INSIGHT MANAGEMENT REVIEW ISSN:2277-5676 DECEMBER 2018 VOL:9; ISSUE:1
PATUCK-GALA COLLEGE OF COMMERCE & MANAGEMENT
Affiliated to University of Mumbai NAAC Re-Accredited (Second Cycle) : B++ Grade (CGPA 2.77)
Annual Peer Reviewed ISSN Research Journal
December 2018
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Patuck-Gala College of Commerce & Management Santacruz, Mumbai-400 055
ISSN : 2277- 5676 Vol . : 9; Issue : 1
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DISCLAIMER
The views expressed in the Journal are purely the personal judgement of the authors and they are solely responsible for it. The content does not in any way reflect the views of this Institute, the Editorial Team or the Institute with which the authors are associated.
All efforts are made to ensure that the published information is correct. The Publisher is not responsible for any errors caused due to oversight or otherwise.
Published and Printed by Patuck-Gala College of Commerce & Management Patuck Campus, 100 Nehru Road, Santacruz (E) December 2018
Editorial Board
• Dr. Shobha Menon, Principal, Cosmopolitan Valia College • Dr. Sumita Shankar, Associate Professor, NSS College • Mrs. Malathy Mohanraj (Retd.), Lecturer, English / Business Communication & In- charge, Patuck Junior College (Science Section) • Dr. (Mrs.) Meeta Pathade, In-charge Principal, Patuck-Gala College of Commerce Management • Mrs. Renita Vazirani, Convenor, Research & Publication Cell, Patuck-Gala College of Commerce Management
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ACKNOWLEDGEMENT
The purpose of the Research & Publication Cell at our College is to encourage research culture among the teaching fraternity within and outside the Institution. Over the years, we have been able to achieve quite a milestone, with recreating the journal into an ISSN peer reviewed journal. And for this we extend our heartfelt gratitude to all our peer reviewers who have honourably accepted to be a part of the development process. Their valuable and insightful inputs have helped us make a big difference and has helped us improve and sustain the quality of the Journal.
The Management of the College has imbibed and maintained the culture of philanthropy ever since its inception. Teachers are encouraged to publish their papers at no cost. We truly extend our gratitude to the Management for supporting all the initiatives of the Research & Publication Cell. In the true spirit, the Cell is encouraged to disseminate research culture, among the teaching fraternity. Each year the research papers received are multifaceted and have significant academic value. We thank all our research paper authors for their efforts to provide good quality research papers. The Journal would not have evolved without their worthy inputs.
We are thankful to our Chairman, Shri Adil J. Patuck and our Principal, Dr. (Mrs.) Meeta Pathade for extending their continuous support to the Research & Publication Cell. Initiatives desired to be undertaken by the Cell get a positive nod and appropriate guidance to complete the same.
The research expert who peer reviewed the herewith published papers is a name heard well among researchers, and, was gracious to accept our request to peer review the papers received. We extend our sincere gratitude to the peer reviewer for conducting a detailed review of each paper and providing us with appropriate guidelines to improvise on the effectiveness of the papers.
We thank the Editors for compiling the Journal and undertaking editions in the papers which makes the Journal a thorough academic read. This issue will be our 9th issue and we are very thankful to all who have directly and indirectly contributed to the Journal. Over the years, we have received tremendous value addition to our research initiative.
Thank you
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ABOUT US
Patuck-Gala College of Commerce & Management is affiliated to University of Mumbai. At the time of its inception in 2002, the College offered Bachelor of Commerce (B.Com). In the academic year 2003-04, the College spread its wings and commenced Bachelor of Management Studies (B.M.S.) and to meet the increasing demand in the market, the College started B.Com (Banking & Insurance) in the academic year 2009-10. Our College is NAAC accredited since 2010. In August 2016, the College underwent the second cycle of accreditation and was graded with B++ (CGPA 2.77) by NAAC. The College has applied for the M.Com. program – Advanced Accountancy, with University of Mumbai and it may commence from the next Academic Year.
Our College is a learning and an evolving Institution. It has grown over the years to achieve many a milestones. In July 2017, the College was awarded the Best Academic Institute for Student Services and was also awarded the Best Emerging Educational Institution, by The Indus Foundation.
The Academic Year 2018-19, too has been very eventful, with the College hosting and organizing a plethora of noteworthy occasions. In December 2018, we conducted an International Research Conference in association with the HEF (Higher Education Forum) and in January 2019, we conducted a National Seminar Cum Workshop on Prevention of Sports Injuries. The College since the past three years has been publishing an Annual Student Research Journal - ‘Prasuvidha’, wherein students are encouraged to author academically relevant papers with the guidance of teachers.
We have professional well-qualified teaching and non teaching staff members who would bring a total delight to our stakeholders. The College functions smoothly with the help of various committees and associations.
The College has all the requisite facilities like Library, Sports Room cum Common Room for boys and girls separately, Canteen, Computer Lab, Playground, Common Room for Girls and Boys and a spacious Auditorium. The infrastructure is continually improvised to meet the growing needs.
We are keen to provide for the overall development of our students and hence we encourage them to participate in a number of inter-collegiate events. The grooming ensures our students of awards and laurels that not only make us proud but also boosts the confidence of our students to try and do their best in their lives.
The College initiatives have always been to contribute to the area of education and research and for the overall development of the students. Each year Faculty Development Programs are conducted on campus to ensure the facilitation of faculty overall development.
A 360 degree approach is adopted at the College, with development and welfare of administrative staff, faculty members, class IV employees and students being catered to.
The Cell continually endeavours to upgrade the quality of the Journal since change is the only constant at our College and we always benchmark against our own milestones.
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EDITORIAL
"Research is to see what everybody else has seen, and to think what nobody else has thought". - Albert Szent-Gyorgyi
Research is well done when it emanates a thought provoking process. That is how an in-depth research would begin. In the modern times, management practices are emerging and so concepts are evolving. This is increasing the ambit of management and so is the area of research.
The Journal - 'Insight Management Review', provides a platform to authors to think of emerging concepts and practices and publishes the same in the Journal as research papers. This is the ninth volume of the Journal and each year fortunately the Journal has been improving.
The Research & Publication Cell of the College, endeavours towards spreading the research culture among not only the faculty members but also the students of the College. Research is gaining eminence in the field of education, as it enables knowledge building and an investigative skill in individuals. The Cell attempts to facilitate the culture through documentation, activities and publications.
This Journal achieves a dual objective of improving the knowledge through reading and writing of academic value and developing in teachers a craving for in-depth knowledge.
This is the ninth issue of the research Journal. While still sustaining the quality of the Journal, it has always attempted to cater to the expert researchers as well as the novices in research. It provides a platform to the first timers to indulge in research paper writing and entering the discussion forum.
The papers provide a good amount of value addition to the readers and may intrigue in them many exploratory questions which might provide further scope for research.
We thank all our readers and hope they derive ample knowledge from the Journal. We also request our readers to feel free and provide their valuable suggestions and feedback to the editorial team, so as to enable us to improve the effectiveness of the Journal.
The Editorial Team
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CONTENTS
Sr. No. Title of the Paper Author Page no.
1 Internet Addiction Disorder – The New Age Monisha D’costa 01 Addiction 2 Higher Education In India : Issues & Manisha Challenges And Way Forward – Collaborative 06 Mandapeli Learning 3 The Need And Importance of Educational Dr. Vincent Tours On Quality Enhancement In Higher 11 D’mello Education 4 A Study of Position Profile And Its Difference Priyeta 19 With Job Description Priyadarshini 5 The Icebreaker In Workplace : Humour Krupa Shah 25
6 Code of Conduct In The Media Industry Shreya Chavarkar 31
7 Credit Appraisal – A Process Review Rajni Ranjan 35 8 Employment Generation And Poverty Dr. Caroline Alleviation In India – Challenges & 43 David Opportunities 9 Role And Financial Performance in Maharashtra Gramin Bank (MGB) In The Dr. Pallav Das 48 Indian Agricultural and Non-Agricultural Sector 10 Venturing Into E-Business Dilip Menon 56 11 A Study of Human Behaviour With Respect Sana Ansari 64 To Social Psychology 12 A Study of Rural Livelihoods And Occupation Megha Nair Pillai 68 In Saphale 13 Do It Now – Book Review Dr. Meeta Pathade 74
14 The Alchemist – Book Review Shivangi Sharma 76
15 Crash of Luxury Airlines Renita Vazirani 77
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INTERNET ADDICTION DISORDER - THE NEW AGE ADDICTION Monisha D’costa Faculty Member Patuck-Gala College of Commerce & Management
Abstract
The Cambridge Dictionary defines addiction as, ‘an inability to stop doing or using something,(especially something).’ While earlier addictions were attributed mainly to destructive behaviour patterns like drinking, consuming drugs and tobacco, gambling, etc., the era of the internet has now ushered in a new kind of addiction – an addiction to the internet. This type of addiction in the medical world is also referred to as, ‘Internet Addiction Disorder.’ While during its nascent years, the internet proved to an absolute boon to consumers, organizations and the likes. But, today, with the proliferation of the internet in almost every area of our lives, not only are we becoming dependent on technology for almost everything, but we have also come to a point of almost not being able to do a day without the internet. Therefore, it may be easily said that the internet has made a place for itself in our personal lives, so various areas of functioning and adjustment are dominated by its use. The purpose of writing this paper is to understand what ‘Internet Addiction Disorder’ really is.
Keywords : Internet, Addiction, Disorder
Introduction
The issue of excessive use of computers has become a growing social issue in today’s age. This issue that is labelled as, ‘Internet Addiction Disorder’ (IAD), is currently under worldwide debate. Although the internet is not tangible, IAD resembles "process" addictions, in which a person is addicted to an activity or behaviour (including gambling, shopping, or certain sexual behaviours) rather than a substance (mood-altering drugs, tobacco, food, etc.). People who have an addiction to the internet generally start off using the internet on a casual basis and then gradually progress to using the technology in a number of dysfunctional ways. In fact, studies have revealed that spending large amounts of time on the internet is one of the core features of the disorder. The amount of time by itself, however, is not as important a factor, as the ways in which the person's internet use is interfering with their daily functioning. If a person has no other option but to use the internet for work-related purposes, then most likely this behaviour is not an addiction. However, when use of the internet interferes with the person's social life, professional and educational work, then this kind of behaviour may be categorized as an addiction to the internet.
Internet Addiction Disorder not just causes social problems but is also known to ruin lives by leading to psychological disturbances, as well as neurological complications. There have also been some cases where individuals enter internet chat rooms for people with serious illnesses or disorders and pretend to be a patient with that disorder in order to get attention or
Insight Management Review December 2018 ISSN : 2277-5676 Page 1 sympathy. Therefore, IAD may also be the symptom of an underlying, unaddressed emotional cause.
Research Objectives
• To have a clear understanding on what is ‘Internet Addiction Disorder’ • To understand its history, causes, symptoms, and treatment.
Research methodology used in this study is secondary sources of data that includes online journals and websites.
Conceptual Background of IAD
When in the year 1991, the internet became publicly available, the whole world sang its praises and wooed over it. Well, it is no doubt that the introduction of the internet changed the global scenario to a great extent. Organizations adopted it due to its swift functioning. After a while, its consumers made it a part of their homes and daily lives. After a few years, smartphones arrived. This made life so much easier than one could have imagined it to be.
However, in the year 1995 when New York based psychiatrist Dr. Ivan Goldberg posted a note on the online psychiatric bulletin board PsyCom.net, as part of the newly released 4th edition of the Diagnostic and Statistical Manual (DSM-IV) of the American Psychiatric Association (APA) where he spoke of a fictitious disorder called internet addiction disorder, little did he know that he had then given birth to a term that no one knew existed, while it actually really did exist. And its existence was proved when his bulletin board was flooded with people narrating their stories of “remaining caught in the Net” and were seeking help for this condition.
In the same year, a young student of clinical psychology, who incidentally bore the name, Ms. Kimberly Young, also started researching on the same condition and independently conceived of ‘addictive use of the internet’, as a pathological condition. She researched on psychological factors that led to excessive use of computers. While her project on ‘Internet addiction’ began purely out of personal interest in her apartment in New York, little did she know that her first illustrative case report published in the year 1996 would be cited about 755 times, and her first definitive research article titled, ‘Internet addiction: Emergence of a new clinical disorder’, published in 1998, would be cited as many as 5402 times. Ms. Young began her pet project by noticing her husband’s married friend who was addicted to chat rooms and spent nearly 60 hours online at a time, in-spite of it costing about USD 2.95 per hour to connect to the internet. Well, needless to say the couple not only suffered financial losses, but also lost on their marriage that ended in divorce.
Is IAD A Real Thing?
Although the American Psychological Association has rejected IAD in its list of official Diagnostic and Statistical Manual of Mental Disorders (DSM), merely recognizing internet Gaming Disorder (IGD) as part of DSM-5. It would only be fair to say that IGD is only the tip of the iceberg when it comes to IAD, which includes addiction to e-mail, social networking sites, pornography, apps, online shopping, etc. In fact, a number of researchers
Insight Management Review December 2018 ISSN : 2277-5676 Page 2 and psychiatrists in the United States recognize IAD as a pathological condition. Countries like China, India and South Korea have also recognized IAD as a rather dangerous condition.
Results of a recent study conducted by All India Institute of Medical Science (AIIMS) and Maulana Azad Medical College (MAMC) on 817 youth which included school and college students, as well as young professionals, revealed that about 56 per cent of the participants had at least one mobile phone behavioural addiction such as gaming, internet use, social media (Facebook, Twitter, Instagram, etc.). The findings also pointed that 41 per cent of the respondents wished to seek professional help in case they were unable to control this addiction. 15 per cent of the respondents had also sought help regarding their IAD in the past. Therefore, although the topic of IAD still needs further in-depth research, one cannot deny that IAD is becoming a worldwide pathological condition.
Symptoms of Internet Addiction Disorder
Spending excessive time on the internet, for non-work-related purposes is one of the most notable symptoms of IAD, despite the threats it poses (poor performance at work, poor grades, deteriorating eyesight, deteriorating family and social life, etc.). Apart from this, there are other symptoms of IAD that may be categorized into physical and emotional manifestations.
Physical Symptoms Emotional Symptoms Backache Agitation Carpal Tunnel Syndrome Anxiety Dizziness Avoiding work Dry eyes and other vision Defensiveness problems Fatigue Depression Headaches Euphoric feeling while using the internet Insomnia Fear Poor Nutrition Feelings of guilt Poor Personal Hygiene Inability to prioritize or meet deadlines Neck Pain Isolation Shoulder pain Loneliness Weight gain or loss Procrastination
Types of Addiction
Internet Addiction Disorder covers a variety of compulsive activities that make use of the internet in an unhealthy manner. Some of these activities are segregated as follows:
• Cyber-relationships: Internet and social networking sites are a great way to meet and interact with new people. This may even lead to romantic relationship. Such romantic relationships over the internet are often more intense than the real-life relationship as they offer an opportunity to live out the ultimate fantasies. A huge problem with such
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online relationships is that there is always an opportunity that they lie about their age, appearance, relationship status, job and even the sex. Such online relationships may end in emotional distress when they happen to meet face-to-face in real life.
• Cybersex and Pornography: Since the internet is a great way of escaping reality, people spending more time on the internet engage in cybersex, view pornography, spend time in adult chat rooms etc. Such indulgence will put an end to their real-life relationships, as well as it affects their career and emotional wellbeing.
• Gaming Addiction: Many school and college students are addicted to this type of IAD. Individuals getting addicted to this type have a compulsive thought to play online games and it becomes so uncontrollable that their real life gets neglected.
• Spending Addiction: Online shopping is a habit that gets out of control. Shopping addicts tend to buy things that are of no use to them. In order to experience a feeling of owning something new or winning a high placing bid, these people get addicted to online shopping. Such people actually do not know how much they spend online.
Causes of Internet Addiction Disorder
While no one can pinpoint a specific reason for a person to be addicted to the internet, there are several factors that are seen as contributors to this addiction. One theory focuses on the mood-altering potential of behaviours related to process addictions. Just like a person who is addicted to shopping gets a ‘high’, a person with an internet addiction experiences a similar euphoric feeling while on the internet and their favourite websites. In other words, some researchers believe that there are chemical changes that occur in the body when someone is engaging in an addictive behaviour. Furthermore, from a biological standpoint, some people may be genetically prone towards addictive behaviours, which may also include IAD. In addition to having features of a process addiction, internet use might be reinforced by pleasurable thoughts and feelings that occur while the person is using the internet. Another cause for of IAD could be that people with mental disorders or symptoms as depression, feelings of isolation, stress, or anxiety, in certain cases tend to ‘self-medicate’ by using the internet in the same way that some people use alcohol or drugs to self-medicate the symptoms of their mental disorder.
Another perspective of IAD may be from a social or interpersonal point of view, where in, a person might use the internet excessively in order to escape family conflict. Another possibility is that social or peer pressure may also prompt excessive internet use. Some people are by nature shy and introverted in a public setting and therefore may prefer to go incognito and meet people online rather than in person. After a while, this online world becomes their way of socializing. This could be another cause of IAD.
Also, studies have shown that the interactive aspects of the internet, such as chat rooms, e- mail, and interactive games like Multi-User Dungeons and Dragons (MUDD), are more likely to lead to internet addiction as compared to the plain basic web surfing. Then there are also pre-existing addictions like gambling, shopping, sexual addiction, etc., that may be transferred from the real world to the online world. Casinos on the internet could reinforce a
Insight Management Review December 2018 ISSN : 2277-5676 Page 4 person's pre-existing gambling addiction. Similarly, someone addicted to shopping could transfer their addiction from the local mall to online stores.
Conclusion
While Internet Addiction Disorder (IAD) may have started out as a hoax disorder, today with the global IAD population being as high as 51 per cent, one may easily conclude that this kind of addiction may actually be a ‘real’ phenomenon. While the rise in digital mediums and the dependency on them does not seem to leave people with too much of an option. It would be wise to use the ‘prevention is better than cure’ formula by ensuring one strikes a healthy balance between their online and offline worlds.
References
• https://www.ncbi.nlm.nih.gov/pmc/articles/PMC3480687/ • https://www.ncbi.nlm.nih.gov/pmc/articles/PMC4776584/ • https://www.ncbi.nlm.nih.gov/pmc/articles/PMC2719452/ • https://www.psycom.net/iadcriteria.html • http://www.minddisorders.com/Flu-Inv/Internet-addiction-disorder.html • https://www.practo.com/healthfeed/internet-addiction-disorder-26680/post • https://thenextweb.com/insider/2011/08/06/20-years-ago-today-the-world-wide-web- opened-to-the-public/ • https://www.indiatoday.in/mail-today/story/mobiles-internet-are-trapping-the-youth- says-survey-by-top-hospitals-1180599-2018-03-02
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HIGHER EDUCATION IN INDIA : ISSUES & CHALLENGES AND WAY FORWARD - COLLABORATIVE LEARNING Manisha Mandapeli Assistant Professor Cosmopolitan’s Valia C. L. College of Commerce
Abstract
The purpose of this study is to know what collaborative learning is and how is it advantageous. A few of the various strategies that enable collaborative learning have been discussed in the paper. The challenges faced by the teacher in adopting collaborative learning have also been discussed and also the outlook of students towards this method is highlighted. The results drawn from this study indicate that collaborative learning are far better and have long-lasting impact in helping students remember what they have learnt. This indicates that collaborative learning is a better option to make learning easy, understandable and retentive.
Keywords : Collaborative Learning, Education
Introduction
To collaborate means to form an alliance and to work together in groups and learning means the acquisition of knowledge through skills, experience or studying. Collaborative learning is where people work in groups and they learn or attempt to learn something together to achieve a common goal. According to Gerlach, "Collaborative learning is based on the idea that learning is a naturally social act in which the participants discuss among themselves. It is through the talk and discussion that the learning occurs. The group members can utilize each other’s skills and expertise to complete the given task. The group members are jointly responsible for the success or failures of the group. Collaborative learning boosts student’s confidence and enhance evaluation skills.
From the educational view, collaborative learning involves two students or a larger group of students working together to solve a problem, to accomplish a task or to create a product. Collaborative teaching and learning, creates an environment where members aggressively cooperate by sharing experiences and take on different roles. Despite working together, each is responsible and are also accountable to each other. Collaborative learning can take the form of face to face communication or the use of computer platforms technology, either which helps to bridge the gap between the learners, co-learners and the teacher.
Collaborative learning is also possible through the use of internet. This technique is called as Computer Supported Collaborative Learning (CSCL) which is popularly known as E- learning. Some the most commonly used learning theories when learning occurs in a digitalized environment are connectivism, cognitivism and constructivism. The groups are formed through the use of internet and the given topics are discussed among the group
Insight Management Review December 2018 ISSN : 2277-5676 Page 6 members, perhaps without face to face communication. This form of learning is gaining popularity in the modern era as the world is moving towards technological advancements.
Strategies For Collaborative Learning
Jigsaw Technique
The jigsaw technique is a system of designing classroom activities in a way that students rely on each other to accomplish the tasks. It involves students forming groups, and each group handles part of the job so that in the end they all create a complete activity just like a jigsaw puzzle.
One Minute Paper
First, the students are divided into groups and are asked to provide their feedback after a lesson is taught. The feedback is gathered by asking questions which the students need to answer after discussion with their group members. After the feedback is gathered from all the students, there can be discussion with the entire class.
Uncommon Commonalities
The students are divided into small groups, preferably 4-5 members in one group. Each team member is given a piece of paper and is asked to fold it in fours and label it as section 1,2,3,4 and so on. The teacher then asks a question which has numerical answer like “How many siblings do you have” and the team members are asked to come up with answers and find what is common among them. The activity continues with every question asked by the teacher.
Forced Debate
This strategy requires that students use their communication skills to work within a group. The teacher writes a proposition on the front board in the form of a question, example, “Should there be a coupon system in the college canteen?” . The students who agree form one group and the students who disagree form another group. The teacher then asks them to debate on the topic opposing the side that they have chosen. This strategy really utilizes students’ critical thinking skills and forces them to really think about the question as a whole in order to argue for the opposing side rather than what they really feel about the question. In this case the students develop the skill of thinking of the reverse side of every aspect of the question under discussion.
Cooperative Graffiti
It is a kind of brainstorming technique. First, the students are divided into small groups and each group is given a large piece of paper and a variety of colourful pens. The students are asked to think about a topic and note down as many ideas as possible on the paper using different-coloured pens. The teacher then gives the students a broad topic and writes the same on the black board. Then the students are given a few minutes to write down as many
Insight Management Review December 2018 ISSN : 2277-5676 Page 7 ideas as they can that correlate with the topic written on the board. Once the time is up (about 5-10 minutes), the students try and organize their colourful ideas into categories.
Advantage of Collaborative Learning
• Enhances problem solving skills: Collaborative learning encourages active participation by each student as they need to examine the assigned task and also every possible solution, so as to arrive at the right solution to make the desired conclusion, thus improving an individual's problem-solving skills. Students also learn to be a good listener as they are encouraged to listen attentively to the comments of the group members. They also contribute to the sharing and can re-evaluate their views and come to conclusions.
• Inspires critical thinking: Collaborative learning is a method of developing and increasing students' capacity to learn, as their role is to transmit information while facilitating the learning process. It includes creating and handling meaningful learning experiences that stimulate students to think through actual and existent problems. Through collaborative learning, the teachers expect students to clarify ideas, views, and opinions through their discussion forums before reaching a conclusion. It improves critical thinking skills as students interpret not only their thoughts and views but also the ideas of other students.
• Improves social interactions and supports diversity: Collaborative learning involves the use of different strategies such as jigsaw technique which involves separating a task into subtasks. Use of Jigsaw strategy provides students with the chance to enthusiastically help each other shape understanding, as the instructor assigns them to groups that require varying skills. To efficiently handle the task, students from different groups have to meet to exchange ideas and opinions amongst themselves. This kind of teamwork allows students to be experts in their allocated subject areas. At the end, students then are also able to teach others.
• Aids the development of self-management skills: In collaborative learning, students learn to be a good thinker, problem solvers, decision makers, time managers and more, as they take up a difficult task or assignment and break it down so that they can find a solution to it. Students also learn to interconnect and interact professionally and competently with other members of the group.
• Development of oral communication skills: Collaborative learning helps to develop and improve communication skills among students as they are involved in group discussion which relies on strong communication skills. Learning in group means being able to communicate both on intellectual and emotional levels by explaining their thoughts, expressing their feelings openly but positively, listening prudently to others, asking questions and clarifications on other students’ opinion and also telling how others feel through their non-verbal communication. It also helps in encouraging others to do well as members share their thoughts, ideas, and feelings.
• Fosters the development of interpersonal relationship: Working together in groups helps the students learn how to relate with one another which boosts group morale and
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performance. They form symbiotic and trusting relationships which give the team members a sense of belonging. It fosters the development of interpersonal relationships.
• Increases retentive power: Collaborative learning teams attain higher level of understanding and retain the lessons learnt as compared to individual learning.
• New perspectives are gained: As students work in groups, they interact with other members who belong to a different social and cultural background. This widens up the world to the students as they get to know each other. Students may also be influenced by the members of the group and in turn the other members maybe influenced by them. This helps to attain tolerance and acceptance of others' views and ideas.
• Other benefits: Promotes higher achievements and class attendance, creates positive attitude, promotes innovation in teaching and classroom techniques. It maybe a little tedious task but it can be simplified as students work in groups. It helps to build positive relationship. Students are exposed to practical situations and it creates a feeling of belongingness among students. It helps identify and enhances skills and talents, promotes higher achievements and creates positive attitude.
There are many advantages of collaborative learning and this is the reason why it is gaining popularity in today’s world. But at the same time, it also has certain limitations.
Problems in Collaborative Learning
There are various problems faced by the teacher as well the students while using collaborative learning. Some of them are:
• Many students strongly prefer to work alone and actively dislike dealing with the problems created by having to work in groups. • Students often have difficulty finding mutually acceptable time for group meetings. • Some students are simply irresponsible, and they fail to do their share of the assigned work and the rest of the group then has to suffer. • A few group members have dominating behaviour as they often do the work and so they monopolize the group discussion. • Some students are not involved in the group and they do not participate in the group work at all, but their names would still be specified in the group report. • The work is divided among team members which means that no one does every step of the assignment because of which no one may completely understand the entire exercise. • The learning ability of students are not the same.
However, the issues mentioned above, can be avoided to a great extent if collaborative learning is taken up in a planned manner.
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Conclusion
Though collaborative learning has some limitations, they can be dealt with by merely changing the teaching styles. Here, the role of the teacher is very important in creating effective collaborative learning classroom environment. The teacher can make collaborative learning successful by involving students into real world tasks and linking new or unknown topics with the ones which are already known to the students. The teacher acts as a mediator and creates a rich environment for students to engage themselves into learning through groups.
During a collaborative learning session, students not only work on academic assignments but also get to develop their social skills and learn together which improves their relationships with others in the class. Collaborative learning will allow students to engage and involve themselves more actively in the learning process rather than be passive students. It helps them to know their strengths and weaknesses as they work in groups and as they interact more with the other members of the group. They also acquire new ways of handling problems. Collaborative learning enhances the learning process and also the quality and quantity of output. Also, group learning proves useful in retaining the contents for a longer time period. Thus, collaborative learning should be included as a part of the teaching learning process to attain better understanding and retention of the concepts.
References
• James Herbert Shea, ‘Problems with Collaborative Learning’ Journal of Geological Education, Pages 306-308: Published online: February 12, 2018 • Tim S Roberts, ’Online Collaborative Learning : Theory and Practice’, IGI Global, 2004 • https://www.igi-global.com/book/online-collaborative-learning/810 • www.methodenpool.uni-koeln.de/koopunterricht/The%20Classroom.html • https://www.grdc.org • www.study.com • www.eztalks.com • www.teachthought.com • www.indiatoday.in
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THE NEED AND IMPORTANCE OF EDUCATIONAL TOURS ON QUALITY ENHANCEMENT IN HIGHER EDUCATION Dr. Vincent D'mello HoD, History St. Joseph College of Arts and Commerce
Abstract
This study identifies the need and importance of educational tours on quality enhancement in higher education. The focus of Curriculum is rote learning of theoretical knowledge and less on practical application. Hence there is a gap between academia focus and industry needs. Through this method of combining teaching and learning process students are better prepared to face the real-world scenarios with more confidence. "Human memory is picture oriented and not word oriented." This is the main concept behind an educational tour. Educational tour is nothing but the planned combination of tours, site visits with the target of global learning which can enhance the knowledge of students and can help them to see the clear picture of the theoretical things they have learnt. As far as the benefits of this tour are concerned, during such tours, students can actually see and enrich their knowledge of places and people they have learned about in the classroom. They can gain a deeper understanding of real-life situations and trends than a book can convey. Along with professional skill development, students can get the chance to try out the languages they have studied with native speakers. They can build independence and confidence as they explore new places and local customs. Perhaps most important of all, students gain new insights into their own culture, and a more global perspective. Educational tour is helpful to cope up with advance learning. Educational tours help to give a practical approach for the curriculum and it is helpful to develop more interest in learning among students.
Keywords : Educational Tour, Higher Education
Introduction
The purpose of education is to develop the knowledge, skill or character of students. Thus, the education is the process of learning and knowing, which is not restricted to our college or textbooks. Education is very important for an individual life. Education is a major aspect of development of any modern society. The importance of education is evident at every stage of education whether at primary, secondary, high secondary and in higher education. Universities are the main institutions that provide higher education. The higher education landscape is undergoing significant change as a result of innovations. With globalisation, there is a change in the way higher education is taught and, in the way, students learn. While the conventional setting of the lecture hall will continue to form the bedrock of higher education systems, it will be enhanced by the integration of new tools and pedagogies and it will be complemented by many more learning opportunities and a greater variety of providers.
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Students are unique and so is the way they learn. Therefore, the teaching tools used in Universities and colleges should cater to individual ways of learning with the student at the centre. New technologies and communication platforms also allow for greater interactivity between the teacher and student(s), both inside and outside the classroom.
Mary (2009) describes that, higher education is said to produce that essential balance between theory and real practice in any given field. Higher education is viewed as a source of great potential for the socio-economic and cultural development of the country. Higher education is rapidly changing our world and changes the things in to a new form. Students are a central part of learning process. Therefore, they not only require quality education, but also effective and latest means of learning to have a better knowledge and have a command on what they are studying presently, so that they will be able to apply that knowledge in their future lives also. For this purpose, different sort of activities like seminars, discussions, presentations, workshops, local conferences, lectures and educational tours are essential to conduct at this level. Especially the activity of educational tours which are commonly conducted for the students at higher level are one of the major sources of providing knowledge to the students by giving opportunity for self-experiences, observations and self-long-lasting learning.
Concept of Educational Tours
Wikipedia, the free encyclopaedia, describes educational tour or excursion as a journey by a group of people to a place away from their normal environment. The purpose of the tour is usually observation for education, non-experimental research or to provide students with experience outside their everyday activities. Educational tours give them a chance to get out of the classroom and experience something new which is necessary. They allow students to have a real-world experience. According to Youth Learn Initiative, “educational tours are a great way to bring excitement and adventure to learning.”
Amber D. Walker describes that with the availability of learning materials on the internet, some teachers and students may question the need for educational tours. They can be troublesome and difficult to organize and supervise. But they do provide learning opportunities that cannot be experienced in the classroom. They are a great way to communicate difficult information.
Through educational tours most of the concepts and phenomena may be easily clarified, understood and assimilated and with the help of this, a good deal of energy and time of both the teachers and students can be saved. Eric Powell describes educational tours as vital for students to have a chance to view and explore historical places and different social institutions. They provide an opportunity for the students to visit a new place, meet new people and see and understand the things. Educational tours are very important because they are a way to bring the students closer together, they are very helpful for physical fitness of students and they are also a source of entertainment. Educational field trips are very helpful to provide a future professional and vocational direction. They open the eyes of students, not only with information but with ideas also.
J. C. Aggarwal (2003) describes that educational tours are also helpful for the teachers to clarify, establish, co-relate and coordinate accurate concepts, interpretations and
Insight Management Review December 2018 ISSN : 2277-5676 Page 12 appreciations and enable him to make learning more concrete, effective, interesting, inspirational, meaningful and vivid. Thus, it can be said that educational tours are helpful in completing the triangular process of learning that is motivation, clarification and stimulation. The located place for educational tours can be historical places, museums, zoos, industries, banks etc.
Objectives
− To give emphasis on the importance of educational tours in every faculty of higher level. − To know how much it will be important for the students to have a better adjustment in the educational institution and society as well as in their professional lives. − To find out whether it provides a real-world experiences and long-lasting learning among the students − To know how much it will help the students to take more interest in their studies − To know how beneficial, it will be to provide practical approach to the students.
Review of Related Literature
K. Sampath (2006) describes that during the educational tours the pupil has concrete learning experiences in a real situation which has been undertaken with a specific purpose. Educational tours are organized visits into the immediate or distant places taken by the pupils and the teachers to further educational purposes of the regular classroom activities. The chief purpose of this method is to give the pupils first-hand experiences that cannot be otherwise got in the classroom. Many of the objects of investigations can be studied best on their natural settings. It is easier to grasp the lesson when students do hands on activities because remembering actions is easier than remembering words.
.J. C. Aggarwal (2008) clears that educational tours aim at enriching, vitalizing and complementing content areas of the curriculum by means of first-hand observation and direct experience outside the classroom.
According to Lord Chestier Field: “The knowledge of the world can only be acquired in the world and not in a closet. Books will never teach you, but they will suggest many things to your observations.” According to Randy Wilhelm “Educational tour is a substantive way to expand student’s horizons and allow them to learn experientially.” The positive benefits derived from educational tours are hands-on, real-world experiences, quality of education, positive attitudes to science, motivation towards the subjects, improvement of the socialization between students, development of rapport between teachers and students, enabling teachers to utilize other learning strategies such as cooperative learning. A history of educational tours, if the long term is considered, it is realized that children have learnt by being with their parents or placed in apprentice situations with employers for most of human history. In a sense, educational tours were the norms, until the invention of formal education. In the ancient time before Christ, the Greeks took their children to different places where children participated in different activities to develop their physical fitness. The state name “Sparta” was famous for their physical training. The same is the case with “Athens” where children are trained physically very toughly.
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J .C .Aggarwal (2008) describes that over the years, educators, philosophers like Comenius (1592-1670), Rousseau (1782-1852), Pestalozzi (1746-1827), Herbart (1746-1841), Froebel (1782-1852), Spencer (1820-1903), and Dewey (1859- 1952) have pointed out the need for reinforcing abstract learning with concrete experiences. In western countries “England” is a good example for training physically their children. Apart from England other European countries like France, Germany, Canada and Italy also organized educational tours at every educational level. Sir Syed Ahmed Khan was the first man who gave a lot of importance to the educational field tours in the sub-continent. Muhammadan-Anglo Oriental School was started where educational field tours were arranged regularly along with academics.
A. Panneerselvam and S. Santhanam (2006) define that there are various types of educational tours which are conducted by institutions such as: local trips, community trips, tour or journey, imaginary tours, inter-school visits and individual trips.
Myers and Jones (2009) indicate that educational field tours should be designed around specific educational objectives. If an educational tour is not planned well in advance, it will end in confusion and will be a waste of time and money. So educational tour should be planned as a cooperative activity involving full pupil participation under the teacher’s supervision. When planning and organizing a successful field trip, three important stages should be included i.e. the pre-tour stage of an educational tour, which involves two major components: administration and instruction. The second stage of a successful educational tour is the tour itself. It also has two components: the role of the student and the role of the teacher. The third and final stage of a successful educational tour is the post-trip stage which also consists of two components: debriefing and culminating activity.
Importance of Educational Tours
Educational tours are important in many ways. Going on an educational tour means more than simply leaving the college campus. Although educational tours should always have a major educational element, still the impact of educational tours should extend much further. The importance of educational tours includes giving students the chance to build closer bonds with their classmates, experience new environments and enjoy a day away from the classroom.
New Sights
When students and teachers are together outside the classroom, new educational environments and experiences are possible. Students may have the opportunity to observe many things that are not available at college, including exotic wildlife, rare plants and maybe even the stars, if the educational tour is to a planetarium. Discussing the educational trip beforehand is wise because it allows students to know what they will experience during their time away from college.
Bonding
Getting away from the everyday atmosphere of the classroom gives students an opportunity to spend time with each other in a new environment. They may be able to connect on more of a personal level without the structure of the normal college day. Students may be able to
Insight Management Review December 2018 ISSN : 2277-5676 Page 14 spend much of the educational tour day in small groups, observing, chatting and learning about each other. Having an educational tour in the early part of the term is wise, since it will allow students to bond with classmates who they otherwise may not have known very well.
Informal Learning Environment
Educational tours provide valuable educational opportunities away from the classroom, without using textbooks and other tools used in a normal college setting. Students on educational tours can often learn while having fun in a more informal environment. If the educational tour destination has staff members who do hands-on teaching with visiting students -- such as at a science centre or historical museum -- the students will be excited to learn from someone new.
Fun
No matter how much students learn during an educational tour, their favourite memories may be based on their enjoyment of the day. Getting away from college for a day or even half a day is always exciting for students, and educational tours are always highly anticipated. Students will have fun with their friends and they may also return to the classroom with a renewed focus on their college work.
How Do Students Benefit From Educational Tours?
Educational tours can give students exposure to places they might not otherwise visit. Many colleges, camps and institutions offer Educational tours for students to spend several hours or days outside of the classroom. Educational tours range from local visits to civic offices or businesses to industries.
Perspective
Part of how students benefit from educational tours is by gaining new perspectives on the world. This is especially true for more extensive educational tours where students travel farther away from home. By coming into direct contact with a different environment or even a new culture or language, students can better understand their place in the community and develop an openness to differences in others.
Variety
Educational tours also function to put some variety into otherwise regimented lesson plans. Instead of spending every day in the classroom, students get to learn in a new environment with new instructors. Educational tours also may give students a chance to interact with students from other colleges as they learn together or participate in group activities.
Learning Styles
Educational tours will often cater to more than one learning style, making them excellent teaching tools for certain students. Classroom lectures apply primarily to audio learners, who learn best by listening. Visual learners can benefit from visual aids, which exist in the
Insight Management Review December 2018 ISSN : 2277-5676 Page 15 classroom, but are much more frequent during an educational tour. Finally, for tactile learners, educational tours offer an uncommon opportunity to perform hands-on learning.
Classroom Supplement
It is important for instructors and college administrators to choose educational tours that augment existing lesson plans and synchronize with classroom learning. An educational tour that teachers choose for these reasons can serve to illustrate difficult concepts or extend the general natural of a classroom lesson by giving more specific information. The specialists who lead college groups on educational tours also may be able to provide professional insight from advanced study or direct experience, that teachers might not have been able to provide alone.
Reward
Before an educational tour actually takes place, it can still begin to produce benefits for students. By not allowing students with behavioural or academic problems to participate in an educational tour, teachers can encourage good behaviour and motivate students to work hard with the prospect of an educational tour looming as a reward. Even the most informative educational tours usually have an element of recreation, making it a time to unwind for all students.
Memories of school educational tours are among the most prominent of the formative years, largely because they are a welcome break in the routine for both students and teachers. While their purpose is essentially to educate, they can also be a fun bonding experience for everyone involved.
Reinforcement
The tours can reinforce what a teacher has been instructing in class about a subject and help students understand the topic better.
Engagement
Teachers turn tours into mobile classrooms, instructing students to collect data, then quizzing them or assigning a project based on what they learned during the outing.
Socialization
Taking students into a new environment gives them the experience of traveling in a group and teaches them to be respectful of the locations they visit.
Exposure
Students get to visit a place to which they have never been before. This can be particularly advantageous to students who are less fortunate and do not have the opportunity to travel.
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Curiosity
Students who go on educational tours find that they want to learn more about the subjects on which the tours are focused.
Retention
The type of memories that educational tours create, called “episodic memories,” helps students retain information for longer periods.
Conclusion
Educational tour is a progressive method learning by which the student goes through the necessary learning experiences under the leadership and guidance of the teacher. They are helpful to develop the complete personality of the students, like, their physical, mental, social and emotional aspects. Educational tours give students the opportunity to have first- hand experiences and to explore world. It helps students to interact with what they are learning. Educational tours allow for actual tactile experiences. Students are able to see it, manipulate it or participate in it physically. Usually educational tours are organized on larger scale; therefore, the students are divided into different groups and a leader is chosen among the groups. The other students have to follow his / her instructions. It helps to develop the ability of obligation and leadership qualities in students. During educational tours, students have to follow rules and regulations and they have to do their work properly and systematically under the supervision of teacher or guide. This will help to establish discipline among students which is not only beneficial for their educational life but also for their practical life.
The main purpose of the tour is usually observation for education, non-experimental research or to provide students with experiences outside their everyday activities. Educational tours give students the plenty of opportunities to make observations and observations are a big source of enhancing mental development. Educational tours provide an opportunity for social training of the students because educational tours are taken in large group and students are included from different social backgrounds. It gives students a chance to get to know each other and interact in a more relaxed environment. These interactions teach them how to behave in different settings. It will also help to control or show balanced emotions in different type of situations. Educational tours provide entertainment, learning and fun for students that makes it a great combination. Educational tours help improve students’ cognitive and inquiry skills. They provide plenty of opportunities to the students to show their abilities which are otherwise kept hidden in their educational institution. Educational tours are also very helpful in developing the aesthetic sense and spiritual satisfaction in the students.
During tours, students observe beauty of nature and also enjoy it which give them directly or indirectly inner satisfaction. Educational tours are a great way to create a students’ interest in a subject. The things students see and experience on educational tours can increase their motivation for learning. They greatly enhance the students understanding and grasp of a subject. The new environment and information provided by the educational tours stimulates the children’ awareness and increases their reasoning abilities. Educational tours give the practical approach to the students. They give great opportunity for students to not only
Insight Management Review December 2018 ISSN : 2277-5676 Page 17 observe but also actively participate in the events going on around them. Educational tours are important to history lessons, because first-hand experiences can bring history to life for students, who would otherwise possibly find it uninteresting. Educational tours to art museums and galleries can help instil an appreciation for arts in students. Many students do not get the chance to go the typical educational tours locations with their families, because of money constraints or lack of resources. Educational tours give students the opportunity to experience new venues. Educational tours are a tool to guide students in a particular vocational direction and to help them discover personal aptitudes at an earlier grade. Educational tours spark students’ interest in career field or other interesting paths. Educational tours help the teachers to clarify, establish, co-relate and co-ordinate accurate concepts and enable him / her to make learning more concrete, effective, vivid and meaningful.
Recommendations
• It is necessary that the educational tours should be arranged in every department at higher education level. • The government should provide sufficient funds and resources to the institutions to hold educational tours • Every student has some specific qualities, so with the help of educational tours, education can promote leadership, socialization, unity, self-confidence, discipline and organizing qualities among students • The students should be instructed by their concerned teachers, after each educational tour to write a proper report about the whole tour. Hence, it can also help increase their writing skills and also their intellectual abilities. • At higher education level, educational tours should be conducted in association with the Government and the private sector. In this way the students and teachers both have opportunity to share their knowledge and interact with the other party.
References
• Aggarwal, J.C. (2003). “Essentials of educational technology teaching learning. Innovations in education”, Vikas Publishing House Pvt. Ltd. • Aggarwal, J.C. (2008). “Principles & Methods & Techniques of Teaching”, Vikas Publishing House Pvt. Ltd. • Chand, T. (2004) Educational technology, Anmol Publications Pvt Ltd • Isani, Dr. Captain, U.A.G (2003). “Higher education in Pakistan A historical futuristic perspective”, Roohani Art Press Islamabad. • Kishore, N. (2003) Educational technology, Abhishek Publications. • Sampath, K. Panneerselvam. A, & Santhanam.S (2006). “Introduction to educational technology”, Sterling Publishers Pvt Ltd
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A STUDY OF POSITION PROFILE AND ITS DIFFERENCE WITH JOB DESCRIPTION Priyeta Priyadarshini Assistant Professor Bharati Vidyapeeth Institute of Management Studies and Research
Abstract
Every organization, regardless of its mission, strives to reach its objectives through its workforce. With growing business there arises the need for appropriate human power. Successful results are achievable if all members of the organization know their roles and responsibilities very well. Hiring the right person, at the right position, at the right time is essential. Growing business is directly proportional to requirement of manpower and when it comes to hiring a new employee, the requirements for that particular position needs to be understood by the recruiter. Here the position profile comes in picture. It contains all the responsibilities that the employee when hired for that position needs to carry out on the job. This paper is based on the review of most relevant information regarding position profile and aims to highlight the difference of position profile with job description It also defines the applications of position profile in various aspects of human resource management.
Keywords: Position Profile, Job Description
Introduction
A position profile offers employers a starting point. It allows human resources to collaborate directly with the hiring manager to design an intricate job description. The position profile may also be a useful tool for job seekers. Individual candidates may find it helpful to examine multiple position profiles during the career planning process.
An employer creating a new position often composes a position profile as the first step in forming the job description. A hiring manager will submit the position profile to the human resources department, which then designs a more detailed explanation of the position. This detailed explanation is the job description. The position profile is primarily for internal purposes. Human resources may keep a catalogue of position profiles, so that, as new openings become available, HR can quickly craft a detailed job description.
When one reads a position profile, some information about the job itself will help one decide if the job can be done well. Look at essential job duties and required tools, including equipment and resources, that a job holder must use to perform the essential duties, and see if one measures up. If one is not sure about the suitability for a job based on the description, it still does not hurt to go through with the application process. A job interview usually includes the chance to ask questions about the position profile. During the interview, one can then determine if the job expectations are within one's reach.
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Concept and Significance of the Study
The concept is all about growth of the business and the role of HR manager in understanding business and contributing to the strategic decisions taken by administration of the company. Growing business is directly proportional to requirement of manpower and when it comes to hiring a new employee, the requirements for that particular position needs to be understood by the recruiter. Here, the position profile comes in picture.
Objectives of the Study
- To understand importance of position profile with respect to growing business. - To understand the application of position profile in various aspects of human resource management.
Scope of the Study
The scope is limited to the growth of the business and the role of HR manager in understanding the business and contributing to the strategic decisions taken by the administration of the company. Position profile is being implemented in order to recruit new employees, specify the duties that the employee needs to carry out, evaluate their performance in future, provide them training and development programs and also for employee retention.
Position Profile
Position profile helps HR to:
• Know the requirements of the particular position • Recruit the right person as per the requirements gathered • Evaluate the performance of the individual employee • Identify the requirement of training and development for employee
Why HR needs to know the business well?
Traditionally human resource was viewed primarily as an administrative function. But things are not the same in the current environment. While the administration of these activities is still important to business, HR management was not seen as helpful in delivering upon business strategy. Today, the HR Head is increasingly required to act as both strategist and steward, who carries out day-to-day HR operations and as well participates in overall business strategy.
The focus has been on how HR strategy collaborates or supports overall strategy, how the HR of the organization can be used to attract talent and gain market share. While formation of business strategy itself may be the responsibility of business leader, HR should lead the deployment of business strategy by aligning people to the strategy, facilitating how tactics can be evolved from strategy and how performance can be measured and reported against
Insight Management Review December 2018 ISSN : 2277-5676 Page 20 targets. All this suggests that HR managers should play a leading role in deploying strategy rather than being just participative.
Position Profile v/s Job Description
Position Profile Application: An employer creating a new position often composes a position profile as the first step in forming the job description. A hiring manager will submit the position profile to the human resources department, which then designs a more detailed explanation of the position. This detailed explanation is the job description. The position profile is primarily for internal purposes. Human resources may keep a catalogue of position profiles, so that as new openings become available, HR can quickly craft a detailed job description.
Importance: A position profile offers employers a starting point. It allows human resources to collaborate directly with the hiring manager to design an intricate job description. The position profile may also be a useful tool for job seekers.
Job Description
Application: Job description serves as a guide for recruiting, staff planning, coaching, salary administration, performance appraisal and legal compliance. It allows a company to articulate its labour needs in detail. In contrast, a job profile is a brief outline. The job description provides a comprehensive list of the background, skills, experience, education and duties required for the position, whereas the profile is a synopsis.
Importance: While the position profile helps employers envision their manpower needs, the description helps the hiring authority match a tangible candidate to the employment opportunity. The job seeker uses the description to determine whether he wishes to pursue the position. Job descriptions enable a business to plan its growth while sorting out work flow, tasks and accountability.
Position Profile Template
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Following are the fields in the Position Profile template:
Valid From: This field contains the date from which the created position profile will be valid from. Responsible: This field contains the name of department that is responsible for handling the position profile. Name of Function: This field contains the name of the function for which the person is to be hired. Country: This field contains the name of the Country in which the company is. Department / Division : This field contains the name of the department for which person needs to be hired. Location: This field contains the location of the branch of company. Job Family: This field contains the job family to which the name of function belongs. Function Type: This field describes the scope of responsibility of the respective position. Position Level: This field describes the level of the position. Mission of Function: This field describes what exactly the position is for and what the person is expected to do. Dimensions of Function: This field describes various dimensions of the position offered to the person and those that need to be taken into consideration. Internal & External Contacts: This field describes the internal and external contacts with which the position needs to interact. Areas of Responsibilities: This field contains the responsibilities that the position needs to carry out. This will contain what, how and why that particular responsibilities are needed to be carried out by the person. Competencies: This field describes all the technologies, methodologies and professional knowledge that the job holder should be having. Experience: This field describes what professional, project, leadership and intercultural experience the employee should have.
Applications of Position Profile in Human Resource Management:
Recruitment Performance Management Process
Applications of Position Profile
Specifies duties of employee
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Recruitment: When the vacancy is created, and a requirement arises, the employer needs to figure out what all qualities and duties are needed in the employee to carry out the job effectively once he / she is hired. The employee is hired based on the required qualification and parameters specified by the employer. This makes it easy for the recruiter to shortlist the candidates and hire the perfect person for that particular position.
Performance Management Process: The duties listed and framed at the beginning in position profile are used as a source to see whether the employee is working as per the duties mentioned and matching all parameters of work allotted to the position. It is observed if the employee is working as per the attributes of his / her work or not. If he / she is not working as expected, then the problem is identified, and training is given as per the situation.
Specific Duties of Employees: Position profile defines the duties that he / she must follow once recruited. It also gives an idea to the applicant about the position he / she is hired for and the designation of the job.
Conclusion
Position profile is the best equipment for the HR department to recruit, retain, develop and train their employees so that they give their best output and help achieve their individual goals, as well as the organizational goals.
References
• https://www.humanresourcesmba.net/lists/5-reasons-hr-is-so-important-for-business- success/ • www.work.chron.com • https://work.chron.com/meaning-job-profile-8625.html • http://www.furstsearch.com/position-profile/ • https://en.wikipedia.org/wiki/Job_description • https://careertrend.com/info-8430283-difference-job-profile-job-description.html
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THE ICE BREAKER IN WORKPLACE : HUMOUR Krupa Shah Faculty Member Patuck - Gala College of Commerce & Management
Abstract
Sense of Humor is an important quality of leadership, especially with small staff association. People remember those who make them smile. The use of humor in a workplace as well as in an educational setup have shown significant impact on - performance, creativity and stress management. This paper illustrates how humor has helped the leaders build not only a congenial environment in the workplace but also has helped increase employee engagement, collaboration, cohesiveness and productivity. It also bridges the relationship among the people working in the organization.
Keywords : Humor, Leader, Workplace.
Introduction
In the modern world, with rapid transformation, enterprises are faced with a more complex management setting and cut-throat competition. A leader faces greater responsibilities in the survival and development of the organizations. Therefore, in any organization, the most important and influential person is its leader. He / she is in-charge of leading the whole team and deriving higher performance.
Research is beginning to catch up with practice regarding the benefits of humor at workplace. Coaches, consultants and HR practitioners are expanding their understanding of the use of humor by leaders, to impact employees and the workplace environment. Combing through studies on leadership and the use of positive humor, there is promising evidence that humor is uniquely able to touch on many key areas of employment engagement. Though many other foundational leadership tools remain important to improve employee engagement, the organizational performance using humor positively offers an added value, which can target essential components of employee engagement hence getting greater results for companies.
Humor at Workplace
McGraw and Warner cite a line worth remembering from the anthropologist Edward Hall: “If you can learn the humor of people and really control it, you know that you are also in control of nearly everything else.”
The workplace needs laughter. According to research from institutions as serious as Wharton, MIT, and London Business School, every chuckle or guffaw brings with it a host of business benefits. Laughter relieves stress and boredom, boosts engagement and well-being, and spurs not only creativity and collaboration but also analytic precision and productivity.
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Research results shows Humor boosts employee well-being, creativity, job satisfaction, and work performance. On an individual basis, humor mutes negative emotions and helps to tolerate pain. It also buffers stress. Within teams, humor enhances group communication, effectiveness and cohesion while reducing group conflict. And within cultures, humor fosters creativity and innovation and helps organizations bounce back from setbacks– staving off employee job burnout, stress and work withdrawal.
In other words, research suggests that humor is not just the best medicine, it is also a powerful tool for achieving business success. Further, using humor increases individual’s success within an organization. It raises perceptions of status and improves a job candidate’s chances of getting hired. A 1986 Hodge-Cronin and Associates' study of 737 CEOs showed that 98 percent of CEOs prefer job candidates with a sense of humor.
Humor is also a non-trivial factor in career advancement. The same survey showed that 84 percent of top executives perceived that employees with a sense of humor were better at their jobs than their less-humorous counterparts. Executives get rewarded for using humor too. In performance evaluations, subordinates rate funny bosses higher on other (non-humor related) qualities. Subordinates of bosses who use humor also report higher job satisfaction for themselves.
There are clear benefits of humor in the workplace: less burnout, higher probability of learning, more collaboration, faster recovery from stressful situations and an increase in overall work effectiveness. As a leader, if Humor is used in workplace, the chances to enhance these benefits increases.
How to Use Humor at Work
Researchers have learned that humor can help people recover from stressful situations. While there is no lack of stressful or political situations at work, there is a lack of solutions to stress. Build recreational areas into your workspace and organize fun events with the purpose of leveraging humor to buffer stress and increase morale, productivity and persistence.
Some examples of companies that have put this into practice in place are Zappos, Google, Bare Minerals, Yahoo and IBM. Add a humorous, company-related "Quote of the Month" feature in staff intranet or newsletter.
Paul Osincup, a speaker, consultant, and humorist, suggests that a leader should practice, the L.A.F.T.E.R. Model to add humor in the workplace:
• Lead by example • Ask for help • Fun over funny • Tell your story • Earn it • Rituals
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Lead by Example
Whether one is funny or not, if one is committed to incorporating humor at work, then one has to show it, and the easiest way is by not taking oneself too seriously. That means doing things like participating in those ridiculous team builders or even making fun of yourself on occasion! Bad hair day? Stain on your shirt? Rather than trying to cover it up all day, show it off! Once a supervisor spilled a thermos of coffee on his lap and rather than heading straight for the restroom, he stopped by the lobby where several employees were there and showed off his stupidity. Immediately, the employee who he knew the least and was typically very quiet, shook his head and said, “I told you to see a doctor about that!” which got everyone laughing. From then on, he seemed more at ease around the supervisor and their relationship felt more genuine.
Ask for Help
If humor is not one's cup of tea, there’s always someone who would love to take on the task! In fact, once the leader anoints them as the “Head of Humor,” “Queen of Comedy,” or whatever it needs to be called, then the leader probably will have a lot of ideas coming his / her way. In fact, the leader can even “Ask for help” with “Leading by example.” One executive who was not great at being funny, on the spot had a brilliant idea. He asked his colleague, who he was quite friendly with to tease him more often, in front of employees rather than when they were alone, so people could see that he was easy-going and could laugh at himself.
Fun over Funny
For most, trying too hard to be funny leads to more groans and eye rolls than laughs. If one wants to get people laughing, rather than trying to be funny, just get them to have fun. According Robert Provine, most people are thirty times more likely to laugh in groups than by ourselves (Psychology Today, 2016). The key is to engage people in activities where they can play and interact with one another, such as making a meal together, doing a service project, trivia, talent show, etc.
Tell Your Story
Bringing humor to work does not have to be a covert operation. A leader can gain more traction if he / she simply tells people the goal. The leader needs to make it know to all that he / she is attempting to make it a more fun place to work. This also shows people that the leader is trying to care about them. Tell the story to potential employees and customers, as well. Is fun or humor reflected in the company’s values? What about in advertising, Facebook pages, tweets, etc.? How about job descriptions? Along with technical skills, in job requirement the leader may also add that, the company is looking for someone with a “sense of humor” or who values a “fun and creative work environment.”
Earn It
A 2012 Bell Leadership Institute study found that when employees are asked to describe characteristics of leaders in their organizations, “work ethic” and “sense of humor” are
Insight Management Review December 2018 ISSN : 2277-5676 Page 27 mentioned twice as much as any other trait. Employees must see the leader as reliable first, then the tomfoolery will be accepted as a welcome reprieve rather than an annoying distraction.
Rituals
The leader cannot change the corporate culture with just a funny bulletin board or a ping- pong table. A company’s culture is defined by its rituals, which occur annually, monthly, weekly, and daily. An annual holiday party is great, but if that’s the only fun event all year, then it is in no way impacting the culture. Here are a few examples of rituals to get started:
• Annual: Holiday parties, service projects, run/walks, kickball game, awards banquet • Monthly/Seasonal: Funny employee of the month, making customers smile award, costume contests, potluck, trivia • Weekly: Monday Pun-day (add new pun to your office door/bulletin board), “Toesday” (encourage people to wear sandals in the summer), Team Tuesdays (always do a team builder on Tuesday mornings), Wacky Sock Wednesday, The Friday Funny (send out a funny video, talk, or article every Friday) • Daily: Make boring office signage funny, have a joke-a-day calendar, 3 p.m. dance party (everyone takes a three-minute break at 3 p.m. for the duration of one song chosen by a different employee each time)
Using humor to create a culture of fun is doable—just get rid of the “ugh” and add some L.A.F.T.E.R.!
Leaders and Humor
Most employees look up to their leaders - the leader sets the tone – they are looking to see how the leader reacts and handles especially difficult situations. Properly used humor can show your true leadership skills. Leaders with humor can build stronger cultures, unleash more creativity, and even negotiate better deals. "We hear from young leaders about the incredible pressure of being the face of their organization," says Aaker. "Many struggle because they hold onto the false dichotomy between bringing humor and taking work seriously. The right balance of gravity and levity gives power to both."
Organizationally, research shows, cultures that incorporate humor are more resilient. It is also helpful in times of stress because it releases oxytocin, which facilitates social bonding and increases trust. That social lubricant also makes it "a gateway drug to broader aspects of authenticity and vulnerability," says Bagdonas.
The reality is humor gives our brains a break — a break from worrying about what is next. It is also the closest connection between two people. When laughing, one is not worrying or focusing on what may or may not happen. At the moment - the mental moment helps one feel refreshed.
People fear humor in the workplace because of the common belief that, if one is laughing, then perhaps the employee is not learning or working. But, that is just not true. One can
Insight Management Review December 2018 ISSN : 2277-5676 Page 28 laugh and learn, and maybe learn even more because people are then more open and relaxed. It is a balance of focusing on what needs to be done and encouraging fun.
Humor as a Tool to Increase Power: "The Ladder"
Humor is a tool for gaining power. Researchers found that:
• humor is favorably linked to status and perceived confidence and competence. Even laughing in a certain way conveys status. • humor is a powerful tool in negotiations. • people with higher humor scores perceived potentially stressful events as more of a challenge. By contrast, those with lower humor scores saw those events as more of a threat. • the heightened emotion that humor evokes does not just make it easier for us to hit upon an insight one otherwise would not have, but, it also helps us remember the insight.
Humor as a Tool to Build Bonds: “The Bridge”
Humor also cultivates connections and can improve relationships– even helping strangers or colleagues can make one feel closer. The researchers in their various research concluded that:
• Laughter quickens self-disclosure. This suggests the act of laughing temporarily influences willingness to disclose personal information, which facilitates intimacy generation. • Humor increases resilience to stress in individuals and teams, and insulates them from negativity. • Pain tolerance increased by 10 percent for the funny clip viewers.
The Mayo Clinic explains it as below:
“Laughter enhances your intake of oxygen-rich air, stimulates your heart, lungs and muscles, and increases the endorphins that are released by your brain... Laughter fires up and then cools down your stress response, and it can increase your heart rate and blood pressure. The result? A good, relaxing feeling...Laughter can also stimulate circulation and aid muscle relaxation, both of which can help reduce some of the physical symptoms of stress.”
The benefits of humor and laughter build on themselves over time. Recalling moments of shared laughter makes people feel more satisfied with their relationships.
Conclusion
Instituting humor in the workplace does not necessarily require a lot of money, but it does reduce employee turnover and also boost their productivity. Humor consultant Mike Kerr suggests the following tips for adding humor to workplaces : a) have a staff meeting to address office morale and to brainstorm simple ways to create a more fun work environment
Insight Management Review December 2018 ISSN : 2277-5676 Page 29 b) ask people what they fear, about using humor in the workplace to discuss and deal with any potential roadblocks c) create a "humor-at-work team" to create simple initiatives to bring humor into the workplace on a consistent basis; for example, have specific "fun" goals per quarter d) establish a "humor-at-work-library" to encourage people to learn about humor e) post fun announcements, funny quotes, fun photos and fun "thoughts of the day" on a special bulletin board f) appoint rotating “corporate jesters” to spearhead fun activities and g) most importantly, give people explicit permission to have fun at work.
Consultants or managers leading such a change could employ the OHM (Organizational Humor Model) to select humor styles (affiliative, self-enhancing, aggressive, mild aggressive and self-defeating) that are congruent with particular change interventions and the composition of the firm. To create or maintain a fun culture, humor measures can be administered during the selection process to identify people who match the humor style preference of a team or the organization. This would likely result in consistent humor within the organization and lay the foundation for a unique culture.
"It has taken decades to figure out that comedy is vitally important – it can change the world because it connects human beings – it is authentic, it gets to the truth and it cuts through the noise. It recognizes shared pain and that all are fallible and humans. This is something all know businesses need." —Anne Libera, Second City Director, Teacher and Creative Executive
References
• https://hbr.org/2014/05/leading-with-humor • https://www.inc.com/leigh-buchanan/everyone-loves-a-funny-leader.html • https://www.forbes.com/sites/forbescoachescouncil/2018/08/10/lead-with-laughter- how-humor-can-positively-transform-a-work-enviroment/#55c82e325c94 • http://web.stanford.edu/~lradloff/inklingreviews/humor.html • https://www.lifehack.org/.../top-10-ways-to-lead-more-effectively-with-humor.html • https://www.academia.edu/25494354/Humor_- _A_Leadership_Tool_for_the_21st_Century • https://www.researchgate.net/publication/249929569_Humor_and_its_implications_f or_leadership_effectiveness • http://www.academicjournals.org/AJBM • https://rgandersen.wordpress.com/leadership-humor • https://edwardlowe.org/try-a-little-funny-business-humor-in-the-workplace/ • https://smallbusiness.chron.com/ways-add-humor-workplace-38915.html • https://study.com/academy/lesson/humor-in-the-workplace.html
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CODE OF CONDUCT IN THE INDIAN MEDIA INDUSTRY Shreya Chavarkar Associate Professor Maharshi Dayanand College of Commerce, Science and Arts
Abstract
The code of ethics in media was created by a suggestion from 1947 Hutchins Commission. They suggested that media vehicles had started to become more responsible for journalism and throughout they should be held accountable. The HRD function in the 'manufacturing sector', is often concerned with payroll, administrative work and mediating between the management and the worker. In “service sector companies”, the HRD function plays a more important role as the chief source of competitive advantages in these companies. The code of conduct policies includes conflicts of interest, material relationship, payments and gifting, purchase through suppliers, political contribution, fair market practices, insider information, financial accounting integrity, external communication, work ethics, personal contacts, healthy ad safety environment, insider trading, stock tipping, vigil mechanism and whistle blower, policy of quality and sexual harassment.
Keywords : HRD, Media Industry
Introduction
HRD plays an important role in almost all sectors of the economy. Human resources are considered as an 'asset' and also a source of competitive advantage in the service sector, while they are yet just another factor of production in the manufacturing sector.
The HRD function in the manufacturing sector is often concerned with payroll, administrative work and mediating between the management and the worker. While in the service sector companies, the HRD function plays a more important role as the chief source of competitive advantages in these companies. In service sector of finance, media and technology companies, the brand value is measured according to the level of intellectual capital which is a derivative of the contribution of the human resources in the company.
The service sector runs on human resources whereas the manufacturing sector uses the machines and equipments as the key aspect of production. As a matter of fact, in HRD, code of conduct should play a vital role.
The code of ethics in media was created by a suggestion from 1947 Hutchins Commission. They suggested that many media vehicles had started to become more responsible for journalism and throughout they should be held accountable. Code of conduct is a set of basic internal standards to be observed by all - directors, officers, employee, consultants, freelancer, interns, associates and any personnel working in any media company.
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Media Code of Conduct
It is a branch of philosophy concerned with actions that are morally permissible and those that are not. Media ethics assist media workers in determining what is right and how to choose the best from several alternatives.
Media code usually takes into account the following concepts:
• Safeguarding freedom of information • Freedom of access to information sources • Objectivity, accuracy, truthfulness or the non-misrepresentation of facts • Responsibility to the public, and its rights, interest. Responsibility to the nation, various social and religious communities, states, in order to maintain peace • The obligation to refrain from calumny, unfounded accusation, slander or violations of privacy • Integrity and independence • The right of reply and also of correction • Respect of professional confidentiality • Consideration for the cultural, social or ethnic codes of individual countries.
MacBride Report states that the adoption of code of ethics at the national level, and in some cases, at the regional level also. It is desirable, provided that such codes are prepared and adopted by the professionals themselves, that is, without government interference.
It is recommended that, the code of conduct of media industry aim at the following objectives:
• To protect the consumers, readers, listeners, viewers or the public in general • To protect and inspire the working journalist, broadcaster or the others directly concerned with the gathering, writing, processing and presenting of news and opinions • To guide editors and others who take full legal responsibility for what is published and broadcasted • To define the responsibility of proprietors, shareholders and government, who are in a position of absolute control over any particular form of mass media communication activity • To deal with the issues of advertisers and others who buy the services of the media
The primary function of any media is to communicate to the human race, what its members do, feel and think. Media therefore, demands of its practitioners, the widest range of intelligence or knowledge and experience, as well as natural and trained powers of observing and reasoning.
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Policy Code of Conduct
• Conflicts of interest: All business decisions and all business activities must be conducted in the best interest of the company. • Consensual relationship: The intent of the policy is to suggest a process to be followed within the media companies in case employees / consultants decide to get into or are already into a consensual relationship. • Payment and gifting: It is strictly prohibited to make any payment to individuals employed in current or prospective media company. • Purchase through suppliers: Purchase decisions must be made purely on the basis of quality, service, price, delivery, best value or other similar factors. • Political contribution: Employee shall not make any contribution of company funds to any political party or committee, domestic or foreign or to any candidate or holder of any office of any government – national, state, local or foreign, unless it is legally permissible and is appropriately authorized. • Fair market practices: The media company believes that the welfare of consumers is best served by economic competition. Media companies are committed to the maintenance of an efficient, free and competitive market structure. • Inside information: Employees usually have ‘non-public’ information about the media company; such information is termed as inside information. • Financial accounting integrity: Generally, company maintains accurate and complete corporate records. Transaction between company and outside individuals and organizations must be promptly and accurately entered in the books of accounts which are as per the standard accounting principles • External communication: The media company should believe in open communication which gives the platform of media and social media to do anything that would bring about integrity and credibility. • Work ethics: Inter personal relations based on the values of respects, harmony and mutual development are the key to successful implementation of a code of ethics. • Personal conduct: Employees are expected to ensure that their conduct at all times, in official as well as personal capacity is such that the company’s reputation is always upheld. • Healthy and safe environment: Safety of persons override all other things. Proper healthy measures should be implemented in all aspects of the working environment. • Insider trading and stock tipping: This policy comprehensively sets out the manner of dealing, regulating and monitoring the unpublished price sensitive information and reporting of trading by insiders. • Vigil mechanism and whistle blower: The vigil mechanism and whistle- blower policy set out the procedure to be followed when making a disclosure. • Policy in quality: Company is committed to total customer satisfaction in terms of quality and services for the entire range of our products and services. • Sexual harassment: It refers to conduct which is offensive to any women working in a media company, which harms the morale, and which interferes with the accomplishment of organization mission.
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Employees are required to report actual or suspected violations of applicable laws and regulations and the code of conduct, and the organization has an obligation to ensure that there is a procedure in place to enable the reporting of such violations. Nothing is more important for a company than to make sure that what they do is what is right –and nothing puts it at a risk of failure to do it. The company must focus on the most important principles and expectations rather than just specifying detailed rules.
Conclusion
Having a code of conduct in work place provides staff with clear standards and expectations of how to do their jobs. A well written code of conduct clarifies an organization mission, values and principles, linking them with standard of professional conduct. It is a benchmark against which individual and organization performance can be measured.
Human resource is not merely treated as factor of production like land, labour, capital and organization, but in fact they are a source of competitive advantage to the company. Code of conduct is a way to achieve this goal of an organization and that has resulted in nowadays the top management calling their employees as 'chief asset' and valuing their contributions accordingly.
References • M. Sathe; A. Markale, D. Mandalik, A.Joshi, A. Khare, ‘Service Management : Call For The Future; Himalaya Publishing House Pvt. Ltd.; November 2010 • S. Hasan; 'Mass Communication Principles and Concepts'; CBS Publishers & Distributors Pvt. Ltd.; 2016 • Manuals of Code of Conduct.
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CREDIT APPRAISAL – A PROCESS REVIEW Rajni Ranjan Assistant Professor Bharati Vidyapeeth Institute of Management And Research
Abstract
As a growing economy, the Indian credit market needs to be robust. With the ever increasing demand, it is important to study what is a credit appraisal process and what are the factors that are involved in the loan sanctioning process. This paper fundamentally uncovers the credit appraisal process. Also, the analysis of various ratios during the calculation of a loan has been explained in order to understand better the credit appraisal process.
Keywords : Credit appraisal, FOIR, INSR
Introduction
Housing is one of the basic needs of every individual as besides providing shelter and security, it also enables easy access to the credit market by working as collateral comfort / security. The urban population of India has been growing at a rapid pace. As per the Census 2011 report, 31.16 per cent of the total population is in the urban areas. According to FICCI’s report (October 2011), 900 million people will be added to Indian cities by 2050. With the growing population of India, increasing nuclear family structure and urbanization the demand of home is also ever increasing. Housing also plays an important role in terms of the multiplier effect it has on the economy due to its strong backward and forward linkages with various industries and as a direct and indirect employment generator. In pursuance of the National Housing Policy of the Central Government, the Reserve Bank of India has been facilitating the flow of credit to housing sector. Since housing has emerged as one of the sectors attracting a large quantum of bank finance, the current focus of RBI's regulation is to ensure orderly growth of housing loan portfolios of banks. A resident or non-resident individual who is planning to buy a house in India can apply for a home loan at the banks or at Housing Finance Institutions. Once the maximum amount to put into the property has been decided, the Housing Finance Institutions or banks will let the customer know the amount he / she is eligible for and this can help to plan out the budget. In order to get the housing loan, the customer has to go through a Credit Appraisal process.
Each bank / Housing Finance Company (HFC) has its own norms and standards to evaluate the borrower’s ability to repay the loan and the credit worthiness of the customer to be eligible for loan application. During this whole process, the loan eligibility and the repayment capacity of the borrower are established on the basis of his / her disposable income, stability and continuity of income, age, educational qualifications, number of dependents, co-applicant’s income, employer, nature of employment or business (if self- employed), experience, securities proposed, taxation history, assets owned, alternative / additional sources of income, other loan obligations, investments, saving habits and other present and future liabilities. A prospective borrower has to go through the various stages
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(i.e. Financial, Legal, Technical, etc.) of credit appraisal process as practiced by different banks / HFCs. This study mainly focuses on the guidelines followed by non-banking financial companies in India regarding the appraisal process of housing loans with specific reference to Indiabulls Housing Finance Limited.
Objectives of The Study
• To understand various factors required to be considered in order to calculate loan eligibility and to calculate EMI of loan by considering monthly obligations of applicants. • To understand how to calculate three important ratios in home loans i.e. FOIR, INSR and LTV.
Credit Appraisal Process
Credit Appraisal Process is a process of appraising the credit worthiness of an applicant who has applied for a loan. To gauge the credibility of the borrower, the applicant/s sources of income, age, experience, number of dependents, repayment capacity, past and existing loans, nature of employment and other assets are taken into account. Every bank or a lending institution has its own internal norms and procedures for underwriting the loan and scrutinising the applicant's details and credentials.
There are basically five Cs of a credit appraisal process which include : Character, Capital, Capacity, Conditions and Collaterals.
Character basically includes checking the qualitative factors such as the degree of honesty by cross-checking the facts presented by the borrower. For instance, if an applicant has hopped his / her job twice in a year, the reason for switching the job will be verified from the previous and present employers and to verify if the applicant has not concealed any information per se.
Capital is a critical criterion to ascertain the amount of loan the applicant is worthy of. Strong capital reflects the applicant's resilience to withstand ups and downs of the market lending rates. It builds the lender's faith in the applicant's repayment capacity.
Capacity of the loan borrower is decided through his annual income. The Fixed Obligation to Income Ratio (FOIR) is one of the tools that helps link one's potential for the home loan and the amount that is needed to be set aside for one's daily expenses and contingencies. Multiple existing obligations decrease the chances of getting a new loan.
Conditions are all about the basis on which the loan is processed. Banks offer loans taking into account the prevailing market conditions, industry status, company, interest rate movements, inflation, price fluctuations among other things. Thus, strong and positive industry growth and economic conditions are indicators of the applicant's ability to generate revenue and repay the debt.
Collateral is a security against which a loan is availed. If the borrower is unable to repay the debt, the lender depends on the strength and saleability of the security. In case of a home
Insight Management Review December 2018 ISSN : 2277-5676 Page 36 loan, the property for which the loan is sought is the collateral. A vigorous study and examination of the collateral through legal and technical evaluation techniques is imperative to sanctioning a loan.
Process i) Receipt of loan application form from the applicant The first and very important step involved in credit appraisal process of home loans is client acquisition. The sales team plays an important role in this step. Here the sales person tries to make as many clients as possible to take home loan from the company. Following which the applicant applies for loan by filling the loan application form and provides the necessary KYC documents (i.e Aadhaar and PAN card), minimum three months salary slip, six months bank statement of applicant, ITR or Form 16 for the past two years, appointment letter if the experience with current employer is less than a year, CIBIL report and other required documents. These are collected by sales representative from the applicant. In e-login cases, these documents are uploaded onto the system, whereas in physical file cases these documents are properly filed and further submitted to credit team. ii) Pre-sanction visit by loan underwriter This includes visit to the workplace or the residence of the loan applicant by the loan underwriter. This visit is done in order to verify if the residential and employer information provided by applicant is true. This visit plays an important role in the complicated or untrue cases. iii) CIBIL check A credit history is basically a record of an individual's or company's past borrowings, repayments of loans, credit card and other bill payment history which includes information about late payments and also bankruptcy instances if any. There is a central database available with the Credit Information Bureau (India) Limited [CIBIL] which collects and maintains records of an individual’s payments pertaining to loans and credit cards. These records are submitted to CIBIL by member banks and credit institutions, on a monthly basis. The CIBIL Trans-union Score is a three-digit numeric summary of a person’s credit history which indicates applicant’s financial and credit health. The score is derived from the credit history as detailed in the Credit Information Report [CIR] and ranges between 300 to 900 points. Credit score tells the lender how likely the applicant is to pay back the loan or credit card dues based on the past repayment behaviour. The higher the score, the more is the chance of the application getting approved. Before approving a loan, the financial institution always checks with CIBIL on the applicant’s repayment track record. And in case the applicant is an NRI, then the Trans-union CIBIL and credit report of that particular country where applicant is residing is sought. iv) Legal verification Legal appraisal of the property requires the borrower to submit sale deeds, development agreement, khata certificates, encumbrance certificate and other property related papers. Then these papers are handed over to lawyers who verify if the borrower is the absolute owner of the property that needs to be financed. Subsequently, validation of succession of title from earlier owners to the present one is done.
Insight Management Review December 2018 ISSN : 2277-5676 Page 37 v) Technical verification The technical verification is also an integral part of the credit appraisal process. In this, the validity for approvals for construction of the house from local government bodies is verified. Compliance with building laws, like restrictions on the number of floors or height of the building, is also verified and the property to be financed is valuated and its condition is checked. Technical appraisal judges if the property to be financed is viable. In this step market valuation of property is appraised with the help of empanelled engineers. vi) Financial analysis An important part of credit appraisal is financial analysis, where the applicant's financial position is reviewed. Past repayment records including defaulting, late payments, delinquencies and bankruptcies, earnings potential (including that of the spouse, if any), outstanding debt if any, assets, liabilities and stability of income comes under scrutiny. Those earning high salaries and carrying a professional degree with a bright growth potential can definitely strike a great bargain. Financial stability of the borrower and the co-borrower is an important factor not only for credit appraisal but also for increasing applicants’ creditworthiness. Usually an HFC or bank, sets a fixed upper limit for the amount of money that can be sanctioned for a particular type of loan. Depending on the creditworthiness of a customer, the amount of money sanctioned to the applicant can be increased to a certain degree. Age is another factor that can also impact how much amount will be sanctioned and it indicates the borrower’s repayment capacity. Age also matters when the tenure is quite long. Financial analysis is done using ratio analysis and the preparation of a Credit Assessment Memorandum (CAM). vii) Evaluation of CAM Evaluation of CAM is done by risk team using financial modelling and risk assessment tools and techniques. viii) Approval of CAM Once the evaluation of CAM is done, sanction authority approves CAM and the loan is sanctioned. ix) Post sanction documentation Once the loan gets sanctioned through the sanctioning authority, the next step is the formal documentation of all documents including the sanction letter and ensuring the fulfilment of all sanction conditions which are added by the sanction and credit authority in the loan proposal. x) Disbursement of the loan The lender disburses the loan amount either partly or fully to the borrower. xi) Post-disbursement activities It involves credit monitoring, review and renewal of accounts, generation of new technical reports and valuation reports in case of construction loans.
Analysis of a Home Loan Application
Calculation of age of applicant and co-applicant
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If the current age of applicant is 40 years, as per company policy maximum age of all applicants whose income is considered for loan eligibility must be maximum 65 years. In this case if the applicant wants loan of a duration of 30 years then since the current age is 40 years, the loan tenure will be restricted to a maximum of 25 years duration.
Components of gross and net salary in INR
Basic: 47780 HRA: 16000 Conveyance: 1600 Flat Allowance: 45145 Others: 3900 Retro shift allowance avg. of 7 months: 1022
Gross monthly salary appraised: 115000
PF: 5700 PT: 200
Net Monthly salary appraised: 109000
Calculation of all monthly obligations in INR
All obligations = EMI of HL + EMI of Property Loan (Insurance) = 30625 + 1866 = 32491
Calculation of eligible loan amount in INR
Eligible loan amount = ((Appraised total income * Eligible FOIR) – All monthly repayment obligations) / PMT((ROI / 12, TENURE,-1)
Eligible loan amount= ((115000 * 55%) – 32491)/ PMT(8.35 % / 12,25,-1) =Rs. 3900000
Calculation of EMI of loan in INR
EMI = (Loan amount * (ROI/12) * (1+ (ROI/12))^N )/ (1 + (ROI/12))^(N-1) = (5800000 * (8.35%/12) * (1+ (8.35%/12)^12)/ (1+ (8.35%/12))^(12-1) = Rs. 40639
FOIR & INSR in INR
FOIR = (EMI of IBHFL + Other monthly obligations)/Gross monthly income = (40639 + 32491) / 115000 = 63.51 %
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As the gross salary is Rs.1.15 lacs i.e., more than Rs.50000, the eligible FOIR is 55 % hence there is deviation of 8.59 % hence approval of BCM is required.
INSR = (EMI of IBHFL + Other Monthly obligations) / Net Monthly Income = (40639 + 32491) / 109000 = 67.92 %
INSR is calculated based on the net monthly salary of applicant. Here, since INSR is less than 70 %, it is within the applicable norms. For a salaried applicant, the INSR should not be more than 70 %.
Loan to Value Ratio in INR
LTV = Loan Amount / Property Cost = 5800000 / 8200000 =70.73 %
The maximum loan to value ratio should be less than 85 % and the remaining 15 % amount should be arranged by the applicant. Property cost includes agreement value of property, stamp duty charges, registration charges etc.
But there are some approved projects of Indiabulls such as XRBIA where LTV is allowed to be more than 95 % (sometimes even 99 % funding is done through loan)
Calculation of IIR (Instalment To Income Ratio) in INR
IIR = EMI / Gross Monthly Income = 40639 / 115000 = 35.09 %
The IIR should be in the range of 25-35 %. At no point in time, the ratio should exceed the limit of 35 %, except in self-employed cases, where it may be acceptable up to 45 %. However, in cases where the spouse is also working, and his / her income is also considered, the gross IIR can then be more than 35 % since the repayment up to 60 % is allowed in respect of spouse.
Calculating principal and interest amount on a home loan in INR
Interest = (Interest rate / no. of payments) * Loan Principal = (8.35 % / 12)*5800000 = Rs.40358
Principal = EMI –Interest = 40639-40358 = Rs.281
The calculation shows that the first EMI of the home loan will consist of around 99 percent of interest amount and only 1 percent of the principal amount of the loan. This shows in the
Insight Management Review December 2018 ISSN : 2277-5676 Page 40 initial years, company tries to recover more and more interest on the amount lent and then in the later years, it begins to recover the principal amount of the loan. After payment of one EMI a new balance is calculated as,
New Balance of Loan amount = Loan amount – EMI Paid + Interest = 5800000-40639+40358 = Rs. 5799719 Which indicates that out of the total loan amount, only a sum of Rs. 281 is deducted from the original loan amount and the rest of the amount was interest earned by the lending company.
Hence, a heavy interest will be recovered in the initial years while the principal recovered will be low, whereas in last few years the reverse, as in, heavy principal amount will be recovered.
Through the data analysis one observes that age of applicant and co-applicant is one of the important factors to be considered at the time of calculating loan eligibility. Maximum age of applicant at time of loan maturity should not exceed 65 years and 70 years only in case the pension income is considered. If income of co-applicant is also considered, then maximum age of co-applicant at loan maturity should also be 65 years. If the income is considered of the co-applicant in ownership of home, then maximum age of co-applicant may be 75 years at loan maturity. If co-applicant’s income is not considered and co-applicant is not on loan structure as well, then the maximum age of co-applicant can be considered up to 85 years.
Minimum gross salary of applicant should be Rs.15000. If salary of both applicant and co- applicant is considered, then minimum gross salary of applicant needs be Rs.10000 and there should be statutory deduction of at least the Professional tax from the salary. In case of future pension income, 50 percent of the basic salary and DA can be considered for loan eligibility. In case of consideration of rental income or bonus, incentives or any other loan, it should be 50 percent of the original amount.
Conclusion
All Days Past Dues (DPDs), overdue, post settlements in credit cards or any other loans are required to be mentioned in loan proposal and are considered to be concern while sanctioning of loan. FOIR and INSR are two important ratios in credit appraisal process and which should necessarily be within the norms. If FOIR and INSR exceeds their limit, then approval from higher authority is required. Maximum INSR allowed to be in salaried cases is 70 percent. LTV must also be as per norms of policy. LTV should be maximum 85 percent, in case of approved projects of IBHFL. In case of subvention schemes up to 90 percent is allowed and in some projects like XRBIA, maximum LTV can be up to 95 percent. Income to Instalment Ratio should be in the range of 25 -35 percent in salaried cases. All mitigates, concerns and deviations must be marked properly while forwarding loan proposal to higher authority for approval. All sanction conditions must be marked properly, which should be fulfilled at the time of disbursement.
It should always be kept in mind that taking too many loans would restrict a customer’s credit worthiness. Also maintaining credit score in good shape and good and steady repayments, keeps one out of debt traps and will enhance the applicant’s credit worthiness in future.
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Credit appraisal assumes significance since the total recovery is dependent on an efficient and financially viable credit appraisal. Therefore, a good credit appraisal is a pre-requisite to a good recovery position of any lending institution. In retail housing finance sector, there are two issues to be addressed that is, what to appraise and why to appraise. Therefore, the lenders appraise a person for his / her ability, inclination and willingness to pay. On the other hand, inclination / willingness to pay is a subjective assessment, which would depend upon the risk perception of the appraising officer. This factor cannot be quantified in terms of ratio, but the appraising officer should exercise his / her discretion here. The appraising officer has to satisfy that there would not be any problem in the recovery of the loan that is being advanced to the individual. It has to be ensured that an applicant gets the appropriate loan amount he / she is eligible for. At the same time, it has to be ascertained that the applicant is not borrowing from any other source because otherwise, the repayment might have some problem owing to the repayment to two or more parties at the same time.
References
• Karnad R.S., “Housing Finance in India: An Overview”, Housing Finance International Journal (IUHF).September 2010, Pages 42-47 • Indian Mortgage Finance Market update for H1, FY 2014, Performance Review of Housing Finance Companies and Industry Outlook, ICRA Rating Feature, January 2014 • Policy of IBHFL • Annual reports of IBHFL • NHB-report on trend and progress in housing • NHB guidelines • www.hfc.com • www.ibhfl.com • http://shodhganga.inflibnet.ac.in
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EMPLOYMENT GENERATION AND POVERTY ALLEVIATION IN INDIA - CHALLENGES AND OPPORTUNITIES Dr. Caroline David HoD, Economics & FC D. T. S. S. College of Commerce
Abstract
Poverty reduction has been an important goal of development policy since the inception of planning in India. Various anti-poverty, employment generation and basic services programmes have been in operation for decades in India. Anti-poverty strategy has three broad components : promotion of economic growth, promotion of human development and targeted programmes of poverty alleviation to address the multi-dimensional nature of poverty. The various programmes targeted at the poor have been streamlined and strengthened in recent years, including through the NREGS.
Keywords : Poverty, Employment
Introduction
Employment generation has been one of the important objectives of development planning in India. The problem of employment is closely interlinked with the eradication of poverty. There are three main aspects of the employment problem in India. There is low rate of labour in India. Low rate of employment among women is a striking feature in India. There has almost been no change in LFPR (Labour Force Participation Rate). The dependency rate is quite high in India. Problem of unemployment and underemployment is the chronic feature of the Indian economy. It is the main cause of poverty in India. Unemployment in India is mostly structural. The rate of unemployment is different in different states. Sector wise unemployment in India is rural and urban unemployment. Urban unemployment is of two types, namely, industrial unemployment and educated unemployment. Rural unemployment is more than 70 percent as rural population is more than 70 percent of the total population in India. There are various types of unemployment in India. They are seasonal, structural, frictional, technological, involuntary and disguised.
The productivity criterion refers to disguised unemployment. It is mainly found in agriculture. It is a kind of underemployment. It involves both zero marginal productivity of man hour and zero marginal productivity of labour. It implies too many persons on too little land. Educated unemployment is one variant of open unemployment. It is mainly due to the defective educational system. Underemployment is one variant of open unemployment. It is mainly due to the defective educational system. Underemployment may be visible or invisible. The ratio between unemployed workers and total labour force is called the unemployment rate. Low productivity of employment is the third aspect of the employment problem. Productivity of labour in India is low due to many factors. There have been various schemes to solve the problem of educated unemployment.
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Anti-Poverty, Employment Generation And Basic Services Programmes
Pradhan Mantri Gram Sadak Yojana (PMGSY) Launched in December 2000 as a 100 per cent Centrally Sponsored Scheme, PMGSY aims to provide all-weather connectivity to all the eligible unconnected rural habitations. Bharat Nirman, envisages connectivity by 2009 to all the habitations with a population of 1000 or more in the plains, and of 500 or more in the hilly, desert and tribal areas. The systematic upgradation of the existing rural road network also is an integral component of the scheme, funded mainly from the accruals of diesel cess in the Central Road Fund, with support of the multilateral funding agencies and the domestic financial institutions. Up to December 2005, with an expenditure of Rs.12,049 crore, a total length of 82,718 km. of road works had been completed.
Indira Awaas Yojana (IAY) IAY aims to provide dwelling units, free of cost, to the Scheduled Castes (SCs), Scheduled Tribes (STs), and freed bonded labourers, and also the non-SC/ST and BPL families in rural areas. It is funded on a cost- sharing basis in the rates of 75:25 between the Centre and the States. Under IAY, the ceiling on construction assistance is Rs.25,000/- per unit in the plains and Rs.27,500/- for hilly / difficult areas; and Rs. 12,500/- on upgradation of unserviceable kutcha house to pucca / semi pucca house for all areas. Up to January 30, 2006, about 138 lakh houses had been constructed / upgraded with an expenditure of Rs.25,208 crore.
Swarnjayanti Gram Swarozgar Yojana (SGSY) SGSY, launched in April 1999 after restructuring the Integrated Rural Development Programme and allied schemes, is the only self-employment programme for the rural poor. The objective is to bring the self-employed above the poverty line by providing them income- generating assets through bank credit and Government subsidy. Up to November 2005, the Centre and States, sharing the costs on 75:25 basis, had allocated Rs.8,067 crore, of which Rs. 6,980 crores had been utilized to assist 62.75 lakh self-employed.
Swarna Jayanti Shahari Rozgar Yojana (SJSRY) In December 1997, the Urban Self-Employment Programme (USEP) and the Urban Wage Employment Programme (UWEP), which are the two special components of the SJSRY, substituted for various programmes operated earlier for urban poverty alleviation. The SJSRY is funded on a 75:25 basis between the Centre and the States.
Valmiki Ambedkar Awas Yojana (VAMBAY) VAMBAY, launched in December 2001, facilitates the construction and up-gradation of dwelling units for the slum dwellers, and provides a healthy and enabling urban environment through community toilets under Nirmal Bharat Abhiyan, a component of the Scheme. The Central Government provides a subsidy of 50 per cent, with the balance provided by the State Government.
The Employment Scenario
Indian economic development under different plan periods, the rate of growth of output has never been integrated with the rate of growth of employment. Accelerated economic growth has always been found to be favourite with the Indian planners. From the very first plan this
Insight Management Review December 2018 ISSN : 2277-5676 Page 44 concept of economic growth was very much interlinked with the increase in the employment opportunity, reduction of income inequality and poverty, though there was an initial debate whether reduction of income inequality was conducive to growth or not. It was posed that reduction in income inequality would retard savings and hence capital formation in the LDCs, which would further slacken economic growth.
Table 1: Growth Rate of GDP & Employment during the Planning Periods
Plans Annual GDP Growth Rate Growth of (at constant price) Employment First Plan (1951-56) 3.7 0.39 Second Plan (1956-61) 4.2 0.87 Third Plan (1961-66) -3.8 2.03 Fourth Plan (1969-74) 3.4 1.99 Fifth Plan (1974-78) 5.0 1.84 Sixth Plan (1980-85) 5.5 1.89 Seventh Plan (1985-90) 3.6 1.26 Eight Plan (1991-96) 6.7 1.86 Ninth Plan (1997-2002) 7.7 1.14 Tenth Plan (2002-2007) 7.2 1.23 Eleven Plan (2007 -2012) 7.5 1.82 Twelve Plan (2012 -2016) 7.8 1.96
Growth of Employment By Sector
The employment generation in sartorial base i.e., primary, secondary and tertiary sectors. It is found that in pre-reform and reform period the attitude of employment opportunity is in increasing trend. Following table indicate the growth of employment in sartorial base:
Table 2: Economic Sectors and Employment Generation
Economic Employment Generated in Million Sector 1983 1993 2000 2010 2017 Primary Sector 208.99 245.16 239.83 228.43 242.43 Secondary sector 41.66 55.53 66.91 78.12 98.12 Tertiary sector 52.11 73.76 90.26 108.35 146.41 Source: Compiled and computed from the data provided by the Planning Commission Report
Unemployment Rate- Urban And Rural Differences
As against an unemployment rate of 10.3 per cent in 1977 in urban areas, the rural unemployment rate was 7.7 per cent. There was a significant fall in the rural unemployment rate in 1990 to 5.3 per cent, but the urban unemployment rate was of the order of 9.4 per cent, significantly higher because Indian economy was in severe economic crisis. After the period of reform, rural unemployment rate again increased to 7.2 per cent in the year 2000 and again 8.1 per cent in 2010 while urban unemployment also marginally increased to 7.7 per cent in the year 2000 and again decreased to 7.9 per cent in 2010 but in 2017 in urban area increased
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Period Rural Urban Areas Areas 1977 7.7 10.3 1990 5.3 9.4 2000 7.2 8.1 2010 7.7 7.9 2017 8.3 9.5
Remedial Measures
• Employment generation should be the single most important criteria for investment policy, although profits and technological updating is also to be given due weightage. • Constitutional obligation ensuring “Right to Work” should be the function of economic planning. • Rising of the domestic savings and generation of the domestic resources for investment is crucial. Foreign investment could be used as a supplement provided, “it goes where we want and not where it wants to go”. • There is need to rethink and reformulate economic policies. The private sector has to be more humane and the public sector more cost efficient. The operation of the market mechanism in a labour surplus economy shall hardly be able to humanize the private sector.
Challenges of Employment Generation
Illiteracy : Illiteracy plays a vital role in unemployment specially in under-developed countries like India. People even now after 70 years of independence, are unaware about the schemes the Government is running for the employment generation. Reservation / Quota : India is a democratic country so here every Government provides the benefits like employment and other employment related benefits to the caste. Role of Private Companies : Private companies play a vital role in the employment generation in any country. But, in India, private companies are not functioning properly because of Government.
Opportunities in Employment Generation
Huge work force : India is the second largest country in the world in population after China, it means we have ample of work force and if this work force can be utilized appropriately, India can be on top of the list. This huge work force is attracting the developed countries for the hiring, outsourcing and for third party work. Only the Indian Government needs to train this work force according to the demand, and also the technology and advancement of the third world countries.
Transparency in the system : In India, at present the Government understands that the people are gradually becoming technology savvy and they are adopting new technology efficiently,
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Liberalization in Exchange Policies: The Government has liberalized the exchange and regulation policies which makes it easy to enter in the Indian market for investment up to 100 percent in many sectors. This is an indirect factor which will affect the employment factor from the development point of view.
References
• Anker, Richard, Chernyshev I, Egger P, Mehran F and Pitter, J.A. 2003., ‘Measuring decent work with statistical indicators’ in “International Labour Review”, Vol 142, No. 2, (Geneva, ILO). • Bhat, A K. 1994. ‘Dangerous Work’ in “The Hindu Survey of Environment-The Hindu Group of Publications”, Chennai. • Bhattacharjee, Aditya. 2006, ‘Labour market regulation and industrial, performance: A critical review of empirical evidence’ in “The Indian Journal of Labour Economics”, Vol. 49, No.2, April-June. (New Delhi, Indian Society of Labour Economics (ISLE)). • Bescond, D, Chataignier A and Mehran, F. 2003. ‘Seven indicators to measure decent work’ in “International Labour Review”, Vol 142, No. 2 (Geneva, ILO). • K. K. Bagchi, (2007), ‘Employment and Poverty Alleviation Programmes in India’, “Abhijeet Publications”, Delhi. • N.N. Ojha (2006), ‘Problems of Unemployment in India’, “A division of Chronicle Publication Pvt. Ltd.”, New Delhi. • Government of India-Ministry of Human Resource Development (GOI-MoHRD). 2007. Selected Educational Statistics 2004-2005. (New Delhi).
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ROLE AND FINANCIAL PERFORMANCE OF MAHARASHTRA GRAMIN BANK (MGB) IN THE INDIAN AGRICULTURE AND NON-AGRICULTURE SECTOR Dr. Pallav Das Research Scholar (Ph. D.) Dravidian University
Abstract
Banks play an important role in the economic development of a country. They are the lifeblood of modern commerce and have control over a large part of money supply. The profitability of a bank denotes the efficiency with which a bank deploys its total resources to optimize its net profits and thus serve as an index to the degree of asset utilization and managerial effectiveness. At present, the Indian banking system faces several difficult challenges. In such a scenario, the present study is an attempt to measure the financial performance of Maharashtra Gramin Bank credit deposit ratio, in the priority sector and non- priority sector.
Keywords : Gramin Bank, Priority Sector
Introduction
The Indian banking sector consists of commercial and cooperative banks. The role of both the types of banks is very significant in Indian agriculture. Cooperative banks were considered as the major force of credit flow to agriculture, but with time commercial banks too have come forward to extend credit to agriculture. The share of commercial banks providing credit to agriculture has increased from 52 percent in 2000-01 to 68 percent in 2017-18. But as per RBI’s estimation, commercial banks are still far behind in achieving their target of providing 18 percent of the total credit to agriculture and allied sectors. Banks are diversifying their role in the agriculture sector in order to get revenue through their significant contribution to agriculture. Some of the new role that banks have adopted are marketing, training and consultancy and insurance and financing for infrastructure via private public participation. Banks are a fundamental component of the financial system and are also active players in financial markets. Economic development is a dynamic and continuous process which highly depends upon the extent of mobilization of resources, investment and operational efficiency of various segments i.e., trade, industrial development and agriculture of the economy. Thus, in a modern economy like India, banks have become a part and parcel of all economic activities. Banks play a significant role in the economic development of all the nations of the world. In fact, banking is the lifeblood of modern commerce. From its original narrow scope and modest purpose of taking care of other people’s money and lending a part of it, banking has developed to such an extent that, in countries like England, France and the USA, there is hardly a business deal without the assistance of a bank in one form or another. A financial analysis can be performed by analysts who work for the firm or by outsiders like investors, creditors, lenders, suppliers, customers, security analysts, academicians, researchers, environmental protection organizations, special interest lobbying groups, government and other regulatory bodies.
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Maharashtra Gramin Bank
Maharashtra Gramin Bank is an Indian Regional Rural Bank (RRB) or Gramin bank, in the State of Maharashtra with its head office in Aurangabad. It is one of the fifty-six Gramin banks in India supported by the government, that aim to bring banking services to rural areas. As of March 31, 2016 the Bank had 391 fully computerised CBS (Core Banking System) branches. Its branch network is concentrated in six regions of Maharashtra, namely, Aurangabad, Beed, Latur, Nanded, Parbhani and Thane.
The Government of India vide its notification dated March 25, 2008 amalgamated the two RRBs i.e. Aurangabad Jalna Gramin Bank and Thane Gramin Bank into a single RRB named Maharashtra Godavari Gramin Bank. As per notification issued by Government of India, Ministry of Finance, Department of Financial Services ref. no. F.No 1/4/2006-RRB(II) dated July 20, 2009, Maharashtra Gramin Bank came into existence, after amalgamation of erstwhile Maharashtra Godavari Gramin Bank and Marathawada Gramin Bank. As per Government of India, Ministry of Finance order no. F1/4/2012-RRB, dated July 17, 2014, the Bank was sponsored by Bank of Maharashtra.
During the administrative setup of the bank, one Chief General Manager and two General Managers reported to the Chairman. The RRBs were established in India under RRB Act 1976 [23(1)]. During the period from 1976 to 2006, the Indian banking industry had undergone various changes and RRBs were no exception. Considering the need for structural changes in RRBs in view of dynamically changing economic scenario, the Government of India vide its notification dt. 25.03.2008 amalgamated the two RRBs i.e. Aurangabad Jalna Gramin Bank & Thane Gramin Bank into a single RRB named Maharashtra Godavari Gramin Bank. The share capital of the Bank is contributed by Government of India, Government of Maharashtra and Bank of Maharashtra in proportion of 50:15:35.
Review of Literature
Haque and Verma (1988) found the domination of private agencies including agriculture and professional money lenders in the agriculture credit market in many regions. Moreover, the highly skewed distribution of institutional credit in favour of relative progressive regions and better off section of agriculture population was likely to generate strong backwash effects, thereby retarding the overall pace of agriculture development. Their concluding remarks suggested a need of more egalitarian credit plan to be made and maintained for rapid and balanced agriculture development of the country.
Jadhav and Ajit (1996) analyzed the role of bank in economic development of India during the previous five decades. It was observed that despite the overall progress made by banking system in terms of functional and geographical coverage, doubts arose about the viability of the banking system for the later years. Though financial sector reforms have enabled banks in India to clear their balance sheets and improve their functioning, yet they face challenges especially in providing financial services like leasing, merchant banking, mutual funds, money market and government securities.
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Bhattacharya (1997) had found PSBs with the highest efficiency among the three categories of bank groups and foreign and private sector banks have much lower efficiencies. However, PSBs started showing a decline in efficiency after 1987, private banks witnessed no change, but foreign banks disclosed sharp rise in efficiency.
Muniappan (2002) studied the paradigm shift in banks from a regulator point of view. The paper concluded the positive effect of banking sector reforms on the performance of banks and also suggested many effective measures to strengthen the Indian banking system. The reduction of NPAs, more provisions for standards of the banks, IT and sound capital base were the positive measures for a paradigm shift. A regulatory change was required in the Indian banking system.
Sahu and Rajasekhar (2005) revealed that agriculture is a risky activity where farmers face shocks to their income, even though it appears that banks in India have been practicing a tight credit rationing process, while selecting their borrowers.
Acharya (2006) argued that the rural credit system assumes importance because most Indian rural families have inadequate savings to finance farming and other economic activities. The need for agricultural credit arises because modern farm technology is costly, and the personal resources of the farmers are inadequate. A farmer’s inability or least limited ability to save does not allow the farmer to finance the pursuits and raise better production from the farms.
Kumbirai and Webb (2010) investigated the performance of South Africa’s commercial banking sector for the period 2005-09. Financial ratios were employed to examine the profitability, liquidity and credit quality performance of five South African based commercial banks. The study concluded that overall bank performance increased considerably in the first two years and a significant change in trend was noticed at the onset of the global financial crisis in 2007, reaching its peak during 2008-09.
Statement of The Problem
Financial performance of a business concern being one of the major characteristics, defines competitiveness, potentials of the business and economic interests of the management. Therefore, financial performance analysis and identification of weaknesses and strengths using financial performance indicators has its contribution to the management and shareholders. In a competitive financial market, bank performance provides a signal to depositors and investors whether to withdraw funds from or invest in the bank. Similarly, it flashes direction to bank management whether to improve its deposit service or loan service or both. Regulators are also interested to know the financial health of banks for regulation purposes. Furthermore, the rationale of financial analysis is to diagnose the information contained in a financial statement so as to judge the future earning, ability to pay interest, debt maturities, profitability, customer services and dividend policy. It is essential to examine the financial efficiency, operational activities and other relevant financial aspects of Maharashtra Gramin Bank for its smooth running and to improve the service quality to make it more favourable.
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Research Gap
Although some studies have been conducted on financial performance analysis of banks' performance comparison between government and private banks and other financial institutions but analysis in the case of Maharashtra Gramin Bank still remains unexplored. Therefore, the main purpose of this study is to evaluate the financial performance of Maharashtra Gramin Bank credit deposit ratio, the priority sector and non- priority sector advances for the period 2011 - 15, in order to improve its banking business.
Scope of The Study
This study is undertaken to measure the financial performance of Maharashtra Gramin Bank. The study will provide details about the credit deposit ratio, the priority sector and non- priority sector advances of Maharashtra Gramin Bank. It is hoped that the result of this study will propose measures for the better performance of this Bank in order to achieve the financial goals along with customer satisfaction.
Objectives of The Study
- To examine the credit deposit ratio of Maharashtra Gramin Bank. - To study the priority sector and non- priority sector advances of Maharashtra Gramin Bank. - To offer findings and suggestions to enhance the financial performance of Maharashtra Gramin Bank.
Significance of The Study
The main purpose of this study is to examine the financial performance of Maharashtra Gramin Bank for investment and finance and to improve the bank’s operations and technology. The study has been focused on the credit deposit ratio, the priority sector and non- priority sector advances of Maharashtra Gramin Bank (MGB). This will help to improve the performance of MGB.
Nature of The Study And Data
Nature of the Study : The present research is a case study on credit deposit ratio and the priority sector and non- priority sector advances of. MGB. Nature of Data : The present study is based on secondary data collected from various reports published by NABARD, RBI and Annual Report of MGB. Other related information is collected from journals, conference proceedings and e-journals. The two key performing indicators that have been studied, namely, credit deposit ratio and priority sector and non- priority sector advances of MGB are for the period from 2011 to 2015.
Sources of Data and Variables for The Study
Sources of Data: The data used for the present study has been taken from published annual reports of Maharashtra Gramin Bank. Other relevant data sources are journals, newspapers, magazines and internet sources.
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Tenure of the Study: The present study is conducted for the period of five years ranging from 2010-11 to 2014- 15. Variables Used for the Study: The variables used for the study are credit deposit ratio, total deposits and total advances. Tools Used for the Study: Ratios and descriptive statistics.
Limitations of The Study
Some of the Limitations of the study are mentioned below so that findings of the study can be understood in a proper perspective. The limitations of the study are as follows: • The present study is limited to only one branch of the Gramin Bank and hence, the results cannot be not applied to the entire Gramin Bank. • This study is limited to only five-year time period (2010-11 to 2014- 15). • The study is based only on secondary data which has been collected from published annual reports of banks and various relevant internet sources.
Data Analysis and Interpretation
Credit Deposit Ratio of Maharashtra Gramin Bank
The RRBs are formed to mobilize savings and develop the rural economy by providing credit and other facilities for the purpose of the development of the agriculture and allied activities of the targeted poor people. The credit deposit ratio of the bank indicates the creation of credit out of the deposits mobilized by the bank. These are indicated in below table
Table 1. Credit Deposit Ratio of Maharashtra Gramin Bank
Year Deposits (Rs.) Advances (Rs.) CD Ratio (%) 2010-11 274335.86 144541.73 52.67 2011-12 319634.91 182303.77 57.04 2012-13 380759.72 251751.04 66.12 2013-14 409987.40 287496.42 70.12 2014-15 486427.66 349541.25 71.86 Source: Compiled from annual reports of MGB & NABARD
Correlation Between Advances And Deposits
Correlation between advances and deposits = 0.997159
Deposits (Rs.)
2014-15, 2010-11, 486427.66 274335.86 2010-11
2011-12 2011-12, 319634.91 2012-13 2013-14 2014-15 2013-14, 2012-13, 409987.4 380759.72
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Advances (Rs.) 2010-11, 2014-15, 144541.73 349541.25 2010-11 2011-12, 182303.77 2011-12 2012-13
2013-14 2014-15 2012-13, 2013-14, 251751.04 287496.42
CD Ratio (%) 2014-15, 2010-11, 71.86 52.67 2010-11 2011-12
2011-12, 2012-13 57.04 2013-14 2013-14, 70.12 2012-13, 2014-15 66.12
The bank provides advances in two forms, the priority sector and the non- priority sector : Priority sector Advances - Agriculture - Crop loans - Term loans - SHG - Other priority (Non-agri.) - Housing to public - Education - Medium Scale Enterprises Non-Priority Advances - Term loans - Bills purchased / discounted
Data Analysis
The below table emphasises the significant difference between the growth rate of priority sector advances and that of the non-priority sector advances of MGB :
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Table 2: Comparison of Priority Sector and Non- Priority Sector Advances of MGB
Year Priority Sector Non- Priority Sector Advances Advances Rs. Lacks Rs. Lakhs 2010-11 124272.42 20269.31 2011-12 136026386 46276.91 2012-13 156891.96 94859.08 2013-14 211205.27 48291.15 2014-15 245081.78 47459.47 Source: Compiled From Annual Reports of MGB & NABARD
Suggestions and Recommendations
Based on the analysis and interpretation, below are some suggestions that may be offered for the better performance of Maharashtra Gramin Bank :
• The Bank must improve its credit deposit proportion. • The Bank should focus on generating non-interest income. • The Bank should monitor the controlling mechanism on important ratios. • Bank should obey the RBI norms and provide facilities as per the norms. • It should increase the rate of interest on saving bank account. • 24 hours banking should be induced so as to facilitate the customers who may not have free time during the day.
Conclusion
Maharashtra Gramin Bank is a major Gramin bank in India which plays an important role in the development of Indian financial system. The financial performance of the bank is analysed using different parameters. The Maharashtra Gramin Bank of India is in a position to follow the rules of the Government for the social and economic development of the country. The Bank has performed well on the sources of growth rate and financial efficiency during the study period. It plays a vital role in marketing of new type of deposits and advances schemes. However, the Bank, by earning at least a nominal profit, has to contribute to the economy through extension of advances and safeguarding the interest of its investors by providing the expected return on their investment in the bank. From the above analysis it can be concluded that the efforts made by MGB towards deposit mobilization, rural development and credit deployment in weaker sections of the rural areas is satisfactory. The MGB’s high share of serving the priority sector shows that it is fulfilling the objective of providing adequate credit for rural development.
References
• World Bank, World Development Report, Oxford University Press, 1998-99, p. 193. • K. Venkata Reddy, Agriculture and Rural Development-A Gandhian Perspective, Himalaya Publishing House, Mumbai, 2001, p. 1.
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• B.S. Yadav and Archana Singhal, Role of Regional Rural Banks in Rural Development, Shree Publications, New Delhi, 2005, p. 1. • Biswa Swarup Misra (2006), “The performance of Regional Rural Bank (RRBs) in India”, RBI Occasional papers (2006) Vol.27, No.1 and 2, Summer and Monsoon. • Dr. Kewal Kumar 1 and Atul Gambhir 2 (2012), “Financing of agriculture by commercial banks-problems faced by Farmers”, National monthly refereed journal of research in commerce & Management, Vol-1, Issue 5. • Dr. Subbarao(2012) “ Agricultural Credit Accomplishments and challenges”, Indian Bankers,Vol-7,No.8. • Dr. Vandana Tyagi (2012), “India’s Agriculture: Challenges for Growth & Development in present scenario” International Journal of Physical and social sciences, Vol.2, Issue 5. • Dr. Gandhimathi (2012), “Distribution of agricultural credit in the pre and post reform period,” International Journal of Management, IT and Engineering, Vol-2, Issue 9. • G.C. Pande and Priyakumar (2013), “Meeting Future credit needs of Agriculture”, The Indian Banker,Vol.1, No.5. • Gowar Bashir Ahanger, Ashaq Hussain Gaine and Mohd Ummer Jan Padder, (2013), “A study on institutional Credit to agricultural sector in India”, International journal of current Research and Academic review. • Annual Report, Ministry of Agriculture (2012) • Abdulrahman, T.Q. and Mushtaq M.S. (2011). Evaluating the Performance of Islamic Banks By Using Financial Analysis Composite: A Comparative Study of the Iraqi Islamic Bank Performance with the Jordan Islamic Bank for the Period (2000-2008). Journal of Kerkuk University for Administrative and Economic Sciences, 2(1), 152- 171. • Almumani, M.A. (2014). A comparison of financial performance of Saudi banks (2007-2011). Asian Journal of Research in Banking and Finance, 4(2), 200-213. • Alsamaree, A.H. (2013). Financial ratios and the performance of banks. Journal of Research in International Business and Management, 3(1), 17-19. • Amel, D., Barnes, C., Panetta, F. and Salleo, C. (2004). Consolidation and efficiency in the financial sector: a review of the international evidence, Journal of Banking & Finance, 28, 2493-2519. • Azam, M. and Siddiqui, S. (2012). Domestic and foreign banks profitability: Differences and Their Determinants. International Journal of Economics and Financial 2(1), 33-40.
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VENTURING INTO E-BUSINESS Dilip Menon Visiting Faculty RD and SH National College of Arts & Commerce
Abstract
Entrepreneurship is the need of the hour, required not only for the growth of the economy but also to overcome the problem of growing unemployment in the country. This paper delves into the nuances of starting an e-business because today with the era of digitalization and the increasing use of internet, it is being considered as a lucrative business proposition. The primary issue faced by many who desire to start a business is finance. The author in the paper also provides for possible suggestions to attempt to start a business with little funds.
Keywords : E-business, Platform
Introduction
Who does not want to be his/her own boss? Either one builds up own business or one takes over the family business and takes it ahead. Now it is not easy to go out and set up a business as easily as said or as is advised by everyone. The matter of concern here is the limitation of funds and unavailability of resources to a young entrepreneur. Borrowing is an option available but during such times how much can one expect from one’s family and friends, who might not believe in earning through the business, if they invest in it. Coming out of the theoretical world, and into the real world, it really is difficult to actually manufacture one’s own product when one cannot actually invest in a factory and its related expenses. When the product itself cannot be launched, one cannot be thinking of promotional factors. Without the product there is no question of setting a price or deciding on a place. Now either one can start a business by being a retailer or can smartly venture into providing a platform to the manufacturers to sell their products provided the platform has repute and is well known in the market by the target consumers. The so-called platform referred to here can be termed as E- commerce.
Now as mentioned above, it is all about knowing the cost to set up such a platform. It would amount to approximately between 1 - 2 lakh INR which includes everything right from setting up your website to getting the necessary licenses and procedures required for the optimal functioning of one’s business.
Reasons Why The Business Will Reap Benefits
Discussing about a few advantages of setting up your E-business :
A. Growing consumer needs and its fulfilment: India’s e-commerce sector is growing at a very fast rate. There is more of a young demographic profile, resulting in an
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increased internet usage and relatively better economic efficiency. India’s E- commerce revenue is expected to increase from USD 39 billion in 2017 to USD 120 billion in 2020, growing at an annual reported growth of 51 percent.
B. Increasing Investment: The recent rise in digital literacy has led to an increase of investment in e-commerce firms, allowing the market for new entrants in setting up their online ventures, with new innovative patterns.
C. Attractive Opportunities: Favourable FDI policies has allowed more young entrepreneurs to come ahead with their innovative and creative ideas. Initiatives taken up by the Government like Start-up India and Digital India have proved beneficial and also a driver. As well as rising internet use which is a result of market players like Reliance Jio have made available internet for the masses.
DOs and DON’Ts of E- business
To survive the stiff cut-throat competition in the industry, online e-commerce business start- ups must surely consider the DOs and DON’Ts of Digital Marketing for E-commerce.
An entrepreneur’s goal should always be to aid one’s e-commerce business in order to make a mark and stay in the industry. Understanding of not only the market but also the needs of the consumers is a must.
Avoid the Following Mistakes in an E-Business:
• Do not set up the E-commerce business if not sure about the products that one wants to sell or provide the market with. • Do not build a website which cannot be projected attractively through a strong digital marketing plan. • Never annoy through spamming customers with multiple pop-ups. • Don’t decide the marketing strategy based on what is felt or perceived. Make decisions always based on factual market information.
Focus on these Factors to be Successful in an Online Business
• Always use high quality / resolution product images • Email should be to attract the customers with attractive offers. Inform them at the right time. • Showcase precise product information: specifications, features, price, etc. • The offers provided to customers should set one apart from one’s competitors.
How To Register The Firm
The steps that one needs to go through for the registration of the firm are as below :
• As an E-Commerce business there are 5 ways to get one’s business registered as a firm :
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- Proprietorship Firm: It is one of the simplest forms to get yourself registered which also requires tax registration. - Partnership firm registration : A minimum of two persons with unlimited liability. - Private Limited Company: It is the most popular form of business and has a lot potential. - LLP (Limited Liability Partnership): It is a mixture consisting of both Private Limited Company and a Partnership firm. - Sole Proprietary Company: It is very similar to a Private Limited Company and it requires only one person.
Most companies fail to understand the importance to invest in Cyber Security since the very inception of their venture. After being in the business for some time and reaping not only the benefits but also the disadvantages of online business, it eventually makes them decide to invest in cyber security to save oneself from fines or penalties.
It is very important to frame a proper User Agreement which needs to be drafted in such a way that it proves to be useful for both the user and the e-commerce company. It should be able to protect the user rights and restrict the e-commerce portal, as it serves as an intermediary.
After planning well about the business to be setup, and the structure of business; one would like to choose for its e-commerce venture, then next would be to follow the following steps –
• Registration of the Domain Name: To acquire the required security for the domain name under the Intellectual Property Rights (IPR), a unique name must be chosen and if possible, it must be trademark protected separately with a national registry which gives the exclusive right to use that registered name.
• Attain a Privacy Policy: A well drafted privacy policy is very much essential for an e- commerce portal to prevent itself from being sued under Section 43A of the Information Technology Act, 2000 for which the penalty can reach up to 5 crores.
• Draft the Website Terms and Conditions: For a website to function optimally it is very important to draft the terms and conditions agreement which usually covers all the company covenants and user covenants to restrict the liability of e-commerce website in every possible way.
• Make a Vendors Agreement: An agreement for vendor with nicely defined clauses and terms to deal with issues like defect in product, late delivery of the product, lack in quality of the product and many other provisions can be included keeping in mind the business model.
• Payment Gateway and Logistics: One also needs to obtain the Payment gateway and Logistics for e-commerce business. In India there are basically two types of Payment Gateways : a) With no setup fees - Has a higher TDR attached to it (examples are PayUMoney, PayPal etc. b) With setup fees - Comparatively less TDRs and faster processing (examples are Payu, Ccavnue).
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The documents that need to be submitted for obtaining a payment gateway are : i) Bank account (Registered name of the business) ii) PAN Card of the business iii) Certificate of Incorporation iv) Memorandum of Association v) Articles of Association vi) Identity Proof vii) Address Proof viii) Website Terms of Use and ix) Website Privacy Policy
How to Start an Online Retail Business With Less Money
With the onset of the digital era, everything right from shopping to cash payments has changed from hard cash and real time products to an online platform, making it capable of servicing, if not all of them, then at least most of one’s needs, in the same way a retail store would.
In order to keep up with the current trends, many retail stores are looking forward to expanding their business to an online platform. A successful e-commerce business needs to have a proper mix of the best ingredients.
Below are four simplified steps to start an online business from the very beginning even when there is no money:
1. Think of a Business Model and Plan: A business plan is very much essential to set up an e-commerce store. Without proper planning, chances of failure of your business are extremely high and in today’s competitive world, walking out without any preparation is a risk that one should not take knowingly.
2. Choose Appropriate Products to Sell Online: Choice of products to be sold online by one's business plays an important role in determination of the structure, benefits and long-term growth of your online business. Basically, the products can range across different categories. Focus could be on a single product line or else, expansion can be at later stages, depending on the resources available to the entrepreneur.
3. Build an E-commerce Website in less than Five Minutes: There are tools available online which includes KartRocket, that makes it convenient for anyone to set up an eStore in just minutes and once done one can start selling the products online. Today, because of the accessibility to such tools, the process of building up online stores is as simple as creating a Social media account.
4. Upload the Products Online and Start Selling: Once the online store has been created, the product descriptions can be uploaded and selling can commence. For enhanced results, one would require a marketing strategy to stay a step ahead of the competition.
Planning of an e-commerce business is not that difficult, as it is to operate it single handedly. With a wide range of resources and knowledge available in the form of information from various sources at one's disposal, one can take up the process of planning anytime. It is the actual implementation that needs a lot effort.
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If already decided on taking the retail outlet to an online platform, then it is important to decide on a few things in advance, to minimize the risk of losses :
• It is crucial to think in advance as to who would be the target customer and what would be the scale of operations. One could choose to ship internationally, nationally or domestically depending on the resources and scope that one possesses. • Preparation of stocks of goods to be sold online should be known. One should be well prepared with the products that can be sold and shipped as soon as when a customer places an order. • Discuss with the shipping partners and decide on the rates which will be charged and paid for shipping different quantities of the products. This will help in increasing the overall customer experience of shopping at the online outlet. • In order to be successful, it is very crucial that the operations that will be required to handle one's e-commerce business needs to be taken into consideration.
Only if one is prepared with the necessary information and resources in advance, will one be able to keep up with the demands of one's business and customers. There are several examples of various successful e-commerce businesses that are running and servicing their customers every day in the most satisfactory manner possible.
Understanding Different Business Models in India
E-Commerce is one of the most well to do business models that a businessman can opt for. Ever since the time electronic commerce has been introduced, it has been growing at fast rate. The reason being the size of the market grows rapidly in a virtual space. Apart from that the reason for the development of e-commerce is the existence of middle class, who holds a good purchasing power. To add to it, the government policies such as Digital India, Make in India and Start-up India have fuelled the growth of e-commerce business models.
However, this industry has still a long way to go in our country. Therefore, it is essential to know the industry and the diverse models that are out there. Once the models have been well decided and set aside, can one finally make a choice on which one to select and what strategy to begin with and subsequently expand in the market. Whenever spoken about e-commerce, the first thing that pops in one's mind is a business interaction between the customer and supplier on an online platform.
The different types of e-commerce business model are- - Exclusive Stores (Brand) - Service Subscription - Online Deals - Marketplace
Exclusive Stores (Brand)
In this type of model, a brand creates their very own online stores. Here, the catalogue of the products is uploaded on the website. These products are identical to those products which are available on their brick-and-mortar store. The advantage of such a model is that the consumers can directly shop from the website of their trusted brands. The best examples of
Insight Management Review December 2018 ISSN : 2277-5676 Page 60 such a model are HP and Samsung. If one is planning to own an exclusive store, then Shopnix is the best online store builder to start with. Few e-commerce business store ideas one can start straight away are : o How to Start an Apparel Store Online o Start an Online Store and Sell Handbags Online o How to Sell Fast-food Online o Why not Start an Online Coffee Business
Service Subscription
The websites with online subscription model allow the users to choose from available subscriptions. The users can pay for the selected subscriptions online. The consumers can make use of the services continuously through recurring payments. Therefore, in such models, the focal point is the online payment of services. As a result, the accessibility to services has become relatively easy for the consumers. A very good example of such a model is Amazon. It provides subscriptions along with attractive discounts to its customers.
Online Deals
Another popular business model in e-commerce is to provide with the best possible deals to the consumers. In such a model, consumers are provided with the best deals they can get on other websites. A good example would be, couponindia, which gives the users the best possible deals.
Marketplace
The marketplace is the heart of e-commerce. It provides the customers and sellers a platform wherein they can communicate with one another. A few popular models for a marketplace are
- B2B : Business to Business - B2C : Business to Consumer - C2C : Consumer to Consumer - C2B : Consumer to Business - B2A : Business to Administration - C2A : Consumer to Administration
B2B : Business To Business
A business-to-business model involves transactions that happen between businesses. Here, a website sells its goods mostly in bulk to a buyer who sells the products further. The major players involved here are manufacturers, wholesalers, and retailers. The business here takes place between manufacturers and wholesalers or the wholesalers and retailers.
B2C : Business To Consumer
The B2C model is a very common type of e-commerce business model. Here, the businesses and the customers are doing business. The sellers create a virtual store online. This allows the customers to get access to a wide range of products through the virtual stores. The benefit of
Insight Management Review December 2018 ISSN : 2277-5676 Page 61 such a model is that the customers have the required information about the products. Moreover, they are able to purchase the products at a cheaper rate. They also get the advantage of quick delivery. A good example of B2C in India is Flipkart.
C2C : Consumer To Consumer
In a C2C business model, the buyer as well as the seller is a customer. A third party creates provision for the customers by providing with a platform to buy and sell products. Mostly, the customers sell products that is not required any more. They may also sell products that they manufacture or make themselves. The best example of such a business model is Quikr and OLX. Customers make use of these platforms to sell old used goods and much more.
C2C : Consumer To Business
The C2B model could be described as a total reverse of businesses to consumer model. Here, the consumers directly deal or sell to the businesses. A classic example of such a business model is a job portal. The consumers upload their resume on the portal. The employers get the resume on the basis of which they provide job offer to the consumers. A good example here would be Naukri.com.
B2A : Business To Administration
The business to administration is an e-commerce model where the dealings happen between the businesses and the public administration. Such a model also includes employment, legal documentation and so on. The main purpose of B2A business model is to further improve the transparency, efficiency and flexibility.
C2A : Consumer To Administration
C2A also mainly has its focus on efficiency, transparency and flexibility. The only difference is that instead of businesses, consumers here transact with public administration. An example of C2A is e-tax filing. Here, the consumers pay taxes to the administration through an online portal
Conclusion
It is very important to first understand the advantages and disadvantages of e-business, so that not only does one benefit from the better understanding of the benefits but can also stay off from the pitfalls related to the business. Knowing and understanding in-depth the business environment before starting the business is just not enough, as it may only be enough to provide with a temporary boost for short term survival. Constantly updating oneself combined with the knowledge of the market is the key to run a business successfully. One maybe selling a particular patterned shirt online which may initially receive a good response but then the question is how long can one be selling the same stuff? Style, fashion, trends keep changing. It is not just trying to satisfy the customer needs, but the seller needs to figure out a way to fulfil such ever changing requirements at the lowest possible cost.
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References
• https://www.biztechcs.com/blog/dos-donts-setting-online-business/ • https://www.bayshoresolutions.com/ideas/blog/dos-and-donts-for-e-commerce-sites/ • https://fruitbowldigital.com/dos-and-donts-of-e-commerce/ • http://onlineincometeacher.com/business-tips/running-an-online-ecommerce-website/ • https://www.indianweb2.com/2013/07/12/how-to-register-a-companystartup-in-india • https://cleartax.in/s/company-registration • https://smallbiztrends.com/2016/05/start-a-business-with-no-money.html • https://www.kartrocket.com/ • https://emergeapp.net/traditional-businesses/best-b2b-marketplaces-in-india/ • https://www.kartrocket.com/blog/ecommerce-business-models-types-pros-cons/ • https://corporatefinanceinstitute.com/resources/knowledge/other/e-commerce- business-models/
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A STUDY OF HUMAN BEHAVIOUR WITH RESPECT TO SOCIAL PSYCHOLOGY Sana Ansari Research Scholar (M. Phil.) K. P. B. Hinduja College of Commerce
Abstract
Human Behaviour is the range of behaviours practised by humans and which are influenced by culture, attitudes, emotions, values, ethics, authority, rapport, hypnosis, persuasion, coercion and genetics. Social Psychology is concerned with the study of the effect of group membership upon individual behaviour. Every individual behaves different pertaining to the social situation around them. Some are introverts while some are extroverts. The paper studies the relation of human behaviour with social psychology.
Keywords : Human Behaviour, Social Psychology
Human Behaviour
According to Business Dictionary “the capacity of mental, physical, emotional and social activities experienced during the five stages of a human being’s life – parental, infancy, childhood, adolescence, and adulthood. It includes the behaviours as dictated by culture, society, values, morals, ethics, and genetics".
Human behaviour is the response of individuals or groups towards internal and external encouragement. It refers to every physical action and observable emotion related to individuals. Specific traits of one’s personality and temperament may be more consistent, while, other behaviours may differ as one moves from birth to adulthood. Other influences are ethics, social environment, authority, persuasion and coercion.
Some behaviours are common, some unusual, acceptable, and some beyond acceptable limits. Human behaviour in general also includes actions having no meaning, being not directed at other people and can also be considered as basic human actions. The acceptability of behaviour depends upon social norms and is influenced by various social parameters. Human behaviour is covered by many of the social sciences, which include psychology, sociology, economics and anthropology.
Behaviour changes throughout an individual’s life, as one moves through different stages of life like adolescence, parenthood and retirement. Human behaviour is shaped by psychological attributes like extrovert and introvert personalities. Personality traits are unique in its’ own way from person to person. Social norm also influences behavioural characteristics. Due to traditional and conservative nature of human society in general, humans are pressured and forced to follow certain rules and to display certain behaviour in
Insight Management Review December 2018 ISSN : 2277-5676 Page 64 society, for the urge of being accepted by other people. Different behaviours are considered to be either acceptable or unacceptable in societies and cultures.
Some factors like genetics, social norms, creativity, religion and spirituality, attitude, and weather & climate impact directly the behavioural traits of an individual’s life. Some behaviour that seems “psychological” is the result of activity of the brain or due to hormonal function. The human brain is astonishing in its function to what it can do. It allows a combination of functioning processes from “lower” brain and the “higher’’ brain. The brain plays a vital role in everything we do.
Social Psychology
Social Psychology is concerned with the study of the effect of group membership upon individual behaviour. It studies how an individual behaves in a group. How he / she influences the group and how the group in turn influences him / her.
According to Baron and Byrne (2003) “Social Psychology is the scientific field that seeks to comprehend (understand) the nature and causes of individual behaviour and thought in social situations. Social Psychology concentrates on individual behaviour. It seeks to understand the causes of social behaviour and thought in social situations. It is the branch of Psychology that deals with social interactions, including their origins and their effects on the individual. The focus is on the task of understanding how and why individuals behave, think, and feel as they do in social situations – ones involving the actual presence of other people, or their symbolic presence.
Social psychology can also be defined as the scientific field that seeks to understand the nature and causes of individual behaviour, feelings, and thought in social situations. As stated above, following are few identified elements of Social Psychology :
− A commitment to gather and evaluate information about the world − A commitment to obtain and evaluate information in a bias free manner − A commitment to accept findings as accurate to been verified again − A commitment to changing one’s views which are strong and exist with evidence in accuracy of it.
According to psychologist Gordon Allport, Social Psychology is a discipline that uses scientific methods “to understand and explain how the thoughts, feelings, and behaviour of individuals are influenced by the actual, imagined or implied presence of other human beings”.
Essentially, social psychology is all about understanding how each person’s individual behaviour is influenced by the social environment in which that behaviour takes place. Few attributes of Social Psychology that regulates human behaviour in different directions are :
− Prejudice & Discrimination − Social Cognition − Attitudes
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− Persuasion − Non verbal communication − Prosocial behaviour − Leadership
Relation of Human Behaviour Towards Social Psychology
Every individual behaves differently, with regards to the social situation around them. Here extroverts and introverts are important keys of the statement. An extrovert would participate and respond in a social situation more actively, whereas, an introvert would choose to be silent or more non-participative in nature.
Social Psychology. a deep study of human behaviour, diagrammatically represented below :
Individual Behaviour
Social Psychology
Group Behaviour
As clearly seen, an individual behaviour and group behaviour together is studied through social psychology. Its attributes are perception, cognition, attitudes, prejudice, intrapersonal attraction, aggression etc. Individual behaviour tends to change when observed or surrounded by a group of individuals. As said by the author Robert Zajone in his theory of social facilitation, - Individual behaviour performing in group can positively upgrade ones’ potential or degrade it, according to the responses of other team members. Rightly depicted in the diagram below, which conveys a message given in the Drive Reduction Theory of Social Facilitation
Individual •Response •Response Appreciated •incorrect not •correct accepted by group by group members members
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In the above representation the author tries to explain, how behavioural changes take place within the group as a response may be accepted or may not be accepted by the other team members. This leads to the conclusion that individual behaviour changes according to the responses and acceptances and the results of performance may be enhanced or impaired.
Conclusion
It is an attempt to identify some social aspects of psychology which caters to change in human behaviour. Through the above study, one can conclude that, one’s behaviour tends to change when surrounded by a group. An individual behaves differently when alone and when in a group, although the situation may have been the same.
Socially all are connected to each other but somewhere in some or the other way people are apart from each other in terms of behavioural traits. The mind, heart and body are connected with the soul which is unique in its own way within every human being. But as it is said, one changes its original characteristics to fit in the society for acceptance and to be seen to be correct. Social influences play an important part in human behaviour for a particular situation. Humans are more often influenced with the peer pressure and forcible requirement of this rigid society which leads to subconscious ignorance to its own primary personality and character values.
Social Psychology helps in understanding human behaviour in a social affair and enlightens on the drawbacks of influential factors as to how to overcome it and resolve conflicts in interpersonal engagements. It evaluates and comments on the changing behaviours of individual with different situations and concludes on some performing dominants for leading a successful and more importantly contended and expressive life. Hence Social Psychology of human behaviour can be inculcated into training processes of Human Resource Management procedures.
References
• https://www.definitions,net>definition • www.ukessays.com>essays.psychology by B.F. skinner – psychologist • www.businessdictionary.com>socialbehaviour • www.ncbi.nlm.nih.gov • Robert B., Nyla B., ; 'Social Psychology – The Science of Social Side of Life' ; Thirteenth Edition, 2015, Pearson Publications • Judith M., Romano T., 'Psychology And You', Third Edition, 2013, West Publishing Company • Vipan K., 'Textbook of Social Psychology' ; 2008; Global Media • Article by Kendra Cherry, 'An Overview of Social Psychology' ; Medically Reviewed by a Board Certificate Physician
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A STUDY ON RURAL LIVELIHOODS AND OCCUPATION IN SAPHALE Megha Nair Pillai Assistant Professor Patuck-Gala College of Commerce & Management
Abstract
Agriculture remains the dominant activity and source of livelihood in rural life. Due to a decline in the share of agricultural income, people are now moving towards other means of livelihood for their sustenance. Each household is engaged in a minimum of two occupations to support their finances. It is no more the case, where only the man of the house toils towards earning income for his family. One can see a steady increase in the percentage of women undertaking various activities to generate the necessary income. The young bloods of the house travel to nearby cities to find a sustainable income by opting for white collar, blue collar or pink collar jobs. The paper aims to study the diverse occupations chosen by the villagers to help them accumulate better financial support. The awareness and implementation of National Rural Livelihoods Mission (NRLM) program in the village is also an area that has been focused upon in the paper. In the paper an attempt has been made to understand the problems faced by the rural households when they depend only on agricultural practices and how moonlighting helps them.
Keywords: Rural Livelihood, Agriculture, NRLM
Introduction
India is predominantly an agrarian economy. According to the Economic Survey Report of 2017 – 18, agriculture contributes around 17-18 percent to the country’s GDP. Around 42.74 percent of the population is involved in agricultural activities. Unfortunately, India has been witnessing a steady decline in its agrarian work force and has estimated that it would drop to 25.7 percent by 2050 from 58.2 percent in 2001.
Most of the agricultural work force resides in villages and has been farming for over generations. The government has also taken multiple initiatives to help people earning their means through agriculture and handicrafts. The National Policy for farmers released in September 2007 has introduced many schemes to benefit the farmers directly and indirectly. Some of them are : Rashtriya Krishi Vikas Yojana, Integrated Nutrient Management in rural areas, Seed Village Scheme, National Watershed Development Project for Rain fed Areas (NWDPRA), promoting use of informatics in agricultural areas, promotion and strengthening of agricultural mechanization through training and testing and demonstration in rural areas.
Area of Study
Navajhe Village is located in Saphale, Palghar Taluka, and District Thane. It is 78 kms away from Mumbai and is surrounded by lush green forests. The primary language is Marathi. The
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Research Design
Objectives of the Study
− To study the necessity of maintaining various occupations − To study the diverse livelihoods adopted for sustenance
Methodology
Quantitative and descriptive research has been undertaken to obtain results pertaining to the objectives.
Sources of Data
The study comprises a mix of primary and secondary data. Primary data is collected through field survey and secondary data is collected through reference books, journals and internet.
Instrument of Data Collection
A well – structured questionnaire was used to collect data from the inhabitants of the village. The data has also been collected through dialogue and discussion.
Sampling
A total of 49 families participated in the survey.
Scope of the Study
This paper helps in finding out the need for agrarian families to opt for other occupations for daily sustenance. It also highlights the level of information they possess with respect to schemes introduced by the Government to enhance rural livelihoods.
Limitations
• The respondent families were initially reluctant to answer but, later opened up when informed that the data would be kept completely confidential. • Findings of the survey are based on the assumption that the respondents have given correct information. • The findings cannot be considered as universal, since it is limited to Navajhe village.
Data Analysis
The study was undertaken to identify the diverse occupations taken up by agrarian families in Navajhe Village. The data was taken using questionnaire and through dialogue and discussions. The analysis has been done without the use of any analytical tools.
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Table 1: Respondent Profile
No. of People Dependents Educated Uneducated Employed in the Family Total 278 175 192 126 103 Average 6 4 4 2 2 Percentage 62.9 69.04 45.3 37.05
The interpretation is based on the answers provided in the questionnaire. As mentioned in the table above each family on an average had 6 people out of which 2 were working and 4 were dependent on the working population. Literacy rate was fairly good with 4 people educated and 2 uneducated individuals. Unfortunately, the percentage of dependent individuals as compared to working individual was found too high. 37.05 percent of the workforce has to bear the brunt of feeding 62.9 percent of the dependents in the family. The dependents are mainly senior citizens and school children.
Table 2: Working Population (103 out of 278)
Male Female Children Total 62 32 09 Percent Contribution 60.3 31 8.7
Out of the total working population, the head of the family being predominantly males, they contribute more towards the family income than women and children. But it is imperative to note that even children contribute to their family income by working in farms when the need arises.
Table 3: Primary Occupation (Families)
Agriculture Handicraft Service Bank Teaching SHG Business Other Total 34 01 12 01 01 24 Nil 02 Percent 69.38 2.04 24.48 2.04 2.04 48.9 0.00 4.08 Contribution
As observed in the table, the primary occupation for most families is agriculture with service sector following behind. These two occupations are mainly undertaken by the male members in the family. The women are part of self-help groups i.e. Bachat Ghat.
Table 4: Secondary Occupation
Agriculture Handicraft Service Bank Teaching SHG Business Other Total 15 01 02 Nil Nil 11 02 01 Percent 30.61 2.04 4.08 0.00 0.00 22.44 4.08 2.04 Contribution
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While for most male members, agriculture is the primary occupation, a lot of women generate income by being actively involved in Self Help Groups. They work in farms and also join as members in SHGs to earn their livelihoods
Analysis Based on Dialogue
A deep understanding of their issues and focus on livelihoods was derived after discussions and careful dialogue. It was noted that being a male dominated society many women in the family were not allowed to work anywhere apart from their farms. They were not allowed to venture out of the village to work in companies or banks. Therefore, it was observed that many middle-aged women worked on their farms or joined Bachat Ghats to earn a suitable sustenance.
Education is given importance and all children are sent to school, but they are made to work in farms when the need arises especially during the peak crop season. The major crops grown are rice and wheat with a few families growing vegetable, tur dal and til. The male members of the family are the ones who toil most on farms. Male members also work in shops, companies, banks, as drivers and teachers. The people who do service are the ones who grow vegetables etc., as the secondary source of income.
Some families also have businesses such as being wedding planners, DJ, shops given on rent, online retailing of handicrafts, etc.
It is necessary to note here that the average working members as calculated are two in every household, but they work at least 3 jobs to be financially sound.
Another question raised was about the awareness of government schemes such as Aajeevika – National Rural Livelihoods Mission to help people living in rural villages earn a suitable income by helping them develop skills through training in various courses. The astounding result was that none had heard about it. Nobody, including the educated individuals were aware of such programs and schemes existing in the market to help them live better lives. The villagers were keen on knowing the schemes available and admittance process for the same. Upon enquiring as to what help was required to earn more income, they gave various suggestions such as better education facilities, work for aged men and women, opening a shop, learn tailoring or handicrafts, working part time while studying etc. The unfortunate situation is that even though they want to open shops or start a business, they have no money to do so and look for help from the government for the purpose.
Findings
• In an average family of 6, the burden to feed them all falls on the two earning individuals. • Each family has to work a minimum of three jobs to earn their sustainable income. • The members choose to work wherever they can in order to feed themselves and their family opting for part time jobs and also as daily wage labourers. • The maximum problems they face are during months when there is no rain as they are totally dependent on rain water to continue their farming activities.
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• They look for alternate work options during the non-farming season, taking up anything they get in hand. • Even though there are educated women in the family, they are unable to work anywhere out of the vicinity or find a good job due to social pressure, lack of confidence and communication issues. • The respondents showed total lack of awareness about government schemes such as Aajeevika which could help them improve their financial stability.
Suggestions
• An awareness session about the various governmental schemes can be conducted for the villagers. • Better farming practices such as water harvesting, crop rotation etc., can be practiced by the farmers. • Women Self Help Groups can be given training in various courses such as handicrafts, tailoring, making wicker baskets, Warli painting items etc. • Enabling them to participate in exhibitions and fairs where they can sell their products. • Online selling of goods and services can also be taught as a means of livelihood.
Conclusion
It was quite evident from the dialogues held with the villagers and the quantitative data procured that due to lack of knowledge with respect to better farming practices or government schemes each family has had to work various jobs at once to earn a suitable income. Also, the fact, that once the peak crop season is over, they do not know of jobs available and that adds to their woes. Women and men, both work at least two jobs to earn sufficiently for the family. Education should act as a promoter for them to work hard and think creatively, but it is observed that due to social pressures many women are not allowed to work in companies despite being educated.
The people undertake a variety of jobs such as farming, working in shops, selling their agricultural produce, drivers, bank clerks, daily wage labourers, lift men, ride auto rickshaws and even do house work as it enables them to sustain themselves for their basic needs, which is sometimes also found to be not enough. Moonlighting has become more of a necessity than a habit or passion to support themselves and their families.
Diversification in occupations is seen in every household with a need for a much broader mindset with respect to social issues, awareness and other factors.
References
• Dev S. Mahendra (2015). India Development Report, Oxford University Press • Shishodia Anil and Singh Katar (2016). Rural Development – Principles, Policies and Management, 4th Edition, SAGE Publications • G. Satyanarayana and Madhusudana H.S (2012). Rural Development and Poverty Alleviation in India – Policies and Programmes, New Century Publications
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• https://www.financialexpress.com/budget/india-economic-survey-2018-for-farmers- agriculture-gdp-msp/1034266/ • https://www.theglobaleconomy.com/rankings/Employment_in_agriculture/ • https://soki.in/navaze-palghar-thane
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BOOK REVIEW
Name of the Book Reviewed : Do It Now Author : Hill Napolean ; WIlliamson Judith Publisher : Jaico Publishing House Reviewer : Dr. Meeta Pathade, In-charge Principal, Patuck - Gala College of Commerce & Management
It is a self - help book by Napoleon Hill and Judith Williamson. Like other self- help books, this book- “Do It Now” cannot be read at one go. It has to be read each chapter at a time, each chapter or perhaps two / three chapters in a week and can also be re-read as many times to our need.
The book tells us to use our time wisely and our skills appropriately. The book has 50 chapters and every chapter indicates different facets for becoming a successful person. Being positive and having positive mindset, has always been reinforced in this book. The book also highlights several traits required to be successful, like hardwork, persistence, overcoming fear, honesty, etc. Napoleon Hill was successful in the profession of career writing, teaching and lecturing about the principles of success.
Judith Williamson is the Director of the Napoleon Hill World Learning Centre, USA and has authored several books in collaboration with Napoleon Hill Foundation. The authors have the view that by reading this book, the person becomes the scriptwriter for his / her life’s story and the creator of his / her own advancement and success. They opine that the readers of this book – “Do It Now” qualify for the treasures in life that the readers deserve.
As a reader of this book - “Do It Now”, one would surely love the contents of the book. Few lines worth a mention are:
Chapter 6 You are where you are and what you are because of your established habits of thought and deed.
Chapter 13 Plan for today, bloom for tomorrow, and decide right now to make a positive statement for improvement, not perfection, in the here and now.
Chapter 29 If you have been mentored by someone, consider yourself lucky because you are in that slim category of people who have attracted someone’s attention.
Chapter 44 By turning negatives into positives, we can turn base metal into gold. This is the real alchemy of success.
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Chapter 50 There operates Law of Compensation, which essentially means that the good that you do, will return to you with interest!
These are some of the lines and there are many more which are worth our attention and time. Therefore, every individual should read this book, just not to be a successful being but to be a successful human being.
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BOOK REVIEW
Name of the Book Reviewed : The Alchemist Author : Paulo Coelho Publisher : Harper Torch Reviewer : Shivangi Sharma, Faculty Member, Patuck - Gala College of Commerce & Management
Paulo Coelho grew up in a middle-class family in Rio de Janeiro, Brazil. His father wanted him to follow in his footsteps and become an engineer but after stating his wish to be a writer, Coelho was put in and out of mental institutions for three years. He became a hippie traveller, joined a cult in Italy for a while and was held and tortured by the Brazilian police after a stint of writing ‘subversive’ lyrics for a rock band.
Coelho is one of the world’s best-selling authors. The Alchemist, which was inspired by a tale in The Thousand and One Nights, has sold 20 million copies. Other books include The Valkyries, An Encounter with Angels, By the River Piedra I Sat Down and Wept, and Veronica Decides to Die. He lives with his wife Christina, a painter, in Rio de Janeiro.
The Alchemist is the story of Santiago, a shepherd boy who dreams of travelling the world and discovering treasures, and is courageous enough to walk in the direction of his desires. In order to realize the best that his destiny has to offer, he travels from his home in Spain, through the markets of Tangiers, and into the great Egyptian desert. He gets duped, experiences love, loses and makes money, learns a different language, meets different people, finds himself in pleasant and not-so- pleasant situations. His journey is full of adventure and lessons, while he also finds the privilege of meeting a king, a desert woman and an alchemist, each adding to his life, new turns and perceptions.
Originally written in Portuguese, the book has won the Guinness World Record for being the most translated book by a living author. The style of the book is third person narrative. The language is simple, yet effective. Every word lends a meaning to the story.
The Alchemist does not get away from the fact that dreams have a price but, as Coelho has said in interviews, not living your dreams also has a price. It is better to have problems that make sense because they are part of what you are trying to achieve. This belief is a marvelous one, a support for anyone embarking on an important project. But is it a hope based on nothing? If you think about the energy you put into something once you are committed to it, probably not. The ‘universe conspiring’ to give you what you want is, more precisely, a reflection of your determination to make something happen.
Much of self-help literature is about pursuing our destiny, but dreams do not always pull us along; they speak persistently but quietly, and it does not take much effort to smother the inner voices. Who would be willing to risk comfort, routine, security and existing relationships to follow something, that to others looks like a mirage? It takes courage, and dog-eared, stained copies of Coelho’s classic have become the constant companion of people who need to make fearless decisions daily to keep true to a larger vision
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CRASH OF LUXURY AIRLINES Renita Vazirani Faculty Member Patuck - Gala College of Commerce & Management
In the board room of a reputed airlines, one winter morning in the month of October of 2012, the atmosphere was tense as the airlines received an intimation from the DGCA, of the cancellation of its license to fly.
How did this befall the airlines?
Issues Encountered By Airlines
The airline business is highly competitive and at the same time involves huge cost and a high amount of risk. Some of the common problems faced by airlines in India are as below :
• Fuel cost Fuels used by airlines is a specialized type of petroleum based fuel. It is generally of a higher quality than fuels used in road transport. It contains additives to reduce the risk of icing in very low temperatures or explosion in high temperatures. This fuel has always been one of the airlines' greatest costs, which has so often devoured into the profitability. (Although in January 2019, there has been a record reduction in the price of the fuel, making it cost more or less the same as petrol and diesel, however, how long this price level will sustain, is yet to be seen).
• Monopolistic Competition market There are too many players providing the similar service, one following the other quickly, in case of innovations. This creates a very scattered market, leading to each player being able to grab only a small market share. Also. because of differentiated services, the selling costs are high.
• Increased FDI in the sector Competition gets stronger and tougher with bigger and more capital rich companies entering in to the market. Keeping up to the product and service innovation, the routes, the customer privileges - all these burden the domestic players.
• Multi product pricing In September 2003, India's first low cost airlines was launched and operationalized. Its success in a short period of time, became a threat to the other already existing major players, who were in turn compelled to introduce and run, simultaneously, the low cost carrier product segment. Hence getting an appropriate pricing level for both the segments of the same airline often creates a huge problem.
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• High taxes In case of domestic flights, it is mandatory for the airlines to pay many additional fees and taxes, as : passenger service fees, user development fee, development fee, fuel surcharge and carrier imposed miscellaneous fee. In addition to this, in case of an international flight, taxes as applicable at the destination point is also applicable. Hence, as such payments are of big amounts, it restricts the airlines capacity to give discounts to its customers, which would otherwise help the airline increase its customer base by attracting more and more passengers.
• Foreign exchange Fluctuation in the country's exchange rate does have an impact on the cost incurred by the company.
Luxury Airlines
The airlines was established in 2003 and began operations in 2005, with four new airbus. The airlines began international operations in 2008. Generally, license to fly international is given to airlines which would have completed 5 years and which would have at least 20 aircrafts. But, this was possible for the airlines because of its acquisition of another airline which was not doing too well then and had international routes.
Very early in its operations, the airlines was placed in the second position in the market, in terms of the number of passengers flying by it. The airlines was headed by a very flamboyant personality and true to his spirit, he ran the airlines as a premium airlines which came to be known for its luxury and comfort. During its good days, in case of any lapses in services, the passengers were compensated with luxurious treatments as meals, drinks or stays in premium hotels. Four years from its inception, in June 2007, the airlines decided to increase its number of aircrafts and signed a MoU with Airbus. The airlines had an eye for expansion along with providing delightful experience to the passengers.
The Cascading Effect Leading To The Crash of The Airlines
The airline businesses are continually haunted by high overhead costs, heavy government fees and taxes, fluctuating foreign currency value, high selling cost and low profitability. Luxury airline was no exception to this business environment. The main reasons for the crash of the airlines are as below :
• Debts were burgeoning o purchase of around 50 aircrafts for USD 7.3 billion (about INR 29,000 crore) in January 2007 o acquisition of the low cost airline for INR 1000 crore in 2007, which was in complete loss and not evaluated properly before the takeover. o the airline owed around INR 290 crores to the Airport Authority of India. Abovementioned are some of the major debts of the airlines besides the many others. These debts, over the years, mounted to a soaring INR 7000 crores, which was collectively borrowed from a consortium of 17 banks.
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• The airline as it began operations did very well, but due to its high operating costs, the airline barely reported profits. These escalated over the years in to mounting losses.
• Takeover of the low cost airline and then a few years thence, announcing the decision to exit low cost carrier segment and only run the full fledged airline with the perception that there are a good number of passengers who wish to fly the airlines, did not prove a wise decision.
• The high fuel cost were always a burden
• The airline did not have a CEO until 6 - 7 years from the beginning of its operation. Till then most decisions were taken by the founder. A professional CEO would have made a difference.
• The airline suffered heavy damage of its brand name with cancellation of flights, service lapses, non-payment of salary to employees and non-payment of government and airport dues.
The founder did try to revive the airlines by trying to sell the airline's stakes to a foreign bidder but, however, it failed and all its assets were appropriated and accounts were frozen.
References
• https://en.m.wikipedia.org/wiki/History_of_Kingfisher_Airlines • https://en.wikipedia.org/wiki/Kingfisher_Airlines • https://indianexpress.com/article/india/india-news-india/sunday-story-once-upon-a- time-there-was-a-king-vijay-mallya/ • https://www.quora.com/What-went-wrong-with-Kingfisher-Airlines-After-where-it- is-now-1-7-billion-loans-what-are-they-waiting-for-By-being-stale-arent-they-losing- their-market-value • http://www.sify.com/finance/the-real-reasons-behind-kingfisher-s-fall-imagegallery- airlines-llsne4cgiefsi.html • https://www.google.co.in/amp/s/amp.businessinsider.com/airlines-biggest-business- problems-2018-4 • https://en.m.wikipedia.org/wiki/Aviation_fuel • https://www.google.co.in/amp/s/www.mapsofindia.com/. lmy-india/business/in- indias-burgeoning-aviation-sector-safety-is-the-key-word/amp • http://www.airindia.in/explanation-of-taxes-fees-charges.htm • https://www.google.co.in/amp/s/indianexpress.com/article/india/india-news- india/sunday-story-once-upon-a-time-there-was-a-king-vijay-mallya/lite/ • https://www.ndtv.com/business/kingfisher-owes-about-rs-295-crore-to-airport- authority-of-india-1287630 • https://m.economictimes.com/industry/transportation/airlines-/-aviation/kingfisher- orders-50-airbus-planes-for-7-bn/articleshow/2137744.cms • https://www.google.co.in/amp/s/www.firstpost.com/business/corporate-business/the- inside-story-of-vijay-mallyas-tumble-he-bought-deccan-with-eyes-closed- 1967877.html/amp
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• https://www.news18.com/news/business/kingfisher-vo-267659.html
Disclaimer : The case study will be (and is to be) used solely for academic purpose and not for any commercial gain.
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