances, where the role of leadership comes into play. If leaders allow waiver of a process on flimsy reasons, it leads to many more seeking such waivers. If non-compliance becomes a practice with no penalty, the whole focus on Quality goes for a toss.
Quality is a cultural issue. It is not one function doing something in a corner. It is a way of life. It is the focus and respect an organization gives to the process framework which leads to continuously improving, quality products. He leaders are responsible for culture creation. They set the Vision, and the values which are the guiding post for any organization. If „building Quality products‟ is a value, it should get enshrined in the culture of the organization. People should implicitly follow it in letter and spirit.
Various Quality models and frameworks have realized the importance of Leadership in „enforcing‟ Quality. In fact, „Top Management Commitment‟ is the starting point of any Quality improvement framework, as without management‟s support, encouragement and persistence, no one would like to spend that extra effort to make a defect free product or make that customer happy. Some of the famous and widely prevalent Quality Frameworks and Models and the
reference to leadership in these are explained in the table below.
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S. Model Clause No.
Top management must determine the direction of the organization in addition to its quality policy and quality objectives.
•Communication. Top management must ensure that the quality policy 1. ISO 9001 and objectives are well communicated and understood at all levels of the organization.
•Review of company performance. Top management must regularly review the continuing adequacy of the management quality system.
•Review of company‟s resources. Top management must ensure the availability of the resources needed for achieving quality objectives.
• Providing evidence of commitment, including the importance of fulfilling requirements and provisions (ISO 5.1) • Determining customer requirements and enhancing customer satisfaction (ISO 5.2) • Ensuring that quality policy includes commitment to meet requirements and continuous improvement (ISO 5.3) • Establishing measurable quality objectives (ISO 5.4) • Communicating the state of effectiveness of the quality management system (ISO 5.5.3) • Conducting a management review of quality man- agement system (ISO 5.6) • Involvement in continuous improvement (ISO 8.5.1)
Leadership is one of the nine assessment criteria across all KPIs.
2. SW CMMI The role of the leader is at the heart of CMMI-based process
improvement. Proactive leadership is the most critical element of any implementation. Bottom-up change is too unpredictable. Organizational change must be designed, implemented as a mission-critical project and led from the top for the following reasons:
* Competing alternative solutions result in piecewise efforts instead of integrated effort.
* Resources must be committed and dedicated to the process- improvement effort.
* Leaders must establish a mentoring environment for process www.zenithresearch.org.in www.zenithresearch.org.in
improvement, reward process improvement efforts and discourage
resisters to process improvement.
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The leadership category is valued at 110 points (out of a possible 1,000) and is assessed via two items: Malcolm Baldridge * 1.1 Leadership System (80 points) 3. National * 1.2 Company Responsibility and Citizenship (30 points) Quality Award The first of these two items deals with "how senior leaders guide the (MBNQ) company in setting directions and in developing and sustaining effective leadership throughout the organization."
The second of these items addresses both societal responsibilities and community involvement. The issues to be addressed are "how the company addresses its responsibilities to the public and how the company practices good leadership."
The leadership category examines the company's leadership system and senior leader's personal leadership. It examines how senior leaders and the leadership system address values, company directions, performance expectations, a focus on customers and other stakeholders, learning and innovation. Also examined is how the company addresses its societal responsibilities and provides support to key communities.
Leadership is considered an enabler and is valued at 100 points out of a possible 1,000. It defines leadership as, "How the behavior and actions of the executive team and all other leaders inspire, support and promote a culture of total quality management (TQM)." 4. European Quality Award The award's self-assessment criteria indicate that four key areas must be addressed: * How leaders visibly demonstrate their commitment to a culture of TQM. * How leaders support improvement and involvement by providing appropriate resources and assistance. * How leaders are involved with customers, suppliers, and other external organizations. * How leaders recognize and appreciate people's efforts and achievements.
Australian Quality Award leadership criteria allocate 140 points out of a possible 1,000 to: * Senior executive leadership (60 points). * Leadership throughout the organization (40 points). 5. Australian * Leadership in the community (40 points). Quality Award These criteria cover the values of the organization, including behaviors
that it wishes to establish in its relationships. Moreover, the leadership www.zenithresearch.org.in category of this award examines the role of management in creating
values and developing an appropriate management system to make those
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values a reality. The category further examines how the management system creates an environment for learning and continual improvement as well as the involvement of employees at all levels in achieving the organization's goals.
The criteria of the Japan Quality Award allocate 150 of 1,000 total points to leadership with those points distributed as: Japanese Quality Award * Leadership system and organization (100 points). 6. * Public responsibility and corporate citizenship (50 points). According to the award's criteria, this category "examines how senior executives determine the company's future direction to become a 21st century company from the viewpoint of public responsibility and customer focus." This category also examines how senior executives convey the company direction to all company units.
The European Foundation for Quality Management (EFQM) integral quality management model covers nine issues: five so-called enabler 7. EFQM criteria and four so-called result-oriented criteria. The first enabler criterion concerns leadership and covers all kind of strategic management aspects. However, directly or indirectly, the leadership of the board of directors or its individual members is characterized and scored.
When organizations decide to deploy a Six Sigma initiative, there are several foundation stones required for a successful venture. One of those 8. Six Sigma building blocks is leadership. From executive-level support to assigning champions and choosing the right projects, leadership is critical for Six Sigma success.
The responsibility for deploying Six Sigma lies with Champions, Sponsors, Master Black-Belt (MBB), Black Belt experts. Six Sigma focuses on Customer focused projects which lead to breakthrough improvements. These are costly affairs with continuous top management oversight and active support.
The assessment for large scale organization will be made on the basis of nine parameters, namely, Leadership; Policies, Objectives and strategies; 9. Rajiv Gandhi Human resource management; Resources; Processes; Customer focused results; Employees‟ satisfaction, Impact on environment and society; and Business results.
The assessment for small scale organization will be made on the basis of www.zenithresearch.org.in www.zenithresearch.org.in
six parameters, namely, Leadership; Human resource management;
Processes; Customer focused results; Impact on environment and society;
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and Business results.
Deming wants management to be leaders not merely supervisors.
10. Deming The problem on most projects is not a lack of management but a lack of leadership. Leadership is more about people skills than about project management skills. Few projects have sponsors that view themselves as the leader on the project, and if the leadership charge is not picked up by the project manager then the project is not likely to be successful. A leader translates the project's vision into actions that excite, inspire, and motivate the project team, and he or she is able to instill a perception that the project isn't just creating a deliverable; it's accomplishing something phenomenal for the customer.
5. CONCLUSION
Leadership should set an example of uncompromising focus on quality and not just make right noise, but also walk the talk. Leadership provides resources, defines quality policy and monitors compliance with the standards set. The leadership could be transformational or transactional.
If an organization has to strive for business excellence, it must start with the right leaders who are passionate about creating a culture of Quality. Only Quality leads to Business Excellence which leads to prosperity and longevity.
6. REFERENCES
- CMMI Model
- EFQM criteria
- ISO 9001:2010
- MBNQ Criteria
- European Quality Award criteria
- Australian Quality Award criteria
- Japanese Quality Award criteria
- Dr. Deming‟s 14 Points
- Six Sigma
- Rajiv Gandhi National Quality Award Criteria www.zenithresearch.org.in
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EMOTIONAL INTELLIGENCE LEADS TO CONTINUOUS LEARNING FOR HIGH JOB PERFORMANCE AND CAREER COMMITMENT
DR. J. VENKATESH*; MR. D. BALAJI**
*Associate Professor, School of Management Studies, Anna University of Technology Coimbatore, Jothipuram Post, Coimbatore – 641047, Tamil Nadu, India. **Full Time Ph.D Research Scholar, School of Management Studies, Anna University of Technology Coimbatore, Jothipuram Post, Coimbatore - 641047. Tamil Nadu, India.
ABSTRACT
This paper aims to demonstrate the utility of using some indication of emotional intelligence (EI) to identify high potential and career committed in managers who enhance continuous learning. The internal and external influences interacting with every individual’s state of mind causes a complex “Psychophysiological Experience” called Emotions. Effective and efficient ways of handling emotions with respect to an environment, situation and people is EI. The well being of an employee is enhanced only managing their emotions constructively. The management of emotions both intra-personally and inter-personally develops and sustains a better environment within every individual and also to the organizational environment. Independence, flexibility, assertiveness, optimism and social responsibility emerge to be “covert” high-potential identification criteria, segregating high potentials and regular managers. Additionally, high potentials exhibit higher levels of job performance and, evidently, less boundaryless career attitudes. Using emotional intelligence and identifying high potential may well contribute to the validity of such processes. Furthermore, the importance of cultivating positive emotions at work is spelled out in relation to high-potential identification and development policies and retention management resulting in career committed and job performance.
KEYWORDS: Emotional intelligence, Career commitment, Job performance.
______
1. INTRODUCTION
The business environment driven by human capital, knowing which persona to appear for in prospective leaders is undoubtedly a key competitive advantage is rapidly changing (Buckingham and Vosburgh, 2001). Proficiency frameworks, designed to meet this need – and to some extent, suitable instruments for doing so (Bournois and Rousillon, 1998; Briscoe and Hall, 1999; Quinn et al., 1990) – might suffer from (predictive) validity issues if they originate from a selection perspective alone (McCall, 1998). In this view, employees either “have it or not”, implying that young talent should be able to demonstrate competencies similar to those of successful executives, be it in a seminal form. As such “talent detection” competencies are based on past successes rather than on future challenges, their value for early high-potential www.zenithresearch.org.in identification may however be limited (Briscoe and Hall, 1999; Spreitzer et al., 1997).
Alternatively, Spreitzer et al. (1997) argue for taking a development perspective to high-potential
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2. EMOTIONAL INTELLIGENCE
Guest and Conway (2004) define wellbeing in terms of six constructs including: a manageable workload; personal control over the job; support from colleagues and supervisors; positive relationships at work; a reasonably clear role and a sense of control of involvement in changes in the organization. These parameters of well beings are possible, only by the unique sense of emotional intelligence. There are intra-personal and inter-personal competencies of EI, which predominantly explain the notion of well being, both to oneself and to the social environment. In some cases, wellbeing is also defined in terms of strain. Strain is defined as psychological, physical or behavioral responses to stressors (Le Fevre et al., 2003). Several stressors influence the wellbeing level in a workplace. The term stressor is used to indicate job or organizational conditions that require adaptive responses from employees (Jex, 1998). If an employee’s response to a stressor is either neutral or even positive then it is not considered as a strain (Cooper and Quick, 1999). The negative impact of strain upon an employee’s efficiency, effectiveness, satisfaction and performance are well-documented. Amongst other outcomes, strain is manifested in the form of job dissatisfaction, anxiety, depressed mood, headache, coronary heart disease, absenteeism, poor performance and turnover (Jex, 1998; Cooper et al., 2001), which are again the outcome of emotional fatigue. And from this the clear indication is revealed that the roots of negative outcomes are due to emotional influence causing imbalance.
A number of researches are enhanced investigating well being of employees including top performing leaders and leadership traits in relation to EI. Many authors (Gardner, 1999; Goleman et al., 2002; Kouzes and Posner, 1995; Wheatley, 1999) recognize the necessary shift from old-school management to true leadership. They describe traditional management as promoting methodical, detached, micro-managing supervisors who have extreme control over an employees’ every step and actively separate any emotion from the workplace, similar to the transactional style of leadership. When these same authors turn to describe successful leadership traits, their descriptions portray leaders who are aware and have an understanding of their own and other’s emotions, and are able to use that understanding to effectively motivate, inspire, challenge, and connect with others, an approach aligned with the transformational style of leadership. In Kouzes and Posner’s (1995) qualitative illustration of leader’s proudest moments, leader reflections were described in terms of feelings, emotions, and challenges. These authors offer that transformational leadership traits and experiences such as these are more highly
correlated with employee satisfaction and performance effectiveness than are transactional traits. www.zenithresearch.org.in www.zenithresearch.org.in
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3. EMOTIONAL INTELLIGENCE AND CONTINUOUS LEARNING
Prominently, it appears that the multidimensional construct of emotional intelligence as defined by Bar-On (1997) – frequently referred to as trait EI or the EI Personal Factors Model (Dulewicz and Higgs, 2004) – describes the attributes individuals need to be able to engage in such continuous and generative learning. According to Bar-On (1997), emotional intelligence (EI) is “an array of non-cognitive capabilities, competencies and skills that influence one’s ability to succeed in coping with environmental demands and pressures” (p. 14). The author defines five factors of EI, which he believes contribute to success in life: intrapersonal functioning (self- awareness and self-expression), interpersonal skills (social awareness and interpersonal relationships), adaptability (change management), stress management (emotional management and regulation) and general mood (self-motivation) (Bar-On, 1997; Bar-On, 2005).
The idea that emotional intelligence may underlie certain practical skills is not new. Some previous studies have focused on the link between EI and emotional competency (Boyatzis et al., 2000; Goleman, 2001), a concept that was implemented by a set of 20 competencies. Conversely, Briscoe and Hall (1999) describe no more than two meta-competencies: adaptability learning (the ability to react to change through learning) and identity learning (the ability to self-reflect and assimilate what is learned). It is stated that, possible correspondences are possible between the meta-competency model and the EI Personal Factors Model. Bar-On’s (2005) description of the skills and competencies assessed by each scale of the EQ-i (Emotional Quotient Inventory) proved useful for matching his EI scales (1997) to the behavioral descriptions of Briscoe and Hall’s metacompetencies (1999). However, the correspondences are believed to demonstrate the probability of a connection between emotional intelligence (as measured by the EQ-i) and the potential for continuous learning. The current study explores the “potential” of the EI Personal Factors Model for predicting high potential in employees. Spreitzer et al. (1997) observed: “Though the literature has provided evidence that job experiences can be a stimulus for learning, it has also suggested that not all people learn equally well from the same kinds of experiences. As such, the identification of executive potential would likely be enhanced through knowledge of the variation in people’s ability to acquire needed skills, that is, their ability to learn from experience.” (p. 9). This paper connotes, that high potentials are those with high levels of
emotional intelligence – and consequently, of learning agility (Lombardo and Eichinger, 2000).
4. LINKING PERFORMANCE, COMMITMENT AND HIGH-POTENTIAL STATUS TO EI
In addition to examining the EI-high potential link, this paper will look into the (frequently reported) relationships between job performance, career commitment, the EI Personal Factors Model and high-potential status (i.e. the binomial variable high potential/non-high potential). Empirical research on individual job performance (Coˆte´ and Miners, 2006; Daus and Ashkanasy, 2005; Goleman, 1998a; 1998b; Rosete and Ciarrochi, 2005; Van Rooy et al., 2005) as well as group or team performance (Daus and Ashkanasy, 2005; Jordan and Troth, 2004; Offerman et al., 2004) and even organizational performance (Goleman, 1998a; McClelland,
1998; Williams, 1994) has uncovered that these variables are all positively related to emotional www.zenithresearch.org.in www.zenithresearch.org.in
intelligence. In addition, amongst the criteria used for identifying high potential in organizations, job performance is probably the pivotal one. An employee, who does not consistently receive
“exceed expectations” performance ratings, is very unlikely to be considered for entering any
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5. THE ROLES OF JOB PERFORMANCE AND CAREER COMMITMENT
High potentials were found to rate their own performance significantly higher than regular managers did, at lower as well as at higher managerial levels. Much can be said about having survey participants rate their own performance; however, these findings do raise some interesting questions. First of all, if social desirability or self-enhancement bias really plays such a big part in self-report performance ratings (Campbell and Lee, 1988), why would managers, then, rate their performance significantly lower than high potentials? There is no apparent reason why self- enhancement bias would affect high potentials more than managers. It seems more plausible that the self-reported performance ratings in this study are either a proxy of objective data available to employees (such as the feedback they get during a performance appraisal process), or a reflection of the perceptions the study participants have of themselves owing to their knowledge of their HP status. Another angle from which to look at these findings is based on cognitive dissonance theory (Festinger, 1957). As it is commonly known that job performance is the “overriding” high-potential identification criterion (Cope, 1998; Pepermans et al., 2003; Quinn, 1988), employees might use information on HP status to infer how well they perform compared to peers.
With regard to the relationship between EI and performance, results indicated that reality testing, optimism and emotional self-awareness make up a significant model. The less realistic and the more optimistic, it appears the higher one’s job performance rating. Reasons for this may be twofold: first, it is possible that “unrealistic optimists” overrate their own performance when asked to self-report on it; second, it may well be that these attributes enable them to “think outside the box” and come up with creative, innovative solutions that their more conservative peers would never have considered (Rottinghaus et al., 2005; Schneider, 2001). Such innovative ideas would be much valued in today’s business environment and result in higher performance ratings (Luthans and Youssef, 2004). Finally, higher emotional self-awareness might lead to
higher self-reported performance ratings as employees who are aware of their own strengths and www.zenithresearch.org.in
weaknesses might benefit from this knowledge to “market” themselves as high performers –
acting on their strengths and drawing attention away from their weaknesses (Spreitzer et al.,
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1997). Career commitment does not strongly impact self-reported job performance; only at item level, higher performance rates were found in those participants who gave low ratings to “If I could get another job and be paid the same amount, I would probably take it” and “If I could do it all over again, I would not choose to work in this profession”. It seems that those who have once made a very conscious choice for the current profession, report the highest performance ratings, a finding that makes obvious sense (Aryee et al., 1994; Bashaw and Grant, 1994).
In the current study, all subscales of the EQ-i, except for those in the adaptability scale are significantly related to the career commitment scale. Furthermore, high potentials differ from managers in this respect for the item “If I could get another job and be paid the same amount, I would probably take it”, which they rated lower than managers did. Some reference to the literature on boundaryless and protean careers seems relevant here. High potentials seem to experience protean, but not as such boundaryless careers. Briscoe et al. (2006) argue that protean and boundaryless careers are independent but related constructs: people can display protean attitudes but not prefer cross-boundary collaboration and vice versa. They found that being protean and boundaryless in terms of career attitudes is not synonymous with job mobility preference (as it is often depicted in literature) and that, consequently, mobility should not be used as the primary proxy for either boundaryless or protean career attitudes or outcomes. The possibility of a connection between career commitment and traditional (non-boundaryless) career attitudes is supported by the fact that the EI subscales within the adaptability scale are those that would, logically, be expected to relate most to boundaryless career attitudes.
6. CONCLUSION
This study enhanced concepts identification and evaluation to propose a statement that emotional intelligence (as conceptualized by Bar-On, 1997) identifies high potential among managers contributing uniquely towards validity of success concerning organizational processes by high continuous learning and job performance. Additionally, assertiveness, independence, optimism and flexibility are attributes that high potentials managers possess enhanced by emotional intelligence concerning respective activities in organizations. The EQ-i will help organizations and individuals alike assess the potential they have for continuous learning in a very simple manner. If nothing more, the EI profiles that emerge can provide valuable input into the high- potential identification process as well as into individuals’ personal development plans for better job performances. Many organizations do have competencies labeled independence or flexibility in their competency models. Although an excellent performance is and should be a prerequisite for being identified as having high potential, organizations must beware of Halo effects in their performance appraisal processes, causing assessors to align potentiality ratings with performance ratings (Fields, 2002). Organizations need to be proactive in this respect, making sure that high potentials do not get isolated in the beginning of their careers, fostering individualistic and competitive mindsets that will be difficult to “unlearn” later. Furthermore, in light of retention management, paying sufficient attention to employees’ emotional states (e.g. happiness, frustration) will benefit organizations more than focusing on compensation and benefits. The relevance of cultivating positive emotions at work is further supported by the finding that
optimism and reality testing show a significant relationship with individual job performance with www.zenithresearch.org.in
high potentiality accomplishing career commitment.
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REFERENCES
Takeuchi, R., Tesluk, P., Yun, S. and Lepak, D. (2005), “An integrative view of international experiences: an empirical examination”, Academy of Management Journal, Vol. 48, pp. 85-100.
Tarique, I. and Takeuchi, R. (2008), “Developing cultural intelligence: the role of international non-work experiences, in”, in Ang, S. and Van Dyne, L. (Eds), Handbook of Cultural Intelligence, M.E. Sharpe, Armonk, NY.
Templer, K.J., Tay, C. and Chandrasekar, N.A. (2006), “Motivational cultural intelligence, realistic job preview, realistic living conditions preview, and cross-cultural adjustment”, Group and Organization Management,, Vol. 31 No. 1, pp. 154-73.
Thomas, D.C. (2006), “Domain and development of cultural intelligence: the importance of mindfulness”, Group & Organization Management, Vol. 31 No. 1, pp. 78-9.
Thomas, D.C. and Inkson, K. (2004), Cultural Intelligence: People Skills for Global Business, Berrett-Koehler, San Francisco, CA.
Thorndike, R.L. and Stein, S. (1937), “An evaluation of the attempts to measure social intelligence”, Psychological Bulletin, Vol. 34, pp. 275-85.
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SEQUENCING BATCH REACTOR FOR GREYWATER TREATMENT
PROF. J.S.MAIN*; BHARAT C. INGAVALE**
*Professor, Department of Civil & Environmental Engineering, Veermata Jijabai Technological Institute, Mumbai - 400019, (M.S.) ,India. **Assistant Professor, Department of Environmental Engineering, KIT,s College of Engineering, Kolhapur - 416234 (M.S.), India.
ABSTRACT
Greywater is less polluted wastewater which represents 60 to 70 % of the domestic water use. Over 50% of the water demand for domestic activities can be met by treated greywater than fully treated water; including applications such as toilet flushing, gardening and car washing etc. Greywater recycling & reuse is an effective and economical way of solving water scarcity.
This study was conducted with the objective to examine the applicability of Sequencing Batch Reactor (SBR) technology for the treatment of greywater for various reuse purpose. In this study a Laboratory scale single tank SBR unit (total volume of 23 lit and a working volume of 18 lit (30.5 x.30.5 x 19.3 cm) was used to determine the Operational Cycle Time at which the optimum removal of organic matter occurred. Volume exchange ratio was kept 30 % , thus the batch volume of greywater treated was 5.4 lit. The work was divided into two phases. As SBR process is derived from an Activated Sludge Process (HRT 4 to 8 hours), in the first phase of study the SBR unit was operated for cycle time 5, 6, 7 and 8 hours to obtain optimum BOD removal efficiency in order to save space as well as energy. The optimum BOD removal efficiency was observed for 7 hour cycle (94.69%). Hence 7 hour cycle was considered as optimum cycle for treatment of greywater.
The second phase of study was carried out in order to optimise the cycle time obtained in
the first phase (7 hour cycle). The second phase study conducted with four different fill : react ratios. The fill time was fixed as per 7 hour cycle (105 minutes) and the react time is varied with ratios 1:1, 1:1.2, 1:1.4, 1:1.6 and 1:1.8. The optimum BOD removal efficiency (94.57%) was observed for 2nd ratio that is 1: 1.2. The react time for 2nd ratio was 126 minutes as compared to react time of 7 hour cycle (147 minutes). Hence the second phase of study resulted in the determination of optimum reaction time which in turn reduces the time as well as energy consumption with optimum BOD removal efficiency of 94.57 %. The optimum cycle time was determined as 399 minutes comprising Fill time: 105 minutes, React time: 126 minutes, Settle time: 84 minutes, Draw time: 63 minutes and Idle time: 21 minutes. It has been conclusively shown that the SBR process was successful in the removal of organic matter from greywater.
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KEYWORDS: Greywater, Recycle & reuse, Sequencing Batch Reactor. www.zenithresearch.org.in
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1. INTRODUCTION
The problem of water availability is becoming acute day-by-day because of limitation of natural water resources. Ongoing droughts and global climate change accentuate this worldwide situation and specifically in the arid and semiarid regions. Factors like rapid industrialization, urbanization, increasing living standards and major factor of increasing population cause constant pressure on water supply systems. The needs for water of a growing population go hand in hand with an increasing living standard, while at the same time the increased demand must not overexploit the valuable resource itself. Therefore the sustainable water management approach with its possibilities like onsite treatment, water segregation and reuse is desirable and necessary in order to meet these new challenges.
Greywater is less polluted wastewater that originates from bathrooms, washbasins and kitchen without any input from toilets. In developed countries water for domestic use is in a range of 100 to 150 LPCD and greywater represents 60 to 70% of this amount. Over 50% of the water demand for domestic activities can be met by water of lower quality than fully treated water; including applications such as process water, toilet flushing, garden water and car washing. Substituting low quality water for non-potable purpose to preserve limited high quality water resources is highly efficient and practical, especially in regions with limited renewable fresh water resources. Quantities of greywater are rapidly being considered as another source of water after adequate treatment.
Several biological processes, including Rotating Biological Contactor (RBC), Sequencing Batch reactor (SBR), Constructed Wetland (CW), Membrane Bioreactors (MBR) and Upflow-Downflow filter have been applied for grey water treatment.
The Sequencing Batch Reactor (SBR) is a cyclic fill and draw system that performs equalization, biological treatment and secondary clarification in a single tank using a time control sequence. It is one of the preferred technologies for the removal of conventional parameters in small communities due to low cost and simple operation. It also offers a great flexibility of operation for effective nutrient removal. The operation of SBR consists of five basic steps in sequence: fill, react, settle, draw and idle. More than one operational strategy is possible during most of these phases. The SBR has been reported to be a new technology for greywater treatment. It is effective, economical, flexible and offers easier operational control. The SBR technology has also proven to be an excellent alternative for
municipal sewage plants.
2. MATERIALS AND METHODS
2.1 WASTEWATER
The greywater was collected from the VJTI Hostel ‘C’ originating from bathrooms and washbasins only. It was be analysed for pH, Total Suspended Solids (TSS), Total Solids (TS), Chemical Oxygen Demand (COD), Biochemical Oxygen Demand (BOD), Chlorides according to Standard Methods.
2.2 SYSTEM CONFIGURATION
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The reactor was fabricated of transparent Acrylic sheets with square cross sectional area & total volume of 23 lit and a working volume of 18 lit (30.5 x.30.5 x 19.3 cm). The outlet
pipe was fixed at height of 13.5 cm so that the volume exchange ratio was 30 % of the
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FIGURE 1: SCHEMATIC DIAGRAM OF SINGLE TANK SEQUENCING BATCH REACTOR MODEL
Aeration & mixing was provided by means of compressor that is diffused aeration (rate of 10 to 15 lit/min) Figure 1 shows the schematic diagram of SBR reactor.
2.3 START UP OF SBR
The activated sludge, obtained from a Sewage Treatment Plant at Airoli, Navi Mumbai was inoculated in the reactor, seven days prior to start. The mixed liquor suspended solids (MLSS) concentrations were maintained at 2000 t4000 mg/l. The SBR system worked at one cycle per day. A Sludge Retention Time (SRT) was fixed to10 days to limit sludge production in the system.
2.4 METHODOLOGY
SBR process is variant of an Activated Sludge Process (HRT 4 to 8 Hrs), conducting all the operations in single tank (Equalization, Reaction & Settling). Hence the Cycle times for the SBR in first phase of study were decided as 5, 6, 7 and 8 hours in order to save the space & power.
Thus in first phase of study, Sequencing Batch Reactor was operated in five steps viz Fill, React, Settle, Draw and Idle for four different durations viz 5, 6, 7 and 8 hours. The time distribution for each step that is Fill, React, Settle, Draw and Idle for each duration of time (5, 6, 7, 8 hours) is given in following Table 2.1. Each cycle was operated for five numbers
of times to compare the removal efficiency of each cycle. The cycle time having optimum www.zenithresearch.org.in www.zenithresearch.org.in
BOD removal efficiency was considered as optimum cycle time for the first phase of www.zenithresearch.org.in study.(7 Hr Cycle) The following table shows the time distribution for Fill, React, Settle,
Draw and Idle for 5, 6, 7 and 8 hours durations.
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TABLE 2.1: TIME DISTRIBUTION FOR SEQUENCING BATCH REACTOR OPERATION
Sr. No Step Time (minutes)
5 Hr Cycle 6 Hr Cycle 7 Hr Cycle 8 Hr Cycle
1. Fill (25 %) 75 90 105 120
2. React (35 %) 105 126 147 168
3. Settle (20 %) 60 72 84 96
4. Draw (15 %) 45 54 63 72
5. Idle (5 %) 15 18 21 24
Total (100 %) 300 360 420 480
The second phase of study was carried out in order to improve the optimum cycle time which was found out in the first phase of study (Optimum Cycle Time = 7 Hr cycle). In second phase of study, greywater was treated with different Fill: React ratios. The fill time was the same as for the Optimum Cycle in the first phase of study. The React time will be varied with the different ratios (1:1, 1:1.2, 1:1.4, 1:1.6 and 1:1.8). For each ratio five numbers of cycles were run to treat the greywater. Among these, the optimum ratio was decided based on the optimum BOD removal efficiency. The Table 2.2 shows time distribution for different fill : react ratios for the operation of Sequencing Batch Reactor in second phase of study.
TABLE 2.2: TIME DISTRIBUTION FOR SEQUENCING BATCH REACTOR FOR DIFFERENT FILL : REACT RATIOS
Fill Time : React Time
Sr. No Step 1:1 1:1.2 1:1.4 1:1.6 1:1.8
st nd rd th
(1 ratio) (2 ratio) (7 Hr (3 ratio) (4 ratio) Cycle)
1. Fill 105 105 105 105 105
2. React 105 126 147 168 189
3. Settle 84 84 84 84 84
4. Draw 63 63 63 63 63
5. Idle 21 21 21 21 21
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Total 378 399 420 441 462
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3. RESULTS & DISCUSSIONS
3.1 GREYWATER CHARACTERISTICS
The greywater was analysed for pH, Total Suspended Solids (TSS), Total Solids (TS), Chemical Oxygen Demand (COD), Biochemical Oxygen Demand (BOD), Chlorides according to Standard Methods. The average characteristics of greywater analysed for the study are given in Table 3.1.
TABLE 3.1: CHARACTERISTICS OF GREYWATER FROM VJTI HOSTEL ‘C’
Parameter Unit Min Max Average
pH - 7.0 7.5 7.3
TSS mg/l 160 450 283.4
TS mg/l 426.7 660 497.2
COD mg/l 313.7 568 374.8
BOD5 mg/l 125 313.7 188.3
Chlorides mg/l 42 72 53.2
3.2 PHASE 1 DETERMINATION OF OPTIMUM CYCLE TIME
In first phase the SBR performance was analysed for pH, TS, TSS, COD, BOD5, Chlorides with 5, 6, 7 & 8 Hr cycles. BOD removal efficiency for 7 Hr cycle is 94.69 % & that for 8 Hr cycle is 94.70 % which are almost equivalent. Similarly, COD removal for 7 Hr cycle is 83.97 % & that for 8 Hr cycle is 84.98 %. Suspended Solids removal for 7 Hr is 89.43 % & that for 8 Hr cycle is 89.75 %. Total Solids removal for 7 Hr cycle is 64.10 % & that for 8 Hr cycle is 65.90 %. Average pH value for 7 Hr cycle is 7.9 & that for 8 Hr cycle is 8.1.
As the removal efficiency for 7 Hr cycle & 8 Hr cycle are closely spaced, it was
considered that the optimum cycle for greywater treatment is 7 Hr cycle.
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100 95 90 85 80 75 5 Hr Cycle 70
% Removal % 6 Hr Cycle 65 7 Hr Cycle 60 8 Hr Cycle 55 50 45 40 TSS 1 2 3 4 5 No of days
FIGURE 3.1: GRAPH OF TSS REMOVAL EFFICIENCY VS NO OF DAYS IN FIRST PHASE
90
85
80
75
70 5 Hr Cycle 65
6 Hr Cycle
% Removal % 60 7 Hr Cycle 55 8 Hr Cycle 50
45
40 TS 1 2 3 4 5 No of days
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FIGURE 4.2: GRAPH OF TS REMOVAL EFFICIENCY VS NO OF DAYS IN
FIRST PHASE
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100 95 90 85 80 75 5 Hr 70 Cycle 65 6 Hr 60 Cycle 7 Hr % Removal % 55 Cycle 50 8 Hr 45 Cycle 40 35 30 1 2 3 4 5 COD No of days
FIGURE 4.3: GRAPH OF COD REMOVAL EFFICIENCY VS NO OF DAYS IN FIRST PHASE
100
95
90
85
80 5 Hr Cycle
6 Hr Cycle 75 % Removal % 7 Hr Cycle 70 8 Hr Cycle
65
60 1 2 3 4 5 BOD
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FIGURE 4.4: GRAPH OF BOD REMOVAL EFFICIENCY VS NO OF DAYS IN
FIRST PHASE
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TABLE 4.2: 5 HR CYCLE OBSERVATIONS
17-02-10 18-02-10 19-02-10 20-02-10 21-02-10 Averag Date Average e Average Untreate Treate Untreate Treate Untreate Treate Untreate Treate Untreate Treate Untreate Paramet Treated % er d d d d d d d d d d d Removal
7.0 7.5 7.5 7.5 7.5 7.5 7.5 8.5 7.5 8.5 pH 7.4 7.9
420 100 340 120 400 140 160 80 380 80 TSS 340 104 69.41
600 240 570 220 650 320 550 230 470 250
TS 568 252 55.63
347.5 138 327 202 435 142 472.5 153 568 140 COD 430.2 155.1 63.94
230 75 227.5 73.6 195.7 35 210 71 215.6 56 BOD 215.8 62 71.20
Chloride 55 40 58 45 65 48 55 46 72 52
s 61 46.2 24.26 www.zenithresearch.org.in www.zenithresearch.org.in
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TABLE 4.3: 6 HR CYCLE OBSERVATIONS
23-02-10 24-02-10 25-02-10 26-02-10 27-02-10 Averag Date Average e Average Untreate Treate Untreate Treate Untreate Treate Untreate Treate Untreate Treate Untreate Paramet Treated % er d d d d d d d d d d d Removal
7.0 8.5 7.0 7.5 7.5 7.5 7.5 7.5 7.5 7.0 pH 7.3 7.6
450 70 410 60 240 40 200 30 440 70 TSS 348 54 84.48
580 200 640 270 530 230 470 180 450 210
TS 534 218 59.17
435.5 124 563 58 413.5 65 356 57.8 340 98 COD 421.6 80.56 80.89
149 11 266.7 17.3 153.8 15.5 267.5 32 BOD 278.5 40 223 23 89.62
Chloride 45 33 60 45 55 40 65 45 55 50
s 56 42.6 23.92 www.zenithresearch.org.in www.zenithresearch.org.in
(All Parameters are in mg/l except pH). www.zenithresearch.org.in
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TABLE 4.4: 7 HR CYCLE OBSERVATIONS
28-02-10 01-03-10 02-03-10 03-03-10 04-03-10 Averag Date Average e Average
Paramet Untreate Treate Untreate Treate Untreate Treate Untreate Treate Untreate Treate Untreate % er d d d d d d d d d d d Treated Removal
7.5 7.5 7.5 7.5 7.0 7.5 7.5 8.5 7.0 8.5 pH 7.3 7.9
280 30 400 40 260 30 230 20 250 30 TSS 284 30 89.43
432.5 180 660 220 426.7 150 450 190 510 150
TS 495.8 178 64.10
350.4 60.3 415 63.5 365.5 54.8 313.7 65.4 376 47.8 COD 364 58.36 83.97
190 13.5 150 6.3 125 10.3 215.8 9.4 213 7.94 BOD 178.8 9.48 94.69
Chloride 55 40 43 30 52 30 60 45 48 42
s 51.6 37.4 27.51 www.zenithresearch.org.in www.zenithresearch.org.in
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TABLE 4.5: 8 HR CYCLE OBSERVATIONS
05-03-10 06-03-10 07-03-10 08-03-10 09-03-10 Averag Date Average e Average Untreate Treate Untreate Treate Untreate Treate Untreate Treate Untreate Treate Untreate Paramet Treated % er d d d d d d d d d d d Removal
7.5 7.5 7.5 8.5 7 7.5 7.5 8.5 7.5 8.5 pH 7.4 8.1
278 30 400 40 289 20 240 30 160 20 TSS 273.4 28 89.75
490 150 540 220 500 90 520 230 560 200
TS 522 178 65.90
413.6 45 357.8 52.6 415 65.5 372.8 96 422.4 38.4 COD 396.32 59.5 84.98
195 9.7 209.5 12.4 250 11.3 230 19.5 313.8 10.5 BOD 239.7 12.68 94.70
Chloride 64 47 55 35 42 35 55 40 46 40 s 52.4 39.4 24.80
(All Parameters are in mg/l except pH).
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4.3 PHASE 2 DETERMINATION OF OPTIMUM RATIO FOR 7 HR CYCLE
In second phase, Cycles were run with Fill to React ratios of 1:1, 1: 1.2, 1:1.4 (7 Hr Cycle), 1:1.6 & 1:1.8. The results for these Fill: React ratios are tabulated below. BOD removal for 2nd ratio is 94.57 % & that for 7 Hr Cycle is 94.69%. COD removal for 2nd ratio is 84.85% & that for 7 Hr Cycle is 83.97%. Total Solids removal for 2nd ratio is 63.88% & that for 7 Hr Cycle is 64.10 %. Total Suspended Solids removal for 2nd ratio is 89.72% & that for 7 Hr Cycle is 89.43 %. Average pH value for 7 Hr Cycle is 7.9 & that for 2nd ratio is 7.9.
94
92
90 1st Ratio 88 2nd Ratio 86 7 Hr Cycle
% Removal % 84 3rd Ratio 4th Ratio 82
80 1 2 3 4 5 No of days TSS
FIGURE 4.5: GRAPH OF TSS REMOVAL EFFICIENCY VS NO OF DAYS IN SECOND PHASE
74 72 70 68
66
1st Ratio 64 62 2nd Ratio 60 7 Hr Cycle 58
% Removal % 3rd Ratio 56 54 4th Ratio 52 50 1 2 3 4 5 TS No of days
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FIGURE 4.6: GRAPH OF TS REMOVAL EFFICIENCY VS NO OF DAYS IN
SECOND PHASE
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90
88
86
84 1st Ratio 2nd Ratio 82 7 Hr Cycle
% Removal % 3rd Ratio 80 4th Ratio
78
76 1 2 3 4 5 COD No of days
FIGURE 4.7: GRAPH OF COD REMOVAL EFFICIENCY VS NO OF DAYS IN SECOND PHASE
100
98
96
94 1st Ratio
92
2nd Ratio 90 7 Hr Cycle 3rd Ratio
% Removal % 88 4th Ratio 86
84 1 2 3 4 5 BOD
No of days www.zenithresearch.org.in www.zenithresearch.org.in
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FIGURE 4.8: GRAPH OF BOD REMOVAL EFFICIENCY VS NO OF DAYS IN
SECOND PHASE
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TABLE 4.6:1ST RATIO OBSERVATIONS
Date Average Averag % 27-03-10 28-03-10 29-03-10 30-03-10 31-03-10 e Remova l
Untreate Treate Untreate Treate Untreate Treate Untreate Treate Untreate Treate Untreate Paramete Treated r d d d d d d d d d d d
7.0 7.5 7.5 7.5 7.5 8.5 7.0 7.5 7.5 7.5 pH 7.3 7.7
280 40 160 15 240 40 260 30 280 30 TSS 244 31 87.30
580 180 480 220 470 160 550 200 380 150
TS 492 182 63.01
388.5 50.4 422.2 65.5 364.8 65 438.5 70.4 315.5 72.3 COD 385.9 64.72 83.23
107.5 10 201.3 12.4 100 15.4 235 10.2 187.5 11.6 BOD 166.25 11.91 92.83
Chloride 50 40 60 48 35 30 43 30 50 42 s 47.6 38 20.17
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TABLE 4.7 :2ND RATIO OBSERVATIONS
Date Average Averag % 01-04-10 02-04-10 03-04-10 04-04-10 05-04-10 e Remova l
Untreate Treate Untreate Treate Untreate Treate Untreate Treate Untreate Treate Untreate Paramete Treated r d d d d d d d d d d d
7.5 8.5 7.0 7.5 7.5 8.5 7 7.5 7.5 7.5 pH 7.3 7.9
350 40 270 30 380 30 280 30 180 20 TSS 292 30 89.73
540 210 460 170 610 200 480 160 430 170
TS 504 182 63.89
415.6 50.7 354.7 65 420 58.4 365 46.5 289.4 58.8 COD 368.94 55.88 84.85
173.4 9.5 100 6.2 108.3 6.3 187.5 10.3 BOD 180 8.33 149.85 8.13 94.57
Chloride 56 35 54 40 64 45 55 45 48 40 s 55.4 41 25.99
(All Parameters are in mg/l except pH).
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TABLE 4.8: 7 HR CYCLE OBSERVATIONS
Date Average Averag % 28-02-10 01-03-10 02-03-10 03-03-10 04-03-10 e Remova l
Untreate Treate Untreate Treate Untreate Treate Untreate Treate Untreate Treate Untreate Paramete Treated r d d d d d d d d d d d
7.5 7.5 7.5 7.5 7.0 7.5 7.5 8.5 7.0 8.5 pH 7.3 7.9
280 30 400 40 260 30 230 20 250 30 89.44 TSS 284 30
432.5 180 660 220 426.7 150 450 190 510 150 64.10
TS 495.84 178
350.4 60.3 415 63.5 365.5 54.8 313.7 65.4 376 47.8 83.97 COD 364.12 58.36
190 13.5 150 6.3 125 10.3 215.8 9.4 213 7.94 94.69 BOD 178.8 9.48
Chloride 55 40 43 30 52 30 60 45 48 42 27.52 s 51.6 37.4
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TABLE 4.9: 3RD RATIO OBSERVATIONS
Date Average Averag % 06-04-10 07-04-10 08-04-10 09-04-10 10-04-10 e Remova l
Untreate Treate Untreate Treate Untreate Treate Untreate Treate Untreate Treate Untreate Paramete Treated r d d d d d d d d d d d
7.5 8.5 7.0 7.5 7.0 7.5 7.5 7.5 7.5 7.0 pH 7.3 7.6
160 30 240 30 260 20 270 30 260 30 TSS 238 28 88.24
380 150 410 130 390 150 450 160 530 170
TS 432 152 64.81
280 45.5 322 40.8 310.5 48 320 52.6 422.4 64 COD 330.98 50.18 84.84
115.5 6.4 140 8.5 210 7.3 140 10.3 156 9.5 BOD 152.3 8.40 94.48
Chloride 45 40 60 45 48 30 60 55 53 48 s 53.2 43.6 18.05
(All Parameters are in mg/l except pH).
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TABLE 4.10: 4TH RATIO OBSERVATIONS
Date Average Averag % 13-04-10 14-04-10 17-04-10 18-04-10 19-04-10 e Remova l
Untreate Treate Untreate Treate Untreate Treate Untreate Treate Untreate Treate Untreate Paramete Treated r d d d d d d d d d d d
7.0 7.5 7.5 7.5 7.5 7.5 7.0 7.5 7.0 7.5 pH 7.2 7.5
190 20 280 20 190 30 180 30 260 20 TSS 220 24 89.09
380 120 460 150 380 150 350 140 420 140
TS 398 140 64.82
288 50.4 276.2 44.6 296 40.4 260 50.2 296 40.6 COD 283.24 45.24 84.03
190 8.5 178 10.5 156 10 135.6 8.3 165 6.4 BOD 164.92 8.8 94.66
Chloride 45 43 53 45 40 32 55 50 42 35 s 47 41 12.77
(All Parameters in mg/lit except pH)
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5.1 CONCLUSIONS
1. In first phase of the study optimum removal was observed for the 7 Hr Cycle, (94.69 % BOD removal, 83.97 % COD removal, 89.43 % Suspended Solids removal, 64.10 % Total Solids removal, Average pH of 7.9).
2. In the second phase of the study to optimize the 7 Hr Cycle, four ratios of Fill: React are observed viz 1: 1, 1: 1.2, 1:1.6 and 1:1.8. The optimum organic matter removal efficiency is observed for 2nd ratio i.e. 1:1.2.
(94.57 % BOD removal, 84.85 % COD removal, 89.73 % Suspended Solids removal, 63.89 % Total Solids removal, Average pH of 7.9).
3. The average characteristics of treated effluent for 2nd ratio are as pH = 7.9, Total Suspended Solids = 30 mg/l, Total Solids = 178 mg/l, COD = 58.36 mg/l, BOD = 9.48 mg/l.
4. After comparing the above mentioned average characteristics of treated effluent with US EPA Guidelines** for Water Reuse, Treated effluent with disinfection can be used for the following non potable reuse purposes.
Agricultural (Food crops commercially processed) Surface irrigation,
Pasture for milking animals, fodder & seed crops,
Forestation,
Agricultural (Food crops not commercially processed),
Surface or Spray irrigation of any food crop including crops eaten raw,
Urban Reuse :All types of landscape irrigation, (e.g. golf courses, parks), also vehicle washing, toilet flushing, use in fire protection systems, commercial air conditioners etc,
Recreational Impoundments: Incidental contact (e.g. fishing & boating) & full body contact with reclaimed water allowed,
Aesthetic impoundment: where public contact with reclaimed water is not allowed,
Construction Use: Soil Compaction, dust control, washing aggregate, making concrete.
** The Guidelines for Water Reuse is an update of the Guidelines for Water Reuse developed for www.zenithresearch.org.in
EPA by Camp Dresser & McKee Inc. (CDM) and published by EPA in 1992 (and initially in
1980). In May 2002, EPA contracted with CDM through a Cooperative Research and
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Development Agreement (CRADA) to update the EPA/USAID Guidelines for Water Reuse (EPA/625/R-92/004: Sept 1992).
REFERENCES
1. Biological treatment of Grey water using Sequencing Batch Reactor by M. Lamine, L. Bousselmi, A. Ghrabi Laboratory of Wastewater Treatment and Recycling, Center of Researches and Technologies of Waters, Tunisi.
2. EPA/USAID Guidelines for Water Reuse (EPA/625/R-92/004: Sept 1992).
3. ‘Recycle & Reuse of Grey water’ dissertation by Mansuri Siraj Y. M.Tech.(Civil Engineering with specialization in Environmental Engineering) 2008-2009. Veermata Jijabai Technologyical Institute, Matunga, Mumbai.
4. Review of the technological approaches for grey water treatment and reuses by Fangyue Li a,⁎, Knut Wichmann a, Ralf Otterpohl b a Hamburg University of Technology, Hamburg, Germany b Hamburg University of Technology, Institute of Wastewater Management, Hamburg, Germany.
5. Review on Sequencing Batch Reactors by Wisaam S. Al-Rekabi, He Qiang and Wei Wu Qiang, Kay Laboratory of the Three Gorges Reservoir Regions Eco-Environment, Chongqing University, Chongqing 400045, P.R. China; Faculty of Engineering, Basrah University, Basrah, Iraq.
6. SBR Technology for Wastewater Treatment by M. Teresa Vives Fabregas, ISBN 84 – 689-0880-0.
7. Wastewater Engineering by Metcalf & Eddy 3rd Edition. McGraw Hill International Editions.
8. Wastewater Technology Fact Sheet Sequencing Batch Reactors United States Environmental Protection Agency, Office of Water Washington, D.C., EPA 832-F-99- 073 September 1999.
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ENTREPRENEURSHIP AND ECONOMIC PROCESS
VIRENDER PAL*
*Department of MBA, Geeta Institute of Management & Technology, Kanipla - 136131, Kurukshetra, Haryana, India.
ABSTRACT
A worldwide consensus on the critical role of competitive markets and entrepreneurs in economic development has emerged in the last decade. In developing countries, the primary barrier to economic growth is often not so much a scarcity of capital, labour or land as it is a scarcity of both the dynamic entrepreneurs that can bring these together and the markets and mechanisms that can facilitate them in this task.
Entrepreneurship is always linked with profit, and the main prominence of this paper will be on the part played by the entrepreneur in economic process. Even though there are several approaches to entrepreneurship, to profit and to functions that the entrepreneurs provide in the market process, this paper will focus on the ideas of the Neoclassical Theory (in general, the ideas of Marshall), the Schumpeterian approach, and the Neo-Austrian theories of entrepreneurship. All three approaches are critically analysed and both strong sides and shortcomings are introduced in terms of their implications and their applications in regulation of monopolies.
KEYWORDS: Entrepreneurship, competition, profit, regulation, innovation, swarmlike clusters. ______
INTRODUCTION
For any economic theory, it is important to focus on what questions the theory is designed to answer and what tools are being used to answer them. When the concept of entrepreneurship is used in economics, the purpose of analysis is mainly to explain (i) how the market system works and (ii) the various kinds of income -especially profit- and their
relation with entrepreneurship. Entrepreneurship is always linked with profit, and the main emphasis of this paper will be on the part played by the entrepreneur in economic process. Even though there are several approaches to entrepreneurship, to profit and to functions that the entrepreneurs provide in the market process, In this paper we will provide an overview of the three main views of the notion of the entrepreneurial process: Schumpeter’s view of the entrepreneur as innovator, Kirzner’s notion of entrepreneurship as arbitrage and the view of entrepreneurship in history as one of betting on ideas. In considering each of these views, we will pay particular attention to the implications of the institutional environment on the particular notion of entrepreneurship.
In analysing entrepreneurship, Marshall mainly tries to explain how markets reach to equilibrium under the assumption of perfect competition and does not give each individual manufacturer a specific role in terms of innovation or change. Many small size www.zenithresearch.org.in firms compete, and, in equilibrium, there is no excess profit is earned by each firm. The
model fails to explain profit and how changes and innovations occur in a capitalist
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1. MARSHALLIAN APPROACH TO ENTREPRENEURSHIP
The Marshallian approach to entrepreneurship tries to explain equilibrium conditions in the markets under the assumptions of perfect competition, in the market. The Marshall's main concerns is to show that markets clear under the perfect competition assumptions and there are no excess profit opportunities and hence there is no exploitation of labor in production process since everyone earns his marginal contribution to production and national income. However, while he analyses zero profit equilibrium conditions, at the same time he has to explain without profit incentives how change and progress occurs and what leads producers to innovate or develop new production methods and techniques. To answer this question, Marshall stresses the cooperative relationship between capital and labor based on the principle of partnership. The producer obtains his dominant position in the production process due to his superior managerial abilities. Hence this superior ability is the reason that producers get more of the income: their contribution to national income is greater than the labor.
Marshall analyzes the normal running business as entrepreneurship3, but he recognizes that some businessmen are much more enterprising than others. He does not make this distinction because he does not want to further analyse the difference between a stationary state and the evolving economy. Thus, in the Marshallian analysis, the firms have to organize their production and marketing functions in an evolving economy which is an environment of uncertainty and change.
2. SCHUMPETER: INNOVATIVE DESTRUCTION
Schumpeter (1991) defines entrepreneur as someone who establishes a new business to produce a new product or to make an old product in a new way. In his work, the entrepreneur takes the center stage of socioeconomic development. He takes the role of socioeconomic leader since he has the ability to decide, to direct, to push matters through. The Schumpeterian entrepreneur differs from imitators in applying new methods of production on the market, in opening up new markets. This creative ability differences gives entrepreneur a chance of accumulation of a surplus but this eroded as imitators appear in the market using same methods. Thus, the temporary monopoly profits made by the entrepreneur shows the dynamic of the capitalist system and also show that each cycle
of innovations by entrepreneurs is the main cause of business cycles. www.zenithresearch.org.in www.zenithresearch.org.in
Schumpeter regards economic development as a dynamic and discontinuous
process. The society progresses through trade cycle8. That is why the entrepreneurial
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FIGURE: 1 ENTREPRENEURS AND INNOVATION Y 100% L
%
0 X Time
The curve OL represents that firm adopt an innovation slowly to start but soon the adoption of innovation gains momentum but it never reaches 100 per cent adoption by firms.
Schumpeter was the first scholar who develops its theories which describe the relationship between entrepreneur and economic development. He gave two theories, sometimes called Mark I and Mark II. In the first one, the early one, Schumpeter argued that the innovation and technological change of a nation comes from the entrepreneurs, or wild spirits.
In Mark II, he asserted that the actors that drive innovation and the economy are big companies which have the resources and capital to invest in research and development. Both arguments might be complementary today. He sharply differentiates himself from Marshallian-Neoclassical theories of economic development and growth. While, in the Marshallian analysis, small contributions from a very large number of modest entrepreneurs lead economic progress, Schumpeter's entrepreneur plays the role of a revolutionary in creation of new production functions and methods.
3. KIRZNER'S "ALERT" ENTREPRENEUR
While in Neoclassical analysis (Marshall) the main focus is the conditions necessary to sustain an equilibrium, and Schumpeter's focus was to explain the progress in capitalistic system by using innovator entrepreneur's destructive creation, Kirzner- representing the Neo-Austrian approach to entrepreneurship focused on answering the question of whether a market economy works and, if it does so, what the process that leads the economy towards an equilibrium is. Kirzner claims that initially the economy is in disequilibrium and the competition among 'alert' entrepreneurs leads to equilibrium.
Unlike Neo-classical economists, Kirzner realizes that markets are not always
clear, there is no perfectly informed representative agent and for change the entrepreneurs www.zenithresearch.org.in www.zenithresearch.org.in
need incentives and this incentives comes from the difference among agents in terms of information and knowledge. Since each agent has different knowledge and information set
in a real economy, every actor (agent) is an entrepreneur and speculator. Hayek (1948)
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According to Kirzner, the Neoclassical theory examines markets-abstracting from institutional detail by focusing only on supply, demand and price and he goes on stating that "it explains in great detail the relationships that would prevail in markets that already do work; it is silent on the nature of the process that might generate those relationships."
In his theory agents are not homogenous in terms of ability, alertness and ability to reach information. Entrepreneurs, who are seeking to exploit opportunities, take the decisions and the bulk of the populations do not take decisions. Entrepreneurs differ from the second group since they are alert and they have the ability to see that a change has occurred and there are exchange opportunities to exploit. As long as agents have different level information and level of knowledge, the limitations of non-entrepreneurs' knowledge provide an incentive and a profit opportunity for entrepreneurs. The difference in knowledge and information lead to differences in the valuation of a particular good.
According to Kirzner, an improvement in the technique of production or a shift in preferences leads to change (disequilibrium) in market initially there was equilibrium. If there is equilibrium in the market there is nothing for the entrepreneur to do and no exchange and profit opportunities for them since everybody will be able to carry out his initially determined exchange plans. But whenever the change has occurred, some planned activities will not be realized. In this point, the importance of the entrepreneur is understood, since they realize that the market is not in equilibrium due to either excess demand or excess supply and competition among entrepreneurs leads to equilibrium again.
4. MECHANICS OF ECONOMIC DEVELOPMENT
We have established that the entrepreneurial aspect of human action is the prime catalyst for economic growth. Moreover, we have discussed several notions of the entrepreneurial function and the role that institutions play in encouraging or discouraging that aspect of human action. We now turn to a discussion of neoclassical growth economics and the role that the entrepreneur and institutional organization play in that framework.
Neoclassical growth theory has long overlooked the importance that institutions play in economic growth (Robinson). Simply put, for neoclassical economists, institutions did not matter. Instead, they focused on calculating equilibrium as well as the relevant prices, variables and outputs for arriving at that end state. It was not until the postwar period that economists began to realize the importance of the entrepreneur as the driver of economic progress. Several decades later economists began to focus on institutions in their analysis of economic growth.
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THE STANDARD NEOCLASSICAL GROWTH MODEL IS DEFINED AS
= , (4.1) where Y is net national output, p is the average price of output as well as capital equipment; w is money wage rate, n is the amount of labour employed, is the gross profit rate, and k is the amount of capital equipment utilized.
Dividing both side of (4.1) by p
(4.2)
Dividing further both sides of (4.2) by N
(4.3)
Or
(4.4)
(4.5)
This shows that the gross profit rate entrepreneur depends upon the productivity denoted by of labour in entreprenure, the real wage rate and the capital labour ratio
denoted by
Thus
(4.6)
It means the profit of an entrepreneur directly depend on the rate of return to capital or inversely with capital labour ratio
Now taking the income expenditure equation
(4.7)
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since
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(4.8)
Where is the consumption out of wage income and k is the saving out of profit income
(4.9)
From equation (ix)
(4.10)
Substitute (4.10) (4.2), we get
(4.11)
The equation (4.11) clearly shows that the growth of an economy directly depends upon the productivity of labour and the rate of capital accumulation. Therefore the central proposition of new classical growth theory is “If they have no profit, the entrepreneurs cannot accumulate and if they don’t accumulate they have no profit”8.
CONCLUSION
Theories of entrepreneurship are mainly designed to answer the questions: (i) how market system works and, (ii) what the relationship between entrepreneurship and economic profit is.
Marshallian theory which indicates the existence of perfect information and perfect competition assumptions fails to answer both questions accurately. The model indicates the non-existence of excess profits and does not distinguishes entrepreneurship from routine production process.
The Schumpeterian analysis is the closest to the reality regarding the work of market system and creation of profit. However, he gives to much importance to individual innovations and ignores the effects of generations and previous failures to discover those innovations. He sees all innovations exogenous in this sense not endogenous to the system. Schumpeter rejects the equilibrium analysis and he believes that human economic development is the history of continuous creative destructions by entrepreneurs. The entrepreneur is an innovator, not an imitator in the production and, as an innovator, naturally he is monopolist. Since economic progress comes from innovations, innovator
should be protected and free enterprise should be encouraged. www.zenithresearch.org.in www.zenithresearch.org.in
Kirzner's alert entrepreneur is an arbitrager and sees profit opportunities and
exploits them. His model sees all non- entrepreneurs as programmed robots who do not
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Even though Kirzner sees his model's indication about competition and regulation, the model indicates same kind of policy implications for regulation of monopolies. Also, both Austrian and Neo-classical theories at the end reach market equilibrium. As a result, the approach indicates that if there is no barrier to entry, the threat of new entries from potential entrants will force the monopolist to behave as if the market is competitive, there will be no excess profit and the threat will force the monopolist to reduce production costs. Since the outcome is close to the perfect competition outcome and the dead weight loss is zero or close to zero, then there is no room for government regulation.
REFERENCES
[1] Hayek F. (1948), “The Use of Knowledge in Society”, The American Economic Review, September 1945; Reprinted in Hayek, Individualism and Economic Order, London” Routledge and Kagan Paul.
[2] Kirzner, I.M. (1997), “How Markets Work: Disequilibrium, Entrepreneurship and Discovery.”, London, The Institute of Economic Affairs.
th [3] Marshall, A. (1948), “Principles of Economics: An Introductionary”, Volume, 8 ed., London, Macmillan and co. limited.
[4] Marz, A., Joseph Schumpeter Schola (1991), “Teacher, and Politician, New Haven and London”: Yale University Press.
[5] Mises, L.V. (1949), “Human Action, New Haven”, Yale University Press.
[6] Rana and Verma(2007), “ Macro Economics Analysis, Vishal Publishing Co., New delhi.
[7]Robinson, J.(1953), “Accumulation of Capital”, London, Blackwell.
[8] Robinson, J.(1961), “Essay in Theory of Economic Growth”, London, Macmillan.
[9] Schumpeter, J.A. (1991), “Assays on Entrepreneurs, Innovations, Business Cycles and The Evaluation of Capitalism”, New Brunswick and London, Transactions Publications.
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DISABLED: PUSHED TO ENTREPRENEURSHIP
G. MADAN MOHAN*
*Assistant Professor, Department of Management Studies, Pondicherry Central University, Pondicherry - 605014.
ABSTRACT
Rehabilitation of disabled have gained serious momentum in the recent past, with the passing of many international conventions to protect the rights of disabled. Though the government has provided 3% reservation for disabled in its jobs, it may not be possible for it to provide job for all disabled. In such a situation, entrepreneurship is a viable option for enabling disabled persons to lead a dignified life. However, it cannot be said that all disabled who have selected entrepreneurship as their career have made such a choice out of their own liking. Hence, the researcher has made an effort to find out whether disabled entrepreneurs have been pulled to entrepreneurship or whether they have been pushed to entrepreneurship without any other better choice. 150 disabled entrepreneurs have been contacted in Chennai and their opinion about factors which might have influenced them to take up entrepreneurship has been studied. Results reveal that disabled in Chennai have generally been pushed to entrepreneurship out of non-availability of other career options.
KEYWORDS: Entrepreneurship; Persons with Disability; Pull and Push Factors. ______
INTRODUCTION
Any activity or process shall have difficulties associated with it. Entrepreneurship is no exception to this rule. Entrepreneurship is a complex process, embedded with more complexities and problems. The situation shall be more severe in cases of persons with disability (PWDs) taking up entrepreneurship as their career.
The unemployment rate for PWDs in developed and developing countries is unacceptably high. Surveys indicated that most of the disabled who remained unemployed wanted to work but they were denied opportunities to work. The society often misunderstands and
undervalues the abilities of PWDs, complicating the process of finding a paid employment for them. Employers may be reluctant to hire PWDs because of fear, and a lack of understanding about the liability and cost of the accommodations needed. As a result, the bulk of the PWDs are unemployed. This has induced more and more PWDs and people with chronic health conditions to start their own businesses. Self-employment offers the PWDs the freedom to work at their own pace in an environment that accommodates their special needs. Being self-employed often provides the flexibility that is necessary to the PWDs requiring frequent medical attention, flexible hours, accessible work space, or other special considerations.
However, entrepreneurship is not a simple process. Various factors may drive a person to entrepreneurship. This article makes an attempt to study the factors that might motivated a
disabled to choose entrepreneurship as their career. www.zenithresearch.org.in
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Methodology: 150 disabled entrepreneurs from Chennai have been selected for this study, with the help of various disabled associations, and a well structured and non-disguised questionnaire was administered and data pertaining to the factors that might have motivated them to select entrepreneurship as their career has been assessed from their response to 14 different factors in a Likert’s five point scale, ranging between “Strongly Agree to Strongly Disagree”. The factors have been categorised into Push and Pull factors. Pull factors may be referred to as positive factors, which may motivate a person to become entrepreneur. These factors attract a person to entrepreneurship, making him choose entrepreneurship as his career without any compulsion. Push factors are negative factors, which render a person choose entrepreneurship as his career out of compulsion and without any other viable option. Such factors may be non-availability of paid employment, poor educational qualifications to find a job, unsuitable work environment, and other difficulties associated with paid employment. The data obtained has been entered into a Excel sheet and the data has been analysed using SPSS package. Statistical tools of Mean and ANOVA has been employed to analyse the data. The set of factors which have got the least mean score will have motivated the disabled to take up entrepreneurship as their career.
FACTORS INFLUENCING DISABLED TO ENTREPRENEURSHIP IN CHENNAI
TABLE 1: MEAN OF PUSH AND PULL FACTORS
FACTOR MEAN FACTOR MEAN
1. Make Money 1.92 9. Contacts with Other Businesses 3.80
2. Be One’s Own Boss 1.14 10. Influence of Media 4.38
3. Personal Achievement 1.50 11. Training Institutions 3.86
4. Create Jobs 3.46 PULL FACTORS 2.95
5. Low Initial Capital 2.76 1. Difficulties Associated With Paid Job 3.06
6. Scope For Innovation 4.04 2. Not Getting Paid Job 2.38
7 Involve PWDs in 3.90 3. Avail Family Assistance 2.26 Business
8. Friends’ Experiences 1.62 PUSH FACTORS 2.57
Analysis of Pull and Push Factors: This proposed analysis is being made by grouping the factors which might have motivated the disabled entrepreneurs to start business venture into Pull and Push factors. The overall mean calculated for the cluster of Pull factors put together is 2.95, while the overall mean for the push factors has been calculated as 2.57. This suggests that the disabled entrepreneurs have been more pushed to entrepreneurship, rather than being pulled towards entrepreneurship. Hence, it can be said that disabled www.zenithresearch.org.in entrepreneurs in Chennai have selected entrepreneurship as their career option more out of
compulsion rather than as a voluntary choice. Factors such as being one’s own boss,
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Personal achievement motive, and making money have exerted more influence on PWDs to undertake entrepreneurship, while a further set of factors such as providing employment to others, better scope for innovative ways of doing things, through the media, through Contact With Small Businesses At Work Either As Customers Or Suppliers, through Education/ Training Institutions, helping Other Disabled By involving Them In Business, and difficulties associated with paid employment seem to have little influence on the PWDs to select entrepreneurship as their career choice.
TABLE 2: MEAN OF PULL AND PUSH FACTORS FOR DIFFERENT CATEGORIES OF DISABLED ENTREPRENEURS
DISABLED MEAN OF MEAN OF ENTREPRENEURS PULL FACTORS PUSH FACTORS
Male 2.87 2.75
Female 3.06 2.30
Aged < 20 2.92 1.71
Aged 20-35 2.97 2.58
Aged 35-50 2.80 2.96
Aged > 50 3.04 2.40
Educated < Matric 2.91 2.47
Educated Upto Matric 2.99 2.60
Educated Upto HSE 3.01 2.38
Educated Upto Degree 2.64 3.00
Visually Handicapped 3.13 1.78
Orthopaedically Handicapped 2.88 3.09
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TABLE 3: ANOVA FOR MOTIVATING FACTORS FOR DIFFERENT CATEGORIES OF DISABLED ENTREPRENEURS
EDUCATION EDUCATION
GENDER GENDER
FACTOR
VH&OH VH&OH
AGE AGE
SIG. SIG. SIG.
Sig.
F F F F
Make 0.257 0.613 9.654 0.000 1.010 0.390 0.257 0.613 Money
Be Own 0.082 0.775 14.207 0.000 112.18 0.000 3.010 0.085 Boss 1
Getting 19.157 0.000 10.753 0.000 2.061 0.108 19.157 0.000 Job
Difficulti 1.373 0.243 15.081 0.000 1.866 0.138 100.11 0.000 es Associat ed With Paid Job
Personal 0.993 0.321 0.248 0.862 9.336 0.000 4.055 0.046 Achieve ment
Job For 4.840 0.029 0.820 0.485 2.059 0.108 13.398 0.000 Others
Low 23.172 0.000 26.788 0.000 16.215 0.000 25.434 0.000 Initial Capital
Availing 3.391 0.068 4.053 0.008 6.884 0.000 89.065 0.000 Family Assistanc e
Scope for 13.226 0.000 5.143 0.002 2.312 0.079 7.400 0.007 innovatio n
Helping 2.041 0.155 3.315 0.022 0.793 0.500 13.755 0.000 Other
Disabled
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Friends’ 2.921 0.090 18.267 0.000 4.328 0.006 15.842 0.000
Experien
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ce
Contact 2.349 0.127 18.950 0.000 5.390 0.002 1.035 0.311 With Business es
Media 4.106 0.045 13.404 0.000 6.190 0.001 9.571 0.002
Training 9.046 0.003 5.258 0.002 23.169 0.000 18.372 0.000 Institutio ns
Inferences from Table 2 and Table 3
Table 2 reveals that Visually Handicapped, female disabled, those aged below 35 years and aged above 50 years, and those disabled with educational qualifications of less than Degree, have been largely pushed to entrepreneurship.
It can be observed from Table 3 that disabled entrepreneurs with different age differ in their opinion about making Money as the factor driving them to entrepreneurship, while there is no significant difference in the opinion of male and female disabled entrepreneurs, VH&OH entrepreneurs, and the differently educated disabled entrepreneurs about their opinion about making money as the factor motivating them to choose entrepreneurship as their career.
Similarly, Table 3 suggests that disabled entrepreneurs with different age and educational qualifications, about being one’s own boss as the factor driving them to entrepreneurship, while there is no significant difference in opinion among the male and female disabled entrepreneurs and VH&OH ENTREPRENEURS, about this being the driving factor.
FACTORS INFLUENCING DISABLED TO ENTREPRENEURSHIP
1. To provide employment to others: The mean score of disabled entrepreneurs
having selected entrepreneurship as their career to provide employment opportunities to others is 3.46, which reveals that the disabled entrepreneurs have selected entrepreneurship without any interest of providing employment opportunities to other people. The mean score is 3.60 for male disabled entrepreneurs, and 3.25 for their female counterparts, which indicate that both female and male entrepreneurs don’t have any interest of providing employment opportunities to others. However, female entrepreneurs seem to have a slight inclination towards creating employment opportunities, when compared to their male counterparts. The calculated value of significance is 0.029 (<0.05), which indicates that there is a significant difference in the opinion expressed by the female and male disabled entrepreneurs about having selected entrepreneurship as
their career to provide employment opportunities for others. www.zenithresearch.org.in www.zenithresearch.org.in
The mean score assigned to this factor by the VH entrepreneurs is 3.80, while the
OH entrepreneurs have assigned a mean score of 3.23 to this factor. This suggests
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that OH entrepreneurs have a stronger inclination towards providing employment opportunities to others, for starting their own business when compared with their VH counterparts. The calculated value of significance is 0.000(<0.05), which indicates that there is significant difference in opinion about this factor among the VH and OH entrepreneurs.
The mean score assigned to this factor by disabled entrepreneurs of age of less than 20 is 3.71, while those of age of 20-35 is 3.50, 3.33 for those of age of 35-50, and 3.44 for those of age of above 50 years. This discussion indicates that the disabled entrepreneurs, irrespective of their age, seem to have no idea of creating employment opportunities through their business. The calculated value of significance to this point is 0.485 ( >0.05), which indicates that there is no significant difference in opinion about this factor among the disabled entrepreneurs of different age groups.
The mean score assigned to this factor by disabled entrepreneurs with educational qualifications of less than Matriculation/SSLC level is 3.50, while those with Matriculation/SSLC is 3.32, for those with HSE qualifications 3.71, and 4.00 for those with Degree/Diploma qualifications. This discussion indicates that disabled entrepreneurs of different educational qualifications have disagreed to the issue that providing employment opportunities had any influence on their decision to start business. The calculated value of significance to this point is .108 (>0.05), which indicates that there is no significant difference in the opinion of the disabled entrepreneurs with varied educational qualifications about their opinion to start business to provide employment opportunities to others.
2. Low initial capital requirements: The mean score of the disabled entrepreneurs having selected entrepreneurship as their career due to the low capital requirements of starting their own business is 2.76, which indicates that the low capital requirements of starting a business don’t seem to have exerted any positive influence on the disabled entrepreneurs to start their own business. The mean score of male disabled entrepreneurs is 2.43 and that of their female counterparts is 3.25, which reveals that male disabled entrepreneurs seem to have a higher inclination towards starting their own business to avail the benefit of lower capital requirements to start their business, as compared to their female counterparts. The calculated value of significance is 0.000 (<0.05), which reveals the existence of a significant difference in the opinion of male and female disabled entrepreneurs regarding them being motivated to entrepreneurship due to the low capital requirements of starting a business.
The mean score assigned to this factor by the VH entrepreneurs is 2.25, while the OH entrepreneurs have assigned a mean score of 3.10 to this factor. This suggests that VH entrepreneurs have a stronger feeling than their OH counterparts that they have selected entrepreneurship as their career option due to lesser amount of capital required for starting business. The calculated value of significance is 0.000 (<0.05), which indicates that there is significant difference in opinion about this factor
among the VH and OH entrepreneurs. www.zenithresearch.org.in www.zenithresearch.org.in
The mean score assigned to this factor by disabled entrepreneurs of age of less than
20 is 1.43, while those of age of 20-35 is 3.12, 2.56 for those of age of 35-50, and
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3.56 for those of age of above 50 years. This discussion indicates that young disabled entrepreneurs aged less than 20 years are strongly inclined towards entrepreneurship due to the low capital required to start and run their business, while all the other entrepreneurs do not consider the low capital requirements of starting a business as a factor which would have motivated them to start their own business. The calculated value of significance to this point is 0.000 (<0.05), which indicates that there is significant difference in opinion about this factor among the disabled entrepreneurs of different age groups.
The mean score assigned to this factor by disabled entrepreneurs with educational qualifications of less than Matriculation/SSLC level is 1.92, while those with Matriculation/SSLC is 3.14, for those with HSE qualifications 3.00, and 2.00 for those with Degree/Diploma qualifications. This discussion indicates that disabled entrepreneurs with the least and the most of educational qualifications consider the factor of low capital requirements for starting a business as a influential factor driving them towards entrepreneurship. However, those disabled entrepreneurs with Matriculation and HSE qualifications have indicated that this factor did not have any influence on their decision to start their own business. The calculated value of significance to this point is .000 (<0.05), which indicates that there is significant difference in the opinion of the disabled entrepreneurs with varied educational qualifications about their opinion to start business to avail the advantage of low capital required to commence a business.
3. Better scope for innovative ways of doing things: Entrepreneurship offers the liberty of introducing innovations, which is not possible in a paid employment. The mean score of the disabled entrepreneurs for having taken up entrepreneurship because of the chance of doing things in an innovative manner is 4.04, which indicates that the disabled entrepreneurs have disagreed to the point that they have selected entrepreneurship to try and introduce innovations in their business. The mean score of male disabled entrepreneurs regarding their attraction towards entrepreneurship because of chances of introducing innovation is 3.90 and 4.25 for female disabled entrepreneurs, which suggests that males have a slight inclination towards choosing entrepreneurship to introduce their innovative ideas, when compared to their female counterparts. The calculated value of significance is 0.000 ( <0.05), which indicates a significant difference in the opinion expressed by
the male and female disabled entrepreneurs about selecting entrepreneurship to
give shape to their innovative ideas.
The mean score assigned to this factor by the VH entrepreneurs is 4.20, while the OH entrepreneurs have assigned a mean score of 3.93 to this factor. This suggests that both the OH and VH entrepreneurs do not have any idea of doing innovative things through their business venture. However, the OH entrepreneurs have a relatively more inclination towards doing innovative things through their entrepreneurship endeavours, when compared to their VH counterparts. The better scope of doing innovative things The calculated value of significance is 0.007 (<0.05), which indicates that there is significant difference in opinion about this
factor among the VH and OH entrepreneurs. www.zenithresearch.org.in www.zenithresearch.org.in
The mean score assigned to this factor by disabled entrepreneurs of age of less than
20 is 4.43, while those of age of 20-35 is 4.06, 4.00 for those of age of 35-50, and
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3.78 for those of age of above 50 years. This discussion indicates that all the disabled entrepreneurs, irrespective of their age, have started their own business without any plans of introducing innovation through their business. The calculated value of significance to this point is 0.002 (<0.05), which indicates that there is significant difference in opinion about this factor among the disabled entrepreneurs of different age groups.
The mean score assigned to this factor by disabled entrepreneurs with educational qualifications of less than Matriculation/SSLC level is 4.25, while those with Matriculation/SSLC is 4.00, for those with HSE qualifications 3.86, and 4.00 for those with Degree/Diploma qualifications. This discussion indicates that disabled entrepreneurs, irrespective of their educational qualifications, have disagreed to the point that their decision to start business was in any manner, influenced by their endeavour to introduce innovative way of doing things. The calculated value of significance to this point is .079 (>0.05), which indicates that there is no significant difference in the opinion of the disabled entrepreneurs with varied educational qualifications about their opinion to start business to be innovative in their approach.
4. Helping Other Disabled By Involving Them In Business: Disabled entrepreneurs might have been attracted towards entrepreneurship to facilitate creation of employment opportunities to fellow disabled persons. The mean score of the disabled entrepreneurs regarding this point as a factor that might have motivated them to take up entrepreneurship is 3.90, which reveals that the disabled entrepreneurs have nearly disagreed to this factor. The mean score for male disabled entrepreneurs is 3.83 and the mean is 4.00 for female entrepreneurs, which suggests that females totally disagree to this point, whereas their male counterparts seem to have a slight inclination towards the possibility of providing employment opportunities to their fellow disabled. The calculated value of significance is 0.155 (>0.05), which reveals a significant difference in the opinion about the possibility of providing employment opportunities to fellow disabled among the male and female disabled entrepreneurs.
The mean score assigned to this factor by the VH entrepreneurs is 4.15, while the OH entrepreneurs have assigned a mean score of 3.73 to this factor. This indicates that both the VH and OH entrepreneurs do not have ideas of involving other disabled while starting their business. However, OH entrepreneurs have slightly better inclination towards helping other disabled by involving them in their business, when compared to their VH counterparts. The calculated value of significance is 0.000 (<0.05), which indicates that there is significant difference in opinion about this factor among the VH and OH entrepreneurs.
The mean score assigned to this factor by disabled entrepreneurs of age of less than 20 is 4.00, while those of age of 20-35 is 4.06, 3.67 for those of age of 35-50, and 4.00 for those of age of above 50 years. This discussion indicates that all the disabled entrepreneurs, irrespective of their age, have started their own business without any plans of engaging other disabled persons in their business. The
calculated value of significance to this point is 0.022 (<0.05), which indicates that www.zenithresearch.org.in
there is significant difference in opinion about this factor among the disabled
entrepreneurs of different age groups.
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The mean score assigned to this factor by disabled entrepreneurs with educational qualifications of less than Matriculation/SSLC level is 4.00, while those with Matriculation/SSLC is 3.89, for those with HSE qualifications 3.71, and 4.00 for those with Degree/Diploma qualifications. This discussion indicates that disabled entrepreneurs, irrespective of their educational qualifications, have disagreed to the point that they had any ideas of helping other disabled by employing them in their business when they started their business. The calculated value of significance to this point is 0.500 (>0.05), which indicates that there is no significant difference in the opinion of the disabled entrepreneurs with varied educational qualifications about their opinion to start business to employ other disabled.
5. Experiences of friends/relatives running a business: Good experiences of friends and/or relatives successfully running a business may attract the disabled entrepreneurs to take up entrepreneurship. The mean score assigned by the disabled entrepreneurs to this factor is 1.73, which indicates that the disabled entrepreneurs do agree to the point that the experiences of their friends and/or relatives influenced them to take up entrepreneurship. The mean score assigned by male disabled entrepreneurs is 1.45, and the mean of their female counterparts is 1.62. This indicates that the level of agreement to this issue is stronger (though not a very significant degree) among the male disabled entrepreneurs than their female counterparts. The calculated value of significance is 0.090 (>0.05), which indicates that there is no significant difference between the opinion expressed by the male and female disabled entrepreneurs regarding this issue.
The mean score assigned to this factor by the VH entrepreneurs is 2.00, while the OH entrepreneurs have assigned a mean score of 1.37 to this factor. This suggests that OH entrepreneurs seem to be strongly influenced by the experiences of their friends and relatives to start their own business, when compared to their VH counterparts. The calculated value of significance is 0.000 (<0.05), which indicates that there is significant difference in opinion about this factor among the VH and OH entrepreneurs.
The mean score assigned to this factor by disabled entrepreneurs of age of less than 20 is 1.00, while those in the age group of 20-35 is 1.38, 1.56 for those in the age group of 35-50, and 2.67for those of age of above 50 years. This discussion indicates that the old entrepreneurs aged above 50 seem to be not influenced by the experiences of their friends and/or relatives to start their business. However, the younger entrepreneurs who seem to be largely influenced by the experiences of their friends and/or relatives to start their own business have a stronger agreement to this issue. The calculated value of significance to this point is 0.000 (<0.05), which indicates that there is significant difference in opinion about this factor among the disabled entrepreneurs of different age groups.
The mean score assigned to this factor by disabled entrepreneurs with educational qualifications of less than Matriculation/SSLC level is 1.50, while those with Matriculation/SSLC qualifications is 1.79, for those with HSE qualifications 1.00, and 2.00 for those with Degree/Diploma qualifications. This discussion indicates
that disabled entrepreneurs with HSE qualifications have strongly agreed to the www.zenithresearch.org.in
point that experiences of their friends motivated them towards entrepreneurship,
while those with Degree/Diploma qualifications are just agreeing to this point. It
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can also be observed that those disabled entrepreneurs with qualifications of less than Matriculation and with Matriculation qualifications quite agree to this point. The calculated value of significance to this point is 0.006 ( <0.05), which indicates that there is significant difference in the opinion of the disabled entrepreneurs with varied educational qualifications about their opinion on the experiences of their friends/relatives playing an influential part in their endeavours to start a business.
6. Through Contact with Small Businesses at Work either as Customers or Suppliers: Good experience may be gained from working as suppliers or customers, which may be more than handy to start a successful business. The mean score of the disabled entrepreneurs to this factor is 3.80, which reveals that the disabled entrepreneurs have almost disagreed to the point that any experience gained by them before starting their business had any positive impact on their decision to start their own business. The mean score assigned by male disabled entrepreneurs to this regard is 3.70 and the score of their female counterparts is 3.95. This reveals that the level of disagreement to the positive impact of any experience gained before starting business is stronger (though not significantly strong) among the female disabled entrepreneurs than their male counterparts. The calculated value of significance is 0.127 ( >0.05), which reveals that there is no significant difference in the opinion expressed by the male and female disabled entrepreneurs about the likely role that their work experience prior to commencement of their business, might have had on their decision to start their own business.
The mean score assigned to this factor by the VH entrepreneurs is 3.90, while the OH entrepreneurs have assigned a mean score of 3.73 to this factor. This suggests that both the VH and OH entrepreneurs do not feel that any experience that they would have gained prior to the commencement of their business had any favourable influence on their business establishment ideas. However, OH entrepreneurs have been slightly influenced to establish their own business, by experiences gained by them prior to establishment of their business, when compared to their VH counterparts. The calculated value of significance is 0.311 (>0.05), which indicates that there is no significant difference in opinion about this factor among the VH and OH entrepreneurs.
The mean score assigned to this factor by disabled entrepreneurs of age of less than 20 is 4.57, while those of age of 20-35 is 4.25, 3.39 for those of age of 35-50, and 3.22 for those of age of above 50 years. This discussion indicates that the disabled entrepreneurs are not influenced to take up to entrepreneurship due to their work experiences before starting their own business. This feeling is much stronger among the younger entrepreneurs while compared to their older counterparts. The calculated value of significance to this point is 0.000 (<0.05), which indicates that there is significant difference in opinion about this factor among the disabled entrepreneurs of different age groups.
The mean score assigned to this factor by disabled entrepreneurs with educational qualifications of less than Matriculation/SSLC level is 4.25, while those with Matriculation/SSLC qualifications is 3.54, for those with HSE qualifications 4.00,
and 4.00 for those with Degree/Diploma qualifications. This discussion indicates www.zenithresearch.org.in
that disabled entrepreneurs with HSE and Degree/Diploma qualifications have
disagreed to the point that their decision to start their own business was influenced
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by their relationships with other businesses before starting their business. This level of disagreement is stronger among the disabled entrepreneurs with qualifications of less than Matriculation, and relatively weaker among those with Matriculation qualifications. The calculated value of significance to this point is 0.006 (<0.05), which indicates that there is significant difference in the level of disagreement of the disabled with varied educational qualifications about this factor.
7. Influence of Media: Media may play a major role in influencing people to shape their career towards entrepreneurship. By telecasting the various opportunities available for profitable business, and the various incentives and subsidies offered by the government to encourage entrepreneurship, the media may play a decisive role in motivating any person to take up entrepreneurship. Media has a more responsible role to play in motivating disabled to take up entrepreneurship as their career. The mean score assigned by the disabled entrepreneurs regarding the positive role played by media in motivating them to select entrepreneurship as their career is 4.38, which suggests that the disabled entrepreneurs have totally dismissed the role of media in motivating them to select entrepreneurship as their career choice. The mean score in this regard for male disabled entrepreneurs is 4.30 and 4.50 for female disabled entrepreneurs, which indicates that males seem to have been influenced slightly by the media than the females. The calculated value of significance is 0.045( marginally <0.05), which indicates the existence of a significant difference in the opinion expressed by the male and female disabled entrepreneurs about the role played by media in motivating them to take up entrepreneurship.
The mean score assigned to this factor by the VH entrepreneurs is 4.20, while the OH entrepreneurs have assigned a mean score of 4.50 to this factor. This suggests the dismissal of both the VH and OH entrepreneurs about the role played by the media in influencing their decision to establish their own business. The calculated value of significance is 0.002 (<0.05), which indicates that there is significant difference in opinion about this factor among the VH and OH entrepreneurs.
The mean score assigned to this factor by disabled entrepreneurs of age of less than 20 is 4.86, while those of age of 20-35 is 4.38, 4.44, for those of age of 35-50, and 3.89 for those of age of above 50 years. This discussion indicates that the disabled entrepreneurs have totally negated the media playing a role in their decision to take up to entrepreneurship. However, the older entrepreneurs aged above 50 seem to be marginally influenced by the media, but to a very insignificant extent. The calculated value of significance to this point is 0.000 (<0.05), which indicates that there is significant difference in opinion about this factor among the disabled entrepreneurs of different age groups.
The mean score assigned to this factor by disabled entrepreneurs with educational qualifications of less than Matriculation/SSLC level is 4.58, while those with Matriculation/SSLC qualifications is 4.43, for those with HSE qualifications 4.00, and 4.00 for those with Degree/Diploma qualifications. This discussion indicates that disabled entrepreneurs with HSE and Degree/Diploma qualifications have
disagreed to the point that media played any part in their decision to start their www.zenithresearch.org.in
business, while this level of disagreement is stronger among the other disabled
entrepreneurs. The calculated value of significance to this point is 0.001 (<0.05),
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which indicates that there is significant difference in the level of disagreement of the disabled with varied educational qualifications about the role of media in their endeavours to start their own business.
8. Role of Educational/Training Institutions: Trainers in training and rehabilitation institutions and teachers in educational institutions may play a positive role in shaping the career of their trainees or students towards entrepreneurship. The mean score assigned by the disabled entrepreneurs about the role played by such institutions in motivating them to take up entrepreneurship is 3.86, which indicates that the disabled entrepreneurs have almost disagreed to the point that such institutions played any concrete role in their decision to select entrepreneurship as their career. The mean score assigned by male entrepreneurs regarding this factor is 3.60, while females have assigned 4.25, which indicates that the magnitude of disagreement of the female disabled entrepreneurs about the role played by such institutions in motivating them to select entrepreneurship as their career is stronger than their male counterparts. The calculated value of significance regarding this factor is 0.003 ( <0.05), which indicates that there is a significant difference in the opinion expressed by the male and female disabled entrepreneurs about the role played by educational/training institutions in motivating them to select entrepreneurship as their career.
The mean score assigned to this factor by the VH entrepreneurs is 4.40, while the OH entrepreneurs have assigned a mean score of 3.50 to this factor. This suggests that both the OH and VH entrepreneurs were not influenced in any manner by the educational or training institutions. However, OH entrepreneurs seem to have been influenced in a better manner by such institutions, when compared to their VH counterparts. The calculated value of significance is 0.000 ( <0.05), which indicates that there is significant difference in opinion about this factor among the VH and OH entrepreneurs.
The mean score assigned to this factor by disabled entrepreneurs of age of less than 20 is 4.00, while those in the age group of 20-35 is 4.31, 3.33, for those in the age group of 35-50, and 4.00 for those of age of above 50 years. This discussion indicates that the disabled entrepreneurs except those who belong to the age group of 35-50, have strongly rejected the role played by the training/educational institutions in influencing their decision to take up to entrepreneurship. However, the entrepreneurs aged 35-50 seem to be marginally influenced by the training and educational institutions, but to an insignificant extent. The calculated value of significance to this point is 0.002 (<0.05), which indicates that there is significant difference in opinion about this factor among the disabled entrepreneurs of different age groups.
The mean score assigned to this factor by disabled entrepreneurs with educational qualifications of less than Matriculation/SSLC level is 3.67, while those with Matriculation/SSLC qualifications is 4.18, for those with HSE qualifications 4.14, and 1.00 for those with Degree/Diploma qualifications. This discussion indicates that disabled entrepreneurs with the highest educational qualifications have been
strongly influenced by educational/training institutions to start their business. It is www.zenithresearch.org.in
however, surprising to note that all other disabled entrepreneurs are disagreeing to
this issue, though the level of their disagreement is stronger among the disabled
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entrepreneurs with Matriculation and HSE qualifications, than those with qualifications of less than Matriculation. The calculated value of significance to this point is 0.000 (<0.05), which indicates that there is significant difference in the level of disagreement of the disabled with varied educational qualifications about the role of educational/training institutions in their endeavours to start their own business.
9. For Personal achievement: The mean of the response of the disabled entrepreneurs to this factor is 1.50, which reveals that the disabled entrepreneurs have a reasonably strong support to the factor that they wanted to achieve something personally by choosing entrepreneurship as their career option. The mean of male disabled entrepreneurs is 1.47, while that of their female counterparts is 1.55, which reveals that both the male and female disabled entrepreneurs have selected entrepreneurship as their career to satisfy their ambition of achieving something in their personal life. However, this feeling of achieving something personally seems to be stronger among the male disabled entrepreneurs when compared to their female counterparts. The calculated value of significance is 0.321 ( >0.05), which indicates that there is no significant difference between the opinion of male and female disabled entrepreneurs regarding their opinion about choosing entrepreneurship for satisfying their personal achievement endeavours.
The mean score assigned to this factor by the VH entrepreneurs is 1.40, while the OH entrepreneurs have assigned a mean score of 1.57 to this factor. This suggests that VH entrepreneurs have a stronger inclination towards achieving something personally, though the OH entrepreneurs also have such an inclination, though their degree of inclination is moderately lower than that of their VH counterparts. The calculated value of significance is 0.046 (<0.05), which indicates that there is significant difference in opinion about this factor among the VH and OH entrepreneurs.
The mean score assigned to this factor by disabled entrepreneurs of age of less than 20 is 1.57, while those of age of 20-35 is 1.50, 1.50 for those of age of 35-50, and 1.44 for those of age of above 50 years. This discussion indicates that the disabled entrepreneurs, irrespective of their age, have been strongly inclined to achieve personally through their entrepreneurship. The calculated value of significance to this point is .862 (>0.05), which indicates that there is no significant difference in opinion about this factor among the disabled entrepreneurs of different age groups.
The mean score assigned to this factor by disabled entrepreneurs with educational qualifications of less than Matriculation/SSLC level is 1.33, while those with Matriculation/SSLC qualifications is 1.54, 1.86 for those with HSE qualifications, and 1.00 for those with Degree/Diploma qualifications. This discussion indicates that disabled entrepreneurs of Degree/Diploma qualifications seem to have a stronger feeling to achieve something personally and this urge has driven them towards entrepreneurship. It can also be observed that the disabled entrepreneurs with Matriculation and less than Matriculation qualifications having strong inclination to achieve something through entrepreneurship. However, the disabled
entrepreneurs with HSE qualifications seem to have a lighter level of agreement www.zenithresearch.org.in
towards the influence of this factor on their decision to start their own business.
The calculated value of significance to this point is .000 (<0.05), which indicates
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that there is significant difference in the opinion of the disabled entrepreneurs with varied educational qualifications about their opinion to start business to achieve something personally.
10. Response of the disabled entrepreneurs about push Factors: Sometimes, people may be forced to select entrepreneurship as their career since they would have been left with no other choice. They would not have been able to find a suitable job which would have been preference to taking upto their own business. Such people who establish their own business without any particular liking to the profession are said to be compulsorily pushed to entrepreneurship without any further or better options. The contribution of such push factors in motivating the disabled entrepreneurs to take up to entrepreneurship is studied in the forthcoming paragraphs.
1. DIFFICULTY IN FINDING JOB: The government of India has reserved 3% of jobs in all institutions and organizations owned and aided by it for PWDs. Further, efforts have also been made to motivate and induce the private sector to employ more PWDs in their labour force. However, it is very difficult to find job opportunities to all PWDs due to lack of adequate jobs and lack of adequate and desirable qualifications among the PWDs for jobs available for them. These factors make entrepreneurship as the only viable option for such PWDs to lead a dignified life. The mean score assigned by the disabled entrepreneurs about them being motivated to entrepreneurship as a result of their inability to find a suitable job is 2.38, which suggests that lack of adequate job opportunities have induced them to take up to entrepreneurship. The mean score assigned for this factor by the male disabled entrepreneurs is 2.67, while it is 1.95 for the female category. This reveals that females have been strongly motivated towards entrepreneurship than their male counterparts, due to the non-availability of suitable and adequate job opportunities. The calculated value of significance regarding this factor is 0.000, which indicates that there is a significant difference in the opinion expressed about the role played by non-availability of job opportunities to motivate the disabled entrepreneurs to take up to entrepreneurship.
The mean score assigned to this factor by the VH entrepreneurs is 1.95, while the OH entrepreneurs have assigned a mean score of 2.67 to this factor. This suggests that VH entrepreneurs faced more difficulties to find a paid employment than their OH counterparts, which motivated them to start their own business. The calculated value of significance is 0.000 ( <0.05), which indicates that there is significant difference in opinion about this factor among the VH and OH entrepreneurs.
The mean score assigned to this factor by disabled entrepreneurs of age of less than 20 is 1.57, while those of age of 20-35 is 2.25, 2.89 for those of age of 35-50, and 2.22 for those of age of above 50 years. This discussion indicates that younger disabled entrepreneurs have stronger agreement to the point that they have been pushed to entrepreneurship due to non-availability of a better job, while those aged 20-35 and above 50 years seem to merely agree to this point. It is interesting to note that those aged 35-50 seem to have no agreement to this issue. The calculated
value of significance to this point is 0.000 (<0.05), which indicates that there is www.zenithresearch.org.in
significant difference in opinion about this factor among the disabled entrepreneurs
of different age groups.
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The mean score assigned to this factor by disabled entrepreneurs with educational qualifications of less than Matriculation/SSLC level is 2.58, while those with Matriculation/SSLC qualifications is 2.25, for those with HSE qualifications 2.29, and 3.00for those with Degree/Diploma qualifications. This discussion indicates that disabled entrepreneurs with the highest educational qualifications have started their business not just because of non-availability of a suitable paid employment. The other disabled entrepreneurs have also agreed to this opinion, but their level of agreement varies. The calculated value of significance to this point is .108 (>0.05), which indicates that there is no significant difference in the opinion of the disabled with varied educational qualifications about the non-availability of paid employment pushing them to entrepreneurship.
2. DIFFICULTIES ASSOCIATED WITH PAID EMPLOYMENT: PWDs shall face numerous problems in their work place. They may not be able to get the help of their family members or friends in their office for doing their duties. They may confront many difficulties in accessing the work place, in reaching the office place at the right time, and they may not gain the advantage of flexi working hours suitable for them. The mean score assigned by the disabled entrepreneurs to this factor is 3.06, which reveals that the disabled entrepreneurs do not consider this as an important factor that might have motivated them to establish their own business. The mean score assigned to this factor by the male disabled entrepreneurs is 3.17, and the mean score assigned by female entrepreneurs is 2.90. This suggests that females are more likely (though not significantly) to be influenced to choose entrepreneurship as their career due to the difficulties associated with work place than their male counterparts. The calculated value of significance is 0.243 ( >0.05), which reveals that there is no significant difference between the male and female disabled entrepreneurs about them being motivated to select entrepreneurship as their career due to the difficulties associated with work place.
The mean score assigned to this factor by the VH entrepreneurs is 2.00, while the OH entrepreneurs have assigned a mean score of 3.77 to this factor. This suggests that VH entrepreneurs have experienced serious problems while working in a paid job, than their OH counterparts, and this has led them to entrepreneurship. The calculated value of significance is 0.000 (<0.05), which indicates that there is significant difference in opinion about this factor among the VH and OH
entrepreneurs.
The mean score assigned to this factor by disabled entrepreneurs of age of less than 20 is 2.00, while those in the age group of 20-35 is 3.12, 3.78, for those in the age group of 35-50, and 2.33 those in the age group of above 50 years. This discussion reflects that the disabled entrepreneurs aged below 20 and above 50 have agreed that they encountered difficulties in finding a paid employment and this pushed them to entrepreneurship. However, the disabled entrepreneurs aged between 20 and 50 seem to disagree to this point, highlighting that they were not pushed to entrepreneurship due to the non-availability of paid employment opportunities. The calculated value of significance to this point is 0.000 (<0.05), which indicates that there is significant difference in opinion about this factor among the disabled
entrepreneurs of different age groups. www.zenithresearch.org.in
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The mean score assigned to this factor by disabled entrepreneurs with educational qualifications of less than Matriculation/SSLC level is 3.25, while those with Matriculation/SSLC qualifications is 3.14, for those with HSE qualifications 2.43, and 3.00 for those with Degree/Diploma qualifications. This discussion indicates that disabled entrepreneurs with the highest educational qualifications have started their business not just because of non-availability of a suitable paid employment. The other disabled entrepreneurs have also agreed to this opinion, but their level of agreement varies. The calculated value of significance to this point is .138 (>0.05), which indicates that there is no significant difference in the opinion of the disabled with varied educational qualifications about the difficulties associated with paid employment pushing them to entrepreneurship.
3. AVAILING FAMILY ASSISTANCE: PWDs may find it difficult to perform certain duties independently. During such instances, they may need the help and support of their friends or family members, which is readily available if they are engaged in their own business. The mean score assigned by the disabled entrepreneurs to this factor as motivating them to take up entrepreneurship is 2.26, which indicates that they are agreeing to the point that the availability of family support motivated them to take up to entrepreneurship. The mean score assigned for this factor by male disabled entrepreneurs is 2.40, and the mean score assigned by female disabled entrepreneurs is 2.05. This indicates the point that female disabled entrepreneurs feel the importance of support of family members more important for their decision to start their own business than their male counterparts. The calculated value of significance is 0.068 ( >0.05), which indicates that there is no significant difference between the male and female disabled entrepreneurs about their opinion on the importance of getting family support in their business endeavours as a motivating factor for them to take up entrepreneurship.
The mean score assigned to this factor by the VH entrepreneurs is 1.40, while the OH entrepreneurs have assigned a mean score of 2.83 to this factor. This suggests that VH entrepreneurs have a stronger feeling than their OH counterparts, for starting their own business to avail the assistance of their family members, which may not be available in paid jobs. The calculated value of significance is 0.000 (<0.05), which indicates that there is significant difference in opinion about this factor among the VH and OH entrepreneurs.
The mean score assigned to this factor by disabled entrepreneurs of age of less than 20 is 1.57, while the mean is 2.38 for those aged between 20-35, 2.22 for those of age of 35-50, and 2.67 for those aged above 50 years. This discussion indicates that young disabled entrepreneurs aged below 20 strongly consider the assistance that they may get from family members for their business as a strong factor driving them to entrepreneurship. The old entrepreneurs aged above 50 consider this factor as having a negligible bearing on their decision to start their own business. However, the disabled entrepreneurs aged between 20 and 35 seem to agree that family assistance has driven them to entrepreneurship, though their level of agreement is not as strong as their younger counterparts. The calculated value of significance to this point is 0.008 (<0.05), which indicates that there is significant
difference in opinion about this factor among the disabled entrepreneurs of www.zenithresearch.org.in
different age groups.
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The mean score of disabled entrepreneurs educated less than Matriculation/SSLC regarding this factor is 1.58, while the mean of those with qualifications of Matriculation is 2.43; the mean for those with HSE qualifications is 2.43 and 3.00 for those with Degree/Diploma qualifications. This discussion reveals that possibility of availing family assistance for business has not in any way, motivated the disabled entrepreneurs with Degree/Diploma qualifications to start their business. It can be observed that disabled entrepreneurs with qualifications of Matriculation and HSE have started their business with the hope of getting family assistance in their business, while this hope is higher among the disabled entrepreneurs with qualifications of less than Matriculation. The calculated value of significance for this factor is 0.000, which indicates that there is significant difference in the opinion among the differently educated disabled entrepreneurs about the role of family in motivating them to start their own business.
CONCLUSION
Analysis reveals that disabled entrepreneurs generally, have been more pushed to entrepreneurship rather than being pulled to entrepreneurship. Further analysis reveal that female and visually handicapped entrepreneurs and those possessing educational qualifications of less than Degree have been more pushed towards entrepreneurship. Data also support that disabled entrepreneurs aged between 35 to 50 have been pulled to entrepreneurship, while those in other age groups have been pushed to entrepreneurship. Hence, it can be concluded that disabled in Chennai have chosen entrepreneurship as their career mainly out of compulsion rather than out of passion to do their own business.
BIBLIOGRAPHY
Book on Entrepreneurship by Vasanth Desai.
Griffin (www.thedisabledentrepreneur.com 2000) “Self-employment pushed as option for the disabled”, published in Entrepreneur Magazine , December 2000.
Rao (2004)“Equity to Women with Disabilities in India”, published on the Disability World, Issue no. 25, September-November 2004.
Jon(www.disabilitymeansbusiness.com 2008) “Looking for grants guide for disabled entrepreneurs”.
Francine Brevetti (www.microbiz.org 2007) “Disabled entrepreneurs face uphill battle”.
Aldred H. (www.aifo.it 1993) “Self-directed Employment and Economic Independence in Low-income Countries”.
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INTEGRATION OF HR PRACTICES AND KNOWLEDGE MANAGEMENT
MS.SHOBHAA B.HANGARKI*
*Ex. BOE Member, Karnataka State Women University, Bijapur, Karnataka. Ex-Pricipal, Muktambika College of BBM & BCA, Gulbarga, Karnataka. Editorial Board Member of Monthly News Bulletin, Rural Engineering College, Bhalki, Karnataka.
ABSTRACT
Organisations have realized the importance of knowledge. The growth of knowledge workers and the rapid flow of information has been a source for competitive advantage. Organizations are adopting knowledge management practices to create and share knowledge as well adopts HR Practices to support knowledge management activities as Human Resource Management understands the demands of the organization. This paper attempts to establish relationship between Human Resource Management and Knowledge Management and changes to be brought in Human Resource Practices and organizational performance.
KEYWORDS: Knowledge management, Human resource management, Knowledge workers, Human Resource Practices. ______
INTRODUCTION
The role of HR is becoming pivotal in the 21st century. In today’s modern dynamic world, the work pressures and the need to enhance competencies and compete with the global demands has promoted organisations to find the means to cope with the changes. As a result the HR policies and practices have undergone a dramatic change in its functioning. Employees are considered to be the creators of a successful organisation. It is the responsibility of the management to ensure the satisfaction level of the employees. The
global business environment has a workforce surface composed with employees who are satisfied with their jobs, pay, benefits and working conditions and are committed to the organisation. It is found that 75 percent of the company’s market value is reflected by its Human relationship and knowledge management.
IMPORTANCE OF KNOWLEDGE MANAGEMENT
The growing importance of knowledge management is often seen as a result of the move from an industrialized to an information based economy and the rise of knowledge workers and symbolic analyst in advanced industrial societies with knowledge and expertise focused to solve organisational problems. Many organisations have developed in house knowledge management systems through which they can effectively transfer and rescue the knowledge. The developments in the knowledge economy has seen a www.zenithresearch.org.in proliferation of information and communication technologies, coupled with greater
organisational complexities, the growth of virtual and global organisations and rapid
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LITERATURE REVIEW
RECRUITMENT AND SELECTION
Robertson and Hammersely (2000), describes the selection process in the consulting firm where candidates were screened out in two interviews. These interviews involved several consultants from a number of disciplines as well as the Human Resource Manager. The overriding importance was on the candidate’s ability to fit into the firm’s distinctive way of working, which involved the willingness and ability to work in groups and share knowledge. Psychometric tests were used but less weight was placed on their results.
Currie and Kerrin (2003), argue that traditional recruitment and selection practices can even block knowledge sharing between groups or departments in firms organized according to the fundamental principles. In their study in pharmaceutical company, they found that assessment centers through which graduates were selected were functionally focused, with assessment centre and marketing assessment centers being run separately. This strengthened the sub-cultures of functions and made knowledge sharing between functions very difficult.
Evans (2003), argued for revising the interview and selection processes so that they gather evidence about individual knowledge building behaviors. As well suggested to ask practical questions rather than the old traditional questions.
REWARD SYSTEM AND RECOGNITION
Evans (2003), Depres and Hiltrop (1995), found that for many knowledge workers it is as motivating to have free time to work on knowledge building projects, going to conferences or spending time on interesting projects as monetary rewards.
Zarraga and Bonache(2003), traditional rewards system reward those who produce rather
than those who share.
Horwitz (2003), found that in term of motivating strategies which may reduce knowledge workers turnover, it appears that non-financial strategies may have had a relationship with lower turnover. These include leadership, fulfilling work and participation in key decisions.
TRAINING AND DEVELOPMENT
Robertson and Hammesley (2000) points out that continuous professional development is considered to be essential fields. They must be constantly aware of developments within their specific disciplines and professions and they need to participate in activities that offer
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Hansen (1999) argues that codification and personalization strategies require that organisations hire different kinds of people and train them differently. Codification firms tend to hire ungraduates and train them in groups to be implementers, that is to develop and implement change programs and information systems. Personalization firms hire MBA graduates to be inventors, that is, to use their analytical and creative skills on unique business problems. Once on board, their most important training comes from working with experienced consultants who act as mentors.
PERFORMANCE MANAGEMENT SYSTEM
Roberts(2001) stated that performance management is a process that identifies who or what delivers the critical performance with respect to the business strategy and objectives and ensures that performance is successfully carried out.
Evans (2003) points out that on the basis of what gets measured normally gets done. It is important that firms consider the knowledge component in their performance management systems. Moreover, she recommends that a balance scorecard approach be adopted if employees are to realize that the firm is taking knowledge management seriously.
Schuler and Jackson (2003) argues that the general strategy of organisations tend to shape HRM practices. They noted vast difference among other things, performance management in organisations stressing innovation on one hand and effectiveness on the other. In the former the performance management system tends to focus on long term and group based achievements, while in the later, performance appraisals tend to be short-term and result oriented.
Currie and Kerrin (2003) found out that the performance management system inhibited knowledge sharing as much of the conflict between different functions was due to the divergent objectives set out for employees in the performance agreements.
Swart and Kinnie (2003) agrue that a long term developmental focus on performance management was one of the central factors in integrating knowledge within the organisation.
CAREER MANAGEMENT
Currie and Kerrin (2003) observed in their study of a pharmaceutical company that through different job placements during their training period or more generally through their career, graduates and a limited number of senior staff build up an informal network of contacts that they trusted and who trusted them. This facilitated the sharing of knowledge.
Evans (2003), Scarbrough (2003), Swart and Kinnie (2003)have also noted how career systems are important in shaping the flow of employees over time and the way that this interacts with the acquisition and exchange of knowledge.
CHALLENGES
RECRUITMENT AND SELECTION www.zenithresearch.org.in www.zenithresearch.org.in
Its important that recruitment should take place within knowledge organisations. The HR
department should select employees who are capable of contributing to the organisation in
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Recruitment and Selection
Reward Career System Management and Recognition
Performance Training Management and System Development
REWARD SYSTEM AND RECOGNITION
Research studies have found that employees are not willing to share data unless they are rewarded for that knowledge. Therefore organisations should have appropriate rewards and incentive system which would recognize employee creating new knowledge and sharing that knowledge with the other employees and management within the organisation. The reward incentive and compensation system should focus on promoting knowledge exchange and group collaboration.
Recognizing individual and group performance and contributions in tangible and immediate ways enhances an employee’s sense of the organisation’s appreciation and support of his or her efforts. While competitive pay and cash bonuses should be structured
so as to be internally fair and externally competitive. Non-monetary rewards, both formal and informal are an effective part of a reward mix that supports engagement.
TRAINING AND DEVELOPMENT
The training programme initiated by the organisation should result into development of employees and train employees to capture, store and access the knowledge across the organisation. The training mainly focuses on developing employees who are capable of tapping internal and external information and turning it into useful organisational knowledge.
PERFORMANCE MANAGEMENT SYSTEM www.zenithresearch.org.in www.zenithresearch.org.in
During performance rating, HR manager should take into account sharing and learning
where the focus should be on continuous improvement, creativity and innovation. HRM
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CAREER MANAGEMENT
In career management the HR function needs to shift from a traditional approach to developing the skills required for knowledge management activities. A system of career management is important in shaping the employees development on intellectual growth.
KNOWLEDGE MANAGEMENT DEVELOPED TO ACKNOWLEDGE THE IMPORTANCE OF HRM
Rossett and Marshall (1999), reported that the key issues for the HR were assessed for information, curiosity to learn more about knowledge management, organisational culture and policies and developing technologies.
Davenport (1998), stressed on the need to encourage employees to put their knowledge programmes on shelves.
Stewart (1997), emphasized that Human Resource staffs themselves may also need training in terms of their role.
Toracco (2000), identifies four basic units under a model of knowledge management and HRD. It includes developing a model for codifying knowledge, addressing the accessibility of knowledge and focusing on methods and systems for knowledge management, with emphasis on individual knowledge.
Gloet (2004), developed a model that relates knowledge management and human resource management. It explained that knowledge management requires major changes in four key areas – roles, responsibilities, strategic focus and learning focus.
EXHIBITING SATISFICATION OF KNOWLEDGE WORKERS
1. COMMITTEDNESS
Loyal to the organisation
Optimize for the future
Look at a bigger picture and find how they fit into it
Openly ambitious for self, team and company
Collaborates to achieve team goals
Has a sense of belonging to organisation, feel valued and involved at work and expresses views freely
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2. MOTIVATED
Strives to achieve personal and organisational goals
Contributes energetically
Values achieving personal goals more than team/ organisational goals
More loyal to personal professional goals than to the organisation
Focused individual contributor
SATISFIED
LOYAL
MOTIVATED
COMMITTED
3. LOYAL
Speaks positively about the organisation
Contributes discretionary efforts
Is willing to withhold criticism and/or be constructively critical for the good of the organisation
Proactively seeks opportunities to serve the mission of the organisation
Resilent to short-term dissatisfers
Recommends organisation as an employer
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4. SATISFIED
Is satisfied with the terms and conditions
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Often externally focused
Enjoys their job
Willing to work alone as well in team depending on the work profile
MANAGEMENTS ROLE
Managements role in optimizing the working relationship of committed employees include communicating the organisations progress and challenges relating to business results to team and individual roles. Managers should encourage upwards communication and innovation with appropriate recognition and rewards. Employees who have interest in organisational success, willing to go extra mile in executing projects and perform their regular duties with high standard applying creative energy are the employees who are the strongest link between employee performance and business success. Management recognizes such employees and provide all beneficiary facilities as they are the knowledge workers who are the assets of the organisation.
International organisations take actions to make HR practices more consistent across all locations and offices. They use consistent HR practices to help develop a common corporate culture and to improve the effectiveness of the HR functions. While domestic organisations create consistent HR practices to improve both the effectiveness of the HR function. Various challenges faced by the international companies are,
(a) Variations in social, political and economic circumstances
(b) Different location/ offices have their own way of doing things and are resistant to change
(c) The perceived value of the HR function varies across locations/ offices
(d) Co-ordination of activities in many different locations
(e) Understanding the continual change of the globally competitive environment
(f) Building a global awareness in all HR departments/ divisions
(g) Creating a multi-cultural HR team
BEST HR PRACTICES TO STAISFY KNOWLEDGE WORKERS
1. Developing a long-term HR plan to ensure alignment of HR objectives and strategies with corporate objectives.
2. Create global polices/ process for data management, performance management, education, development and compensation.
3. Develop an HR mission statement.
4. Create centralized reporting relationships around the globe. www.zenithresearch.org.in
5. Frame standardized assessment, development and compensation practices.
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6. Set common corporate culture and communicate to all locations/offices.
7. Allow local culture to maintain their identity in the context of the corporate culture.
8. Create a written strategy outlining the corporate culture.
Communicating the continual changes in the global competitive environment.
9. Create a multi cultural HR team.
CONCLUSION
In order to be a global leader, organisations should develop a culture of free flow of knowledge at all levels. To progress firms need to develop new HR strategies and practices that help in achieving objectives of making knowledge a central goal for success. Organisations should realize that their global HR practices can help them utilize their existing knowledge workers from across the multiple geographic and cultural boundaries in meeting the challenges they face in creating a global workforce.
REFERENCES
1. Alvesson M (1993), Organisations as rhetoric: knowledge intensive firms and the struggle with ambiguity, Journal of management studies, vol.30. No.6.
2. Arthur J.B. (1992), The link between business strategy and industrial relations systems in American steel minimills, Industrial and labour relations review, Vol.45, No.3.
3. E.Mrudula (2009), employee retention, ICFAI university press.
4. Paul M Sanchez (2008), Engaging employees to drive global business success- Insight from Mercer’s what’s working Research” icfai university press.
5. Sheila M.Rioux, Paul R.Bernthal and Richard S.Wellins (2008) The Globalisation of Human Resource Practices, NHRD Journal, Vol.2. No.1.
6. V.S.P.Rao,(2009) Human Resource Management”, Excel Books
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THE SCOPE OF CATASTROPHE BONDS AS A CATASTROPHE RISK FINANCING ALTERNATIVE IN INDIA: A STUDY FOCUSED ON CATASTROPHE LOSSES OVER THE LAST FIVE YEARS
MR. STEEVAN ROBERT TELLIS*; DR. AJOY S JOSEPH**
*Sr. Lecturer, Department of MBA, Srinivas Institute of Technology, Farangipete, Karnataka, India. **Professor and Head, Department of MBA, Srinivas Institute of Technology, Farangipete, Karnataka, India.
ABSTRACT
Insurance is a financial product, one of the oldest known to man, and has always been at the forefront of risk management. There has been much said about the convergence of the insurance industry with the capital markets. Insurance linked securities have proven to be one of the most successful manifestations of this convergence and how insurance related risk can be transferred to capital market investors.
The concept of securitizing insurance risks became established in the mid-1990s in the wake of significant pressure on capacity in the non-life insurance market and an increased focus on capital management across both the life and non-life insurance sectors. The most prominent form of insurance-linked securities (ILS) is the catastrophe bond (cat bond), a structure that was borne out of a desire to broaden reinsurance capacity in the aftermath of Hurricane Andrew in 1992 and the impact this loss had on the availability and price of property reinsurance.
As the fear of catastrophes hover in the minds of people all over the world due to global warming and climate changes, it is opportune time for developing countries like India to develop catastrophe risk financing instruments to facilitate re(insurance). In the „Economic survey 2010‟, there was a special reference made to introduce cat bonds in India. Even in the phase of good economic growth, India faces several challenges in the form of widespread floods and storms all over the country. In this context, it becomes important for India to introduce cat bonds to strengthen the insurance sector and transfer the peak catastrophe risk to capital markets.
KEYWORDS: Catastrophe bonds, Catastrophe risk financing and reinsurance. ______
INTRODUCTION
Insurance is a financial product, one of the oldest known to man, and has always been at the forefront of risk management. There has been much said about the convergence of the insurance industry with the capital markets. Insurance linked securities have proven to be
one of the most successful manifestations of this convergence and how insurance related www.zenithresearch.org.in
risk can be transferred to capital market investors.
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The concept of securitizing insurance risks became established in the mid-1990s in the wake of significant pressure on capacity in the non-life insurance market and an increased focus on capital management across both the life and non-life insurance sectors. The most prominent form of insurance-linked securities (ILS) is the catastrophe bond (cat bond), a structure that was borne out of a desire to broaden reinsurance capacity in the aftermath of Hurricane Andrew in 1992 and the impact this loss had on the availability and price of property reinsurance.
As the fear of catastrophes hover in the minds of people all over the world due to global warming and climate changes, it is opportune time for developing countries like India to develop catastrophe risk financing instruments to facilitate re(insurance). In the „Economic survey 2010‟, there was a special reference made to introduce cat bonds in India. Even in the phase of good economic growth, India faces several challenges in the form of widespread floods and storms all over the country. In this context, it becomes important for India to introduce cat bonds to strengthen the insurance sector and transfer the peak catastrophe risk to capital markets.
REVIEW OF THE LITERATURE
Edward F Torres has observed that capital markets solutions still represent only a small percentage of the overall reinsurance market. The capital markets have proven to be adaptable to changing circumstances and will continue to pursue opportunities in the insurance sector as long as they offer relatively attractive returns. One can envision cat bond participation on the top layer of many reinsurance programs, providing seamless protection to insurers. One can expect reinsurance programs, or layers, to be rated by S&P, much like bank debt, as a means to facilitate greater liquidity.
Paul Feldman in his editorial column has stressed about the deal arranged in May for the Oriental Land Company in Japan, the first time a non-insurer went to the capital markets for property-casualty risk financing. He further adds that such deals may become common phenomenon in the future.
J David Cummins reviews the current status of the market for catastrophic risk (CAT) bonds and other risk-linked securities. He feels CAT bonds appear to be priced competitively with conventional catastrophe reinsurance and comparably rated corporate bonds. CAT bonds have grown to the extent that they now play a major role in completing the market for catastrophic-risk finance and are spreading to other lines such as automobile insurance, life insurance, and annuities. CAT bonds are not expected to replace reinsurance but to complement the reinsurance market by providing additional risk-bearing capacity
J David Cummins, Mary A Weiss have focused on the convergence of the financial services industry, particularly the capital markets and (re)insurance sectors. Convergence has been driven by the increase in the frequency and severity of catastrophic risk, market inefficiencies created by (re)insurance underwriting cycles, advances in computing and communications technologies, the emergence of enterprise risk management, and other
factors. www.zenithresearch.org.in www.zenithresearch.org.in
Peter Madigan has observed that despite the severity of seismic events, the impact on reinsurance providers and catastrophe bond sponsors is expected to be negligible, given
that none of the afflicted areas has any significant disaster protection written against them.
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Colleen McCarthy explores the volume in cat bond market in America. Experts estimate total 2010 cat bond issuance will reach $5 billion compared with about $3.5 billion previous year, which they say demonstrates healthy growth after the financial crisis
Meg Green has observed that catastrophe bond market has warmed up in 2009 and the insurance-linked securities have been restructured to include better protections for investors. In addition investor demand for cat bonds remains strong as they ultimately proved to not be correlated to the ups and downs of the financial market
David Koegel has emphasized that insurance companies have relied historically on the reinsurance market for insurance risk transfer. The evolution of insurance-linked securities (ILS) has facilitated a means to transfer risk for a wider range of issuers and has expanded the risk-taking segment to a broader range of institutional investors. A popular form of ILS used by property and casualty insurers is the catastrophe bond. Improvements in risk transparency and modeling accuracy for the overall practice of securitization could spur further growth and widening of ILS applications.
Chi Hum has explored that reinsurance market conditions, rather than financial market turmoil, contributed to the decline in catastrophe bond issuances in the first half of 2008. Although only part of the drop in issuance activity can be attributed to the meltdown in global financial markets, the issue of counterparty credit risk arose directly as a result of the loss of a major financial institution. As the catastrophe bond continues to mature, issuers are likely to advance their thinking from the basic features and benefits of this risk transfer tool by integrating
RESEARCH GAP
After studying the literature, it is clear that most of the analysis on catastrophe risk financing is based on finding a suitable model or finding out an efficient method to transfer the risk of catastrophes to capital markets. The present study focuses on finding the gravity of economic damages according to continents and the need for introducing catastrophe bonds in emerging India.
OBJECTIVES
1. To make a study of overall loss and insured loss by continents due to catastrophes for
the last five years.
2. To study the damages due to major catastrophes in India over the last 110 years.
3. To make a comparative analysis of the economic damages in India with USA where cat bonds are issued.
ANALYSIS AND INTERPRETATION
The world has suffered severe economic losses due to catastrophes over the last five years. The impact of loss is highest in developing and poor countries where the density of insurance coverage is lower compared to developed countries. The study has focused on catastrophe losses over the last five years to emphasize the need for insurance coverage in www.zenithresearch.org.in catastrophe prone areas. The chart no. 1 indicates the lack of insurance density in
catastrophe prone regions all over the world.
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CHART NO.1: CHART SHOWING THE OVERALL LOSS AND INSURED LOSS WORLDWIDE FROM 2004-2009
Source data: Munich re
From the above analysis, it can be interpreted that the loss due to catastrophes very high as compared to insured loss. There is significant percentage of loss above the insured loss which has to be either borne by the individual or the economy. The lack of insurance density leads to severe economic damage to the infrastructure of the country.
As evident from chart no. 2, the overall losses are dominated in North America and Asian continents. It can be clearly seen that the North American countries are developed economies and the insurance density is also high.
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CHART NO.2: CHART SHOWING THE PERCENTAGE OF TOTAL OVERALL LOSSES BY YEAR
Source data: Munich re
The chart no. 3 indicates that North American and Europe are successful in covering the risk of overall loss by insurance. It also indicates that Asia lags behind due to lack of penetration of insurance awareness among people.
CHART NO. 3: CHART SHOWING THE PERCENTAGE OF TOTAL INSURED LOSSES BY YEAR
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Source data: Munic re
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In the Indian context, the majority of the economic damage has been consistently suffered due to floods and storms. The majority of the catastrophes are due to geographic diversity. The chart no. 4 indicates that India is worst hit by floods and storms over the last 110 years. The Country should find alternative ways to manage the fury of nature and the reduce the damage done to the economy.
CHART NO. 4: CHART SHOWING ECONOMIC DAMAGES DUE TO TOP 10 NATURAL DISASTERS IN INDIA FROM 1900 TO 2010
35000000 30000000 25000000 20000000 15000000 10000000 5000000 0
Economic damages (000 $)
Source data: EM-dat
Now, it is important for developing economy like India to find alternative ways to manage catastrophe risk. The present study makes a correlation analysis of economic damages due to different catastrophic events in India with USA over the last 110 years.
TABLE 1: TABLE SHOWING NATURAL DISASTERS IN INDIA FROM 1900 TO 2010
Catastrophe Frequency Killed Total Affected Damage (000 $)
Drought 14 4250320 1061841000 2441122
Earthquake 25 61705 27265183 4079900
Tsunami 1 16389 654512 1022800
Extreme www.zenithresearch.org.in 46 13621 250 544000
temperature
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Storm 151 164112 93287482 11051900
TABLE 2: TABLE SHOWING NATURAL DISASTERS IN UNITED STATES FROM 1900 TO 2010
Catastrophe Frequency Killed Total Affected Damage (000 US$)
Drought 9 - - 7135000
Earthquake 38 2825 71347 41040770
Tsunami 2 61 - 900
Extreme 32 5016 13585000 temperature flood 153 2802 12117431 49637260 storm 504 28512 13458878 435624510
Source data : EM-dat
The analysis shows that the correlation coefficient between economic damages is 0.187 and the majority of the damage in USA is suffered by storm. If we exclude the impact of storm, the correlation coefficient is 0.755 which shows a positive correlation with India. The following points can be derived from the analysis;
1. There is lack of insurance penetration in Asia to deal with catastrophe risk. It can be attributed to lack of reinsurance mechanism for the primary insurers.
2. India needs to find alternative ways to deal with economic losses due to catastrophes. The Insurance industry should improve the insurance density in
catastrophe prone areas.
3. India should also introduce catastrophe bonds to help the insurance companies to transfer the risk of major catastrophe to capital markets.
CONCLUSION
The catastrophe bond market has improved over the last decade. The amount of risk capital raised through cat bonds has been growing and the bonds now account for a significant share of the property-catastrophe reinsurance market in developed countries. India too has significant exposure to catastrophes due to geographic diversity. Now, it is
imperative for India to rise up to meet the challenges of major catastrophes. www.zenithresearch.org.in www.zenithresearch.org.in
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REFERENCES
Chi Hum (2009),”Cat Bonds: Weathering the Storm”, Canadian Underwriter. Don Mills, 76(3), 26-29
David Priebe(2009), “A defining year for Cat bonds”, Reinsurance. London, 8
Edward F Torres (2007), “Are capital markets here to stay?”, Journal of Risk Management, New York, 54(8), 26-31
Geoffrey Etherington III, Marc S Voses (2004), “Cat Bonds & Risk Modeling”, Risk Management, New York, 51(12), 44
Goran Mijuk(2008),”A Savvy Hedge Against Disaster?”,Barron's. New York, 88(26), 49- 51
Hardeep Dhillon (2009),”Cat bond index boost for insurance-linked market”, Credit. London, 10(7), 12-13
J David Cummins (1999), “The insurance link to securities: Securitization, part I”, Journal of Risk Management, New York, 46(8), 17-20
J David Cummins (2008), “Cat bonds and other risk-linked securities: state of the market and recent developments”, Risk Management and Insurance Review, Mount Vernon, 11(1), 23-48
J David Cummins, Mary A Weiss (2009), “Convergence of insurance and financial markets: hybrid and securitized risk-transfer solutions”, Journal of Risk and Insurance, Malvern, 76(3), 493-546
Jin-Ping Lee, Min-Teh Yu (2002), ” Pricing default-risky CAT bonds with moral hazard and basis risk”, Journal of Risk and Insurance, Malvern, 69(1), 25-45
Meg Green (2009),”Cat Bonds Are Growing”, Best's Review, Oldwick 110(7), 61-62
Paul Feldman (1999),”The new deals”, Risk Management. New York, 46(8), 4
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A COMPARATIVE STUDY OF SELF-CONCEPT AND SELF- CONFIDENCE OF SIGHTED AND VISUALLY IMPAIRED CHILDREN
DR. VIKRANT MISHRA*; MS. ASHA SINGH**
*Assistant Professor, Shivalik College of Education, Aliyaspur, Ambala. **Former M.Ed. Student, Lingaya’s University, Faridabad.
ABSTRACT
The visually impaired children are an integral part of our society. They are very much neglected in our society. Their need and problems should be understood well and measures should be taken in order to make their lives more easy and motivational. In this paper the Self- Concept and Self-Confidence of the Sighted Children and the Visually Impaired Children is assessed. Self- Concept and Self- Confidence are the two very important things which help in overall development of Personality. So, an effort has been carried out to know more about the Visually Impaired Children. ______
INTRODUCTION
The eye is a very important sensory organ, which accounts for a very large fraction of the total informations available to a person through his senses. Thus, lack of sight makes the individual aloof from the physical world. This sensory, social and physical isolation creates anxiety and adjustment problems in the personality of blind subjects in the society.
Though the government and many NGOs run institutes for the visually impaired children but in the age of science, this world is a place of competition and complexities. Individual with all the sense organs intact also have to face lot of problems of adjustment, which become hurdle in the achievement of their goals. This further creates shades of anxiety in them. The condition of the individual becomes more deplorable and serious when she/he suffers from visual impairment. Since, visually impaired children also have to live in society, it may affect their psychological processes. The researcher is interested in studying the adjustment and anxiety levels of visually impaired children, so that something would be done for their upliftment. The blind person wants to be treated like any other individual. Most blind people do not seek pity or even unnecessary help though they may need assistance in some situations. Though, they appreciate the sensitivity of others but they want to be reminded of their similarities rather than their differences. Visual impairment seems to evoke some awkwardness because blindness is visible. The visually impaired person has a variety of symbols- white cane, darkened glass, a sighted guide.
Self-concept and self-confidence are two important elements of a human being. These elements also play important role in the proper growth and development of disabled
children especially Visually Impaired children. A very primitive aspect of self-concept www.zenithresearch.org.in www.zenithresearch.org.in
involves perceptions of the poor self. This important initial core of early development of
self concept as well as self-confidence continues throughout the life span. The degree to
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Visually Impaired children develop unhealthy poor self-concept as well as self-confidence. The foundation, of poor self-concept and Low self-confidence among Visually Impaired children are usually laid at home. Relationship of family members within the family, relatives, neighbors play very important role in the construction of Visually Impaired children’s self-concept and self-confidence.
Warm acceptance of Visually Impaired children and identification of their strength are especially important in school. Such acceptance should include whatever language the children bring to school. Typically, a disadvantaged child comes to school with a positive self-concept (Soars and soars, 1969). It from the outset the teacher focuses on his lack of knowledge in the areas related to middle class experiences and pointedly rejects his language, the pattern of defeat and alienates is fairly well assured, for the child is very likely to develop a poor self-concept.
OBJECTIVES OF THE STUDY
1. To study the level of self-concept of sighted and visually-impaired children.
2. To study the level of self-confidence of sighted and visually-impaired children.
3. To find out the difference in self-concept of sighted and visually-impaired children.
4. To find out the difference in self-confidence of sighted and visually-impaired children.
5. To find out the difference in self-concept of male and female.
6. To find out the difference in self-confidence of male and female.
HYPOTHESIS OF THE STUDY
1. The visually-impaired children might have poor self-concept.
2. The visually-impaired children might have low self-confidence.
3. There exists significant difference in the self-concept of the sighted and the visually-impaired children.
4. There exists significant difference in the self-confidence of the sighted and the visually-impaired children.
METHODOLOGY
The descriptive survey method of research was followed in the present study.
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SAMPLE
A total sample of 200 students which consisted 100 sighted and 100 visually-impaired children studying in the different schools of Delhi were selected for the study.
TOOLS USED
Self-concept inventory constructed and standardized by Mohsin (1979) was used to measure the self-concept. The self-concept inventory has a total of 48 items.
Self-confidence Inventory constructed and standardized by Pandey (1983) was used to measure the self-confidence. It has a total of 60 items.
RESULTS AND DISCUSSIONS
4.2.1 AN OVERVIEW OF SELF-CONCEPT OF VISUALLY IMPAIRED STUDENTS
It is with a view to have a global idea about the self-concept of Visually Impaired and Sighted children, the data related to different levels of self-concept has been given wide table no. 4.2.1. This would provide a general picture of Visually Impaired and Sighted children with regard to this variable i.e. self-concept.
TABLE-4.2.1
SELF-CONCEPT OF VISUALLY IMPAIRED STUDENTS
+Raw Scores Subjects Interpretation
39 and above 4 Very High Self-Concept
29-38 37 Average Self-Concept
28 and below 59 Poor Self-Concept
It can be seen from table 4.2.1 that out of a total of 100 subjects in the study, 4 have scored 39 and above, that is to say that they fall in the category of very high self-concept. 37 percent subjects in the study have scored between 29 to 38 reflecting average self-concept. A vast majority of i.e. 59 percent subjects in the study scored between 28 and below meaning thereby that they hold a very poor self-concept about themselves. This can be interpreted that more than 50 percent subjects have poor self-concept and 1/3 have average self-concept. There are only 4 respondents who have very high self-concept. The group as a whole indicates that physical disabilities as such lower the self concept of individuals.
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4.2.2 AN OVERVIEW OF SELF-CONCEPT OF SIGHTED STUDENTS
TABLE 4.2.2
SELF-CONCEPT OF SIGHTED STUDENTS
Raw Scores Subjects Interpretation
39 and above 9 Very High Self-Concept
29-38 73 Average Self-Concept
28 and below 18 Poor Self-Concept
It can be seen from table 4.2.2 that out of a total of 100 subjects in the study 9 subjects have scored 39 and/ or above, that is to say that they fall in the category of very high self- concept. A vast majority of 73% subjects in the study have scored between 29 and 38 reflecting average self concept. 18 respondents out of 100 have scored below 28 meaning thereby that they hold a very poor self-concept.
This can be interpreted from the above table that more than 2/3 of Sighted students have average self-concept and there are only 18 respondents who have poor self-concept.
It can be observed from tables 4.2.1 and 4.2.2 that Sighted students have higher self concept as compare to Visually Impaired students. The comparison between the two indicate that physical disabilities as such lower the self-concept of the individual.
In the light of this finding, the hypothesis formulated at the beginning of the study i.e. Visually Impaired students have poor self-concept stands accepted.
4.2.3 AN OVERVIEW OF SELF-CONFIDENCE OF VISUALLY IMPAIRED STUDENTS
TABLE-4.2.3
SELF-CONFIDENCE OF VISUALLY IMPAIRED STUDENTS
Raw Scores Subjects Interpretation
11 and below 1 Very High Self-Confidence
12 to 23 30 Average Self-Confidence
24 to 37 34 Poor Self-Confidence
38-49 35 Low Self-Confidence
49 and above 00 Very Low Self-Confidence www.zenithresearch.org.in
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Table 4.2.3 presents a general picture of the self-confidence score of Visually Impaired students. The table also shows the interpretation of raw scores. It can be seen from the table that 35 subjects in the study have low self-confidence. They have scored somewhere between 38 to 49 on the PSCI. About one third of the respondents have scored in 24 to 37 ranges thereby exercising average self-confidence. 30 subjects in the study have high self- confidence. There is only one subject who scored below 11 and below, holds a very high self confidence. As has been discussed earlier, the lower the score on PSCI, the higher in the self confidence.
Thus it can be interpreted that 35 respondents have low self concept, 34 percent have average self-concept and 30 percent have high self-confidence. A vast majority of 64 percent respondents have average to high self-confidence. Thus our hypothesis that visually Impaired students how low self-confidence gets rejected.
4.2.4 AN OVERVIEW OF SELF-CONFIDENCE OF SIGHTED STUDENTS
TABLE 4.2.4
SELF-CONFIDENCE OF SIGHTED STUDENTS
Raw Scores Subjects Interpretation
11 and below 11 Very High Self-Confidence
12 to 23 29 Average Self-Confidence
24 to 37 45 Poor Self-Confidence
38-49 14 Low Self-Confidence
49 and above 01 Very Low Self-Confidence
Table 4.2.4 presents a general picture of the self-confidence score of Sighted students. The table also shows the interpretation of raw scores. It can be seen from the table that 45
subjects in the study have average self-confidence. They have scored somewhere between
24 to 37 on the PSCI. About one third of the respondents have scored in 12 to 23 ranges thereby exercising average self-confidence. There are 11 subjects in the study who have very high self-confidence. Only 14 subjects come in the category of low self confidence. There is only one subject who scored 11 and below, holds a very high self confidence. As has been discussed earlier, the lower the score on PSCI, the higher is the self-confidence.
Thus it can be interpreted that 45 respondents have average self concept, 29 percent have high self-confidence and 11 percent have very high self-confidence. A vast majority of 85 percent respondents have average to very high self-confidence.
It can be observed from above tables that sighted students have very high self-confidence as compared to Visually Impaired students. The comparison between the two indicates that www.zenithresearch.org.in
physical disability affects the self-confidence of the individual.
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4.2.5 AN OVERVIEW OF DIFFERENCE OF SELF-CONCEPT OF VISUALLY IMPAIRED AND SIGHTED CHILDREN
It is with a view to have a global idea about the difference of self-concept of Visually Impaired and Sighted children that the mean, standard deviation and level of significance have been provided in table 4.2.5. This would provide a general picture of Visually Impaired and Sighted children with regard to this variable i.e. self-concept.
TABLE 4.2.5
SIGNIFICANCE OF DIFFERENCE BETWEEN SELF-CONCEPT OF VISUALLY IMPAIRED AND SIGHTED CHILDREN
Subject N M SD S.Ed. t L.O.S.
Sighted Children 100 31.86 5.43
1.0 4.51 Significant at .01 level
Visually Impaired 100 27.35 6.18
It can be observed from table 4.2.5 that mean and S.D. values for self-concept of Sighted students are found to be 31.86 and 5.43 respectively and that Visually Impaired students mean and S.D. value for self-concept are found to be 27.35 and 6.18. The‘t-ratio' of the self-concept between two groups is 4.51 which is significant at .01 level of significance. It suggests that Visually Impaired and Sighted revealed a significant difference in their self- concept. Thus our hypotheses are accepted that there exists significant difference in self- concept of Visually Impaired and Sighted children.
4.2.6 AN OVERVIEW OF DIFFERENCE OF SELF-CONFIDENCE OF
SIGHTED & VISUALLY IMPAIRED CHILDREN
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TABLE 4.2.6
SIGNIFICANCE OF DIFFERENCE BETWEEN SELF-CONFIDENCE OF VISUALLY IMPAIRED AND SIGHTED CHILDREN
Subject N M SD S.Ed. T L.O.S.
Sighted Children 100 28.66 9.0
1.2 3.6 Significant at .01 level
Visually Impaired 100 24.3 8.4
It can be observed from table 4.2.6 that mean and S.D. values for self-confidence of Sighted students are found to be 28.66 and 9.0 respectively and that Visually Impaired students mean and S.D. value are found to be 24.34 and 8.4. The‘t-ratio' of the self-concept between two groups is 4.51 which is significant at any acceptable level of significance i.e. at .01 level of significance and at .05 levels. It suggests that visually Impaired and physically non challenged revealed a significant difference in their self-confidence. Thus our hypotheses that there exists significant difference of self confidence of Visually Impaired and Sighted children is accepted.
4.2.7 AN OVERVIEW OF DIFFERENCE OF SELF-CONCEPT OF MALE AND FEMALE STUDENTS
TABLE 4.2.7
SIGNIFICANCE OF DIFFERENCE BETWEEN THE SELF-CONCEPT OF MALE
AND FEMALE
Subject N M SD S.Ed. t L.O.S.
Male 120 29.88 9.25
1.0 1.1 Not Significant at .01 level
Female 80 28.7 5.37
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It is clear from table 4.2.7 that mean and S.D. value for self concept of male students are
found to be 29.88 and 9.25 respectively and that female students mean and S.D. values are
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4.2.8 AN OVERVIEW OF DIFFERENCE OF SELF-CONFIDENCE OF MALE AND FEMALE STUDENTS
TABLE 4.2.8
SIGNIFICANCE OF DIFFERENCE BETWEEN THE SELF-CONFIDENCE OF MALE AND FEMALE
Subject N M SD S.Ed. t L.O.S.
Male 120 28.4 8.61
1.12 1.78 Not Significant at .01 level
Female 80 26.4 7.30
Again, it is evident from table 4.2.8 that mean and S.D. value for self-confidence of male students are found to be 28.4 and 8.61 respectively and that female students mean and S.D. values one found to be 26.4 and 7.30. The 't-ratio' of the self-confidence between two groups are 1.78 which is not acceptable at any level of significance. It shows that both the groups have no significant differences in their self-confidence. Thus, our hypothesis that there exists significant difference of self-confidence of male and female is rejected.
MAIN FINDINGS i) By and large Visually Impaired students are found to have low self-concept. 59 percent Visually Impaired students have poor self-concept and 4 percent students
are found to have very high self-confidence. ii) It has been found that Sighted students have higher self-concept as compare to Visually Impaired students. A vast majority of 73 percent subjects in the study have scored between 29 and 38 reflecting average self-concept. 18 respondents out of 100 have scored below 28, mean thereby that they hold a very poor self concept. 9 subjects in the study have hold a very high self-concept. iii) On the variable of self-confidence, Visually Impaired students are found to be have average self-confidence. A vast majority of 64% respondents have average to high self confidence, 35 respondents have very low self-confidence.
iv) It has been found that Sighted students have higher self-confidence as compare to www.zenithresearch.org.in www.zenithresearch.org.in
Visually Impaired students. There are 74 subjects who have average to high self
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confidence, 11 subjects have shown a very high self-confidence. There are only 15 subjects who have low self-confidence.
V) On the variable of self-concept, it has been found that there is a significant difference self-concept of Visually Impaired and non-challenged students. 'The mean score of self-concept of Sighted children (31.86) is higher than Visually Impaired children (27.35). vi) On the variable of self-confidence, it has been found that there is a significant difference in the self-confidence of Visually Impaired and non-challenged students. The mean score of self-confidence of Sighted children (28.66) is higher than Visually Impaired children (24.34). vii) There exists no significant difference of self-concept of males and females. The results shows that the' t-ratio' between two groups are not significant at any acceptable level of significant i.e. .01 and .05. viii) On the variable of self confidence, it is evident that there is no significant difference between male and female. The 't-ratio' between two groups are not significant at any level of significance i.e. .01 and .05 level.
EDUCATIONAL IMPLICATIONS a) The child can be expected eventually to accept the disability and live a happy life. b) Visually Impaired students may be provided an education in anyone of several different settings, depending on the type and severity of the condition. c) By giving ample opportunity to develop educationally, socially, emotionally, many Visually Impaired children are able to make a healthy self-concept and strong self- confidence to their impairments. d) Behavior modification techniques have been found to be especially valuable in helping Visually Impaired children to achieve and perform at a maximum level.
SUGGESTIONS
Following suggestions can be given for the further study. i) The present study is limited to the variables like self concept and Self-confidence. Some more psychological variables can be added to conduct such a study on the special needs children. ii) A similar study can be conducted by drawing samples from other districts making it more comprehensive. iii) In the present study the main source of the data are the tests. A case study approach can also be adopted for conducting research on the Visually Impaired children an
in-depth analysis. www.zenithresearch.org.in
iv) The sample size can be increased for getting good/appropriate suitable results.
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REFERENCES
Allport, G.W. (1961). Traits Revisited. American psychologist, 21, 1-10.
Best, J.W. and James, K.K. (1992). Research in Education (6th ed.). N. Delhi: Prentice Hall of India Pvt. Ltd.
Byrne, D., Nelson. D. and Reeves, K. (1966). Effects of Consensual Validation and invalidatin on attraction as a function of verifiability. Journal of Experimental Social psychology, 2, 98-107.
Cecil, R.R. and Lasler, M. (1987). Encyclopedia of Special Education, New York, A Willey Inter science Publication.
Dermer, M. and Theiel, D.C. (1975). When Beauty may fail. Journal Personality and Social Psychology, 31, 1168-1176.
Geetha, T.M. (2000). Study of Adjustment Problems of Handicapped Children of Secondary School in relation to the academic achievement in Karnatka State with reference to Chitradurga, Dharwad and Bellary District. Dissertation Abstract. Indian Educational Abstracts, National Council of Education Research and Training. Vol. 2, No. 1.
Keener. N.D. (1985). An investigation of the effect of tutoring pre-school handicapped children upon the self-concept and academic achievement of 5th and 6th grade elementary school students. Dissertation Abstract International(A). Volk. 47. No. 4.
Mourly, G.J. (1960). The Science of Educational Research. New Delhi, Ramnagar: Eureasica Publishing House Pvt. Ltd.
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IMPACT OF SOCIAL ORGANIZATIONS IN DEVELOPMENT OF EDUCATION IN HARYANA IN 19TH CENTURY
NAVNEET KAUR*
*Research Scholar, Department of History, Singhania University, Jhunjhunu, Rajasthan.
ABSTRACT
It is now increasingly felt by all educated States that education emerges as a natural characteristic of the human societies. On one hand, it is subject to society and on the other, it helps the society to mobilize its productive energies by ensuring the development of the human resources. Though in the present time, Haryana is one of the fastest growing States of India and has become a hub of education. There was a time in the beginning of 19th century when education facilities were far from satisfactory. In Haryana where peasants lived in a great majority, the number of schools was very less. There were many reasons for the educational backwardness of Haryana. It can be said that partly the Government and partly the people, especially the villagers were responsible for such a dismal situation regarding education. It was only the preaching of social reform movements like Arya Samaj, Indian National Congress, Sanatan Dharma Sabha which made a number of middle class persons especially in towns to send their wards to schools. The schools were found only in big towns and there too, the position was not good. It was heartening to note that several private agencies came forward to do this noble work. The study is historical in nature based upon the contribution of various social organizations in development of education in Haryana in 19th century in Haryana. ______
INTRODUCATION
The people of Haryana did not understand the usefulness of education. They required extra hands for their professional pursuits at home and in agricultural land and thus, could not afford to send their children to school. They could not afford to pay heavy fees etc. as hardly they had any cash available with them every month. Haryana was economically poor where almost in every third or fourth year, there was a drought or famine.
Geographically, Haryana was not a rich territory. The rainfall was also inadequate and scanty. The colonial rule operated harshly and brought utter ruination to the people. As a result, Haryana was economically poor, social fragmental and educationally backward. The Government had administrative apathy towards the people of Haryana. The private institutions also did not play any effective role here in this field and there was social inertia in the people towards education.
The new education introduced by the British in India was quite unique and significant. Though in the beginning it was introduced to meet the needs of the British yet it began to spread widely in the Indian sub-continent inaugurating in dawn of new era. The early pioneers of India‟s freedom struggle duly acknowledged the advantages of the new education in proper perspective. It was a period of social and religious awakening and the
growth of a new spirit leading to social-religious movements. These movements with www.zenithresearch.org.in regional differences were more or less identical in character because the focus was on the
socio-economic and religious upliftment of the society. These movements produced a
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LITERATURE REVIEW
The review of existing literature on the subject is immense importance for a researcher because it helps him in many ways such as knowing the difficult areas and getting a clear idea of one‟s own research. It also helps to know the usefulness in carrying out the study in comparison to studies already conducted. Although various studies have been conducted at macro and micro levels, cover many aspects of problems of education in general and social organizations in particular. It has been observed that a very few studies have been conducted regarding contribution of social organizations in the development of education in the region of Haryana.
NEED OF THE STUDY
Efforts of British to promote education for their interest and community based education in India particularly in Punjab; efforts of social reforms to promote education were important aspects of the 19th century. Though in the beginning it was introduced to meet the needs of the British yet it began to spread widely in the Indian sub-continent inaugurating in dawn of new era. The early pioneers of India‟s freedom struggle duly acknowledged the advantages of the new education in proper perspective. The focus of this study is to know the contribution of social organizations in education progress during the study period.
OBJECTIVES OF THE STUDY
The specific objectives of the study are as follows:
1. To find out the reasons for the neglect of education in the region of Haryana.
2. To study the contribution by different social organizations in the development of education in Haryana.
3. To identify the problems faced by these organizations and the measures taken to
meet them.
RESEARCH METHODOLOGY
The present study is limited to Haryana State. As in 19th century, Haryana was part of Punjab State and was not created as separate State, the districts related to present Haryana State have been covered for the study. Data have been collected from various sources such as textbooks, periodicals, newspapers, research journals, District Gazetteers, NCERT Library (New Delhi), Central Library. Library of Kurukshetra Uninversity, Kurukshetra, M.D. University, Rohtak, Panjab University, Chandigarh. In addition, the State Archives of Haryana, Panchkula was also consulted for the record.
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DISCUSSION
1.1 THE ARYA SAMAJ
The Arya Samaj was revivalist in form and reformist in content.iii It exercised a profound influence in Haryana. Originally launched in the second half of the 19th centuryiv, it became popular among the Hindusv particularly young menvi. According to the official view, it was a Hindu reformed church representing the reaction of Hinduism against the Christian religion, Western science and Western dominationvii. Swami Dayanand, its founder, got a fertile land for his ideology not at his birthplace at Tankara (now in Gujarat) but, it the towns of Punjab and in rural areas of Haryana. In his speeches he stressed idolatry, child-marriage and propagated the re-marriage of widows and female education. He praised Vedas as a source of eternal knowledge and criticized Christianity and the activities of their Missionaries. He also preached that the Vedas inculcated monotheism and focused Hinduism which is based upon the Purans. He accepted Shashtras as the main tool of proselytization.
The first place in Haryana visited by Swami Dayanand was Ambala.viii He condemned the social and religious weaknesses of the orthodox Hinduism. Swami Dayanand also visited Rewari at the request of Rao Yudhisterix, the Ahir leader and the descendent of Rao Tula Ram. Later he became the disciple of Swami Dayanand. Swami delivered eleven religious discoursesx and took part in discussions. He again made violent attack on Puranic gossips, incarnatism etc. At this appeal of Swami Dayanand, a Goshala was established at Rewari. Perhaps, it was the first Goshala in Northern India.xi
After the death of Swami Dayanad, the Arya Samaj soon became popular in Haryana by the efforts of Lala Lajpat Rai, Pandit Basti Ram, Lala Chandu Lal, Dr. Ramji Das and Rao Yudhister and his family members. Its branches were established at Rohtak and Karnal. In the year 1886, Jagadhri Arya Samaj was started by Pandit Lekh Raj of Punjab. In 1890 at Rewari, the Arya Samaj was established by the efforts of Rao Yudhister. In 1891, the Ambala Cantonment Arya Samaj was established under the presidentship of Sardar Kala Singh. In nutshell, all the prominent Arya Samajs in Haryana like the Arya Samajs at Panipat, Rohtak, Hissar, Narnodh (Hissar), Milakhpur (Hissar), Sinkpathry (Karnal), Jind etc. were established during the 1890‟s.xii
Perhaps in Haryana, the expansion of Arya Samaj was on more sound footing than elsewhere in Punjab.xiii In Haryana, Hinduism being surrounded and infiltrated by the Islam and Sikh faith, was not as rigid as it was elsewhere.xiv The caste system was less rigid in comparison to other parts of the country. The Brahmans were unable to dominate large and powerful groups like the Jats.xv The Brahmans were also not so rigid. Perhaps, it was due to the absence of big towns and cities in Haryana that the rural masses had easily been attracted by the philosophy of Dayanand. The Arya Samaj made strenuous efforts to raise the social status of the lower communities.
It also made efforts to raise the status of the untouchables. It took interest in the social uplift of the lower and oppressed classes. According to them, it was mainly due to bad environment, association, and training resulting deterioration of character.xvi Later, it
started a Shudhi movement to prevent low caste Hindus from embracing Christianity or www.zenithresearch.org.in
Islam and to purify them for their inclusion in Hinduism.
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Besides the religious and social sphere, in education also, some efforts were made by the Arya Samaj. The Gurukul System of the Arya Samaj attracted the people of Haryana. The first Gurukul was established at Gujranwala in Punjab on 16th May 1900 which was transferred later on to Kangri (Haridwar). After some time, Gurukul in Haryana was established at Kurukshetra. Thus, it can be said that it was both social and national movement.xvii Social and educational activities of the Arya Samaj through lectures, meetings and pamphlets contributed to create the climate of public opinion. It encouraged the reading of the Vedas and attacked Purans and orthodox Hinduism. It created a feeling of self-reliance, faith and patriotism among the youth and in a way it had a big impact on the Indian mind and prepared the ground for nationalism.xviii
1.2 THE INDIAN NATIONAL CONGRESS
The Indian National Congress was established on 28th December, 1885 which created a feeling of nationalism and patriotism. In the first session of the Congress in 1885, certain principles were laid down. It was declared that the Congress aimed at promotion of mutual friendship, eradication of provincial prejudices, strengthening of national unity, encouraging fullest discussion on important and pressing social questions of the day and determining the line of action for the native politicians to work in the public interest.xix Moderation was the keynote of the Congress and its members were very loyal to the Crown. They wanted to liberalize the British administration by passing resolutions appealing to the administration in India and winning public opinion in England. It wanted that the basis of the government should be widened and people should have their proper and legitimate share in it.xx These Congressmen spoke highly of British justice and also “they spoke of the Un-Britishness of the British rule in India.”xxi The Congress appealed to the British sense of justice and fair play.
Youths in colleges were greatly influenced by the revolutionary ideas of Byron, Rousseau, Burk, Milton, Bacon, Wordsworth and others. The educated Indian people were imbued with the ideals of sacrifice, national morality and independence. They were perturbed over the British rule in the country and they began to dream for freedom. This situation led to generate nationalism in education. The Indians intensely realized the need of education and thought that education would be a good tool for obtaining national freedom. Thus, the expansion of education was accelerated by private enterprises under the control of Indians. High schools began to be upgraded into colleges and a number of new colleges were also established. Several great personalities like R.P. Paranjape, Bal Gangadhar Tilak, Triplankar, Ayanger took the work of education in their hands. Maharshi Dayanand Saraswati contributed in the field of education and will remain immortal in India. He established a number of D.A.V. colleges in northern part of the country. He tried to remove the evils of Hindu society and religion through his educational ideals.
The people of Haryana were not wholly unaware of the Indian political scene even before the formal birth of the Indian National Congress. In the year 1884, on Surendernath Banerjea‟s visit to the northern region, the residents of Ambala gave him a rousing reception at railway station. A society called Anjuman Rafa-i-am met Surendernath Banerjea at Ambala railway station and according to directions, convened a meeting in the premises of Government High School, Ambala. This meeting enthusiastically attended by more than 300 persons belonging to various castes, creeds and communities like Hindus, www.zenithresearch.org.in xxii
Mohammandans, Sikhs, Christians, Jains and others. . His visit gave a great impetus to
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However, the Congress was not popular in Haryana. It was due to the fact that educationally Haryana was one of the most backward areas of Punjab Province. The educational facilities were not available and a vast number of the people were uneducated. There was not even a single college in Haryana and only a few could get the opportunity to go either to Lahore or Delhi for higher education. Even the number of High schools up to 1920 was 31 only.xxiv With the slow growth of education, a little progress was made in literature and press. Thus, it can be said that perhaps, the educational backwardness was one of the main reasons for the lesser influence of the Congress. Similarly, Haryana being mainly rural in character was away from the political activities of the country. Ninety percent of the people of Haryana were living in 6,478 villages of Haryana. There was no city in Haryana in the modern sense and there were only 30 towns with a population of more than 10,000. There were no enough means of transport and communication. The villagers were dominated by land-owing castes such as Jats, Rajputs, Ahirs, Gujars, Meos and Ranghars. They were extensively agriculturists and had little interest in political matters.xxv
The Congress gained some ground among the few urban belts where lawyers and businessmen were living mostly Hindus. Among the Hindus, the Arya Samaj and the Sanatan Dharma Sabha were the only notable societies in Haryana.xxvi In the beginning, their members were active mostly in their social and educational programmes. The Arya Samaj did not join the Congress and not participate in the political life of Haryana. The Muslim community refused to join in a national organization, but in the beginning they did not oppose the Congress.
1.3 THE SANATAN DHARMA SABHA
Like the Arya Samaj, the other society of note was Sanatan Dharma Sabha which was founded by Pandit Din Dyalu Sharmaxxvii of Jhajjar. In the year 1886, it was first established at Jhajjar and then spread out in the various parts of the province. Its main objectsxxviii were the reformation and preaching of the Sanatan Dharma, the eradication of the prevailing social evils, the encouragement of the Sanskrit and Hindi languages, the opening of the educational institutions and inculcating an urge for social service. Its basis aspects were the respect for Gods and Goddesses and faith in the theory of incarnation. Perhaps, it would be incorrect to say that its origin took place as a reaction to the Arya Samaj. To fulfil its mission, a number of its branches were established at prominent town and cities of Haryana like Bhiwani, Hissar, Sirsa, Karnal, Kurukshetra, Safidon, Rewari, Palwal, Kaithal, Rohtak, Beri and Gurgaon.xxix
The Sanatan Dharma Sabha became popular movement in Haryana during the last decade of the 19th century. In educational sphere, a number of Sanatan Dharma Schools and later colleges were established. Din Dayalu Sharma helped in establishing some of the privately managed institutions like Hindu College at Delhi, Sanatan Dharma College at Lahore (now at Ambala Cantt), Visudhananda Vidyalaya at Calcutta and Marwar Vidyalaya at Bombay. The Sanatan Dharma Sabha also propagated the study of Sanskrit and Hindi. Some
Sanskrit pathshalas were also established. People were advised to use Hindi in courts. It www.zenithresearch.org.in encouraged the establishments of the libraries and reading rooms. It opposed social evils
like the dancing of the prostitutes at marriages, child-marriage, use of tobacco etc. They
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Table I elaborates that illiteracy of high magnitude prevailed among the population of school going age. In Haryana, Ambala showed good progress in enrolment of scholars followed by the district Karnal and Rohtak. The detail of number of schools and students in Haryana from 1890-91 to 1900-01 is given in the Table I. The Table I shows that Ambala had 136 schools imparting education to 10,277 scholars. It was the maximum number in Haryana. However, Karnal was the most neglected district having 69 schools educating 2,483 schools only. In Rohtak and Hissar district, the number of schools declined in year 1900-01 but, there was appreciable increase in the number of scholars to 5,097 and 5,085 respectively. Ambala district showed some increase in the number of schools which rose to 180 but the number of scholars declined to 9,133.
TABLE I
NUMBER OF SCHOOLS AND STUDENTS IN HARYANA FROM 1890-1900
t. t.
Year
District Schools Schools Schools
English Govt. Govt. English Govt. English
No. of Schools of No. Schools Aided
No. of Students of No.
attendingschools
Vernacular Gov Vernacular Vernacular Aided Aided Vernacular Ambala 1890-91 136 10277 3 108 23 2
1900-01 180 9133 - - - -
Karnal 1890-91 69 2483 6 - - -
1900-01 203 5393 - - - -
Rohtak 1890-91 132 3380 - - - -
1900-01 98 5097 - - - -
Hissar 1890-91 112 3636 - - - -
1900-01 105 5085 - - - -
Gurgaon 1890-91 116 4693 - - - -
1900-01 128 5139 - - - -
Source: See Imperial Gazetteer of India, Punjab, Vol. II for different districts and, District
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As far as the education of Mohammedans is concerned, it was comparatively slow. The typical high Mohammedans education consisted in reading the Quran and its appended traditions in the original Arabic, learning their meaning to a certain limited extent, though within as a rule any study of language itself, and acquiring familiarity in greater or less degree with Aristotelian system of logic which was curriculum inter-woven with the reason itself. The primary education of the Muslim was confined to learning parts of the Quran by rote, and perhaps be able to read through never to understand it. In exchange for this, the Mohammedans were not much willing to accept the purely secular education in English claimed to offer; which however, was to the Hindu or a Sikh very much what he would receive in his own schools, but put in a different form. Consequently, especially on the frontier when Mohammedan bigotry was the strongest, the greater number of Muslims children were found attending schools held at the mosques run by Mullas, themselves often grossly ignorant where there leant to read the Quran and to repeat parts of it by rote but not to understand it.xxxi
The number of Mohammedans in the secondary schools and colleges remained proportionately far below that of the Hindus and the necessity of special measures was realized.xxxii Consequent upon the suggestions given by the Education Commission for the problems of Muslim education, Jubilee scholarships, tenable in high schools and colleges were found by the Government and local bodies were authorized in the year 1887 to establish them for Middle schools. In addition, half the free or semi-free studentships were reserved for Mohammedan boys. The community itself also began to realize the necessity of self-help, and various societies were started which organized Anglo-Vernacular Mohammedan schools for higher Mohammedan education.xxxiii In the year, it was reported that there were more Muslim children at schools than Hindu but more than two-third of them attended private institutions of doubtful efficiency from an educational point of view. In public institutions, the proportion of Hindu to Muslims was roughly ten to seven.xxxiv Similar was the position of education among Mohammedans as noticed in the year 1901.
A large number of children who ought to have gone to school remained at home and they received no education at all. The Haryanavi society in the 1850s was predominantly rural in character and about ninety percent people were living in villages. The villagers had no interest in education and it was of little use for them in their daily life. It was also expensive and they could not afford it. In the year 1864, two big conferences were held at Delhi and Ambala to find out ways and means to popularize education among the lower
and middle strata of society and the womenfolk.xxxv More funds were made available for education and private agencies were also encouraged to open new schools.xxxvi It was heartening to note that several private agencies came forward to do this noble work. Various Hindu organizations opened the maximum number of schools, as may as 33 in the five districts, 11 each in Ambala and Hissar, six in Gurgaon, four in Karnal and one in Rohtak districts whereas the Sikh organizations started only one school in district Ambala during this period. Because of an army cantonment located at Ambala, the Christian organizations were responsible for starting one school in Ambala and two in Karnal. Muslim organizations did not lag behind and they opened five schools, one each in Ambala, Rohtak and Karnal districts and two in Hissar district. The detail of private organizations working for the promotion of education during this period is given in the
following Table II: www.zenithresearch.org.in www.zenithresearch.org.in
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TABLE II
PRIVATE ORGANIZATIONS WORKING IN HARYANA FOR THE PROMOTION OF EDUCATION DURING 19TH CENTURY
Hindu Sikh Muslim Christian District Organizations Organizations Organizations Organizations
Ambala 11 1 1 1
Karnal 4 1 - -
Hissar 11 2 - 2
Gurgaon 6 - - -
Rohtak 1 1 - -
Source: Punjab Education Report, 1900-01, Appendix, Table-62
As far as the British efforts are concerned to popularize education in society, F.L. Bryane, Deputy Commissioner of Gurgaon, once said “if a boy is educated, only one person is educated but, if a girl is educated, a whole family is educated.”xxxvii In the beginning, the villagers could not think of a girl going to attend school. Bryane observed in year 1860 that the Jats considered educating their daughters to be an ill omen,xxxviii they considered it as a „problem evil‟.xxxix It was only the preaching of social reform movements like Arya Samaj (founded on 10th April, 1875) which made a number of middle class persons especially in towns to send their girls to schools. Swami Dayanand, the founder of Arya Samaj came to Haryana in the year 1880 and stayed at Rewari for some time to preach against superstitions and illiteracy. He also established a branch of Arya Samaj in Rewari. Later, another branch was established at Rohtak and the establishments of Arya Samaj branches continued.xl
A very small number of institutions imparted education to a few people of the society and the bulk of the population remained uneducated. There were many reasons for the educational backwardness of Haryana. It can be said that partly the Government and partly
the people, especially the villagers were responsible for such a dismal situation regarding education. Education, in fact, had different meanings for different people in the Haryanvi society of yore. It stood for nothing more than the knowledge which would make a child proficient in the parental profession. Thus, education was the knowledge of Sanskrit for a Brahmin, knowledge of Arabic for a Muslim and to a shopkeeper‟s son it was only a little arithmetic. For a clerk‟s son, it was some Persian or Urdu and to a peasant‟s son, it was only learning his fathers‟ job-mastering details of its execution. For peasant‟s son, literary education was useless and he normally, therefore, never sent his son to a school. Views of William Fraser are significant in this regard: “the peasant would not send his son to the school for the boys labour is lost to the family and the idle hand is not willingly supported by the rest.”xli
Regarding the role of private munificence in education in this region, he says: “the number www.zenithresearch.org.in of native gentlemen who are really interested in educational matters and are anxious to
establish new schools or improve old ones, is very small.”xlii Compare it with the following
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It may be said that Haryana, during the period, had been a place of sickly seasons where almost eight years in every decade had been labeled as drought years. The people of Haryana did not understand the usefulness of education. They required extra hands for their professional pursuits at home and in agricultural land and thus, could not afford to send their children to school. They could not afford to pay heavy fees etc. as hardly they had any cash available with them every month. Thus, they kept them away from schools and supplemented family earnings with their help.xlv In the year 1899, Hindu College was founded at Delhi by the Sanatan Dharma Sabha.
CONCLUSION
To sum up, the slow development in education greatly affected the progress of the region in various fields. It deprived the people from the contact with the Western education, culture and literature. Unlike, other provinces, in Haryana one does not find the emergence of English educated middle class up to the end of the 19th century. In fact, Haryana remained deprived of the progress in the social, religious and political fields.xlvi The condition of education in Haryana by the year 1901 was far from satisfactory. The major factors responsible for the backwardness were as follows.xlvii
Haryana was economically poor where almost in every third or fourth year, there was a drought or famine. The Government had administrative apathy towards the people of Haryana. The private institutions also did not play any effective role here in this field and there was social inertia in the people towards education.
Geographically, Haryana was not a rich territory. The rainfall was also inadequate and scanty. The colonial rule operated harshly and brought utter ruination to the people. As a result, Haryana was economically poor, social fragmental and educationally backward. In 1901, only about 19,897 students were enrolled in 719 various types of schools in Haryana. Women education in Haryana could not have been worse. About 968 girls were enrolled in 29 schools.xlviii The British government did not take any step further. As a result, not even 3 percent population could claim some literacy by the year 1901.
But thanks to the Nai-Hawa (New Wind) which began to blow in the last years of the 19th century throughout the country which made some difference here too. Of the many factors and forces which released this nai-hawa, the most important were the socio-religions movements like the Brahmin Samaj, Singh Sabha and Aligarh Movement etc.
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REFERENCES
i Charles H, Heimsath, Indian Nationalism and Hindu Social Reform (Princeton, 1964), p. 3. ii Narain, V.A., Social History of Modern India: Nineteenth Century (Meerut, 1972), p. V. iii Karunakaran, P., Religion and Political Awakening in India (Meerut, 1965), p. 2. iv Nehru, J., Discovery of India (Calcullta, 1946), p. 235. v Ramsay Mac Donald, The Government of India (London, 1919), p. 236; Paul, K.T., The British Connection with India (London, 1926), p. 46; Chirol Valentine, India (London, 1926), p. 95; Sharma, S.R., The Arya Samaj and its impact on India in the 19th century vide, Ideas in History (Ed. By Bishashar Prasad), p. 157. vi Punjab Census Report, 1901, p. 116. vii Home Department (Political-B), Government of India, Proceedings, July 1911, Nos. 55- 58. viii Javed, R.C., Punjab Ka Arya Samaj (Jullundur, 1964), p. 1. ix Singh Ranjit, Haryana Ka Arya Samaj Ka Itihas(Rohtak, Vikrami 2033), p. 8. x Ibid, p. 9. xi Ibid. xii Mittal, S.C., Haryana: A Historical Perspective (Delhi, 1986), p. 66-67. xiii Singh Ranjit, Haryana Ka Arya Samaj Ka Itihas(Rohtak, Vikrami 2033), pp. 12-16. xiv O‟Malley, L.S.S, op.cit., p. 371. xv Chand Prem, The Social Reform Movement in Punjab (1873-1900), Unpublished M.Phil. Thesis, Kurukshetra University, 1978), p. 53. xvi Pandey, D.P., The Arya Samaj and Indian Nationalism (1875-1920), New Delhi, 1972), p.
76. xvii Choudhry, S.B., Growth of Nationalism in India (New Delhi, 1973), p. 493. xviii Mittal, S.C., Haryana: A Historical Perspective (Delhi, 1986), p. 68-69. xix See Sitaramyya Pattabhi, History of Indian National Congress (1885-1935), Vol. 1. xx Chand Tara, History of the Freedom Movement in India, Vol. II, p. 551. xxi Seal Anil, The Emergence of Indian Nationalism, p. 15. xxii The Tribune, June 21, 1884.
xxiii The Tribune, June 14, 1884. www.zenithresearch.org.in
xxiv Sharma, S.R., Punjab in Ferment, p. 26.
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xxv Ibid. xxvi Ibid. xxvii Pandit Din Dayalu Sharma Satabdi Granth, p. 24. xxviii Punjab Census Report, 1901, p. 115. xxix Mittal, S.C., Haryana: A Historical Perspective (Delhi, 1986), p. 69-70. xxx Mittal, S.C., Haryana: A Historical Perspective (Delhi, 1986), p. 70-71. xxxi Census, 1901, p. 406. xxxii I.G.I.P., 142-143. xxxiii Ibid, 143; A.R. 1887-88, p. 163; also see chapter xxxiv R.E. 1894-95. xxxv Punjab Education Report, 1864-65, p. 22 (Hereafter P.E.R.). xxxvi P.E.R., 1873-74, p. 6. xxxvii Brayne, F.L. (1927), Village Upliftment in India, Allahabad, p. 3. xxxviii P.E.R., 1862-63. xxxix Ibid. xl Haryana History 1858-1885- Arya Samaj- Haryana Online-North India, Haryana Online.Com-2006-07, p. 1. xli Sharp (1905), Selections from Educational Records, Delhi, Vol. I, pp. 13-15. xlii Ibid, p. 16 xliii Ibid, p. 17.
xliv File R/99 (Punjab State Archives, Patiala) says that the region was detached from the
N.W.P. and was tagged to the Punjab as a political punishment. xlv Crook, William (1975), The North Western Province of India, Delhi, pp. 157-158. xlvi Mittal, S.C., Haryana: A Historical Perspective, New Delhi, 1986, p. 74. xlvii Yadav, K.C., Haryana Studies in History and Culture, Kurukshetra, 1968, p. 103-104. xlviii Ibid.
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LEVEL OF AWARENESS ABOUT HIV/AIDS AMONG TRUCK DRIVERS PLAYING ON NH-65 NEAR TITRAM MOAR IN KAITHAL DISTRICT, HARYANA
SATISH KUMAR*
*Bhagwan Parshu Ram College, Kurukshetra.
ABSTRACT
HIV/AIDS is the worst plague the world is fighting today. No one is immune to HIV. But same group are high risk group for HIV infection due to their profession, living conditioned others and among these high risk group for HIV infection the truck drivers are one of main high risk group due to migratory nature of their profession. This study endeavors to document the level of awareness about HIV/AIDS among the truck drivers playing on National- Highway-65 (Ambala-Hissar) in Kaithal district of Haryana. Sixty truck drivers were interviewed for this study on the road side Dhaba near Titram Moar in Kaithal district in Haryana.
Result an over whelming majority about eighty percent of the respondent had heard about HIV/AIDS. 83.3 percent respondent had knowledge about sexual route of HIV infection and 80 percent of the respondent got knowledge about HIV/AIDS from friend. Thus friend circle was the main source of HIV/AIDS awareness. 90 percent of the respondent had knowledge of condom as a preventive measure. There is an urgent need for intensifying effective strategies to educate truck drivers to change their perception regarding safe sex. The social worker truck operated union should work together to enhance the HIV/AIDS awareness among truck drivers.
KEYWORDS; hiv/aids, awareness, sexual behavior and truck drivers. ______
INTRODUCTION
It is generally accepted and well documented that long distance truck drivers have been and remain one of the key forces in the spread of HIV/AIDS pandemic access the Indian sub continent. The role of the truck drivers in the transmission of HIV/AIDS and other sexually transmuted diseases is rooted in the life style that comes with the occupation as well as the broader social and economic societal factors.
The truck drivers are highly mobile and spend long hours on the road away from families. Their need for entertainment and female companionship, make them very likely to use the services of commercial sex worker in stop over town near major transportation route. There truck stop towns have developed an entire infrastructure of networks and services meeting the business and recreation need of truck drivers, including petrol pumps, inspection period, lodges, bar and brothels and a high population of commercial sex
workers. www.zenithresearch.org.in
Many truck drivers hesitate to attend the HIV/AIDS awareness programme due to
stigma related to the disease. Many truck drivers hesitate to admit having had contact with
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With this background this study endeavored to document the level of awareness about HIV/AIDS among truck drivers. This will help in creating HIV/AIDS awareness among truck drivers
LITERATURE REVIEW
Imran Raza et: all 1994 conducted a study on knowledge attitude and behavior towards AIDS among educated youth in Lahore find that overwhelming majority (89.2%) of the youth were aware about the existence of AIDS. Only 25.3% of the youth had the correct knowledge of etiology of AIDS. Three fourth of the youth thought that person suffering with AIDS should be isolated.
Muhmmad Anwar Chaudhry et al[ 2005] conducted a study on “Level of awareness about HIV/AIDS among Truck drivers and their attitude towards persons with AIDS. They found that half of respondent did not know whether needles had any role in the spread of HIV infection.
They found that half of the respondent believed that needles had no role in spreading of HIV/AIDS. While about half of the truck drivers had the misconception that AIDS can be contracted by casual contact and sharing room with patients with AIDS. Only one third of the truck drivers were about blood transmission on route of HIV/AIDS.
S. Chaturvedi et at 2006 conducted a study on sexual behavior among long distance Truck drivers. In this study they found that 97.27 percent of the respondents have knowledge about hetero-sexual route HIV/AIDS transmission was generally very good. But the knowledge about other route of HIV/AIDS transmission was lower. Half of the respondent (57.24%) had exposure to commercial sex worker and a very low percentage (6.8%) had used condom every time while visiting commercial sex workers. They found a significant relationship between alcohol intake and causal sex worker exposure.
Bwayo et al. in their study formed that almost all 99 percent the respondent heard about HIV/AIDS and 61 perent of the truck drivers reported to commercial sex workers.
Gulalia, Akash (2008):- Social work practice with mobile population vulnerable to HIV/AIDS concludes that there is a strong linkage between truck driver’s life styles and vulnerability to HIV/AIDS. It was found that a majority of respondent was aware about sexually transmitted disease and out of which more than half could names at least one of the STDs. More then halt of the respondent were aware about HIV/AIDS. It was significant to note that very few respondents were aware about routs such as blood transfusion and parental i.e. Mother to child transmission. Among all respondents more than half were aware about sexual route 41 percent were aware that use of condoms could prevent STDs and HIV. One third of respondents said that reduction of numbers of sexual partners could reduce the chances of contracting STDs and HIV/infection. A majority of the respondents did not know about the long incubation period of HIV infection. More than half did not know about the non-availability of a cure 40 percent of the respondent
said that HIV/AIDS causes weakness and decay. One fourth said that it was causes fatal www.zenithresearch.org.in
illness. Low level of knowledge has led to major myth and misconception and even
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A study conducted by Bansal R.K among truck drivers in Indore M.P. reportedthat 82.9 percent and 43.8 percent of the senior and junior drivers respectively,had a history of extramarital sex. Rao K,pilli R.D et al conducted a study among truck drivers along the Andhra- Orissa border in eastern India, showed that 87 percent of subjects were sexually promiscuous with only 11 percents using condoms during commercial sex
METHOD:- truck drivers playing on national highway no.65,who halted at roadside dhabas at titram moar in kaithal district Of Haryana. For the present study sixty truck drivers were interviewed for this study by using convenient random sampling method.A Questionnair was designed as a tool for data collection. Comprising of Six main questions. First question is about the knowing about HIV /AIDS question second for mode of HIV/AIDS transmission. Question third is about symptoms of HIV/AIDS. Question Fourth is about misconception about HIV/AIDS. Question Fifth is about source of information and the last question l is about preventive measures.
RESULT AND DISCUSSION
TABLE-1
ANALYSIS OF RESPONDENTS ABOUT HEARING OF HIV/AIDS
Particulars Nos. Percentage
Yes 48 80
No 07 11.66
Don’t know 05 8.43
Source:- complied to questionnaire
It is revealed from the table that an overwhelming majority i.e. eighty percent had heard about HIV/AIDS. Only 11.6 percent respondents respond that they have not heard
about HIV/AIDS till date but only a few 8.4 present of the respondent don’t give any response.
TABLE-2
RESPONSES TO THE QUESTIONS ABOUT KNOWLEDGE OF THE RESPONDENT ON TRANSMISSION OF HIV/AIDS
Route of transmission Respondents Percentage
Sexual route 50 83.3%
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Sharing Needle 22 36.6%
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Blood Transfusion 20 33.3%
Mother to Child 24 40%
Source ; complied to questionnaire
Table shows that 83.3 percent of the respondent has know about the sexual route, 36.6 percent has knowledge about sharing needle, 33 percent has knowledge about blood transmission route and forty percent of the respondent had knowledge about mother to child route of HIV/AIDS transmission.
TABLE-3
RESPONSES TO THE QUESTIONS ABOUT SYMPTOMS OF HIV/AIDS
Particulars Nos. Percentage
Longer fever 38 63.33
Weight loss 18 30.00
Chronic diarrhoea 16 26.66
Longer cought 30 50.00
Tulber culosis 28 46.66
Source ; complied to questionnaire
Table shows that 63.3 percent of the respondent had knowledge that longer fever is the symptoms of HIV/AIDS. About half of the respondent had knowledge longer cough and tuber culosis is the symptoms of HIV/AIDS infection. Knowledge about weight loss and diarrhea was quite low.
TABLE-4
ANALYSIS OF RESPONDENTS ABOUT MYTH AND MISCONCEPTION
Particulars Nos. Percentage
Sharing food utensils 10 16.66
Sharing cloths 8 13.33
By kissing 4 6.66
By mosquito bite 20 33.33
By shaking hand 08 13.33 www.zenithresearch.org.in
By working together 10 16.66
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Source ; complied to questionnaire
It is revealed from the table that the myth & misconception that mosquito bite can spread HIV/AIDS is high (33.3%) among the truck drivers then the other misconception like sharing food utensils and by working t together (16.6%) and by shaking hand sharing cloth and by kissing is quite low.
TABLE-5
RESPONSES TO THE QUESTIONS ABOUT SOURCES OF INFORMATION
Particulars Nos. Percentage
Friend 48 80.00
Relatives 10 16.66
Newspapers 12 20.00
TV/Radio 50 83.33
Govt. Org. 25 41.66
NGO 32 53.33
Source ; complied to questionnaire
The Present study found that the T.V. / Radio 50(83.3%) and friend 48(80%) were the main source of information about HIV/AIDS. While half of the respondent have got information about HIV/AIDS 32(53.3%) from N.G.O. and 25(41.6%) from the Govt. organization , whereas about one fifth of the respondents got information about HIV/AIDS from the news paper and relatives as a source of information was very low.
TABLE-6
RESPONSES TO THE QUESTIONS KNOWLEDGE ABOUT PREVENTING
MEASURES
Particulars Nos. Percentage
Use condoms 54 90
Reduce sexual worker 18 30
Use sterilizes needle 18 35
Use tested blood 30 50
Don’t share Razors 24 40 www.zenithresearch.org.in www.zenithresearch.org.in
Source ; complied to questionnaire
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Table shows that an over whelming majority (90 percent) of the respondent were aware that use of condom can prevent from HIV/AIDS. Half of the respondent responds that if we take HIV/AIDS tested blood it can prevent from HIV/AIDS. One third of the respondent (30 percent) unaware that that use of sterilize syringe can prevent us from HIV/AIDS.
The overall knowledge about the mode of transmission of HIV/AIDS was generally good. Almost 83.3 percent of the respondent were aware about the transmission of HIV by Hetero sexual route. But the knowledge about to the other mode of transmission that is from pregnant mother to her unborn fetus through breastfeeding and through a homosexual route was inadequate.
This could be due to the fact that the main thrust of HIV/AIDS educate of truck drivers is limited to bring change in their high-risk behavior that a unsafe sex with commercial sex workers and rightly so, of the respondents are aware that condoms use during sex with commercial workers could prevent HIV/AIDS.
mass media tv/radio and peer group has played an important role in spreading the message about HIV/AIDS. In our study it was observed that 83.3 percent truck drivers had gained the knowledge about HIV/AIDS from TV/Radio and second largest source of information was peer group with eighty percent respondents.
CONCLUSION
Information about the transmission of HIV/AIDS It was concluded that an overwhelming majority of the respondent heard about HIV/AIDS, hetero sexual route of HIV transmission and condom as an effective measures of HIV/AIDS prevention. The knowledge about other route of HIV transmission and other preventive measures was quite low. It may be due to the more stress given to sexual route of HIV/AIDS transmission. The knowledge of other route of HIV transmission and other preventive measures should be given due respect in HIV/AIDS awareness programmes.
Innovative behavioral change There is no vaccine to cure AIDS. Until a cure or vaccine for HIV infection is found, the only way to prevent the spread of the disease is by changing people’s behavior through AIDS awareness programs. It involves spreading education on how to protect oneself, hundred percent condoms use, and changing sexual behavior for prevention of HIV/AIDS among the truck drivers a targeted intervention program with components like STD treatment service at strategic point accessible to the community, condom promotion and innovative behavioral change communication based on felt need of focus group is recommended
Use truck drivers and sex workers to spread positive messages The social worker, NGO a Govt. organization should work with the owner of truck and Transport Company to enhance the knowledge of HIV/AIDS awareness among the truck drivers. Peer education programmes targeted at truck drivers and sex workers can be used as a bridge in the spread of positive attitudes regarding condom use and HIV education. A concerted effort is needed to target high-risk populations in a non-discriminatory manner, and to use their
occupation to spread HIV-prevention messages and promote condom use throughout the www.zenithresearch.org.in www.zenithresearch.org.in
rural and urban areas.
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The study has its limitation due to smaller sample size, convenient sampling and possibility of interviewer bias.
REFERENCES
Imran R. 1994 knowledge, attitude and behavior towards AIDS among educated youth in Lahore, Pakistan, Directorate of Health Services Punjab.
Bwayo J.J. A.N. Muterc. MA Omari- J.K. Kreiss, W. Jaoko, C. SEkkadc Kigondu and P.A. Plummer, 1991. Long distance truck drivers Knowledge and attitude concerning sexually transmitted disease and sexual behavior. East African Medical Journal 68 (9): 7/U-719.
Churi, Chaitanya 2010, sexual behavior among truck drivers. Halting a Kalamboli truck terminal, Navi Mumbai Publication: Australasian Medical Journals (online)
S. Chaturvedi, Z. Singh, A banerjee, A Khera, R.K. Joshi, D. Dhrubajyoti: Sexual Behaviour among long distance truck drivers. Indian Journal of community Vol. 31 NO. 3 (2006-07-2006-09)
Social Welfare Journal. Vo. 52 No. 9 Dec. 2005, Riblished by Central Social Welfare Board B-12 Qutab instructional area New Delhi, 110016.
Bansal R.K. Truck Drivers and risk of STDs including HIV. Indian Journel of community Medicine 1995;xx no 1-4;28-30
Rao K.Pilli R D et al 1999 ‘sexual lifestyle of long distance lorry drivers in India; questionnaire survey BMJ 1999;318;162-163
Muhammed Anwar Chaudhary [2005] Level of Awareness about HIV/AIDS among Truck Drivers and Their Attitude towards Person with AIDS’ Gomal Journal of Medical Science Jan- june 2005,vol. 3
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CORPORATE SOCIAL RESPONSIBILITIES - A CASE STUDY OF INDIAN OIL
NEETU KWATRA*
*Assistant Professor, BLSITM, Bahadurgargh.
ABSTRACT
This paper will clarify whether, in theoretical terms, corporations can be citizens. The argument is based on the observation that the debate on „corporate citizenship‟(CC) has only paid limited attention to the actual notion of citizenship. With this paper the role of public sector in fulfilling social responsibly and where they should take care in to remain themselves in the society the paper opens with a discussion of the nature and role of Corporate for society. ______
INTRODUCTION
ISSUES IN PUBLIC SECTOR/INTRODUCTION
Since public sector organisations are essentially there to serve the public it might be assumed that these organisations do not face the dilemmas of the profit seeking private sector between commercial pursuit of profit and the notions of socially responsible behaviour.
Recent experiences indicate the public sector strategies are changing dramatically and in some instances throwing into sharp focus the issues of social responsibility. The continuously increasing degree of privatisation of the public sector organisations has fundamentally changed their operating paradigm and strategies towards the profit making rather than purely service delivery. It is argued that these moves have been made to bring a more economic and commercial perspective to the strategies being followed in the public sector.
DESCRIPTION OF THE PROBLEM
Today the corporations are finding themselves immersed in the dilemma between the motives of „profit seeking‟ and „social responsibility‟. The lines between socially responsible behaviour and profit motive have always been arbitrary, shifting and uncertain.
In view of the above it is clear that the role of Indian Oil assumes significant importance in the Indian economy. At the same time, being a leading public sector organisation Indian Oil is not only responsible for making a reasonable amount of profit and sustain its growth for coming upto the expectations of its share holders but it also has immense responsibility towards the society in which it operates and from where it generates its resources. Hence Indian Oil needs to look beyond the purely economic objectives of a business enterprise for achieving enduring success in the business in real terms and to ensure its survival, www.zenithresearch.org.in
growth and sustaining its position of market leader in the times to come.
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GOALS OF THE PAPER
To study and evaluate the existing practices towards social responsibility in the company.
To examine contemporary domestic practices for fulfilling the corporate social responsibilities.
To develop the expected future responsibilities towards „corporate social responsibilities‟ for Indian Oil in the changing perceptions of the society.
METHOD OF STUDY
The business reports, policies and norms of the company related with the issue of social responsibility have been studied in detail. The data has been collected from different units and locations of the company and interviews of the concerned Human Resources managers, representatives of collectives and some stakeholders have been taken. These data have been analysed to evaluate the existing practices towards the social responsibility in the company.
The secondary data of the leading Indian companies through published materials, reports and brochures have been examined to identify the contemporary domestic practices for fulfilling the social responsibilities.
The questionnaire methodology has been followed to determine the thoughts of the respondents and their approach to the concept of social responsibilities. Based on the analysis of questionnaire responses, literature survey and the existing practices of leading Indian companies a stakeholder model of Indian Oil has been developed.
INDIAN OIL’S ACTIVITIES TOWARDS FULFILMENT OF SOCIAL RESPONSIBILITIES
Over and above the legal requirements, Indian Oil is pursuing a wide range of social activities which imply a certain „stretch‟ and considered as response to the expectation of the society. The following spheres of activities for fulfillment of social responsibilities have been identified by Indian Oil.
1. Community Development
2. Promoting Excellence
3. Environment Management
4. Preserving National Heritage
COMMUNITY DEVELOPMENT PROGRAMME
The following are the main areas covered under the community development schemes/activities in general –
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Providing clean drinking water
Installation of tube walls
Cleaning of the ponds
Provision of hand pumps
Water supply projects, such as construction of water tanks and laying of pipelines etc.
Health and medical care programme
Health & medical check up camps
Hospital on wheels – mobile medical vans
Eye operation camps
Blood donation camps
Immunisation camps
TWO CHILD NORM
Organisation family planning camps including conducting family planning operations.Educating the women on child health care; pre-natal and post-natal.
EXPANSION OF EDUCATION
Construction and repair of school and college buildings.Providing scientific equipment, furniture, teaching aids, library books to schools and colleges.Conducting training camps for skill development, adult education etc.Scholarships for the benefit of students from SC/ST communities pursuing their studies in Engineering/Medical/Business Management.
WELFARE OF WOMEN
Conducting training programmes and offering financial assistance for self employment like tailoring, knitting etc. This includes supply of sewing machines also.Financial assistance to Mahila Samities (Ladies Societies) for construction of production centres, imparting professional trainings such as stenography and computer courses etc.
COMPREHENSIVE ECONOMIC DEVELOPMENT
Community and rural development to enrich the quality of life of people including the weaker and deprived sections of society.Support to causes which directly or indirectly promote employees growth and welfare alongwith welfare of community at large such as contribution to educational institutions and hospitals.Removal of social and economic
disparities and eradication of poverty.Support to causes and institutions which would help www.zenithresearch.org.in generate goodwill for the corporation in the national/international arena so as to enhance
the corporation‟s image as a good corporate citizen.
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AREA DEVELOPMENT AROUND THE PLANTS
While selecting the locations of Refineries, plants, Depots and other installations, the aspect of rural and backwardness of the area have always been kept in view. This results in the social and economic development of these areas.
Preference in employment for non-officer posts is provided to persons of the local area in which the plant is located.Rehabilitation assistance is provided to the „Project Affected Persons‟ in addition to the payment of compensation for the land acquired.
PROMOTING EXCELLENCE
The encouragement of youth to achieve excellence in life is a major area of activity triggered partly by government directives and partly by the Indian Oil‟s concern for contributing in nation building. The activities undertaken for creating new opportunities for youth are as follows :-
ENVIRONMENT MANAGEMENT
Indian Oil goes much beyond the legal requirements of environment management triggered by the need for projecting an image of good corporate citizen. Activities undertaken towards environment management include protection of environment, preservation/improvement of ecology and achievement of highest standards of environmental pollution control measures.
Tree plantation, special attention is given for afforestation in and around Refineries/Units/Insallations.
Construction of public conveniences
Development of „Green Belts‟ and „Ecological Parks‟ around all Refineries
Vehicular pollution control –reduction of „Sulphur‟ and gradually removing „Lead‟ from the products
Education for environment friendly storage and use of products
Cleaning of ponds & rivers
Educating the people on cleanliness
Constructions of drains
Development and maintenance of parks
Spreading the message of „Clean and Green Environment‟ through various expeditions.
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PRESERVING NATIONAL HERITAGE
India is a country with rich cultural and architectural heritage. Indian Oil has begun to realise the importance of preserving national heritage and has started programmes for direct contribution.
Adoption of archaeological monuments
Control of pollution in and around the heritage sites. (The Taj Trapezium)
Employees‟ Welfare
Medical care
Housing facilities
Children education
Participation in management
OTHER ACTIVITIES OF SOCIAL RESPONSIBILITY
Though Indian Oil has formally recognised community development works as its activities towards fulfilling social responsibility, but it does not mean that Indian Oil is totally ignorant about its responsibilities for other stakeholders. The difference is that the activities related with them are not being executed with the formal label of social responsibility and the expenditure made on these activities is not included in the officially declared expenditure on social responsibility works.
Budgeted amount not being utilised
It has been observed that the amount sanctioned in the annual budget for fulfilling the social responsibilities is not being utilised fully and this indicates gap between planning and implementation of the programme. Every year lot of money remains unutilised which is not carried over for the next year.
Budger sanctioned is less than the limit approved by Board
It can be seen from the table 3.1 that the budget amount sanctioned in the last three years is only 0.41, 0.34 & 0.37 percent ______of the previous year‟s profit though the Board of Directors had approved for the expenditure upto a limit of 0.50% of previous year‟s profit.
DEVELOPMENT OF STAKEHOLDER MODEL FOR INDIAN OIL
This study had been done with the objective of analysing the social aspects of Indian Oil and other leading Indian companies in order to develop a “Stakeholder Model” for Indian Oil Corporation. This model should enable Indian Oil to evolve and implement efficient
future strategies for discharging its social responsibilities to fulfil the changing www.zenithresearch.org.in
expectations of the society. This chapter deals with the presentation and analysis of
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METHODOLOGY
The study is mainly based on the secondary data about the existing practices being followed by Indian Oil and other Indian companies (mostly public sector petroleum companies) towards the cause of fulfilling their social responsibilities. The business reports and policies of the Indian Oil have been studied in detail and the data has been collected from various units of IOC towards the social activities undertaken by them.
For the purpose of collecting primary data of questionnaire survey of the E, F,G & H grade officers of all the three divisions of Indian Oil has been done. The representatives of Indian Oil Officers Association (2 Nos.) and Indian Oil Employees Union (2 Nos.) were interviewed for getting their opinion about the subject. Discussions were held with 8 Nos. H, I grade officers from Refineries and Marketing Divisions and 14 Nos. D,E & F grade officers of Human Resource Department of Indian Oil for getting an idea about the expected future policies of the company towards social responsibility. In addition to this some stakeholders of the corporation were also interviewed to get an first hand information about their perception of Indian Oil‟s social responsibility and their expectations from the corporation.
SAMPLING
The questionnaire was given to a total of 200 officers of the corporation posted at offices located in New Delhi, other units, offices, R&D centre, depots, terminals etc. The actual responses received were only 52 Nos. (26%). The details of stakeholders interviewed are given in table 5.1
TABLE 5.1STAKEHOLDERS INTERVIEWED
S.No. Category Number
1. Employees 30
2. Customers 24
3. Trade Associates (contractors, suppliers, 12 transporters)
4. People from local community 12
5. Media persons 2
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DATA ANALYSIS
The data received through the questionnaire is analysed to get an idea about the perceptions of the officers under following four broad categories.
The perceptions about –
The social responsibility of corporate bodies
The priority areas and benchmark figure for social responsibility
The social responsibility of Indian Oil
The Indian Oil‟s social responsibility towards the employees
The social Responsibility of Corporate Bodies
The responses to the first three questions of the questionnaire reveal the officers perception of the social responsibility of the corporate bodies. These responses are given below :
Should corporate bodies be socially responsible ?
It is significant to note that all the 52 respondents have answered „Yes‟. This shows their strong desire for social responsibility of corporate bodies.
Reasons for concern about the society.
In this question the respondents were asked to suggest one reason for their corporation‟s concern about the society. In response to this, several different reasons have been suggested. The reasons suggested by majority are tabulated in table 5.2 . The perception of a large percentage of respondents indicates that the corporation has to be socially responsible as it operates in the society.
Need for Government guidelines
The respondents were asked that whether the government should issue some guidelines for
discharging the social responsibility. The responses are given in table 5.3.
Reasons for concern
S.No. Reason given Number Percentage
1. Because it operates in the society 21 40
2. Because it is a public sector company 10 19
3. For image building 7 14
4. Because it uses the resources provided by the 5 10
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5. Other reasons 9 17
TABLE 5.3 NEED FOR GOVERNMENT GUIDELINES
S.No. Question Yes No
1. Should the Government issue some guidelines 35 17
(67%) (33 %)
DATA ANALYSIS
From the above given responses received towards the first three questions regarding the perception of the officers about the social responsibility the following inferences can be drawn :
There is a strong feeling that the corporations should behave in a society responsible manner.
About the reasons for having concern for society, there are different views. But the vast majority desires that the corporation should have concern about the society in which it operates, secondly being a public sector company the need for IOC‟s concern about society gets still more pronounced.
India is a country which is still following socialistic pattern, it is clearly reflected in the responses for the third question where 67% respondents have desired that the government should have some guidelines to the corporate bodies for discharging their social responsibilities. This shows the perception that the corporate bodies may not be able to fulfil their responsibilities on their own.
The priority areas and benchmark figure for social responsibility
Two questions were designed for getting the perceptions about the priority areas and benchmark figure for social responsibility.
PRIORITY AREAS
Four different areas of social responsibility were placed before the respondents and they were asked to rank them in order of their priority. First rank to be given for top priority and fourth rank for last priority. The ranks given by the respondents have been summarised in table 5.4.
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TABLE 5.4 PRIORITY AREAS
SN. Priority Area Ranks given Weighted avarage 1 2 3 4
1. Community Development 24 28 - - 1.54
2. Promoting Excellence - - 52 - 3
3. Environment Management 28 24 - - 1.46
4. Preserving National heritage - - - 52 4
Benchmark figure
The respondents were requested to give their views about relating the company‟s expenditure towards social responsibilities with the „turnover‟ or the „profit‟ of the company as a certain percentage of it. The responses received are tabulated in table 5.5.
TABLE 5.5 BENCHMARK FIGURE
S.No. Preference of Benchmark figure Number %age
1. Percentage of profit 44 85
2. Percentage of turnover 8 15
There are wide variations in the choice given by the respondents about the benchmark figure ranging from 0.50% of profit to 10% of profit and from 0.50% turnover to 2.00 % of turnover.
ANALYSIS OF DATA
Respondents have given more or less equal priority to the areas of community development and environment management with the priority for environment management slightly on higher side. This indicates that the prime concern of the people today is about the deteriorating conditions of the environment.
It is significant to note that the respondents are unanimous about the priorities of the areas of promoting excellence and preserving national heritage. All of them have given 3rd priority for promoting excellence and 4th priority for preserving national heritage.
Regarding the benchmark figure for the expenditure towards the social responsibility, 85 % respondents have preferred to relate it with the profits of the company and only 15% are
of the opinion that it should be linked to the turnover of the company. This shows the www.zenithresearch.org.in respondents perception that the social activities shall be taken up only by the profitable
corporations.
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The responses about the quantitative benchmark figure, as a percentage of profit or turnover, are having wide variations from 0.50 % to 10% of profit and from 0.50% to 2.00% of turnover. Therefore, no concrete result can be drawn from this. But it can be realised that the respondents are in favour of an increase in IOC‟s expenditure as most of the responses are in the range of 2 % to 5% of profit.
The Social Responsibility of Indian Oil
For getting the respondents‟ perception about the performance of Indian Oil towards social responsibility, two questions were placed before them.
Performance comparison
Five options were given to the respondents and they were asked to select one as per their perception about the IOC‟s performance in comparison to other sectors. The responses are given in table 5.6.
TABLE 5.6 SOCIAL RESPONSIBILITY OF IOC
S.No. Options Number Percentage
1. Distinctly worse - -
2. Marginally worse - -
3. More or less equal 38 73
4. Marginally better 14 27
5. Distinctly better - -
Seventeen respondents have mentioned that Tata Iron and Steel Company has performed better.
Concern for profit and society
Three alternatives were offered in this question and the respondents were requested to select one which is being followed by IOC in their view. The results are tabulated in table 5.7.
TABLE 5.7 IOC’S CONCERN FOR PROFIT & SOCIETY
S.No. Policy Number % age
1. Less concern for society & more concern for profit 13 25
2. Less concern for profit & more concern for society 8 15
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Analysis of data
73 % of the respondents have viewed that the performance of Indian Oil with regard to fulfillment of social responsibilities is more or less equal to any other industrial sector in India. 27 % respondents have rated IOC‟s performance as marginally better than other sectors. This shows that the perception of the respondents about the IOC‟s comparative performance is quite good.
Some of the respondents ( 34 %) have also mentioned that TISCO is performing better than Indian Oil in the field of social responsibilities. It indicates that though the respondents have related IOC‟s performance at par or better than others but they expect some improvement in it and to match with TISCO.
In the opinion of majority of the respondents ( 60 %), Indian Oil is having equal concern for society and profits. However, 25 % responses show that IOC is more concerned about the profits.
Indian Oil‟s Social Responsibility towards the Employees
Two questions were included in the questionnaire to get an idea of employees perception about the existing social activities of Indian Oil for employees welfare and their expectations from the corporation.
Feelings about existing social activities
Four main social activities of IOC towards employees welfare were placed before the respondents and they were asked to indicate their feelings about the satisfaction. The responses are given in table 5.8.
TABLE 5.8 FEELINGS ABOUT EXISTING ACTIVITIES
S.No. Activity Satisfactory Unsatisfactory
1. Medical facilities 48 (92 %) 3 (8 %)
2. Children education 18 (35 % ) 34 (65 %)
3. Housing facilities 40 (77 % ) 12 (23 % )
4. Care of retired employees 45 (86 % ) 7 (14 % )
EXPECTATIONS
The respondents were requested to list their expectations from Indian Oil with regard to its
social responsibility towards employees. Results shown in Table 5.9
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TABLE 5.9 EXPECTATIONS OF EMPLOYEES
S.No. Expectation Number
1. Facility for professional education of children including 24 establishing educational institutes.
2. Preference to employees‟ children for job 13
3. Better sports and entertainment facilities 6
4. Provision of day care centres for working mothers 7
5. Better rehabilitation of the families of deceased employees. 7
The important suggestions given by the respondents are listed in the above table along with the number of respondents.
DATA ANALYSIS
From the responses listed in table 5.8 and 5.9 it can be inferred that –
The employees are highly satisfied with the medical facilities provided by the corporation.
The responses indicate high satisfaction level about the care of retired employees, but as the sample was not containing any retired employee hence this result may not be very authentic.
People are more or less satisfied with the housing facilities provided by the corporation with some exceptions.
The satisfaction level of employees with regard to the educational facilities provided by the corporation is very low. 65 % employees are not satisfied. One reason for getting this result may be that most of the respondents are posted in New Delhi, where the company is not having its own school. The satisfaction of employees in Refineries may be somewhat higher. Secondly the employees are more worried about the professional education of their wards, for which there is almost no activity from the side of the corporation. This expectation has also been listed by the employees (table 5.9.)
The employees also expect the corporation to take up some activities in the areas of providing day care centres for the children of working mothers (this facility may be provided in the townships), giving preference to the children of employees in jobs, provision of better sports facilities to give an opportunity to the talents of the employees‟ children and also to improve the rehabilitation of the families of the deceased employees.
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CONCLUSIONS
On the basis of the information collected, presented and analysed, the following conclusions are drawn
Indian Oil realised the importance of social responsibility long back and have incorporated it in its mission statement and also clearly stated its obligations about he community and some other stakeholders. Indian Oil is the first Indian public sector company who has formally related its expenditure towards the social responsibilities with its profit.
Indian Oil has focused its activities towards the social responsibilities on four broad spheres which are community development, promoting excellence, environment management and preserving national heritage. But the main focus is on community development, most of the activities related with environment management have been taken up under different other programmes and have not been included in the preview of social responsibilities. The activities which are being executed at present by Indian Oil for fulfilling its social responsibilities include providing drinking water, health & medical care, family planning, expansion of education, women welfare, development of weaker sections of society, area development around the plants, promoting sports & education, tree plantation, ecological parks, construction of roads & schools and adoption of monuments etc.
In addition to the above, Indian Oil had also taken several steps to fulfil its responsibilities towards its employees, customers, Government/owner. But the activities undertaken in this direction have not been put under the umbrella of corporate social responsibilities. All these activities have been made a part different other policies and programmes and the expenditure being incurred on them is also not included in the official figure of the expenditure on fulfilling social responsibilities.
There is no separate organisational structure in Indian Oil for planning and implementation of the programmes related with the corporate social responsibility. This task has been assigned to the executives of Human Resource Department in addition to their own duties. On the other hand the Tata Iron and Steel company has a separate division including a Director and other officials for the purpose of fulfilling the social responsibilities, that is one of the reasons of the outstanding performance of the company in the field of social responsibilities. The success of the programme can be judged from the fact that the name of the town has been changed from „Sakchi‟ to „Jamshedpur‟ in the name of the founder of company, Late Mr. Jamsetji Nusserwanji Tata.
The IOC‟s figures of the last three years for the budget sanctioned and the expenditure made on the social responsibility programmes clearly reflect that the budget sanctioned towards this purpose is in the range of 0.34% to 0.41% of the previous year‟s profit, though the Board has approved a limit of budget upto 0.50% of previous year‟s profit. It is further noticed that the even this sanctioned budget amount is not being utilised fully, the amounts spent in last three years are 70.90 %, 76.64% and 84.40 % of the sanctioned budget.
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REFERENCES
Bajaj R : Social Role of Business : Maharashtra Chamber of Commerce, Bombay, 1970
Blum A.A. : Stakeholders Vs Stockholders – Issue in Corporate
Burke L. & Logsdon J.M. : How Corporate Social Responsibility Pays Off : Long Rang Planning, Vol. 29, No. 4, 1996.
Cannon Tom : Corporate Responsibility, Pitman Publishing, London – 1994
Carroll Archie B : Business & Society, South Western College Publishing, Ohio, 1996
Chakraborty S : Corporate Social Responsibility – An ideological Whitewash or A Transformational Elixir : Productivity, Vol. 37 No.2, 1996
Clarkson Max B.E. : A stakeholder Framework for Analyzing and evaluating Corporate Social performance Academy of Management Review – Vol. 20, No. 1, 1995 Page 92-117.
Davis K & Blomstrom R.L. : Business & Society – Environment & responsibility : Mc Graw Hill Book Company 1975.
SOURCES
Annual reports of Indian Oil Corporation, Oil & Natural Gas Corporation, Bharat
Petroleum Corporation, Oil India Limited, Hindustan Petroleum Corporation.
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DRIVERS OF BRAND EXTENSIONS SUCCESS
DR. K. SHYAMA SUNDAR*; B.JEYA PRABHA**
*Director, Mohamed Sathak College of Arts and Science, Chennai. *Assistant Professor, Department of Management Studies, Jaya Arts and Science College, Chennai. ______
ABSTRACT
The brand extension involves using an existing brand name to launch a product in a different category. It is otherwise known as category extension. Here brand name is constant whereas product category is a variable. The new product category needs to be different from the category presently served by brand. Extending the brand beyond the parent product category is profitable because the products that are already known and recognized in the market needs little introductory expenses. But the success rates of such extensions are very less. Therefore the potential determinants of success like core value of parent brand, similarity fit, quality of extended products and brand reputation becomes very important focus of study. This paper aims to bring out the factors responsible for the success of Dettol brand extensions.
KEYWORDS: Parent brand, core value, similarity fit, brand reputation. ______
1.1 INTRODUCTION
New products are launched in the market with an objective to attract more and more customers and thereby, increase market share. With increasing competition, customers are being provided with various options. Successful organizations all over the world recognize the importance of new product launches as a means of organic growth and as a means to differentiate themselves from others. At the same time, it must be remembered that it is not an easy task to create winning products in an increasingly competitive environment. Considering the high failure rate of new products, launching a new product is a risky proposition (Panwar and Bapat, 2007). Under this circumstance brand extension might receive success if consumers accept the extended brand product category.
“Brand extension is using the leverage of a well known brand name in one category to launch a new product in a different category.” Brand extension is a marketing strategy in which a firm that markets a product with a well-developed image uses the same brand name but in a different product category. Brands use this as a strategy to increase and leverage equity. A successful brand helps a company enter new product categories more easily.
1.2 BRAND EXTENSION BENEFITS www.zenithresearch.org.in
1. Brand extensions let a marketer take a brand with well-known quality perceptions
and associations and put it on a brand in a new category.
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2. Consumers who favorably evaluate a parent brand are more willing to try and adopt the brand extension than an unfamiliar brand in the same category.
3. A brand extension helps to identify logical new product possibilities.
4. It enables a company to enter new categories at significantly lower cost.
5. It reduces the risk of failure since the brand enjoys already established awareness and trust.
6. It creates a positive synergistic effect with the efficiencies of umbrella branding and advertising.
7. Brand extensions can also help consumers understand the core meaning of the brand name.
8. It reinforces the consumers‟ perceptions of the parent brand name.
1.3 MAIN REQUIREMENTS FOR SUCCESS OF BRAND EXTENSION
The following basic requirements covering the parent brand and the extensions must be met for brand extension to be successful: a) Extension should be in the brands area of expertise so that there is scope for leverage. b) Benefit Transfer: The users of extended product will expect the same kind of gratification as they have received from the parent brand. For example, the users of Dettol soap will expect the same kind of gratification as they have received from the Dettol antiseptic lotion. c) There must be consistency between the parent brand and the extensions in customers‟ perception.
1.4 FACTORS RESPONSIBLE FOR SUCCESS AND FAILURE OF A
EXTENSION OF A PRODUCT
i. Characteristics of the Parent Brand
Dettol‟s fragrant bath soap was a failure. The consumer associated Dettol and its
„antiseptic‟ smell with cleanliness and being germ-free and when this was missing
from the newly launched soap, they did not accept it.
ii. Experience with the Parent Brand
Being positioned as hygiene product, the consumers expect the same experience
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iii. Characteristics of Extension Product
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The quality and uniqueness of the extended products leads to success.
iv. Relationship between parent brand and extension product
There should be fit between parent brand and extension product, kind of
information which is extended by the parent brand.
v. Characteristics of the firm
If the company has good reputation and strong marketing competence, the chances of success are more.
2.1 ABOUT THE DETTOL COMPANY
Reckitt Benckiser (India) Limited (RBIL), formerly known as Reckitt & Colman (India) Ltd is one of the fastest growing consumer goods companies in South Asia. It has major presence in home and personal care, surface care, fabric care, pest control and healthcare.
Dettol is an iconic brand of Reckitt Benckiser launched in 1933 in India. Dettol as a brand has immense trust and loyalty from the consumers. Since the 1930s when Dettol was introduced in India, it has occupied a distinct position in the mind of its consumers. To achieve fast growth and leverage the strong brand equity of Dettol, the company rolled out a number of brand extensions. When its competitors like HUL (Lifebuoy and Hamam) have been losing their market share, Dettol has managed to maintain a steady growth amidst the competition. This can be mainly attributed to its focused brand positioning of germ protection. Smart strategic moves involve its stable pricing, well thought brand extensions and accessibility through smaller packs. The brand‟s endorsement from the Indian Medical Association has only added to their advantage.
2.2 ABOUT DETTOL ANTISEPTIC LIQUID
Dettol antiseptic liquid is a product, which has many uses for protecting against germs. It is a amour gold color which attracts the customer. It has a remember able smell. It gives a white foaming effect when put in water. It is used with mopping water to disinfect floors completely. It is used in washing laundry to disinfect clothes. It is essential for first aid and
personal care uses. It is available in a wide range of sizes from 50 ml to 5 Litre.
2.3 DETTOL TARGETS RS 1000 CR WITH EXTENSIONS
Dettol has successfully extended to soaps, hand washes, floor cleaner and shaving cream, too. The packaging of all its products is distinct in their own way. The green and white colours and the sword have become symbols for fighting germs and infections, reinforcing the brand‟s positioning as a bodyguard which protects people from the unhygienic world outside.
Dettol Antiseptic Liquid in its personal care segment has been extended in the following
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Soaps
Liquid Hand wash
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Body Wash
Shaving Cream
Medicated Plaster
Surface cleanser
Soaps, launched in 1981, have been the biggest growth driver accounting for around 75 per cent of the total revenue. Dettol bar soap has got 4.9% market share and four variants in the market are available nationally - Dettol Original, Dettol Skincare, and Dettol Fresh. Its competitors are Lux, Savlon, Lifebuoy and Santoor in the market.
Soaps have seen a growth of 8 to 9 percent in value and 2 to 3 percent in volumes in a Rs.7,500 Crore market that is growing.
The health platform has worked in other brand extensions as well. For example, liquid hands wash. Despite retailing at a higher price than competitors such as Fem and Lifebuoy, Dettol has maintained a lead in this segment with a 60 percent market share in the Rs 100 Crore market. It is available in three variants in a wide range of sizes from 250 ml to 1 Litre. The refill pouches of 200 ml are also available. Fem, Lifebuoy, Palmolive, Santoor, Savlon are its competitors.
In shaving cream, it has 30 percent share in a Rs.200 Crore market. Similarly, the shaving cream market was small (about Rs 50 crore at the time), but Dettol had strong compulsions to get into that category. A study commissioned by Reckitt in 1996 revealed that about 40 per cent of regular shavers used some kind of antiseptic lotion after shaving, and 30 per cent used Dettol liquid. The same study also showed that those who used Dettol didn't feel the need to use any after-shave lotion. Moreover, the average frequency of purchase of Dettol liquid was once every 10 months. That sent Reckitt looking for a product extension that could satisfy the same need and be picked up more often. Shaving creams and gels are part-utility and part-cosmetic products, and Dettol's two-in-one proposition didn't address the latter need at all.
Dettol Body wash, offers Dettol's trusted protection in a new, modern format. It has got 4% of market share and its market value is 16 Crores. Lux body wash, Dove and
Palmolive are its competitors.
Dettol Wash proof Medicated Plaster provides antiseptic protection to broken skin. Its non-stick pad gives additional comfort and does not stick to the wound. This special skin colour band blends with your skin and does not peel in water. It is proven to be safe and provides expert protection against germs.
The Dettol surface cleanser is said to safely kill harmful bacteria such as Salmonella, Listeria and E-Coli.
3.1 NEED FOR THE STUDY:
The Antiseptic liquid market in India is estimated at Rs. 120 Crores in 2008. The market is www.zenithresearch.org.in dominated by Dettol Antiseptic Liquid, which has close to 85% share. Johnson &
Johnson‟s Savlon is the other significant player with a market share of 13%. A few years
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back, this market saw introduction of Suthol brand antiseptic liquid from G.D. Pharma (makers of Boroline). Antiseptic Liquid is a well penetrated market and is sold in over 16 Lakhs outlets in the country. So the demand is more with a larger market share. The brand‟s revenues were pegged at Rs.900 Crore in July 2009, according to AC Nielsen data. Dettol, the 76-year old iconic brand from Reckitt Benckiser, is well on its way to achieving a turnover of Rs 1,000 Crore with its brand extensions. Sometimes the unsuccessful brand extensions create undesirable associations, which put the company at a serious risk (Aaker 1990: Lane and Jacobson 1995). The more products a company markets under one umbrella brand, the higher the risk that if a disaster occurs to one of them, the effect will spill over to the rest (Sullivan 1990). Opportunities to create a new brand are also foregone (Aaker 1990). Therefore the company needs to understand the significance of the factors determining the success of brand extensions to develop a right brand extensions strategy.
3.2 OBJECTIVES a) To examine the customer‟s awareness on brand extensions of Dettol. b) To analyze the factors determining the success of brand extensions. c) To examine the effectiveness of advertisement for the success of brand extensions.
3.2 RESEARCH DESIGN
The study covers both the primary and secondary data. Descriptive research design is most suitable. The primary data was collected by interview method by using a structured questionnaire. For the purpose of the study, the data has been collected in Chennai city. 100 respondents were selected for the study as sample using convenience sampling. The secondary data was collected from the published records, journals, magazines and web portals. The primary data was collected by administrating questionnaire cum interview schedules to consumers.
Sampling unit : Users and non-users of Dettol products in Chennai city.
Sample size : 100
Sampling design : Non-probability convenience sampling
The collected data was analyzed by using the tools Simple percentage analysis and chi- square.
3.3 LIMITATIONS OF THE STUDY
The study was restricted to certain areas of Chennai due to time and cost constraints and hence the findings cannot be extrapolated for other cities or regions. There may be changes in the environment in the future which in turn may influence consumer behaviour.
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4.1 DEMOGRAPHIC PROFILE OF RESPONDENTS
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AGE GROUP GENDER 10 16 – 20 16 24 21-25 Male 50 50 24 Female 26 26-30
EDUCATION LEVEL OCCUPATION 0 0 0 Primary School 10 Private Middle School 28 Government 30 60 High School 52 Business 20 Others Graduation 0
INCOME LEVEL FAMILY TYPE 0 2L-3L 20 25 3L – 4L Joint
54 26 4L-5L Nuclear 75 Above 5L
MARITAL STATUS
38 Married Unmarried
62
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The respondents fall under age group 16- above 35 years of both male and female.
Majority are working in private organisation and married.
MARKET SHARE OF BRAND ASSOCIATION DETTOL
0 0 5 10 8 Hygiene Dettol Cosmetic Savlon 28 Masculine Suthol 62 All None 87
From the above Pie Diagram it can be inferred that Dettol is the market leader and it is mostly associated with hygiene as positioned by the company.
AWARENESS LEVEL OF AWARENESS LEVEL OF DETTOL SOAP DETTOL HAND WASH 5 5
AWARE AWARE UNAWARE UNAWARE 95 95
From the above Pie Diagram it can be inferred that we clearly see that the Dettol hand wash and soap are the clear winners with the customers having more awareness.
AWARENESS LEVEL OF AWARENESS LEVEL OF DETTOL BODY WASH DETTOL SHAVING CREAM
30 AWARE 45 AWARE UNAWARE 70 55 UNAWARE
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AWARENESS LEVEL OF AWARENESS LEVEL OF DETTOL SURFACE DETTOL PLASTER CLEANER
43 AWARE 43 AWARE 57 UNAWARE 75 UNAWARE
However other products such as plaster (adhesive bandage), body wash, shaving cream and surface cleaner do not capture a share of the consumers mind to that good extent.
AWARENESS THROUGH TELEVISION
Dettol Surface cleanser Dettol Medicated Plaster Dettol Shaving Cream Dettol Body Wash AWARENESS THROUGH Dettol Liquid Hand wash TELEVISION Dettol Soap
0 20 40 60 80
From the above Diagram it can be inferred that we clearly see that Television advertisement plays very important role in creating awareness.
4.2 CONSUMER ATTITUDE TOWARDS DETTOL BRAND
80 70 60 50 40
30 STRONGLY AGREE 20 10 AGREE 0 NEUTRAL DISAGREE STRONGLY DISAGREE
From the above Diagram it can be inferred that overall consumer attitude in terms of www.zenithresearch.org.in likability, fit, quality, positioning, willingness to purchase and value for money is positive
towards Dettol brand.
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4.3 CONSUMER ATTITUDE TOWARDS DETTOL SOAP
80 70 60 50 40 30 STRONGLY AGREE 20 10 AGREE 0 NEUTRAL DISAGREE STRONGLY DISAGREE
From the above Diagram it can be inferred that overall consumer attitude in terms of similarity fit, association, relevancy, quality, value addtion is positive towards extended product Dettol soap.
4.4 CONSUMER ATTITUDE TOWARDS DETTOL HADN WASH
70 60 50 40 30 STRONGLY AGREE 20 10 AGREE 0 NEUTRAL DISAGREE STRONGLY DISAGREE
The extensionThe fitsextension withThe th... extensionfits consu...Extensions is relevantThe give brand... value extensionsThe add... overallI amadd... quality likely of to bra.. try brand ex...
From the above Diagram it can be inferred that overall consumer attitude in terms of www.zenithresearch.org.in similarity fit, association, relevancy, quality, value addtion is positive towards extended
product Dettol hand wash.
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4.5 CONSUMER ATTITUDE TOWARDS DETTOL BODY WASH
60 50
40 30 STRONGLY AGREE 20 AGREE 10 NEUTRAL 0 DISAGREE The The The Extensions The brand The overall extension fits extension fits extension is give value extensions quality of STRONGLY DISAGREE with the core consumer relevant with addition over add value to brand values of the associations the competitors’ the parent extensions is parent with the consumers. brand. brand. good. brand. parent brand.
From the above Diagram it can be inferred that overall consumer attitude in terms of similarity fit, association, relevancy, quality, value addtion is positive towards extended product Dettol body wash.
4.6 CONSUM ER ATTITUDE TOWARDS DETTOL PLASTER
60 50
40 30 STRONGLY AGREE 20 AGREE 10 NEUTRAL 0 DISAGREE The The The Extensions The brand The overall extension fits extension fits extension is give value extensions quality of STRONGLY DISAGREE with the core consumer relevant with addition over add value to brand
values of the associations the competitors’ the parent extensions is parent with the consumers. brand. brand. good. brand. parent brand.
From the above Diagram it can be inferred that majority consumer attitude in terms of similarity fit, association, relevancy, quality, value addtion is positive towards extended product Dettol plaster.
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4.7 CONSUMER ATTITUDE TOWARDS DETTOL SHAVING CREAM
60
50
40
30 STRONGLY AGREE 20 AGREE 10 NEUTRAL 0 DISAGREE The The The Extensions The brand The overallI am likely to STRONGLY DISAGREE extension fitsextension fitsextension is give value extensions quality of try brand with the coreconsumerrelevant withaddition overadd value to brand extensions in values of theassociations the competitors’the parentextensions is future. parent with the consumers. brand. brand. good. brand. parent brand.
From the above Diagram it can be inferred that majority consumer attitude in terms of similarity fit, association, relevancy, quality, value addtion is positive towards extended product Dettol shaving cream.
4.8 CONSUM ER ATTITUDE TOWARDS DETTOL SURFACE CLEANER
100 80 60 40 STRONGLY DISAGREE 20 DISAGREE 0 NEUTRAL AGREE
STRONGLY AGREE
The extensionThe fits extension with th...The fits extension consu...Extensions is relevant giveThe ... brandvalue add...extensionsThe overall add... quality of bra..
From the above Diagram it can be inferred that majority consumer attitude in terms of similarity fit, association, relevancy, quality, value addtion is positive towards extended product Dettol shaving cream.
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4.9 CONSUMER ATTITUDE TOWARDS ADVERTISEMENT
70
60
50
40 STRONGLY AGREE 30 AGREE 20 NEUTRAL
10 DISAGREE STRONGLY DISAGREE 0 Enhance the Increases the Enhances the Helps to Provides Enhances Increases brand sales brand image differentiate market product emotional awareness brands information of category attachment of brand familiarity consumers extension
Majority consumers strongly agree that advertisment enhances brand awareness, brand image, differentiate brands and brings emotional attachment of consumers.
5. FINDINGS
1. The respondents fall under age group 16 above 35 years of both male and female and majority are working in private organisation and are married.
2. Dettol antiseptic liquid is the market leader and it is mostly associated with hygiene by the consumers as positioned by the company.
3. Dettol hand wash and soap are the clear winners with the customers having more awareness. However other products such as plaster (adhesive bandage), body wash, shaving cream and surface cleaner do not capture a share of the consumers mind to
that good extent.
4. Television advertisement plays very important role in creating awareness.
5. The overall consumer attitude in terms of likability, fit, quality, positioning, willingness to purchase and value for money is positive towards Dettol brand.
6. The overall consumer attitude in terms of similarity fit, association, relevancy, quality, value addtion is positive towards extended product Dettol soap, Dettol hand wash and body wash.
7. The majority consumer attitude in terms of similarity fit, association, relevancy, quality, value addtion is positive towards extended product plaster, Dettol shaving
cream and Dettol surface cleaner. However, some of the consumers show negative www.zenithresearch.org.in
attitude towards these products.
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8. Majority consumers strongly agree that advertisment enhances brand awareness, brand image, differentiate brands and brings emotional attachment of consumers.
6. INFERENCES AND RECOMMENDATIONS
1. From the above findings, it is understood that for success of extension consumers
associations and fit with the parent brand is very significant. It is obvious in case of Dettol soap, hand wash and body wash. In the case of soap, where the extension worked well, the product maintained the core value of protection against germs without cosmetic appeal. That is why when Reckitt tried to add cosmetic appeal for its soap by adding moisturiser in Dettol Extra, it didn't work. Dettol liquid soap was positioned as a germ fighting antiseptic soap which was congruent with the image of the parent brand.
2. Shaving cream and gel are part-utility and part-cosmetic products, and Dettol two- in-one proposition did not address the latter need at all (after all, no one would have wanted to smell of Dettol after a shave). The extended products should fit with the core value of parent brand. At the same time the business fit also taken into consideration for its success. In case of shaving cream, there is no business fit. In 2000, Reckitt made the same mistake when it entered the talc market with Dettol prickly heat talc. The size of the talcum powder market is roughly Rs.750 Crore, but the prickly heat segment accounts for less than 15 per cent of that. Finally, Dettol talc was phased out.
3. Although there is fit with parent brand, the reason for negative attitude of floor cleaner is same for body use & floor cleaning use could have been unacceptable from consumers point of view. The consumers psychology should be studied for launching any product. The consumer survey is to be taken to know interest over certain products.
4. Since advertisment plays important role in creating awareness and image, it should be improved to make the consumers understand their emotional attachment with the brand.
5. The pioneer brands are always successful as in the case of Johnson band-aid and
Dettol could not take away their market share in spite of proper image fit.
7. CONCLUSION
This study advances knowledge of brand extensions in several ways. First, we found that perceived similarity is a crucial factor in the evaluation of services brand extensions. This finding concurs with the hypothesis in the brand extension literature that any brand which is extended into similar categories should receive high consumer evaluations (see, e.g., Aaker and Keller 1990). Second, the reputation of the parent brand is a crucial factor influencing the likelihood of a successful brand extension.
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8. REFERENCES
1. Aaker, David A. (1996), “Building Strong Brands”, New York: The Free Press, 380 p.
2. Aaker, David A. and Keller, Kevin Lane (1990), “Consumer Evaluations of Brand
Extensions”, Journal of Marketing, 54, (January), pp. 27-41.
3. Völckner, F and Sattler, H. 2006, “Drivers of brand extension success”, Journal of Marketing, vol. 70, no. 2, pp. 18-34.
4. Hem, Leif E., Leslie de Chernatony, and Nina M. Iversen (2001), “Factors Influencing Successful Brand Extensions,” working paper, Birmingham University Business School, Birmingham,UK.
5. Nijssen, E. J. 1999, “Success factors of line extensions of fast-moving consumer goods”,European Journal of Marketing, vol. 33, no. 5, pp. 450-469.
6. De Chernatony, L., Dall‟Olmo, R. F. and Harris, F. 1998, “Criteria to assess brand success”,Journal of Marketing Management, vol. 14, no. 7, pp. 765-781.
7. Reddy, Srinivas K., Susan L. Holak, and Subodh Bhat (1994), “To Extend or Not to Extend: Success Determinants of Line Extensions,” Journal of Marketing Research, 31 (May), 243–62.
8. Baker, W., Hutchinson, J. Wesley, Moore, D. and Nedungadi, P. (1986), “Brand Familiarity and Advertising: Effects on the Evoked Set and Brand Preferences”. In: Advances inConsumer Research, 13. (Ed.) Lutz, R. J. (UT), Association for Consumer Research,pp. 146-147.
9. Business Standard 7th Sep 2009 “Dettol finds Wealth in Health” Page No 14
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THE ROLE OF CORPORATE GOVERNANCE IN DEVELOPMENT OF CO-OPERATIVE BANKS IN INDIA
DR. M. P. NAIK*
*Associate Professor and P. G. Centre Co-ordinator, Department of Commerce, P G Centre Government College, Kusnur Road, Gulbarga - 585105, Karnataka.
ABSTRACT
Corporate governance especially in the co-operative sector has come into sharp focus because more and more co-operative banks in India, both in urban and rural areas, have experienced grave problems in recent times which has in a way threatened the profile and identity of the entire cooperative system. These problems include mismanagement, financial impropriety, poor investment decisions and the growing distance between members and their co-operative society.
The purpose and objectives of co-operatives provide the framework for co-operative corporate governance. Co- operatives are organized groups of people and jointly managed and democratically controlled enterprises. They exist to serve their members and depositors and produce benefits for them. Co-operative corporate governance is therefore about ensuring co-operative relevance and performance by connecting members, management and the employees to the policy, strategy and decision-making processes.In the years to come, the Indian financial system will grow not only in size but also in complexity as the forces of competition gain further momentum and financial markets acquire greater depth. We can assure you that the policy environment will remain supportive of healthy growth and development with accent on more operational flexibility as well as greater prudential regulation and supervision. The real success of our financial sector reforms will however depend primarily on the organizational effectiveness of the banks, including cooperative banks, for which initiatives will have to come from the banks themselves. It is for the co-operative banks themselves to build on the synergy inherent in the cooperative structure and stand up for their unique qualities. With elements of good corporate governance, sound investment policy, appropriate internal control systems, better credit risk management, focus on newly-emerging business areas like micro finance, commitment to better customer service, adequate automation and proactive policies on house-keeping issues, co-operative banks will definitely be able to grapple with these challenges and convert them into opportunities.
KEYWORDS: Corporate, Management, Governance, Bank, Challenges.
INTRODUCTION
For the co-operative banks in India, these are challenging times. Never before has the need for restoring customer confidence in the cooperative sector been felt so much. Never
before has the issue of good governance in the co-operative banks assumed such criticality. www.zenithresearch.org.in
The literature on corporate governance in its wider connotation covers a range of issues
such as protection of
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Corporate governance especially in the co-operative sector has come into sharp focus because more and more co-operative banks in India, both in urban and rural areas, have experienced grave problems in recent times which has in a way threatened the profile and identity of the entire cooperative system. These problems include mismanagement, financial impropriety, poor investment decisions and the growing distance between members and their co-operative society.
The purpose and objectives of co-operatives provide the framework for co-operative corporate governance. Co- operatives are organized groups of people and jointly managed and democratically controlled enterprises. They exist to serve their members and depositors and produce benefits for them. Co-operative corporate governance is therefore about ensuring co-operative relevance and performance by connecting members, management and the employees to the policy, strategy and decision-making processes.
GENESIS OF CORPORATE GOVERNANCE
The seeds of modern corporate governance were probably sown by the Watergate scandal in the USA. Subsequent investigations by US regulatory and legislative bodies highlighted control failures that had allowed several major corporations to make illegal political contributions and bribe government officials. While these developments in the US stimulated debate in the UK, a spate of scandals and collapses in that country in the late 1980s and early 1990s led shareholders and banks to worry about their investments. Several companies in UK which saw explosive growth in earnings in the ‟80s ended the decade in a memorably disastrous manner. Importantly, such spectacular corporate failures arose primarily out of poorly managed business practices.
This debate was driven partly by the subsequent enquiries into corporate governance (most notably the Cadbury Report) and partly by extensive changes in corporate structure. In May 1991, the London Stock Exchange set up a Committee under the chairmanship of Sir Arian Cadbury to help raise the standards of corporate governance and the level of confidence in financial reporting and auditing by setting out clearly what it sees as the respective responsibilities of those involved and what it believes is expected of them. The Committee investigated accountability of the Board of Directors to shareholders and to the society. It submitted its report and the associated „Code of Best Practices’ in December 1992 wherein it spelt out the methods of governance needed to achieve a balance between the essential powers of the Board of Directors and their proper accountability. Being a pioneering report on corporate governance, it would perhaps be in order to make a brief reference to its recommendations which are in the nature of guidelines relating to, among other things, the Board of Directors and Reporting & Control.
The Cadbury Report stipulated that the Board of Directors should meet regularly, retain full and effective control over the company and monitor the executive management. There should be a clearly accepted division of responsibilities at the head of the company which
will ensure balance of power and authority so that no individual has unfettered powers of www.zenithresearch.org.in decision. The Board should have a formal schedule of matters specifically reserved to it
for decisions to ensure that the direction and control of the company is firmly in its hands.
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There should also be an agreed procedure for Directors in the furtherance of their duties to take independent professional advice.
The Cadbury Report generated a lot of interest in India. The issue of corporate governance was studied in depth and dealt with by the Confederation of Indian Industries (CII), Associated Chamber of Commerce and Industry (ASSOCHAM) and Securities and Exchange Board of India (SEBI). These studies reinforced the Cadbury Report‟s focus on the crucial role of the Board and the need for it to observe a Code of Best Practices. Co- operative banks as corporate entities possess certain unique characteristics. Paradoxical as it may sound, evolution of co-operatives in India as peoples‟ organizations rather than business enterprises adopting professional managerial systems has hindered growth of professionalism in co-operatives and proved to be a neglected area in their evolution.
THE SPECIAL PLACE OF BANKING
The banking sector is not necessarily totally corporate. Some part of it is, of course, but a segment of banks is mostly government owned as statutory corporations or run as cooperatives – just like your bank. Banking as a sector has been unique and the interests of other stake holders appear more important to it than in the case of non-banking and non- finance organizations. In the case of traditional manufacturing corporations, the issue has been that of safeguarding and maximizing the shareholders‟ value. In the case of banking, the risk involved for depositors and the possibility of contagion assumes greater importance than that of consumers of manufactured products. Further, the involvement of government is discernibly higher in banks due to importance of stability of financial system and the larger interests of the public. Since the market control is not sufficient to ensure proper governance in banks, the government does see reason in regulating and controlling the nature of activities, the structure of bonds, the ownership pattern, capital adequacy norms, liquidity ratios, etc.
REASONS FOR HIGH DEGREE OF OVERSIGHT
There are three reasons for degree of government oversight in this sector.
Firstly, it is believed that the depositors, particularly retail depositors, can not effectively protect themselves as they do not have adequate information, nor are
they in a position to coordinate with each other.
Secondly, bank assets are unusually opaque, and lack transparency as well as liquidity. This condition arises due to the fact that most bank loans, unlike other products and services, are usually customized and privately negotiated.
Thirdly, it is believed that that there could be a contagion effect resulting from the instability of one bank, which would affect a class of banks or even the entire financial system and the economy. As one bank becomes unstable, there may be a heightened perception of risk among depositors for the entire class of such banks, resulting in a run on the deposits and putting the entire financial system in jeopardy.
ROLE OF THE GOVERNMENT AND THE REGULATOR www.zenithresearch.org.in
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Regulators are external pressure points for good corporate governance. Mere compliance with regulatory requirements is not however an ideal situation in itself. In fact, mere compliance with regulatory pressures is a minimum requirement of good corporate governance and what are required are internal pressures, peer pressures and market pressures to reach higher than minimum standards prescribed by regulatory agencies. RBI‟s approach to regulation in recent times has some features that would enhance the need for and usefulness of good corporate governance in the co-operative sector. The transparency aspect has been emphasized by expanding the coverage of information and timeliness of such information and analytical content. Importantly, deregulation and operational freedom must go hand in hand with operational transparency. In fact, the RBI has made it clear that with the abolition of minimum lending rates for co-operative banks, it will be incumbent on these banks to make the interest rates charged by them transparent and known to all customers. Banks have therefore been asked to publish the minimum and maximum interest rates charged by them and display this information in every branch. Disclosure and transparency are thus key pillars of a corporate governance framework because they provide all the stakeholders with the information necessary to judge whether their interests are being taken care of. We in RBI see transparency and disclosure as an important adjunct to the supervisory process as they facilitate market discipline of banks.
Another area which requires focused attention is greater transparency in the balance sheets of co-operative banks. The commercial banks in India are now required to disclose accounting ratios relating to operating profit, return on assets, business per employee, NPAs, etc. as also maturity profile of loans, advances, investments, borrowings and deposits. The issue before us now is how to adapt similar disclosures suitably to be captured in the audit reports of co-operative banks. RBI had advised Registrars of Co- operative Societies of the State Governments in 1996 that the balance sheet and profit & loss account should be prepared based on prudential norms introduced as a sequel to Financial Sector Reforms and that the statutory/departmental auditors of co-operative banks should look into the compliance with these norms. Auditors are therefore expected to be well-versed with all aspects of the new guidelines issued by RBI and ensure that the profit & loss account and balance sheet of cooperative banks are prepared in a transparent manner and reflect the true state of affairs. Auditors should also ensure that other necessary statutory provisions and appropriations out of profits are made as required in terms of Co-operative Societies Act / Rules of the state concerned and the bye-laws of the
respective institutions.
BOARD OF DIRECTORS AND THEIR COMMITTEES
At the initiative of the RBI, a consultative group, aimed at strengthening corporate governance in banks, headed by Dr. Ashok Ganguli was set up to review the supervisory role of Board of banks. The recommendations include the role and responsibility of independent non-executive directors, qualification and other eligibility criteria for appointment of non-executive directors, training the directors and keeping them current with the latest developments. Private sector banks, etc. it is unanimously accepted that the most crucial aspect of corporate governance is that the organization have a professional board which can drive the organization through its ability to perform its responsibility of meeting regularly, retaining full and effective control over the company and monitor the executive management. Some of the important recommendations on the constitution of the www.zenithresearch.org.in
Board are:
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Qualification and other eligibility criteria for appointment of non-executive directors.
Defining role and responsibilities of directors including the recommended "Deed of Covenant" to be executed by the bank and the directors in conduct of the board functions.
Training the directors and keeping them abreast of the latest developments.
MEASURES TAKEN BY BANKS TOWARDS IMPLEMENTATION OF BEST PRACTICES
1. PRUDENTIAL NORMS
Prudential norms in terms of income recognition, asset classification, and capital adequacy have been well assimilated by the Indian banking system. In keeping with the international best practice, starting 31st March 2004, banks have adopted 90 days norm for classification of NPAs. Also, norms governing provisioning requirements in respect of doubtful assets have been made more stringent in a phased manner. Beginning 2005, banks will be required to set aside capital charge for market risk on their trading portfolio of government investments, which was earlier virtually exempt from market risk requirement.
2. CAPITAL ADEQUACY
All the Indian banks barring one today are well above the stipulated benchmark of 9 per cent and remain in a state of preparedness to achieve the best standards of CRAR as soon as the new Basel 2 norms are made operational. In fact, as of 31st March 2009, banking system as a whole had a CRAR close to 17 per cent.
3. INCOME RECOGNITION FRONT
On the Income Recognition Front, there is complete uniformity now in the banking industry and the system therefore ensures responsibility and accountability on the part of the management in proper accounting of income as well as loan impairment.
4. ALM AND RISK MANAGEMENT PRACTICES
At the initiative of the regulators, banks were quickly required to address the need for Asset Liability Management followed by risk management practices. Both these are critical areas for an effective oversight by the Board and the senior management which are implemented by the Indian banking system on a tight time frame and the implementation review by RBI. These steps have enabled banks to understand measure and anticipate the impact of the interest rate risk and liquidity risk, which in deregulated environment is gaining importance.
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5. PROFESSIONALISM
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Professionalism reflects the co-existence of high level of skills and standards in performing duties entrusted to an individual. The absence of a proper system of placement and skill up-gradation inputs constrain professional management in co-operative banks. Though there is a system of training in place in many co-operative banks, attempts are seldom made to match them with the current and future staff requirements. It is desirable that the training programs encompass skill up-gradation and aptitude development in full measure. It is also necessary to keep the staff sufficiently motivated through periodic job rotation, job enrichment and recognition of performance. The co-operative banks should indeed work like professional organizations on sound managerial systems in tune with the needs of the time taking care of future projections of requirements to retain and improve their market share and identity in the long run. It is in this context that professionalism and accountability of the banks‟ boards assume such critical significance.
6. INTERNAL CONTROL SYSTEMS
Appropriate internal control systems become even more critical in the context of the growing emphasis on diversification of business products as the prime need at all levels in co-operative credit institutions. It is indeed necessary for co-operative banks to devote adequate attention to maximizing their returns on every unit of resources through an effective funds management strategy and mechanism.
7. DEVELOPMENT OF HUMAN CAPITAL
Success of economic decisions depends after all on the human resources at the disposal of any organization. A change is needed today in the co-operative banks which is built on confidence in human capital - the most important of all resources - in commitment, creativity and innovation brought about by proactive management, membership and employees. Strong corporate governance that takes its obligations seriously can truly be a source of strength to the management. The ability to capture knowledge and wisdom gives co-operative banks their competitive advantage. A prerequisite is that participants from all parts of a co-operative organization know and understand its purpose, core values and visions.
MEASURES TAKEN BY REGULATOR TOWARDS CORPORATE GOVERNANCE
Regulators are external pressure points for good corporate governance. Mere compliance with regulatory requirements is not however an ideal situation in itself. In fact, mere compliance with regulatory pressures is a minimum requirement of good corporate governance and what are required are internal pressures, peer pressures and market pressures to reach higher than minimum standards prescribed by regulatory agencies. RBI‟s approach to regulation in recent times has some features that would enhance the need for and usefulness of good corporate governance in the co-operative sector. Reserve Bank of India has taken various steps furthering corporate governance in the Indian Banking System. These can broadly be classified into the following three categories: a) Transparency
b) Off-site surveillance www.zenithresearch.org.in
c) Prompt corrective action
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The transparency aspect has been emphasized by expanding the coverage of information and timeliness of such information and analytical content. Importantly, deregulation and operational freedom must go hand in hand with operational transparency. In fact, the RBI Governor‟s April 2002 Monetary & Credit Policy announcements have made it clear that with the abolition of minimum lending rates for co-operative banks, it will be incumbent on these banks to make the interest rates charged by them transparent and known to all customers. Banks have therefore been asked to publish the minimum and maximum interest rates charged by them and display this information in every branch. Disclosure and transparency are thus key pillars of a corporate governance framework because they provide all the stakeholders with the information necessary to judge whether their interests are being taken care of. RBI see transparency and disclosure as an important adjunct to the supervisory process as they facilitate market discipline of banks.
Another area which requires focused attention is greater transparency in the balance sheets of co-operative banks. The commercial banks in India are now required to disclose accounting ratios relating to operating profit, return on assets, business per employee, NPAs, etc. as also maturity profile of loans, advances, investments, borrowings and deposits. The issue before us now is how to adapt similar disclosures suitably to be captured in the audit reports of co-operative banks. RBI had advised Registrars of Co- operative Societies of the State Governments in 1996 that the balance sheet and profit & loss account should be prepared based on prudential norms introduced as a sequel to Financial Sector Reforms and that the statutory/departmental auditors of co-operative banks should look into the compliance with these norms. Auditors are therefore expected to be well-versed with all aspects of the new guidelines issued by RBI and ensure that the profit & loss account and balance sheet of co-operative banks are prepared in a transparent manner and reflect the true state of affairs. Auditors should also ensure that other necessary statutory provisions and appropriations out of profits are made as required in terms of Co-operative Societies Act / Rules of the state concerned and the bye-laws of the respective institutions.
The off-site surveillance mechanism is also active in monitoring the movement of assets, its impact on capital adequacy and overall efficiency and adequacy of managerial practices in banks. RBI also brings out the periodic data on "Peer Group Comparison" on critical
ratios to maintain peer pressure for better performance and governance.
Prompt corrective action has been adopted by RBI as a part of core principles for effective banking supervision. As against a single trigger point based on capita adequacy normally adopted by many countries, Reserve Bank in keeping with Indian conditions have set two more trigger points namely Non-Performing Assets (NPA) and Return on Assets (ROA) as proxies for asset quality and profitability. These trigger points will enable the intervention of regulator through a set of mandatory action to stem further deterioration in the health of banks showing signs of weakness.
INVESTMENT CEILING
Banks were advised that only brokers registered with NSE or BSE or OTCEI should be www.zenithresearch.org.in
utilized for acting as intermediary. If the deal is put through a broker, the role of the broker
should be restricted to that of bringing the two parties to the transaction together. The
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CONCLUSION
In the years to come, the Indian financial system will grow not only in size but also in complexity as the forces of competition gain further momentum and financial markets acquire greater depth. I can assure you that the policy environment will remain supportive of healthy growth and development with accent on more operational flexibility as well as greater prudential regulation and supervision. The real success of our financial sector reforms will however depend primarily on the organizational effectiveness of the banks, including cooperative banks, for which initiatives will have to come from the banks themselves. It is for the co-operative banks themselves to build on the synergy inherent in the cooperative structure and stand up for their unique qualities. With elements of good corporate governance, sound investment policy, appropriate internal control systems, better credit risk management, focus on newly-emerging business areas like micro finance, commitment to better customer service, adequate automation and proactive policies on house-keeping issues, co-operative banks will definitely be able to grapple with these challenges and convert them into opportunities.
REFERENCES
1. Abiman Das (1999) “Profitability of public sector Banks” A decomposition model, July, 55-81.
2. Angadis, V.B. and Devaraj V.J. (1983) “Productivity and profitability of Banks in India” Economic and political weekly, November, Vol. 18(26): 48.
3. Amitab Tiwari (1981) “Banking for Development in India” Southern Economist,
April, Vol. 15 (8): 12-13.
4. Patel, A. R. (1995) “Rural Banking: Service Area Policy Shift Needed” Kisan World, August 1, Vol .34(4) 17.
5. Ashok. K. Nag and Abiman Das (2002) “Credit Growth and Response to Capital Requirements” Economic and Political Weakly, August Vol XXXVII. (32) 2460- 2467.
6. Bhairav. H. Desai (2002) “Concept of break even analysis and Bank profitability – a case study”, The Indian Journal of Commerce, Vol.53, No.182. PP. 53-59.
7. Charan D. Wadhwa (1980) “Rural Bank for Rural Development” Macmillan & www.zenithresearch.org.in
Company Delhi.
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8. http://www.rbi.in/scripts/BS-view Bulletin7135
9. http://www.rbi.in/scripts/BS-view Bulletin6696
10. http://www.rbi.org.in/scripts/BS-view Bulletin7211
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A COMPARATIVE STUDY OF TOURIST RESOURCES OF GUJARAT STATE
DR. HITESH S. VIRAMGAMI*; DR. J. K. PATEL**
*Assistant Professor, Department of Commerce. **Principal, V. R. Patel College of Commerce, Mehsana – 384002, Gujarat.
ABSTRACT
In the present research study, all tourist places of Gujarat state and tourists visiting these tourist places comprise the universe of the study. Tourist paces, from tourist resources point of view, have been stratified into twelve categories. Samples from 12 categories have been selected using “Stratified Random Sampling” method. Sample size is restricted to 1000. 1000 sample units have been stratified into Domestic respondents numbering 797 and foreign respondents numbering 203. An attempt has been done to select 1000 respondents from all 12 strata of tourist resources. Details of sampling plan have been presented in the respective table. A multiple-choice questionnaire has been prepared to get comprehensive information about comparative study of tourism resources in Gujarat from tourists- both domestic and foreign tourists. The researcher has done bi – variate data analysis and tabulated the data in cross tabulation to study the respondent’s opinion about selected variables. The relationship between selected variables have been tested using statistical test named “Chi – Square Test” and provided its corresponding p – values. The level of significance is fixed at 5% cut off point.
The information analyzed in the present research paper provides an insight into the tourist traffic trends in Gujarat state. Gujarat state has emerged as an attracting tourist place and TCGL is progressively looking towards marketing of tourism in Gujarat. This research paper furnishes important information regarding comparative study of tourist resources of Gujarat state according to nationality, gender and age group of selected respondents and respondents’ opinion about facilities of tourist complexes, quality of food, price being charged for services and tourism promotion facilities. The distribution of respondents according to type of tourist place and its cross tabulation are all the important as it indicates the effectiveness of the tourist supplier experienced by the users. Respondents’ opinions about major tourist resources and various tourist facilities indicate that majority of respondents satisfy with the existing tourist resources and tourist facilities. Respondents have also suggested new certain activities to be introduced for tourism promotion. ______
INTRODUCTION
Tourism has come to be recognized as a significant factor in the economy of many nations. In all countries, marketing of tourism plays significant role for their economic development. Marketing of tourism is beneficial to the economy by the tax benefit, image
building, educational significance, cultural significance, earning of foreign exchange, www.zenithresearch.org.in generating employment opportunities and there by creating global peaceful environment.
Hence, Govt. of India has established department of tourism at national level and state
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EXCEL International Journal of Multidisciplinary Management Studies Vol.2 Issue 2, February 2012, ISSN 2249 8834 Online available at http://zenithresearch.org.in/ governments have established state level tourism corporation for encouraging, monitoring and relating tourism management –Problem and prospects. Marketing of tourism plays a vital role for economic and industrial development of our country. Tourist visits various places for a variety of motives and tourist utilizes many forms of tourism. In the present scenario, tourism marketing has imaged as a recent phoneme in order to satisfy modern need of tourist and to attract more and more tourists by marketing mix. An attractive and innovative package of tour can be offered because of such great importance of tourism marketing.
1. RESEARCH METHODOLOGY
1. RATIONALE OF THE RESEARCH STUDY
The topic as regards this, research work has been done to make a comparative study of various tourist resources of Gujarat state. Gujarat is the land of many respectable personalities like lord Krishna, social reformer Dayanand Saraswati, the father of the Nation -Mahatma Gandhi, the Iron Man of India-Sardar Patel and alike. Gujarat has rich heritage in various fields like handicrafts, customs, traditions, culture, architecture, fairs and festivals, wildlife and so on. Gujarat is blessed with everything a tourist looks forward to; Gujarat is a package by itself, which includes Archaeological/Historical Destinations, Beautiful Beaches, Cultural centers, Hill Stations, Wild life, Religious places, Fairs and Festivals. Gujarat is one of the leading states in the fields of tourism in India. Since last some years, there has been a great development in the tourism of the state. The dynamic and growth oriented Govt. of Gujarat is determined to develop Tourism as a key industry to make it an important contributor to the state's economic and social growth and to offer a right blend of Business and Pleasure & The Tourism Corporation of Gujarat Ltd has a wide network of tourist facilities.
As each state in the country presents its own geo-socio-cultural identity, it demands specific tourism development plans and actions thoughts within the umbrella of an overall tourism prospective for the country. Being a resident of Gujarat, a research project related to the state naturally came as an obvious choice. Moreover familiarity with the state, language known and feeling of doing something for the state has crated upon to select - Title of the problem: “A Comparative Study of Tourist Resources of Gujarat State”.
The study specifically is aimed towards finding respondents’ opinion about various tourist resources of Gujarat state.
In Gujarat State, Tourism Corporation of Gujarat Ltd (TCGL) has been established for developing Gujarat state as a key state for tourism industry by evolving an entirely new concept of tourism management
2. OBJECTIVES OF THE STUDY
The present research study will be undertaken with the following objectives in views:
2.1 To study various tourist resources of Gujarat state according nationality of
respondents www.zenithresearch.org.in www.zenithresearch.org.in
2.2 To study various tourist resources of Gujarat state according gender of respondents.
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2.3 To study various tourist resources of Gujarat state according age group of respondents.
2.4 To study respondents’ opinion about facilities of tourist complexes, quality of food, price being charged for the facilities and tourism promotion facilities at various types of tourist places.
2.5 To obtain respondents’ opinion about new activities to be introduced for tourism promotion in Gujarat.
3. HYPOTHESES OF THE RESEARCH STUDY
THE PRESENT RESEARCH STUDY IS BASED ON THE FOLLOWING HYPOTHESES
1. Ho: There is no significant difference between respondents visiting various types of tourist place and their nationality, gender and age - group.
H1: There is significant difference between respondents visiting various types of tourist place and their gender and age - group.
2. Ho: There is no significant difference between types of tourist place visited by respondents and their opinion about facilities of tourist complexes, quality of food, price charged for the facilities and tourism promotion facilities.
H1: There is significant difference between types of tourist place visited by respondents and their opinion about facilities of tourist complexes, quality of food, price charged for the facilities and tourism promotion facilities.
4. REVIEW OF LITERATURE
Tremendous development in tourism industry over the last four decades, its multifarious benefits and its future growth prospects have all together tourism a subject of extensive study and research. Though, in resent times, a considerable amount of literature on different aspects of tourism is available, still there is a great paucity of information. The literature available is of lop-sided nature in as much as there is no exhaustive information
about any single aspect of tourism industry. Obviously, in the context of present study too, except for the conceptual aspect, the scarcity of literature was greatly felt.
Realizing the necessity to undertake in depth analysis of studies relating to marketing of tourism, the researcher has investigated earlier studies.
Following studies have been done on either this aspect or related aspects.
1. Pareek Deepa has studied on “Tourism industry in Rajasthan” and awarded Ph.D. degree from Department of economics, University of Rajasthan, Jaipur.1
2. Sharma Rakesh has studied on “Tourism in the Kangra Vally, Himachal Pradesh: A
study in socio economic affects of tourism” in 1995 under the supervision of Dr. S. C. www.zenithresearch.org.in
Bagri, Department of Tourism, Hemwati Nandan Bahuguna Garhwal University,
Srinagar.2
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3. Sonal Bhatt has studied on “Reaping the economic benefits of tourism: - Some initiatives and approaches”.3
4. Vijan J has studied on “Tourism development and involvement of local people at destination” in March – April 2008 under the supervision of Dr. J. Rajan, Department of Commerce, University of Kerala, Thiruvananthauram.4
5. Sachdeva, Jai Kiran has studied on “A study of manpower planning in tourism sector in India” in March-April 2008 under the supervision of Dr. Ravindra Vinayak, Dept. of Commerce, Maharshi Dayanand University, Rohtak, March.5
6. Maira Renu has been awarded Ph.D. degree on “Importance of tourism on environment – case study of selected hill stations of Uttranchal” from Department of Management, Kurushetra university, Kurishetra6.
7. Singh, Kavita has studied on “Indian Tourism marketing through E-commerce” in March 2008 under the supervision of Prof. B. K. Punia, Department of Management, Guru Jambheshwar University of science and technology, Hisar7.
8. A research work on “Tourism and tourist industry” by Tej Vir singh (1976) is one of the pioneer works on tourism in India. The work is organized in four sections. The first section deals with physical and cultural features, presenting a complete picture of UP’s tourism potential in her land and people. Second section is on historical approach tracing the evolution and development of tourism in the state. The third section describes the status of tourism related sectors (accommodation, transport, souvenir, recreation and entertainment) and provides an overview of impact of tourism of the state’s economy. The fourth and final section is a study on nine major tourist centers of UP. The conclusion is more than a traditional summing up providing an insight on the role of tourism, impotence of market research, tourism education and training, tourism planning and there related aspects.8
9. Kaur Kawaljeet, Department of Economics, Guru Gobind Singh College, Punjab University, XLRL, Jamshedpur has studied on “Tourism Markets : Taking shape for turbulent times”.9
10. Batra G. S., Department of Business Management, Punjab University, Patiala has 10 studied on “Marketing of Tourism Services in India – Strategic issues”.
11. Research work has been done by K. L. Batra on “Problems and Proscets of Tourism in Rajasthan”, by M. M. Anand on “Tourism and Hotel Industry in India : A Study in Management”and by M. Selvam on “Tourism Industry in India : A Study of its Growth and its Development Needs with special reference to Tamilnadu.11
12. Faziti, Asif Iqbal has studied on “A Study of Marketing Strategy of Potential Tourism Products in Jammu and Kashmir” in May-June 2008 under the supervision of Dr. S. Husain AShraf, Department of Commerce, Aligarh Muslim University, Aligarh.12
13. Saravanan T. has studied on “Tourism Management in Dindigul District of Tamilnadu” under the supervision of of Dr. M Soundarapandian, Department of Management, www.zenithresearch.org.in
Gandhigram Rural Institutte, Bandhighram, (Dist. Dindigul) in July – August, 2008.13
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All these studies reveal the fact that number of researches have been come out on Tourism subject. But a research work on a comparative study of tourist resources with special reference to Gujarat state has not been undertaken to the best of my knowledge. Hence the present research study attempts to study and review scientifically various tourist resources of Gujarat state.
5. UNIVERSE AND SAMPLING PLAN
5.1 UNIVERSE
In the present research study, all tourist places of Gujarat state and tourists visiting these tourist places comprise the universe of the study.
5.2 SAMPLING PLAN
For the study of marketing of tourism in Gujarat, tourist places of Gujarat - included in the list of tourist places of TCGL and tourists- both domestic and foreign-visiting such tourist places have been covered.
Tourist paces, from tourist resources point of view, have been stratified into twelve categories as below.
(A)- NATURAL RESOURCES
1- Wild life places
2- Beaches and Resorts places
3- Hill station places
(B)- MAN MADE RESOURCES
4- Ancient Civilization places
5- Historical Architectural places
6- Museums places
7- Art & Craft places
8- Fair & Festival places
9- Religious places
10- Educational institutions
11- Heritage hotels
12- Gandhiji’s Gujarat www.zenithresearch.org.in www.zenithresearch.org.in
Samples from above 12 categories have been selected using “Stratified Random
Sampling” method.
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Sample size is restricted to 1000. 1000 sample units have been stratified into Domestic respondents numbering 797 and foreign respondents numbering 203. An attempt has been done to select 1000 respondents from all 12 strata of tourist resources. Though, number of respondents may very in some strata, depending upon domestic and foreign tourists of various categories available at particular tourist places, while visiting and conducting interview with tourists. Thus due care has been taken to select tourists as well as tourist places from 12 strata of tourist resources to make the sample representative of the entire universe. i.e. Gujarat. Details of sampling plan have been presented in the below table – 1.
TABLE – 1
SAMPLING PLAN
Selection of samples Tota Sr. l No. No. of sam ple Name of tourist No. of tourist Domestic No. of Foreign resources places respondents respondents size
(A) Natural Resources
1 Wild life 12 77 23 100
Beaches & 2 Resources 4 74 26 100
3 Hill station 1 80 20 100
(B) Man Made Resources
Ancient 4 Civilization 3 32 18 50
Historical 5 Architectural 6 88 12 100
6 Museums 6 43 7 50
7 Art & Craft 4 24 6 30
8 Fair & Festival 9 131 19 150
9 Religious places 11 130 20 150 www.zenithresearch.org.in
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Educational 10 institutions 4 32 18 50
11 Heritage hotels 9 32 18 50
12 Gandhiji’s Gujarat 2 52 18 70
Total respondents 71 797 203 1000
6. PERIOD OF DATA COLLECTION
The research study covers respondents’ opinion collected during the year 2009-10.
7. SOURCES OF DATA COLLECTION
Sources used for data collection in the present research study are:
7.1 Primary data:
7.2 Secondary data:
7.1 PRIMARY DATA
The present research study is mainly based on the primary sources of information collected through fieldwork. The primary data has been collected by visiting tourist places and conducting interviews with tourists- both domestics and foreign, with the help of multiple-choice questionnaire.
7.2 SECONDARY DATA
The secondary data has been collected about TCGL and available tourism service by conducting interviews with concerned authorities of TCGL and tourist places with the help of an open-ended questionnaire. For collection of secondary information, books, magazines, journals, newspaper, official papers, website, unpublished Ph.D. thesis etc
have also been used.
8. TECHNIQUES OF DATA COLLECTION AND ANALYSES & INTERPRETATION OF DATA
The data in the present research study has been collected by using questionnaire and interview technique.
8.1 QUESTIONNAIRE
A multiple-choice questionnaire has been prepared to get comprehensive information about comparative study of tourism resources in Gujarat from tourists- both
domestic and foreign tourists. In the multiple-choice questionnaire, questions have been www.zenithresearch.org.in
asked about profile of tourists and selected variables.
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An open-ended questionnaire has also been designed to get secondary data about TCGL like establishment, mission, vision, financial data, major activities etc.
The researcher visited all tourist places to fill up the multiple-choice questionnaire.
The researcher visited office of TCGL, Gandhinagar to fill up the open-ended questionnaire and to collect relevant information.
8.2 INTERVIEW
To supplement the secondary data and to fill up the gap, the researcher conducted interviews of different officers of TCGL and concerned authorities of tourist places.
By conducting interview with concerned authorities of TCGL and tourist places, the researcher also collected their personal views, which has provided very useful guidance for knowing problems for marketing of tourism in Gujarat and to put forward suggestions to overcome the problems.
8.3 ANALYSES AND INTERPRETATION OF DATA
Keeping in view the objectives of the study, the data collected through the multiple choice and open-ended questionnaire has been classified and tabulated. Data in the tables have been analyzed and interpreted with the help of statistical techniques. The statistical analysis of the collected information is presented in terms of frequency, percentage and average.
The researcher has done bi – variate data analysis and tabulated the data in cross tabulation to study the respondent’s opinion about selected variables. The relationship between selected attributes / variables have been tested using statistical test named “Chi – Square Test” and provided its corresponding p – values. The level of significance is fixed at 5% cut off point. Chi – Square value and corresponding P value have been calculated with the help of computer’s S.P.S.S. (statistical package for social sciences) Program.
Accept-Reject decision for hypothesis:
If p value is less than 0.05, Ho is rejected and H1 is accepted. If p value is more than 0.05,
Ho is accepted and H1 is rejected.
2. DISTRIBUTION OF RESPONDENTS ACCORDING TO TYPE OF TOURIST PLACES VISITED
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TABLE – 2
DISTRIBUTION OF RESPONDENTS ACCORDING TO TYPE OF TOURIST PLACES VISITED
Sr. Type of Tourist Place visit Frequency Percentage No.
1 Ancient Civilization 50 5.0
2 Art & Craft 30 3.0
3 Beaches & Resorts 100 10.0
4 Educational Institution 50 5.0
5 Fair & Festival 150 15.0
6 Gandhiji’s Gujarat 70 7.0
7 Heritage Hotels 50 5.0
8 Hill Station 100 10.0
9 Historical Architectural 100 10.0
10 Museums 50 5.0
11 Religious Places 150 15.0
12 Wild Life 100 10.0
13 Total 1000 100.0
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Source: Questionnaire
FIGURE – 1: DISTRIBUTION OF RESPONDENTS ACCORDING TO TYPE OF TOURIST PLACES VISITED
160 140 120 100 80 60
40 No. of respondents of No. 20 0
Type of tourist place
Table – 2 shows that 15 per cent respondents have visited religious places and fair & festivals, 10 per cent respondents have visited beaches & resorts, hill station, historical architectural and wild life and very few respondents have visited ancient civilization, art & Craft, educational institutions, heritage hotels etc, ranging from 3 per cent to 7 per cent.
3. DISTRIBUTION OF RESPONDENTS ACCORDING TO THEIR NATIONALITY AND TYPE OF TOURIST PLACE
TABLE: 3
DISTRIBUTION OF RESPONDENTS ACCORDING TO THEIR NATIONALITY
AND TYPE OF TOURIST PLACE
Sr. Type of Tourist place Type of respondents Total No. Indian Foreign
1 Ancient Civilization 32(4.0) 18(8.9) 50(5.0)
2 Art & Craft 24(3.0) 6(3.0) 30(3.0)
3 Beaches & Resorts 74(9.3) 26(12.8) 100(10.0)
4 Educational Institution 34(4.3) 16(7.9) 50(5.0) www.zenithresearch.org.in
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5 Fair & Festival 131(16.4) 19(9.4) 150(15.0)
6 Gandhiji’s Gujarat 45(5.6) 25(12.3) 70(7.0)
7 Hill Station 80(11.04) 20(9.85) 100(10.0)
8 Historical Architectural 88(11.0) 12(5.9) 100(10.0)
9 Heritage hotels 39(4.9) 11(5.4) 50(5.0)
10 Museums 43(5.4) 7(3.4) 50(5.0)
11 Religious Places 130(16.3) 20(9.9) 150(15.0)
12 Wild Life 77(9.7) 23(11.3) 100(10.0)
13 Total 797(100.0) 203(100.0) 1000(100.0)
Source: Questionnaire
Note: Figures in to the brackets are percentage to total as 100.
Table – 3 reveals that the proportion of respondents visiting religious places and fair & festival are higher in Indian respondents as compared to foreigners. The proportion of respondents visiting educational institution, Gandhiji’s Gujarat and ancient civilization are higher in foreign respondents as compared to Indian respondents.
FIGURE – 2: DISTRIBUTION OF RESPONDENTS ACCORDING TO THEIR NATIONALITY AND TYPE OF TOURIST PLACE
140 120 100 80 60
40
No. of respondents of No. 20 Indian 0 Foreign
Type of tourist place www.zenithresearch.org.in www.zenithresearch.org.in
(
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4. DISTRIBUTION OF RESPONDENTS ACCORDING TO TYPE OF TOURIST PLACE AND THEIR GENDER
TABLE - 4
DISTRIBUTION OF RESPONDENTS ACCORDING TO TYPE OF TOURIST PLACE AND THEIR GENDER
Sr. Type of Tourist place Gender of respondent Total No. Male Female
1 Ancient Civilization 38(5.5%) 12(3.9%) 50(5.0%)
2 Art & Craft 28(4.0%) 2(0.7%) 30(3.0%)
3 Beaches & Resorts 77(11.06%) 23(7.57%) 100(10.0%)
4 Educational Institution 32(4.6%) 18(5.9%) 50(5.0%)
5 Fair & Festival 102(14.5%) 48(15.8%) 150(15.0%)
6 Gandhiji’s Gujarat 52(7.5%) 18(5.9%) 70(7.0%)
7 Hill Station 70(10.06%) 30(9.87%) 100(10.0%)
8 Historical Architectural 70(10.1%) 30(9.9%) 100(10.0%)
9 Heritage hotels 32(4.6%) 18(5.9%) 50(5.0%)
10 Museums 34(4.9%) 16(5.3%) 50(5.0%)
11 Religious Places 94(13.5%) 56(18.4%) 150(15.0%)
12 Wild Life 67(9.6%) 33(10.9%) 100(10.0%)
13 Total 696(100.0%) 304(100.0%) 1000(100.0%)
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Source: Questionnaire
Note: Figure in to the brackets are percentage to total as 100.
Chi – square value is 17.88 p – value is 0.162.
Ho: There is no significant difference between tourists visiting various types of tourist places and their gender.
H1: There is significant difference between tourists visiting various types of tourist places and their gender.
In the above table – 4, distribution of respondents according to their gender and tourist place has been presented which shows that maximum male respondents 14.5 per cent have visited fair & festival, while maximum female respondents 18.4 have visited religious places. p – value is more than 0.05, So H0 is accepted and H1 is rejected. There is no significant difference between male and female tourists, visiting various types of tourist places.
5. DISTRIBUTION OF RESPONDENTS ACCORDING TO TYPE OF TOURIST PLACE AND THEIR AGE GROUP:
TABLE- 5
DISTRIBUTION OF RESPONDENTS ACCORDING TO TYPE OF TOURIST PLACE AND THEIR AGE GROUP
Type of Age group (in yrs.) of respondents Total Tourist Sr.No. <20 20-40 >40 place
1 Ancient 6(2.8%) 33(5.5%) 11(5.9%) 50(5.0%)
Civilization
2 Art & Craft 9(4.2%) 15(2.5%) 6(3.2%) 30(3.0%)
3 Beaches & 21(9.72%) 63(9.7%) 16(8.65%) 100(10.0%) Resorts
4 Educational 6(2.8%) 33(5.5%) 11(5.9%) 50(5.0%) Institution
5 Fair & Festival 46(21.3%) 81(13.5%) 23(12.4%) 150(15.0%) www.zenithresearch.org.in
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6 Gandhiji’s 15(6.9%) 35(5.8%) 20(10.8%) 70(7.0%) Gujarat
7 Hill Station 10(4.63%) 70(12.4%) 20(10.8%) 100(10.0%)
8 Historical 21(9.7%) 59(9.8%) 20(10.8%) 100(10.0%) Architectural
9 Heritage hotels 13(6.0%) 27(4.5%) 10(5.4%) 50(5.0%)
10 Museums 10(4.6%) 30(5.0%) 10(5.4%) 50(5.0%)
Religious 11 40(18.5%) 95(15.9%) 15(8.1%) 150(15.0%) Places
12 Wild Life 19(8.8%) 58(9.7%) 23(12.4%) 100(10.0%)
13 Total 216(100.0%) 599(100.0%) 185(100.0%) 1000(100.0%)
Source: Questionnaire
Note: Figures in to the brackets are percentage to total as 100.
Chi – square value is 44.82 p – Value is 0.012.
Ho: There is no significant difference between tourists visiting various types of tourist places and their age group.
H1: There is significant difference between tourists visiting various types of tourist places and their age group.
In the table – 5, distribution of respondents according to visited places and their age groups has been presented, which shows that in the age group < 20 years, maximum respondents 21.3 per cent have visited fair and festival, in the age group 20-40 years, maximum respondents 15.9 per cent have visited religious places and in the age group > 40 years, maximum respondents 12.4 per cent have visited fair and festivals and wild life. p – value is less than 0.05, So H0 is rejected and H1 is accepted. There is significant difference between tourists of different age groups, visiting various types of tourist places.
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6. DISTRIBUTION OF RESPONDENTS ACCORDING TO THEIR TYPE OF TOURIST PLACE AND OPINION ABOUT FACILITIES OF TOURIST COMPLEXES
TABLE – 6
DISTRIBUTION OF RESPONDENTS ACCORDING TO THEIR TYPE OF TOURIST PLACE AND OPINION ABOUT FACILITIES OF TOURIST COMPLEXES
Sr. Type of Tourist place Opinion of respondents about Total No. facilities of tourist complexes/ No. of respondents
Effective Ineffective
1 Ancient Civilization 43(86.0%) 7(14.0%) 50(100.0%)
2 Art & Craft 28(93.3%) 2(6.7%) 30(100.0%)
3 Beaches & Resorts 80(80.0%) 20(20.0%) 100(100.0%)
4 Educational Institution 35(70.0%) 15(30.0%) 50(100.0%)
5 Fair & Festival 128(85.2%) 22(14.8%) 150(100.0%)
6 Gandhiji’s Gujarat 58(82.9%) 12(17.1%) 70(100.0%)
7 Hill Station 90(90.0%) 10(10.0%) 100(100.0%)
8 Historical Architectural 95(95.0%) 5(5.0%) 100(100.0%)
9 Heritage hotels 45(90.0%) 5(10.0%) 50(100.0%)
10 Museums 47(94.0%) 3(6.0%) 50(100.0%)
11 Religious Places 131(87.3%) 19(12.7%) 150(100.0%)
12 Wild Life 90(90.0%) 10(10.0%) 100(100.0%)
13 Total 871(87.1%) 129(12.9%) 1000(100.0%)
Source: Questionnaire
Note: Figures in to the brackets are percentage to total as 100.
Chi – square value is 25.29
p – value is 0.021. www.zenithresearch.org.in www.zenithresearch.org.in
Ho: There is no significant difference between respondents’ opinion about facilities of
tourist complexes and type of tourist place.
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H1: There is significant difference between respondents’ opinion about facilities of tourist complexes and type of tourist place.
Above table – 6depicts that as per about 80 per cent to 90 per cent respondents visiting different tourists places, facilities of tourist complexes are effective. p – value is less than 0.05, So H0 is rejected and H1 is accepted. There is significant difference between respondents’ opinion about facilities of tourist complexes and type of tourist place.
7. DISTRIBUTION OF RESPONDENTS ACCORDING TO THEIR TYPE OF TOURIST PLACE AND OPINION ABOUT QUALITY OF FOOD
TABLE – 7
DISTRIBUTION OF RESPONDENTS ACCORDING TO THEIR TYPE OF TOURIST PLACE AND OPINION ABOUT QUALITY OF FOOD
Sr. Type of Tourist place Opinion of respondents about Total No. quality of food / No. of respondents
Effective Ineffective
1 Ancient Civilization 45(90.0%) 5(10.0%) 50(100.0%)
2 Art & Craft 29(96.7%) 1(3.3%) 30(100.0%)
3 Beaches & Resorts 95(95.0%) 5(5.0%) 100(100.0%)
4 Educational Institution 41(82.0%) 9(18.0%) 50(100.0%)
5 Fair & Festival 136(91.3%) 14(8.7%) 150(100.0%)
6 Gandhiji’s Gujarat 61(87.1%) 9(12.9%) 70(100.0%)
7 Hill Station 92(92.0%) 8(7.4%) 100(100.0%)
8 Historical Architectural 93(93.0%) 7(7.0%) 100(100.0%)
9 Heritage hotels 46(92.0%) 4(8.0%) 50(100.0%)
10 Museums 46(92.0%) 4(8.0%) 50(100.0%)
11 Religious Places 132(88.0%) 18(12.0%) 150(100.0%)
12 Wild Life 90(90.0%) 10(10.0%) 100(100.0%)
13 Total 908(90.8%) 92(9.2%) 1000(100.0%)
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Source: Questionnaire
Note: Figures in to the brackets are percentage to total as 100.
Chi – square value is 12.44 p – value is 0.492.
Ho: There is no significant difference between respondent’s opinion about quality of food and type of tourist place.
H1: There is significant difference between respondent’s opinion about quality of food and type of tourist place.
Table – 7 depicts that as per about 90 per cent to 95 per cent respondents visiting different tourists places, quality of food are effective. p – value is more than 0.05, So H0 is accepted and H1 is rejected. There is no significant difference between respondent’s opinion about quality of food and type of tourist place.
8. DISTRIBUTION OF RESPONDENTS ACCORDING TO THEIR TYPE OF TOURIST PLACE AND OPINION ABOUT PRICE CHARGED FOR THE FACILITIES
TABLE -8
DISTRIBUTION OF RESPONDENTS ACCORDING TO THEIR TYPE OF TOURIST PLACE AND OPINION ABOUT PRICE CHARGED FOR THE FACILITIES
Sr. Type of Tourist place Opinion of respondents about price Total No. charged for the facilities / No. of respondents
Effective Ineffective
1 Ancient Civilization 39(78.0%) 11(22.0%) 50(100.0%)
2 Art & Craft 24(80.0%) 6(20.0%) 30(100.0%)
3 Beaches & Resorts 84(84.0%) 16(16.0%) 100(100.0%)
4 Educational Institution 28(56.0%) 22(44.0%) 50(100.0%)
5 Fair & Festival 105(70.5%) 45(29.5%) 150(100.0%)
6 Gandhiji’s Gujarat 44(62.9%) 26(37.1%) 70(100.0%)
7 Hill Station 70(70.0%) 30(30.0%) 100(100.0%) www.zenithresearch.org.in www.zenithresearch.org.in
8 Historical Architectural 74(74.0%) 26(26.0%) 100(100.0%)
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9 Heritage hotels 34(68.0%) 16(32.0%) 50(100.0%)
10 Museums 35(70.0%) 15(30.0%) 50(100.0%)
11 Religious Places 112(74.7%) 38(25.3%) 150(100.0%)
12 Wild Life 73(73.0%) 27(27.0%) 100(100.0%)
13 Total 722(72.2%) 278(27.8%) 1000(100.0%)
Source: Questionnaire
Note: Figures in to the brackets are percentage to total as 100.
Chi – square value is 20.48 p – value is 0.084.
Ho: There is no significant difference between respondent’s opinion about price charged for the facilities and type of tourist place.
H1: There is significant difference between respondent’s opinion about price charged for the facilities and type of tourist place.
Table – 8 depicts that as per about 75 per cent to 80 per cent respondents visiting different tourists places, price charged for the facilities are effective. About 25 per cent to 30 per cent respondents are not satisfied with the price. p – value is more than 0.05, So H0 is accepted and H1 is rejected. There is no significant difference between respondent’s opinion about price charged for the facilities and type of tourist place.
9. DISTRIBUTION OF RESPONDENTS ACCORDING TO THEIR TYPE OF TOURIST PLACE AND OPINION ABOUT TOURISM PROMOTION FACILITIES
TABLE – 9
DISTRIBUTION OF RESPONDENTS ACCORDING TO THEIR TYPE OF TOURIST PLACE AND OPINION ABOUT TOURISM PROMOTION FACILITIES
Sr. Type of Tourist place Opinion of respondents about tourism Total No. promotion facilities / No. of respondents
Effective Ineffective
1 Ancient Civilization 38(76.0%) 12(24.0%) 50(100.0%) www.zenithresearch.org.in www.zenithresearch.org.in
2 Art & Craft 22(73.3%) 8(26.7%) 30(100.0%)
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3 Beaches & Resorts 86(85.7%) 14(14.3%) 100(100.0%)
4 Educational 32(64.0%) 18(36.0%) 50(100.0%) Institution
5 Fair & Festival 123(81.9%) 27(18.1%) 150(100.0%)
6 Gandhiji’s Gujarat 56(80.0%) 14(20.0%) 70(100.0%)
7 Hill Station 80(80.0%) 20(20.0%) 100(100.0%)
8 Historical 90(90.0%) 10(10.0%) 100(100.0%) Architectural
9 Heritage hotels 40(80.0%) 10(20.0%) 50(100.0%)
10 Museums 45(90.0%) 5(10.0%) 50(100.0%)
11 Religious Places 119(79.3%) 31(20.7%) 150(100.0%)
12 Wild Life 84(84.0%) 16(16.0%) 100(100.0%)
13 Total 815(81.5%) 185(18.5%) 1000(100.0%)
Source: Questionnaire
Note: Figures in to the brackets are percentage to total as 100.
Chi – square value is 22.34 p – value is 0.051.
Ho: There is no significant difference between respondent’s opinion about tourism promotion facilities and type of tourist place.
H1: There is significant difference between respondent’s opinion about tourism promotion facilities and type of tourist place.
Table – 9 depicts that as per about 70 per cent to 80 per cent respondents visiting different tourists’ places, tourism promotion facilities are effective. p – value is more than 0.05, So H0 is accepted and H1 is rejected. There is no significant difference between respondent’s opinion about tourism promotion facilities and type of tourist place.
10. ACTIVITIES TO BE INTRODUCED FOR TOURISM PROMOTION
An attempt has been made by the researcher to collect respondents’ suggesting about www.zenithresearch.org.in various activities to be introduced for tourism promotion in the state, details of which are
presented in the table – 10
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TABLE - 10
ACTIVITIES TO BE INTRODUCED FOR TOURISM PROMOTION
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Sr. Activities suggested Type of respondents Total No. for introducing in tourism promotion Indian Foreign
1 Water skiing 181(22.7%) 17(8.4%) 198(19.8%)
2 Ballooning 186(23.3%) 35(17.2%) 221(22.1%)
3 Lighting & sound program 235(29.5%) 63(31.0%) 298(29.8%)
4 Hang gliding 134(16.8%) 61(30.0%) 195(19.5%)
5 Traditional museum 61(7.6%) 27(13.3%) 88(8.8%)
6 Total 797(100.0%) 203(100.0%) 1000(100.0%)
Source: Questionnaire
Note: Figures in to the brackets are percentage to total as 100.
Above table – 10 indicates that as per 181(22.7%) Indian and 17(8.4%) foreign respondents, water skiing should be introduced for tourism promotion. As per 186(23.3%) Indian and 35(17.2%) foreign respondents, ballooning should be introduced, as per 235(29.5%) Indian and 63(31.0%) foreign respondents, lighting & sound program, as per 134(16.8%) Indian and 61(30.0%) foreign respondents Hang gliding, and as per 61(7.6%) Indian and 27(13.3%) foreign respondents, traditional museum should be introduced for tourism promotion.
11. CONCLUSION
The information analyzed in the present research paper provides an insight into the tourist traffic trends in Gujarat state. Gujarat state has emerged as an attracting tourist place and TCGL is progressively looking towards marketing of tourism in Gujarat. This research paper furnishes important information regarding comparative study of tourist resources of Gujarat state according to nationality, gender and age group of selected respondents and respondents’ opinion about facilities of tourist complexes, quality of food, price being charged for services and tourism promotion facilities. The distribution of respondents according to type of tourist place and its cross tabulation are all the important as it indicates the effectiveness of the tourist supplier experienced by the users. Respondents’ opinions about major tourist resources and various tourist facilities indicate that majority of respondents satisfy with the existing tourist resources and tourist facilities. Respondents have also suggested new certain activities to be introduced for tourism promotion.
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REFERENCES
1. Bibliography of doctoral dissertation – 1994&1995, Association of Indian universities, New Delhi, 1999.
2. Ibid.
3. Vishleshan, Surat, volume no. 31, No. 3, July-September – 2006, P. 27.
4. University News, Association of Indian Universities, July 23-39, 2008.
5. Ibid.
6. Ibid.
7. University News, Association of Indian University, May 26- 01 June, 2008.
8. An unpublished Ph.D. thesis.
9. Bhatia B.S. and Bhatia G.S., Modern Marketing Management (an edited book), Deep and Deep publications pvt ltd, Ned Delhi, 2000, P. 149.
10. Ibid.
11. Punia K. Bijendra, Tourism Management : Problems and Prospects, Ashish Publishing House, New Delhi, 1997, P. 13 &14.
12. University News, Association of Indian University, 22-28 September, 2008.
13. University News, Association of Indian University, 8-14 December, 2008.
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A STUDY ON INVESTMENT PATTERN IN MUTUAL FUNDS AND PREFERENCE OF RETAIL INVESTORS IN CHENNAI CITY FOR KARVY CONSULTANTS LIMITED, CHENNAI
DR. S. RADHIKA*; MR. K. SRINIVASAN**
*Principal, Vel Tech Ranga Sunku Arts College, Avadi, Chennai – 600062 Tamil Nadu, India. **M.Phil Research Scholar, Karpagam University, Coimbatore – 641021 Tamil Nadu, India.
ABSTRACT
The Indian capital market has made substantial progress during the post-independence period. However, the amount of capital raised in the form of equity and preference shares and debentures by the corporate sector has not been large over a number of years. There has been a raising trend since 1975 but the increase was not all that large. The Indian capital market has grown so sharply in the 80’s that the decade itself has been christened as a decade of the capital market. More particularly, during the later part of the eighties, the primary and the secondary markets have grown by leaps and bounds. It is evident from the fact that against an annual average amount of just Rs.90 crores raised from the new issues market in the 70’s about Rs.27, 344 crores are being raised during 1992-93. The total capital issues of both the private and public sectors during the years ended 31st March 1991, 1992 and 1993 were Rs.9,683 crores Rs.13,450 crores and Rs.Rs.27,344 crores respectively. The number of public issues has also increased year by year and the total number of public issues of securities for the years ending as on 31st March 1991, 1992 and 1993 aggregate to 335,572 and 1,036 respectively. All these issues were subscribed to by the individual and institutional investors, non-resident Indians, foreign institutional investors and mutual funds, and the public participation was overwhelming and the issues were always oversubscribed a number of times.
KEYWORDS: Capital Market, Investors, Mutual Fund, Savings, Pensions. ______
1.0 INTRODUCTION
The main components of capital market are securities market and financial intermediaries. A formal capital market was present in our country from early 1900’s.But remained very inactive at that time. The inactiveness of capital market has continued even after independence. The growth of capital market has acquired momentum only from mid eighties. Till then debt instruments were more popular and the investors have not shown much interest in direct investment. Besides the Government’s policy towards promotion of capital market was also not much encouraging. Concentration was given to the growth of
agricultural sector. The plan for industry-centered growth had been mainly encouraged www.zenithresearch.org.in only for eighties. During mid eighties the foreign collaboration policy of the Government
has inspired the industries towards the channel of growth and development. It has been
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In tune with the growth in the new issues market during the eighties, the secondary market also expanded fast during this period. The number of stock exchanges has increased from 8 in 1980 to total of 21 in 1993. The membership of the stock exchanges has also increased substantially to around 3,000in 1993 from about 1,200 a decade ago. The listed companies of all stock exchanges stood to above 6,500 in 1993, which were only 2,733 in 1980. The market capitalization has also shown a substantial increase in the eighties. The volume of daily turnover of trade has also increased more than ten-fold over the decade to Rs.250 crores in 1992. On Bombay stock Exchange, the number of dealings per hour put through was as high as 40,000. The paid-up share capital of listed companies in 1980 was Rs.3, 143 crores, while in 1990; the figure was more than Rs.12, 000 crores. The market value of the capital of these limited companies stood at around Rs.3 lack crores in 1992.Besides, the number of joint stock companies at work has increased significantly to 2, 75, 664 with the paid-up capital of Rs.90, 962.2 crores as on 31st March 1993, which was only 56, 493 with the paid-up capital of Rs.14, 607 crores up to 31st March 1980.
Investor population has increased from 2 millions in 1980’s and reached beyond 10,000 and the number of stock exchanges are 21.In addition to these stock exchanges the NSEIL and OTCEI have been set-up for solving the problem arising in out of the structural weaknesses of our market and provide more transparency in deals and a nationwide network of trade.
2.0 COMPANY PROFILE
In 1982, a group of Hyderabad based practicing Chartered Accountants started KARVY CONSULTANTS LIMITED with a capital of Rs.1, 50,000 offering auditing and taxation services initially. Later, if forayed in to the registrar and share transfer activities and subsequently into financial services. All along, Karvy’s strong work ethic and professional background leveraged with information technology enabled it to deliver the quality to the individual.
A decade of commitment, professional integrity and vision helped Karvy achieve a leadership position in its field when it handled the largest number of issues ever handled in the history of the Indian stock market in a year. Thereafter Karvy made inroads in to a host of capital market services,-corporate and retail which proved to be a sound business strategy.
Today, Karvy has access to millions of Indian share holders, besides companies, banks, financial institutions and regulatory agencies. Over the past one and half decades, Karvy has evolved as a veritable link between industry, finance and people. In January 1998, Karvy became the first depository participant in Andhra Pradesh. An ISO 9002 company, Karvy’s commitment to quality and retail reach has made it an integrated financial service company. A SEBI Category 1 Registrar, So far, Karvy has handled over
675 ISSUES as registrars to public issues, processed over 52 million applications and is www.zenithresearch.org.in
servicing over 16 million investors from various locations spread over 205 clients.
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3.0 KARVY GROUP OF COMPANIES
3.1 KARVY CONSULTANTS LIMITED
Transfer agency service for corporate and mutual funds
Registrar for IPO/Book building
Depository participant services
Registered with both NSDL/CDSL
IT enabled services-MT/Call center/data classification
Karvy .com a comprehensive financial advisory site
3.2 KARVY INVESTOR SERVICES LIMITED
Merchant banking and corporate financing
Distribution of fixed income and other financial products
3.3 KARVY SECURITIES LIMITED
Distribution of equity and other financial products
3.4 KARVY STOCK BROKING LIMITED
Secondary market trading
Member – National Stock Exchange(NSE)
Trading through BSE
3.5 MILESTONES
1979- Like – minded team of financial services professionals
1982- Technology to change service delivery process
1985- Entry as registrars
1990- Entry in to retail stock broking
1992- Set up investor service centers
1993- Financial product distribution
1994- Entry in to mutual fund services
1995- Corporate finance and investment banking www.zenithresearch.org.in
1996- Investment by jar dine Fleming
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1997- Electronic study
1999- Global IT services (Medical Transcription, etc ;)
2000-E-Biz: Web initiatives
2002- Call centers.
3.6 KARVY NETWORK
Branches
65 ISC’S
14 Karvy investor points
5500 Sub-Broker/agent Network
4.0 OBJECTIVES OF THE STUDY
4.1 To find out :
The preference of investor towards various investment avenues.
The most popular investment avenues recalled.
The purpose of investment and frequency of investment.
The investors risk profile.
The approximate percentage of Investing and approximate percentage of savings in mutual funds.
The objective of investment and preference of advice while investing.
The public awareness on mutual funds.
The preference towards the mutual fund sector.
The mostly preferred mutual fund schemes.
The factors considered while making a mutual fund investment.
To find out the satisfaction level of services provided by mutual funds agents.
4.2 To probe the influence of demographic factors such as Income, Age, Gender, Education, Occupation on Investment Avenues.
5.0 SCOPE OF THE STUDY www.zenithresearch.org.in www.zenithresearch.org.in
The scope of the study is to analyze and interpret the investment pattern and
preference of various Investment avenues, and finding the relationship between the
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Analyze and interpret the factors affecting the choice of Mutual Fund, and investor preference towards the various Mutual Fund schemes and preference of Mutual Fund Sector.
The Scope of the study involves collecting the data from the investors regarding the:
1. Current Investment Avenue
2. Risk Profile of investors
3. Objective of Investment
4. Purpose of Investment
5. Objective of Investment and
6. Preference of Advice of Investors.
6.0 RESEARCH METHODOLOGY
1 Research Design Descriptive Research
The Population of the project consists of the entire 2 Population population of Chennai city excluding the student community.
3 Sample Technique Cluster Simple Random Sampling
4 Sample Size 240
Salaried, Business Man, Professional, Retired and 5 Sampling Unit
Others like House wife’s etc…
6 Data Collection Primary and Secondary Data Collection
7 Data Collection Tools Questionnaire
TOOLS USED
Simple Percentage Analysis
Chi-Square Test www.zenithresearch.org.in
Ranking Method
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7.0 ANALYSIS & FINDINGS
TABLE 2. ANALYSIS BASED ON PERSONAL PROFILE AND FINANCIAL PROFILE
Financial PERSONAL PROFILE FINANCIAL PROFILE
Profile GEN AGE EDU AI APP. FREQ RISK MF SEC SCH
ASS - - - ASS - ASS - - - - Purpose of Investment NAS ------
ASS ------ASS ASS - - Frequency of Investment NAS - NAS NAS NAS ------
ASS - - - ASS - - - - ASS ASS Risk Profile NAS NAS NAS NAS ------
App. ASS - - - ASS - ASS - - - - Percentage of Investing NAS ------
App. ASS - - - ASS ------Percentage of Savings MF NAS - - - - NAS - - - - -
ASS ASS ASS ASS ASS ------Objectives of Investment NAS ------
ASS ------Preference of Advice NAS - - - NAS ------
ASS ------
Investors of NAS - NAS ------MF
ASS ------Preference of MF Sector NAS - NAS ------
Preference of ASS - ASS ------MF Scheme
NAS ------www.zenithresearch.org.in
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Note: * ASS: ASSOCIATION GEN : GENDER
* NAS: NOT ASSOCIATION EDU : EDUCATIONAL QUALIFICATION
AI : ANNUAL INCOME
FREQ : FREQUENCY OF INVESTMENT
MF : INVESTORS OF MUTUAL FUND
SEC : PREFERENCE OF MUTUAL FUND SECTOR
SCH : PREFERECNE OF MUTUAL FUND SCHEME
APP : APP. PERCENTAGE OF INVESTING
7.1 STATISTICAL EVIDENCE (CHI-SQUARE TEST) HAS REVEALED THE FOLLOWING FINDINGS
ANALYSIS BASED ON PERSONAL PROFILE AND FINANCIAL PROFILE
Gender, age and education have a significant relationship with the objective of the investment.
The frequency of investment in mutual fund has a significant relationship with risk profile & investors in mutual funds.
The risk profile of the respondents has a significant association with preference for mutual fund sector and mutual fund schemes.
There is a significant association between age and preference for mutual fund scheme.
There is a significant relationship between annual income and purpose of investment, risk profile and approximate percentage of investing.
ANALYSIS BASED ON CURRENT INVESTMENT AVENUES AND PERSONAL & FINANCIAL PROFILE
THERE IS A SIGNIFICANT ASSOCIATION BETWEEN THE FOLLOWING
Investment in shares and education, annual income, objectives of investment ,purpose of investment, frequency of investment, preference for advice and approximate percentage of investing.
Investment in mutual fund and age, education, annual income , objectives of investment, purpose of investment, frequency of investment, preference for advice
and approximate percentage of investing. www.zenithresearch.org.in www.zenithresearch.org.in
Investment in gold and frequency of investment, preference of advice.
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Investment in bond and annual income, purpose of investment.
Investment in fixed deposit and age, employment, objective of investment and preference for advice.
Investment in insurance and age, education, employment, objective of investment and preference of advice.
Investment in post office schemes and age & education.
Investment in public provident fund and age.
To Sum up all
Investment in mutual funds, shares, fixed deposit & insurance are dependent on large number of factors.
ANALYSIS BASED ON CURRENT INVESTMENT AVENUES AND
TABLE 2. PERSONAL & FINANCIAL PROFILE
CURRENT INVESTMENT AVENUES P & F PROF SH GOL BON R.ES POF MF FD INS PPF R D D T F
NA NA - NAS NAS - - NAS - - S S AGE ASS - ASS - - ASS ASS - ASS ASS
NA NA NA - - NAS NAS - - - S S S EDU ASS ASS ASS - - - ASS ASS ASS -
NA NA NA NA NAS NAS - - NAS NAS S S S S EMP ASS - - - - ASS ASS - - -
NA NA NA NA - - NAS - - NAS S S S S AI ASS ASS ASS - ASS - - ASS - -
NA NA NA - - NAS NAS - NAS NAS S S S OBJ
ASS ASS ASS - - ASS - - - - www.zenithresearch.org.in
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NA NA NA - - NAS - - NAS NAS S S S PUR ASS ASS ASS - ASS - ASS - - -
NA NA NA NA - - - NAS NAS NAS S S S S FREQ ASS ASS ASS ASS ------
NA NA NA - - - NAS - NAS NAS S S S ADV ASS ASS ASS ASS - ASS - - - -
NA NA NA NA - - NAS NAS - NAS S S S S APP. ASS ASS ASS - - - - ASS - -
Note: * ASS: ASSOCIATION * NSS: NOT ASSOCIATION
*P & F: PERSONAL & FINANCIAL PROFILE.
EDU : EDUCATION SHR : SHARES
EMP : EMPLOYMENT MF : MUTUAL FUNDS
AI : ANNUAL INCOME FD : FIXED DEPOSIT
OBJ : OBJECTIVE INS : INSURANCE
PUR : PURPOSE OF INVESTMENT R.EST : REAL ESTATE
FRE : FREQUENCY OF INVESTMENT POFF : POST OFFICE
ADV : PREFERENCE OF ADVICE
APP. : APPROXIMATE PERCENTAGE OF INVESTING
7.2 GENERAL FINDINGS
The main reason why people invest were future plans (32.5%) and wealth creation (26%)
Most of the respondents claimed that they invested on a monthly basis (62%), 29% www.zenithresearch.org.in of the respondents invest 20-30% of their income and 24% of the respondents
invest 10-20% of their income.
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The main objectives claimed by the respondents for investing are tax –benefits (22%) and safety (23%).
Most of the respondents (42%) preferred taking a moderate risk. 45% preferred to get advice from family members and friends, 26% from auditors & consultants.
Around 87% were aware of mutual funds and 65% among them have invested in mutual funds.
75% of them those who invested in mutual funds invest 5-10% of their savings.
37% prefer private mutual funds, 32% public mutual funds and 32% prefer both public & private sector mutual funds.
57% of those who have invested in mutual funds have opted for equity scheme.
When asked to rank the factors in the choice of mutual funds the rank obtained were as follows:
Better annual dividends -1, Capital Appreciation -2,
High return compared to other investment -3
Better portfolio management -4, previous year performance -5.
More than 90% of the respondents were satisfied with the all kinds of service provided by mutual fund agents.
8.0 SUGGESTIONS AND RECOMMENDATIONS
Since safety is the factor, which influence the investors mostly by while making a Particular investment decision, Karvy Consultants Ltd shall project this aspect and shift towards financial products which offer maximum safety.
Company shall make the investors aware about all the latest Investment opportunities available, which are less risky.
Investor those who invested in post office, fixed Deposit and insurance most of them have not invested in shares, mutual funds and bonds and other investment avenues, the main reason is that investors are not much aware about the latest investment avenues. So Company shall make the investors aware about all investment avenues.
The main factors affecting the choice of investment were found to be better annual returns, where as mutual funds are more risk averse and diversified these 2 attributes can project during initial public offering on mutual funds.
Through the existing database, based on the income level, new financial products
and schemes could be targeted at a particular income category which the company www.zenithresearch.org.in
seems suitable.
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9.0 CONCLUSION
The various factors identified in the study provide some valuable input regarding the investor’s pattern, their preference and Priorities this will guide the organization in designing financial products for the various segments of investors.
The buying intent of mutual fund product by a small investor can be due to multiple reasons depending upon the risk return trade off. Due to the reduction in the bank interest rates and high degree of volatility in Indian Stock market, investors are looking at an alternative for their investments, which will provide them higher, returns and also safety to their investments.
REFERENCES
1. Hendricks, Darryll, Jayendu Patel, and Richard Zeckhauser, 1993, Hot Hands in Mutual Funds: Short Run Persistence of Relative Performance, 1974–1988, Journal of Finance, 48(1), 93–130.
2. Henriksson, Roy D., 1984, Market Timing and Mutual Fund Performance: An Empirical Investigation, Journal of Business, 57(1), 73–96.
3. Henriksson, Roy D., and Robert C. Merton, 1981, On Market Timing and Investment Performance. II. Statistical Procedures for Testing Forecasting Skills, Journal of Business, 54(4), 513–534.
4. Ippolito, Richard A., 1989, Efficiency with Costly Information: A Study of Mutual Fund Performance, Quarterly Journal of Economics, 104, 1–23.
5. Lehmann, Bruce N., and David M. Modest, 1987, Mutual Fund Performance Evaluation: A Comparison of Benchmarks and Benchmark Comparisons, Journal of Finance, 42(2), 233–265.
6. Malkiel, Burton G., 1995, Returns from Investing in Equity Mutual Funds 1971 to 1991, Journal of Finance, 50(2), 549–572.
7. Roll, Richard R., 1978, Ambiguity When Performance is measured by the
Securities Market Line, Journal of Finance, 33, 1051–1069.
8. Shukla, Ravi K., and Charles A. Trzcinka, 1992, Performance Measurement of Managed Portfolios, Financial Markets, Institutions & Instruments, 1(4), 1–58.
9. Sharpe, William F., 1966, Mutual Fund Performance, Journal of Business, 39, 119– 138.
10. Treynor, Jack L., 1965, How to Rate Management of Investment Funds, Harvard Business Review, 43, 63–75.
11. www.mutualfundsindia.com www.zenithresearch.org.in www.zenithresearch.org.in
12. www.investmentz.com
13. www.amfiindia.com
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WORKING WOMEN ATTITUDE ON BUYING OF MICROWAVE OVEN – AN EMPIRICAL STUDY
M. NASRIN SULTHANA*
*Assistant Professor, Department of MBA, St. Joseph’s College of Engineering, Chennai – 119. *Doctorial Student, Jawaharlal Nehru Technological University Hyderabad, Kukatpally, Hyderabad.
ABSTRACT
Working women with Microwave Oven in their home is the access to life changing services. Women in the developing world will achieve a greater sense of security, independence, economic opportunity and connection with the world outside their home which made them to search over and creates a tough competition to the manufacturers to add on the difference to prove them. The primary objective of this study is to find the women attitude on buying behavior of Microwave Oven. Hence the researcher attempts to explore buying behavior of working women taking into cognizance impact of demographic factors like age, marital status, occupation and monthly income. The research design chosen is descriptive and empirical. Convenience sampling method has been employed. The study is based on the sample size of 100 respondents. One-sample statistics and principle component analysis is applied. The researcher has prioritized the women preference towards choosing their Microwave Oven and the reasons for changing their Microwave Oven by analyzing the data acquired through the questionnaire. Today’s world is around searching the innovation in their daily life of marching change which influenced the researcher to find the topic more relevant in the present world.
INTRODUCTION
Women in India have come a long way from just a skilled homemaker who has today acquired skills and capabilities of not just being a homemaker but being at par with their male counterparts. This is the new generation of women, who wants to pursue their dream career. Microwave Oven can be life-changing lines to independence and self-sufficiency, which help to complete their cooking very fastly and get time to do work activities such as connecting them to banking services to free them from the dangers of carrying cash, sending instructions in prenatal care and agriculture. It's a connection that is drawing increased attention from carriers, an initiative that will bring female customers in the developing world to the same level as men. This in turn will lead to greater empowerment and control over their lives and those of their families.
OBJECTIVES
1. To study the working women preference towards Microwave Oven
2. To analyze the reason for purchase decision. www.zenithresearch.org.in www.zenithresearch.org.in
3. To know the reasons for changing their Microwave Oven.
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4. To know the level of agreement for product evaluation among working women
REVIEW OF LITERATURE
Guijun Zhuang, et al. (2008) have proposed and tested a model of the asymmetric effects of BOC (Brand Origin Confusion) on consumer preference and the purchase of local versus foreign brands in China. The study intends to help to explain from a new angle the decreasing competitiveness of foreign brands in emerging markets, such as China. The pretest on nationally distributed brands across seven product categories has resulted in a final set of 67 brands: 35 foreign and 32 local. Four hundred respondents have evaluated measures related to brand origin, brand awareness, brand value, brand preference, and brand purchases in the previous six months. Hierarchical regression analysis is used in their data analysis. Specifically, the results show that local brands are likely to be in an advantageous position when there is a high level of BOC. However, as the brand knowledge of consumers increases, the effects of BOC decrease.
Maran, Madhavi and Thilagavathi (2004) identified the customers’ perception on their article. The important objective of the study is to find out the most influencing factor in the selection of the telephone service provider and to measure the customer perception about the tariff plan. Different statistical tools used in this study are Kruskal Wallis test, chi-square test, Factor analysis one-way ANOVA which has a sample size of 550 collected from Chennai Metro. The authors concluded that attractive plans, better service, timeliness of connection and special offers influence the selection of telephone service provider. They say that these are the major factors which influence brand preference, even though there are other factors like availability, influenced by friends and relatives form a little impact.
Kaushik Mukerjee (2006) study focused on product management and consumer preference in his study. The study cites the examples of Reliance Infocomm which initially failed in 2002 to meet the consumer’s expectations and when it was relaunched as Reliance India Mobile, it was a huge success. RIM became a huge hit because of new features like Internet access, Multimedia Messaging and Three-way Conferencing.
Subhadip Roy (2006) was an exploratory study on consumer choice. The objectives of the study are to identify the consumer choice patterns regarding the four attributes of a motorbike namely fuel efficiency, colour, type of brakes and pick-up. A field survey was conducted on 88 respondents in and around Hyderabad and Conjoint analysis was used to find out the different aspects of consumer’s choice. The study concluded that fuel efficiency is the most important attribute of consumer service. The study further adds that there exists significant difference in preference patterns of the students and the non- students. Any company which wants to target a particular segment should change its marketing plan to suit the needs of its target group.
RESEARCH METHODOLOGY
The study is based on both primary and secondary data. The primary data is collected through a structured questionnaire circulated among 100 working women in
public and private sectors as well as educational institutions. The research questionnaire www.zenithresearch.org.in www.zenithresearch.org.in
comprises four parts namely demographic profile, reasons for changing the Microwave Oven, preference, purchase decision and post purchase behavioral aspects. Both optional
type and likerts five point scale are applied subsequently to obtain the responses.
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The likerts five point scales ranges from strongly agree to strongly disagree. The convenient sampling method is applied to elicit the responses from the working women.
ANALYSIS AND INTERPRETATION
The working women posses various attitude, preference, purchase decision and post purchase behavioral aspects. The present study focuses on the specific reasons for changing the Microwave Oven and to ascertain the brand switching attitude. At the inception point the parametric t test is applied to ascertain the exact reasons for the Microwave Oven.
TABLE – 1
ONE-SAMPLE STATISTICS
Std. t Sig. Std. Error (2- VARIABLES N Mean Deviation Mean tailed)
Style 100 3.8300 1.23954 .12395 6.696 .000
Technology 100 4.0500 .97830 .09783 10.733 .000
Status Improved 100 3.1000 1.26730 .12673 .789 .432
Better Offer 100 3.2300 1.24604 .12460 1.846 .068
Seasonal Offer 100 2.7600 1.22367 .12237 -1.961 .053
Hobby 100 2.3000 1.12367 .11237 -6.230 .000
Old one is Defective 100 3.6600 1.24089 .12409 5.319 .000
Less time consuming 100 3.3500 1.35121 .13512 2.590 .011
Old one is Lost 100 3.3500 1.43812 .14381 2.434 .017
Influence of family and friends 100 3.0500 1.26631 .12663 .395 .694 www.zenithresearch.org.in
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Advertisement 100 2.8500 1.32097 .13210 -1.136 .259
Microwave Oven gift 100 2.8800 1.43041 .14304 -.839 .404
Sentimental Reason 100 2.2800 1.26395 .12640 -5.696 .000
Source: Primary Data
From the above table it is found that the mean values range from 2.28 to 4.05 with standard deviations more than one. The t values are statistically significant at 5% level except for the variables seasonal offer, better offer, advertisement, influence of family and friends. This implies that the working women strongly agree the fact that the updated technology is the first and foremost reason to change their Microwave Oven. It is followed by style of the handset and better offer. It is also found that the up gradation of the status improvement still has an undecided opinion among the working women. At the same time they disagree with the hobby and sentimental reasons.
It is followed by application of factor analysis by principle component method for the consumer preference towards Microwave Oven.
TABLE -2
TOTAL VARIANCE EXPLAINED
Extraction Method: Principal Component Analysis
Rotation Sums of Squared Loadings
Total % of Variance Cumulative %
3.788 17.218 17.218
3.274 14.882 32.100
2.993 13.602 45.703
2.098 9.537 55.240
2.096 9.526 64.765
1.389 6.311 71.077
Source: Primary Data. www.zenithresearch.org.in www.zenithresearch.org.in
The factor analysis is applied on the 20 variables of consumer preference to derive
the predominant factors. The 20 variables of preference are converted into six predominant
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The 1st factor comprises of five variables such as rotation (.813), heat (.758), grill (.673), timer (.629) , Conventional mode (.546). These variables create a predominant factor called supplementary appearance.
The 2nd factor consists of two variables such as touch screen Pad (.774), Picture option (.769). Therefore this factor is known as technological augmentation.
The 3rd factor is a composition of five variables such as battery backup (.741), features (.728), technology (.703), clarity (.540) and after sales service (.532). Therefore this factor can be named as prudential aspects.
The 4th factor is the composition of three variables such as Circuits (.769), Connectivity (.761), heat generation (.534).Hence this factor is deduced and known as internal features.
The 5th factor comprises only two variables such as style (.767) and model (.727) and can be called as model fit.
The 6th factor is unique in approach and comprises a unique variable, user friendly ( .858).
Therefore this factor is known as operative feasibility.
CONCLUSION
The application of parametric t test and factor analysis derived the exact mindset and preference of working women towards Microwave Oven. It is concluded that working women predominantly look at updated technology followed by inducing appearance of models and operative feasibility helps them to work faster without must time. They give least importance to sentimental feelings and purchasing the Microwave Oven as the hobby. It also helps to cook food with less oil. This keeps the people more health and fit.
BIBLIOGRAPHY
1. Guijun Zhuang, et al. (2008)“Asymmetric effects of brand origin confusion: Evidence from the emerging market of China”, International Marketing Review, Volume: 25 Issue: 4, pp. 441–457.
2. Melchinger(2002) Use Temperament to Boost Understanding and Sales, Marketing Mastermind, Vol. II, No.6, June 2002. pp. 45-46
3. Rajeswari and Ayisha Millath(2003) Brand Preference towards water purifier: A study, Indian Journal of Marketing. Vol.XXXIII, No.9, September 2003, pp. 21-23.
4. Maran, Madhavi and Thilagavathi(2004) Customer’s perception on Telephone - A www.zenithresearch.org.in
study with special reference to Chennai City, The ICFAI Journal of Marketing
Management, Vol. III, No.1, February 2004, pp. 11-17.
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5. Shivakumar (2004) Buying Behaviour of consumers towards the products produced by SSI Units, Indian Journal of Marketing, Vol. XXXIV, No.3, March 2004, pp. 19-23.
6. Ravichandran and Narayanarajan(2004) Factors determining the brand preference of TV- with special reference to Thoothukudi District in Tamilnadu, Indian Journal of Marketing, Vol. XXXIV, No.4, April 2004, pp. 16-20.
7. Kaushik Mukerjee(2006) Product Life Cycle Management, Marketing Mastermind, Vol.VI Issue 1, January 2006, pp. 15-20.
8. Subhadip Roy(2006) Consumer choice of Motorbike Attributes: An Application of Conjoint Analysis, The ICFAI Journal of Marketing Management, Vol. V, No.1,
February 2006, pp. 48-56.
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THE IMPLEMENTATION OF KNOWLEDGE MANAGEMENT SYSTEM IN B-SCHOOLS
DR ALPANA TREHAN*; POOJA .S.KUSHWAHA**
*Associate Professor, Institute of Management Studies, Devi Ahilya University,Indore, India. **Faculty, IT Jaipuria Institute of Management, Indore.
ABSTRACT
As the world moves towards a “knowledge based economy”, knowledge is increasingly being considered as the main driver of this economy. Knowledge sharing is most important component of universities as all the employees are dealing with some way or other with the information. In an educational set up, effective knowledge management ensures that academics are able to realize and develop their potential to the fullest. Educational institutions play a key role in knowledge creation. The tacit knowledge that academic staff creates or gains is embedded in their minds and constitutes the storehouse of an educational institution’s intellectual capital but how this store house leads to institutional development. The paper is a attempt to explain KM framework which can be used in different B-schools in order to utilize full capabilities of KM. There has number of changes in all respect like teaching, learning and understanding in management education in India. The new breed of management professionals need to be more aware about latest developments in business and also efficiently tackle multidisciplinary problems, in order to face global competition. This paper studies the knowledge management tool and features that can be implemented in B-schools and also discussed some problems that can resist knowledge management practices in B-schools
KEYWORDS: Knowledge based economy, Knowledge sharing, tacit knowledge. ______
INTRODUCTION
Knowledge is seen as an important input for most of the organizations since it allows the development and also exploits the use of knowledge effectively to face the competition. Knowledge management can lead to overall development of any organization as information is the key ingredient of any organization.
Prominent B-schools and a significant number of small management colleges are being set up. As more and more students are shifting towards management education in most of the good B-schools one subject is taken by number of faculties as there are number of sections. Faculties are from different academic backgrounds and experiences. We insist that more experienced faculties must share there knowledge and experience with new faculties in order to enhance there teaching. Knowledge sharing is the key ingredient for overall development of a faculty. Basically Management is an interdisciplinary approach
domains have intermixed knowledge. In this way we can share knowledge of one faculty www.zenithresearch.org.in domain area with another faculty domain area we have new concept of team teaching in
different management schools
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There are number of organizations which are using KM in there working like customer relationship management firms, retail firms etc. Now academic institutions in particularly business schools have taken initiative to implement KM approaches. From the academic earning point of view Knowledge Management (KM) by its nature especially is suitable. Business schools (B-schools) use information technology based tools for admissions, registrations, time table processing and performance evaluations of their faculty, students, staff and administrations.
This paper gives a brief framework for the adoption of KM in B-schools. This paper will focus how KM can improve efficient and effectiveness in business schools and also motivate knowledge sharing among different faculties.
REVIEW OF LITERATURE
There are several studies conducted on KM principles and strategies towards organizational learning (Ron Sanchez 2005/3 Knowledge Management and Organizational Learning: Fundamental Concepts for Theory and Practice). High quality research work is done on knowledge management in higher education (Yaying Mary Chou Yeh, Journal of College Teaching & Learning – September 2005 Volume 2, Number 9). But few studies are devoted to institutional learning using KM practices (Christine van Winkelen and Jane McKenzie Electronic Journal of Knowledge Management Volume 5 Issue 4 2007, 527 - 538).We can enhance the performance of any educational institute. According to (Mohd Ghazali Mohayidin, Nor Azirawani, Man Norfaryanti Kamaruddin and Mar Idawati Margono, 2007).
Now days B-schools are like are not only education stations they are just like any other business organization and facing same level of competition. In order to cope up with the competition among other B-schools they have to invest in different types of information technologies because that can be a distinguishing factor. The problem is with the faculties who are pillars of and educational institutes they are very much rigid in order to share there knowledge among there peers as well as with the students.
BACKGROUND
Management institutions in India are always eager to develop in order to give quality education and come out with best research work from their faculties. B-schools generate variety of information regarding student’s profile, course details, faculty and staff that includes human resource details, lectures details, research database and so on. This type of useful information acts as a strategic weapon in order to survive competition.
Research shows that many information technology implementations in educational institutions fail not because of technology complexity or money but because of insufficient user interaction at the time of implementation and various types of hindrances to use. The institutes have been making huge investments in information technologies in order to develop. All institutes are using the information for their students for evaluating students’ performance, in placements. Unfortunately the management institutions are giving less importance to institutional structure, and culture. However the rapid growth of new
information technologies with knowledge management systems helps in, assessing the www.zenithresearch.org.in www.zenithresearch.org.in
quality of lecture delivery, assessing the programs and courses, measuring the performance
of students and faculties and also help to store and share research and developments of
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KNOWLEDGE MANAGEMENT
Knowledge Management deals with creation, storage and retrieval of knowledge. This comprises of activities associated with the entry of new knowledge into the system, and includes knowledge development, discovery and capture (Newman and Conrad, 1999). Individuals obtain knowledge by grafting on new sources including other individuals or other organizations (Huber, 1991). Knowledge acquisition, the second variable, is the process of acquiring and capturing information about knowledge. There are some difficulties involved regarding knowledge acquisition as most of the knowledge resides in the heads of experts and this implicit knowledge is not easily documented into its explicit form. These experts usually have vast amounts of knowledge useful to the institute as a whole. Knowledge storage, the third variable in the knowledge practice domain, includes all activities that preserve knowledge and allow it to remain in the system once acquired. Also, it includes those activities that maintain the viability of knowledge within the system (Newman and Conrad, 1999). The fourth variable in the knowledge practice dimension is knowledge dissemination. It refers to activities associated with the flow of knowledge from one party to another (Newman and Conrad, 1999).
APPROACHES OF KM IN B-SCHOOLS
The KM approach is basically integration of all human resources, all the academic processes and the technological advancements involved in designing, capturing and implementing the intellectual capital of any management institution. The approach deals with sharing and managing the academic knowledge in an academic environment. We have to give more emphasis on KM at the institutional level, rather in individual level. Technology tools alone can not relate all the organizational information. There are number of barriers like data access, data integrity and technological incompatibility which make knowledge sharing difficult.
REASONS FOR APPLYING KM PRINCIPLES IN BUSINESS SCHOOL EDUCATION
The main reasons for KM in Management Education are:
All B-Schools uses modern IT infrastructure.
Sharing knowledge among faculty, students, course, programs, placements and administration staff is there in all B-Schools.
The academic environment promotes knowledge publishing.
Any B-School is focusing on B-school ratings.
There is an urgent requirement for latest infrastructure solid strategies
to cope with completion. www.zenithresearch.org.in www.zenithresearch.org.in
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FRAMEWORK
It is necessary to capture, store and analyze knowledge. More stress is on the importance of organizational knowledge rather than individual knowledge. Interaction, transfer and sharing of knowledge are very much critical to success of any B-School. Students acquire knowledge through their interactions with faculty, in the lecture and outside also. Faculty share knowledge with students while evaluating their assignments and also share knowledge with their faculty colleagues during research work or in seminars. The institution administration shares the knowledge with external entities like accreditation bodies, other institutions etc. There should be more cohesive processing in all the entities. Expected framework for B-School is explained in the figure 1.
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FIGURE-1 EXPECTED FRAMEWORK FOR B-SCHOOL
Faculty: Admission: Placements: Personal Admission List of Companies Information Rules Criteria Employment Fees Student List Details Alumni Track Intellectual Capital Structure Course Evaluation GD and
Interview criteria Student: Role Knowledge Repository of B-School Demographic Data All academic inter/intra Performance departmental Grades reports
Research, Training and Development:
FDP’s MDP’s Conferences
and Seminars
Administration: Resources
Institutional resource facilities Evaluation, Assessment and like Lab, Library, Performance: Mess etc • Pass out Students records • Student feedback of faculty • Faculty appraisal records • Faculty assessments • Curriculum review and assessment
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Alumni: Institute Management:
• Alumina Records • Future plans • Major Contributors • Yearly Budget • Activities • Tie-ups plans 256 • B-School rating scheme EXCEL International Journal of Multidisciplinary Management Studies Vol.2 Issue 2, February 2012, ISSN 2249 8834 Online available at http://zenithresearch.org.in/
SOME KNOWLEDGE MANAGEMENT INITIATIVE FOR B-SCHOOLS
According to the above framework, In order to strive competition B-School has to introduce web based knowledge application that can share information regarding courses, programs, research, all academic related information between faculty, students and administrative staff. These initiatives are we call as OLRM (On Line Resource Manager).
FEATURES AND BENEFITS OF OLRM
We expect OLRM integrates academic, fee, hostel and administration modules. It provides a means for faculty, students, academic staff, accounts managers and management to access and share information within the institute and also help faculties to share online resources in order to enhance learning and teaching.
Students query for internal marks for individual subject in individual semester.
Students submit are able to submit faculty feedback, can able to select elective subjects in different semesters.
Students can submit components online to their faculty directly or in the absence of faculty they can submit marks to class coordinator.
Students verify attendance records for any subject or program.
Students access timetables term to term.
Student handbook, time table, course handouts and evaluation handouts are available through this interface in the intranet server.
Faculties can allot different topics for any kind of management projects.
Faculties assign marks and award grades to the students.
Faculty build questions bank to design and conduct on line quizzes.
Quiz is evaluated automatically and marks are submitted.
The facility of messengers and group mailing system is available between staff, students and faculty can be used for lectures reschedule or cancellation of any lecture.
Faculties check the feedback for their respective courses.
Students and faculty can retrieve complete reports of different subjects on the basis of term marks, program marks year wise, course wise.
Faculty teaching guidelines, course outlines, lecture notes and lecture
materials are available in the application. www.zenithresearch.org.in
The invigilation guidelines for examinations are available.
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Only students, faculty, academic staff, accounts managers and institute management can use this application.
Online counseling can be possible for new admissions.
Students pay mess, hostel fees, term fees and tuition fees to accounts - managers.. The OLRM is maintained by academic coordinator.
OBSERVATIONS AND DISCUSSION
In the introduction of paper, we are using facts in order to select B-schools for KM implementation. The claim, that every management institutes have modern IT infrastructure. The use of laptops by B-school students for assignment and for seeking knowledge, online registration for new semester, employee HRIS (Human resource Information System) gives all the information to employee regarding salary slips , leaves and other benefits. The paper explains that a good IT infrastructure is the most important ingredient for the growth of any B-schools. Generally it is assumed that transfer of knowledge would remove competitive advantage’ of faculty member. Compare this situation with other types of business organizations where experts are encouraged and motivated to contribute their expert knowledge to the organizational memory in order to make knowledge accessible for all. Now people are diverting from “my knowledge” opinion to “our knowledge” opinion. The successful KM in business school education is only possible by sharing of all forms of knowledge, both explicit and tacit. Explicit knowledge comes in a wide range of media such as computer files, emails, video clips, CD-ROMs, digital libraries and textbooks. It can be the individual’s research work, recorded and stored within any type of media so that it can be accessed and used when needed. This type of knowledge is very common but is still important in learning. However, tacit knowledge is equally valuable. Tacit knowledge is personal or inner knowledge deeply rooted in an individual’s experiences, values and cultures, and it is difficult to capture, store, and share such type of knowledge with other people.
LIMITATIONS
OLRM means there are less social opportunities for people to engage in face-to-face meeting; it may also involve social, cultural and language differences. B schools in India have diversified structure some are affiliated by some governing bodies like AICTE or UGC and some are autonomous in nature. Some schools are primary government owned and private trust owned. Government owned B-schools have to follow all rules and regulations in syllabus, faculty recruitments and fees structure but at the same time autonomous schools have there own rules and regulations the are not controlled by any such governing bodies. This heterogeneity seriously affects the usability of KM tools in management education.
CONCLUSION
For developing competitive environment business schools must use their resources both people and technology more effectively. This approach of KM is helpful for business
schools in order to achieve desired goals like good placements, better students more www.zenithresearch.org.in www.zenithresearch.org.in
satisfied staff and faculties. To full these above goals as quickly as possible B-schools
must rely on Information Technology for overall sharing of data and managing knowledge.
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This paper focuses on how knowledge resources are shared by different working pillars of a business school. In the end we would like to summarize that the real success of KM in B- schools is helpful to students in order to grow in all the aspects of life. Every new development at any place requires time, money, energy and resources so that with business schools. Let us hope that in the coming years KM would make wonders in all educational institutions around the world.
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Applying Corporate Knowledge Management Practices Applying Corporate in Higher Education Source: Copyright 2000, PricewaterhouseCoopers LLP Number 4 2000 EDUCAUSE QUARTERLY.
Alex Bennet and David Bennet. The Partnership between Organizational Learning and Knowledge Management IBIMA Volume 6, 2008.
Application of Knowledge Management in Management education: A Conceptual Framework (2007) Journal of Theoretical and Applied Information Technology.
Arumugam Rathinavelu, Dr.Mahalingam Design of Knowledge Management System for higher education
Alamelu (2005) Knowledge Management 3rd Convention Planner -2005, Assam Univ., Silchar, 10-11 Nov.
Basu B and Sengupta K(2007) “Assessing Success Factors of Knowledge Management Initiatives of Academic Institutions – a Case of an Indian Business School” The Electronic Journal of Knowledge Management Volume 5 Issue 3, pp 273 – 282
Bikas C. Sanyal (2001)New functions of higher education and ICT to achieve education for all University and Technology-for-Literacy/Basic Education Partnership in Developing Countries to be held in Paris from 10 to 12 September
D. S. Thakur Knowledge Communication in Academic and Research Environment National University of Educational Planning and Administration, New Delhi
Higher Education in India Issues, Concerns and New Directions Recommendations of
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